KEC International Ltd. · NSE:KEC
KEC International — Investor Presentation (November 2021)
41 slides from KEC International's investor presentation, Nov 1, 2021
Slide 1: KEC International Limited Corporate Presentation
KEC International Limited Corporate Presentation 1 November 2021 Power T & D Railways Civil Solar Smart Infra Oil & Gas Cables Pipelines
Slide 2: Disclaimer
Disclaimer This presentation may include statements which may constitute forward-looking statements. All statements that address expectations or projections about the future, including, but not limited to, statements about the strategy for growth, business development, market position, expenditures,
Slide 3: Contents
RPG Group Page 04-05 KEC International Business Overview Page14-37 Page 06-10 Leadership Team Page 11-13 Industry Overview Management Team Page39-40 Page 14-17 Contents Business Overview Page 18-27 Financial Overview Page 28-35 Environmental, Social and Governance (ESG) Page 36-40 3
Slide 4: RPG Group
KEC RPG Group ay Power T&D Railways Civil Solar Smart Infra Oil & Gas Cables Pipelines
Slide 5: RPG Group: Powered by Passion, Driven by Ethics
RPG Group: Powered by Passion, Driven by Ethics Founded by Shri RP Goenka in 1979 One of India’s fastest growing conglomerates Turnover in excess of USD 4 billion 20,000+ employees Footprint in 105+ countries KEC acquired by RPG Group in 1982 KEC RPG Life Raychem Harrisons CEAT Zensar Malayalam Inte
Slide 6: KEC International
KEC KEC International Power T&D
Slide 7: KEC Overview
KEC Overview 9000+ 7+ DECADES OF EXPERIENCE & EXPERTISE EMPLOYEES 35+ DIVERSE NATIONALITIES FOOTPRINT IN 105+ $1.8 COUNTRIES BILLION GLOBAL EPC MAJOR ONGOING PROJECTS IN 30+ 40%+ BUSINESS COUNTRIES OVERSEAS 7
Slide 8: KEC Overview
KEC Overview • Global infrastructure EPC major • FY21 Sales: Rs. 13,114 crore (USD 1.8 billion) • Eight manufacturing facilities across India, Dubai, Brazil and Mexico Footprint in 105+ countries across the globe Central Asia Americas Middle Oceania Africa East India & South Asia EPC Footprint count
Slide 9: Overview (contd.)
Overview (contd.) Sustained leadership in Power Transmission EPC • Indian multinational infrastructure EPC major • Over 7 decades of experience; presently executing 250+ projects Diversifying to mitigate risk • Diversified across businesses and geographies • Footprint in 105+ countries across 6 cont
Slide 10: KEC's Expansion into New Verticals
KEC’s Expansion into New Verticals 10
Slide 11: Leadership Team
KEC Leadership Team
Slide 12: Board of Directors
Board of Directors H. V. Goenka Chairman Vimal Kejriwal A. T. Vaswani D. G.Piramal G. L. Mirchandani M.S. Unnikrishnan MD & CEO Director Director Director Director Nirupama Rao R. D. Chandak S. M. Trehan Vikram Gandhi Director Director Director Director 12
Slide 13: Management Team
Management Team Vimal Kejriwal Managing Director & CEO Rajeev Agarwal Neeraj Nanda Anand Kulkarni Kaushal Kodesia Manjit Singh Sethi Chief Financial Officer President – South Executive Director – Executive Director – Executive Director – Asia (T&D, Solar & Business Operations Railways Cables Smart I
Slide 14: Industry Overview
KEC Industry Overview Power T&D
Slide 15: Industry Outlook: Transmission & Distribution (T&D)
Industry Outlook: Transmission & Distribution (T&D) INDIA • Last mile electrification; 24x7 Power for All • Augmentation of transmission networks; addition of 1,00,000+ ckm of TLs & T&D Capex – FY2016-40 ($Bn) 2,90,000+ MVA of transformation capacity expected between 2017-22 Region 2016-25 2026-40 S
Slide 16: Industry Outlook: Cables and Railways
Industry Outlook: Cables and Railways CABLES • Annual Indian market ~ Rs. 20,400 crore p.a. (USD 3.1 billion) • Strong demand driven by power sector, real estate and industrial activity • India’s aggressive plans for power sector, driving growth • Demand for improved network quality expected to impr
Slide 17: Industry Outlook: Civil, Smart Infra, and Solar
Industry Outlook: Civil, Smart Infra, and Solar CIVIL • Opportunities in the domains of smart cities, industrial corridors & infrastructure-linked Real Estate development • Promising outlook on residential sector, owing to increase in demand and Affordable & Mass Housing schemes • Opportunities unde
Slide 18: Business Overview
KEC Business Overview Power T&D
Slide 19: Transmission & Distribution (T&D)
Transmission & Distribution (T&D) • One of the largest Power T&D EPC companies; footprint across 70 countries • Global leadership with experience of 7+ decades • Integrated solutions on turnkey basis • Transmission Lines up to 1,200 kV 765 kV Fatehgarh-Bhadla Transmission Line for a private • Large
Slide 20: Transmission & Distribution (T&D) (contd.)
Transmission & Distribution (T&D) (contd.) SAE Towers, USA Wholly owned subsidiary • Leading manufacturer of steel lattice transmission towers in the Americas • 9+ decades of rich and diverse experience in the region • Executing EPC works in Brazil & 500 kV Sapeaçu - Poções III Transmission Line, Br
Slide 21: In-house capabilities for turnkey solutions
In-house capabilities for turnkey solutions Design & Engineering • In-house design centers with 275+ engineers across eight centres in India, the Middle East and Americas • >60 years library of transmission lines design database, including towers, hybrid poles and monopoles; expertise across designi
Slide 22: Railways
Railways • Currently executing 30+ projects; electrified 30% of the Indian Railway network till date • Complete turnkey solutions provider in the railway infrastructure EPC space • Overhead Electrification systems • Signalling & Telecommunication systems for outdoor and indoor installation including
Slide 23: Civil
Civil • Focus on construction of factories, warehouses, residential buildings, commercial complexes, data centres, airports, metros, water pipelines and water treatment plants • Providing services in an area dominated by small unorganised players and few large companies • Established as a preferred
Slide 24: Solar
Solar • Capabilities to execute large scale projects >150 MW • Significant experience in Single Axis Tracker implementation • Proficiency in Design, project feasibility analysis across large-scale Solar Photovoltaic Power plants, backed by project management & execution capabilities • Supply/sourcin
Slide 25: Smart Infra
Smart Infra • Launched Smart Infra vertical in FY 2018-19 • Focus on Smart Cities & Communication, Smart Grid and Smart Mobility • Business aligned with Government of India’s agenda of enhancing India’s digital infrastructure and building 100+ smart cities Command and Control Centre at Aurangabad Sm
Slide 26: Oil & Gas Pipelines
Oil & Gas Pipelines • KEC launched the Oil and Gas Pipelines EPC business in line with the Government’s thrust in the sector and our strategy to diversify the business portfolio into adjacencies. • The business focusses on the construction of Oil & Gas cross-country pipelines in India as well as in
Slide 27: Cables
Cables • Extensive range of cables & turnkey cabling solutions offered in 30+ countries • Two fully integrated facilities, manufacturing a wide range of Power (HT, LT and EHV up to 220 kV), Control & Instrumentation, Telecom, Solar, Railway Signalling Cables and Railway Contact & Catenary Conductors
Slide 28: Financial Overview
KEC Financial Overview Power T&D
Slide 29: Order Intake & Order Book
Order Intake & Order Book Order Intake - YTD FY22 Order Book - YTD FY22 T&D : 28% SAE : 14% T&D: 46% SAE : 6% 17% 3%1% 21% 8% YTD Order Intake Order Book 42% Rs 7,386 Crs 2% Rs 21,167 Crs 52% 21% 33% T&D Civil Cables Railways T&D Civil Cables Railways Oil & Gas Others Domestic : 64% International :
Slide 30: Key Performance Highlights – Q2 FY22 (1/3)
Key Performance Highlights – Q2 FY22 (1/3) Consolidated Highlights for Standalone Highlights for Q2 FY22 v/s Q2 FY21 Q2 FY22 v/s Q2 FY21 ▪ Revenue of Rs. 3,587 Cr - Growth of 10% ▪ Revenue of Rs. 3,357 Cr - Growth of 18% ▪ EBITDA Margin at 7.1% against 9.0% ▪ EBITDA Margin at 9.4% against 9.7% ▪ Int
Slide 31: Key Performance Highlights – H1 FY22 (2/3)
Key Performance Highlights – H1 FY22 (2/3) Consolidated Highlights for Standalone Highlights for H1 FY22 v/s H1 FY21 H1 FY22 v/s H1 FY21 ▪ Revenue of Rs. 6,127 Cr - Growth of 12% ▪ Revenue of Rs. 5,695 Cr - Growth of 20% ▪ EBITDA Margin at 6.7% against 8.9% ▪ EBITDA Margin at 9.5% against 10.3% ▪ In
Slide 32: Key Performance Highlights – Q2 & H1 FY22 (3/3)
Key Performance Highlights – Q2 & H1 FY22 (3/3) ❑ Achieved YTD Order intake of Rs 7,386 Cr with a robust growth of ~70% over last year ▪ Order Intake momentum continues in International T&D with significant orders in Middle East and Americas ▪ Expanded international footprint with our first T&D EPC
Slide 33: Profit & Loss Highlights (Consolidated)
Profit & Loss Highlights (Consolidated) (₹ crore) Q2 H1 Particulars Growth Growth FY22 FY21 FY22 FY21 (Y-o-Y) (Y-o-Y) Revenues 3,587 3,258 10% 6,127 5,464 12% EBITDA 253 293 -14% 413 488 -15% EBITDA Margins 7.1% 9.0% 6.7% 8.9% (+) Other Income 3 7 5 14 (-) Depreciation 39 37 77 76 (-) Interest 73 67
Slide 34: Profit & Loss Highlights (Standalone)
Profit & Loss Highlights (Standalone) (₹ crore) Q2 H1 Particulars Growth Growth FY22 FY21 FY22 FY21 (Y-o-Y) (Y-o-Y) Revenues 3,357 2,844 18% 5,695 4,734 20% EBITDA 315 276 14% 540 485 11% EBITDA Margins 9.4% 9.7% 9.5% 10.3% (+) Other Income 3 7 6 16 (-) Depreciation 30 31 60 62 (-) Interest 64 62 3%
Slide 35: KEC: Equity Share Information
KEC: Equity Share Information Year-End Market Capitalisation (Rs. Crore) Equity Share Information 12000 • Share Price (1 Nov 2021): Rs. 474.00 / share 10562 10200 • Market Cap (1 Nov 2021): Rs. 12,186 crore 10000 • Financial Year – April to March • Listed on Indian Stock Exchanges 8000 7706 • Bloomb
Slide 36: Environmental, Social and Governance (ESG)
Environmental, Social and Governance (ESG) 36
Slide 37: Green Portfolio (1/2)
Green Portfolio (1/2) Our portfolio of businesses promote environment sustainability by efficient usage of natural resources TRANSMISSION & DISTRIBUTION RAILWAYS • Effective way of transporting • More efficient than road in terms energy with maximum of energy efficiency and land efficiency and minim
Slide 38: Green Portfolio (2/2)
Green Portfolio (2/2) Our portfolio of businesses promote environment sustainability by efficient usage of natural resources SOLAR SMART INFRA • Construction of large solar- • Developing Smart Cities to based power generation encourage efficient use of resources plants, which have one of the lowest
Slide 39: Commitment to ESG
Commitment to ESG KEC is committed to delivering excellence and outperformance with unwavering focus on embedding sustainable practices towards improving Environment, Society, Safety and Governance Strategic ESG Pillars ESG Focus Areas Unleash Enabling environment for people to Human Capital Diversi
Slide 40: Sustainability Roadmap
Sustainability Roadmap Happiness Diversity & Occupational Corporate Quotient Inclusion Heath & Safety Social Responsibility Increase Happiness Increase in diversity Work towards the Reach 2 lac CSR Quotient to 85% by 25% by FY26 goal of achieving beneficiaries by FY by FY26 zero accidents 26 Water P
Slide 41: Thank You
THANK YOU Global Footprint in 100+ countries* *Includes EPC and Supply Follow us on: Registered Office RPG House, 463, Dr. Annie Besant Road, Worli, Mumbai - 400 030. Phone: +91-22-6667 0200 Email: kecindia@kecrpg.com www.kecrpg.com
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