H.g. Infra Engineering Ltd. · NSE:HGINFRA
H.g. Infra Engineering — Q4 FY18 Earnings Presentation
32 slides from H.g. Infra Engineering's earnings presentation, May 2018
Slide 1: H.G. Infra Engineering Ltd Investor Presentation, May 2018
Investor Presentation, May 2018 H.G. Infra Engineering Ltd We make people move
Slide 2: Outline
Outline 01 Q4FY18 & FY18 Result Highlights 02 About the Company 03 Key Strengths and Drivers 04 Growth Strategy 05 Financial Highlights
Slide 3: Q4FY18 & FY18 Results Highlights
Q4FY18 & FY18 Results 01 Highlights
Slide 4: Result Highlights FY18
Result Highlights FY18 Higher execution, coupled with margin improvement leading to 58% PAT growth Revenue EBITDA and EBITDA Margin 32% 11.8% 14.9% 13,927 10,560 2,080 1,244 FY17 FY18 FY17 FY18 PBT PAT 7.9% 8.5% 5.1% 6.1% 1,188 842 834 534 FY17 FY18 FY17 FY18 Financials in Rs mn Revenue for FY18 is
Slide 5: Result Highlights Q4FY18
Result Highlights Q4FY18 33% robust growth in topline Revenue EBITDA and EBITDA Margin 11.6% 15.6% 33% 5,038 787 3,774 439 Q4FY17 Q4FY18 Q4FY17 Q4FY18 PBT PAT and PAT Margin 9.0% 9.1% 6.4% 7.2% 457 360 340 243 Q4FY17 Q4FY18 Q4FY17 Q4FY18 Financials in Rs mn Revenue for Q4FY18 is net of GST, whereas
Slide 6: Q4FY18 & FY18 Consolidated Profitability Highlights
Q4FY18 & FY18 Consolidated Profitability Highlights Q4FY18 Q4FY17 YoY FY18 FY17 YoY Revenue from operations 5,037.76 3,774.63 33.5% 13,927.25 10,560.28 31.9% Cost of material consumed 1,720.32 1,492.56 15.3% 5,462.38 4,088.66 33.6% Contract and site expenses 2,245.60 1,674.06 34.1% 5,474.70 4,715.79
Slide 7: About the Company
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Slide 8: Company Overview
Company Overview Experienced roads and highways construction company 15 29 1,200+ Years of track record in projects under execution Number of plant & project execution (22 roads & highways) machinery 6 2,800+ Rs 46,071 mn States where projects Qualified and Order Book (unexecuted as on March 31, 201
Slide 9: Track Record
Track Record Executed projects across geographies and clients Presence across 6 states Clients 1 1 1 1 9 19 3 Accreditations and awards 7 Quality Management Environment Management Health & Safety 1 No. of completed projects No. of ongoing projects u Letter of appreciation in 2012 from L&T for being
Slide 10: Milestones
Milestones Evolved from sub-contractor to main contractor with higher value contracts 2003-08 2010-14 2015-16 2017-18 Four laning of 49 mm on 7 construction projects in Incorporated in 2003 Construction project of four the Jaipur-Tonk-Deoli Maharashtra by MoRTH – section on NH-12 – laning of NH-65,
Slide 11: Completed Projects
Completed Projects Completed notable projects of different sizes & complexities Project 4 laning of Construction 2nd Renewal Coat Construction of Widening & Warora- Kuberpur to on the Pavement of Tonk-Deoli Jaipur Strengthening of Chandrapur- Fatehabad- Agra 6 lane Jaipur- Section NH96 Ballarpur Inn
Slide 12: Joint Ventures
Joint Ventures Between 2013-17, ongoing/completed 5 roads and highways projects through JVs M.G Rameshwar JV partner Tata Projects Ranjit Buildcon Colossal Contractors Prasad Sharma Limited Limited Construction Pvt Limited Contractor Changlang district Bari-Baseri-Weir- Project Babatpur to Chittorga
Slide 13: Management Team
Management Team Experienced and qualified senior management and operational team Mr. Harendra Singh Mr. Rajeev Mishra Chairman and Managing Director Chief Financial Officer • 23 years of experience in the construction industry • Over 10 years of experience in banking and real estate industry • Holds
Slide 14: Board of Directors
Board of Directors Management supported by independent Board Mr. Vijendra Singh Whole-time Director • 23 years of experience in the construction industry • Responsible for the overall functioning of the Company Mr. Ashok Kumar Thakur Independent Director • Holds a master’s degree in commerce from Lu
Slide 15: Key Strengths and Drivers
03 95> Key Strengths and Drivers
Slide 16: Industry Opportunity, Differentiated Business Model, Robust Order Book
INDUSTRY OPPORTUNITY Increasing investments Policy support and reforms Insufficient network DIFFERENTIATED BUSINESS MODEL TO DRIVE Evaluation and management skills GROWTH WITH Equipment bank Project team SUPERIOR MARGINS ROBUST ORDER BOOK 3.3x FY18 revenues Provides revenue visibility
Slide 17: Industry Opportunity
Industry Opportunity Increasing investment in the infrastructure sector with focus on roads & highways Government’s focus on improving domestic infrastructure leading to increasing investments in the sector (Rs tn) 30.93 u Cumulative investments in infrastructure projects from FY12-17 27.30 is estim
Slide 18: Industry Opportunity
Industry Opportunity Several factors driving the growth in infrastructure investments NH constitutes a mere 1.7% of the road network þ Policy changes fueling growth – land availability, fast- but carry about 40% of the total road traffic track clearances, revival of stalled projects, etc. Road Netwo
Slide 19: Differentiated Business Model
Differentiated Business Model Presence across the project lifecycle for better efficiency 1 2 3 Efficient project Technical and skilled Large in-house evaluation and team for project equipment bank management skills management Differentiated business model with focus on efficient execution, complete
Slide 20: Project Evaluation and Management
1 Project Evaluation and Management Presence across the project lifecycle for better efficiency and cost optimization u Focus on selection of projects with favorable execution conditions Preliminary project evaluation u Projects with our hurdle rate of profitability u In-house team for technical sur
Slide 21: Equipment Bank
2 Equipment Bank Invested Rs 3,700+ mn in plant and machinery in last 2 years u Owned equipments ensures control over execution u Ensures availability and quick mobilization u Eliminate delays and cost over-runs due to untimely break- Crushers Compactors Graders downs or non-availability Gross Block
Slide 22: Project Team
3 Project Team Total 2,894 employees; net addition of 1,397 in employees in FY18 No. of employees Large number of skilled employees 2,894 Semi Skilled 4x 180 1,497 Unskilled 1,070 147 690 Highly Skilled 411 Mar'15 Mar'16 Mar'17 Mar'18 Skilled 2,156 Employee Expenses (Rs mn) 5.4% 3.9% u 2,894 employe
Slide 23: Order Book
Order Book Robust order book of Rs 46,071 mn (~3.3x FY18 Revenues) Robust growth in order book (Rs mn) Order book breakup (Rs 46,071 mn) 3x Private clients, 25% 46,071 Government 40,191 clients, 75% Maharashtra, 35.0% Haryana, 14,463 13% Utarakhand & UP, 1% AP, 1% Mar'16 Mar'17 Mar'18 Rajasthan, 50.
Slide 24: Order Book: Top Orders Under Execution
Order Book Order book provides revenue visibility Top 5 orders under execution Value Project Nature of work Appointed Date (Rs mn) Gulabpura- Chittorgarh Section-2 Six Laning Nov 2017 7,117 Chittorgarh- Udaipur Section of NH-76 Six Laning Jul 2017 4,834 Section-1 Rehabilitation & Up-gradation from T
Slide 25: Growth Strategy
04 Growth Strategy
Slide 26: Strategy
Strategy Continue focus on core EPC projects with superior margins § Focus on road and highways EPC § Reduce business concentration § Invest in modern construction in limited geography equipment § De-risk by expanding the § Attract and retain talented presence in different states employees Business
Slide 27: Financial Highlights
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Slide 28: Revenue, EBITDA and PAT
Revenue, EBITDA and PAT Robust topline and profitability growth … Rs mn Revenue from Operations EBITDA & EBITDA Margin PAT & PAT Margin 10.6% 11.8% 14.9% 4.8% 5.1% 6.1% 13,927 842 2,081 10,560 534 7,409 1,244 354 781 FY16 FY17 FY18 FY16 FY17 FY18 FY16 FY17 FY18 Revenue for FY18 and Q4FY18 is net of
Slide 29: Return Ratios
Return Ratios … leading to superior return ratios Debt/EBITDA Return on Capital Employed Return on Net Worth 39% 40% 32% 30% 31% 29% 2.0 1.6 1.6 FY16 FY17 FY18 FY16 FY17 FY18 FY16 FY17 FY18 Disciplined working capital management Working Capital Days ü Debt is calculated as: Long Term + Short Term Bo
Slide 30: Consolidated Profit and Loss Statement
Consolidated Profit and Loss Statement Rs mn Mar-18 Mar-17 Revenue from operations 13,927.25 10,560.28 Cost of material consumed 5,462.38 4,088.66 Contract and site expenses 5,474.70 4,715.79 Employee expenses 761.43 407.93 Other expenses 148.05 103.55 Total Operating expenses 11,846.56 9,315.92 EBI
Slide 31: Consolidated Balance Sheet
Consolidated Balance Sheet Rs mn Mar-18 Mar-17 Mar-16 Share Capital 651.71 180.20 180.20 Reserves 4,756.92 1,581.15 1,047.51 Shareholders' Funds 5,408.63 1,761.35 1,227.71 Long Term Borrowings 1,246.98 634.78 284.47 Trade Payable 487.85 295.37 88.45 Employee benefit obligations 0.73 - 1.04 Total Non
Slide 32: Disclaimer
Disclaimer This presentation and the accompanying slides (the “Presentation”), which have been prepared by Company HG Infra Engineering Limited (the “Company”), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe f
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