Slide 1: Cover letter to stock exchanges on Q4 & FY-19 results
~ GAyATRI Date: May 31, 2019 To, To, The General Manager, The Secretary, The Department of Corporate Relations, National Stock Exchange of India Ltd. The Bombay Stock Exchange Limited., 5th Floor, Exchange Plaza 25 th Floor, Phiroz Jeejeebhoy Towers, Plot No.C/1, G Block Dalal Street, Mumbai - 400 0
Slide 2: Gayatri Projects Limited Earnings Presentation Q4 and Full Year FY2019
Gayatri Projects Limited Earnings Presentation Q4 and Full Year FY2019
Slide 3: Disclaimer
Disclaimer The material that follows is a Presentation of general background information about the Company’s activities as at the date of the Presentation. It is information given in summary form and does not purport to be complete and it cannot be guaranteed that such information is true and accura
Slide 4: Agenda
Agenda 1. Gayatri Projects – An Introduction Slide No. 4 2. FY 2019 Highlights Slide No. 5 - 8 3. FY 2020 Key Priorities Slide No. 9 4. Order Book Diversification Slide No. 10 5. Top Work Orders – Status update Slide No. 11 - 12 6. Key Investment Highlights Slide No. 13 7. Digital Project Management
Slide 5: GPL: Among India's Asset-Light EPC Companies
GPL: Among India’s Asset – Light EPC Companies One of India’s leading construction and infrastructure companies with dedicated focus on asset- light EPC work Business Segments 5 decades of experience in execution of major civil works, diversified across geographies & infrastructure segments o Pa
Slide 6: FY2019 Guidance Met; FY2020 Outlook Bright
FY2019 Guidance Met; FY2020 Outlook Bright FY2019 Guidance FY2019 ACTUAL FY2020 OUTLOOK ✓ Order Inflow INR 60+ billion INR 61+ billion INR 60-65 bn ✓ Book to Bill 3.5x+ 4.7x INR 3.5-4.5x ✓ Revenues INR 35-36 billion INR 35 billion 25%+ Growth ✓ EBITDA Margin 16%+ 16% 16% ✓ PAT Growth 15-20% 12% 30%-
Slide 7: FY2019 – Strong Operating Performance
FY2019 – Strong Operating Performance Revenue (INR bn) EBITDA (INR bn) & EBITDA Margin Key Highlights 35 15.7% 16.7% 5.5 • Reasonably strong revenue growth, tempered by 29 4.7 weak execution in irrigation vertical (stretched state government finances). • EBITDA margin dropped 100 bps due to signific
Slide 8: Significant deleveraging despite continued Strong Revenue Growth
Significant deleveraging despite continued Strong Revenue Growth Net Debt/Equity (x) Net Debt (INR Mn) 2.4 2.5 18,612 17,399 17,016 2.1 16,337 15,443 1.5 1.2 FY15 FY16 FY17 FY18 FY19 FY15 FY16 FY17 FY18 FY19 Debt Maturity Profile (INR MN) Working Capital Days 2,316 2,090 2,139 1,986 95 105 78 78 74
Slide 9: Q4 & FY2019 Snapshot
Q4 & FY2019 Snapshot INR Mn Q4FY19 Q4FY18 YoY(%) FY19 FY18 YoY(%) Revenue 11,511 9,332 23% 34,632 29,123 19% Expenses (9,876) (7,777) 27% (29,182) (24,446) 19% EBITDA 1,635 1,555 5% 5,450 4,677 17% EBITDA Margin 14.2% 16.7% 15.7% 16.1% Depreciation (168) (156) 8% (659) (547) 20% Finance Cost (526) (
Slide 10: FY20 Priorities: Continued De-leveraging & Business Return Improvement
FY20 Priorities: Continued De-leveraging & Business Return Improvement 1. Strong Operating Free Cash Flow 2. EBITDA to cash flow conversion 97% o Business focus on construction services 65% o Strong growth driven by high book-to-bill ratio o Tight control on working capital to drive EBITDA conversio
Slide 11: Growing Order Book: Current Book to Bill of 4.7x
Growing Order Book : Current Book to Bill of 4.7x Growing and De-Risked Order Book (INR Bn) Geographical Diversification West Bengal Andhra Pradesh GPL’s Growth in EPC order book over the last 5 years 11% 1% 163 Bihar 129 132 6% 92 Uttar Pradesh 25% 48 Gujarat 3% FY15 FY16 FY17 FY18 FY19 Jammu & Kas
Slide 12: Top Work Orders – Status Update
Top Work Orders – Status Update All amounts in INR Cr GPL GPL Balance Package Location Contract work as on Mobilised on Site Revenue Booking Start Completion Date Value 01.04.2019 Purvanchal Expressway Package 1 Eastern UP 1,483 1,430 Yes Q4 19 Q3 22 Purvanchal Expressway Package 2 Eastern UP 1,276
Slide 13: Top Work Orders – Status Update
Top Work Orders – Status Update All amounts in INR Cr GPL GPL Balance Package Location Contract work as on Mobilised on Site Revenue Booking Start Completion Date Value 01.04.2019 Hyderabad Elevated Corridor Hyderabad 425 413 Yes Q4 19, Marginal booking Q2 21 Rajamunda - Barkote Barkote, Orissa 394
Slide 14: Key Investment Highlights
Key Investment Highlights Strong presence in high growth construction sector Healthy and diversified pure EPC un-executed order book with good revenue growth visibility Highly efficient operations with strong execution capabilities Balance-sheet improvement on track for industry leading metrics in n
Slide 15: Digital Project Management Roll-out at GPL
Digital Project Management Roll-out at GPL
Slide 16: End-to-end Digital Project Management
End-to-end Digital Project Management • Reconciliation of Work Done vs. Costs (Material and Machinery usage) Weigh-bridges Crushers Plants Dump Trucks Heavy Machinery • Automated reports for easy monitoring Material Tracking Machinery Tracking and management • Custom notifications for smooth IoT Pla
Slide 17: Angul Project – Case Study
Angul Project – Case Study 167 6 5 162 Vehicles & Weigh bridges Concrete Daily Project Machines Plants users 115 1,405 6,263 18,456 Work reports Downtime Equipment Concrete submitted Logs Requests Requests 58,751 74,713 1,70,983 Material transactions Machine hours Cubic meters of concrete tracked pr
Slide 18: Insights, Reports & Notifications
Insights, Reports & Notifications
Slide 19: Benefits of Digital Project Mgmt
Benefits of Digital Project Mgmt Accounts P&M Purchase PMC Legal Tender • Validate Hired Equipment Bills • Debit Notes on diesel in real time • Track Variation from Tender BOQ Qtys vs. • Tentative expenses Progress for repairs • Validate Invoice vs. RFI Qtys • Validate Vendor payments • Actual Work
Slide 20: Benefits of Digital Project Mgmt
Benefits of Digital Project Mgmt Accounts P&M Purchase PMC Legal Tender • Improves Equipment Utilization& • Monitor Fuel filling rate to maintain Availability % working capital • Equipment Productivity • Resource allocation between Projects • Tentative spare requirement & cost • Asset Turnover Ratio
Slide 21: Benefits of Digital Project Mgmt
Benefits of Digital Project Mgmt Accounts P&M Purchase PMC Legal Tender • Compare Equipment performance of different manufacturers • Real time stock details • Monitor Fuel filling rate • Monitor Realtime receipt of material at site • Schedule procurement of long • Material allocation across projects
Slide 22: Benefits of Digital Project Mgmt
Benefits of Digital Project Mgmt Accounts P&M Purchase PMC Legal Tender • Monitor progress vs. Schedule • Instant MIS reports • Track Variation from Tender BOQ • Asking rate for work execution • Reconciliation of Concrete, Bitumen, • Electronic documentation of RFI • Equipment Utilization GSB,WMM w.
Slide 23: Benefits of Digital Project Mgmt
Benefits of Digital Project Mgmt Accounts P&M Purchase PMC Legal Tender • Backup for periodical material receipts to claim Price Escalation • Digital Backup for Claiming Idle charges • Maintain Evidence of RoW issues of equipment • Track delays due to unforeseen conditions • Claim new Items not incl
Slide 24: Benefits of Digital Project Mgmt
Benefits of Digital Project Mgmt Accounts P&M Purchase PMC Legal Tender • Compare Equipment productivities in different geographical and climatic • Deriving average Fuel norms of conditions equipment’s based on type of work • Compare actual costs and • Fuel Mileage can be considered inputs Tender vs
Slide 25: PMC @ HQ
PMC @ HQ PMC Project Project Project Coordinator-1 Coordinator-2 Coordinator-3 PMC Site Project-1 Representative Project-2 Project-3 Equipment Material Operation Progress Management Management Management Monitoring Attaching & Detaching Asset Material Progress DPR Fuel logger Request Own-P&M H.O Hir
Slide 26: Angul Project: Milestones
Angul Project: Milestones ▪ Based on Tare Weight Anomalies found, Calibration at 2 Weighbridges is corrected ▪ Equipment Odometer which are not working highlighted and were repaired ▪ Qtys used in Diversion work and Indirect works are recorded ▪ Realtime concrete production information reduced commu
Slide 27: Appendix
Noy) Gayatri Projects Limited GAYATRI Appendix Efficiency. © Execution. Excellence.
Slide 28: Robust Upcoming Bid Pipeline
Robust Upcoming Bid Pipeline Significant Traction in NHAI Ordering Awards Coming in GPL’s Sectoral and Geographical Strongholds Significant NHAI Bid Pipeline of 2,222 km Andhra Pradesh, 4% Telangana, 3% INR c.800 Bn Highway Projects Others, 15% Uttar Pradesh, Awarded in FY2019 16% HAM, 440 Rajasthan
Slide 29: Strategy – Focusing on 'Asset Light' EPC segment
Strategy – Focusing on ‘Asset Light’ EPC segment Asset light EPC model Grow presence in core EPC segments o Pure EPC company with no asset-heavy o Actively bid for quality projects in core BOT or HAM project work. areas of expertise- roads, irrigation, o Diversified across geographies and industrial
Slide 30: Spotlight on Asset-Light Model
Spotlight on Asset-Light Model 2012-2015 : GPL numbers depressed due to asset Core Construction Services business is a high ROCE business; investments At the bottom of cycle generated 18.2% 2016 onwards: Business restructuring and Shift towards In line with the Industry practice, Free cash f
Slide 31: Strong Execution Capabilities & a Diverse Range of Projects
Strong Execution Capabilities & a Diverse Range of Projects Projects executed in last 5 years Strong BG limits key competitive advantage Company’s existing BG limit provides additional No. of projects Value of contract o Company has existing BG limit of INR 44 bn Segment advantage to expand order bo
Slide 32: Balance Sheet
Balance Sheet All figures in INR Million ASSETS (INR Mn) FY19 FY18 FY17 EQUITY AND LIABILITIES (INR Mn) FY19 FY18 FY17 EQUITY NON-CURRENT ASSETS (a) Equity Share capital 374 374 355 (a) Property Plant & Equipment 3,763 3,350 3,093 (b) Other Equity 12,922 10,856 7,056 (b) Capital Work in Progress 5 -
Slide 33: Board of Directors
Board of Directors Promoter and Non-Executive Chairperson, over 25 years of experience in the T. Indira Subbarami Reddy construction industry T. V. Sandeep Kumar Reddy Promoter and Managing Director, 20+ years of construction experience J Brij Mohan Reddy Executive Vice Chairman, Over 49 years of ex
Slide 34: Management Team - HQ
Management Team - HQ T Sandeep Reddy D Sitaram ▪ Managing Director ▪ President, Business Development ▪ Masters in Construction Engineering & Management ▪ In-charge of evaluating new business units, from University of Michigan, USA identifying suitable Joint-Venture partners, and ▪ 20+ years of const
Slide 35: Management Team - Projects
Management Team - Projects K Sesha Reddy CH Ramakrishna Rao ▪ Senior Vice President, Transportation ▪ Senior Vice President, Roads ▪ In-charge of project monitoring and controls ▪ Oversees road construction projects ▪ Previously a Project Head at L&T ▪ Masters in Construction management from Birla ▪
Slide 36: Contact Details
Contact Details V V Chandra Sekhar Gayatri Projects Limited Tel: +91 40 23310330/23314284/4296 Email: vvcs@gayatri.co.in Sheetal Khanduja Go India Advisors +91 9769364166 sheetal@goindiaadvisors.com 35