Kec International Ltd. · NSE:KEC
Kec International — RPG Annual Investor Conference 2024
30 slides from Kec International's conference presentation, Jun 6, 2024
Slide 1: Exchange cover letter: Investor presentation
KEC INTERNATIONAL LTD. RPG House 463, Dr. Annie Besant Road Worli, Mumbai 400030, India +91 22 66670200 kecindia@kecrpg.com www.kecrpg.com June 06, 2024 National Stock Exchange of India Limited BSE Limited Exchange Plaza Phiroze Jeejeebhoy Towers Bandra Kurla Complex Dalal Street, Fort Bandra (East)
Slide 2: KEC International Limited - RPG Annual Investor Conference
hello happiness KEC International Limited RPG Annual Investor Conference 7 June 2024
Slide 3: Disclaimer
Disclaimer This presentation may include statements which may constitute forward-looking statements. All statements that address expectations or projections about the future, including, but not limited to, statements about the strategy for growth, business development, market position, expenditures,
Slide 4: KEC – Building Icons of Happiness
KEC – Building Icons of Happiness $2.4 FOOTPRINT IN 7+ 110+ 300+ 83 7500+ 35+ BILLION ONGOING HAPPINESS EMPLOYEES DECADES COUNTRIES PROJECTS GLOBAL EPC SCORE NATIONALITIES MAJOR Transmission Civil Urban Infra Railways Oil & Gas Renewables Cables & Distribution
Slide 5: Key Achievements
1 Key Achievements Duhai Depot, Delhi-Meerut RRTS Project (RAPIDX) 4
Slide 6: Resurgence in India T&D
Resurgence in India T&D Order Book (₹ Crore) >3 times 10,000 4,700 3,000 FY22 FY23 FY24 • Government thrust on renewables and increase in power demand • Exponential growth in order book of more than three times in last two years • Substantial tender pipeline of over Rs. 25,000 Crores and is expected
Slide 7: SAE Towers - Successful Turnaround
SAE Towers - Successful Turnaround Brazil - Tower/ Hardware Manufacturing Mexico - Tower/ Poles Manufacturing • Delivered positive PBT across all the four quarters • Substantial reduction in Interest cost – Average cost of borrowing reduced to 11% p.a. from 20% p.a. last year • Largest auction in Br
Slide 8: Increase in Business from Products (Non-EPC)
Increase in Business from Products (Non-EPC) TOWERS HARDWARE POLES CABLES • Significant increase in the share of products (Towers, Hardware, Poles, Cables) from third parties - Share in order intake increased to 21%, up from 15% last year • Secured significant orders of over Rs. 2,000 crore across k
Slide 9: Establishing Manufacturing facility for HTLS Conductors
Establishing Manufacturing facility for HTLS Conductors ✓ Establishing fully integrated manufacturing line for Aluminium conductors - already secured orders for supply of power transmission conductors (ACSR and AL-59) from government utility/ private TBCB developer ✓ Expected to be commissioned in Q
Slide 10: Expanded Product Portfolio - Backward Integration
Expanded Product Portfolio - Backward Integration Cuplock & Fencing/ Cable Telecom Formwork Scaffolding Protective Screen Tray Towers • Developed various new products in our factories such as Formwork, Cuplock & Scaffolding, Fencing & Protective screen, Cable Trays and Telecom towers; Supplying to C
Slide 11: International Expansion – Railways and Oil & Gas
International Expansion – Railways and Oil & Gas Signaling & Telecommunication Project at Booster Pump Installation at Mathura-Dholpur, Uttar Pradesh Vadinar Pipeline Project, Gujarat • Railways and Oil & Gas Pipeline businesses have commenced execution on their International orders, reflecting our
Slide 12: Breakthrough in New Segments
Breakthrough in New Segments Hospitals Commercial Buildings FMCG Logistics Park HVDC Converter Stations Automatic Block Signaling
Slide 13: Substantial Improvement in ESG Ratings
Substantial Improvement in ESG Ratings Environment Social Governance • Increased Solar footprint across • Increase in Happiness Quotient to • Diversified and independent board factories to ~25% 83% from 81% of 12 members • Achieved benchmark initiatives • Launched revamped Rewards & • Enhanced Gover
Slide 14: Financial Performance
2 Financial Performance Substation project at Saudi Arabia 13
Slide 15: Performance Snapshot FY24
Performance Snapshot FY24 01 02 03 03 04 Revenue Profitability Order Intake Leverage ● Highest ever ● Substantial ● Secured orders of ● Significant Revenues of Rs. growth of 46% Rs 18,102 Cr. and improvements in 19,114 Cr, robust YoY with EBITDA L1 as on date of our working capital growth of 15% mar
Slide 16: Improving Trajectory of Margins
Improving Trajectory of Margins EBITDA EBITDA % 6.3% 6.1% 6.2% 5.8% 5.1% 4.6% 4.4% 388 283 308 244 274 178 200 Q2 FY23 Q3 FY23 Q4 FY23 Q1 FY24 Q2 FY24 Q3 FY24 Q4 FY24 • EBITDA Margins continue to show an improvement over the last six quarters • EBITDA Margins for Q4 have increased by 120 basis point
Slide 17: Strengthening Balance Sheet
Strengthening Balance Sheet Revenue vs Net Debt Comparison (₹ Crore) Improving Leverage Ratios (Times) 19,914 Net Debt/ Equity Net Debt/ EBITDA 17,282 6.3 13,742 6.0 5.3 4.2 4,765 4,985 5,090 1.3 1.3 1.6 1.2 Mar'22 Mar'23 Mar'24 Mar'22 Mar'23 Sep'23 Mar'24 • In the last two years, Revenue has grown
Slide 18: Diversified and Robust Order Book
Diversified and Robust Order Book Current (₹ crore) T&D – Geographical Split Order Book + L1 T&D ~22,500 Civil ~10,500 Others 9% Africa Railways ~3,400 11% India Oil & Gas Pipelines ~550 45% Americas Renewables ~500 16% Others ~700 Middle East 19% ~38,000 Current Order Book & L1 of ~Rs. 38,000 Cr Or
Slide 19: Business Highlights
3 Business Highlights Industrial project at Chennai, Tamil Nadu 18
Slide 20: Transmission & Distribution – Towering Results
Transmission & Distribution – Towering Results • Achieved a milestone Revenue of Rs. 10,456 Cr, remarkable growth of 21% YoY • Strong order inflows of ~Rs. 11,000 Cr across India, Middle East, Americas, SAARC, Africa, East Asia Pacific and CIS • Record Order Book & L1 of ~Rs. 22,500 Cr to drive sust
Slide 21: Civil – Growth Story Continues
Civil – Growth Story Continues • Delivered an impressive performance for the year with a robust growth of 32% YoY with Revenues of Rs. 4,370 Cr • Secured order inflows of over Rs. 4,000 Cr. spanning diverse sectors such as FMCG, metals & mining, cement, residential & commercial buildings, public spa
Slide 22: Urban Infra – Driving Urban Happiness
Urban Infra – Driving Urban Happiness Cabling & Ancillary works, Delhi Metro, DMRC Project Track works, Mumbai Metro Kolkata Metro ▪ KEC is executing 20+ projects in Urban Infra across Delhi, Chennai, Kochi, Mumbai, Kolkata, Patna, Indore and Bangalore, spanning 55 kms of viaduct, 60 stations, 2 dep
Slide 23: Railways – Muted Performance
Railways – Muted Performance • Achieved Revenue of Rs. 3,115 Cr. for the year, degrowth of 17% • Commenced execution for the maiden International project in Bangladesh • TCAS (Train Collision Avoidance) projects under KAVACH have been commissioned partly • Margins impacted due to delay in execution
Slide 24: Oil & Gas Pipelines – Widening Market
Oil & Gas Pipelines – Widening Market • Revenues of Rs. 626 Cr with a growth of 30% YoY • Forayed into the international market by bagging maiden order in Africa • Widening Portfolio: o Secured two orders in the composite station works o Slurry pipelines for iron ore as well as water pipelines o Bid
Slide 25: Renewables – Building Capabilities
Renewables – Building Capabilities • Executing KEC’s largest solar project of 600 MWp in Karnataka; one of the largest tracker-based project in India • Secured an order for setting up solar projects from a leading auto-ancillary company in India • Bidding for select renewable opportunities in line w
Slide 26: Cables – Record Performance
Cables – Record Performance EV Charging Cable Green Cable PVC facility in Vadodara, Gujarat • Delivered an impressive performance with highest ever Revenues, Order Intake and Profitability • Executed a large transformation program for profitability improvement with a global management consultant • S
Slide 27: Way Forward
4 Way Forward Data Centre Project at Hyderabad, Telangana 26
Slide 28: Primary Growth Drivers
Primary Growth Drivers India T&D Intl. T&D Civil Renewables • Sustained focus of the • GCC capex momentum • Real estate boom: • India's ambition to Govt. on renewable continues especially in Substantial opportunities achieve 500 GW of energy, integration and Saudi Arabia and UAE across residential a
Slide 29: Key Focus Areas
Key Focus Areas Capital Profitability Adjacent Efficiency Improvement Growth Execution Risk Capability Excellence Management Development ✓ Record Order Book and L1 Position of ~Rs. 38,000 Cr (Including ~Rs. 22,500 Cr from T&D) ✓ Tenders under Evaluation & Tenders in Pipeline of over Rs. 130,000 Cr ✓
Slide 30: hello happiness
eid hello happiness RPG | KEC
KEC International — RPG Annual Investor Conference 2024 on 6ix