Gayatri Projects Limited · NSE:GAYAPROJ
Gayatri Projects — Q3 FY2020 Earnings Presentation
28 slides from Gayatri Projects's earnings presentation, Feb 17, 2020
Slide 1: Cover letter to stock exchanges
\br GnynTRl February 17,2020 To To The Secretary, Listing Department I The Manager, Listing Department BSE Limited I National Stock Exchange of India Limited Towers, Phiroze Jeejeebhoy I Exchange Plaza, 5th Floor, Plot No. C/1, Dalal Street, I G Block, Bandra-Kurla Complex, Bandra (E), 001 Mumbai -
Slide 2: Gayatri Projects Limited Earnings Presentation Q3FY20
Gayatri Projects Limited Earnings Presentation Q3FY20
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. Introduction Slide No. 4 2. Deleveraging & Monetisation Plan Slide No. 5 - 8 3. 9MFY20 Financial Highlights & Top Work Order Status Slide No. 9 - 14 5. Order Book Diversification Slide No. 15 6. Key Investment Highlights Slide No. 16-17 Slide No. 17 onwards 8. Appendix – Core Business High
Slide 5: GPL: Amongst India's leading Asset-Light EPC Companies
GPL: Amongst India’s leading 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 segm
Slide 6: Continued Focus on Deleveraging
Continued Focus on Deleveraging FY19 – 9MFY20 – Likely, Likely, Net long Equipment Working Cash FY20E – Net Debt Gross Repayment Repayment term loan Capital Equivalent Net Debt Term Loan via via borrowings Loan conciliation monetisation (SLIDE 8) of awards (SLIDE 8) 5
Slide 7: Monetisation of stake in Power Asset Complete
• The company has concluded the sale of its 5.95% stake in power assets of Monetisation of stake in Power Asset Complete Sembcorp Energy India Ltd (“SEIL”) for cash proceeds of INR 4,068 Mn + upside option. • The proceeds from the above sale, INR 2,068 Mn has been used towards repayment of long-term
Slide 8: Monetisation of awards & claims
Monetisation of awards & claims Different arbitration tribunals/courts have awarded GPL, a total of INR 10 Bn+ AWARDS INR 10 Bn+ (including accrued interest), towards disputed receivables from its EPC clients. In addition, GPL has a net exposure to CLAIMS INR 9 Bn+ outstanding claims of INR 9 Bn+ in
Slide 9: Likely near term cashflow from Awards & Claims
Likely near term cashflow from Awards & Claims Conciliation & Settlement GOI scheme for monetisation of Total expected cashflow in mechanism introduced by under litigation arbitral awards GOI/NHAI against the Bank Guarantees next 1-2 months INR 1 Bn+ INR 4 Bn+ INR 5 Bn+ • The company has recently se
Slide 10: 9MFY20 Highlights
9MFY20 Highlights • Total debt serviced of INR 2.8 bn (including INR 780 Mn debt repayment) Debt Servicing • Experiencing delayed payments from State Govts resulting in delays in its own interest payment obligations; Care Ratings downgraded to D. Expecting all accounts to be regularised over next 2-
Slide 11: FY20: Revised Guidance
FY20: Revised Guidance FY20 Guidance (INR Mn) Order Inflow INR 25-30 billion Revenues 0%-5% Growth EBITDA Margin 15% Execution delays due to excessive rainfalls have impacted the full year guidance 10
Slide 12: 9MFY20 (YoY) Financial Performance
9MFY20 (YoY)– Financial Performance Revenue (INR Mn) EBITDA (INR Mn) & EBITDA Margin Key Highlights 25,172 23,120 16.5% 14.8% • Revenue – Muted growth, execution impacted 3,815 due to prolonged monsoon 3,725 • EBITDA margins significantly impacted because of muted growth in revenue and due to inflat
Slide 13: Q3FY20 Snapshot
Q3FY20 Snapshot INR Mn Q3FY20 Q3FY19 YoY(%) 9MFY20 9MFY19 YoY(%) Revenue 8,354 8,779 -5% 25,172 23,120 9% Expenses 7,149 7,362 -3% 21,446 19,305 11% EBITDA 1,204 1,416 -15% 3,725 3,815 -2% EBITDA Margin 14.4% 16.1% 14.8% 16.5% Depreciation 199 166 20% 586 491 19% Finance Cost 737 690 7% 2,010 1,986
Slide 14: Top Work Orders – Status Update – Q3FY20
Top Work Orders – Status Update – Q3FY20 Contract Balance work as on Mobilized on Revenue Expected Completion of Project Name Location Value (INR Cr) 01.1.2020 (INR Cr) Site Booking Start Project End of Q & Year Purvanchal Expressway Package 1 Eastern UP 1,483 1185 Yes Q3 19 Q3 22 Purvanchal Express
Slide 15: Top Work Orders – Status Update – Q3FY20
Top Work Orders – Status Update – Q3FY20 Contract Balance work as on Mobilized Revenue Expected Completion of Project Name Location Value 01.10.2019 (INR Cr) on Site Booking Start Project End of Q & Year (INR Cr) Nagpur - Mumbai Expressway Shiridi, MH 1,312 1184 Yes Q1 20 Q2 22 6 Lane Tunnel at Kham
Slide 16: Growing Order Book: Current Book to Bill of 3.83x
Growing Order Book : Current Book to Bill of 3.83x Growing and De-Risked Order Book (INR Bn) Geographical Diversification GPL’s Growth in EPC order book over the last 5 years Gujarat Jharkhand Others 3% 2% 3% 163 132 141 Uttar Pradesh 129 Karnataka 4% 22% 92 [CATEGORY NAME] Bihar 48 6% FY15 FY16 FY1
Slide 17: 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 14,955 1.5 [VALUE]* 1.2 FY15 FY16 FY17 FY18 FY19 9MFY20 FY15 FY16 FY17 FY18 FY19 9MFY20 Debt Maturity Profile (INR MN) Working Capital Days 2,316 2,09
Slide 18: 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 19: Appendix
& GAYATRI Gayatri Projects Limited Appendix
Slide 20: 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 21: 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 22: 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 advantage to No. of projects Value of contract o Company has existing BG limit of INR 44 bn Segment expand order bo
Slide 23: Profit & Loss
Profit & Loss All figures in INR Million INR Mn FY19 FY18 FY17 Revenue 34,631 29,123 21,154 Expenses 29,182 24,252 17,919 EBITDA 5,449 4,871 3,234 EBITDA Margin 15.7% 16.7% 15.3% Depreciation 659 547 432 Finance Cost 2,513 2,563 2,014 Other Income 79 64 306 PBT 2,357 1,825 941 PBT Margin 6.8% 6.3% 4
Slide 24: Balance Sheet
Balance Sheet All figures in INR Million ASSETS (INR Mn) H1FY20 FY19 FY18 EQUITY AND LIABILITIES (INR Mn) H1FY20 FY19 FY18 EQUITY NON-CURRENT ASSETS (a) Equity Share capital 374 374 374 (a) Property Plant & Equipment 3,848 3,763 3,350 (b) Other Equity 13,521 12,922 10,856 (b) Capital Work in Progres
Slide 25: Board of Directors
Board of Directors Promoter and Non-Executive Chairperson, over 25 years of experience in the Mrs. T. Indira Reddy construction industry Mr. T. V. Sandeep Kumar Reddy Promoter and Managing Director, 20+ years of construction experience Mr. J. Brij Mohan Reddy Executive Vice Chairman, Over 49 years o
Slide 26: Management Team - HQ
Management Team - HQ T Sandeep Reddy D Sitaram Managing Director President, Business Development Masters in Construction Engineering & In-charge of evaluating new business units, Management from University of Michigan, USA identifying suitable Joint-Venture partners, and 20+ years of const
Slide 27: 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 28: 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 27