Patel Engineering Limited · NSE:PATELENG
Patel Engineering — Q2 FY2024 Earnings Presentation
70 slides from Patel Engineering's earnings presentation, Nov 3, 2023
Slide 1: Patel Engineering Limited Q2 FY24 Earnings Conference Call
“Patel Engineering Limited Q2 FY '24 Earnings Conference Call” November 03, 2023 MANAGEMENT: MS. KAVITA SHIRVAIKAR – WHOLE-TIME DIRECTOR AND CHIEF FINANCIAL OFFICER – PATEL ENGINEERING LIMITED MR. RAHUL AGARWAL – HEAD STRATEGIC FINANCE – PATEL ENGINEERING LIMITED MR. ADITYA BAJAJ – INVESTOR RELATION
Slide 2: Call transcript: opening and management remarks
Patel Engineering Limited November 03, 2023 Moderator: Ladies and gentlemen, good day and welcome to Patel Engineering Limited Q2 FY24 conference call hosted by Kirin Advisors. As a reminder, all participant lines will be in the listen- only mode and there will be an opportunity for you to ask quest
Slide 3: Call transcript: order book and hydropower sector
Patel Engineering Limited November 03, 2023 Also, 62% of our order book is from central government PSU which are AA, AAA rated entities and 35% from state government and balance 3% from Nepal. Speaking about the hydropower sector which comprises the major pie of our order book, as per recent notific
Slide 4: Call transcript: irrigation and tunneling sectors
Patel Engineering Limited November 03, 2023 by Government, they are extending financial support to states for capital investment with allocation of around INR1.3 lakh crore for 2023-24 for JJM projects. With the focus of the Government on providing every household in India with drinking water and pr
Slide 5: Call transcript: financial performance
Patel Engineering Limited November 03, 2023 corresponding period and net profit at INR70.49 crores, which is up by 38% year-on-year from INR50.96 crores. On a stand-alone basis, revenue from operations for Q2 FY ‘24 is INR1,012.11 crores, which is up by 24.2% from INR814.46 crores in Q2 FY ‘23. Oper
Slide 6: Call transcript: Q&A begins
Patel Engineering Limited November 03, 2023 That was small brief from our side. Now our team here shall be happy to answer any further questions which you all may have. Thank you. Moderator: Thank you very much. We will now begin with the question-and-answer session. We take the first question from
Slide 7: Call transcript: Q&A project progress
Patel Engineering Limited November 03, 2023 Kavita Shirvaikar: From our side, whatever work -- we are on schedule. We are on track. But because of rainfall, we see, we have to do the rework certain things. Like we have to again construct the dike and other things. So, that is in progress. Prashant:
Slide 8: Call transcript: Q&A order book
Patel Engineering Limited November 03, 2023 Kavita Shirvaikar: No, whatever we have submitted, out of which, see, we are not going everything under Vivad se Vishwas part of which are eligible. And we are submitting out of that, we expect to realize around INR150, INR200 crores. Chirag Shah: Okay. An
Slide 9: Call transcript: Q&A debt
Patel Engineering Limited November 03, 2023 Chirag Shah: Great. I will come back for more questions. Thanks. Kavita Shirvaikar: Thank you. Moderator: Thank you. We take the next question from the line of Arushi Shah from Sushil Finance. Please go ahead. Arushi Shah: Hi. I have two questions. First i
Slide 10: Call transcript: Q&A cost efficiency
Patel Engineering Limited November 03, 2023 Moderator: Thank you. We take the next question from the line of Jainam Shah, an individual investor. Please go ahead, sir. Mr. Jainam, your line is in the talk mode, sir. Please go ahead with your question. Hello, Mr. Jainam. Can you hear us? Hello, Mr. J
Slide 11: Call transcript: Q&A competition
Patel Engineering Limited November 03, 2023 Rahul Agarwal: Yes. So, see, generally, when we build our competitors, like L&T, Afcons, MEGHA, for hydro segment, Jayaprakash. So, and we go to irrigation or tunneling, then depending upon the type of work, there are various other players as well. Deepika
Slide 12: Call transcript: Q&A JV and insurance
Patel Engineering Limited November 03, 2023 Vishal Periwal: Okay. So, in terms of segregation of work, like technical work and then financially support is provided? Rahul Agarwal: That we both will work out together with what we are doing. Kavita Shirvaikar: It will be executed under separate JV. Vi
Slide 13: Call transcript: Q&A hydro and renewables
Patel Engineering Limited November 03, 2023 Aman: Yes, ma'am. First of all, I congratulate you. It has been an immense journey traveling with you. And second thing, I was very curious about getting to know you because we are positioning ourselves as a hydro power sector leader in India. When you qua
Slide 14: Call transcript: Q&A rating and guarantees
Patel Engineering Limited November 03, 2023 Management: So, yes. See, it will be coupled with economy as well as our performance rating improving. So, as and when the rating improves, this thing will go down. Plus, it should also depend upon how the overall MCLR, and other benchmark rates are moving
Slide 15: Call transcript: Q&A order inflow and tunneling
Patel Engineering Limited November 03, 2023 Management: Yes. So, this year, you know, till elections, we are not sure about how much, you know, big orders will come in and there may be a little shift, but on a combined, on a long-term perspective, we don't see a challenge in getting that 15%-20% yea
Slide 16: Call transcript: Q&A debt and interest
Patel Engineering Limited November 03, 2023 Moderator: Thank you, sir. We take the next question from the line of Mr. Rajeev Sharma from 5.40AM Finance. Please go ahead, sir. Rajeev Sharma: Okay. So first of all, many congratulations for very good quarterly results. My question is specific to the de
Slide 17: Call transcript: Q&A interest cost target
Patel Engineering Limited November 03, 2023 Rajeev Sharma: Yes ma'am. So, my concern is not the overall number has come down with respect to interest cost. My concern is, what we targeted at the beginning of the year and where we are after H1. That is not matching. And we are only at one third of th
Slide 18: Call transcript: Q&A Arun 3 project
Patel Engineering Limited November 03, 2023 Arushi Shah: Okay. Thank you for the follow-up, sir. Thank you. Moderator: Thank you. We take the next follow-up question from the line of Prashant Kshirsagar from Unived Corporate Research. Please go ahead. Prashant Kshirsagar: Thanks for the follow-up qu
Slide 19: Call transcript: Q&A dividend and irrigation
Patel Engineering Limited November 03, 2023 seasonality that we are referring to the notes on accounts. So, we can probably expect quarter 1 like, or maybe better than quarter 1 like quarters in next half year. Management: I mean, that has been the past trend. Ajay Agarwal: Yes, okay, got it, sir. A
Slide 20: Patel Engineering Limited Q2 FY24
Patel Engineering Limited Investor Presentation | Q2 FY24
Slide 21: Disclaimer
Disclaimer This presentation and the accompanying slides have been prepared by Patel Engineering Ltd. (the “Company”), and have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for any securities, and shall not form
Slide 22: Company Overview
Company Overview
Slide 23: About Patel Engineering Limited
About Patel Engineering Limited One of the most integrated infrastructure and construction services conglomerates in India Patel Engineering Limited, founded in 1949 and headquartered in Mumbai, is a prominent player in the civil engineering construction segment. With over seven decades of experienc
Slide 24: Vision and Mission
Patel Engineering Limited, is one of the MISSION major Infrastructure To be the pioneers in the industry and a and Construction market-driven organization known for its commitment towards excellence, Company quality, performance and reliability. Investor Presentation Q2 FY24 VISION Vision and Missio
Slide 25: Key Facts and Figures
Key Facts and Figures 7+ decades 14 States 15,000+ Experience Current Domestic Presence MW Hydro Project 87+ 300+ Kms 5.5+ Lakhs Dams of Tunnels Acres Irrigated 1,200+ Kms ₹ 2,00,033 Mn BBB+ Investor Presentation Q2 FY24 Road Order book ( Including L1 Orders) Credit rating Q2 FY24 Cons. Q2 FY24 Cons
Slide 26: Stock Data and Share Holding Pattern
Stock Data NSE: PATELENG BSE: 531120 | ISIN: INE244B01030 Share Holding Pattern As on 02-11-2023 As on 30-09-2023 Share Price (₹) 48.92 4.49% Market Capitalization (₹ Mn) 37845.4 Promoters No. of Shares Outstanding 77,36,17,228 FII Face Value (₹) 1.00 39.41% 52 week High - Low (₹) 62.11 – 13.10 DII
Slide 27: Q2 FY24 Financial Highlights
Q2 FY24 Financial Highlights
Slide 28: Standalone Results Highlights
Standalone Results Highlights Quarterly & Half Yearly Revenue Performance in ₹ Quarterly & Half Yearly Op. EBITDA and Net Profit Million Performance in Million 21,028.09 2,877.90 16,955.54 2,337.63 Q2 FY23 1,720.22 10,121.09 Q2 FY24 1,355.83 Op. EBITDA 8,144.64 1,109.43 H1 FY23 Net Profit H1 FY24 41
Slide 29: Q2 FY24 Standalone Results Highlights
Q2 FY24 Standalone Results Highlights In ₹ Mn Particular Q2 FY24 Q2 FY23 Y-O-Y % H1 FY24 H1 FY23 Y-O-Y % FY23 Revenue from Operations 10,121.09 8,144.64 24.3% 21,028.09 16,955.54 24.0% 38,171.26 Expenses 8,765.26 7,035.21 18,150.19 14,617.91 32,766.48 Operating EBITDA 1,355.83 1,109.43 22.2% 2,877.9
Slide 30: Standalone Balance Sheet (Assets)
Standalone Balance Sheet In ₹ Mn Assets FY20 FY21 FY22 FY23 Sept - 23 Non Current Assets Fixed Assets 3,118.66 3,655.61 10,753.88 11,973.83 11,902.25 Non Current Investments 6,692.17 6,539.91 2,578.15 2,256.91 2,365.08 Other Non Current Financial Assets 15,446.71 15,083.23 16,318.93 15,220.74 15,476
Slide 31: Standalone Balance Sheet (Equity & Liabilities)
Standalone Balance Sheet In ₹ Mn Equities & Liabilities FY20 FY21 FY22 FY23 Sept - 23 Equity 408.18 465.45 479.23 773.62 773.62 Reserves 25,292.65 24,458.04 23,046.11 27,803.89 29,524.11 Net Worth 25,700.83 24,923.49 23,525.34 28,577.51 30,297.73 Non-current Liabilities Long-term Borrowing 6,279.64
Slide 32: Consolidated Results Highlights
Consolidated Results Highlights Quarterly & Half Yearly Revenue Performance in ₹ Quarterly & Half Yearly Op. EBITDA and Net Profit Million Performance in ₹ Million 3,106.30 21,399.24 2,524.76 17,314.53 10,213.13 1,400.67 8,303.43 1,186.16 Investor Presentation Q2 FY24 704.86 509.56 321.98 197.07 Q2
Slide 33: Q2 FY24 Consolidated Results Highlights
Q2 FY24 Consolidated Results Highlights In ₹ Mn Particular Q2 FY24 Q2 FY23 Y-O-Y % H1 FY24 H1 FY23 Y-O-Y % FY23 Revenue from Operations 10,213.13 8,303.43 23.0% 21,399.24 17,314.53 23.6% 38,911.47 Expenses 8,812.46 7,117.27 18,292.94 14,789.77 33,295.82 Operating EBITDA 1,400.67 1,186.16 18.1% 3,106
Slide 34: Consolidated Balance Sheet (Assets)
Consolidated Balance Sheet In ₹ Mn Assets FY20 FY21 FY22 FY23 Sept - 23 Non Current Assets Fixed Assets 17,480.77 13,611.47 14,631.43 15,255.89 15,228.94 Non Current Investments 789.75 678.90 816.08 1,354.12 1,255.98 Other Non Current Financial Assets 6,201.10 6,492.59 11,428.32 10,661.48 10,515.44
Slide 35: Consolidated Balance Sheet (Equity & Liabilities)
Consolidated Balance Sheet In ₹ Mn Equities & Liabilities FY20 FY21 FY22 FY23 Sept - 23 Equity 408.17 465.45 479.23 773.62 773.62 Reserves 25,061.78 22,730.21 23,357.76 28,105.94 28,753.77 Net Worth 25,469.95 23,195.66 23,836.99 28,879.56 29,527.39 Minority Interest 330.98 612.90 714.11 878.20 -72.6
Slide 36: Consolidated Debt Highlight
Consolidated Debt Highlight Term Debt Working Capital Debt Total Debt BG / LC Charges & Other Borrowing Cost In ₹ Mn Interest on Contractee Advances In ₹ Mn Interest to Lenders 21,751.79 Total Finance Cost 19,923.19 1,039.10 916.77 188.09 11,932.05 167.80 11,554.71 262.44 200.73 Investor Presentatio
Slide 37: Q2 FY24 Operational Highlights
Q2 FY24 Operational Highlights
Slide 38: New Projects Received in Q2 FY24
Project Name: Project Name: Nira Deoghar Right Bank Nira Deoghar Right Bank Main Canal Km 66 to Km 76 Main Canal Km 77 to Km 87 Project Location: Project Location: Maharashtra Maharashtra New Projects Client: Received in Q2 Client: Maharashtra Krishna Valley FY24 Maharashtra Krishna Valley Developme
Slide 39: Projects Converted into LOA in Q2 FY24
Project Name: Project Name: Narmada Gambhir Jal Nigam Dibang Multipurpose Project Project Project Location: Project Location: Madhaya Pradesh Arunachal Pradesh Projects Client: Converted Into Client: Madhya Pradesh Jal Nigam LOA in Q2 FY24 NHPC Limited Investor Presentation Q2 FY24 Contract Value: C
Slide 40: Q2 FY24 Milestones
Keoti-Antagarh-Taroki New Rail Line Work. Breaking Ground: Patel Engineering’s A new railway line project, connecting Keoti and Taroki, was undertaken by RVNL Raipur in July 2016. This project was divided into two sections: Keoti to Antagarh (Km.42.6 to 59.86) and Antagarh to Taroki (Km.59.86 to 77.
Slide 41: Order Book Highlights
Since 1949 = rS A, Ordér Book Highlights
Slide 42: Yearly Growth In Order Book
Yearly Growth In Order Book Yearly Order Book 2,08,067 2,00,033* 1,44,660 1,50,110 1,31,840 1,02,150 Investor Presentation Q2 FY24 FY19 FY20 FY21 FY22 FY23 Q2 FY24 *Q2 FY24 Includes Two Projects which is L1 amounting to ₹ 1,809 Mn. 23
Slide 43: Order Book Break Up
Order Book Break Up In % Segment Wise Order Book Client Wise Order Book Project Completion Wise Order Book 4.23% 2.25% 3.12% Hydroelectric 3.58% 5.14% Below 10% Central 11.56% Irrigation Government / 12.85% 10% - 30% PSU’s 34.64% 30% - 50% 44.13% Tunnel 10.08% State Government 50% - 70% Departments
Slide 44: Diversely Spread Works De-Risking Business
Diversly Spread Works De Risking Business Jammu and Kashmir No. of Sr.No. State Project Value Projects Himachal Pradesh 1 Jammu and Kashmir 7 62,520 2 Madhya Pradesh 9 33,504 3 Himachal Pradesh 3 20,020 Arunachal Sikkim Pradesh 4 Maharashtra 12 18,745 Nepal 5 Arunachal Pradesh 2 18,551 Assam 6 Sikki
Slide 45: Major Projects Under Execution
Hydro Power / Tunnelling Irrigation Transportation Urban Infrastructure o Subansiri HEP (2,000 MW) o Sleemanabad Carrier Canal o Shivane to Mhatre bridge o Amarmahal to Trombay Tunnel o IRCON T15 (Railway Tunnel) o Morand & Ganjal Dam o Selapass Road and Tunnel o Hindoli - Nainwa Water Supply Projec
Slide 46: Strong Client Base - Some Major Clients
Strong Client Base – Some Major Clients Investor Presentation Q2 FY24 27
Slide 47: Our Major Achievements
Recipient of many national and international awards First Double lake tapping in Asia – Koyna Project More than 4,000 m Largest surge shaft Largest underground shaft boring in Asia – 38 m dia – power house cavern – completed Rampur Project Srisailam HE Project More than 300 Commissioned more Our Maj
Slide 48: Major completed projects - Hydro Power / Tunneling
Major completed projects - Hydro Power / Tunneling Tuirial Hydro Electro Project Mizoram Parbati Hydro Electro Project (800 MW) USBRL - T2 (60 MW) Investor Presentation Q2 FY24 o Srisailam Left Bank Hydro Power Station (900 MW) o Kameng HEP (600 MW) o Teesta Hydro Electro Project Stage V (510 MW) o
Slide 49: Major completed projects - Irrigation
Major completed projects - Irrigation Kalwakurty Lift Irrigation Project, Andhra Pradesh PLGC Canal, Uttar Pradesh Investor Presentation Q2 FY24 o Polavaram Project (Right Main Canal), Andhra Pradesh o Indira Sagar Project, Andhra Pradesh o Jawahar Lift Irrigation Project , Andhra Pradesh o Vamsudha
Slide 50: Major completed projects - Transportation
Major completed projects - Transportation Krishnagiri - Vaniyambadi NH-46, Tamil Nadu 4 laning NH-7 from Madurai to Kanyakumari, Tamilnadu Investor Presentation Q2 FY24 o Hathipali - Hosur (NH-7), Tamil Nadu o Road from Ramwadi to New PMC Limit under JNNURM Project o Nellore - Kaveli NH-5, Andhra Pr
Slide 51: Major completed projects - Urban Infrastructure
Major completed projects - Urban Infrastructure BYTCO Hospital Mantalia Parliament Building Bhutan Investor Presentation Q2 FY24 o Construction of various water tunneling projects, Maharashtra o Microtunneling & Pipe Jacking for Water Supply & Sewerage, Maharashtra o Dam for Shillong Water Supply, M
Slide 52: Few Landmark Projects That Set Us Apart
Few Landmark Projects That Set Us Apart Ghatghar Dam – Maharashtra 84m high Koyna HE Project - Maharashtra (260MW) 10th fastest completed dam in the world an India’s first RCC Dam First Lake Tapping in Asia. Investor Presentation Q2 FY24 Srisailam HE Project - Andhra Pradesh (900MW) Sawrakuddu HE Pr
Slide 53: Technology Oriented: Micro-tunneling and RCC
Micro-tunneling First RCC o Micro-tunneling is the only non invasive Dam in India solution for urban areas First Lake o We are one of the largest Micro-tunneling Contractors Tapping in Asia Asia's largest Double Lake Tap Surge Shaft with a dia of 38 m o A unique technology for connecting water to po
Slide 54: Technology Oriented
New Austrian Tunnelling Method (NATM) Application of Finite Element Method (FEM) Use of Non – technique Destructive Testing Method for assessment of Technology Oriented geological Earth Pressure formation and Balancing material testing Tunnel Boring Machine (TBM) Use of steel Fibre for tunnelling Re
Slide 55: Technology Oriented: Concrete Tower Belt System
Technology Oriented Concrete Tower Belt System The implementation of the Tower Belt System, a conveyor belt concreting system, was a remarkable technological advancement carried out at the Kiru Hydroelectric Project. This system, powered by electricity, plays a crucial role in transporting aggregate
Slide 56: Industry Overview
Industry Overview
Slide 57: Hydropower Overview
Hydro Power – a keen effort taken by the government to boost energy generation — Hydropower supplies at least 50% of electricity production in 66 countries and at least 90% in 24 countries. — India has overtaken Japan, becoming the nation with the fifth-largest hydropower production capacity in the
Slide 58: Hydro Pumped Storage
Hydro Pumped Storage 39 Hydro PSPs of 47 GW are being pursued to be commissioned by the year 2029-30. Hydro Pumped Storage Projects are necessary to achieve Government of India’s commitment of 500 GW installed capacity from non-fossil fuel sources by the year 2030 and Net Zero carbon emissions by th
Slide 59: Power Industry Overview
Power Industry Overview The Ministry of Power has made significant efforts over the past few years to turn the country from one with a power shortage to one with a surplus by establishing a single national grid, FDI in India’s renewable fortifying the distribution network, and achieving Investment B
Slide 60: Micro Irrigation The Way Forward
Micro Irrigation The Way Forward Importance of Micro Irrigation Micro Irrigation in India Government Initiative o Micro-irrigation increases water efficiency as o In India, the average penetration of micro o The government started micro irrigation in the much as 50%-90%. irrigation is 19% (as of Feb
Slide 61: Management Overview
Management Overview
Slide 62: Professional & Experienced Board Of Directors
Professional & Experienced Board Of K. Ramasubramanian Rupen Patel Kavita Shirvaikar Directors Chairman & Managing Whole Time Director & CFO Independent Director Director Investor Presentation Q2 FY24 Sunanda Rajendran Shambhu Singh Ashwin Parmar Independent INDEPENDENT DIRECTOR INDEPENDENT DIRECTOR
Slide 63: Core Management Team: Rupen Patel
Core Management Team Mr. Rupen Patel Promoter, Chairman & Managing Director A third generation entrepreneur, Mr. Rupen Patel, holds an MBA from Babson College, USA. He began his career as an Advisor to the Board of Patel Engineering Limited in 1993. Appointed as Executive Director in 1996, he was el
Slide 64: Core Management Team: Kavita Shirvaikar
Core Management Team Mrs. Kavita Shirvaikar Whole Time Director & CFO A qualified Chartered Accountant and a Graduate of the Institute of Cost & Works Accountants of India, Ms. Kavita Shirvaikar, who specializes in accounting, tax, audit, banking, finance, and fund management, has completed difficul
Slide 65: The Way Forward
ee may rs sees a 1 eee Patal Since 1949
Slide 66: Monetization of Non-Core Assets: Land Bank & Arbitration Awards
Monetization of Non-Core Assets: Sale of Land Bank & Arbitration Awards Total Available Land Bank Balance Land Approximate Value ~ 2,150 Acres. Bank Details ₹ ~ 10,000 Mn Details Some Of The Major Land Parcels State / City Locality Available Area Karnataka, Bangalore Electronic City ~ 15 acres Mahar
Slide 67: Future Growth Drivers
Future Growth Drivers Over the past few Reduction of Debt Infrastructure years the company which shall help in development is prime has monetized non reduction of interest focus of GOI which has core asset for cost and improve been continued in the profitability reduction of debt FY24 budget with wh
Slide 68: Investment highlights
A leading player in the hydroelectric space, with a Strong experience and reputation in the track record of participating in some of India's most infrastructure space for over 74 years. prestigious and strategically significant projects. The government's focus on hydroelectric Our focus on niche seg
Slide 69: Thank You
Thank You Patel Engineering Limited Contact: Rahul Agarwal Phone: +91 22 2676 7500 Website: www.pateleng.com E-mail: investors@pateleng.com Kirin Advisors Private Limited Contact: Vastupal Shah Phone: +91 22 4100 2455 Website: www.kirinadvisors.com E-mail: vastupal@kirinadvisors.com
Slide 70: Earnings Conference Call Invite
Earnings Conference Call Invite Kirin Advisors Cordially invite you to the Q2 FY24 Earnings Call of Patel Engineering Limited Friday, November 03, 2023 05:00 PM Joining Details Universal Dial In International Toll-Free Numbers Diamond Pass Login +91 22 6280 1239 USA : 18667462133 +91 22 7115 8140 UK