Gayatri Projects Limited · NSE:GAYAPROJ
Gayatri Projects — Q3 FY2021 Earnings Presentation
31 slides from Gayatri Projects's earnings presentation, Feb 8, 2021
Slide 1: Submission letter to BSE and NSE
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Slide 2: Gayatri Projects Limited Q3FY21 Earnings
Gayatri Projects Limited Q3FY21 Earnings 1
Slide 3: Disclaimer
Disclaimer The material that follows is a Presentation of general background information about the Company’s activities as at the date of the Presentation. It is information given in summary form and does not purport to be complete and it cannot be guaranteed that such information is true and accura
Slide 4: Gayatri 2.0 - Stronger Balance Sheet; Faster Execution
Gayatri 2.0 - Stronger Balance Sheet; Faster Execution Balance Sheet Strengthened 1 o Long Term debt reduced by INR 2.3 bn in Q3FY21 and INR 1.6 bn in 9MFY21 Fast paced Project Execution 2 o Q3 execution rate was c.30% up YoY EPC Order book getting stronger 3 o Won projects worth INR 35 bn since the
Slide 5: Balance Sheet Getting Stronger
1 Balance Sheet Getting Stronger Bank credit to company easing; execution picking up which is leading to higher working capital requirements 4
Slide 6: Long Term Debt Reduced 23% in 9 Month Period
Long Term Debt Reduced 23% in 9 Month Period Debt Maturity Profile (INR MN) Reducing Long Term Debt (INR Mn) 2,299 2,030 10,986 10,298 9,852 9,211 1,111 6,896 5,341 555 Q4FY21 FY22 FY23 FY24 FY16 FY17 FY18 FY19 FY20 9MFY21 Net Debt/Equity (x) EBITDA to CFO Conversion 2.38 2.5 97% 2.06 83% 1.7* 1.7#
Slide 7: Fast Paced Project Execution
2 Fast Paced Project Execution 3QYOY 3QFY21 Margins Revenue EBITDA Growth GP EBITDA Book to Bill Growth Gayatri Project 29% 21% 20% 14% 3.7x Peer 1 28% 34% 21% 16% 2.2x Peer 2 9% 4% 30% 14% 2.8x Peer 3 0% -15% 18% 11% 2.5x o Sector leading revenue & EBITDA growth o Large exposure of order book to UP
Slide 8: Pure Play EPC Order Book Getting Stronger
3 Pure Play EPC Order Book Getting Stronger Geographical Diversification Segmental Diversification 55% Others Hyderabad Jharkhand 40% Karnataka 3% 3% 2% Andhra Pradesh 3% 15% Bihar 6% 3% 1% Jammu ROAD IRRIGATION MINING INDUSTRIAL 7% Odisha 13% De-Risked EPC Order Book (INR Bn) Telangana 8% 163 129 1
Slide 9: GPL: Amongst India's leading Asset-Light EPC Companies
GPL: Amongst India’s leading Asset – Light EPC Companies One of India’s leading EPC focused construction and infrastructure companies Business Segments Re-focused business on “Asset-Light” Model over last 4 years Reduced, restructured, monetized exposure to Asset Development Business Significant
Slide 10: Q3FY21 Results Update
Q3FY21 Results Update NOY, GAYATRI
Slide 11: Operational and Financial Snapshot: Q3FY21
Operational and Financial Snapshot: Q3FY21 Debt Servicing • Pursuant to the Debt Resolution Plan proposed by the company to its lender's consortium, the company has received a sum of INR 208 cr by way of monetisation of arbitration claim awarded to it by utilizing Arbitration Bank Guarantee facility
Slide 12: Q3FY21 (YoY) – Financial Performance
Q3FY21 (YoY)– Financial Performance Revenue (INR Mn) EBITDA (INR Mn) Key Highlights 10,742 • Revenue – Strong Execution pickup 8,354 1,460 up in Q3 across most of the 1,204 locations • EBITDA margin impacted due to commodity price increase. These are typically passed on to client Q3FY20 Q3FY21 with
Slide 13: Q3FY21 Income Statement - Snapshot
Q3FY21 Income Statement - Snapshot INR Mn Q3FY21 Q3FY20 YoY(%) 9MFY21 9MFY20 YoY(%) Revenue 10,742 8,354 29% 25,404 25,172 1% Expenses -9,282 -7,149 30% -22,023 -21,446 3% EBITDA 1,460 1,204 21% 3,381 3,725 -9% EBITDA Margin 13.6% 14.4% 13.3% 14.8% Depreciation -216 -199 8% -654 -586 12% Finance Cos
Slide 14: Top Work Orders – Status Update – Q3FY21
Top Work Orders – Status Update – Q3FY21 Contract Balance work as on Mobilized on Revenue Expected Completion of Project Name Location Value (INR Cr) 01.01.2021 (INR Cr) Site Booking Start Project Purvanchal Expressway Package 1 Eastern UP 1,483 663 Yes Q3 19 Q2 22 Purvanchal Expressway Package 2 Ea
Slide 15: Top Work Orders – Status Update – Q3FY21
Top Work Orders – Status Update – Q3FY21 Contract Value Balance work as on Mobilized Revenue Booking Expected Completion of Project Name Location (INR Cr) 01.01.2021 (INR Cr) on Site Start Project Nagpur - Mumbai Expressway Shirdi, MH 1,312 942 Yes Q1 20 Q3 22 6 Lane Tunnel at Khambataki Ghat Satara
Slide 16: Notes to Account - Snapshot
Notes to Account - Snapshot Note 7 8 Description Gayatri Hi-Tech Hotels: Legacy issue. Investment in Gayatri Highways Limited: Significantly delayed EPC cost receivable Road BOT assets owned by GPL were spun off from a related party. It was subsequently into separate listed company (GHL) and 74% con
Slide 17: Notes to Account - Snapshot
Notes to Account - Snapshot Note 9 10 Description Contract Advances (loan): Exposure to Sai Maatarini Tollways Limited (SMTL) – In the ordinary course of (Subsidiary of associate company – GHL). The company has business, the company had given to receive an amount of INR 245cr towards EPC cost from c
Slide 18: Notes to Account - Snapshot
Notes to Account - Snapshot Note 11 12 Description Receivables from Western UP Tollways Advance to Suppliers, Sub (WUTPL)(erstwhile associate company). EPC Cost – 36.2 Contractors given in the cr. This amount is receivable from the erstwhile associate normal course of business company against the EP
Slide 19: Building an Asset Light Business Model
Building an Asset Light Business Model Growing Revenue Base (INR MN) Working Capital Days 105 93 78 78 64 62 FY16 FY17 FY18 FY19# FY20 9MFY21* Receivable Days Inventory Days Payable Days Net Working Capital * Due to lockdown, work at major sites came to standstill during Q1FY20 and the revenue durin
Slide 20: Roadmap to reduce term debt to zero
Roadmap to reduce term debt to zero Conciliation & Settlement mechanism introduced by GOI/NHAI INR 1 Bn+ Internal Accruals/Other Initiatives INR 2-3 Bn+ Total expected cashflow INR 3-4 Bn+ 19
Slide 21: FY21: Guidance
FY21: Guidance FY21 Guidance (INR Mn) Order Inflow INR 30 - 40 billion Revenues 0% - 5% Growth EBITDA Margin 13% - 14% 20
Slide 22: Key Investment Highlights
Key Investment Highlights Strong presence in high growth construction sector Healthy and diversified pure EPC un-executed order book with good revenue growth visibility Highly efficient operations with strong execution capabilities Balance-sheet improvement on track for industry leading metrics in n
Slide 23: Appendix
Appendix 22
Slide 24: Awards & Claims
Awards & Claims Different arbitration tribunals/courts have awarded GPL, a total of INR 5 Bn+, AWARDS INR 5 Bn+ towards disputed receivables from its EPC clients. In addition, GPL has a net exposure to CLAIMS INR 3.5 Bn+ outstanding claims of INR 3.5 Bn+ in different arbitral tribunals/courts. 23
Slide 25: Monetisation of stake in power asset
• The company concluded the sale of its 5.95% stake in power assets of Sembcorp Energy India Ltd (“SEIL”) for cash proceeds of INR 4,068 Mn + upside option in Dec 2019. • The proceeds from the above sale, INR 2,068 Mn has been used towards repayment of long-term debt and the balance amount is utiliz
Slide 26: Profit & Loss
Profit & Loss All figures in INR Million INR Mn FY20 FY19 FY18 FY17 Revenue 34,273 34,631 29,123 21,154 Expenses 30,007 29,182 24,446 17,919 EBITDA 4,266 5,449 4,677 3,234 EBITDA Margin 12.4% 15.7% 16.1% 15.3% Depreciation 909 659 547 432 Finance Cost 2,857 2,513 2,394 2,014 Other Income 52 79 89 30
Slide 27: Balance Sheet
Balance Sheet All figures in INR Million ASSETS (INR Mn) H1FY21 FY20 FY19 FY18 EQUITY AND LIABILITIES (INR Mn) H1FY21 FY20 FY19 EQUITY NON-CURRENT ASSETS (a) Equity Share capital 374 374 374 (a) Property Plant & Equipment 3,643 3,942 3,763 3,350 (b) Other Equity 8,965 9,049 12,922 (b) Capital Work i
Slide 28: Board of Directors
Board of Directors T. Indira Reddy Promoter and Non-Executive Chairperson, over 25 years of experience in the construction industry T. V. Sandeep Kumar Reddy Promoter and Managing Director, 20+ years of construction experience Executive Vice Chairman, Over 49 years of experience in Heavy Engineering
Slide 29: Management Team - HQ
Management Team - HQ T Sandeep Reddy D Sitaram ▪ Managing Director ▪ President, Business Development ▪ Masters in Construction Engineering & ▪ In-charge of evaluating new business units, Management from University of Michigan, USA identifying suitable Joint-Venture partners, and ▪ 20+ years of const
Slide 30: Management Team - Projects
Management Team - Projects K Sesha Reddy CH Ramakrishna Rao ▪ Senior Vice President, Transportation ▪ Senior Vice President, Roads ▪ In-charge of project monitoring and controls ▪ Oversees road construction projects ▪ Previously a Project Head at L&T ▪ Masters in Construction management from Birla ▪
Slide 31: Thank You
Thank You Contact Details Sreekiran V Sheetal Khanduja Gayatri Projects Limited Go India Advisors Tel: +91 40 23310330/4284/4296 +91 9769364166 sreekiran.v@gayatri.co.in sheetal@goindiaadvisors.com Ankit Toshniwal Chetan Sharma Go India Advisors Gayatri Projects Limited +91 7976749036 Tel: +91 40 23