Gayatri Projects Limited · NSE:GAYAPROJ
Gayatri Projects — Q3 FY19 Earnings Presentation
37 slides from Gayatri Projects's earnings presentation, Feb 19, 2019
Slide 1: Covering letter to stock exchanges
@r G^yATRr Date: 19th February, 2019 To, To, The General Manager, The Secretary, The Department of Corporate Relations' National Stock Exchange of India Ltd, The Bombay Stock Exchange Limited, sth Ffoor, Exchange Plaza, 25th Floor, Phiroz Jeejeebhoy Towers, Plot No.C/1, G Block, Dalal Street, Mumbai
Slide 2: Gayatri Projects Limited Earnings Presentation Q3 FY19
Gayatri Projects Limited Earnings Presentation Q3 FY19
Slide 3: Disclaimer
Disclaimer The material that follows is a Presentation of general background information about the Company’s activities as at the date of the Presentation. It is information given in summary form and does not purport to be complete and it cannot be guaranteed that such information is true and accura
Slide 4: Agenda
Agenda 1. Gayatri Projects – An Introduction Slide No. 4 2. Q3FY19 Highlights Slide No. 5 - 9 3. Order Book Diversification Slide No. 10 4. Top Work Orders – Status update Slide No. 11 - 12 5. Medium Term Strategic Priorities and Guidance Slide No. 13 6. Key Investment Highlights Slide No. 14 7. Dig
Slide 5: GPL: Among India's Leading EPC Companies
GPL: Among India’s Leading EPC Companies One of India’s leading construction and infrastructure companies with dedicated focus on asset-light EPC work Business Segments 5 decades of experience in execution of major civil works, diversified across geographies & infrastructure segments o Pan India
Slide 6: Stable Performance With Strong Order Inflows
Stable Performance With Strong Order Inflows GPL’s 9M FY19 Highlights Growing and De-Risked Order Book (INR Bn) GPL’s Growth in EPC order book over the last 5 years New Order Wins 170 173 Surpassed full year guidance Year to Date : INR 78 bn 129 132 9M FY19 Revenue: 92 16.8% Y-o-Y Growth INR 23.1 bn
Slide 7: Q3FY19 – Stable Operating Performance
Q3FY19 – Stable Operating Performance Revenue (INR Mn) EBITDA (INR Mn) & EBITDA Margin Q3FY19 Highlights 15.7% 16.0% 9,039 1,416 1,404 Revenues remained flat due to delays 8,779 in irrigation order commencement in Telangana & Andhra Pradesh, resulting in reduction of short-term guidance, specifica
Slide 8: Significant Reduction In Net Debt Despite Strong Revenue Growth – H1FY19
Significant Reduction In Net Debt Despite Strong Revenue Growth – H1FY19 Net Debt/Equity (x) Net Debt 18,612 2.51 2.38 2.06 17,399 17,016 1.52 1.35 16,337 16,124 FY15 FY16 FY17 FY18 H1FY19 FY15 FY16 FY17 FY18 H1FY19 Debt Maturity Profile (INR MN) Working Capital Days* 2,772 129 114 1,820 1,715 1,723
Slide 9: Q3FY19 Snapshot
Q3FY19 Snapshot INR Mn Q3FY19 Q2FY19 Q3FY18 Revenue 8,779 6,113 9,039 Expenses 7,375 5,132 7,623 EBITDA 1,404 981 1,416 EBITDA Margin 16.0% 16.0% 15.7% Depreciation 166 164 129 Finance Cost 690 670 691 Other Income 48 12 45 PBT 608 158 629 PBT Margin 6.9% 2.6% 7.0% Tax Expense 129 -45 164 PAT 479 20
Slide 10: 9MFY19 – Strong Financial Performance
9MFY19 – Strong Financial Performance INR Mn 9MFY19 9MFY18 % Change (YoY) Revenue 23,120 19,791 17% Expenses 19,305 16,669 16% EBITDA 3,815 3,122 22% EBITDA Margin 16.5% 15.8% Depreciation 491 391 26% Finance Cost 1,986 1,756 13% Other Income 63 132 -52% PBT 1,400 1,107 26% PBT Margin 6.1% 5.6% Tax
Slide 11: Order Book: Segment wise and Geographic wise
Order Book : Segment wise and Geographic wise RAILWAY, 2% Andhra Pradesh WATER GRID, 12% MINING, 3% West Bengal 1% Bihar LAND 1% 4% DEVELOPMENT,… Gujarat Uttar Pradesh 3% 26% Jammu & Kashmir 8% Jharkhand 2% Karnataka 4% Madhya Pradesh 0% IRRIGATION, ROAD, 69% Telangana 22% 10% Maharashtra 11% Odisha
Slide 12: Top Work Orders – Status Update
Top Work Orders – Status Update All amounts in INR Cr GPL GPL Balance Package Location Contract work as on Mobilised on Site Revenue Booking Start Completion Date Value 01.01.2019 Purvanchal Expressway Package 1 Eastern UP 1,483 1,480 Yes Q3 19, Marginal booking Q3 22 Purvanchal Expressway Package 2
Slide 13: Top Work Orders – Status Update
Top Work Orders – Status Update All amounts in INR Cr GPL GPL Balance Package Location Contract work as on Mobilised on Site Revenue Booking Start Completion Date Value 01.01.2019 Hyderabad Elevated Corridor Hyderabad 425 425 Yes 1Q 20, Slight Delay Q2 21 Rajamunda - Barkote Barkote, Orissa 394 394
Slide 14: Strategic Priorities and Guidance: FY19
Strategic Priorities and Guidance: FY19 Strategic Priorities Strong Order Inflows… o Avg. Annual New Order Intake of INR 60 bn+ o Book to Bill to be maintained in excess of 3.5x Strengthen …Translating into Stable Growth.. Maximise Asset Light Free Cash FY19 Guidance (INR Mn) Business Flows Model Re
Slide 15: Key Investment Highlights
Key Investment Highlights Strong presence in high growth construction sector Healthy and diversified pure EPC un-executed order book with good revenue growth visibility Highly efficient operations with strong execution capabilities Balance-sheet improvement on track for industry leading metrics in n
Slide 16: Digital Project Management Roll-out at GPL
Digital Project Management Roll-out at GPL
Slide 17: End-to-end Digital Project Management
End-to-end Digital Project Management • Reconciliation of Work Done vs. Costs (Material and Machinery usage) Weigh-bridges Crushers Plants Dump Trucks Heavy Machinery • Automated reports for easy monitoring Material Tracking Machinery Tracking and management • Custom notifications for smooth IoT Pla
Slide 18: Angul Project – Case Study
Angul Project – Case Study 167 6 5 162 Vehicles & Weigh bridges Concrete Daily Project Machines Plants users 115 1,405 6,263 18,456 Work reports Downtime Equipment Concrete submitted Logs Requests Requests 58,751 74,713 1,70,983 Material transactions Machine hours Cubic meters of concrete tracked pr
Slide 19: Insights, Reports & Notifications
Insights, Reports & Notifications
Slide 20: Benefits of Digital Project Mgmt
Benefits of Digital Project Mgmt Accounts P&M Purchase PMC Legal Tender • Validate Hired Equipment Bills • Debit Notes on diesel in real time • Track Variation from Tender BOQ Qtys vs. • Tentative expenses Progress for repairs • Validate Invoice vs. RFI Qtys • Validate Vendor payments • Actual Work
Slide 21: Benefits of Digital Project Mgmt
Benefits of Digital Project Mgmt Accounts P&M Purchase PMC Legal Tender • Improves Equipment Utilization& • Monitor Fuel filling rate to maintain Availability % working capital • Equipment Productivity • Resource allocation between Projects • Tentative spare requirement & cost • Asset Turnover Ratio
Slide 22: Benefits of Digital Project Mgmt
Benefits of Digital Project Mgmt Accounts P&M Purchase PMC Legal Tender • Compare Equipment performance of different manufacturers • Real time stock details • Monitor Fuel filling rate • Monitor Realtime receipt of material at site • Schedule procurement of long • Material allocation across projects
Slide 23: Benefits of Digital Project Mgmt
Benefits of Digital Project Mgmt Accounts P&M Purchase PMC Legal Tender • Monitor progress vs. Schedule • Instant MIS reports • Track Variation from Tender BOQ • Asking rate for work execution • Reconciliation of Concrete, Bitumen, • Electronic documentation of RFI • Equipment Utilization GSB,WMM w.
Slide 24: Benefits of Digital Project Mgmt
Benefits of Digital Project Mgmt Accounts P&M Purchase PMC Legal Tender • Backup for periodical material receipts to claim Price Escalation • Digital Backup for Claiming Idle charges • Maintain Evidence of RoW issues of equipment • Track delays due to unforeseen conditions • Claim new Items not incl
Slide 25: Benefits of Digital Project Mgmt
Benefits of Digital Project Mgmt Accounts P&M Purchase PMC Legal Tender • Compare Equipment productivities in different geographical and climatic • Deriving average Fuel norms of conditions equipment’s based on type of work • Compare actual costs and • Fuel Mileage can be considered inputs Tender vs
Slide 26: PMC @ HQ
PMC @ HQ PMC Project Project Project Coordinator-1 Coordinator-2 Coordinator-3 PMC Site Project-1 Representative Project-2 Project-3 Equipment Material Operation Progress Management Management Management Monitoring Attaching & Detaching Asset Material Progress DPR Fuel logger Request Own-P&M H.O Hir
Slide 27: Angul Project: Milestones
Angul Project: Milestones Based on Tare Weight Anomalies found, Calibration at 2 Weighbridges is corrected Equipment Odometer which are not working highlighted and were repaired Qtys used in Diversion work and Indirect works are recorded Realtime concrete production information reduced commu
Slide 28: Appendix
Noy) Gayatri Projects Limited GAYATRI Appendix Efficiency. Execution. Excellence.
Slide 29: Robust NHAI Bid Pipeline with Majority EPC Orders
Robust NHAI Bid Pipeline with Majority EPC Orders Significant Traction in NHAI Ordering Awards Coming in GPL’s Sectoral and Geographical Strongholds Significant NHAI Bid Pipeline of INR 380 Bn INR 864 Bn Recent Project Awards Highway Projects HAM, 344 Awarded in H1FY19 Real Thermal Others Mahara Pow
Slide 30: Strategy – Focusing on 'Asset Light' EPC segment
Strategy – Focusing on ‘Asset Light’ EPC segment Asset light EPC model Grow presence in core EPC segments o Pure EPC company with no asset-heavy o Actively bid for quality projects in core BOT or HAM project work. areas of expertise- roads, irrigation, o Diversified across geographies and industrial
Slide 31: Spotlight on Asset-Light Model
Spotlight on Asset-Light Model 2012-2015 : GPL numbers depressed due to asset Core Construction Services business is a high ROCE business; investments At the bottom of cycle generated 18.2% 2016 onwards: Business restructuring and Shift towards In line with the Industry practice, Free cash f
Slide 32: Strong Execution Capabilities & a Diverse Range of Projects
Strong Execution Capabilities & a Diverse Range of Projects Projects executed in last 5 years Strong BG limits key competitive advantage Company’s existing BG limit provides additional No. of projects Value of contract o Company has existing BG limit of INR 37 bn Segment advantage to expand order bo
Slide 33: Balance Sheet
Balance Sheet All figures in INR Million ASSETS (INR Mn) H1 FY19 March FY18 March FY17 EQUITY AND LIABILITIES (INR Mn) H1 FY19 March FY18 March FY17 EQUITY NON-CURRENT ASSETS (a) Equity Share capital 374 374 355 (a) Property Plant & Equipment 3,260 3,350 3,093 (b) Other Equity 11,565 10,856 7,056 (b
Slide 34: Board of Directors
Board of Directors Promoter and Non-Executive Chairperson, over 25 years of experience in the T. Indira Subbarami Reddy construction industry T. V. Sandeep Kumar Reddy Promoter and Managing Director, 20+ years of construction experience J Brij Mohan Reddy Executive Vice Chairman, Over 49 years of ex
Slide 35: Management Team - HQ
Management Team - HQ T Sandeep Reddy D Sitaram Managing Director President, Business Development Masters in Construction Engineering & Management In-charge of evaluating new business units, from University of Michigan, USA identifying suitable Joint-Venture partners, and 20+ years of const
Slide 36: Management Team - Projects
Management Team - Projects K Sesha Reddy CH Ramakrishna Rao Senior Vice President, Transportation Senior Vice President, Roads In-charge of project monitoring and controls Oversees road construction projects Previously a Project Head at L&T Masters in Construction management from Birla
Slide 37: Contact Details
Contact Details V V Chandra Sekhar Gayatri Projects Limited Tel: +91 40 23310330/23314284/4296 Email: vvcs@gayatri.co.in Sheetal Khanduja Go India Advisors +91 9769364166 sheetal@goindiaadvisors.com 36