Slide 1: RITES Limited Corporate Presentation
RITES Limited Corporate Presentation November 2019
Slide 2: Disclaimer
Disclaimer THIS PRESENTATION (“PRESENTATION”) DOES NOT CONSTITUTE OR FORM PART OF ANY OFFER OR INVITATION OR INDUCEMENT TO SELL OR ISSUE, OR ANY SOLICITATION OF ANY OFFER TO PURCHASE OR SUBSCRIBE FOR, ANY SECURITIES OF RITES LIMITED (THE “COMPANY”), NOR SHALL IT OR ANY PART OF IT OR THE FACT OF ITS
Slide 3: Agenda
Agenda 1 Company Overview 2 Key Strengths 3 Appendix 3
Slide 4: Company Overview
1 Company Overview 4
Slide 5: RITES - Introduction
RITES - Introduction A Miniratna (Category-I) Schedule ‘A’ Central Public Sector Enterprise (CPSE), Diversified Revenue Stream - FY19 under Ministry of Railways (MoR) 27.7% Consultancy Services Experience spanning over 45 years in over 55 countries 56.2% Sale of Lease Services Services Leading multi
Slide 6: Key Events in the History of The Company
Key Events in the History of The Company Recorded highest ever standalone revenue of INR 21,645 million Listed in July 2018 with oversubscription of 67 times Ahmedabad Metro made operational – RITES GC partnership 2018-19 Secured PMC services for Trident Port in Mauritius Longest rail-cum-
Slide 7: Key Subsidiary and Joint Venture (JV)
Key Subsidiary and Joint Venture (JV) Railway Energy Management Company Limited (“REMCL”) – Subsidiary Incorporated on August 16, 2013 to carry out business relating to: Creation, planning, promoting, constructing, executing, organizing, arranging and augmenting capacity in all activities relati
Slide 8: Key Strengths
2 Key Strengths 8
Slide 9: Key Strengths
Key Strengths 1 Comprehensive range of offerings and a diversified sector portfolio in the transport infrastructure space 2 Large order book with strong and diversified clientele base across sector 3 Preferred consultancy organization of the Government of India including the Indian Railways 4 Techni
Slide 10: Comprehensive Range of Offerings and a Diversified Sector Portfolio
1 Comprehensive Range of Offerings and a Diversified Sector Portfolio in the Transport Infrastructure Space Service Offerings A B C D Consultancy Locomotives Leasing Export of rolling stock and Turnkey construction Services Services spare parts Services Provides a comprehensive range Leases loco
Slide 11: With an expertise in the transport infrastructure sector
1 Comprehensive Range of Offerings and a Diversified Sector Portfolio in the Transport Infrastructure Space RITES offers a comprehensive range of services across major market Offerings in transport infrastructure consultancy and segments in the transport infrastructure sector engineering services Ra
Slide 12: Large Order Book With Strong and Diversified Clientele Base Across Sectors
2 Large Order Book With Strong and Diversified Clientele Base Across Sectors Strong Order Book* indicating revenue visibility As on As on As on Order Book (INR Mn) Services 31.03.2018 31.03.2019 30.09.2019 Company is executing approx. 950 – Consultancy 23,840 23,170 24,740 60,970 58,330 1,000 projec
Slide 13: Preferred Consultancy Organization of the Government of India including the Indian Railways
3 Preferred Consultancy Organization of the Government of India including the Indian Railways Preferred organisation for the Government of India Selected Domestic and International Projects A Miniratna (Category – I) Schedule “A” Central Public Sector Enterprise Domestic Projects Railway electrifi
Slide 14: Technical Expertise and Business Divisions with Specialized Domain Knowledge
4 Technical Expertise and Business Divisions with Specialized Domain Knowledge and Stringent Quality Controls Technical expertise housed in various business division with specialized domain knowledge across market segments Rail Infrastructure Division Urban Infrastructure Division Provides consult
Slide 15: Experienced Management Personnel and Technically Qualified Team
5 Experienced Management Personnel and Technically Qualified Team Board of Directors Mr. Rajeev Mehrotra Chairman & Managing Director and Chief Executive Officer 35+ years of experience with over 12 years at Board level with RITES He holds a Bachelor’s Honors degree in Accountancy and Business S
Slide 16: Experienced Management Personnel and Technically Qualified Team
5 Experienced Management Personnel and Technically Qualified Team Board of Directors …Supported by a strong in-house team No. of Employees – 3,313 (As of September 30,019) Mr. Alok Kumar Tewari, Govt. Nominee Director 322 38+ years experience and associated with RITES since May’19 He is a Mechan
Slide 17: Senior Management with an Average Experience of About 33 Years
5 …Senior Management with an Average Experience of About 33 Years 36+ years of experience. Associated with RITES since 30+ yrs of experience; Associated with RITES since Apr’09 Mr. Alok Garg Oct’83 Mr. Ved Prakash He holds a Bachelor’s and Master’s degree in Economics (Executive Director – H
Slide 18: Strong and Consistent Financial Performance
6 Strong and Consistent Financial Performance Supported by Robust Internal Control and Risk Management System Strong growth in Total Revenue… …With well diversified revenue segments (INR Mn)… (INR Mn) Revenue FY15 FY16 FY17 FY18 FY19 Q2FY20 22,396 Consultancy 7,032 7,689 8,328 10,099 11,514 5,188 Se
Slide 19: Strong and Consistent Financial Performance
6 Strong and Consistent Financial Performance Supported by Robust Internal Control and Risk Management System …and Consistent Returns Strong Balance Sheet to support Net Worth (INR Mn) RoE* (%) 23,838 21,991 20.1% 19.4% 20,479 18,581 16.9% 16,696 15.2% 15.6% FY15 FY16 FY17 FY18 FY19 FY15 FY16 FY17 F
Slide 20: Strategy Going Forward
Strategy Going Forward Leverage its experience and continue Company intends to leverage its domain knowledge and technical expertise across various sub-sectors of the transport 1 to build on its core competencies in infrastructure sector by way of alliances, joint ventures, subsidiaries and consor
Slide 21: Appendix
3 Appendix Awards & Recognitions Key Growth Drivers for Transport Infrastructure Sector Organisation Structure Financial Statements 21
Slide 22: Awards & Recognitions
Awards & Recognitions Year Award/ Recognition “Niryat Shree - Gold Trophy” in the category of Engineering and Electronics sector (non-MSME) from Federation of Indian Export Organisations 2015-16 “National Award for Excellence in Cost Management-2015 (Second Position - Public Service Sector Mediu
Slide 23: Appendix
3 Appendix Awards & Recognitions Key Growth Drivers for Transport Infrastructure Sector Organisation Structure Financial Statements 23
Slide 24: Growing Indian Economy is Driving Investments in Infrastructure Developments
Growing Indian Economy is Driving Investments in Infrastructure Developments India’s Growing GDP driving stride of Urbanization India’s GDP Growth Rate (%) Urbanization in India 10.3% Total Population (Mn) Urban Population (Mn) Urbanization Rate 9.8% 9.3% 9.3% 8.5% 40.8% 7.9% 7.9% 8.0% 8.2% 7.5% 7.1
Slide 25: Ramping up Investments in Indian Railways is the Top Priority Area
Ramping up Investments in Indian Railways is the Top Priority Area for Govt. of India Overstretched infrastructure of Indian Railways driving investments in the Sector Capital support for railways of INR 658.4 Bn budgeted for FY20 as Capital Investments budgeted in Indian Railways (INR Bn) compared
Slide 26: Roads and Highway Sector Dominates Government's Planned Expenditure
Roads and Highway Sector Today Dominates the Government’s Planned Expenditure Amongst Other Key Infrastructure Segments Sustained economic growth has brought about a remarkable development expansion in infrastructure of the road sector Overview of Road Infrastructure in India as of FY19 Budgetary Ou
Slide 27: India is the 3rd Largest Producer and Consumer of Power
India is the 3rd Largest Producer and 3rd Largest Consumer of Power in the World India is the 3rd largest producer and 4th largest consumer of power in the world Segment wise installed power generation …With increasing Renewable Energy generation capacity India has the 4th largest wind power capacit
Slide 28: Overview of Urban Transportation
Overview of Urban Transportation Outlook for Urban infrastructure in India over the next 3-5 years Smart Cities Metro Rail System Expenditure by Govt. of India New policy stipulated shift from Fin. IRR of 8% to Eco. IRR of for development of Metro Systems (INR Bn) The present government has ambi
Slide 29: Airports and Ports
Airports and Ports Outlook for Investments in Airport Infrastructure Outlook for Investments in Port Infrastructure India set to become 3rd largest aviation market by 2020 India has 12 major ports. Under the National Perspective Plan for Sagarmala, six India’s aviation industry is expected to
Slide 30: Appendix
3 Appendix Awards & Recognitions Key Growth Drivers for Transport Infrastructure Sector Organisation Structure Financial Statements 30
Slide 31: Organization Structure
Organization Structure Board of Directors Chairman and Managing Director Director (Projects) Director (Technical) Director (Finance) Chief Vigilance Officer Executive Director – Executive Director – Executive Director – Rail Infrastructure Urban Infrastructure Expotech Executive Director – Privatisa
Slide 32: Appendix
3 Appendix Awards & Recognitions Key Growth Drivers for Transport Infrastructure Sector Organisation Structure Financial Statements 32
Slide 33: Summary Statement Of Profit And Loss (Consolidated)
Summary Statement Of Profit And Loss (Consolidated) (INR Mn) H1FY20 FY19 FY18 FY17 FY16 FY15 Revenue: Revenue from operations 12,839 20,475 14,975 13,515 10,905 10,127 Other income 1,729 1,922 1,535 2,099 1,362 1,464 Total revenue 14,568 22,396 16,510 15,614 12,267 11,591 Expenditure: Employee benef
Slide 34: Summary Statement Of Assets (Consolidated)
Summary Statement Of Assets (Consolidated) (INR Mn) H1FY20 FY19 FY18 FY17 FY16 FY15 Property, plant and equipment 5,133 4,765 4,000 4,035 4,154 2,057 Right of use Assets 217 - - - - - Capital work in progress 55 23 4 42 70 257 Investment property 8 8 12 13 13 13 Intangible assets 6 6 9 17 31 48 Inta
Slide 35: Summary Statement Of Equity & Liabilities (Consolidated)
Summary Statement Of Equity & Liabilities (Consolidated) (INR Mn) H1FY20 FY19 FY18 FY17 FY16 FY15 Equity: Equity share capital 2,500 2,000 2,000 2,000 1,000 1,000 Other equity 24,020 22,221 20,136 18,512 17,635 15,762 Equity attributable to equity shareholders of the company 26,520 24,221 22,136 20,
Slide 36: Summary Statement Of Cash Flows (Consolidated)
Summary Statement Of Cash Flows (Consolidated) (INR Mn) H1FY20 FY19 FY18 FY17 FY16 FY15 Cash flow from operating activities: Net profit before tax 4,800 7,301 5,186 5,046 4,506 4,682 Adjustments for: - Other comprehensive income before tax (56) (28) (34) 10 (15) 30 - Loss before tax from discontinue
Slide 37: Thank You
Thank You 37