Rpp Infra Projects Ltd. · NSE:RPPINFRA
Rpp Infra Projects — FY2019 Earnings Presentation
29 slides from Rpp Infra Projects's earnings presentation, Jun 1, 2019
Slide 1: Filing cover letter to BSE and NSE
iS 7X RPP Infra Projects Ltd zh Saturday, 1 June, 2019 Corporate Relationship Department BSE Limited ist Floor, New Trading Ring, Rotunda Ruilding, P.J.Towers, Dalal Street, Fort, Mumbai - 400001. Scrip Code: 533284 Sub: Investor Presentation Dear Sir/Madam, The Manager, Listing Department National
Slide 2: RPP Infra Projects Ltd Corporate Presentation FY19
RPP INFRA PROJECTS LTD CORPORATE PRESENTATION | FY19
Slide 3: Disclaimer
Disclaimer This presentation contains forward-looking statements which may be identified by their use of words like “plans,” “expects,” “will,” “anticipates,” “believes,” “intends,” “projects,” “estimates” or other words of similar meaning. All statements that address expectations or projections abo
Slide 4: Agenda
Agenda 1 Introduction to the Company Slides 4-7 2 Q4FY19 Review & Future Guidance Slides 8-14 3 Industry Overview Slides 15-17 4 Appendix – Company Overview Slides 18-29
Slide 5: Strong Delivery Despite Tough Environment
Strong Delivery Despite Tough Environment FY19 Guidance FY19 Actual FY20 Outlook Revenue INR 5.3-5.5 Bn INR 5.8 Bn FY19 Highlights o Strong Order Book of INR 19.44 Bn o Revenue growth of 16.3% despite tough operating environment o Reported EBITDA Margins at 10.7%, not including GST- related adjustme
Slide 6: A Pure Play Niche EPC Company
A Pure Play Niche EPC Company Order Book (Mar’19) – INR 19,442.5 Mn Strong presence in the fast-growing micro-markets of Buildings South India 23% Water Currently spreading its footprints in Maharashtra and MP Management for geographical diversification 35% Diversified presence in Highways, Ro
Slide 7: A Fast Growing Company
A Fast Growing Company… Revenue (INR Mn) EBITDA (INR Mn) PAT (INR Mn) 661 315 620 5,807 4,991 502 239 243 463 207 3,663 348 173 3,147 318 2,631 2,329 117 FY 14 FY 15 FY 16 FY 17 FY 18 FY 19 FY 14 FY 15 FY 16 FY 17 FY 18 FY 19 FY 14 FY 15 FY 16 FY 17 FY 18 FY 19 Adjusted PAT in FY18 is excluding one
Slide 8: With a Strong Balance Sheet, Creating Superior Shareholder Value
…With a Strong Balance Sheet, Creating Superior Shareholder Value RoE (%) Net debt to equity (x) 17.4% 0.58 14.7% 0.49 12.7% 12.30% 10.5% 0.33 0.30 8.6% 0.20 (0.03) FY 14 FY 15 FY 16 FY 17 FY 18 FY 19 FY 14 FY 15 FY 16 FY 17 FY 18 FY 19 7
Slide 9: Q4FY19: Stable Performance Amid Tight Liquidity
Q4FY19: Stable Performance Amid Tight Liquidity Operational Highlights Revenue (INR Mn) EBITDA (INR Mn) & EBITDA Margin (%) 2,067 12.8% 7.2% • Q4FY19 revenue growth of 181 46% led by strong 149 execution of order book o Revenue up 29% YoY due to 1,417 strong execution • Changes in billing pattern to
Slide 10: FY19 – Balance Sheet Strength Intact
FY19 – Balance Sheet Strength Intact 12.3% 0.3x Return on Net Debt to Equity Equity (%) (x) 103 Days 13 Days 87 Days Receivable Days Inventory Days Payable Days 9
Slide 11: Q4 & FY19 At a Glance
Q4 & FY19 At a Glance INR Mn Q4FY19 Q4FY18 % Change (YoY) FY19 FY18 % Change (YoY) Revenues 2,067 1,417 46% 5,807 4,991 16.3% EBITDA 149 181 -18% 619.7 660.6 - 6.2% EBITDA Margin 7.2% 12.7% 10.7% 13.2% Finance Cost 72.8 47 56% 232.4 185.6 25.2% Reported PAT 14.9 82.9 -82% 243.5 133.5 - 22.2% Reporte
Slide 12: Business Review
Business Review ROADS Current Order Book – INR 8,309 Mn Embedded EBITDA margins of 12-14% WATER MANAGEMENT Current Order Book – INR 6,764 Mn Embedded EBITDA margins of 15-18% BUILDINGS Current Order Book – INR 4,369 Mn Embedded EBITDA margins of 10-12% 11
Slide 13: Q4 FY19 – Strong Order Inflows
Q4 FY19 – Strong Order Inflows Name Amount Segment State Q4FY19 Wins Slum Clearance Board, Tamil Nadu INR 1,057 Buildings Tamilnadu BHEL, Chennai INR 629 Mn Buildings Tamilnadu Tiruppur City Municipal Corporation INR 1,947 Mn Water Management Tamilnadu BHEL, Chennai INR 402 Mn Buildings Tamilnadu Th
Slide 14: Orderbook Growth Trajectory
Orderbook Growth Trajectory Order Book Break up Andhra Bangladesh (INR Mn) Telangana Pradesh 4% 100% 0% 1% Jharkhand Govt Order Book 3% Karnataka 5% 19,442 Kerala INR 6.5 Bn 7% New Order Wins in H2FY19 so far Madhya Pradesh Gujarat 1% 4% Tamil Nadu 49% 10 11,750 States of Operations 7,860 7,250 3 Ma
Slide 15: Key Investment Highlights
Key Investment Highlights Growing Order Book c.2.5x in 3 years Short duration projects • 3.35x Book to Bill ratio Strong revenue visibility 87% of projects to be completed in 18-24 months period Superior Revenue Growth • 15-20% for next 2 years De-risked Business Profile • 100% Government orders Hea
Slide 16: Industry Overview
& Rte Industry Overview 15
Slide 17: Construction industry in India: Compelling growth drivers
Construction industry in India: Compelling growth drivers o Growing economy and increasing urbanization along with favorable policy bodes well for construction sector in the country o Big boost in infrastructure spending expected over next few years Highway Construction km/day 30 27 Significant Trac
Slide 18: Rural Infra: A Strong Government Focus
Rural Infra: A Strong Government Focus o Pradhan Mantri Gram Sadak Yojana (PMGSY), launched by GoI to provide connectivity to unconnected Habitations as part of a poverty reduction strategy o Involves construction of about 3.71 lakh km. of roads for New Connectivity and 3.68 lakh km. under upgradati
Slide 19: Appendix – Business Highlights
Appendix – Business Highlights 18
Slide 20: De-Risked Business Model
De-Risked Business Model Short Max Project Duration: 24 mths Low Ticket Max Project Size < INR 250 Crores Duration Projects Projects Superior Profitability EBITDA Margins: 12%-13% 19
Slide 21: Improving Geographical Diversification
Improving Geographical Diversification FY14 Order Book – INR 5,360 mn Order Book (Mar’19) – INR 19,442 Mn Andhra Pradesh Bangladesh Telangana 1% 4% 0% Jharkhand 3% Karnataka 5% Uttar Pradesh, 9% Kerala Maharashtra, 7% 6% Madhya Pradesh Gujarat 1% 4% Karnataka, Tamil Nadu 12% 49% Tamil Nadu, 73% Maha
Slide 22: High Revenue Visibility
High Revenue Visibility Project Duration Project Duration by Sector 5-10 mths 2% 39% 11-15 mths 25% 23% 11% 8% 16-24 mths 2% 3% 87% 5-10 Mths 11-15 Mths 16-24 Mths Building Infra Water Mgmt Book to bill ratio: 4.8x 21
Slide 23: Efficient Operations
Efficient Operations Large Talent Pool Small Ticket Size Captive equipment Stringent Enhance Onsite Liquidity Operations Control Strategic Subcontracting Raise Accelerate Milestone Bills Project Faster Completion Accurate Project Modelling 22
Slide 24: Key Marquee Projects
Key Marquee Projects Power Projects & Civil Infrastructure Industries Water & Irrigation Buildings Work •Sub Station at KPTCL, •Atomic Energy, •BHEL – Tirchy, Chennai •Construction for •1000 units of homes Karnataka Kalpakkam •MRPL, Bangalore contour canal for 49.3 for IDPs in Sri Lanka •Udupi Proje
Slide 25: Talent Driven Organization
Talent Driven Organization ▪ Started RPP Infra in 1988 Mr. P. Arulsundaram ▪ Civil Engineer by qualification Chairman & MD ▪ Practical experience of more than 23 years in construction industry ▪ Trustee in Erode District Builder’s Association Engineering College ▪ Masters in Business Administration
Slide 26: Board of Directors
Board of Directors ▪ Bachelors Degree from National Institute of Technology, Fellow of Institution of Mr. K. Ravi Engineers & Certified Maintenance Professional Independent Director ▪ Has over 43 years of experience in the construction industry ▪ Bachelors Degree from National Institute of Technolog
Slide 27: P&L Table - Standalone
P&L TABLE - STANDALONE INCOME STATEMENT (INR Mn) FY19 FY18 FY17 Revenue 5,807 4,991 3,663 Expenses 5,187 4,331 3,161 EBITDA 620 661 502 EBITDA Margin 11% 13% 14% Depreciation 64 68 50 Finance Cost 232 186 167 Other Income 87 64 31 PBT 410 471 316 PBT Margin 7% 9% 9% Tax Expense 167 336 77 * PAT 243
Slide 28: B/S Table - Standalone
B/S TABLE - STANDALONE Assets FY 19 FY 18 FY 17 Equity and Liabilities FY 19 FY 18 FY 17 Non-Current assets Property, plant and equipment 517 302 284 Equity Capital work in progress 39 2 40 Equity Share Capital 226 226 226 Other Intangible assets 26 1 0 Other Equity 1,866 1,645 1,524 Total equity 2,
Slide 29: Thank You & Contact Us
Thank You & Contact Us Sheetal Khanduja Go India Advisors +91 9769364166 sheetal@goindiaadvisors.com Tanya Khosla Go India Advisors +91 9769387813 tanya@goindiaadvisors.com 28