Slide 1: Investor Presentation
Investor Presentation February 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 2.3% +55% +120% 2,136 2,186 466 328 300 149 Q3 FY15 Q3 FY16 Q3 FY15 Q3 FY16 Q3 FY15 Q3 FY16 Revenue EBITDA PAT -2% +21% +112% 6,205 6,067 1,103 1,032 914 486 9m FY15 9m FY16 9m FY15 9m FY16 9m FY15 9m 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. 25
Slide 6: Standalone Financial Results
Standalone Financial Results Rs. Million Q3 FY16 Q3 FY15 YoY 9m FY16 9m FY15 YoY Total Revenue 2,185.6 2,135.6 2% 6,067.1 6,204.6 -2% Operating Expenses 1,410.1 1,518.6 4,033.5 4,374.0 Employees Expenses 105.7 96.3 319.5 270.5 Other Expenditure 204.1 220.5 611.3 645.7 EBITDA 465.6 300.2 55% 1,102.7
Slide 7: Business Overview
Kurc KNR CONSTRUCTIONS LIMITED Business Overview
Slide 8: 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 9: 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 10: 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 11: 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 12: Key Business Strengths
Kurc KNR CONSTRUCTIONS LIMITED Key Business Strengths 12
Slide 13: 1. 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 14: 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 15: 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 16: 2. 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 562 2 Excavators 141 3 Compactors 65 4 Concrete Mixers And Pumps 45 5 Loaders 41 6 Pavers 33 7 Crushers 15 8 Graders 31 9 Tractors 26 10 Cranes 33 250
Slide 17: 3. In-house Execution Team
3. In-house Execution Team In-house team of 700 Qualified and experienced employees led by proven management team 13% 25% 5% Project Engineering Site Supervision 22% Site Engineers Equipment Operators 35% Admin & Office Staff 17
Slide 18: 4. 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 19: 4. 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) 19
Slide 20: BOT Portfolio
Kurc KNR CONSTRUCTIONS LIMITED BOT Portfolio 20
Slide 21: 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 22: 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 Novemb
Slide 23: BOT Portfolio – Under Construction
BOT Portfolio – Under Construction Particulars KNR Muzaffarpur Barauni Tollway Private Limited Stake 51% Project Type Road-Toll Project Detail State Bihar JV Partner JKM Infra Project Ltd Client NHAI No of Lanes Two Length(KM) 108 Concession Start Date 8th July 2012 Concession Period 21 Years Terms
Slide 24: 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 Final Completion Certificate for 100% of Project length has been issued for the project on 31st October 201
Slide 25: 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 December 2015 Physical Progress: 77.40
Slide 26: Order Book & Business Strategy
Order Book & Business Strategy 26
Slide 27: Order-book Break-up
Order-book Break-up Order book of Rs. 34,701 million as on 31st December 2015 State Govt. 41% Captive Pvt. Cos. Projects 1% 1% International Order* 8% Central Govt. 49% Captive State Govt. Central Govt. International Order* Pvt. Cos. Projects * - Government of People's Republic Of Bangladesh 27
Slide 28: Order-book Highlights
Order-book Highlights Roads - Key Projects Rs. mln Non Captive Madurai -Ramanathpuram Section of NH-49 8,956 Irrigation 97% 2% Roads - Thiruvananthapuram Bypass 6,691 Captive 1% Upgrading Arcot Villupuram Road 3,200 Chittagong City outer Ring Road,Bangladesh 2,628 Widening and reconstruction of Moha
Slide 29: Order-book: State-wise
Order-book: State-wise Madhya Pradesh Arunachal Pradesh No of Projects 3 No of Projects 1 Balance Value Rs. 3,148 mn Balance Value Rs. 600 mn Karnataka AP & Telangana No of Projects 8 No of Projects 8 Balance Value Rs. 1,822 mn Balance Value Rs. 2,190 mn Tamil Nadu Kerala No of Projects 7 No of Proj
Slide 30: 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 31: Financial Highlights
Kurc KNR CONSTRUCTIONS LIMITED Financial Highlights 31
Slide 32: Standalone Financial Results
Standalone Financial Results Rs. Million FY15 FY14 YoY Total Revenue 8,761.3 8,347.9 5% Operating Expenses 5,965.5 5,727.1 Employees Expenses 380.8 349.5 Other Expenditure 1,153.6 1,013.5 EBITDA 1,261.4 1,258.0 0% EBITDA margin 14.4% 15.1% Other Income 124.6 155.2 Depreciation 540.6 572.3 Interest 1
Slide 33: Standalone Balance Sheet
Standalone Balance sheet Rs. in Million Sep-15 Mar-15 Rs. in Million Sep-15 Mar-15 Shareholder’s Fund 6,396 5,692 Non-Current Assets 5,502 5,254 Share capital 281 281 Fixed Assets 2,343 2,269 Reserves & Surplus 6,115 5,411 Non-current Investments 228 228 Minority Interest 0 0 Deferred Tax Assets (Ne
Slide 34: Consolidated Financial Results
Consolidated Financial Results Rs. Million FY15 FY14 YoY Total Revenue 9,311.9 8,950.3 4% Operating Expenses 6,470.8 6,271.8 Employees Expenses 382.3 352.1 Other Expenditure 1,191.0 1,012.7 EBITDA 1,267.8 1,313.7 -3% EBITDA margin 13.6% 14.7% Other Income 128.9 171.8 Depreciation 551.7 585.8 Interes
Slide 35: Consolidated Balance Sheet
Consolidated Balance sheet Rs. in Million Mar-15 Mar-14 Rs. in Million Mar-15 Mar-14 Shareholder’s Fund 7,885 6,110 Non-Current Assets 15,164 10,167 Share capital 281 281 Fixed Assets 13,432 8,575 Reserves & Surplus 7,604 5,829 Non-current Investments 236 256 Minority Interest 560 559 Deferred Tax A
Slide 36: Standalone Financial Highlights
Standalone Financial Highlights Financial Year 2010 2011 2012 2013 2014 2015 Rs. 7,125 Rs. 7,930 Rs. 7,505 Rs. 6,921 Rs. 8,348 Rs. 8,761 Turnover $118.6 $132.0 $125.0 $115.2 $139.0 $140.0 Rs. 1,121 Rs. 1,356 Rs. 1,338 Rs. 1,164 Rs. 1,258 Rs. 1,261 EBITDA $18.7 $22.6 $22.3 $19.4 $20.9 $20.1 Rs. 826 R
Slide 37: Standalone Financial Highlights
Standalone Financial Highlights Revenue & EBITDA (Margin %) EBITDA 15.7% 17.1% 17.8% 16.8% 14.4% 15.1% Margin (%) 8,761 8,348 7,930 7,505 7,125 6,921 Revenue 1,121 1,356 1,338 1,164 1,258 1,261 EBITDA 2010 2011 2012 2013 2014 2015 Net Profit & Net Worth (RoE) RoE (%) 16.7% 16.1% 13.1% 11.5% 11.9% 12
Slide 38: Standalone Net Working Capital Days
Standalone Net Working Capital Days 79 69 53 52 48 98 43 74 40 66 64 45 51 37 26 23 28 7 10 13 16 16 15 18 15 20 11 8 Mar/10 Mar/11 Mar/12 Mar/13 Mar/14 Mar/15 Dec/15 Inventory Debtors Creditors Net Working Capital 38
Slide 39: Shareholding Pattern as on 31st December 2015
Shareholding Pattern as on 31st December 2015 Shareholders Holding more than 1% of the Equity % to Equity (Other than Promoters) HDFC Mutual Fund 8.35% 12% Tata Mutual Fund 3.76% 25% ICICI Prudential Mutual Fund 3.04% 61% L&T Mutual Fund 1.18% 3% DSP Blackrock Mutual Fund 1.02% PROMOTERS FOREIGN INS
Slide 40: 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 41: Project Gallery
Kurc KNR CONSTRUCTIONS LIMITED Project Gallery 41
Slide 42: 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 42
Slide 43: 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 43
Slide 44: Completed Projects
Completed Projects Road Project in the state of Karnataka - Road Project in the state of Karnataka - Bijapur - Hungund Bijapur - Hungund 44
Slide 45: Completed Projects
Completed Projects Walayar –Vadakkancherry BOT (Toll Road ) Walayar –Vadakkancherry BOT (Toll Road ) Project, Kerala Project, Kerala 45
Slide 46: Under-Construction Projects
Under-Construction Projects Muzaffarpur -Barauni Road project on BOT Muzaffarpur -Barauni Road project on BOT (Toll), Bihar (Toll), Bihar 46
Slide 47: Under-Construction Projects
Under-Construction Projects Bridge across River Godavari in Telangana State 47
Slide 48: Under-Construction Projects
Under-Construction Projects Bridge across River Godavari in Telangana Bridge across River Godavari in Telangana State State 48
Slide 49: Under-Construction Projects
Under-Construction Projects Flyover at Coimbatore in the State of Tamil Irrigation Project in Telangana State Nadu 49
Slide 50: 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