Rpp Infra Projects Ltd. · NSE:RPPINFRA
Rpp Infra Projects — Q3 FY19 Earnings Presentation
32 slides from Rpp Infra Projects's earnings presentation, Feb 19, 2019
Slide 1: Filing cover letter to stock exchanges
» AX RPP Infra Projects Ltd Tuesday, 19% February, 2019 Corporate Relationship Department The Manager, Listing Department BSE Limited National Stock Exchange of India Ltd 1st Floor, New Trading Ring, Exchange Plaza, 5'* Floor, Rotunda Building, P.J.Towers, Plot no. C/1, Block G, Dalal Street, Fort,
Slide 2: RPP Infra Projects Ltd Corporate Presentation Q3 FY19
RPP INFRA PROJECTS LTD CORPORATE PRESENTATION | Q3 FY19
Slide 3: Disclaimer
Disclaimer This presentation contains forward-looking statements which may be identified by their use of words like “plans,” “expects,” “will,” “anticipates,” “believes,” “intends,” “projects,” “estimates” or other words of similar meaning. All statements that address expectations or projections abo
Slide 4: Agenda
Agenda 1 Introduction to the Company Slides 4-6 2 Q3FY19 Review & Future Guidance Slides 7-14 3 Industry Overview Slides 15-20 4 Appendix – Company Overview Slides 21-30
Slide 5: A Pure Play Niche EPC Company
A Pure Play Niche EPC Company Order Book (Dec’18) – INR 15,556.7 Mn Strong presence in the fast-growing micro-markets of Buildings Total Water South India Management 17.85% Total 36.54% Currently spreading its footprints in Maharashtra and MP for geographical diversification Diversified presence in
Slide 6: A Fast Growing Company
A Fast Growing Company… Revenue EBITDA PAT (INR Mn) (INR Mn) (INR Mn) 649 4,991 296 483 454 228 3,672 399 3,147 193 358 351 2,600 2,659 2,403 136 115 103 FY13 FY14 FY15 FY16 FY17 FY18 FY13 FY14 FY15 FY16 FY17 FY18 FY13 FY14 FY15 FY16 FY17 FY18 Adjusted PAT excluding one time tax expense of Rs. 17.96
Slide 7: With a Strong Balance Sheet, Creating Superior Shareholder Value
…With a Strong Balance Sheet, Creating Superior Shareholder Value Return on Equity Net Debt to Equity (x) (%) 0.7 13 0.6 11 0.5 10 10 9 6 0.3 0.3 0.3 FY13 FY14 FY15 FY16 FY17 FY18 FY13 FY14 FY15 FY16 FY17 FY18 Net cash from operations (INR Mn) OCF/EBITDA 704.9 0.82 0.82 0.77 0.55 0.49 370.5 374.3 17
Slide 8: Q3FY19: Stable Performance Amid Tight Liquidity
Q3FY19: Stable Performance Amid Tight Liquidity Operational Highlights Revenue (INR Mn) EBITDA (INR Mn) & EBITDA 13.2% Margin (%) 12.2% 1,370 1,343 o Flattish revenues & minor 181 164 increase in operating expenses led by tight working capital o Revenue up 29% YoY scenario due to strong execution o
Slide 9: H1FY19 – Balance Sheet Strength Intact
H1FY19 – Balance Sheet Strength Intact 17% 0.3x Adj Return on Net Debt to Equity (%) Equity (x) 82 Days 14 Days 75 Days Receivable Days Inventory Days Payable Days *Above data is calculated on TTM basis 8
Slide 10: Q3FY19 & 9MFY19 At a Glance
Q3FY19 & 9MFY19 At a Glance INR Mn Q3FY19 Q3FY18 % Change 9M FY19 9M FY18 % Change (YoY) (YoY) Revenues 1,343 1,370 -2% 3,740 3,574 5% EBITDA 164 181 -10% 471 480 -2% EBITDA 12.2% 13.2% - 12.6% 13.4% - Margin Finance Cost 62 38 63% 160 139 15% Reported PAT 72 -93 - 229 50 354% Reported EPS 3.2 -4.1
Slide 11: Business Review
Business Review ROADS Current Order Book – INR 7,630.4 Mn Embedded EBITDA margins of 12-14% WATER MANAGEMENT Current Order Book – INR 4,404 Mn Embedded EBITDA margins of 15-18% BUILDINGS Current Order Book – INR 3,522.3 Mn Embedded EBITDA margins of 10-12% 10
Slide 12: Q3 FY19 & After Q3 FY19 – Strong Order Inflows
Q3 FY19 & After Q3 FY19 – Strong Order Inflows Name Amount Segment State Post Q3FY19 Wins BHEL, Chennai INR 629 Mn Buildings Tamilnadu Tiruppur City Municipal Corporation INR 1,947 Mn Water Management Tamilnadu BHEL, Chennai INR 402 Mn Buildings Tamilnadu Thoothukudi Smart City INR 180 Mn Water Mana
Slide 13: Orderbook Growth Trajectory
Orderbook Growth Trajectory Order Book Break up (INR Mn) Telangana Andhra Pradesh 100% 1% 1% Bangladesh 6% Jharkhand Govt Order Book 3% 15,557 15,000 14,566 Karnataka INR 6.5 Bn Tamil Nadu 8% 11,750 New Order Wins in H2FY19 so 37% far Kerala 9% 10 Madhya 7,860 States of Operations Pradesh 7,250 1% 3
Slide 14: Future Outlook & Guidance
Future Outlook & Guidance Revenue Guidance INR Mn FY2018 Actual 4,991 FY2019 5,300-5,500 FY2020 6,500-7,000 13
Slide 15: Key Investment Highlights
Key Investment Highlights Growing Order Book • c.2x in 3 years Short duration projects • 3.02x Book to Bill ratio Strong revenue visibility • 87% of projects to be completed in 18-24 months period Superior Revenue Growth • 15-20% for next 2 years De-risked Business Profile • 100% Government orders H
Slide 16: Industry Overview
Industry Overview 15
Slide 17: Construction industry in India: Compelling growth drivers
Construction industry in India: Compelling growth drivers o Growing economy and increasing urbanization along with favorable policy bodes well for construction sector in the country o Big boost in infrastructure spending expected over next few years NHAI awarding (1) Roads Kms New projects 6,278 6,5
Slide 18: Rural Infra: A Strong Government Focus
Rural Infra: A Strong Government Focus UNION BUDGET: ALLOCATION TO INFRASTRUCTURE SECTOR 5.97 3.96 2.51 2.21 1.81 FY15 FY16 FY17 FY18 FY19 17
Slide 19: Significant Upcoming Growth in Roads
Significant Upcoming Growth in Roads USD 100 billion allotted for GoI plans to invest USD 22.4 billion towards road infra in Key Govt Priority infrastructure in India North-East India during 2018-2020 Length of national Roads and Highways industry projected to exhibit CAGR Sector highways to reach o
Slide 20: Bharatmala: Stepping Stone Towards New India
Bharatmala: Stepping Stone Towards New India Components of BharatMala Road Length Outlay Programme (KM) (INR Bn) Corridor-based approach Economic Corridor Development 9,000 1,200 INR 3.8 tn of new projects out of INR 6.9 tn of overall spends Inter-Corridor and feeder roads 6,000 800 National corrido
Slide 21: The Irrigation Opportunity
The Irrigation Opportunity India accounts for ~17% of the total world’s population but only 4% of Drip Irrigation coverage 3.37 MHA the world’s fresh water resources: FICCI Micro Irrigation is amongst priority areas – exclusive fund being set Sprinkler Irrigation coverage 4.36 MHA up in NABARD Theor
Slide 22: Appendix – Business Highlights
Appendix – Business Highlights 21
Slide 23: De-Risked Business Model
De-Risked Business Model Short Max Project Duration: 24 mths Low Ticket Max Project Size < INR 250 Crores Duration Projects Projects Superior Profitability EBITDA Margins: 13%-14% 22
Slide 24: Improving Geographical Diversification
Improving Geographical Diversification FY14 Order Book – INR 5,360 mn Order Book (Dec’18) – INR 15,556.7 Mn Andhra Pradesh Telangana 1% Bangladesh 1% 5% Gujarat 4% Uttar Jharkhand Pradesh 3% 9% Maharashtr a 6% Karnataka 5% Tamil Nadu Karnataka 46% Kerala 12% 7% Tamil Nadu 73% Madhya Pradesh 1% Mahar
Slide 25: High Revenue Visibility
High Revenue Visibility Project Duration Project Duration by Sector 5-10 mths 2% 39% 11-15 25% mths 23% 11% 8% 16-24 2% 3% mths 87% 5-10 Mths 11-15 Mths 16-24 Mths Building Infra Water Mgmt Book to bill ratio: 4.8x 24
Slide 26: Efficient Operations
Efficient Operations Large Talent Pool Small Ticket Size Captive equipment Stringent Enhance Onsite Liquidity Operations Control Strategic Subcontracting Raise Accelerate Milestone Project Bills Faster Completion Accurate Project Modelling 25
Slide 27: Key Marquee Projects
Key Marquee Projects Power Projects & Civil Infrastructure Industries Water & Irrigation Buildings Work •Sub Station at •Atomic •BHEL – •Construction for •1000 units of homes KPTCL, Karnataka Energy, Kalpakkam Tirchy, Chennai contour canal for for IDPs in Sri Lanka •Udupi •Storm water drains to •MRP
Slide 28: Talent Driven Organization
Talent Driven Organization Started RPP Infra in 1988 Mr. P. Arulsundaram Civil Engineer by qualification Chairman & MD Practical experience of more than 23 years in construction industry Trustee in Erode District Builder’s Association Engineering College Masters in Business Administration (Finance)
Slide 29: Board of Directors
Board of Directors Bachelors Degree from National Institute of Technology, Fellow of Mr. K. Ravi Institution of Engineers & Certified Maintenance Professional Independent Director Has over 43 years of experience in the construction industry Bachelors Degree from National Institute of Technology Mr.
Slide 30: P&L Table
P&L TABLE INCOME STATEMENT (INR Mn) H1 FY19 FY18 FY17 Y-o-Y% Revenue 2,397 4,991 3,663 36% Expenses 2,090 4,342 3,180 37% EBITDA 307 649 483 34% EBITDA Margin 13% 13% 13% Depreciation 23 68 51 33% Finance Cost 97 193 168 15% Other Income 53 64 40 60% PBT 240 452 305 48% PBT Margin 10% 9% 8% Tax Expe
Slide 31: B/S Table
B/S TABLE Assets H1 FY 19 FY 18 FY 17 Equity and Liabilities H1 FY 19 FY 18 FY 17 Non-Current assets Property, plant and equipment 424 302 284 Equity Capital work in progress - 2 40 Equity Share Capital 226 226 226 Other Intangible assets - 1 0 Other Equity 1,788 1,645 1,524 Total equity 2,014 1,871
Slide 32: Thank You & Contact Us
Thank You & Contact Us Sheetal Khanduja Go India Advisors +91 9769364166 sheetal@goindiaadvisors.com Tanya Khosla Go India Advisors +91 9769387813 tanya@goindiaadvisors.com 31
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