RPP Infra Projects Ltd. · NSE:RPPINFRA
RPP Infra Projects — Investor Presentation (August 2018)
33 slides from RPP Infra Projects's investor presentation, Aug 21, 2018
Slide 1: RPP Infra Projects Ltd - Exchange Cover Letter
A RPP Infra Projects Ltd Tuesday, 215 August, 2018 Corporate Relationship Department The Manager, Listing Department BSE Limited National Stock Exchange of India Ltd 1s Floor, New Trading Ring, Exchange Plaza, 5th Floor, Rotunda Building, P.J. Towers, Plot no. C/1, Block G, Dalal Street, Fort, Bandr
Slide 2: RPP Infra Projects Ltd Corporate Presentation August 2018
RPP INFRA PROJECTS LTD CORPORATE PRESENTATION | AUGUST 2018
Slide 3: Disclaimer
Disclaimer This presentation contains forward-looking statements which may be identified by their use of words like “plans,” “expects,” “will,” “anticipates,” “believes,” “intends,” “projects,” “estimates” or other words of similar meaning. All statements that address expectations or projections abo
Slide 4: Agenda
Agenda 1 Introduction to the Company Slides 4-8 2 Q1FY19 Review & Future Guidance Slides 9-15 3 Industry Overview Slides 17-21 4 Appendix – Company Overview Slides 23-31
Slide 5: A Pure Play Niche EPC Company
A Pure Play Niche EPC Company Order Book (June’18) – INR 15,000 million ! Strong presence in the fast-growing micro-markets of South India 18% Water ! Currently spreading its footprints in Maharashtra and Management MP for geographical diversification Buildings ! Diversified presence in Highways, Ro
Slide 6: A Fast Growing Company…
A Fast Growing Company… Revenue EBITDA PAT (INR Mn) (INR Mn) (INR Mn) 649 4,991 296 483 454 228 3,672 399 3,147 193 358 351 2,600 2,659 2,403 136 115 103 FY13 FY14 FY15 FY16 FY17 FY18 FY13 FY14 FY15 FY16 FY17 FY18 FY13 FY14 FY15 FY16 FY17 FY18 Adjusted PAT excluding Tax expense of Rs. 17.96 crores t
Slide 7: …With a Strong Balance Sheet
…With a Strong Balance Sheet Return on Equity Net cash from operations Net Debt to Equity (%) (INR Mn) (x) 13 704.9 0.6 11 10 10 0.5 9 0.4 6 370.5 374.3 0.2 0.2 176.9 191.4 -16.8 -0.1 FY13 FY14 FY15 FY16 FY17 FY18 FY13 FY14 FY15 FY16 FY17 FY18 FY13 FY14 FY15 FY16 FY17 FY18
Slide 8: Cash Conversion Cycle Improving
Cash Conversion Cycle Improving 300 259 250 237 195 200 151 147 142 150 131 113 111 110 106 95 92 88 100 56 61 40 50 33 13 1 1 2 4 4 0 2013 2014 2015 2016 2017 2018 Receivable days Inventories Payable Days Cash Conversion Cycle Please note: Above data in number of days
Slide 9: Creating Sustainable Shareholder Value
Creating Sustainable Shareholder Value Net cash from operations Free Cash Flow Generation OCF/EBITDA (INR Mn) (INR Mn) 704.9 0.82 0.82 0.77 485.4 339.6 0.55 0.49 370.5 374.3 266.7 187.1 191.4 146.4 176.9 -16.8 -0.04 FY13 FY14 FY15 FY16 FY17 FY18 2013 2014 2015 2016 2017 2018 2013 2014 2015 2016 2017
Slide 10: Q1FY19: Creating a Strong Base for Superior Growth
Q1FY19: Creating a Strong Base for Superior Growth Revenue (INR Mn) 1125 Operational Highlights Financial Highlights 1004 o Revenue down 11% YoY o Order inflows in Q1FY19 Q1FY18 due to ongoing projects Q1FY19 at INR 5 Bn+ nearing completion stage EBITDA (INR Mn) & EBITDA Margin (%) o Won new orders
Slide 11: Q1FY19 At a Glance
Q1FY19 At a Glance INR Mn Q1FY19 Q1FY18 % Change Revenues 1,004 1,125 (11%) EBITDA 136 162 (16%) EBITDA Margin 13.6% 14.4% Finance Cost 47 58 (19%) PAT 64 78 (18%) EPS (INR) 2.8 3.4
Slide 12: Business Review – Q1FY19
Business Review – Q1FY19 ROADS ! Current Order Book – INR 8,119 Mn; growth of 92% YoY ! Bid pipeline of INR 971 Mn ! Will maintain high EBITDA margins of 12-14% WATER MANAGEMENT ! Current Order Book – INR 2,637 Mn; growth of 70% YoY ! Bid pipeline of INR 2,767 Mn ! Will maintain high EBITDA margins
Slide 13: FY19 – Strong Order Inflows
FY19 – Strong Order Inflows Name Amount Segment State Q1FY19 Order Wins Multi-storey tenements in Erode INR 1,190 Mn Affordable Housing Tamil Nadu NH-347A INR 1,449 Mn Roads & Highways Maharashtra NH-161E INR 1,382 Mn Roads & Highways Maharashtra Central Public Works Department INR 679 Mn Buildings
Slide 14: Orderbook Growth Trajectory
Orderbook Growth 100% Order Book Break-up Trajectory Govt Order Book Overseas (INR Mn) 10% 15,000 27%+ Karnataka 10% Tamil Nadu 32% Order Book Growth 11,750 INR 2 Bn + 8,590 7,860 Order Wins post Q1FY19 Andhra 7,250 Pradesh 2% Maharastra 9 33% States of Operations Kerala 9% 2 Madhya Telegana Pradesh
Slide 15: FY19 Outlook & Guidance
FY19 Outlook & Guidance Revenue Guidance INR Mn FY2018 Actual 4,991 FY2019 6,500-7,000 FY2020 8,500-9,000
Slide 16: Key Investment Highlights
Key Investment Highlights Growing Order Book • c.2x in 3 years Short duration projects • 2.2x Book to Bill ratio Strong revenue visibility • 87% of projects to be completed in 18-24 months period Superior Revenue Growth • 30%+ for next 2 years De-risked Business Profile • 100% Government orders Heal
Slide 17: Industry Overview
Industry Overview
Slide 18: Construction industry in India: Compelling growth drivers
Construction industry in India: Compelling growth drivers o Growing economy and increasing urbanization along with favorable policy bodes well for construction sector in the country o Big boost in infrastructure spending expected over next few years NHAI awarding (1) Roads Kms New projects 6,278 6,5
Slide 19: Rural Infra: A Strong Government Focus
Rural Infra: A Strong Government Focus UNION BUDGET: ALLOCATION TO INFRASTRUCTURE SECTOR 5.97 3.96 2.51 2.21 1.81 FY15 FY16 FY17 FY18 FY19
Slide 20: Significant Upcoming Growth in Roads
Significant Upcoming Growth in Roads USD 100 billion allotted for GoI plans to invest USD 22.4 billion towards road infra in Key Govt Priority infrastructure in India North-East India during 2018-2020 Length of national Roads and Highways industry projected to exhibit CAGR of Sector highways to reac
Slide 21: Bharatmala: Stepping Stone Towards New India
Bharatmala: Stepping Stone Towards New India Components of BharatMala Road Length Outlay Programme (KM) (INR Bn) ! Corridor-based approach Economic Corridor Development 9,000 1,200 ! INR 3.8 tn of new projects out of INR 6.9 tn of overall spends Inter-Corridor and feeder roads 6,000 800 National cor
Slide 22: The Irrigation Opportunity
The Irrigation Opportunity India accounts for ~17% of the total world’s population but only 4% of Drip Irrigation coverage 3.37 MHA the world’s fresh water resources: FICCI Micro Irrigation is amongst priority areas – exclusive fund being set up Sprinkler Irrigation coverage 4.36 MHA in NABARD Theor
Slide 23: Appendix – Business Highlights
Appendix – Business Highlights
Slide 24: De-Risked Business Model
De-Risked Business Model Short Max Project Duration: 24 mths Low Ticket Max Project Size < INR 250 Crores Duration Projects Projects Superior Profitability EBITDA Margins: 13%-14%
Slide 25: Improving Geographical Diversification
Improving Geographical Diversification FY14 Order Book – INR 5,360 mn FY18 Order Book – INR 11,750 mn Overseas Madhya Pradesh 13% Uttar 3% Pradesh, 9% Kerala Maharashtr Tamil Nadu 3% a, 6% 40% Telangana 2% Karnataka, 12% Karnataka 13% Tamil Nadu, 73% Maharashtra 24% Andhra Pradesh 2%
Slide 26: High Revenue Visibility
High Revenue Visibility Project Duration Project Duration by Sector 5-10 mths 2% 39% 11-15 mths 25% 23% 11% 8% 16-24 mths 2% 3% 87% 5-10 Mths 11-15 Mths 16-24 Mths Building Infra Water Mgmt Book to bill ratio: 2.2x
Slide 27: Efficient Operations
Efficient Operations Large Talent Pool Small Ticket Size Captive equipment Stringent Enhance Onsite Liquidity Operations Control Strategic Subcontracting Raise Accelerate Milestone Project Bills Faster Completion Accurate Project Modelling
Slide 28: Key Marquee Projects
Key Marquee Projects Power Projects & Civil Work Infrastructure Industries Water & Irrigation Buildings • Sub Station at • Atomic Energy, • BHEL – Tirchy, • Construction for • 1000 units of homes KPTCL, Karnataka Kalpakkam Chennai contour canal for for IDPs in Sri Lanka • Udupi Project, • Storm wate
Slide 29: Talent Driven Organization
Talent Driven Organization § Started RPP Infra in 1988 Mr. P. Arulsundaram § Civil Engineer by qualification § Practical experience of more than 23 years in construction industry Chairman & MD § Trustee in Erode District Builder’s Association Engineering College § Masters in Business Administration
Slide 30: Board of Directors
Board of Directors § Bachelors Degree from National Institute of Technology, Fellow of Mr. K. Ravi Institution of Engineers & Certified Maintenance Professional § Has over 43 years of experience in the construction industry Independent Director § Bachelors Degree from National Institute of Technolog
Slide 31: P&L Table
P&L TABLE INCOME STATEMENT (INR Mn) FY17 FY18 Revenue 3,663 4,991 COGS 2,934 3,979 Employee Benefits Expense 64 90 Other Expenses 182 273 EBITDA 483 649 EBITDA Margin 13% 13% Depreciation 51 68 Finance Cost 168 193 Other Income 40 64 PBT 305 452 PBT Margin 8% 9% Tax Expense 77 156 Tax Rate 25% 35% P
Slide 32: B/S Table
B/S TABLE EQUITY & LIABILITIES FY17 FY18 ASSETS FY17 FY18 Share Capital 226 226 Tangible assets 285 303 Reserves and Surplus 1,849 1,973 Intangible assets 3 4 Net Worth 2,075 2,199 Capital Work-In-Progress 40 2 Non-Current Liabilities Non Current Investments Long term Borrowings 168 118 Long Term Lo
Slide 33: Thank You & Contact Us
Thank You & Contact Us Sheetal Khanduja Go India Advisors +91 9769364166 sheetal@goindiaadvisors.com Tanya Khosla Go India Advisors +91 9769387813 tanya@goindiaadvisors.com
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