Slide 1: Investor Presentation
Investor Presentation May 2016 KNR House, 3rd & 4th Floor, Plot No.114, Phase-1, Kavuri Hills, Jubilee Hills, Hyderabad - 500 033 A Well Established Name in Roads & Highway Constructions Phone No. 040-40268759/61/62, Fax No. 040-40268760 E-mail: info@knrcl.com
Slide 2: Disclaimer
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 purchase or subscribe for any secu
Slide 3: Key Highlights & Result Update
Key Highlights & Result Update 3
Slide 4: Standalone Financial Highlights
Standalone Financial Highlights Revenue EBITDA PAT 16% +30% +138% 2,958 451 580 2,557 347 244 Q4 FY15 Q4 FY16 Q4 FY15 Q4 FY16 Q4 FY15 Q4 FY16 Revenue EBITDA PAT +3% +23% +121% 8,761 9,026 1,554 1,611 1,261 730 FY15 FY16 FY15 9m FY16 FY15 FY16 Rs. in Million 4
Slide 5: Key Highlights
Key Highlights Growth in Profit after Tax Due to tax refund of previous years on account of 80IA benefit and interest on tax refund classified as other Income Our share of profit in one of the JV entity towards claim which included in other operating income Robust Orderbook Received Rs. 28
Slide 6: Standalone Financial Results
Standalone Financial Results Rs. Million Q4 FY16 Q4 FY15 YoY Total Revenue 2,958.4 2,556.7 16% Operating Expenses 2,029.5 1,591.5 Employees Expenses 115.7 110.3 Other Expenditure 361.9 507.8 EBITDA 451.3 347.1 30% EBITDA margin 15.3% 13.6% Other Income 153.7 54.0 Depreciation 109.8 125.8 Interest 40
Slide 7: Standalone Financial Results
Standalone Financial Results Rs. Million FY16 FY15 YoY Total Revenue 9,025.5 8,761.3 3% Operating Expenses 6,062.9 5,965.5 Employees Expenses 435.2 380.8 Other Expenditure 973.3 1,153.6 EBITDA 1,554.1 1,261.4 23% EBITDA margin 17.2% 14.4% Other Income 304.9 124.6 Depreciation 431.4 540.6 Interest 12
Slide 8: Standalone Balance sheet
Standalone Balance sheet Rs. in Million Mar-16 Mar-15 Rs. in Million Mar-16 Mar-15 Shareholder’s Fund 7,270 5,692 Non-Current Assets 7,689 5,254 Share capital 281 281 Fixed Assets 2,468 2,269 Reserves & Surplus 6,988 5,411 Non-current Investments 355 228 Minority Interest 0 0 Deferred Tax Assets (Ne
Slide 9: Business Overview
Kurc KNR CONSTRUCTIONS LIMITED Business Overview
Slide 10: Business Overview
Business Overview One of the leading companies providing Engineering, Procurement and Construction (EPC) services To develop KNRCL as a Major Projects in Roads & Highways – one of the fast growing sector Centre of excellence in Established presence in Irrigation and Urban Water Infrastructur
Slide 11: Transformation
Transformation 2015 2/4 laning of Madurai – Ramanathapuram Section of NH-49 in the State of Tamil Nadu under NHDP Phase-III on EPC mode worth Rs. 9,371 mm 2013 3rd BOT Toll project worth Rs.9,005 mn in Kerala 2012 Early completion of Biggest Road Project – Bijapur Hungund Section of Rs. 8,250 mn - 1
Slide 12: Management
Management… Mr. K.Narasimha Reddy – Founder Promoter & Managing Director Over 46 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 planning Scheduling, c
Slide 13: Supported by Professional Team
Supported by Professional Team Mr. T.L. Verma (Vice President - Projects) Mr. D. Tirupathi Reddy (GM – Projects) A Bachelor of Engineering (BE) from MITS Over 24 years of rich experience in various fields Gwalior (MP) with Over 35 years of total of Civil Engineering experience with ~20 years of
Slide 14: Key Business Strengths
Kurc KNR CONSTRUCTIONS LIMITED Key Business Strengths 14
Slide 15: Project execution
1. Project execution Significant experience and Strong track record in timely execution of Projects Top management’s active Scheduled Completion (Days) involvement at all stages of Project Actual Completion (Days) execution Selection of Major Raw Material Selection of construction Camp locatio
Slide 16: Pan India Project Execution Capability
Pan India Project Execution* Capability Arunachal Pradesh Bihar No of Projects 1 Uttar Pradesh Value of Projects Rs. 920 mn No of Projects 4 No of Projects 1 Value of Projects Rs. 1,411 mn Value of Projects Rs. 1,704 mn Assam No of Projects 2 Madhya Pradesh Value of Projects Rs. 1,913 mn No of Proje
Slide 17: Project Execution Highlights
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 & strengthened with flexible
Slide 18: In-house Construction Equipment
2. In-house Construction Equipment World Class Construction Equipments Use of Right tools for right work Sl. No. Name Of The Machinery Qty 1 Tippers 614 2 Excavators 145 3 Compactors 70 4 Concrete Mixers And Pumps 99 5 Loaders 41 6 Pavers 34 7 Crushers 14 8 Graders 31 9 Tractors 28 10 Cranes 34 250
Slide 19: In-house Execution Team
3. In-house Execution Team In-house team of 800 Qualified and experienced employees led by proven management team 1% 6% 36% 22% Project Engineering Site Supervision Site Engineers Equipment Operators 35% Admin & Office Staff 19
Slide 20: Reputed Clientele
4. Reputed Clientele National Highways Authority of Andhra Pradesh Road Development India (NHAI) Corporation (APRDC) Ministry of Road Transport & Hyderabad Growth Corridor Limited Highways (MoRTH) (HGCL) Karnataka State Highway Karnataka Road Development Improvement Project (KSHIP) Corporation (KRDC
Slide 21: Reputed Clientele (cont.)
4. Reputed Clientele (cont.) A.P. Irrigation (Government of Andhra GMR Projects Private Limited Pradesh) Engineers India Limited (Government of India Sadbhav Engineering Limited Undertaking) Public Works Department Oriental Structural Engineers Pvt. (Government of Arunachal Ltd. Pradesh) 21
Slide 22: BOT Portfolio
Kurc KNR CONSTRUCTIONS LIMITED BOT Portfolio 22
Slide 23: BOT Portfolio – Completed Projects
BOT Portfolio – Completed Projects Patel KNR Heavy Infrastructures Limited Particulars Patel KNR Infrastructures limited (PKIL) (PKHIL) Stake 40 % 40 % Project Details Project Type Road-Annuity Road-Annuity State Karnataka Telangana JV Partner PEL PEIL Client NHAI NHAI Length(KM) 60.00 53.00 Concess
Slide 24: BOT Portfolio – Completed Projects
BOT Portfolio – Completed Projects Particulars KNR Walayar Tollways Private Limited Stake 100% Project Detail Project Type Road-Toll State Kerala JV Partner - Client NHAI No of Lanes Two to Four Length(KM) 54.00 Concession Start Date 18th May 2013 Concession Period 20 Years Scheduled COD 15th Nov.20
Slide 25: BOT Portfolio – Under Construction
BOT Portfolio – Under Construction Particulars KNR Muzaffarpur Barauni Tollway Private Limited Stake 51% Project Detail Project Type Road-Toll State Bihar JV Partner JKM Infra Project Ltd Client NHAI No of Lanes Two Length(KM) 108 Concession Start Date 8th July 2012 Terms Concession Period 21 Years
Slide 26: Walayar–Vadakkancherry Project
Walayar –Vadakkancherry Project KNR Walayar Tollways Private Limited is a wholly owned subsidiary of KNR Constructions Limited, incorporated as an SPV for execution of Walayar Road Project Provisional Completion Certificate for 100% of Project length has been issued for the project on 16th Octob
Slide 27: Muzaffarpur - Barauni Project
Muzaffarpur - Barauni Project KNR Muzaffarpur Barauni Tollway Private Limited is a Step down subsidiary of KNR Constructions Limited, incorporated as an SPV for execution of Muzaffarpur -Barauni Road project on BOT (Toll) basis Overall Progress as on 31st March 2016 Physical Progress: 92.24% a
Slide 28: Order Book & Business Strategy
Order Book & Business Strategy 28
Slide 29: Order-book Break-up
Order-book Break-up Order book of Rs. 34,635 million as on 31st March 2016 State Govt. Other 47% 99% Pvt. Cos. Projects Captive 1% 1% International Order* 7% Central Govt. 44% Captive State Govt. Central Govt. International Order* Pvt. Cos. Projects * - Government of People's Repubilc Of Bangladesh
Slide 30: Order-book Highlights
Order-book Highlights Roads - Key Projects Rs. mln Non Captive Madurai -Ramanathpuram Section of NH-49 8,294 Irrigation 98% 2% Roads - Thiruvananthapuram Bypass 6,055 Captive 0% Upgrading Arcot Villupuram Road 3,180 Two Tier Flyover in Salem, Tamil Nadu 2,952 Chittagong City outer Ring Road,Banglade
Slide 31: Order-book: State-wise
Order-book: State-wise Madhya Pradesh Arunachal Pradesh No of Projects 3 No of Projects 1 Balance Value Rs. 2,930 mn Balance Value Rs. 557 mn Karnataka AP & Telangana No of Projects 8 No of Projects 8 Balance Value Rs. 1,452 mn Balance Value Rs. 1,583 mn Tamil Nadu Kerala No of Projects 8 No of Proj
Slide 32: Recent Order Wins
Recent Order Wins Order-book of Rs. 45,542 million as on 30th May, 2016* 10,907 45,542 Key Projects Rs. mln 34,635 Formation of Veeranjaneya Reservoir at Yedula(V), Gopalpet (M) and Earth work excavation of approach channel, Open Canal Including Constructions of CM & 6,758.41 CD Work from Anjanagiri
Slide 33: Business Strategy
Business Strategy Focus on Projects involving Higher degree of engineering skills Continuously Focus on securing explores growth EPC contracts from opportunities by reputed Clients and forming strategic Concessionaire Joint Ventures (JVs) Capitalise on Opportunity of Execute all the huge Infrastruct
Slide 34: Financial Highlights
Kurc KNR CONSTRUCTIONS LIMITED Financial Highlights 34
Slide 35: Consolidated Financial Results
Consolidated Financial Results Rs. Million FY16 FY15 YoY Total Revenue 9,951.2 9,311.9 7% Operating Expenses 6,634.5 6,470.8 Employees Expenses 466.9 382.3 Other Expenditure 1,108.0 1,191.0 EBITDA 1,741.9 1,267.8 37% EBITDA margin 17.5% 13.6% Other Income 424.1 128.9 Depreciation 480.7 551.7 Interes
Slide 36: Consolidated Balance sheet
Consolidated Balance sheet Rs. in Million Mar-16 Mar-15 Rs. in Million Mar-16 Mar-15 Shareholder’s Fund 6,970 7,885 Non-Current Assets 14,563 15,165 Share capital 281 281 Fixed Assets 12,631 13,432 Reserves & Surplus 6,688 7,604 Non-current Investments 168 236 Minority Interest 807 906 Deferred Tax
Slide 37: Standalone Financial Highlights
Standalone Financial Highlights Financial Year 2010 2011 2012 2013 2014 2015 2016 Rs. 7,125 Rs. 7,930 Rs. 7,505 Rs. 6,921 Rs. 8,348 Rs. 8,761 Rs. 9,025 Turnover $118.6 $132.0 $125.0 $115.2 $139.0 $140.0 $136.1 Rs. 1,121 Rs. 1,356 Rs. 1,338 Rs. 1,164 Rs. 1,258 Rs. 1,261 Rs. 1,554 EBITDA $18.7 $22.6 $
Slide 38: Standalone Financial Highlights
Standalone Financial Highlights Revenue & EBITDA (Margin %) EBITDA Margin (%) 15.7% 17.1% 17.8% 16.8% 15.1% 14.4% 17.2% 8,761 9,026 7,930 8,348 7,125 7,505 6,921 Revenue 1,356 1,338 1,164 1,258 1,261 1,554 1,121 EBITDA 2010 2011 2012 2013 2014 2015 2016 Net Profit & Net Worth (RoE) RoE (%) 16.7% 16.
Slide 39: Standalone Net Working Capital Days
Standalone Net Working Capital Days 79 69 53 52 48 98 43 52 74 66 64 45 51 53 26 23 28 7 10 13 16 16 15 18 15 20 15 17 Mar-10 Mar-11 Mar-12 Mar-13 Mar-14 Mar-15 Mar-16 Inventory Debtors Creditors Net Working Capital 39
Slide 40: Shareholding Pattern as on 31st March 2016
Shareholding Pattern as on 31st March 2016 Shareholders Holding more than 1% of the Equity % to Equity (Other than Promoters) 11% HDFC Mutual Fund 8.35% Tata Mutual Fund 3.76% 24% 61% ICICI Prudential Mutual Fund 3.04% 3% L&T Mutual Fund 1.08% PROMOTERS Franklin Mutual Fund 1.87% FOREIGN INST. INVES
Slide 41: Other Businesses
Other Businesses Strong growth opportunity in development of Agricultural Infrastructure Irrigation & Water Management Projects Execution of Irrigation & Water Supply Projects with Joint Venture Partners And Urban Water Executed 3 Projects in Telangana & 1 Project in Infrastructure Bihar Manag
Slide 42: Project Gallery
Kurc KNR CONSTRUCTIONS LIMITED Project Gallery 42
Slide 43: Completed Projects
Completed Projects BOT (Annuity) Road Project on NH-7 in the BOT (Annuity) Road Project on NH-7 in the State of Telangana State of Telangana 43
Slide 44: Completed Projects
Completed Projects BOT (Annuity) Road Project on NH-7 in the Four Lane Highway on NH-50, Bijapur to State of Karnataka Hungund Project in the State of Karnataka 44
Slide 45: Completed Projects
Completed Projects Road Project in the state of Karnataka - Road Project in the state of Karnataka - Bijapur - Hungund Bijapur - Hungund 45
Slide 46: Completed Projects
Completed Projects Walayar –Vadakkancherry BOT (Toll Road ) Walayar –Vadakkancherry BOT (Toll Road ) Project, Kerala Project, Kerala 46
Slide 47: Completed Projects
Completed Projects Bridge across River Godavari in Telangana State 47
Slide 48: Completed Projects
Completed Projects Bridge across River Godavari in Telangana Bridge across River Godavari in Telangana State State 48
Slide 49: Under-Construction Projects
Under-Construction Projects Muzaffarpur -Barauni Road project on BOT Muzaffarpur -Barauni Road project on BOT (Toll), Bihar (Toll), Bihar 49
Slide 50: Under-Construction Projects
Under-Construction Projects Flyover at Coimbatore in the State of Tamil Irrigation Project in Telangana State Nadu 50
Slide 51: For further information, please contact
For further information, please contact: Company : Investor Relations Advisors : KNR Constructions Ltd Strategic Growth Advisors Pvt. Ltd. CIN: L74210DL1995PLC238364 CIN: U74140MH2010PTC204285 Mr. K. Venkata Ram Rao Mr. Jigar Kavaiya / Mr. Kevin Shah (GM - Finance & Accounts) +91-9920602034 / +91 97