Slide 1: Exchange filing cover letter
6RC KNR Constructions Limited. Date: 14thAugust 2019 Ref: KNRCL/SD/2019/129 & 130 To To Dept. of Corporate Services, ational Stock Exchange of India Limited BSE Limited "Exchange Plaza", P J Towers, Dalal Street, Bandra Kurla Complex, Fort, MUMBAI - 400001 Bandra (E), MUMBAI - 400051 BSE Code: 53294
Slide 2: Investor Presentation August 2019
AUGUST 2019 KNR Constructions Limited Investor Presentation
Slide 3: Disclaimer
2 KNR Constructions Limited Disclaimer This presentation and the accompanying slides (the “Presentation”), which have been prepared by KNR Constructions Limited (the “Company”), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purcha
Slide 4: Key Highlights & Result Update
3 KNR Constructions Limited KEY HIGHLIGHTS & RESULT UPDATE
Slide 5: Standalone Financial Highlights
4 KNR Constructions Limited Standalone Financial Highlights Revenue (Rs. Million)* EBITDA (Rs. Million) EBITDA Margins PAT (Rs. Million)* 5,564 1,098 19.7% 19.4% 740 4,646 900 477 Q1 FY19 Q1 FY20 Q1 FY19 Q1 FY20 Q1 FY19 Q1 FY20 Q1 FY19 Q1 FY20 • Revenue for the quarter was impacted as there was a de
Slide 6: Financial Results
5 KNR Constructions Limited Financial Results Standalone Consolidated Rs. Million Q1 FY20 Q1 FY19 YoY Q1 FY20 Q1 FY19 YoY Total Revenue 4,646.0 5,563.6 -16% 5,307.2 5,918.8 -10% Operating Expenses 3,053.2 3,585.2 3,393.5 3,628.6 Employees Expenses 271.4 195.9 275.4 200.4 Other Expenditure 421.2 684.
Slide 7: Key Updates
6 KNR Constructions Limited Key Updates Company has a Portfolio of 6 HAM Projects worth of Rs.65,312.1 Million (BPC) Recently Won an NHAI HAM project worth Rs. 920 Crores (BPC) in the state of Tamil Nadu ▪ Concession Agreement is yet to be signed Received Appointed for the following projects ▪ KNR T
Slide 8: Business Overview
7 KNR Constructions Limited BUSINESS OVERVIEW
Slide 9: Business Overview
8 KNR Constructions Limited Business Overview One of the leading companies providing Engineering, Procurement and Construction (EPC) services Major Projects in Roads & Highways – one of the fast growing sector Established presence in Irrigation and Urban Water Infrastructure Management VISION To dev
Slide 10: Transformation
9 KNR Constructions Limited Transformation • Received the biggest work • Crossed Revenue of Rs. with a order value of Rs. 8,250 2016 10,000 mn on Standalone 1995 • Incorporated & 2010 mn from Sadbhav Engineering Basis Commenced EPC Business Ltd for construction of Bijapur Hungund Road project • Bagg
Slide 11: Management
10 KNR Constructions Limited Management Mr. K. Narasimha Reddy – Founder Promoter & Managing Director Over 50 years of experience in the Highway sector Started career in 1968 and engaged in the business of undertaking civil and mechanical contracts Extensive knowledge and experience in multi project
Slide 12: Supported by Professional Team
11 KNR Constructions Limited Supported by Professional Team Mr. T.L. Verma Mr. V. N. Ramana (Sr. Vice President - Projects) (Sr. Vice President - Technical) A Bachelor of Engineering (BE) from MITS Gwalior (MP) with M. Tech in Civil Engineering from IIT Madras with over 30 Over 35 years of total exp
Slide 13: Key Business Strengths
12 KNR Constructions Limited KEY BUSINESS STRENGTHS
Slide 14: Significant Experience and Strong Track Record in Timely Execution
1 SIGNIFICANT EXPERIENCE AND STRONG TRACK RECORD IN TIMELY EXECUTION OF PROJECTS KNR Constructions Limited 13 Project Execution Top management’s active involvement at all stages of Project execution o Selection of Major Raw Material o Selection of construction Camp location Faster Decision making to
Slide 15: Pan India Project Execution Capability
14 KNR Constructions Limited Pan India Project Execution* Capability Bihar Arunachal Pradesh No of Projects 1 No of Projects 1 Uttar Pradesh Value of Projects Rs. 1,411 mn Value of Projects Rs. 920 mn No of Projects 4 Value of Projects Rs. 1,704 mn Assam No of Projects 2 Madhya Pradesh Value of Proj
Slide 16: Project Execution Highlights
15 KNR Constructions Limited Project Execution Highlights Cement Concrete Road • Completed Widening to 4/6 lanes and Strengthening of Existing two lane carriageway of NH – 5 in the State of Orissa for a length of 56.0 Kms with total contract value of work is Rs 2,310 mn • Existing road was widened &
Slide 17: World Class Construction Equipments
2 WORLD CLASS CONSTRUCTION EQUIPMENTS USE OF RIGHTRIGHT TOOLS FOR WORK KNR Constructions Limited 16 In-house Construction Equipment Sl. No. Name Of The Machinery Qty 1 Tippers & Tankers 1038 2 Excavators 309 3 Generators 194 4 Concrete Mixers And Pumps 127 5 Compactors 124 6 Loaders 71 7 Drillers &
Slide 18: In-house Team of 1,642 Qualified Employees
3 IN-HOUSE TEAM OF 1,642 QUALIFIED AND EXPERIENCED EMPLOYEES LED BY PROVEN MANAGEMENT TEAM KNR Constructions Limited 17 In-house Execution Team 5% 32% 35% Project Engineering Site Supervision Site Engineers Equipment Operators 8% Admin & Office Staff 20%
Slide 19: Host of Marquee Clients
4 HOST OF MARQUE CLIENTS KNR Constructions Limited 18 Reputed Clientele National Andhra Pradesh Ministry of Hyderabad Karnataka Karnataka Road Highways Road Development Road Transport Growth State Highway Development Authority of Corporation & Highways Corridor Improvement Corporation India (NHAI) (
Slide 20: BOT Portfolio
19 KNR Constructions Limited BOT PORTFOLIO
Slide 21: BOT Portfolio – Annuity Projects
20 KNR Constructions Limited BOT Portfolio – Annuity Projects Particulars Patel KNR Infrastructures limited (PKIL) Patel KNR Heavy Infrastructures Limited (PKHIL) Stake 40% 40% Project Details Project Type Road-Annuity Road-Annuity State Karnataka Telangana JV Partner PEL PEIL Client NHAI NHAI Lengt
Slide 22: BOT Portfolio – Toll Projects
21 KNR Constructions Limited BOT Portfolio – Toll Projects Particulars KNR Walayar Tollways Private Limited KNR Muzaffarpur Barauni Tollway Private Limited Stake 100% 51% Project Details Project Type Road-Toll Road-Toll State Kerala Bihar JV Partner - JKM Infra Project Ltd Client NHAI NHAI No of Lan
Slide 23: HAM Portfolio
22 KNR Constructions Limited HAM Portfolio Meensurutti to Ramsanpalle to Oddanchatram to Particulars Trichy to Kallagam Chittor to Mallavaram Magadi to Somwarpeth Chidambaram Mangloor Madathukulam* KNR Srirangam Infra KNR Chidambaram Infra KNR Tirumala Infra KNR Shankarampet Projects KNR Somwarpeth
Slide 24: Details of SPA with Cube
23 KNR Constructions Limited Details of SPA with Cube^ Particulars Total Equity Equity Investment – Equity Investment – Consideration for Investment Cube’s Share (49%) KNR’s Share (51%) KNR’s 51% stake (Rs. mn) (Rs. mn) (Rs. mn) (Rs. mn)* KNR Sriranagm Infra Pvt Ltd 962.3 471.5 490.8 736.1 1.50 time
Slide 25: Salient Features of the Deal
24 KNR Constructions Limited Salient Features of the Deal Entered into Share Purchase Agreement with Cube for the above mentioned 3 SPV's (100% wholly owned subsidiary the Company) The Company in a phased manner will sell to Cube its entire shareholding in the SPV Sale is subject to the shareholding
Slide 26: Order Book & Business Strategy
25 KNR Constructions Limited ORDER BOOK & BUSINESS STRATEGY
Slide 27: Order-book Break-up
26 KNR Constructions Limited Order-book Break-up Captive (HAM Projects) State Govt. 54% 32% Non-Captive 46% Central Govt. 14% Captive (HAM Projects) State Govt. Central Govt. ORDER BOOK OF RS. 46,338 MILLION AS ON 30TH JUNE 2019
Slide 28: Order-book Highlights
27 KNR Constructions Limited Order-book Highlights Irrigation Roads - Non Captive 21% Key Projects Rs. Mn 25% Chittor to Mallavarm Project (HAM) 9,867 Others 0% Ramsanpalle to Mangloor Project (HAM) 8,080 Roads - Captive Trichy to Kallagam Project (HAM) 7,212 54% Hubli – Hospet Section of NH - 63 3,
Slide 29: HAM Projects Won
28 KNR Constructions Limited HAM Projects Won 18,850^ 65,188 Rs. million Bid Project Cost HAM Projects Not Included in Order Book (Rs. mn) 46,338 2 Laning with Paved Shoulder of Meensurutti to Chidambaram Section of NH-227 under Bhartmala Pariyojana, Phase I (Residual 4,820.4 Project under NHDP) in
Slide 30: Order-book: State-wise
29 KNR Constructions Limited Order-book: State-wise Arunachal Pradesh No of Projects 1 Balance Value Rs. 1,251 mn Karnataka No of Projects 5 Balance Value Rs. 5,266 mn AP & Telangana No of Projects 8 Balance Value Rs. 27,732 mn Kerala No of Projects 3 Balance Value Rs. 1,045 mn Tamil Nadu No of Proj
Slide 31: Business Strategy
30 KNR Constructions Limited Business Strategy Focus on Projects involving Higher degree of engineering skills Focus on securing Continuously explores EPC contracts from growth opportunities reputed Clients and by forming strategic Concessionaire Joint Ventures (JVs) Capitalise on Execute all the Op
Slide 32: Financial Highlights
31 KNR Constructions Limited FINANCIAL HIGHLIGHTS
Slide 33: Financial Results
32 KNR Constructions Limited Financial Results Standalone Consolidated Rs. Million FY19 FY18 YoY FY19 FY18 YoY Total Revenue * 21,372.6 19,316.5 11% 22,915.0 20,696.0 11% Operating Expenses 13,881.0 12,854.4 14,051.4 13,390.5 Employees Expenses 928.6 721.2 947.7 739.6 Other Expenditure 2,293.4 1,901
Slide 34: Standalone Balance Sheet
33 KNR Constructions Limited Standalone Balance Sheet ASSETS (Rs. Millions) Mar-19 Mar-18 EQUITY & LIABILITIES (Rs. Millions) Mar-19 Mar-18 Non-Current Assets Equity Property, plant and equipment 3,709.2 3,313.7 Equity Share capital 281.2 281.2 Capital work-in-progress 0.1 0.2 Other equity 13,861.9
Slide 35: Consolidated Balance Sheet
34 KNR Constructions Limited Consolidated Balance Sheet ASSETS (Rs. Millions) Mar-19 Mar-18 EQUITY & LIABILITIES (Rs. Millions) Mar-19 Mar-18 Non-current assets Equity Property, plant and equipment 3,746.0 3,336.9 Equity Share capital 281.2 281.2 Capital work-in-progress 0.1 11.5 Instruments Entirel
Slide 36: Standalone Financial Highlights
35 KNR Constructions Limited Standalone Financial Highlights* Financial Year 2010 2011 2012 2013 2014 2015 2016^ 2017^ 2018^ 2019^ Rs. 7,125 Rs. 7,930 Rs. 7,505 Rs. 6,921 Rs. 8,348 Rs. 8,761 Rs. 9,025 Rs. 15,411 Rs. 19,317 Rs.21,373 Turnover $118.6 $132.0 $125.0 $115.2 $139.0 $140.0 $136.1 $238.3 $2
Slide 37: Standalone Financial Highlights
36 KNR Constructions Limited Standalone Financial Highlights Revenue & EBITDA (Margin %) EBITDA Margin (%) 15.7% 17.1% 17.8% 16.8% 15.1% 14.4% 16.9% 14.9% 19.9% 20.0% 21,373 19,317 15,411 7,930 8,348 8,761 9,026 7,125 7,505 6,921 EBITDA 3,839 4,270 1,121 1,356 1,338 1,164 1,258 1,261 1,529 2,296 Rev
Slide 38: Standalone Net Working Capital Days
37 KNR Constructions Limited Standalone Net Working Capital Days 79 69 53 52 48 52 40 42 43 41 36 36 28 26 23 18 20 19 20 20 16 16 15 15 15 17 16 13 14 12 14 7 98 10 66 45 64 51 74 53 39 45 40 58 Mar-10 Mar-11 Mar-12 Mar-13 Mar-14 Mar-15 Mar-16 Mar-17 Mar-18 Mar-19 Jun-19 Inventory Debtors Creditors
Slide 39: Shareholding Pattern as on 30th June 2019
38 KNR Constructions Limited Shareholding Pattern as on 30th June 2019 11.51% Shareholders Holding more than 1% of the Equity % to Equity (Other than Promoters) ICICI Prudential Mutual Fund 6.71% HDFC Mutual Fund 6.40% 30.17% DSP Blackrock Mutual Fund 6.30% 55.17% L&T Mutual Fund 2.16% Franklin Mutu
Slide 40: Project Gallery
39 KNR Constructions Limited PROJECT GALLERY
Slide 41: Completed Projects
40 KNR Constructions Limited Completed Projects Eturunagaram Bridge over river KNR Walayar Toll Road Godavari
Slide 42: Completed Projects
41 KNR Constructions Limited Completed Projects Walayar Toll plaza Muzaffarpur-Barauni Road Project
Slide 43: Under-Construction Projects
42 KNR Constructions Limited Under-Construction Projects Coimbatore Flyover Coimbatore Flyover
Slide 44: Under-Construction Projects
46 KNR Constructions Limited Under-Construction Projects Flyover in Madurai - Salem Flyover Ramanathpuram Section
Slide 45: Equipments
47 KNR Constructions Limited Equipments Salem work yard Tippers on site
Slide 46: Irrigation Projects
48 KNR Constructions Limited Irrigation Projects Palamurru lift Irrigation
Slide 47: Irrigation Projects
49 KNR Constructions Limited Irrigation Projects Palamurru lift Irrigation
Slide 48: For further information, please contact
50 KNR Constructions Limited For further information, please contact Company : Investor Relations Advisors : KNR Constructions Ltd. CIN: L74210TG1995PLC130199 Strategic Growth Advisors Pvt. Ltd. Mr. K. Venkata Ram Rao CIN: U74140MH2010PTC204285 (GM - Finance & Accounts) Mr. Jigar Kavaiya / Mr. Rohan