Slide 1: Intimation to stock exchanges on investor presentation
\..0J GAyATRI 5th April, 2018 To, To, The General Manager, The Secretary, The Department of Corporate Relations, National Stock Exchange of India Ltd. The Bombay Stock Exchange Limited., 5th Floor, Exchange Plaza 25th Floor, Phiroz Jeejeebhoy Towers, Plot No. Cll, G Block Dalal Street, Mumbai - 400
Slide 2: Corporate Presentation April 2018
Corporate Presentation April 2018
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: Introduction to Gayatri Projects
Introduction to Gayatri Projects 3
Slide 5: India's Leading Road EPC Company
India’s Leading Road EPC Company One of India’s leading construction and infrastructure companies Business Segments with dedicated focus on EPC Core Business - EPC 5 decades of experience in execution of major civil works (Order Book: INR 120 Bn+) diversified across infrastructure segments Roads
Slide 6: Key Investment Highlights
Key Investment Highlights Strong presence in high growth construction sector Healthy and diversified order inflows with good revenue growth visibility Highly efficient operations with strong execution capabilities Strong Financial Position with significantly improving balance sheet Asset light busin
Slide 7: Strong Presence in High Growth Construction Sector
Strong Presence in High Growth Construction Sector INR 4 Trillion of new Road Projects Annual Opportunity of 3x of NHAI FY17 run rate Won New orders of INR 28 billion in last 2-3 GPL – A Key Beneficiary months Rehabilitation and Upgradation of Project Name Cuttack Angul Section of NH-42 Significant
Slide 8: Industry Leading Order Book; Diversified and growing
Industry Leading Order Book; Diversified and growing Industry Leading Order Book (As on 31 December 2018) Growth in EPC order book over the last 5 years 127 Rs Bn 129 124 127 92 79 59 55 48 Gayatri Peer 1 Peer 2 Peer 3 FY14 FY15 FY16 FY17 Q3FY18 Peers include PNC Infratech, Dilip Buildcon and Ashoka
Slide 9: Robust Road EPC Order Book
Robust Road EPC Order Book Client Wise Order Book State Wise Order Book BSRDC PD Raipur CCDMC/AP 10% 1% Mizoram 3% 2% Bihar AP 11% 4% Cuttak NHIDC 8% 4% PWD Mizoram 2% UP 33% Jammu 18% NHAI Odisha Nagaland 80% Maharashtra 17% 4% 3% 8 Copyright 2016 Gayatri Project Ltd
Slide 10: Highly Efficient Operations with Superior Execution Capabilities
Highly Efficient Operations with Superior Execution Capabilities Projects executed in last 5 years Strong BG limits key competitive advantage Company’s existing BG limit provides additional advantage to expand Segment No. of projects Value of contract Company order has existing book &BG limitfor s
Slide 11: Strong Financial Position with Significantly Improving Balance Sheet
Strong Financial Position with Significantly Improving Balance Sheet Significant Debt Reduction despite more than 50% YoY Leverage Ratios growth in revenue Gross Debt/Equity Gross Debt/Proforma Equity 2.8 o Gross debt outstanding as of 28th Feb, 2018 2.6 2.3 stood at Rs.2,028crores versus Rs.2,069
Slide 12: High Revenue Growth Visibility
High Revenue Growth Visibility Stable and robust EBITDA margins (1) o Strong revenue growth visibility • Historically order book to bill ratio 15.3% 15.5% maintained at c.4x 14.3% o Strong project execution skills 13.0% • Have maintained a strong execution rate of well over 20% historically FY15 FY1
Slide 13: Value Unlocking Through Business Restructuring
Value Unlocking Through Business Restructuring Power Assets (GEVL) Current Portfolio: 660MWx4 in partnership with Sembcorp Utilities, Singapore Super-critical technology units: More efficient plants with lower emissions Strategically located near sea-ports enabling logistics efficiency Stabl
Slide 14: Our Strategy – Focusing on 'Asset Light' EPC segment
Our Strategy – Focusing on ‘Asset Light’ EPC segment Asset light EPC model Grow presence in core EPC segments Pure EPC company with no BOT/ HAM Actively bid for quality projects in core areas of expertise- roads, irrigation, industrials Exposure to to diversified sectors Maintain a healthy book to b
Slide 15: Technology-Driven Execution
Technology-Driven Execution • Gayatri aims to be a Digital Pioneer in the construction industry • Leveraging cutting-edge technologies like IoT (Internet-of-Things), computer-vision, UAVs, cloud-computing etc. • Real-time tracking and reconciliation of project costs • Optimized utilization of plants
Slide 16: Digital Project Management
Digital Project Management Weighbridges Plants Crushers Dump Trucks Heavy Machinery Material Tracking Machinery Tracking Project Reporting Web / Mobile Apps IoT Plant Unit IoT Vehicle Unit DIGITAL PROJECT MANAGEMENT 15 Copyright 2016 Gayatri Project Ltd
Slide 17: Digital Project Management
Digital Project Management • Work Tracking • Daily Progress Reports • Real-time reconciliation of material and machinery inputs • Material Tracking • Digital Trip-sheets • Track & Trace all material movement • Machinery Tracking • Digital Log-sheets • Optimal allocation of machinery • Fuel Tracking
Slide 18: Co's Response to Key Market Concerns
Co's Response to Key Market Concerns Working capital cycle in-line with major industry peers and under 70 days Despite doubling of revenue; gross debt increased only by INR 2.8 bn; paid INR 7 bn of gross Working Capital Cycle would Stretch interest and have made investments worth INR 2.5bn – in
Slide 19: Appendix and Q3 Financials
Appendix and Q3 Financials 18
Slide 20: EPC - Roads
EPC - Roads Among Top Highway Current Projects Builders in India Completed Projects o Eastern Peripheral Expressway o 6154 Lane-Km of national highways o Six Lane Expressway o Expertise in both Asphalt and Concrete pavements o 4 National Highways around Varanasi o Notable projects: o 270km total len
Slide 21: EPC - Irrigation
EPC - Irrigation o Current Projects Completed Projects o Nagarjuna Sagar Project o Velugonda Project o Awarded Gold Medal from Prime Minister o 63m Concrete Dam o World’s largest Masonry Dam o Kempwad Lift Irrigation, Karnataka o Kanithi Balancing Reservoir o Kaleshwaram Project – 50 TMC reservoir o
Slide 22: EPC - Mining
EPC - Mining Pioneer in advanced underground mining in India Current Clients Both projects being executed under the MDO (Mine-Developer- Operator) model No risks related to off-take and coal prices Technology Huge opportunity for Mining EPC Players as Coal India targets Entered into a partnership wi
Slide 23: EPC - Industrial
EPC - Industrial 22 Copyright 2016 Gayatri Project Ltd
Slide 24: EPC - Others
EPC - Others Notable Projects o Land Development of Navi Mumbai International Airport o Iqbalgarh Vadodara Section of Western Dedicated o Freight Corridor (DFC) o Water Distribution Network at Aizwal o Kakinada Port – Approach berths o Park Hyatt Hyderabad o 5-Star Deluxe Luxury Hotel o Other malls
Slide 25: Power Plant Assets
Power Plant Assets o Incorporated in 2008, Gayatri Energy Ventures Ltd is a Plant 1 (TPCIL) Plant 2 (SGPL) wholly owned subsidiary of Gayatri Projects Capacity 1,320 Mw (2x660 Mw) 1,320 Mw (2x660 Mw) o Current portfolio in partnership with SembCorp Utilities, Singapore: Near Krishnapatnam port, Near
Slide 26: Highway Assets
Highway Assets Gayatri Infra Ventures Ltd, a subsidiary of Gayatri Projects Concession GIVL Length Ltd dedicated towards development of road assets Annuity Based Projects COD Period Stake (kms) (Years) Demerged into “Gayatri Highways” Gayatri Jhansi Roadways 51% Jun 2010 20 50.0 o To be separate
Slide 27: Our competitive strengths
Our competitive strengths Established track record in executing different types of construction 1 and EPC projects 2 Diversified and robust growing order book Strong in-house designing and engineering capabilities 3 complemented by state of art fleet of construction equipment 4 Significant Bank Guar
Slide 28: Key recent announced order wins
Key recent announced order wins Date Client Segment State Contract Value (Rs Mn) Mar-16 DFCCIL Railways Gujarat 4,250 Apr-16 ECL Mining West Bengal 4,000 Apr-16 NHIDCL Roads Nagaland 3,400 May-16 BCCL Mining Jharkhand 3,250 Jun-16 MEIL-HES JV Irrigation Telangana 7,000 Jun-16 CIDCO Others Maharashtr
Slide 29: 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 30: Key management personnel
Key management personnel Mr. T. V. Sandeep Kumar Reddy Mr. J. Brij Mohan Reddy Managing Director Vice Chairman Presently leads the Gayatri Group. He has done his Masters in Has been with the Group since1989. He is an Engineering Construction Engineering and Management from the Graduate from Berkley
Slide 31: Q3FY18 Highlights
Q3FY18 Highlights Operational Highlights o Billing commenced for almost all projects won till September 2017 o 3rd Quarter revenues partly impacted due to heavy monsoons in October o Order book of c.INR 127 bn as on 31 December Order Book o Won new orders of over INR 28 bn in last 2 months o Investm
Slide 32: Key Financial Highlights
Key Financial Highlights Revenue (INR Mn) EBITDA (INR Mn) and Margins (%) PAT (INR Mn) 9,039 15.5% 466 15.8% 1,404 5,205 825 133 Q3FY17 Q3FY18 Q3FY17 Q3FY18 Q3FY17 Q3FY18 74% 70% 249% ▪ Revenues higher due to ▪ Maintaining strong EBITDA margin ▪ Q3 PAT lower due to higher commencement of billing at
Slide 33: Results Update – Q3FY18
Results Update – Q3FY18 INR Mn (except as stated) Q3FY18 Q3FY17 Q2FY18 Y-o-Y % Revenue 9,039 5,205 4,232 74% Expense 8,454 4,995 4,161 69% EBITDA 1,404 825 747 70% EBITDA Margin 15.5% 15.8% 17.6% -2% Interest 691 489 541 41% Depreciation 129 126 135 2% Other Income 45 12 9 269% PBT 629 222 81 184% T
Slide 34: Results Update – 9MFY18
Results Update – 9MFY18 INR Mn (except as stated) 9MFY18 9MFY17 FY17 Y-o-Y % Revenue 19,791 13,029 21,154 52% Expense 18,816 12,734 20,365 48% EBITDA 3,122 1,979 3,234 58% EBITDA Margin 15.8% 15.2% 15.3% 4% Interest 1,756 1,352 2,014 30% Depreciation 391 332 432 18% Other Income 132 97 306 35% PBT 1
Slide 35: Key milestones
Key milestones Founded by Dr. T Subbarami Reddy in 1963 Initially started off with irrigation and earth-works Led by T Sandeep Reddy from 1990 Diversified into roadworks and other forms of EPC in 1990 Started developing PPP highway projects in 2006 Started developing power plants in 2010 34 Copyrigh
Slide 36: Contact Details
Contact Details V V Chandra Sekhar Gayatri Projects Limited Tel: +91 40 23310330/23314284/4296 Email: vvcs@gayatri.co.in Sheetal Khanduja Go India Advisors +91 9769364166 sheetal@goindiaadvisors.com 35 Copyright 2016 Gayatri Project Ltd