Gayatri Projects Limited · NSE:GAYAPROJ
Gayatri Projects — Q4 FY2021 Earnings Presentation
32 slides from Gayatri Projects's earnings presentation, Jun 15, 2021
Slide 1: Cover letter to stock exchanges
~~ GAyATRI June 15, 2021 To To The Secretary, Listing Department The Manager, Listing Department BSE Limited National Stock Exchange of India Limited Phiroze Jeejeebhoy Towers, Exchange Plaza, 5th Floor, Plot No. C/1, Dalal Street, G Block, Bandra-Kurla Complex, Bandra (E), Mumbai - 400 001 Mumbai -
Slide 2: Gayatri Projects Limited Q4 & FY21 Earnings
Gayatri Projects Limited Q4 & FY21 Earnings 1
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: FY21: Resilience in a Tough Year; Surpass Guidance
FY21: Resilience in a Tough Year; Surpass Guidance Pandemic Impact: Managing a Tight Cash Flow Situation o Cash flow situation, while significantly better than 1H21, continues to remain challenging o Delayed payments from state governments o Mobilisation advances on new orders delayed on account of
Slide 5: Balance Sheet Getting Stronger
Balance Sheet Getting Stronger All figures in INR Mn Bank credit to company easing; execution picking up which is leading to higher working capital requirements 4
Slide 6: Long Term Debt Reduced 25% in FY21
Long Term Debt Reduced 25% in FY21 Debt Maturity Profile (INR MN) Reducing Long Term Debt (INR Mn) 10,986 2,514 9,852 9,211 2,030 6,896 5,192 1,111 FY22 FY23 FY24 FY17 FY18 FY19 FY20 FY21 Net Debt/Equity (x) EBITDA to CFO Conversion 2.5 2.38 2.06 97% 1.7 * 1.7 # 83% 1.5 1.2 65% 60% 42% 26% FY15 FY16
Slide 7: Fast Paced Project Execution
Fast Paced Project Execution FY21YOY FY21 Margins Revenue Growth EBITDA Growth GP EBITDA Book to Bill Gayatri Project 14% 5% 18% 12% 3.4x Peer 1 20% 10% 36% 20% 2.6x Peer 2 3% -7% 21% 16% 2.8x Peer 3 15% 20% 22% 16% 2.8x Peer 4 -12% -17% 19% 12% 5.1x Note: Only those Infra peers have been considered
Slide 8: Pure Play EPC Order Book Getting Stronger
Pure Play EPC Order Book Getting Stronger Geographical Diversification Segmental Diversification 56% Others Hyderabad Jharkhand Karnataka 3% 3% 2% Andhra Pradesh 3% 15% 22% 19% Bihar 6% 2% 1% Jammu ROAD IRRIGATION JAL JEEVAN MINING INDUSTRIAL 7% Odisha 13% De-Risked EPC Order Book (INR Bn) Telangana
Slide 9: GPL: Amongst India's leading Asset-Light EPC Companies
GPL: Amongst India’s leading Asset – Light EPC Companies One of India’s leading EPC focused construction and infrastructure companies Business Segments Re-focused business on “Asset-Light” Model over last 6 years Reduced, restructured, monetized exposure to Asset Development Business Significant
Slide 10: Q4FY21 Results Update
Q4FY21 Results Update 9
Slide 11: Operational and Financial Snapshot
Operational and Financial Snapshot Debt Servicing • Renegotiated interest rates with banking consortium post Arbitration award monetization through BG route– interest cost reduced by over 250 bps Projects Execution Status • Strong execution at Purvanchal expressway; project near completion • Revenue
Slide 12: Q4FY21 (YoY) – Financial Performance
Q4FY21 (YoY)– Financial Performance Revenue (INR Mn) EBITDA (INR Mn) Key Highlights 13,600 o Strong revenue growth on account of solid execution at Purvanchal 9,102 expressway and Mumbai Nagpur 1,109 Expressway, pick-up in execution at AP 540 irrigation projects. o Gross margins down sharply on sequ
Slide 13: FY21 (YoY) – Financial Performance
FY21 (YoY)– Financial Performance Revenue (INR Mn) EBITDA (INR Mn) Key Highlights 39,005 34,273 o Delivered Strong financial 4,266 4,491 performance – Surpassed full year guidance of 0-5% Revenue growth, despite a sharp drop in 1Q21. o Revenue driven by solid execution FY20 FY21 FY20 FY21 at Purvanc
Slide 14: Q4FY21 Income Statement - Snapshot
Q4FY21 Income Statement - Snapshot INR Mn Q4FY21 Q4FY20 YoY(%) FY21 FY20 YoY(%) Revenue 13,600 9,102 49% 39,005 34,273 14% Expenses -12,491 -8,561 46% -34,514 -30,007 15% EBITDA 1,109 541 105% 4,491 4,266 5% EBITDA Margin 8% 6% 37% 12% 12% -7% Depreciation -191 -323 -41% -845 -909 -7% Finance Cost -
Slide 15: Top Work Orders – Status Update – Q4FY21
Top Work Orders – Status Update – Q4FY21 Contract Balance work as on Mobilized on Revenue Expected Completion of Project Name Location Value (INR Cr) 31.03.2021 (INR Cr) Site Booking Start Project Purvanchal Expressway Package 1 Eastern UP 1,483 533 Yes Q3 19 Q2 22 Purvanchal Expressway Package 2 Ea
Slide 16: Top Work Orders – Status Update – Q4FY21
Top Work Orders – Status Update – Q4FY21 Contract Value Balance work as on Mobilized Revenue Booking Expected Completion of Project Name Location (INR Cr) 31.03.2021 (INR Cr) on Site Start Project Nagpur - Mumbai Expressway Shirdi, MH 1,312 797 Yes Q1 20 Q4 22 6 Lane Tunnel at Khambataki Ghat Satara
Slide 17: Notes to Account - Snapshot
Notes to Account - Snapshot Note 5 6 Description Gayatri Hi-Tech Hotels: Legacy issue. Investment in Gayatri Highways Limited: Road Significantly delayed EPC cost receivable BOT assets owned by GPL were spun off into from a related party. It was subsequently separate listed company (GHL) and 74% of
Slide 18: Notes to Account - Snapshot
Notes to Account - Snapshot Note 7 8 Description Contract Advances (loan): Exposure to Sai Maatarani Tollways Ltd: SMTL Road Project was terminated by the NHAI on 28th January, 2020 and toll collection rights In the ordinary course of were handed over to the NHAI from 30th January, 2020. The busines
Slide 19: Notes to Account - Snapshot
Notes to Account - Snapshot Note 9 10 Description Receivables from Western UP Tollways Advance to Suppliers, Sub (WUTPL)(erstwhile associate company). EPC Cost – 36.2 Contractors given in the cr. This amount is receivable from the erstwhile associate normal course of business company against the EPC
Slide 20: Building an Asset Light Business Model
Building an Asset Light Business Model Growing Revenue Base (INR MN) Working Capital Days 78 78 67 64 62 FY17 FY18 FY19# FY20 FY21 Receivable Days Inventory Days Payable Days Net Working Capital * Due to lockdown, work at major sites came to standstill during Q1FY20 and the revenue during trailing 1
Slide 21: Roadmap to reduce term debt to zero over next 2 years
Roadmap to reduce term debt to zero over next 2 years Conciliation & Settlement mechanism introduced by GOI/NHAI c.INR 1 Bn+ c. Internal Accruals/Other Initiatives c. c. c.INR 2-3 Bn+ Total expected cashflow c. c.INR 3-4 Bn+ 20
Slide 22: FY22: Guidance
FY22: Guidance FY22 Guidance (INR Mn) Order Inflow INR 30 - 40 billion Revenues 0% - 5% Growth EBITDA Margin 13% - 14% 21
Slide 23: 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 24: Appendix
Appendix 23
Slide 25: Awards & Claims
Awards & Claims Different arbitration tribunals/courts have awarded GPL, a total of INR 5 Bn+, AWARDS INR 5 Bn+ towards disputed receivables from its EPC clients. In addition, GPL has a net exposure to CLAIMS INR 3.5 Bn+ outstanding claims of INR 3.5 Bn+ in different arbitral tribunals/courts. 24
Slide 26: Monetisation of stake in power asset
• The company concluded the sale of its 5.95% stake in power assets of 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 long-term debt and the balance amount is utiliz
Slide 27: Profit & Loss
Profit & Loss All figures in INR Million INR Mn FY21 FY20 FY19 FY18 FY17 Revenue 39,005 34,273 34,631 29,123 21,154 Expenses 34,514 30,007 29,182 24,446 17,919 EBITDA 4491 4266 5,449 4,677 3,234 EBITDA Margin 11.5% 12.4% 15.7% 16.1% 15.3% Depreciation 845 909 659 547 432 Finance Cost 3,207 2,857 2,5
Slide 28: Balance Sheet
Balance Sheet All figures in INR Million ASSETS (INR Mn) FY21 FY20 FY19 EQUITY AND LIABILITIES (INR Mn) FY21 FY20 FY19 EQUITY NON-CURRENT ASSETS (a) Equity Share capital 374 374 374 (a) Property Plant & Equipment 3,301 3,942 3,763 (b) Other Equity 963 9,049 12,922 (b) Capital Work in Progress 226 10
Slide 29: Board of Directors
Board of Directors T. Indira Reddy Promoter and Non-Executive Chairperson, over 25 years of experience in the 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 30: 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 31: 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 32: Thank You
Thank You Contact Details – Go India Advisors R. Balasubramanian Gayatri Projects Limited Sheetal Khanduja Tel: +91 40 23310330/4284/4296 +91 9769364166 r.bala@gayatri.co.in sheetal@goindiaadvisors.com Surabhi Sutaria Chetan Sharma +91 95940 63493 Gayatri Projects Limited surabhi@goindiaadvisors.com