Ncc Limited · NSE:NCC
Ncc — Investor Presentation (December 2017)
32 slides from Ncc's investor presentation, December 2017
Slide 1: NCC Limited Corporate Presentation
NCC Limited Corporate Presentation December 2017
Slide 2: Disclaimer
DISCLAIMER No representation or warranty, express or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information or opinions contained in this presentation. Such information and opinions are in all events not current after the d
Slide 3: Table of Contents
Table of Contents Page No. 1 Company Overview 4 2 Business Verticals 7 3 Key Investment Highlights 15 4 Company Strategy 25 5 Annexure 28 Copyright © 2017 NCC Limited 3
Slide 4: Company Overview
COMPANY OVERVIEW
Slide 5: Company Snapshot (1/2)
Company Snapshot (1/2) Overview Stock price performance – Last 12 months Rebased to 100 Delivery Volume in '000s (RHS) ‘000s • One of the largest Indian construction companies in terms of revenues NCC Ltd 9,000 Nifty 50 • Well diversified order book with presence across buildings & housing, roads, 8
Slide 6: Company Snapshot (2/2)
Company Snapshot (2/2) Key Milestones Group Business Structure 2018 Fresh Order accretion of INR 201.52 bn in NCCL Group Revenue first 9 months of FY18 2017 Secured 1st MDO Order NCC Ltd (Standalone) Subsidiary Companies 2012 Order Book crosses INR 201.95 bn Revenue Contribution – 88% Revenue Contri
Slide 7: Business Verticals
BUSINESS VERTICALS
Slide 8: Operating Divisions
Operating Divisions Building & Water & Roads Electrical Irrigation International Housing Environment • Industrial buildings • Highways • Water supply • Transmission and • Dams & Reservoirs • Roads • Commercial • Highway projects distribution lines • Canals • Buildings buildings realignment and • Wat
Slide 9: Building & Housing
Building & Housing Order Book (As on September 30, 2017) Details of Major Projects Completed Project Cost Project Name Location (INR bn) Building & Gulbarga, ESIC Hospital & Medical College 10.73 Karnataka Housing, INR 92.08 bn 42.03% Infrastructure Development Works, Arunachal 7.76 Ministry of Defe
Slide 10: Water & Environment
Water & Environment Order Book (As on September 30, 2017) Details of Major Projects Completed Water & Project Cost Project Name Location Environmen (INR bn) t, 21.10% INR 46.22 bn Water Supply Project – Sauni Yojana Gujarat 8.07 –Package -2 Water Supply Project - Sauni Yojna Gujarat 4.28 – Package 1
Slide 11: Irrigation
Irrigation Order Book (As on September 30, 2017) Details of Major Projects Completed Irrigation, 12.10% Project Cost INR 26.50 bn Project Name Location (INR bn) Gandak Canal Project Bihar 5.31 Sardar Sarovar Narmada Nigam Ltd. Gujarat 4.47 Water Resources Dept. Birpur Bihar 1.53 Key Clientele Detail
Slide 12: Electrical
Electrical Order Book (As on September 30, 2017) Details of Major Projects Completed Electrical, Project Cost 8.40% Project Name Location (INR bn) INR 18.40 bn TG&D Corpn Ltd, Chennai-Erode Tamilnadu 2.54 PVNL- RGGY - Phase II Allahabad Uttar Pradesh 1.65 Power Grid Corpn.of India Ltd. Andhra Prades
Slide 13: Roads
Roads Order Book (As on September 30, 2017) Details of Major Projects Completed INR 6.84 bn Roads, Project Cost 3.12% Project Name Location (INR bn) Agra Lucknow Expressways Uttar Pradesh 15.60 Outer ring Road Project - package II Hyderabad 7.61 & III Key Clientele Details of Major Projects Under Ex
Slide 14: Pan India Presence
Pan India Presence Delhi Lucknow Ranchi Bhopal Ahmadabad Kolkata Bhubaneswar Mumbai Vijayawada Bangalore Hyderabad Kochi Chennai Regional offices controlled by Directors and / or senior management facilitate efficient and timely decision making Copyright © 2017 NCC Limited 14
Slide 15: Key Investment Highlights
KEY INVESTMENT HIGHLIGHTS
Slide 16: Key Investment Highlights
Key Investment Highlights 1 • More than three decades of experience in completing numerous construction projects across Strong Execution Track Record roads, buildings, bridges, irrigation & mining etc with timely execution 2 • Robust and regionally diversified order book diversified across24 states
Slide 17: Strong Track Record
1 Strong Track Record Details of Major Projects Completed Ability to Win Large Projects Project Cost Year of Project Name Location Demonstrated ability to bid for and win large projects (INR bn) completion Agra Lucknow Expressways Uttar Pradesh 15.60 2017-18 • Outer ring Road Projects in Amaravthi C
Slide 18: Diversified Order Book
2 Diversified Order Book Total Order Book: INR 219.09 bn (as on Sept 30, 2017) Regionally Diversified Across 24 States International, 3% Others, 3% Roads, 3% Mining, 7% HP – Electrical, 8% Building & 0.05% DL – 2.17% PB – Housing, 42% 0.89% UK – Irrigation, 0.41% SK – 0.42% 12% AR – 0.11% Water & UP
Slide 19: Robust Financials with Strong Credit Rating (1/2)
3 Robust Financials with Strong Credit Rating (1/2) Revenue (INR mn) Margins 82,969 83,252 78,921 8.9% 8.7% 8.9% 7.8% 33,138 2.8% 2.8% 2.5% 1.3% FY15 FY16 FY17 H1 FY 18 FY15 FY 16 FY 17 H1 FY 18 EBITDA Margin PAT Margin Return on Equity Leverage 35000 8.0% 7.4% Total Debt (INR mn) D/E (x) 34,423 250
Slide 20: Robust Financials with Strong Credit Rating (2/2)
3 Robust Financials with Strong Credit Rating (2/2) Reduction in Finance Cost (INR mn) Finance Cost Comprises of: 5,736 5,089 • Interest on Working Capital Loans 3,957 • Interest on Mobilization Advances • Commission on Bank Guarantees and Letter of Credits 1,749 • Other Financial Charges FY15 FY16
Slide 21: Professional Board (1/2)
4 Professional Board (1/2) Mr Hemant M Nerurkar Mr A A V Ranga Raju Mr A G K Raju Chairman & Independent Director Managing Director Executive Director He is a retired corporate executive with 44 years He has experience of 43 years in the construction He has 35 years of experience in the construction
Slide 22: Professional Board (2/2)
4 Professional Board (2/2) Mr Amit Dixit Mr Utpal Sheth Mr Neeraj Mohan Non-Executive Director Non-Executive Director Non-Executive Director He is Joint Managing Director of Blackstone India He is an investment analyst with 23 years of work He is a Nominee Director of Blackstone Group Pvt Ltd and is
Slide 23: Favorable Industry Dynamics (1/2)
5 Favorable Industry Dynamics (1/2) Roads Outlook on Construction / Execution by NHAI (in km) 6,000 5,000 5,053 • Expected investment of INR 4.3 tn in national highways from FY18-22 4,000 4,678 • Expected investment of INR 4.4 tn in state highways from FY17-21 3,577 • Momentum on account of completi
Slide 24: Favorable Industry Dynamics (2/2)
5 Favorable Industry Dynamics (2/2) Irrigation 2 • Investments to increase 1.4 times to touch INR 3 tn between FY18-20 160 Budget Allocation for FY18 (INR bn) 1.8 1.8 140 143 1.7 • With only 50% of the land irrigated, there is a huge unharnessed 1.6 1.6 120 124 potential for further investments 121
Slide 25: Company Strategy
COMPANY STRATEGY
Slide 26: Company Strategy
Company Strategy • Focus on core competency of the Company i.e. Construction Business (EPC and Item rate contracts) with Asset Light Business asset light strategy Model • Monetize BOT and Real Estate Assets exposure on a case to case basis • Limited exposure to selective HAM projects in Roads • With
Slide 27: Thank you
Thank you
Slide 28: Annexures
ANNEXURES
Slide 29: Division Wise Execution & Order book As on 30.09.2017
Division Wise Execution & Order book As on 30.09.2017 Others Buildings & Water & (Metals, Particulars Irrigation Electrical Roads Mining International TOTAL Housing Environment Power, Railways ) (INR bn) Orders on Hand 77.30 32.05 19.04 16.09 5.63 18.74 2.43 9.62 180.90 as on 01.04.2017 43% 18% 11%
Slide 30: Profit & Loss Statement
Profit & Loss Statement All Figures in INR mn Year Ended 31st March, 6months PARTICULARS IGAAP Ind AS Ind AS 2014-15 2015-16 2016-17 FY 17-18 H1 Income Revenue from Operations 82,969.43 83,251.55 78,920.73 33,138.46 Other Income 1,950.74 2,239.85 1,400.76 631.10 Total Income 84,920.17 85,491.40 80,3
Slide 31: Balance Sheet (IndAS) – FY16, FY17 and H1FY18
Balance Sheet (IndAS) – FY16, FY17 and H1FY18 All Figures in INR mn st As At 31 March 30-09-17 As At 31st March 30-09-17 PARTICULARS Ind AS Ind AS PARTICULARS Ind AS Ind AS 2015-16 2016-17 FY 17-18 2015-16 2016-17 FY 17-18 ASSETS EQUITY & LIABILITIES Non-Current Assets 18,815.21 20,592.04 20,765.61
Slide 32: Balance Sheet (IGAAP) – FY15 and FY16
Balance Sheet (IGAAP) – FY15 and FY16 All Figures in INR mn As At 31st March, As At 31st March, PARTICULARS IGAAP PARTICULARS IGAAP 2014-15 2015-16 2014-15 2015-16 ASSETS EQUITY & LIABILITIES Non-Current Assets 20,843.97 19,021.77 Share Holders Funds 32,044.30 34,088.22 Fixed Assets Share Capital 1,