Kec International Ltd. · NSE:KEC
Kec International — Q2 FY25 Earnings Presentation
35 slides from Kec International's earnings presentation, November 2024
Slide 1: KEC International Limited Corporate Presentation
KEC International Limited Corporate Presentation N o ve mb e r 2 0 2 4 Power T & D Civil Railways Oil & Gas Pipelines Renewables Cables
Slide 2: Disclaimer
Disclaimer This presentation may include statements which may constitute forward-looking statements. All statements that address expectations or projections about the future, including, but not limited to, statements about the strategy for growth, business development, market position, expenditures,
Slide 3: Contents
Overview – RPG Group & KEC International Page 05-11 Business Overview Contents Page 13-20 Key Performance Highlights & Financial Overview Page 22-30 Environmental, Social and Governance (ESG) Page 32-35
Slide 4: Overview – RPG Group & KEC International
1 Overview – RPG Group & KEC International 765kV GIS Substation project at Narela, Delhi 4
Slide 5: RPG Group: Powered by Passion, Driven by Ethics
RPG Group: Powered by Passion, Driven by Ethics UNLEASHTALENT RPG Enterprises was founded in 1979. The group currently operates various businesses in Infrastructure, Technology, Life Sciences, Plantations and Tyre industries. The group has business history dating back to TOUCHLIVES 1820 AD in bankin
Slide 6: KEC International: Building Infrastructure for the World of Tomorrow
KEC International : Building Infrastructure for the World of Tomorrow 7+ 300+ $2.4 83 40+ FOOTPRINT IN 110+ 7500+ BILLION ONGOING HAPPINESS EMPLOYEES DECADES COUNTRIES PROJECTS GLOBAL EPC SCORE NATIONALITIES MAJOR Transmission Civil Urban Infra Railways Oil & Gas Renewables Cables & Distribution 6
Slide 7: KEC Overview
KEC Overview • Global infrastructure EPC major • FY24 Sales: Rs. 19,914 crore (USD 2.4 billion) • Eight manufacturing facilities across India, Dubai, Brazil and Mexico Footprint in 110+ countries across the globe Middle India & Americas Oceania East South Asia Africa EPC Footprint countries EPC: 70+
Slide 8: Diverse Portfolio of Offerings
Diverse Portfolio of Offerings Transmission Lines Factories Underground Cabling Water Airports Hospitals Substations Residential Buildings S&T Metros – Civil Metros - Tech Commercial Buildings OHE Track Laying Railway Bridges Data Centre TCAS - Kavach Automatic Signalling Solar Tunnel Ventilation Wa
Slide 9: Purpose Statement and Culture Pillars
Purpose Statement and Culture Pillars “WE TRANSFORM LIVES BY BUILDING SUSTAINABLE WORLD CLASS INFRASTRUCTURE” Execution Excellence Customer Centricity Technology & Engineering Mindset Happiness Inclusive - Empowerment Diverse & & Trust Global Mindset 9
Slide 10: Board of Directors
Board of Directors H. V. Goenka Chairman, Non Executive Director Vimal Kejriwal Arvind Singh M.S. Unnikrishnan Neera Saggi Nirupama Rao Managing Director Non Executive Non Executive Non Executive Non Executive & CEO Independent Director Independent Director Independent Director Independent Director
Slide 11: Management Team
Management Team Vimal Kejriwal Managing Director & CEO Rajeev Agarwal Milind Apte Anand Kulkarni Neeraj Nanda Ganesh Srinivasan Chief Financial Officer Chief Human Executive Director - President - President – Resources Officer Business Operations Emerging Business T&D Nagesh Veeturi Kaushal Kodesia
Slide 12: Business Overview
2 Business Overview Water Intake System at Bheden, Odisha Part of the ‘Jal Jeevan Mission’ - Water supply to various households across various villages 12
Slide 13: Transmission & Distribution (T&D)
Transmission & Distribution (T&D) • One of the largest Power T&D EPC companies; footprint across 70+ countries • Global leadership with experience of 7+ decades • Integrated solutions on turnkey basis Transmission Lines up to 1,200 kV Large size substations – Air Insulated up to 1,150 kV, Gas In
Slide 14: Transmission & Distribution (T&D) (contd.)
Transmission & Distribution (T&D) (contd.) SAE Towers, USA Wholly owned subsidiary • Leading manufacturer of steel lattice transmission towers in the Americas • 9+ decades of rich and diverse experience in the region • Expanded hardware portfolio with fittings for OPGW, Cross- rope steel wire and St
Slide 15: In-house capabilities for turnkey solutions
In-house capabilities for turnkey solutions Design & Engineering • In-house design centers with 400+ engineers across eight centres in India, the Middle East and Americas • >60 years library of transmission lines design database, including towers, hybrid poles and monopoles; expertise across designi
Slide 16: Railways
Railways • Currently executing 55+ projects; electrified 19% of the • Civil infrastructure such as bridges, tunnels, platforms, stations, Indian Railway network till date residential buildings and workshops • Electrification, track laying and other services in the technology • Complete turnkey solut
Slide 17: Civil
Civil • Focus on construction of factories, warehouses, residential• Currently executing 60+ projects buildings, commercial complexes, data centres, airports,• Leveraging advanced digital technologies such as drones, metros, water pipelines and water treatment plants photogrammetry, BIM, and IoT in
Slide 18: Renewables
Renewables • One of the few companies with capabilities to execute• Supply/sourcing of key equipment and structures large-scale projects of up to 600 MWp, including Single Axis• Complete range of civil works and O&M services Tracker technology and unique solar projects such as • Integrated EPC solut
Slide 19: Oil & Gas Pipelines
Oil & Gas Pipelines • KEC launched the Oil and Gas Pipelines EPC business in line with the Government’s thrust in the sector and our strategy to diversify the business portfolio into adjacencies. • The business focusses on the construction of Oil & Gas cross-country pipelines in India as well as in
Slide 20: Cables
Cables • Extensive range of cables & turnkey cabling solutions offered in 90+ countries • Two fully integrated facilities, manufacturing a wide range of Power (HT, LT and EHV up to 220 kV), Control & Instrumentation, Telecom, Solar, Railway Signalling Cables and Railway Contact & Catenary Conductors
Slide 21: Key Performance Highlights & Financial Overview
2 Key Performance Highlights & Financial Overview Logistic Park at Bangalore, Karnataka 21
Slide 22: Financial Highlights FY24 – Growth Across Parameters
Financial Highlights FY24 – Growth Across Parameters FY24 vs FY23 Revenues EBITDA PBT PAT 15% 46% 165% 97% YoY YoY YoY YoY % 6.1% % 2.1% % 1.7% 19,914 Cr 1,215 Cr 426 Cr 347 Cr T&D Civil Railways • Revenues of Rs. 10,456 Cr, robust growth of • Revenues of Rs. 4,370 Cr, a healthy growth of 32% YoY •
Slide 23: Financial Highlights Q2 & H1 FY25 – Growth Across Parameters
Financial Highlights Q2 & H1 FY25 – Growth Across Parameters Q2 FY25 vs Q2 FY24 Revenues EBITDA PBT PAT 14% 17% 72% 53% YoY YoY YoY YoY % 6.3% % 2.2% % 1.7% 5,113 Cr 320 Cr 113 Cr 85 Cr H1 FY25 vs H1 FY24 Revenues EBITDA PBT PAT 10% 18% 100% 76% YoY YoY YoY YoY % 6.4% % 2.3% % 1.8% 9,625 Cr 615 Cr 2
Slide 24: Order Intake & Order Book (Consolidated)
Order Intake & Order Book (Consolidated) Order Intake – YTD FY25 Order Book – YTD FY25 T&D : 63% SAE : 6% T&D: 52% SAE : 3% 6% 2% 2% 6% 3% 10% 11% Order Intake Rs 13,482 Cr. Order Book (Growth of 50%) Rs 34,088 Cr. 9% 55% 69% 27% T&D Civil Railways Renewables Cables T&D Civil Railways Renewables Cab
Slide 25: Key Business Highlights
Key Business Highlights T&D Civil Railways • Revenues of Rs. 2,831 Cr, robust growth of • Revenues of Rs. 1,152 Cr • Revenues of Rs. 503 Cr 28% YoY • YTD Order inflow Rs. 1,200 Cr+ in industrial, • YTD order intake of over Rs. 1,300 Cr in the • Significant traction in order intake with a residential
Slide 26: Infrastructure Sector – A Multi Decadal Opportunity
Infrastructure Sector – A Multi Decadal Opportunity Urban T&D Civil Renewables Railways Infrastructure • Large opportunities • Real estate boom: • Infrastructure • India's ambition to • Highest-ever owing to generation Residential and development key for achieve 500 GW of allocation of INR 2.5 capac
Slide 27: Profit and Loss Summary (Consolidated)
Profit and Loss Summary (Consolidated) (₹ crore) Growth Growth Q2 FY25 Q2 FY24 H1 FY25 H1 FY24 (Y-o-Y) (Y-o-Y) Revenues 5,113 4,499 14% 9,625 8,743 10% EBITDA 320 274 17% 615 519 18% EBITDA Margins 6.3% 6.1% 6.4% 5.9% (+) Other Income 7 16 26 19 (-) Depreciation 45 47 92 88 (-) Interest 168 178 -5%
Slide 28: Profit and Loss Summary (Standalone)
Profit and Loss Summary (Standalone) (₹ crore) Growth Growth Q2 FY25 Q2 FY24 H1 FY25 H1 FY24 (Y-o-Y) (Y-o-Y) Revenues 4,484 3,982 13% 8,372 7,684 9% EBITDA 230 184 25% 428 353 21% EBITDA Margins 5.1% 4.6% 5.1% 4.6% (+) Other Income 33 17 52 21 (-) Depreciation 37 37 75 69 (-) Interest 152 155 -2% 28
Slide 29: Businesswise Revenue Performance (Consolidated)
Businesswise Revenue Performance (Consolidated) Growth Growth (₹ crore) Particulars Q2 FY25 Q2 FY24 H1 FY25 H1 FY24 (Y-o-Y) (Y-o-Y) T&D: 2,831 2,209 28% 5,330 4,349 23% - T&D (KEC) 2,514 1,876 34% 4,667 3,707 26% - SAE Towers 317 333 -5% 663 641 3% Non T&D: 2,369 2,445 -3% 4,461 4,705 -5% - Civil 1,
Slide 30: KEC: Equity Share Information
KEC: Equity Share Information Year-End Market Capitalisation (Rs. Crore) (₹ crore) Equity Share Information 30000 28000 • Share Price (30 Sept 2024): Rs. 1,068.00/share 25000 • Market Cap (30 Sept 2024): Rs. 28,000+ crore • Financial Year – April to March 21500 • Listed on Indian Stock Exchanges 200
Slide 31: Environmental, Social and Governance (ESG)
KEC International has been ranked 1st in Infrastructure Sector & Among Top 30 4 of India’s Most Sustainable Companies by Environmental, Social and Governance (ESG) *1st in Infrastructure (Engineering) Sector
Slide 32: Key Highlights – ESG & Sustainability
Key Highlights – ESG & Sustainability Significant improvement across all nine Sustainability goals resulting in ESG Rating improvement Expanded deployment of ESG initiatives across 100+ project sites in addition to factories Investment in Solar Rooftop plants – Fulfilling 27% of our total ener
Slide 33: ESG & Sustainability Goals and Status
ESG & Sustainability Goals and Status Happiness Diversity & Occupational Corporate Social Quotient Inclusion Heath & Safety Responsibility Target: Increase Happiness Target: Increase in diversity by Target: Work towards the Target: Reach 2 lac CSR Quotient to 85% by FY26 25% by FY26 goal of achievin
Slide 34: Sustainability Roadmap – Key Initiatives and Approach
Sustainability Roadmap – Key Initiatives and Approach • Launched Purpose Statement and Culture Pillars • Automated design and engineering with digital • Focus on Holistic Wellness – Physical, Mental & intervention to reduce material consumption and Happiness Financial : Partnering with agencies, act
Slide 35: Thank You
THANK YOU Global Footprint in 110+ countries* *Includes EPC and Supply Follow us on: Registered Office RPG House, 463, Dr. Annie Besant Road, Worli, Mumbai - 400 030. Phone: +91-22-6667 0200 Email: kecindia@kecrpg.com www.kecrpg.com