Gayatri Projects Limited · NSE:GAYAPROJ
Gayatri Projects — Q1 FY2019 Earnings Presentation
28 slides from Gayatri Projects's earnings presentation, Aug 17, 2018
Slide 1: Intimation to stock exchanges: Q1 FY19 results presentation
~ GAyATRI 17th August, 2018 To, To, The General Manager, The Secretary, The Department of Corporate Relations, National Stock Exchange of India Ltd. The Bombay Stock Exchange Limited., th th 5 Floor, Exchange Plaza 25 Floor, Phiroz Jeejeebhoy Towers, Plot No.C/l, G Block Dalal Street, Mumbai - 400 0
Slide 2: India's Leading Pure Play EPC Company Q1FY19
India’s Leading Pure Play EPC Company Q1FY19
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: Agenda
Agenda 1. Gayatri Projects – An Introduction Slide No. 4 2. Q1FY19 Highlights Slide No. 5 & 6 3. Order Book Growth and Diversification Slide No. 7 4 4. Top 20 Orders – Status update Slide No No. 8 & 9 5. Medium Term Strategic Priorities and Guidance Slide No. 10 6. Other Strategic Updates Slide No.
Slide 5: GPL: Among India's Leading EPC Companies
GPL: Among India’s Leading EPC Companies One of India India’s s leading construction and infrastructure companies with dedicated focus on asset-light EPC work Business Segments 5 decades of experience in execution of major civil works, diversified across geographies & infrastructure segments o P
Slide 6: Q1FY19 – Strong Financial Performance
Q1FY19 – Strong Financial Performance Revenue (INR Mn) PAT (INR Mn) Q1FY19 Achievement 8,228 504 Revenue growth of 26% Y-o-Y 6,520 despite GST being excluded from the topline EBITDA Margin expansion of 234 451 bps due to key road projects moving 26% 12% to PQC stage (higher margin stage), GST ac
Slide 7: Q1FY19 – Strong Financial Performance
Q1FY19 – Strong Financial Performance INR Mn Q1FY19 Q1FY18 Change (%) Revenue 8,228 6,520 26% Expense 6,811 5,550 23% EBITDA 1 417 1,417 971 46% EBITDA Margin (%) 17.2% 14.9% Interest 626 524 20% Depreciation 160 127 26% Other Income 3 77 PBT 634 397 60% Tax 130 ( ) (55) PAT 504 451 12% EPS 3 3 6
Slide 8: Built a De-Risked and Strong Order Book
Built a De-Risked and Strong Order Book Growth in EPC order book over the last 5 years Only Pure Play EPC Order Book in peer group INR Bn 129 132 129 Leading market share of NHAI EPC Orders 92 Projects bid at 16% + EBITDA margins 55 48 5.2x book to bill supports strong growth potential RECEN
Slide 9: Top 20 Orders – Status Update
Top 20 Orders – Status Update All amounts in INR Cr GPL Balance Revenue GPL Contract Mobilised on Completion Package Location work as on Booking to Value Site Date 01.07.2018 Begin Purvanchal Expressway Package 1 Eastern UP 1483 - Under Process 3Q19 2Q22 Purvanchal Expressway Package 2 Eastern UP 12
Slide 10: Top 20 Orders – Status Update
Top 20 Orders – Status Update All amounts in INR Cr GPL GPL Balance Revenue Mobilised on Completion Package Location Contract work as on Booking to Site Date Value 01.07.2018 Begin R j Rajamunda d - Barkote B k t B k t Orissa Barkote, Oi 394 394 U d P Under Process 3Q19 2Q21 Kempwad Lift Irrigation
Slide 11: Medium Term Strategic Priorities and Guidance: FY19-FY21
Medium Term Strategic Priorities and Guidance: FY19-FY21 Strategic Priorities Strong Order Inflows… o Avg. Annual New Order Intake of INR 60 bn+ o Book to Bill to be maintained in excess of 3.5x Strengthen …Translating into Higher Growth… Maximise Asset Light Free Cash Medium Term Growth Guidance Bu
Slide 12: Q1FY19 – Other Updates
Q1FY19 – Other Updates Improved Credit Ratings De-merger De merger Completed • CARE Ratings upgraded credit rating for • Gayatri Highways began trading separate bank b k ffacilities iliti on bourses b ffrom JJune 28th, 2018 onwards d • Ratings upgraded from D to BB- with • Gayatri Highways houses al
Slide 13: 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 14: Appendix
Appendix
Slide 15: Strategy – Focusing on 'Asset Light' EPC segment
Strategy – Focusing on ‘Asset Light’ EPC segment Asset light EPC model Grow presence in core EPC segments o Pure EPC company with no asset- o Actively bid for quality projects in core heavy BOT or HAM project work. areas of expertise- roads, irrigation, o Diversified across geographies and industria
Slide 16: Spotlight on Asset-Light Model
Spotlight on Asset-Light Model 2012-2015 : GPL numbers depressed due to asset Core Construction Services business is a high ROCE investments business; At the bottom of cycle generated 18.2% 2016 onwards: Business restructuring and Shift In line with the Industry practice, Free cash flow from
Slide 17: Technology-Driven Execution
Technology-Driven Execution o Gayatri aims to be a Digital Pioneer in the construction industry o Leveraging cutting-edge technologies like IoT (Internet of Things) cloud-computing (Internet-of-Things), cloud computing etc. etc o Real-time tracking and reconciliation of project costs o Optimized uti
Slide 18: Digital Project Management System
Digital Project Management System Weighbridges Pl Plants C h Crushers Dump Trucks Heavy Machinery Material Tracking Machinery Tracking Project Reporting Web / Mobile Apps pp IoT Plant Unit IoT Vehicle Unit Real‐Time Reconciliation of Costs vs. Work‐Done 17
Slide 19: Digitization Roadmap
Digitization Roadmap Scale of Existing Pilot Operations: National 3 Highway 17 341 559 341,559 65 955 65,955 250 482,47 482 47 2 2,639,30 639 30 Projects 35,413 200 Cubic yards of Material Heavy- 2 Work reports Daily Project Concrete concrete transactions machines 2 $550 200 submitted users Plants p
Slide 20: Strong Execution Capabilities & a Diverse Range of Projects
Strong Execution Capabilities & a Diverse Range of Projects P j t executed Projects t d in i last l t 5 years Strong BG limits key competitive advantage Company’s existing BG limit provides additional No. of projects Value of contract o Company has existing BG limit of INR 37 bn Segment advantage to
Slide 21: Balance Sheet Strength Restored
Balance Sheet Strength Restored Net Debt/Equity (x) Working Capital Cycle 200 189 160 180 153 159 160 142 142 2.5 127 2.4 140 130 105 2.1 114 120 102 101 95 100 84 78 78 15 1.5 78 80 67 62 55 60 48 40 37 40 31 20 0 2013 2014 2015 2016 2017 2018 FY18 Receivable days Inventory Days Payable Days Workin
Slide 22: Balance Sheet
Balance Sheet All figures in INR Million ASSETS 31‐03‐2018 31‐03‐2017 EQUITY & LIABILITIES 31‐03‐2018 31‐03‐2017 Equity Non Current Assets Equity Share Capital 374 355 p y, Plant and Equipment Property, q p 3,350 , 3,093 , Other Equity 10 856 10,856 7 056 7,056 CWIP 241 Financial Asset Liabilites In
Slide 23: P&L
P&L INRMn FY2018 FY2017 Change (%) Revenue 29,123 21,154 38% Expense 27 387 27,387 20 365 20,365 34% EBITDA 4,677 3,234 45% EBITDA Margin % 16% 15% 7% Interest 2 394 2,394 2 014 2,014 19% Depreciation 547 432 27% Other Income 89 306 - PBT 1,825 1,095 67% Tax (55) 237 - PAT 1,881 704 167% EPS 11 4 16
Slide 24: Debt Maturity Profile
Debt Maturity Profile Debt Maturity Profile (INR MN) Total Debt – INR 17,016 Mn (US$ 250 mn) 2,772 Long Term 1,820 1,715 1,723 Debt, 46% Short Term Debt, 54% FY19 FY20 FY21 FY22 & Beyond
Slide 25: Board of Directors
Board of Directors Promoter and Non-Executive Chairperson, over 25 years of experience in the T. Indira Subbarami Reddy construction industry T. V. Sandeep Kumar Reddy Promoter and Managing Director, 20+ years of construction experience J Brij Mohan Reddy Executive Vice Chairman, Over 49 years of ex
Slide 26: Management Team - HQ
Management Team - HQ T Sandeep Reddy D Sitaram Managing Director Executive Vice President, Business Masters in Construction Engineering & Development Management from University of Michigan, Michigan USA In In-charge charge of evaluating new business units units, 20+ years of construction e
Slide 27: Management Team - Projects
Management Team - Projects K Sesha Reddy CH Ramakrishna Rao Senior Vice President, PMC Senior Vice President, Road Projects In-charge of project monitoring and controls Oversees road construction projects Previouslyy a Project j Head at L&T Masters in Construction management g from Birla
Slide 28: Contact Details
Contact Details V V Chandra Sekhar Gayatri Projects Limited Tel: +91 40 23310330/23314284/4296 @g y Email: vvcs@gayatri.co.in Sheetal Khanduja Go India Advisors +91 9769364166 sheetal@goindiaadvisors.com 27