Garden Reach Shipbuilders & Engineers Ltd. · NSE:GRSE
Garden Reach Shipbuilders & Engineers — FY2019 Earnings Presentation
46 slides from Garden Reach Shipbuilders & Engineers's earnings presentation, Jun 6, 2019
Slide 1: Garden Reach Shipbuilders & Engineers Limited
J/Jic# flrr fi,qRJcsl-f l!Os $.6ilfct212-f &t/Jtes Garden Reach Shipbuilders & Engineers Limited ( m«r 8.!cbl.! cbT JQw<A, �cm a-hllcill) (A GOVERNMENT OF INDIA UNDERTAKING, MINISTRY OF DEFENCE) CIN NO.: L35111WB1934GOI007891 SECY/GRSE/BD-69/AM/02/19-20 06 June 2019 To, National Stock Exchange of In
Slide 2: Presentation to Analysts
PRESENTATION TO ANALYSTS 06 JUN 2019 1
Slide 3: Sequence of Presentation
SEQUENCE OF PRESENTATION • GRSE AT A GLANCE • BUSINESS PROFILE • MAJOR HIGHLIGHTS OF 2018-19 • PRODUCTION HIGHLIGHTS OF 2018-19 • NEW PRODUCT DEVELOPMENT IN BAILEY BRIDGE SEGMENT • INFRASTRUCTURE DEVELOPMENT • FINANCIAL PERFORMANCE AND HIGHLIGHTS 2
Slide 4: GRSE at a Glance
GRSE AT A GLANCE 3
Slide 5: GRSE at a Glance
GRSE AT A GLANCE PREMIER WARSHIP BUILDING COMPANY OF THE COUNTRY 1960 - TAKEN OVER BY GOVERNMENT OF INDIA 1961 - BUILT FIRST INDIGENOUS WARSHIP - INS AJAY 2006 – AWARDED MINIRATNA CATEGORY 1 STATUS 1ST DEFENCE SHIPYARD TO DELIVER 100 WARSHIPS FIRST SHIPYARD IN COUNTRY TO EXPORT WARSHIP
Slide 6: Business Profile
BUSINESS PROFILE 5
Slide 7: Garden Reach Shipbuilders & Engineers Limited – At a Glance
GARDEN REACH SHIPBUILDERS & ENGINEERS LIMITED – AT A GLANCE MAJOR SHIPBUILDING PRODUCTS (# DELIVERED) P-16A Frigate (3) ASW Corvette (3) Fleet Replenishment Tanker (1) Offshore Patrol Vessel (1) Missile Corvette (6) Landing Ship Tank (5) Inshore Patrol Vessels (8) Water Jet Fast Attack Craft (14) La
Slide 8: Engineering Products – Bailey Bridge
ENGINEERING PRODUCTS – BAILEY BRIDGE MORE THAN 5100 BRIDGES SUPPLIED TO INDIAN ARMY, BRO & STATE GOVTS. SUSPENSION BRIDGE MAJERHAT BRIDGE KOLKATA 7
Slide 9: Engineering Products – Deck Machinery
ENGINEERING PRODUCTS – DECK MACHINERY CAPSTANS HYDRAULIC DAVITS RAIL LESS HELO TRAVERSING MARINE PUMPS SYSTEM 8
Slide 10: Diesel Engine Plant Ranchi
DIESEL ENGINE PLANT RANCHI 9
Slide 11: Major Highlights of 2018-19
MAJOR HIGHLIGHTS OF 2018-19 10
Slide 12: New Major Orders Awarded
NEW MAJOR ORDERS AWARDED CONTRACT FOR 04 SURVEY VESSEL (LARGE) FOR INDIAN NAVY WITH ORDER VALUE Rs. 2435.15 Cr. • LENGTH – 109 M • TONNAGE – 3300 TON • SPEED – 18 KNOTS • ENDURANCE – 6500 NAUTICAL MILES • ACCOMMODATION – 231 Nos CREW YARD CONTRACTUAL DELIVERY 1ST SHIP OCT 21 2ND SHIP APR 22 3RD SHIP
Slide 13: New Major Orders Awarded
NEW MAJOR ORDERS AWARDED CONTRACT FOR 08 ASW-SWC FOR INDIAN NAVY WITH ORDER VALUE Rs. 6311.32 Cr. • LENGTH – 78 M • TONNAGE – 750 TON • SPEED – 25 KNOTS • ENDURANCE – 1800 NAUTICAL MILES • ACCOMMODATION – 57 Nos CREW • DELIVERY FOR 1ST SHIP 42 MONTHS SCHEDULED IN OCT 22 • TWO SHIPS EACH YEAR THERE A
Slide 14: Strong Order Book with Potential for Growth
STRONG ORDER BOOK WITH POTENTIAL FOR GROWTH Executable Order Book as on 31.03.2019 INR . 21,644 Crs. 8 Anti Submarine Warfare Shallow Water Crafts Firm Orders Total Order Book + INR . 6311 Crs. Contract signed 29 April 2019 INR 21,344 Crs. INR 300 Crs. • In line with future plans of Indian Navy Ship
Slide 15: Ongoing Shipbuilding Projects
ONGOING SHIPBUILDING PROJECTS SL PROJECT NO OF SHIPS TO FOR BE DELIVERED 1 ASW CORVETTE 01 INDIAN NAVY 2 LCU 02 INDIAN NAVY 3 FAST PETROL VESSEL 04 INDIAN COAST GUARD 4 MISSILE FRIGATES 03 INDIAN NAVY 5 SURVEY VESSEL LARGE 04 INDIAN NAVY 6 ASW (SHALLOW WATER CRAFT) 08 INDIAN NAVY TOTAL : 22 07 WARSH
Slide 16: DSIR Recognition of Central Design Office
DSIR RECOGNITION OF CENTRAL DESIGN OFFICE • Central Design Office, GRSE has been recognised as “In-House R&D Unit” by Department of Scientific and Industrial Research (DSIR) Under Ministry of Science & Technology • DSIR recognition qualifies GRSE for various recurring Tax Incentives • An impetus for
Slide 17: Representative VOP of a Frigate During Build Period
REPRESENTATIVE VOP OF A FRIGATE DURING BUILD PERIOD 14
Slide 18: Production Highlights of 2018-19
PRODUCTION HIGHLIGHTS OF 2018-19 16
Slide 19: Highlights of Shipbuilding
HIGHLIGHTS OF SHIPBUILDING • DELIVERED 04 WARSHIPS TO INDIAN NAVY & INDIAN COAST GUARD • 1ST SHIPYARD IN THE COUNTRY TO DELIVER 100 WARSHIPS • DELIVERED 08 WARSHIPS TO NAVY & ICG IN LAST 24 MONTHS • LAUNCHED 02 WARSHIPS • LAID THE KEEL OF 1ST FRIGATE OF P17A PROJECT • COMMENCED PRODUCTION OF 2ND FRI
Slide 20: Highlights of Engineering Division
HIGHLIGHTS OF ENGINEERING DIVISION • DELIVERED 35 PORTABLE STEEL BRIDGES TO INDIAN ARMY, BRO, OTHER STATE GOVTS. AND COUNTRIES LIKE NEPAL & BHUTAN • INSTALLED TWO BAILEY BRIDGES OF 80 FT LENGTH EACH IN KOLKATA IN RECORD TIME OF 06 DAYS • DECK MACHINERY UNIT MANUFACTURED & DELIVERED 40 EQUIPMENT AND
Slide 21: New Product Development in Bailey Bridge Segment
NEW PRODUCT DEVELOPMENT IN BAILEY BRIDGE SEGMENT 19
Slide 22: Portable Assault Bridge
PORTABLE ASSAULT BRIDGE • BEING DEVELOPED FOR INDIAN ARMY • CARBON FIBER REINFORCED POLYMER COMPOSITES • SPAN – 30 FT ROAD WIDTH – 2.10 M • BRIDGE WEIGHT – 180 KG FOR 30 FT • TIME FOR BRIDGE ASSEMBLY < 60 MIN • DESIGN COMPLETED AND MANUFACTURING IN PROGRESS 20
Slide 23: Double Lane Bridge
DOUBLE LANE BRIDGE • MAXIMUM CLEAR SPAN – 140 ft • CARRIAGE WAY – 7.5 m • LOAD CLASS – IRC6, 70R / Class-A • MODULAR CONSTRUCTION USING STRONGER PANEL • TAKE CARE OF 2 WAY HASSLE FREE TRAFFIC • PATENDED DESIGN OF GRSE AND FIRST OF ITS KIND IN INDIA. 21
Slide 24: Infrastructure Development
INFRASTRUCTURE DEVELOPMENT 22
Slide 25: Dry Dock 1 at RBD - Renovated
DRY DOCK – 1 AT RBD - RENOVATED PRIOR DEVELOPMENT POST DEVELOPMENT LENGTH - 170 M WIDTH - 14 M DEPTH - 6.46 M CAPACITY – MEDIUM SIZE SHIPS 23
Slide 26: Slipway 1 Under Renovation at RBD
SLIPWAY – 1 UNDER RENOVATION AT RBD PRIOR DEVELOPMENT UNDER REJUVENATION LENGTH - 120 M WIDTH - 20 M 24
Slide 27: Dry Dock 3 at RBD
DRY DOCK – 3 AT RBD PRIOR DEVELOPMENT WORK COMMENCED LENGTH - 114 M WIDTH - 14 M DEPTH – 6 M CAPACITY – MEDIUM SIZE SHIPS (EDC END 2022) 25
Slide 28: Slipway 2 Under Renovation
SLIPWAY – 2 UNDER RENOVATION PRIOR DEVELOPMENT WORK COMMENCED LENGTH - 165 M WIDTH - 14 M (EDC END 2022) 26
Slide 29: Block Fabrication Facility at RBD
BLOCK FABRICATION FACILITY AT RBD SIZE - 17 M X 8.5 M SIZE - 56 M X 25 M SIZE - 90 M X 30 M 27
Slide 30: U/W CNC Plasma Plate Cutting Machine - RBD
U/W CNC PLASMA PLATE CUTTING MACHINE - RBD COMMISSIONED - COST Rs 4.14 Crs. 28
Slide 31: CNC Pipe Bending Machine – MW
CNC PIPE BENDING MACHINE – MW COMMISSIONED - COST Rs 3.84 Crs. 29
Slide 32: Pipe Flanging Machine - MW
PIPE FLANGING MACHINE - MW COMMISSIONED - COST Rs 2.63 Crs. 30
Slide 33: Virtual Reality Lab
VIRTUAL REALITY LAB • 3D Virtual Reality Laboratory has been set up at Design Office at cost of Rs 9 Crores • VR Lab helps identification of design/ construction issues at early design stage 31
Slide 34: MOU with Elbit Unmanned Surface Vessel
MOU WITH ELBIT UNMANNED SURFACE VESSEL • MOU signed with Elbit Systems, Israel in Apr 2018 LENGTH - 12 M DRAFT (T) – 0.8 M • A Game Changers in Maritime Security and Multi Mission capable product MAX SPEED – 34 KNOTS • Indian Navy RFI published for procurement of USVs responded in Jul 2018 ENDURANCE
Slide 35: Installation of Integrated CCTV System
INSTALLATION OF INTEGRATED CCTV SYSTEM Integrated CCTV system across all production unit of GRSE planned for commissioning by Aug 2019, aide to surveillance as well as productivity monitoring – Total Cost 13.5 Crore 32
Slide 36: Financial Performance and Highlights
FINANCIAL PERFORMANCE AND HIGHLIGHTS 33
Slide 37: Key Financial Highlights
KEY FINANCIAL HIGHLIGHTS PARTICULARS FY 2019 FY 2018 Y-O-Y CHANGE % (Rs / Cr.) (Rs / Cr.) TURNOVER 1386.42 1349.66 3 EBITDA 211 164 29 PBT 178.96 127.75 40 PAT 109.94 92.40 19 EPS (Rs/Share of Value Rs 10) 9.60 7.60 26 PAT (MARGIN) - % AGE 7.06 6.04 17 EBITDBA (MARGIN) - % AGE 13.56 10.75 26 35
Slide 38: Total Revenue to EBITDA Margin
TOTAL REVENUE (Rs/Crs) to EBITDA MARGIN 2000 18.00% 1856 CAGR TOTAL REVENUE - 17% (3 YEARS) 1800 16.00% 1629 15.29% 1600 1529 1558 14.00% 1400 13.56% 12.00% 1200 1146 10.75% 10.00% 1000 8.00% Total Income 800 7.55% 6.00% 600 4.88% EBITDA Margin 4.00% 400 200 2.00% 0 0.00% 14-15 15-16 16-17 17-18 18-
Slide 39: PBT & PBT Margin
PBT (Rs / Crs) & PBT MARGIN 16.00% 300 14.00% 252 13.55% 250 12.00% 11.49% 200 10.00% 179 128 PBT 8.00% 8.36% 150 PBT Margin 6.00% 90 5.53% 100 4.00% 50 2.00% 20 1.76% 0.00% 0 14-15 15-16 16-17 17-18 18-19 Improvement in PBT of 40 % over previous year is mainly due to construction of P17A Project wi
Slide 40: PAT & PAT Margin
PAT (Rs / Crs.) & PAT MARGIN 10.00% 180 164 8.86% 9.00% 160 8.00% 140 7.06% 7.00% 6.04% 110 120 6.00% 92 100 5.00% PAT 80 4.00% PAT Margin 52 3.17% 60 3.00% 40 2.00% 1.00% 1.00% 11 20 0.00% 0 14-15 15-16 16-17 17-18 18-19 Increase in PAT in current year is 19% over previous year mainly in line with
Slide 41: Net Worth & Return on Net Worth
NET WORTH (Rs / Crs.) & RETURN ON NET WORTH 16.00% 1150 1137 14.47% 14.00% 1100 12.00% 1083 10.59% 10.00% 1050 9.05% 1038 1022 NET WORTH 8.00% 1007 RETURN ON NET WORTH 1000 6.00% 5.14% 4.00% 950 2.00% 1.06% 0.00% 900 14-15 15-16 16-17 17-18 18-19 39
Slide 42: R&D Expenditure and Indigenisation
R&D EXPENDITURE AND INDIGENISATION R&D EXPENDITURE TO PAT Item 2017-18 2018-19 164 R &D Exp. Rs/Crore 11.19 11.72 110 PAT Rs /Crore 92.40 109.94 92 PAT % of R&D Exp. to PAT 12.11 10.66 52 R & D to Revenue. 14 15 11 13 11 12 Company spends on average 10% to 12% of PAT on R&D activities to enhance 14-
Slide 43: Financials – EPS & DPS
FINANCIALS – EPS & DPS EPS 13.09 9.77 9.60 Improved Financial performance of FY 19 reflected 26% increase in Earning Per Share 7.60 EPS over FY 18. 3.51 0.93 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 Year DPS 6.95 Dividend Per share 4.30 4.37 Dividend declared Rs. 6.95 per Equity Share 4.43 ag
Slide 44: Employee Cost & VOP / Employee
EMPLOYEE COST & VOP / EMPLOYEE 70.00 31500 31003 64.07 65.66 31000 60.00 56.90 60.77 30500 50.00 29860 30000 40.00 29500 38.61 29173 29147 Employee Cost 30.00 29000 VOP / Employee 28578 28500 20.00 28000 10.00 27500 0.00 27000 2014-15 2015-16 2016-17 2017-18 2018-19 PARTICULARS 2014-15 2015-16 2016-
Slide 45: Capital Expenditure
CAPITAL EXPENDITURE Rs in Crore Shipyard plans to spend Rs. 200 to 250 Crs. in next 3 to 4 years on various Capital Projects mainly Modernization of existing Ship Building facilities at RBD and other Units to enhance the capabilities of Ships Constructions / Block Fabrication etc. 43
Slide 46: Thank You
THANK YOU 44
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