Slide 1: Submission letter to stock exchanges
(ù G^y rRr luly 06, 2020 To To The Secretary, Listing Department The Manager, Listing Department BSE Limited National Stock Exchange of India Limited Phi roze Jeejeebhoy Towers, Exchange Plaza, 5th Floor, Plot No. C/1, ñ>lel Qlraol yglgl JLI UU!, lìv glvvl\/ R.lnrl¿ R:nrlr:-Krrrl: f-nmnlpv Ranrlra /
Slide 2: Gayatri Projects Limited Earnings Presentation Q4FY20
Gayatri Projects Limited Earnings Presentation Q4FY20
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. Introduction Slide No. 4 2. Impact of COVID-19 Slide No. 5 7. Explanation to Notes to Accounts Slide No. 6 - 9 3. FY20 Financial Highlights Slide No. 10 - 14 5. Order Book Diversification & Top work order status update Slide No. 15 - 17 6. FY21 Guidance Slide No. 18 6. Deleveraging & Monet
Slide 5: GPL: Amongst India's leading Asset-Light EPC Companies
GPL: Amongst India’s leading Asset – Light EPC Companies One of India’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 segm
Slide 6: Impact of Covid-19 Pandemic
Impact of Covid – 19 Pandemic Operational Impact Financial Impact Outlook • Executions across the • Profitability of Q4FY20 was • In Q1FY20 company expects project sites were impacted on account of execution to remain at 50%- temporarily suspended from interruption in execution 60% due to shortage o
Slide 7: Notes to Account - Snapshot
Notes to Account - Snapshot Note 6 7 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 8: Notes to Account - Snapshot
Notes to Account - Snapshot Note 8 9 Description Contract Advances (loan): Exposure to Sai Maatarini Tollways Limited (SMTL) – In the ordinary course of (Subsidiary of associate company – GHL). The company business, the company had given has to receive an amount of INR 245cr towards EPC contract adv
Slide 9: Notes to Account - Snapshot
Notes to Account - Snapshot Note 10 11 Description Receivables from Western UP Tollways Advance to Suppliers, Sub Contractors (erstwhile associate company). EPC Cost – given in the normal course of business 36.2 cr. This amount is receivable from the erstwhile associate company against the EPC works
Slide 10: Notes to Account - Snapshot
Notes to Account - Snapshot Note 12 Description Gayatri Highway Loan Guarantee - Exposure including interest – 125 cr GPL & GHL jointly & severally agreed to repay the loan availed by GHL amounting to INR 124 cr along with interest in 12 monthly instalments commencing from May 2019. The entire amoun
Slide 11: Operational and Financial Snapshot: Q4 & FY20
Operational and Financial Snapshot: Q4 & FY20 Projects Execution Status • Varanasi projects (4 NHAI orders, Originally INR 3318 cr and descoped to INR 3091 cr size) are running significantly behind schedule, primarily due to land acquisition delays. As a result, the company is booking significantly
Slide 12: FY20 (YoY) - Financial Performance
FY20 (YoY)– Financial Performance Revenue (INR Mn) EBITDA (INR Mn) PBT (INR Mn) & EBITDA Margin Key Highlights 34,631 34,273 15.7% 12.4% • Revenue – Muted growth, execution 2,357 impacted due to prolonged monsoon and 5,450 lockdown restrictions imposed in March 4,266 2020 551 • EBITDA margins signif
Slide 13: Continuously Improving Balance Sheet
Continuously Improving Balance Sheet Long term debt reduced by INR 2.3 bn reducing the default risk. The Company continues to deliver on EPC model. EBITDA to CFO company was also successfully able to raise another INR 2 bn in short term conversion remains high even during the difficult times of the
Slide 14: Q4 & FY20 Snapshot
Q4 & FY20 Snapshot INR Mn Q4FY20 Q4FY19 YoY(%) FY20 FY19 YoY(%) Revenue 9,102 11,511 -21% 34,273 34,631 -1% Expenses 8,561 9,876 -13% 30,007 29,182 3% EBITDA 541 1,635 -67% 4,266 5,450 -22% EBITDA Margin 5.9% 14.2% 12.4% 15.7% Depreciation 323 168 92% 909 659 38% Finance Cost 847 526 61% 2,857 2,513
Slide 15: Significant Deleveraging
Significant Deleveraging Net Debt/Equity (x) Net Debt (INR Mn) 2.38 2.51 18,612 16,337 17,399 17,016 2.06 15,443 [VALUE]^ 1.52 [VALUE]* 1.16 FY15 FY16 FY17 FY18 FY19 FY20 FY15 FY16 FY17 FY18 FY19 FY20 Debt Maturity Profile (INR MN) Working Capital Days 2,299 1,986 2,030 95 105 78 78 64 62 1,111 FY15
Slide 16: Order Book: Current Book to Bill of 3.8x
Order Book : Current Book to Bill of 3.8x De-Risked Order Book (INR Bn) Geographical Diversification GPL’s Growth in EPC order book over the last 5 years Jharkhand Others Gujarat 2% 3% 163 3% 132 130 Uttar Pradesh 129 Karnataka 21% 4% 92 [CATEGORY NAME] Bihar 48 6% FY15 FY16 FY17 FY18 FY19 FY20 Jamm
Slide 17: Top Work Orders - Status Update - Q4FY20
Top Work Orders – Status Update – Q4FY20 Contract Balance work as on Mobilized on Revenue Expected Completion of Project Name Location Value (INR 01.4.2020 (INR Cr) Site Booking Start Project Cr) Purvanchal Expressway Package 1 Eastern UP 1,483 1048 Yes Q3 19 Q1 22 Purvanchal Expressway Package 2 Ea
Slide 18: Top Work Orders - Status Update - Q4FY20
Top Work Orders – Status Update – Q4FY20 Contract Balance work as on Mobilized Revenue Expected Completion of Project Name Location Value 01.4.2020 (INR Cr) on Site Booking Start Project (INR Cr) Nagpur - Mumbai Expressway Shiridi, MH 1,312 1106 Yes Q1 20 Q4 22 6 Lane Tunnel at Khambataki Ghat Satar
Slide 19: FY21: Guidance
FY21: Guidance FY21 Guidance (INR Mn) Order Inflow INR 30 - 40 billion Revenues 0% - 5% Growth EBITDA Margin 14% - 15% 18
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+ GOI scheme for monetisation of under litigation arbitral awards against the Bank Guarantees INR 2-3 Bn+ Internal Accruals/Other Initiatives INR 1-2 Bn+ Total expected cashflow in 6-12 month INR 4
Slide 21: 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 22: Appendix
Appendix
Slide 23: Awards & Claims
Awards & Claims Different arbitration tribunals/courts have awarded GPL, a total of INR 7.5 AWARDS INR 7.5 Bn+ Bn+, towards disputed receivables from its EPC clients. In addition, GPL has a net exposure to CLAIMS INR 6.7 Bn+ outstanding claims of INR 6.7 Bn+ in different arbitral tribunals/courts. 2
Slide 24: Monetisation of stake in Power Asset Complete
• The company concluded the sale of its 5.95% stake in power assets of Monetisation of stake in Power Asset Complete 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 l
Slide 25: 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 26: Balance Sheet
Balance Sheet All figures in INR Million ASSETS (INR Mn) FY20 FY19 FY18 EQUITY AND LIABILITIES (INR Mn) FY20 FY19 FY18 EQUITY NON-CURRENT ASSETS (a) Equity Share capital 374 374 374 (a) Property Plant & Equipment 3,942 3,763 3,350 (b) Other Equity 9,049 12,922 10,856 (b) Capital Work in Progress 109
Slide 27: Board of Directors
Board of Directors Promoter and Non-Executive Chairperson, over 25 years of experience in the T. Indira Reddy 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 28: 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 29: 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 30: Contact Details
Contact Details Sheetal Khanduja V V Chandra Sekhar Go India Advisors Gayatri Projects Limited +91 9769364166 Tel: +91 40 23310330/23314284/4296 sheetal@goindiaadvisors.com Email: vvcs@gayatri.co.in Ankit Toshniwal Chetan Sharma Go India Advisors Gayatri Projects Limited +91 7976749036 Tel: +91 40 2