H.g. Infra Engineering Ltd. · NSE:HGINFRA
H.g. Infra Engineering — Q2 & H1 FY20 Earnings Presentation
33 slides from H.g. Infra Engineering's earnings presentation, Nov 9, 2019
Slide 1: Cover letter to stock exchanges
CIN No.: L45201 PIJ2003PLCO18049 HGIELI We Ma!{e People Move ... November 09, 2019 BSE Limited National Stock Exchange of India Limited P.J. Towers, Dalal Street, Exchange Plaza, Bandra Kurla Complex, Mumbai- 400001 Mumbai-400051 Scrip Code-541019 Scrip Code- HGINFRA Dear Sir/Madam, Sub: Investor Pr
Slide 2: HG Infra Engineering Investor Presentation Q2 & H1FY20
HG Infra Engineering Investor Presentation Q2 & H1FY20 Uncha Nagla Project
Slide 3: Disclaimer
This presentation and the accompanying slides (the “Presentation”), which have been prepared by HG Disclaimer Infra Engineering Limited (the “Company”), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for any s
Slide 4: Contents
Contents Q2 & H1FY20 Result Highlights Company Overview Key Strengths Growth Strategy Historical Financials
Slide 5: Q2 & H1FY20 Highlights
Q2 & H1FY20 Highlights Kaithal Project
Slide 6: Standalone result highlights Q2FY20
Standalone result highlights Q2FY20 Rs mn Revenue EBITDA and EBITDA Margin 14.5% 15.5% 11% 4,742 4,291 733 623 Q2FY19 Q2FY20 Q2FY19 Q2FY20 PBT & PBT Margin PAT and PAT Margin 8.8% 10.0% 5.7% 8.1% 474 385 379 246 Q2FY19 Q2FY20 Q2FY19 Q2FY20 5
Slide 7: Standalone result highlights H1FY20
Standalone result highlights H1FY20 Rs mn Revenue EBITDA and EBITDA Margin 14.7% 15.3% 14% 10,003 8,793 1,528 1,294 H1FY19 H1FY20 H1FY19 H1FY20 PBT & PBT Margin PAT and PAT Margin 9.0% 10.0% 5.9% 7.3% 1,001 730 791 516 H1FY19 H1FY20 H1FY19 H1FY20 6
Slide 8: Standalone Profit and loss statement
Standalone Profit and loss statement Quarter Half year (Rs mn) Q2FY20 Q2FY19 YoY H1FY20 H1FY19 YoY Revenue from operations 4,742 4,291 10.5% 10,003 8,793 13.8% Cost of material consumed 1,732 1,999 4,007 4,255 Contract and site expenses 1,912 1,331 3,768 2,580 Employee expenses 264 291 553 574 Other
Slide 9: Consolidated Profit and loss statement
Consolidated Profit and loss statement Quarter Half year (Rs mn) Q2FY20 Q2FY19 YoY H1FY20 H1FY19 YoY Revenue from operations 4,793 4,294 11.6% 10,115 8,796 15.0% Cost of material consumed 1,732 1,999 4,007 4,255 Contract and site expenses 1,917 1,331 3,773 2,580 Employee expenses 266 293 557 576 Oth
Slide 10: Standalone Balance Sheet as on 30th Sept 2019
Standalone Balance Sheet as on 30th Sept 2019 Rs mn Sep’19 Mar’19 Rs mn Sep’19 Mar’19 Share Capital 652 652 Fixed Assets incl. CWIP 4,356 4,585 Reserves 6,623 5,940 Other Financial Assets 156 120 Shareholders' Funds 7,275 6,592 Other Non Current Assets 667 437 Secured Loans 386 593 Total Non-Current
Slide 11: Consolidated Balance Sheet as on 30th Sept 2019
Consolidated Balance Sheet as on 30th Sept 2019 Rs mn Sep’19 Mar’19 Rs mn Sep’19 Mar’19 Share Capital 652 652 Fixed Assets incl. CWIP 4,410 4,588 Reserves 6,719 5,978 Other Financial Assets 156 120 Shareholders' Funds 7,371 6,630 Other Non Current Assets 283 265 Secured Loans 993 593 Total Non-Curre
Slide 12: Robust and well diversified order book
Robust and well diversified order book Robust growth in order book (Rs mn) Client wise break-up: Govt. Optimum mix of 57% Private prime contracts and 43% select private projects 62,721* 62,223 9,508 Telangana, Haryana, 15% 27% Geographical break- 46,071 up: successful Maharashtra, 40,191 diversifica
Slide 13: Key orders under execution
Key orders under execution EPC projects Project Awarding authority State Project Value (Rs mn) Eight laning of Haryana-Rajasthan Border; part of NHAI Rajasthan 9,971 Delhi-Vadodara greenfield section Six laning of Hapur Bypass to Moradabad IRB UP 11,722 Six laning of Gulabpura-Chittorgarh IRB Rajast
Slide 14: Recent developments
Recent developments Received an EPC order from Adani Road Transport Limited To execute road works, civil & other associated works on Engineering, Procurement and Construction (EPC) basis The scope of work involves four laning of NH-363 from Mancherial to Repallewada in Telangana Valued at Rs 9
Slide 15: Overview
Overview Manoharpur Dausa Project
Slide 16: Company overview
Company overview 32 1,850+ 3,500+ PROJECTS UNDER FLEET SIZE MANPOWER EXECUTION Rs 62,700mn+ 39% 52% ORDER BOOK Revenue CAGR Profit After Tax CAGR (30th September 2019+ (FY16-FY19) (FY16-FY19) order in Oct’19) 15
Slide 17: Leadership team
Leadership team Mr. Harendra Singh Chairman and Managing Director • 25+ years of experience in the construction industry • Holds bachelor’s degree in engineering (civil) from Jodhpur University • Awarded twice by the Indian Achievers Forum for his outstanding achievement in business and social servi
Slide 18: Board of directors
Board of directors Mr. Vijendra Singh Whole-time Director • ~25 years of experience in the construction industry • Responsible for the overall functioning of the Company Ms. Dinesh Kumar Goyal Non-Executive Non Independent • Retired IAS, has more than 40 years experience in working at top level posi
Slide 19: Key Strengths
Key Strengths Bhilwara Gulabpura Project
Slide 20: Tangible pool to drive execution and efficiencies: Machine
Tangible pool to drive execution and efficiencies Machine + People + Process Gross Block (Rs mn) Fleet of modern construction equipment totaling 1,857 for large scale execution 6,106 4,897 Invested Rs 4,900+ mn in plant and machinery in last 3 years 2,294 1,160 In-house Better control Eliminate avai
Slide 21: Tangible pool to drive execution and efficiencies: People
Tangible pool to drive execution and efficiencies Machine + People + Process No. of Employees & Expenses Over 80% of employees are skilled and highly skilled workers such as qualified 3,570 engineers, management professionals 2,894 5.9% 5.4% Net addition of 670+ in employees in FY19 1,497 4.0% 3.9%
Slide 22: Tangible pool to drive execution and efficiencies: Process
Tangible pool to drive execution and efficiencies Machine + People + Process Integrated business model with minimal sub- Preliminary project evaluation contracting for for better efficiency and cost optimization In-depth technical studies Successful implementation of SAP in FY19, the benefits of whi
Slide 23: Leading to successful evolution to prime road contractor
Leading to successful evolution to prime road contractor EPC 2,500 17,500 Rs mn Rs mn pre-qualification March 2013 March 2019 Revenue from 55% 24% Revenue share Revenue share sub-contracting FY14 FY19 Average ticket ~500 ~1,800 Rs mn Rs mn size FY14 FY19 Geographical 2 7 No. of States No. of States
Slide 24: Growth Strategy
Growth Strategy Sitarganj Project
Slide 25: Well placed to tap the huge opportunity in roads & highways
Well placed to tap the huge opportunity in roads & highways… Particular Length Planned outlay (kms) (Rs bn) Phase-I of Bharatmala Government’s highway - Economic Corridor Development 9,000 1,200 development programme - Inter-corridor and Feeder Route 6,000 800 under Bharatmala Phase 1 and other sche
Slide 26: As well as new infrastructure segments
…As well as new infrastructure segments Government is focused on improving Worked on water the water infrastructure in the country - pipeline projects Water Infra nearly 60 crore Indians face high to in the state of extreme water stress Rajasthan India plans to construct 100 new Has bagged a airport
Slide 27: Historical Financials
Historical Financials Kaithal Project
Slide 28: Robust growth
Robust growth Financials in Rs mn Revenue EBITDA Profit After Tax (PAT) 3,032 1,236 20,098 13,927 2,081 842 10,560 1,244 534 FY17 FY18 FY19 FY17 FY18 FY19 FY17 FY18 FY19 EBITDA Margin PAT Margin Earning per share (Rs) 18.96 14.9% 15.1% 6.1% 6.1% 6.1% 15.39 11.8% 9.88 FY16 FY17 FY19 FY17 FY18 FY19 FY
Slide 29: Lean balance sheet, healthy return ratios
Lean balance sheet, healthy return ratios Working capital cycle (Days) Return on Capital Employed 40% FY 17 FY 18 FY 19 32% 32% Debtor Days 36 51 69 Inventory Days 41 52 46 Creditor Days 23 51 69 Net WC Days 54 52 46 FY17 FY18 FY19 Debtors Days is calculated as Average Trade Receivables (excl. ret
Slide 30: Profit and loss statement
Profit and loss statement Standalone Consolidated (Rs mn) FY19 FY18 YoY FY19 FY18 YoY Revenue from operations 20,098 13,927 44.3% 20,145 13,927 44.6% Cost of material consumed 8,919 5,462 63.3% 8,919 5,462 63.3% Contract and site expenses 6,665 5,475 21.7% 6,666 5,475 21.8% Employee expenses 1,191 7
Slide 31: Standalone balance sheet
Standalone balance sheet Rs mn Mar’19 Mar’18 Rs mn Mar’19 Mar’18 Share Capital 652 652 Fixed Assets incl. CWIP 4,585 4,200 Reserves 5,940 4,757 Other Financial Assets 120 142 Shareholders' Funds 6,592 5,409 Other Non Current Assets 437 316 Secured Loans 593 1,247 Total Non-Current Assets 5,141 4,658
Slide 32: Consolidated balance sheet
Consolidated balance sheet Rs mn Mar’19 Mar’18 Rs mn Mar’19 Mar’18 Share Capital 652 652 Fixed Assets incl. CWIP 4,588 4,200 Reserves 5,978 4,757 Other Financial Assets 120 142 Shareholders' Funds 6,630 5,409 Other Non Current Assets 265 316 Secured Loans 593 1,247 Total Non-Current Assets 4,972 4,6
Slide 33: Thank You
Thank You HG Infra Engineering Ltd Rajeev Mishra Rajeev.mishra@hginfra.com III Floor, Sheel Mohar Plaza, A-1, Tilak Marg, C-Scheme, Jaipur - 302001 Pareto Capital (Investor Relations) Pooja Dokania/ Arpit Gandhi pooja.dokania@paretocapital.in/ arpit.gandhi@paretocapital.in 210, B Wing, Kanakia Wall
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