Rpp Infra Projects Ltd. · NSE:RPPINFRA
Rpp Infra Projects — Q2 FY2017 Earnings Presentation
32 slides from Rpp Infra Projects's earnings presentation, November 2016
Slide 1: One of India's most profitable rural infrastructure players
RPP Infra Projects One of India’s most profitable rural infrastructure players Investor Presentation November 2016 Construction + Infrastructure building
Slide 2: The one big idea behind what RPP Infra intends to communicate
There is just one big idea behind what RPP Infra intends to communicate Fastest growing spaces + Fastest growing states + Safest customer = Most profitable 2
Slide 3: RPP Infra's Space
RPP Infra’s Space Fastest growing spaces: Irrigation and water supply, Civil construction works, National Highways, Rural roads and other Infrastructure works Fastest growing states: Telangana, Andhra Pradesh, Karnataka and Madhya Pradesh Safest customer: The Government Most profitable: 16%
Slide 4: Catering to some of the largest states in India
C AT E R IN G TO S O M E O F T H E L A R G E S T S TAT E S IN IN D IA Telangana Twelfth largest state of India GSDP grew average 9.2% in 2015-2016 Andhra Eight largest state of India Pradesh GSDP grew average 10.5% in 2015-16 Karnataka Ninth largest state of India GSDP grew average 15.2% in 2015-16
Slide 5: This strategic focus has worked in the past
T H IS S T R AT E G IC F O C U S H AS WORKED IN THE PAST Resulting in Resulting in Resulting in a safe sectoral attractive growth Balance Sheet even outperformance in the most challenging times 5
Slide 6: New plan for emerging India
NEW PLAN FOR EMERGING INDIA Atal mission for rejuvenation and urban transformation(AMRUT) Madhya Pradesh Local Area Development Scheme Integrated Rural Development Program Jawaharlal Nehru National Urban Renewal Mission (JnNURM) Indira Awaas Yojana NTR Special Housing for HudHud Cyclone
Slide 7: Our financial growth over the years
OUR FINANCIAL GROWTH OVER THE YEARS From a turnover of Rs. 144.55 crore in 2009-10 to Rs. 314.69 crore in 2015-16 From an operating profit of Rs. 14.74 crore in 2009-10 to Rs. 45.45 crore in 2015-16 From a cash profit of Rs. 10.72 crore in 2009-10 to Rs. 31.32 crore in 2015-16 From a net profit of R
Slide 8: Our financial journey contd
8 2011-12 265.50 2012-13 259.97 2013-14 240.28 2014-15 265.94 Turnover (Rs. crore) 2015-16 314.69 2011-12 46.00 2012-13 43.12 2013-14 42.62 EBIDTA (Rs. crore) 2014-15 45.92 2015-16 50.00 2011-12 17.33 2012-13 16.59 2013-14 17.74 EBIDTA margin (%) 2014-15 17.27 2015-16 16.02 2011-12 22.59 2012-13 11.
Slide 9: Our financial journey
9 2011-12 46.86 2012-13 52.07 2013-14 68.66 share (Rs.) 2014-15 75.52 Book value per 2015-16 82.77 c o n t d … 2011-12 23.99 2012-13 10.16 2013-14 10.30 RoNW (%) 2014-15 10.24 2015-16 10.27 2011-12 10.00 2012-13 5.03 2013-14 6.19 share (Rs.) Earnings per 2014-15 7.34 2015-16 8.49 Our financial journ
Slide 10: RPP Infra has been one of India's most profitable rural infrastructure companies
RPP Infra has been one of India ’s most profitable rural infrastructure companies EBIDTA EBIDTA margin Order margin never below book 16.02% 15% 33% in 2015-16 in the last of order book focused on (industry average Five years generating EBIDTA in 15%) excess of 14 per cent 10
Slide 11: Q2FY17 Performance
11 Q2 FY16 91.92 Q2 FY17 85.74 Turnover (Rs. crore) Q2 FY16 15.34 EBIDTA 13.55 (Rs. crore) Q2 FY17 16.69 Q2 FY16 EBIDTA 15.80 margin (%) Q2 FY17 Q2 FY16 5.06 Q2 FY17 Net profit 5.96 (Rs. crore) Q2FY17 PERFORMANCE
Slide 12: H1FY17 Performance
12 H1 FY16 176.80 H1 FY17 170.50 Turnover (Rs. crore) H1 FY16 28.71 EBIDTA 27.24 (Rs. crore) H1 FY17 H1 FY16 16.24 EBIDTA 15.98 margin (%) H1 FY17 9.62 H1 FY16 Net profit H1 FY17 11.80 (Rs. crore) H1FY17 PERFORMANCE
Slide 13: Our growing order book
OUR GROWING ORDER BOOK Sector / Vertical Order Book % (in Rs. crore) 32.36% 38.44% Buildings Buildings 273.15 32.36% Water Management Infrastructure Water Management 246.39 29.20% 24% Infra Structure 324.36 38.44% 29.20% TOTAL 843.91 100.00% Works in Pipeline TN Civil Supplies Corp Construction of s
Slide 14: Q2 & H1FY17 Financial Highlights
Q2& H1FY17- Financial Highlights Rs. Crore Q2 FY17 Q2 FY16 H1 FY17 H1 FY16 Revenue from Operations 85.74 91.92 170.50 176.80 Raw Material & Fuel Costs 67.02 75.43 134.90 143.23 Employee Cost 1.62 1.35 2.86 2.74 Other Cost 4.06 2.69 6.43 5.38 EBITDA 13.55 15.34 27.24 28.71 EBIDTA margin (%) 15.80% 16
Slide 15: Balance Sheet Highlights
Balance Sheet Highlights Sep-16 Mar-16 Sep-16 Mar-16 Shareholder’s Funds 163 151 Non-current assets 58 54 Share capital 23 23 Fixed assets 31 29 Reserves & Surplus 140 128 Non-current Investments 1 1 Long-term loans & advances 3 1 Other non-current assets 22 22 Non-current liabilities 28 15 Deferred
Slide 16: Sustainable growth is the result of a robust business model
RPP Infra’s sustainable growth in the most challenging times is the result of a robust business model 16
Slide 17: RPP Infra's margin outperformance the result of a distinctive business model
RPP Infra’s margin outperformance the result of a distinctive business model Spaces Regional Solutions Engaged in verticals that represent South India focus; deep terrain Design to implementation in civil national priorities; verticals are proxies competence; zone outperforming construction segment;
Slide 18: 4 principal elements of RPP Infra's business model
4 principal elements of RPP Infra’s business model A robust Balance Sheet 1 Prudent selection of verticals 2 Focus on government contracts 3 Rich knowledge capital 4 18 Result: Rs 843.91 crore order book as on 30th September 2016
Slide 19: Focus on specific verticals
FOCUS ON SPECIFIC VERTICALS 1 Civil construction (Building projects): 23.88% of revenues, 2015-16 2 Irrigation and water supply projects: 32.62% of revenues, 2015-16 3 Infrastructure and road projects: 43.49% of revenues, 2015-16 19
Slide 20: Government contracts
GOVERNMENT CONTRACTS Government largest infrastructure spender in India Growing delegation of spending from centre to States States spending larger amounts in most areas of the company’s presence Government contracts accounted for 100% of order book (30th September 2016) Bad debts (0.8% of turnover,
Slide 21: Knowledge capital
KNOWLEDGE CAPITAL Long Projects Projects Credible experience experience completion client record tenure capability Attractive Bidding Alliances Awards and projects competence recognition delivered 21
Slide 22: Projects experience
PROJECTS EXPERIENCE Power Projects Infrastructure Industries Water & Irrigation Building Civil work Sub Station at KPTCL, Atomic Energy- BHEL- Tirchy , TN Construction of Civil Supply Godown at Karnataka Kalpakkam ( Phase I & Contour Canal for Various Places 45000 MRPL, Mangalore, KA II)
Slide 23: Projects completion capability
PROJECTS COMPLETION CAPABILITY Captive equipment Completed most projects on (Rs./crore) availability SBU-based business, schedule with no delay at the resulting in project company’s end 30 control 90 engineers and Aggregate experience of 1500 150employees person-years 23
Slide 24: Credible client record
CREDIBLE CLIENT RECORD (WHO WORK ON GOVERNMENT CONTRACTS) 24
Slide 25: Bidding competence and alliances
Bidding competence Alliances Focus on projects that represent Entered into alliances with two challenges, nichenessand global companiesto strengthen attractivemargins pre-qualification capability Bidding competence Will enable thecompanyto bid (25% strike rate in Southem for larger projects states &
Slide 26: Awards and recognition
AWARDS AND RECOGNITION Excellence of Construction award from 'Kongu Polytechnic College, Perundurai, in the year 2004 Award for Construction of Anna University, Chennai in the year 2005 Excellence of construction award from 'Neyveli Lignite Corporation, Neyveli (NLC) in the year 2007 Excelle
Slide 27: Case for national optimism
C AS E F O R N AT IO N A L O P T IM IS M Government focus Prominent nation- Impending on growing the driving schemes elections in Tamil country’s comprising ‘Power Nadu to drive construction, for All by 2022’, capital power, railways, Pradhan Mantri expenditure; roads, highways, Gram Sadak Focus on
Slide 28: Some macro infrastructure numbers
SOME MACRO INFRASTRUCTURE NUMBERS Andhra Government planned Rs.73,000 cr for setting up smart industrial township in 10,000 hectares involving at least 200 industries Indian government pushing for reforms leading to more infrastructure projects The government created a Rs 15,000 crore infrastructure
Slide 29: A quick recap
A QUICK RECAP 6 POINTS THAT ARE FAST-TRACKING RPP INFRA’S GROWTH 29
Slide 30: Board of Directors
BOARD OF DIRECTORS Mr. R.P. A Civil Engineer by qualification Arulsundaram Started RPP in 1988 as a partnership firm Chairman and Practical Experience of more than 23 years in construction industry Managing Director Trustee in the Erode District Builder’s Association Engineering Collage Ma
Slide 31: Independent Directors
INDEPENDENT DIRECTORS Mr. K. Ravi Bachelor of Engineering from National Institute of Technology, Fellow of Institution of Engineers & Certified Maintenance and Reliability Professional Independent Director Over 43 years of experience in engineering industry Mr. P.R. Holds a Bachelor of Enginee
Slide 32: Safe Harbor Statement
SAFE HARBOR STATEMENT THIS PRESENTATION HAS BEEN PREPARED BY THE COMPANY BASED ON INFORMATION AND DATA WHICH THE COMPANY CONSIDERS RELIABLE, BUT THE COMPANY MAKES NO REPRESENTATION OR WARRANTY, EXPRESS OR IMPLIED, WHATSOEVER, AND NO RELIANCE SHALL BE PLACED ON, THE TRUTH, ACCURACY, COMPLETENESS, FAI