H.g. Infra Engineering Ltd. · NSE:HGINFRA
H.g. Infra Engineering — Q3 FY2020 Earnings Presentation
31 slides from H.g. Infra Engineering's earnings presentation, Jan 28, 2020
Slide 1: Cover letter to stock exchanges: Investor Presentation
CIN No.: L45201 RI2003PLCO18049 January 28, 2020 HGIELI We Make People r'Jlo\ie ... I BSE Limited National Stock Exchange of India Limited Phiroze Jeejeebhoy Towers, Exchange Plaza, Dalal Street, Bandra Kurla Complex, Bandra (East), Mumbai-400 001 Mumbai-400051 Scrip Code- 541019 Scrip Code- HGINFRA
Slide 2: HG Infra Engineering Investor Presentation Q3 & 9MFY20
HG Infra Engineering Investor Presentation Q3 & 9MFY20 Uncha Nagla Project
Slide 3: Disclaimer
This presentation and the accompanying slides (the “Presentation”), which have been prepared by HG Infra Engineering Limited (the “Company”), have been prepared solely for information purposes and do Disclaimer not constitute any offer, recommendation or invitation to purchase or subscribe for any s
Slide 4: Contents
Contents Q3 & 9MFY20 Result Highlights Company Overview Key Strengths Growth Strategy Historical Financials
Slide 5: Q3 & 9MFY20 Highlights
Q3 & 9MFY20 Highlights Kaithal Project
Slide 6: Standalone result highlights Q3FY20
Standalone result highlights Q3FY20 Rs mn Revenue EBITDA and EBITDA Margin 14.6% 15.4% 4% 5,506 5,730 882 806 Q3FY19 Q3FY20 Q3FY19 Q3FY20 PBT & PBT Margin PAT and PAT Margin 9.5% 10.4% 6.4% 7.2% 415 595 353 523 Q3FY19 Q3FY20 Q3FY19 Q3FY20 5
Slide 7: Standalone result highlights 9MFY20
Standalone result highlights 9MFY20 Rs mn Revenue EBITDA and EBITDA Margin 14.7% 15.3% 10% 15,733 14,299 2,410 2,100 9MFY19 9MFY20 9MFY19 9MFY20 PBT & PBT Margin PAT and PAT Margin 9.2% 10.1% 6.1% 7.3% 1,596 1,314 1,145 868 9MFY19 9MFY20 9MFY19 9MFY20 6
Slide 8: Standalone Profit and loss statement
Standalone Profit and loss statement Quarter 9 Months (Rs mn) Q3FY20 Q3FY19 YoY 9MFY20 9MFY19 YoY Revenue from operations 5,729.8 5,505.9 4.1% 15,732.9 14,298.6 10.0% Cost of material consumed 2,539.0 2,662.0 6,545.8 6,917.2 Contract and site expenses 1,942.9 1,642.2 5,711.4 4,222.5 Employee expense
Slide 9: Consolidated Profit and loss statement
Consolidated Profit and loss statement Quarter 9 Months (Rs mn) Q3FY20 Q3FY19 YoY 9MFY20 9MFY19 YoY Revenue from operations 5,714.9 5507.9 3.8% 15829.44 14303.89 10.7% Cost of material consumed 2,539.0 2661.95 6545.79 6917.15 Contract and site expenses 1,944.0 1642.23 5716.52 4222.53 Employee expens
Slide 10: Robust and well diversified order book
Robust and well diversified order book Robust growth in order book (Rs mn) Client wise break-up: Govt. Optimum mix of 58% prime contracts and Private 42% select private projects 62,223 61,591 Haryana, 32% Telangana, 46,071 Geographical break- 15% up: successful 40,191 diversification beyond Maharash
Slide 11: Key orders under execution
Key orders under execution EPC projects Project Awarding authority State Project Value (Rs mn) Eight laning of Haryana-Rajasthan Border; part of NHAI Rajasthan 9,971 Delhi-Vadodara greenfield section Six laning of Hapur Bypass to Moradabad IRB UP 11,722 Six laning of Gulabpura-Chittorgarh IRB Rajast
Slide 12: Recent developments
Recent developments Received HAM order from National Highways Authority of India ü The scope of work involves construction of Rewari Bypass (NH-1l) as a feeder route in Rewari district in the state of Haryana ü The length of the project is 14.40 km ü Bid project cost of Rs. 5,220 Mn Received appoint
Slide 13: Overview
Overview Manoharpur Dausa Project
Slide 14: Company overview
Company overview 28 1,900+ 3,500+ PROJECTS UNDER FLEET SIZE MANPOWER EXECUTION Rs 61,591mn 39% 52% ORDER BOOK Revenue CAGR Profit After Tax CAGR (31tst December 2019) (FY16-FY19) (FY16-FY19) 13
Slide 15: Leadership team
Leadership team Mr. Harendra Singh Chairman and Managing Director • 25+ years of experience in the construction industry • Holds bachelor’s degree in engineering (civil) from Jodhpur University • Awarded twice by the Indian Achievers Forum for his outstanding achievement in business and social servi
Slide 16: Board of directors
Board of directors Mr. Vijendra Singh Whole-time Director • ~28 years of experience in the construction industry • Responsible for the overall functioning of the Company Ms. Dinesh Kumar Goyal Non-Executive Non Independent • Retired IAS, has more than 40 years experience in working at top level posi
Slide 17: Key Strengths
Key Strengths Bhilwara Gulabpura Project
Slide 18: Tangible pool to drive execution and efficiencies
Tangible pool to drive execution and efficiencies Machine + People + Process Gross Block (Rs mn) Fleet of modern construction equipment totaling 1,911 for large scale execution 6,106 4,897 Invested Rs 4,900+ mn in plant and machinery in last 3 years 2,294 1,160 In-house Better control Eliminate avai
Slide 19: Tangible pool to drive execution and efficiencies: people
Tangible pool to drive execution and efficiencies Machine + People + Process No. of Employees & Expenses Over 80% of employees are skilled and highly skilled workers such as qualified 3,570 engineers, management professionals 2,894 5.9% 5.4% Net addition of 670+ in employees in FY19 1,497 4.0% 3.9%
Slide 20: Tangible pool to drive execution and efficiencies: process
Tangible pool to drive execution and efficiencies Machine + People + Process Integrated business model with minimal sub- Preliminary project evaluation contracting for for better efficiency and cost optimization In-depth technical studies Successful implementation of SAP in FY19, the benefits of whi
Slide 21: Leading to successful evolution to prime road contractor
Leading to successful evolution to prime road contractor EPC 2,500 17,500 Rs mn Rs mn pre-qualification March 2019 March 2013 Revenue from 55% 24% Revenue share Revenue share sub-contracting FY14 FY19 Average ticket ~500 ~1,800 Rs mn Rs mn size FY14 FY19 Geographical 2 7 No. of States No. of States
Slide 22: Growth Strategy
Growth Strategy Sitarganj Project
Slide 23: Well placed to tap the huge opportunity in roads & highways
Well placed to tap the huge opportunity in roads & highways… Particular Length Planned outlay (kms) (Rs bn) Phase-I of Bharatmala Government’s highway - Economic Corridor Development 9,000 1,200 development programme - Inter-corridor and Feeder Route 6,000 800 under Bharatmala Phase 1 and other sche
Slide 24: As well as new infrastructure segments
…As well as new infrastructure segments Government is focused on improving Worked on water the water infrastructure in the country - pipeline projects Water Infra nearly 60 crore Indians face high to in the state of extreme water stress Rajasthan India plans to construct 100 new Has bagged a airport
Slide 25: Historical Financials
Historical Financials Kaithal Project
Slide 26: Robust growth
Robust growth Financials in Rs mn Revenue EBITDA Profit After Tax (PAT) 3,032 1,236 20,098 13,927 2,081 842 10,560 1,244 534 FY17 FY18 FY19 FY17 FY18 FY19 FY17 FY18 FY19 EBITDA Margin PAT Margin Earning per share (Rs) 18.96 14.9% 15.1% 6.1% 6.1% 6.1% 15.39 11.8% 9.88 FY16 FY17 FY19 FY17 FY18 FY19 FY
Slide 27: Lean balance sheet, healthy return ratios
Lean balance sheet, healthy return ratios Working capital cycle (Days) Return on Capital Employed 40% FY 17 FY 18 FY 19 32% 32% Debtor Days 36 51 69 Inventory Days 41 52 46 Creditor Days 23 51 69 Net WC Days 54 52 46 FY17 FY18 FY19 ü Debtors Days is calculated as Average Trade Receivables (excl. ret
Slide 28: Profit and loss statement
Profit and loss statement Standalone Consolidated (Rs mn) FY19 FY18 YoY FY19 FY18 YoY Revenue from operations 20,098 13,927 44.3% 20,145 13,927 44.6% Cost of material consumed 8,919 5,462 63.3% 8,919 5,462 63.3% Contract and site expenses 6,665 5,475 21.7% 6,666 5,475 21.8% Employee expenses 1,191 7
Slide 29: Standalone Balance Sheet
Standalone Balance Sheet Rs mn Sep’19 Mar’19 Rs mn Sep’19 Mar’19 Share Capital 652 652 Fixed Assets incl. CWIP 4,356 4,585 Reserves 6,623 5,940 Other Financial Assets 156 120 Shareholders' Funds 7,275 6,592 Other Non Current Assets 667 437 Secured Loans 386 593 Total Non-Current Assets 5,179 5,141 O
Slide 30: Consolidated Balance Sheet
Consolidated Balance Sheet Rs mn Sep’19 Mar’19 Rs mn Sep’19 Mar’19 Share Capital 652 652 Fixed Assets incl. CWIP 4,410 4,588 Reserves 6,719 5,978 Other Financial Assets 156 120 Shareholders' Funds 7,371 6,630 Other Non Current Assets 283 265 Secured Loans 993 593 Total Non-Current Assets 4,849 4,973
Slide 31: Thank You
Thank You HG Infra Engineering Ltd Rajeev Mishra Rajeev.mishra@hginfra.com III Floor, Sheel Mohar Plaza, A-1, Tilak Marg, C-Scheme, Jaipur - 302001 Pareto Capital (Investor Relations) Pooja Dokania pooja.dokania@paretocapital.in 210, B Wing, Kanakia Wall Street Andheri East, Mumbai - 400069
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