Slide 1: Cover letter to stock exchanges
O 6RC KNR Constructions Limited. Date: 30th May 2019 Ref: KNRCL/SD/2019/ 89 & 90 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: 532942
Slide 2: Investor Presentation May 2019
MAY 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) PAT (Rs. Million) +15% +21% +16% 7,157 1,441 922 6,244 1,187 797 Q4 FY18 Q4 FY19 Q4 FY18 Q4 FY19 Q4 FY18 Q4 FY19 +11% +11% -3% 21,373 4,270 2,721 2,633 19,317 3,839 FY18 FY19 FY18 FY19 FY18 FY19 *
Slide 6: Standalone Financial Results
5 KNR Constructions Limited Standalone Financial Results Rs. Million Q4 FY19 Q4 FY18 YoY FY19 FY18 YoY Net Sales 6,954.8 5,932.8 21,028.9 18,756.4 Other Operating Income * 202.4 310.9 343.6 560.2 Total Revenue 7,157.1 6,243.7 15% 21,372.6 19,316.5 11% Operating Expenses 4,862.2 4,120.4 13,881.0 12,8
Slide 7: Standalone Balance Sheet
6 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 1
Slide 8: Key Updates
7 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 9: Business Overview
8 KNR Constructions Limited BUSINESS OVERVIEW
Slide 10: Business Overview
9 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 20 yea
Slide 11: Transformation
10 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 • Bag
Slide 12: Management
11 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 13: Supported by Professional Team
12 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 14: Key Business Strengths
13 KNR Constructions Limited KEY BUSINESS STRENGTHS
Slide 15: Significant Experience and Strong Track Record in Timely Execution
1 SIGNIFICANT EXPERIENCE AND STRONG TRACK RECORD IN TIMELY EXECUTION OF PROJECTS KNR Constructions Limited 14 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 16: Pan India Project Execution Capability
15 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 17: Project Execution Highlights
16 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 18: World Class Construction Equipments
2 WORLD CLASS CONSTRUCTION EQUIPMENTS USE OF RIGHTRIGHT TOOLS FOR WORK KNR Constructions Limited 17 In-house Construction Equipment Sl. No. Name Of The Machinery Qty 1 Tippers & Tankers 941 2 Excavators 278 3 Generators 183 4 Concrete Mixers And Pumps 121 5 Compactors 102 6 Loaders 66 7 Drillers & B
Slide 19: 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 18 In-house Execution Team 5% 32% 35% Project Engineering Site Supervision Site Engineers Equipment Operators 8% Admin & Office Staff 20%
Slide 20: Host of Marque Clients
4 HOST OF MARQUE CLIENTS KNR Constructions Limited 19 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 21: BOT Portfolio
20 KNR Constructions Limited BOT PORTFOLIO
Slide 22: BOT Portfolio – Annuity Projects
21 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 23: BOT Portfolio – Toll Projects
22 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 24: HAM Portfolio
23 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 25: Details of SPA with Cube
24 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 26: Salient Features of the Deal
25 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 27: Order Book & Business Strategy
26 KNR Constructions Limited ORDER BOOK & BUSINESS STRATEGY
Slide 28: Order-book Break-up
27 KNR Constructions Limited Order-book Break-up Captive (HAM Projects) Central Govt. 66% 17% Non-Captive 34% State Govt. 17% Captive (HAM Projects) State Govt. Central Govt. ORDER BOOK OF RS. 40,156 MILLION AS ON 31ST MARCH 2019
Slide 29: Order-book Highlights
28 KNR Constructions Limited Order-book Highlights Roads - Non Captive Irrigation Key Projects Rs. Mn 96% 4% Chittor to Mallavarm Project (HAM) 10,632 Others 0% Ramsanpalle to Mangloor Project (HAM) 8,536 Trichy to Kallagam Project (HAM) 7,446 Hubli – Hospet Section of NH - 63 3,411 Flyover at Raman
Slide 30: HAM Projects Won
29 KNR Constructions Limited HAM Projects Won 18,850^ 59,006 Rs. million Bid Project Cost HAM Projects Not Included in Order Book (Rs. mn) 2 Laning with Paved Shoulder of Meensurutti to Chidambaram 40,156 Section of NH-227 under Bhartmala Pariyojana, Phase I (Residual 4,820.4 Project under NHDP) in
Slide 31: Order-book: State-wise
30 KNR Constructions Limited Order-book: State-wise Arunachal Pradesh No of Projects 1 Balance Value Rs. 1,412 mn Karnataka No of Projects 7 Balance Value Rs. 5,300 mn AP & Telangana No of Projects 8 Balance Value Rs. 20,944 mn Kerala No of Projects 3 Balance Value Rs. 1,036 mn Tamil Nadu No of Proj
Slide 32: Business Strategy
31 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 33: Financial Highlights
32 KNR Constructions Limited FINANCIAL HIGHLIGHTS
Slide 34: Consolidated Financial Results
33 KNR Constructions Limited Consolidated Financial Results Rs. Million FY19 FY18 YoY Total Revenue 22,915.0 20,696.0 11% Operating Expenses 14,051.4 13,390.5 Employees Expenses 947.7 739.6 Other Expenditure 2,549.2 2,103.4 EBITDA 5,366.8 4,462.5 20% EBITDA margin 23.4% 21.6% Other Income 743.4 557.
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 43 41 36 30 26 25 28 26 23 18 20 19 18 20 16 16 15 15 15 17 16 16 13 14 12 14 14 12 12 10 66 11 7 98 45 64 51 74 53 39 45 28 20 20 40 Mar-10 Mar-11 Mar-12 Mar-13 Mar-14 Mar-15 Mar-16 Mar-17 Mar-18 Jun-18 Sep-18 Dec
Slide 39: Shareholding Pattern as on 31st March 2019
38 KNR Constructions Limited Shareholding Pattern as on 31st March 2019 Shareholders Holding more than 1% of the Equity 12.13% % to Equity (Other than Promoters) ICICI Prudential Mutual Fund 6.67% DSP Blackrock Mutual Fund 6.42% HDFC Mutual Fund 6.40% 29.66% 55.17% L&T Mutual Fund 2.22% Tata Mutual
Slide 40: Other Businesses
39 KNR Constructions Limited Other Businesses Strong growth opportunity in development of Agricultural Infrastructure Execution of Irrigation & Water Supply Projects with Joint Venture Partners Executed 3 Projects in Telangana & 1 Project in Bihar Executed an Urban Water Infrastructure project in th
Slide 41: Project Gallery
40 KNR Constructions Limited PROJECT GALLERY
Slide 42: Completed Projects
41 KNR Constructions Limited Completed Projects Eturunagaram Bridge over river KNR Walayar Toll Road Godavari
Slide 43: Completed Projects
42 KNR Constructions Limited Completed Projects Walayar Toll plaza Muzaffarpur-Barauni Road Project
Slide 44: Under-Construction Projects
43 KNR Constructions Limited Under-Construction Projects Coimbatore Flyover Coimbatore Flyover
Slide 45: Under-Construction Projects
46 KNR Constructions Limited Under-Construction Projects Flyover in Madurai - Salem Flyover Ramanathpuram Section
Slide 46: Equipments
47 KNR Constructions Limited Equipments Salem work yard Tippers on site
Slide 47: Irrigation Projects
48 KNR Constructions Limited Irrigation Projects Palamurru lift Irrigation
Slide 48: Irrigation Projects
49 KNR Constructions Limited Irrigation Projects Palamurru lift Irrigation
Slide 49: 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