Knr Constructions Limited · NSE:KNRCON
Knr Constructions — Investor Presentation (February 2017)
42 slides from Knr Constructions's investor presentation, February 2017
Slide 1: Investor Presentation February 2017
Investor Presentation February 2017 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 (Rs. Million) EBITDA (Rs. Million) Adjusted PAT* (Rs. Million) +75% +42% +8% 10,590 1,574 1,068 1,157 1,106 6,067 9M FY16 9M FY17 9M FY16 9M FY17 9M FY16 9M FY17 Revenue (Rs. Million) EBITDA (Rs. Million) Adjusted PAT* (Rs. Million) +75% +24% +22% 3,823 577 41
Slide 5: Key Updates
Key Updates ❖ Signed a share purchase agreement to sell their equity stake in two Road BOT assets ✓ Company along with Patel Engineering Limited (PEL) signed a share purchase agreement to sell entire equity stake in two Road BOT assets viz. Patel KNR Infrastructure Limited and Patel KNR Heavy Infras
Slide 6: Standalone Financial Results – 9M
Standalone Financial Results – 9M Rs. Million 9M FY17 9M FY16 YoY Net Sales 10,474.3 5,907.8 77% Other Operating Income 115.2 159.2 -28% Total Revenue 10,589.5 6,067.1 75% Operating Expenses 7,659.5 4,033.5 Employees Expenses 406.8 316.5 Other Expenditure 949.6 611.5 EBITDA 1,573.6 1,105.6 42% EBITD
Slide 7: Standalone Financial Results – Q3
Standalone Financial Results – Q3 Rs. Million Q3 FY17 Q3 FY16 YoY Net Sales 3,805.5 2,034.9 87% Other Operating Income 17.3 150.7 -88% Total Revenue 3,822.8 2,185.6 75% Operating Expenses 2,772.8 1,410.1 Employees Expenses 148.1 104.7 Other Expenditure 325.0 204.0 EBITDA 576.9 466.7 24% EBITDA margi
Slide 8: Standalone Balance Sheet
Standalone Balance Sheet Rs. Millions Sep-16 Rs. Millions Sep-16 EQUITY 8,046 NON-CURRENT ASSETS 9,269 Fixed Assets Equity Share capital 281 Property, plant and equipment 2,647 Other equity 7,765 Capital work-in-progress 32 NON - CURRENT LIABILITIES 1,437 Other Intangible assets 0 Financial liabilit
Slide 9: Business Overview
Kurc KNR CONSTRUCTIONS LIMITED Business Overview
Slide 10: Business Overview Vision
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 11: Transformation
Transformation 2016 Crossed Revenue of Rs. 10,000 mn on Standalone Basis 2/4 laning of Madurai–Ramanathapuram Section of NH-49 in 2015 the State of Tamil Nadu on EPC mode worth Rs. 9,371 mm 2013 3rd BOT Toll project worth Rs.9,005 mn in Kerala Early completion of Biggest Road Project – Bijapur Hungu
Slide 12: Management
Management… Mr. K.Narasimha Reddy – Founder Promoter & Managing Director ❖ Over 48 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 13: 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 14: Key Business Strengths
Kurc KNR CONSTRUCTIONS LIMITED Key Business Strengths 14
Slide 15: 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 execution (Days) Selection of Major Raw Material Selection of construction Camp locatio
Slide 16: 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 17: 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 18: 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 682 2 Excavators 155 3 Compactors 73 4 Concrete Mixers And Pumps 112 5 Loaders 41 6 Pavers 14 7 Crushers 14 8 Graders 32 9 Tractors 28 10 Cranes 35 250
Slide 19: 3. In-house Execution Team
3. In-house Execution Team In-house team of 825 Qualified and experienced employees led by proven management team 1% 6% 36% 22% Project Engineering Site Supervision Site Engineers Equipment Operators 35% Admin & Office Staff 19
Slide 20: 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 21: 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) 21
Slide 22: BOT Portfolio
Kurc KNR CONSTRUCTIONS LIMITED BOT Portfolio 22
Slide 23: BOT Portfolio – Annuity Projects
BOT Portfolio – Annuity 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 Concessio
Slide 24: BOT Portfolio – Toll Projects
BOT Portfolio – Toll Projects Particulars KNR Walayar Tollways Private Limited KNR Muzaffarpur Barauni Tollway Private Limited Stake 100% 51% Project Type Road-Toll Road-Toll Project Detail State Kerala Bihar JV Partner - JKM Infra Project Ltd Client NHAI NHAI No of Lanes Two to Four Two Length(KM)
Slide 25: 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 ❖ Provisional Completion Certificate for 100% of Project length has been issued for the project on 31st Octob
Slide 26: 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 ❖ Provisional Completion Certificate for 75% of Project length has bee
Slide 27: Order Book & Business Strategy
Order Book & Business Strategy 27
Slide 28: Order-book Break-up
Order-book Break-up Order book of Rs. 42,381 million as on 31st December 2016 Other State Govt. 100% 42% Others Captive 1% 0% International Order* 5% Central Govt. 52% Captive State Govt. Central Govt. International Order* Others * - Government of People's Republic Of Bangladesh 28
Slide 29: Order-book Highlights
Order-book Highlights Key Projects Rs. mln Irrigation Roads - 15% Hubli – Hospet Section of NH - 63 6,674 Non Captive 85% Roads - Madurai -Ramanathpuram Section of NH-49 5,685 Captive 0% Thiruvananthapuram Bypass 4,855 Rehabilitation and upgradation of Dindigul-Bangalore 4,149 Road (Pollachi to Coim
Slide 30: Order-book: State-wise
Order-book: State-wise Arunachal Pradesh No of Projects 1 Balance Value Rs. 464 mn Madhya Pradesh No of Projects 3 Balance Value Rs. 2,183 mn Karnataka AP & Telangana No of Projects 9 No of Projects 10 Balance Value Rs. 7,524 mn Balance Value Rs. 7,002 mn Tamil Nadu Kerala No of Projects 9 No of Pro
Slide 31: 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 32: Financial Highlights
Kurc KNR CONSTRUCTIONS LIMITED Financial Highlights 32
Slide 33: Standalone Financial Results
Standalone Financial Results* Rs. Million FY16 FY15 YoY Total Revenue 9,025.5 8,761.3 3% Operating Expenses 6,062.9 5,965.5 Employees Expenses 435.2 380.8 Other Expenditure 973.3 1,153.6 EBITDA 1,554.1 1,261.4 23% EBITDA margin 17.2% 14.4% Other Income 304.9 124.6 Depreciation 431.4 540.6 Interest 1
Slide 34: Standalone Balance Sheet
Standalone Balance sheet* Rs. in Million Mar-16 Mar-15 Rs. in Million Mar-16 Mar-15 Shareholder’s Fund 7,270 5,692 Non-Current Assets 7,689 5,254 Share capital 281 281 Fixed Assets 2,468 2,269 Reserves & Surplus 6,988 5,411 Non-current Investments 355 228 Minority Interest 0 0 Deferred Tax Assets (N
Slide 35: Consolidated Financial Results
Consolidated Financial Results* Rs. Million FY16 FY15 YoY Total Revenue 9,951.2 9,311.9 7% Operating Expenses 6,634.5 6,470.8 Employees Expenses 466.9 382.3 Other Expenditure 1,108.0 1,191.0 EBITDA 1,741.9 1,267.8 37% EBITDA margin 17.5% 13.6% Other Income 424.1 128.9 Depreciation 480.7 551.7 Intere
Slide 36: Consolidated Balance Sheet
Consolidated Balance sheet* Rs. in Million Mar-16 Mar-15 Rs. in Million Mar-16 Mar-15 Shareholder’s Fund 6,970 7,885 Non-Current Assets 14,563 15,165 Share capital 281 281 Fixed Assets 12,631 13,432 Reserves & Surplus 6,688 7,604 Non-current Investments 168 236 Minority Interest 807 906 Deferred Tax
Slide 37: Standalone Financial Highlights
Standalone Financial Highlights* Financial Year 2010 2011 2012 2013 2014 2015 2016 Rs. 7,125 Rs. 7,930 Rs. 7,505 Rs. 6,921 Rs. 8,348 Rs. 8,761 Rs. 9,025 Turnover $118.6 $132.0 $125.0 $115.2 $139.0 $140.0 $136.1 Rs. 1,121 Rs. 1,356 Rs. 1,338 Rs. 1,164 Rs. 1,258 Rs. 1,261 Rs. 1,554 EBITDA $18.7 $22.6
Slide 38: Standalone Financial Highlights
Standalone Financial Highlights Revenue & EBITDA (Margin %) EBITDA 15.7% 17.1% 17.8% 16.8% 15.1% 14.4% 17.2% Margin (%) 8,761 9,026 7,930 8,348 7,125 7,505 6,921 Revenue 1,356 1,338 1,164 1,258 1,261 1,554 1,121 EBITDA 2010 2011 2012 2013 2014 2015 2016 Net Profit & Net Worth (RoE) RoE (%) 16.7% 16.
Slide 39: Standalone Net Working Capital Days
Standalone Net Working Capital Days 79 69 53 52 48 98 43 52 45 74 40 38 66 64 45 51 53 41 34 26 23 28 30 7 10 13 16 16 15 18 15 20 15 17 12 8 12 6 12 4 Mar-10 Mar-11 Mar-12 Mar-13 Mar-14 Mar-15 Mar-16 Jun-16 Sep-16 Dec-16 Inventory Debtors Creditors Net Working Capital 39
Slide 40: Shareholding Pattern as on 31st December 2016
Shareholding Pattern as on 31st December 2016 Shareholders Holding more than 1% of the Equity % to Equity (Other than Promoters) 10.6% HDFC Mutual Fund 8.35% ICICI Mutual Fund 3.21% 26.9% 58.1% Copthall Marutius Investment Limited 2.85% Tata Mutual Fund 2.68% 4.5% Franklin Mutual Fund 1.79% PROMOTER
Slide 41: 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 42: 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 9
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