Kec International Ltd. · NSE:KEC
Kec International — Investor Presentation (September 2024)
46 slides from Kec International's investor presentation, Sep 17, 2024
Slide 1: Cover letter to stock exchanges
KEC INTERNATIONAL LTD. RPG House 463, Dr. Annie Besant Road Worli, Mumbai 400030, India +91 22 66670200 kecindia@kecrpg.com www.kecrpg.com September 17, 2024 National Stock Exchange of India Limited BSE Limited Exchange Plaza Phiroze Jeejeebhoy Towers Bandra Kurla Complex Dalal Street, Fort Bandra (
Slide 2: KEC International Limited Corporate Presentation September 2024
hello happiness KEC International Limited Corporate Presentation September 2024
Slide 3: Disclaimer (1/2)
Disclaimer (1/2) This presentation has been prepared for general information purposes in respect of KEC International Limited (“Company”) together with its branches, its jointly controlled operations and its subsidiaries, as applicable (together, with the Company, the “Group”) only, without regard t
Slide 4: Disclaimer (2/2)
Disclaimer (2/2) This presentation is not a prospectus, a statement in lieu of a prospectus, an offering circular, an advertisement or an offer document under the Companies Act, 2013, as amended, the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2
Slide 5: Contents
1. Overview – RPG Group & KEC International Page 05-11 2. Business Overview Contents Page 12-27 3. Key Performance Highlights & Financial Overview Page 28-33 4. Environmental, Social and Governance (ESG) Page 34-36 5. Business Outlook & Way Forward Page 37-44
Slide 6: Overview – RPG Group & KEC International
1 Overview – RPG Group & KEC International 380kV Transmission line project at Saudi Arabia 5
Slide 7: RPG Group: Powered by Passion, Driven by Ethics
RPG Group: Powered by Passion, Driven by Ethics UNLEASHTALENT RPG Enterprises was founded in 1979. The group currently operates various businesses in Infrastructure, Technology, Life Sciences, Plantations and Tyre industries. The group has business history dating back to TOUCHLIVES 1820 AD in bankin
Slide 8: KEC International: Building Infrastructure for the World of Tomorrow
KEC International : Building Infrastructure for the World of Tomorrow $2.4 FOOTPRINT IN 7+ 110+ 300+ 83 7500+ 40+ BILLION ONGOING HAPPINESS EMPLOYEES DECADES COUNTRIES PROJECTS GLOBAL EPC SCORE NATIONALITIES MAJOR Transmission Civil Urban Infra Railways Oil & Gas Renewables Cables & Distribution 7
Slide 9: Diverse Portfolio of Offerings
Diverse Portfolio of Offerings Transmission Lines Factories Underground Cabling Water Airports Hospitals Substations Residential Buildings S&T Metros – Civil Metros - Tech Commercial Buildings OHE Track Laying Railway Bridges Data Centre TCAS - Kavach Automatic Signalling Solar Tunnel Ventilation Wa
Slide 10: Manufacturing Capabilities
Manufacturing Capabilities Tower Manufacturing – Nagpur, India Tower Manufacturing – Jabalpur, India Tower Manufacturing – Jaipur, India Cable Manufacturing – Vadodara, India Cable Manufacturing – Mysore, India Tower/ Hardware Manufacturing-Brazil Tower/ Poles Manufacturing - Mexico Tower Manufactur
Slide 11: Board of Directors
Board of Directors H. V. Goenka Chairman, Non Executive Director Vimal Kejriwal Arvind Singh M.S. Unnikrishnan Neera Saggi Nirupama Rao Managing Director Non Executive Non Executive Non Executive Non Executive & CEO Independent Director Independent Director Independent Director Independent Director
Slide 12: Management Team
Management Team Vimal Kejriwal Managing Director & CEO Rajeev Agarwal Milind Apte Anand Kulkarni Neeraj Nanda Ganesh Srinivasan Chief Financial Officer Chief Human Executive Director - President - President – Resources Officer Business Operations Emerging Business T&D Nagesh Veeturi Kaushal Kodesia
Slide 13: Business Overview
2 Business Overview Specialised Carbon Black Plant, Tamil Nadu, India 12
Slide 14: Diversified Order Book – Q1 FY25
Diversified Order Book – Q1 FY25 Order Book (₹ crore) T&D – Geographical Split 30 Jun’24 T&D ~16,790 Others 10% Civil ~10,097 Africa 5% Railways ~3,281 Americas 11% Renewables ~1,325 India Middle 53% Oil & Gas Pipelines ~549 East 21% Cables ~673 ~32,715 13
Slide 15: Power Transmission & Distribution (T&D)
Power Transmission & Distribution (T&D) • One of the largest Power T&D EPC companies in India with global presence • Transmission Lines up to 1,200 kV • Large size substations – Air Insulated, Gas Insulated & Hybrid Substations • Robust Order Book of Rs. 16,790 Cr to drive growth 765 kV Warora-Kurno
Slide 16: India T&D
India T&D • Government thrust on renewables and increase in power demand • Growth in order book of more than three times in last two years (Current Order book of over Rs. 8,800 Cr against ~Rs. 3,000 Cr in FY22) • Expanding tower manufacturing capacity in our Jaipur plant by 20% • Substantial tender
Slide 17: International T&D
International T&D • Large order book across Middle East, SAARC, Americas, East Asia Pacific, CIS and Europe • Secured tower supply orders from US and maiden order from Europe & Australia • Enhanced tower manufacturing capacity in Dubai by 20% 380 KV Transmission Line, Middle East 16
Slide 18: SAE Towers
SAE Towers STRUCTURES HARDWARE POLES TOWER DESIGN & TESTING Tower Solar Substation • Delivering close to double digit EBITDA Margins • Well positioned for securing orders for supply of towers and hardware with some of the Auction winners in Brazil • North America Electricity Transmission market expe
Slide 19: Civil
Civil Started in FY18, Business has grown to Rs. 4,370 Cr Revenue in FY24 and Rs. 10,097 Cr of Order Book as on 30 Jun’24 Metros – Viaduct, Stations Residential & Commercial Factories Defence & Depots Buildings Water Hydrocarbons Airports & Hospitals Data Centres 18
Slide 20: Urban Infra
Urban Infra Cabling & Ancillary works, Delhi – Meerut RRTS, RapidX Project Track works, Mumbai Metro Kolkata Metro ▪ KEC is executing projects in Urban Infra across Delhi, Chennai, Kochi, Mumbai, Kolkata, Patna, Indore and Bangalore, spanning 55 kms of viaduct, 43 metro stations, 3 depots, 150 kms o
Slide 21: Buildings & Factories
Buildings & Factories Paints Residential Project at Bengaluru, Karnataka Metals & Mining • Strengthened foothold in Residential and Commercial buildings with multiple orders – Currently developing 70+ Towers • Industrial - Strong presence in Metals & Mining sector; expanded presence beyond Cement an
Slide 22: Water
Water Water Intake System at Bheden, Odisha • Robust Order book comprising intake well, water treatment plants, pumping stations, reservoirs and cross-country water pipelines • Will provide water supply to ~6,00,000 households across various villages under the Jal Jeevan Mission 21
Slide 23: Data Centres
Data Centres Data Centre Project at Hyderabad, Telangana • Currently executing 4 Data centre projects for Govt. and Private clients • Integrated value proposition for clients including Civil Infra, MEP (Mechanical, Electrical, Plumbing), Substation, Cables and Solar • Significant opportunities in pi
Slide 24: Public Spaces & Defence
Public Spaces & Defence • Secured first order to build a Multispeciality Hospital on design-build basis • Building the prestigious Tuticorin Airport and Sri Nagar High Court • Defence projects for marquee clients Airport Hospital CCTV / PTZ Security Control Room RADAR Electrical Smart Power Fence (E
Slide 25: Railways
Railways • Complete turnkey solutions provider in the railway infrastructure EPC space • Selective approach in order intake considering the increased competition, customer and margin profile/ working capital - Order book subdued at Rs. 3,281 Cr • Focus on fast-tracking project closures, releasing wo
Slide 26: Renewables
Renewables • Secured our largest order in Solar for a 625 MWp Solar PV project in Rajasthan • Executing a 600 MWp solar project in Karnataka and setting up solar projects for a leading auto-ancillary company in India • Order book of over Rs. 1,325 Cr. • Building significant capabilities across Solar
Slide 27: Oil & Gas Pipelines
Oil & Gas Pipelines • Currently executing over 20 projects in oil & gas pipelines, slurry pipelines, and composite station work projects • Forayed into the international market by bagging maiden order in Africa • Widening Portfolio: o Secured two orders in the composite station works o Slurry pipeli
Slide 28: Cables
Cables EV Charging Cable Green Cable PVC facility in Vadodara, Gujarat • Delivered an impressive performance with highest ever Revenues, Order Intake and Profitability in FY24 • Executed a large transformation program for profitability improvement with a global management consultant • Strengthening
Slide 29: Key Performance Highlights & Financial Overview
3 Key Performance Highlights & Financial Overview Elevated Metro Rail Project in Chennai, CMRL 28
Slide 30: Historical Performance
Historical Performance Revenue (₹ Crore) PAT (₹ Crore) Order Book (₹ Crore) 19,914 30,553 29,644 17,282 23,716 13,742 332 347 176 FY22 FY23 FY24 FY22 FY23 FY24 FY22 FY23 FY24 ❑ Delivering Sustained Growth across Revenue, PAT (Excluding COVID impact) and Order Book ❑ Strong performance in FY24 ▪ Reco
Slide 31: Strengthening Balance Sheet
Strengthening Balance Sheet Revenue vs Net Debt Comparison (₹ Crore) Improving Leverage Ratios (Times) 19,914 Net Debt/ Equity Net Debt/ EBITDA 17,282 6.3 6.0 13,742 5.3 4.2 4,765 4,985 5,090 1.3 1.3 1.6 1.2 Mar'22 Mar'23 Mar'24 Mar'22 Mar'23 Sep'23 Mar'24 • Over last two years, Revenue has grown by
Slide 32: Financial Highlights Q1 FY25
Financial Highlights Q1 FY25 Revenues EBITDA PAT Order Intake 6% 20% 107% 70% YoY YoY YoY YoY % 6.5% % 1.9% 4,512 Cr 7,664 Cr 294 Cr 88 Cr ▪ Delivering consistent growth ▪ Sequential improvement in ▪ Robust growth in bottom line ▪ Q1 order intake growth of in Revenues EBITDA margin quarter on - PAT
Slide 33: Improving Trajectory of Quarterly Performance
Improving Trajectory of Quarterly Performance Revenue (₹ Crore) EBITDA (₹ Crore) and EBITDA Margin (%) Q1 Revenue CAGR of 17% EBITDA Margins Improved by 140 bps; CAGR 32% 4,244 4,512 6.5% 3,318 5.8% 5.1% 244 294 168 Q1 FY23 Q1 FY24 Q1 FY25 Q1 FY23 Q1 FY24 Q1 FY25 Order Intake (₹ Crore) PAT (₹ Crore)
Slide 34: Key Strategic Moves
Key Strategic Moves Grow T&D business - Leverage market tailwinds T&D Order book grows by 1.5 times to over Rs. 16,500 Cr International expansion of Railways & Oil & Gas businesses have commenced execution on their International orders Non-T&D businesses Secured orders in Hospitals, Commercial build
Slide 35: Environmental, Social and Governance (ESG)
4 Environmental, Social and Governance (ESG) Pehlay Akshar Schooling 34
Slide 36: Substantial Improvement in ESG Ratings
Substantial Improvement in ESG Ratings Environment Social Governance • Increased Solar footprint across • Increase in Happiness Quotient to • Diversified and independent board factories to ~25% 83% from 81% of 10 members • Achieved benchmark initiatives • Launched revamped Rewards & • Enhanced Gover
Slide 37: ESG & Sustainability Goals and Status
ESG & Sustainability Goals and Status Happiness Diversity & Occupational Corporate Social Quotient Inclusion Heath & Safety Responsibility Target: Increase Happiness Target: Increase in diversity by Target: Work towards the Target: Reach 2 lac CSR Quotient to 85% by FY26 25% by FY26 goal of achievin
Slide 38: Outlook & Way Forward
5 Outlook & Way Forward Transmission line project in Saudi Arabia37
Slide 39: Where are we seeing Growth?
Where are we seeing Growth? Power Civil Railways T&D Urban Cables Infrastructure Renewables ✓ Robust Outlook Across Businesses 38
Slide 40: Power T&D – Multi Year Opportunity
Power T&D – Multi Year Opportunity Growing Demand of Electrification of Focus on Technological International Electricity Energy & Renewable Energy Developments Opportunities Urbanisation • Increase in Organic • Significant demand • Focus on • Government's vision • Cross-border demand for power in T&
Slide 41: Civil – Massive Opportunities across Segments
Civil – Massive Opportunities across Segments Buildings & Factories Water • Real estate boom: Opportunities • Increasing allocation for Jal across residential and commercial Jeevan Mission (Rural & Urban) of Govt. for water supply; • Uptick in Private industrial capex Increase in Infra • Opportuniti
Slide 42: Railways – Ramping Up
Railways – Ramping Up Conventional Emerging Areas – Safety & Speed Technologically Enabled - Metros • In the Union Budget FY25, the • Govt. focus on increasing capacity, • Significant opportunities in government has allocated Rs 2.7 speed, and safety of Indian Railways technologically enabled areas
Slide 43: Renewables – Growing Presence
Renewables – Growing Presence India's ambition to achieve Significant Untapped Solar Solar and Wind to contribute 500 GW of renewable Potential in India 96% of global power capacity energy capacity by 2030 additions over next 5 years Green Hydrogen Mission Market becoming more Substantial opportunit
Slide 44: Key Strengths – Well Positioned to Deliver on Promise
Key Strengths – Well Positioned to Deliver on Promise Well Diversified across Businesses and Geographies Strong Project Management & Execution Capabilities Integrated Global Supply Chain Network Unparalleled Manufacturing, Engineering & Design Capabilities Preferred Contractor for Ahead of Schedule
Slide 45: Seize the Future
Seize the Future Our Aspirations Amongst the Top Sustainable Value Well Diversified with players in the Industry Leading Resilient Creation for all Multiple Engines of Infrastructure EPC Profitable Growth Balance Sheet Stakeholders Growth Industry in India Enablers Organic Opportunities Inorganic Op
Slide 46: Thank You
THANK YOU Global Footprint in 110+ countries* *Includes EPC and Supply Follow us on: A logo of a camera Description automatically generated Registered Office RPG House, 463, Dr. Annie Besant Road, Worli, Mumbai - 400 030. Phone: +91-22-6667 0200 Email: kecindia@kecrpg.com www.kecrpg.com
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