Slide 1: Covering letter to stock exchanges
NRC KNR Constructions Limited. Date: 14 August 2017 Ref: KNRCL/SD/ 2017/83 & 84 To To Dept. of Corporate Services, National Stock Exchange of India Limited BSE Limited “Exchange Plaza”, PJ Towers, Dalal Street, Bandra Kurla Complex, Fort, MUMBAI - 400001 Bandra (E), MUMBAI - 400051 Fax: +91 — 22- 22
Slide 2: Investor Presentation August 2017
AUGUST 2017 KNR Constructions Limited Investor Presentation
Slide 3: Disclaimer
2 KNR Constructions Limited Disclaimer This presentation and the accompanying slides (the “Presentation”), which have been prepared by KNR Constructions Limited (the “Company”), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purcha
Slide 4: Key Highlights & Result Update
3 KNR Constructions Limited KEY HIGHLIGHTS & RESULT UPDATE
Slide 5: Standalone Financial Highlights
4 KNR Constructions Limited Standalone Financial Highlights Revenue (Rs. Million) * EBITDA (Rs. Million) PAT (Rs. Million) +59% +93% +124% 4,808 845 676 3,032 437 302 Q1 FY17 Q1 FY18 Q1 FY17 Q1 FY18 Q1 FY17 Q1 FY18 * Revenue from operations for the quarter ended 30th June, 2017 includes Rs. 168 mill
Slide 6: Standalone Financial Results – Q1FY18
5 KNR Constructions Limited Standalone Financial Results – Q1FY18 Rs. Million Q1 FY18 Q1 FY17 YoY Net Sales 4,637.4 3,036.4 Other Operating Income * 170.1 -4.7 Total Revenue 4,807.5 3,031.7 59% Operating Expenses 3,440.7 2,172.2 Employees Expenses 148.1 128.7 Other Expenditure 373.5 293.9 EBITDA 845
Slide 7: Key Updates
6 KNR Constructions Limited Key Updates Signed a share purchase agreement to sell their equity stake in two Road BOT assets • Company along with Patel Engineering Limited (PEL) signed a share purchase agreement to sell entire equity stake in two Road BOT assets viz. Patel KNR Infrastructure Limited
Slide 8: Business Overview
7 KNR Constructions Limited BUSINESS OVERVIEW
Slide 9: Business Overview
8 KNR Constructions Limited Business Overview One of the leading companies providing Engineering, Procurement and Construction (EPC) services Major Projects in Roads & Highways – one of the fast growing sector Established presence in Irrigation and Urban Water Infrastructure Management VISION 20 yea
Slide 10: Transformation
9 KNR Constructions Limited Transformation 2016 2015 Crossed Revenue of Rs. 10,000 mn 2013 2/4 laning of on Standalone Basis Madurai – Ramanathapuram 2012 3rd BOT Toll project worth Section of NH-49 in the State of Rs.9,005 mn in Tamil Nadu under Kerala 2010 Early completion of Biggest Road NHDP Pha
Slide 11: Management
10 KNR Constructions Limited Management Mr. K. Narasimha Reddy – Founder Promoter & Managing Director Over 48 years of experience in the Highway sector Started career in 1968 and engaged in the business of undertaking civil and mechanical contracts Extensive knowledge and experience in multi project
Slide 12: Supported by Professional Team
11 KNR Constructions Limited Supported by Professional Team Mr. T.L. Verma Mr. D. Tirupathi Reddy (Vice President - Projects) (GM – Projects) A Bachelor of Engineering (BE) from MITS Gwalior (MP) with Over 24 years of rich experience in various fields of Civil Over 35 years of total experience with
Slide 13: Key Business Strengths
12 KNR Constructions Limited KEY BUSINESS STRENGTHS
Slide 14: Significant Experience and Strong Track Record in Timely Execution
1 SIGNIFICANT EXPERIENCE AND STRONG TRACK RECORD IN TIMELY EXECUTION OF PROJECTS KNR Constructions Limited 13 Project Execution Top management’s active involvement at all stages of Project execution o Selection of Major Raw Material o Selection of construction Camp location Faster Decision making to
Slide 15: Pan India Project Execution Capability
14 KNR Constructions Limited Pan India Project Execution* Capability Bihar Arunachal Pradesh No of Projects 1 No of Projects 1 Uttar Pradesh Value of Projects Rs. 1,411 mn Value of Projects Rs. 920 mn No of Projects 4 Value of Projects Rs. 1,704 mn Assam No of Projects 2 Madhya Pradesh Value of Proj
Slide 16: Project Execution Highlights
15 KNR Constructions Limited Project Execution Highlights Cement Concrete Road • Completed Widening to 4/6 lanes and Strengthening of Existing two lane carriageway of NH – 5 in the State of Orissa for a length of 56.0 Kms with total contract value of work is Rs 2,310 mn • Existing road was widened &
Slide 17: World Class Construction Equipment
2 WORLD CLASS CONSTRUCTION EQUIPMENTS USE OF RIGHTRIGHT TOOLS FOR WORK KNR Constructions Limited 16 In-house Construction Equipment Sl. No. Name Of The Machinery Qty 1 Tippers & Tankers 634 2 Excavators 180 3 Compactors 79 4 Concrete Mixers And Pumps 94 5 Loaders 44 6 Pavers 35 7 Crushers 14 8 Grade
Slide 18: In-house Team of 1,017 Qualified Employees
3 IN-HOUSE TEAM OF 1,017 QUALIFIED AND EXPERIENCED EMPLOYEES LED BY PROVEN MANAGEMENT TEAM KNR Constructions Limited 17 In-house Execution Team 1% 35% 36% Project Engineering Site Supervision Site Engineers Equipment Operators Admin & Office Staff 6% 22%
Slide 19: Host of Marquee Clients
4 HOST OF MARQUE CLIENTS KNR Constructions Limited 18 Reputed Clientele National Andhra Pradesh Ministry of Hyderabad Karnataka Karnataka Road Highways Road Development Road Transport Growth State Highway Development Authority of Corporation & Highways Corridor Improvement Corporation India (NHAI) (
Slide 20: BOT Portfolio
19 KNR Constructions Limited BOT PORTFOLIO
Slide 21: BOT Portfolio – Annuity Projects
20 KNR Constructions Limited BOT Portfolio – Annuity Projects Particulars Patel KNR Infrastructures limited (PKIL)^ Patel KNR Heavy Infrastructures Limited (PKHIL)^ Stake 40% 40% Project Details Project Type Road-Annuity Road-Annuity State Karnataka Telangana JV Partner PEL PEIL Client NHAI NHAI Len
Slide 22: BOT Portfolio – Toll Projects
21 KNR Constructions Limited BOT Portfolio – Toll Projects Particulars KNR Walayar Tollways Private Limited KNR Muzaffarpur Barauni Tollway Private Limited Stake 100% 51% Project Details Project Type Road-Toll Road-Toll State Kerala Bihar JV Partner - JKM Infra Project Ltd Client NHAI NHAI No of Lan
Slide 23: Walayar–Vadakkancherry Project
22 KNR Constructions Limited Walayar –Vadakkancherry Project KNR Walayar Tollways Private Limited is a wholly owned subsidiary of KNR Constructions Limited, incorporated as an SPV for execution of Walayar Road Project Provisional Completion Certificate for 100% of Project length has been issued for
Slide 24: Muzaffarpur - Barauni Project
23 KNR Constructions Limited Muzaffarpur - Barauni Project KNR Muzaffarpur Barauni Tollway Private Limited is a Step down subsidiary of KNR Constructions Limited, incorporated as an SPV for execution of Muzaffarpur -Barauni Road project on BOT (Toll) basis Provisional Completion Certificate for 75%
Slide 25: Order Book & Business Strategy
24 KNR Constructions Limited ORDER BOOK & BUSINESS STRATEGY
Slide 26: Order-book Break-up
25 KNR Constructions Limited Order-book Break-up Other 99% State Govt. 37% Others Captive 2% 0% International Order* 6% Central Govt. 55% Captive State Govt. Central Govt. International Order* Others ORDER BOOK OF RS. 33,388 MILLION AS ON 30TH JUNE 2017 * - Government of People's Republic Of Banglad
Slide 27: Order-book Highlights
26 KNR Constructions Limited Order-book Highlights Irrigation Key Projects Rs. mln Roads - Non 15% Captive Others Hubli – Hospet Section of NH - 63 6,674 85% 0% Roads - Madurai -Ramanathpuram Section of NH-49 3,815 Captive 0% Thiruvananthapuram Bypass 3,774 Rehabilitation and upgradation of Dindigul
Slide 28: Order-book: State-wise
27 KNR Constructions Limited Order-book: State-wise Madhya Pradesh Arunachal Pradesh No of Projects 3 No of Projects 1 Balance Value Rs. 1,153 mn Balance Value Rs. 464 mn Karnataka AP & Telangana No of Projects 8 No of Projects 9 Balance Value Rs. 7,370 mn Balance Value Rs. 5,338 mn Kerala Tamil Nad
Slide 29: Business Strategy
28 KNR Constructions Limited Business Strategy Focus on Projects involving Higher degree of engineering skills Focus on securing Continuously explores EPC contracts from growth opportunities reputed Clients and by forming strategic Concessionaire Joint Ventures (JVs) Capitalise on Execute all the Op
Slide 30: Financial Highlights
29 KNR Constructions Limited FINANCIAL HIGHLIGHTS
Slide 31: Standalone Financial Results
30 KNR Constructions Limited Standalone Financial Results Rs. Million FY17 FY16 YoY Net Sales 15,325.4 8,851.1 73% Other Operating Income 85.1 174.4 -51% Total Revenue 15,410.5 9,025.5 71% Operating Expenses 11,145.1 6,062.9 Employees Expenses 552.4 431.2 Other Expenditure 1,417.3 1,002.3 EBITDA 2,2
Slide 32: Standalone Balance Sheet
31 KNR Constructions Limited Standalone Balance Sheet Rs. Millions Mar-17 Mar-16 Rs. Millions Mar-17 Mar-16 NON-CURRENT ASSETS 9,567 7,222 EQUITY 8,955 7,377 Fixed Assets Equity Share capital 281 281 Property, plant and equipment 2,607 1,762 Other equity 8,674 7,096 Capital work-in-progress 15 59 61
Slide 33: Consolidated Financial Results
32 KNR Constructions Limited Consolidated Financial Results Rs. Million FY17 FY16 YoY Total Revenue 16,796 11,917 41% Operating Expenses 11,893 8,554 Employees Expenses 586 463 Other Expenditure 1,678 1,183 EBITDA 2,640 1,718 54% EBITDA margin 15.7% 14.4% Other Income 330 430 Depreciation 1,156 709
Slide 34: Consolidated Balance sheet
33 KNR Constructions Limited Consolidated Balance sheet ASSETS (Rs. Millions) Mar-17 Mar-16 EQUITY AND LIABILITIES (Rs. Millions) Mar-17 Mar-16 NON-CURRENT ASSETS 15,060 13,843 EQUITY 8,785 7,794 Property, plant & equipment 2,631 1,807 27 71 Equity Share capital 281 281 Capital work-in-progress Inve
Slide 35: Standalone Financial Highlights
34 KNR Constructions Limited Standalone Financial Highlights* Financial Year 2010 2011 2012 2013 2014 2015 2016^ 2017^ Rs. 7,125 Rs. 7,930 Rs. 7,505 Rs. 6,921 Rs. 8,348 Rs. 8,761 Rs. 9,025 Rs. 15,411 Turnover $118.6 $132.0 $125.0 $115.2 $139.0 $140.0 $136.1 $238.3 Rs. 1,121 Rs. 1,356 Rs. 1,338 Rs. 1
Slide 36: Standalone Financial Highlights
35 KNR Constructions Limited Standalone Financial Highlights Revenue & EBITDA (Margin %) EBITDA 15.7% 17.1% 17.8% 16.8% 15.1% 14.4% 16.9% 14.9% Margin (%) 15,411 8,348 8,761 9,026 7,125 7,930 7,505 6,921 EBITDA 2,296 1,121 1,356 1,338 1,164 1,258 1,261 1,529 Revenue 2010 2011 2012 2013 2014 2015 201
Slide 37: Standalone Net Working Capital Days
36 KNR Constructions Limited Standalone Net Working Capital Days 79 69 53 52 48 52 98 43 41 74 40 66 64 51 53 45 39 35 26 28 23 20 16 16 15 18 15 15 17 14 7 10 13 12 12 7 Mar-10 Mar-11 Mar-12 Mar-13 Mar-14 Mar-15 Mar-16 Mar-17 Jun-17 Inventory Debtors Creditors Net Working Capital
Slide 38: Shareholding Pattern as on 30th June 2017
37 KNR Constructions Limited Shareholding Pattern as on 30th June 2017 10.4% Shareholders Holding more than 1% of the Equity % to Equity (Other than Promoters) HDFC Mutual Fund 7.45% ICICI Mutual Fund 3.21% 28.3% DSP Blackrock Balance Fund 2.25% 57.4% HSBC Global Investment Fund 2.10% Franklin Mutua
Slide 39: Other Businesses: Irrigation & Water Management
38 KNR Constructions Limited Other Businesses Strong growth opportunity in development of Agricultural Infrastructure Execution of Irrigation & Water Supply Projects with Joint Venture Partners Executed 3 Projects in Telangana & 1 Project in Bihar Executed an Urban Water Infrastructure project in th
Slide 40: Project Gallery
39 KNR Constructions Limited PROJECT GALLERY
Slide 41: Completed Projects
40 KNR Constructions Limited Completed Projects Eturunagaram Bridge over river KNR Walayar Toll Road Godavari
Slide 42: Completed Projects
41 KNR Constructions Limited Completed Projects Walayar Toll plaza Muzaffarpur-Barauni Road Project
Slide 43: Under-Construction Projects
42 KNR Constructions Limited Under-Construction Projects Coimbatore Flyover Coimbatore Flyover
Slide 44: Under-Construction Projects
43 KNR Constructions Limited Under-Construction Projects Flyover in Madurai - Salem Flyover Ramanathpuram Section
Slide 45: Equipments
44 KNR Constructions Limited Equipments Salem work yard Tippers on site
Slide 46: Irrigation Projects
45 KNR Constructions Limited Irrigation Projects Palamurru lift Irrigation
Slide 47: Irrigation Projects
46 KNR Constructions Limited Irrigation Projects Palamurru lift Irrigation
Slide 48: For further information, please contact
47 KNR Constructions Limited For further information, please contact Company : Investor Relations Advisors : Strategic Growth Advisors Pvt. Ltd. KNR Constructions Ltd. CIN: U74140MH2010PTC204285 CIN: L74210DL1995PLC238364 Mr. Jigar Kavaiya / Mr. Kevin Shah Mr. K. Venkata Ram Rao (GM - Finance & Acco