Rpp Infra Projects Ltd. · NSE:RPPINFRA
Rpp Infra Projects — Q1 FY17 Earnings Presentation
30 slides from Rpp Infra Projects's earnings presentation, August 2016
Slide 1: One of India's most profitable rural infrastructure players
RPP Infra Projects One of India’s most profitable rural infrastructure players Investor Presentation August 2016 Construction + Infrastructure building
Slide 2: There is just one big idea behind what RPP Infra intends to communicate
There is just one big idea behind what RPP Infra intends to communicate Fastest growing spaces + Fastest growing states + Safest customer = Most profitable 2
Slide 3: RPP Infra's Space
RPP Infra’s Space Fastest growing spaces: Irrigation and water supply, Civil construction works, National Highways, Rural roads and other Infrastructure works Fastest growing states: Telangana, Andhra Pradesh, Karnataka and Madhya Pradesh Safest customer: The Government Most profitable: 16%
Slide 4: Catering to some of the largest states in India
C AT E R IN G TO S O M E O F T H E L A R G E S T S TAT E S IN IN D IA Telangana Twelfth largest state of India GSDP grew average 9.2% in 2015-2016 Andhra Eight largest state of India Pradesh GSDP grew average 10.5% in 2015-16 Karnataka Ninth largest state of India GSDP grew average 15.2% in 2015-16
Slide 5: This strategic focus has worked in the past
T H IS S T R AT E G IC F O C U S H AS WORKED IN THE PAST Resulting in Resulting in Resulting in a safe sectoral attractive growth Balance Sheet even outperformance in the most challenging times 5
Slide 6: New plan for emerging India
NEW PLAN FOR EMERGING INDIA Atal mission for rejuvenation and urban transformation(AMRUT) Madhya Pradesh Local Area Development Scheme Integrated Rural Development Program Jawaharlal Nehru National Urban Renewal Mission (JnNURM) Indira Awaas Yojana NTR Special Housing for HudHud Cyclone
Slide 7: Our financial growth over the years
OUR FINANCIAL GROWTH OVER THE YEARS From a turnover of Rs. 144.55 crore in 2009-10 to Rs. 314.69 crore in 2015-16 From an operating profit of Rs. 14.74 crore in 2009-10 to Rs. 45.45 crore in 2015-16 From a cash profit of Rs. 10.72 crore in 2009-10 to Rs. 31.32 crore in 2015-16 From a net profit of R
Slide 8: Our financial journey contd
8 2011-12 265.50 2012-13 259.97 2013-14 240.28 2014-15 265.94 Turnover (Rs. crore) 2015-16 314.69 2011-12 46.00 2012-13 43.12 2013-14 42.62 EBIDTA (Rs. crore) 2014-15 45.92 2015-16 50.00 2011-12 17.33 2012-13 16.59 2013-14 17.74 EBIDTA margin (%) 2014-15 17.27 2015-16 16.02 2011-12 22.59 2012-13 11.
Slide 9: Our financial journey contd
9 2011-12 46.86 2012-13 52.07 2013-14 68.66 share (Rs.) 2014-15 75.52 Book value per 2015-16 82.77 c o n t d … 2011-12 23.99 2012-13 10.16 2013-14 10.30 RoNW (%) 2014-15 10.24 2015-16 10.27 2011-12 10.00 2012-13 5.03 2013-14 6.19 share (Rs.) Earnings per 2014-15 7.34 2015-16 8.49 Our financial journ
Slide 10: RPP Infra has been one of India's most profitable rural infrastructure companies
RPP Infra has been one of India ’s most profitable rural infrastructure companies EBIDTA EBIDTA margin Order margin never below book 16.02% 15% 33% in 2015-16 in the last of order book focused on (industry average Five years generating EBIDTA in 15%) excess of 14 per cent 10
Slide 11: Q1FY17 Performance
11 Q1 FY16 84.88 Q1 FY17 84.76 Turnover (Rs. crore) Q1 FY16 13.01 EBIDTA 13.27 (Rs. crore) Q1 FY17 Q1 FY16 15.33 EBIDTA 15.66 margin (%) Q1 FY17 Q1 FY16 4.57 Net profit Q1 FY17 5.85 (Rs. crore) Q1FY17 PERFORMANCE
Slide 12: Our growing order book
OUR GROWING ORDER BOOK Sector / Vertical Order Book % (in Rs. crore) Buildings 289.59 34.83% Water Management 264.46 31.81% 24% Infra Structure 277.36 33.36% TOTAL 831.41 100.00% Works in Pipeline 50.28 Cr. TN Civil Supplies Corp Construction of scientific godown of 40,000 MT capacity at Nagapatinam
Slide 13: Q1FY17 Financial Highlights
Q1FY17- Financial Highlights Rs. Crore Q1 FY17 Q1 FY16 YoY Revenue from Operations 84.76 84.88 (0.14%) Raw Material & Fuel Costs 67.88 67.80 Employee Cost 1.25 1.39 Other Cost 2.36 2.68 EBITDA 13.27 13.01 2.00% EBIDTA margin (%) 15.66% 15.33% Other Income 0.42 0.36 Depreciation 1.33 1.34 Interest 4.
Slide 14: Sustainable growth the result of a robust business model
RPP Infra’s sustainable growth in the most challenging times is the result of a robust business model 14
Slide 15: RPP Infra's margin outperformance the result of a distinctive business model
RPP Infra’s margin outperformance the result of a distinctive business model Spaces Regional Solutions Engaged in verticals that represent South India focus; deep terrain Design to implementation in civil national priorities; verticals are proxies competence; zone outperforming construction segment;
Slide 16: 4 principal elements of RPP Infra's business model
4 principal elements of RPP Infra’s business model A robust Balance Sheet 1 Prudent selection of verticals 2 Focus on government contracts 3 Rich knowledge capital 4 16 Result: Rs 831.41 crore order book as on 30th June 2016
Slide 17: Focus on specific verticals
Analysis FOCUS ON SPECIFIC VERTICALS 1 Civil construction (Building projects): 23.88% of revenues, 2015-16 2 Irrigation and water supply projects: 32.62% of revenues, 2015-16 3 Infrastructure and road projects: 43.49% of revenues, 2015-16 17
Slide 18: Government contracts
Analysis GOVERNMENT CONTRACTS Government largest infrastructure spender in India Growing delegation of spending from centre to States States spending larger amounts in most areas of the company’s presence Government contracts accounted for 100% of order book (30th June 2016) Bad debts (0.8% of turno
Slide 19: Knowledge capital
Analysis K N O W L E D G E C A P ITA L 19
Slide 20: Projects experience
PROJECTS EXPERIENCE Power Projects Infrastructure Industries Water & Irrigation Building Civil work Sub Station at KPTCL, Atomic Energy- BHEL- Tirchy , TN Construction of Civil Supply Godown at Karnataka Kalpakkam ( Phase I & Contour Canal for Various Places 45000 MRPL, Mangalore, KA II)
Slide 21: Projects completion capability
PROJECTS COMPLETION CAPABILITY Captive equipment Completed most projects on (Rs./crore) availability SBU-based business, schedule with no delay at the resulting in project company’s end 30 control 90 engineers and Aggregate experience of 1500 150employees person-years 21
Slide 22: Credible client record
CREDIBLE CLIENT RECORD (WHO WORK ON GOVERNMENT CONTRACTS) 22
Slide 23: Bidding competence and alliances
Bidding competence Alliances Focus on projects that represent Entered into alliances with two challenges, nichenessand global companiesto strengthen attractivemargins pre-qualification capability Bidding competence Will enable thecompanyto bid (25% strike ratein Southem for larger projects states &1
Slide 24: Awards and recognition
AWARDS AND RECOGNITION Excellence of Construction award from 'Kongu Polytechnic College, Perundurai, in the year 2004 Award for Construction of Anna University, Chennai in the year 2005 Excellence of construction award from 'Neyveli Lignite Corporation, Neyveli (NLC) in the year 2007 Excelle
Slide 25: Case for national optimism
C AS E F O R N AT IO N A L O P T IM IS M Government focus Prominent nation- Impending on growing the driving schemes elections in Tamil country’s comprising ‘Power Nadu to drive construction, for All by 2022’, capital power, railways, Pradhan Mantri expenditure; roads, highways, Gram Sadak Focus on
Slide 26: Some macro infrastructure numbers
SOME MACRO INFRASTRUCTURE NUMBERS Andhra Government planned Rs.73,000 cr for setting up smart industrial township in 10,000 hectares involving at least 200 industries Indian government pushing for reforms leading to more infrastructure projects The government created a Rs 15,000 crore infrastructure
Slide 27: A quick recap
A QUICK RECAP 6 POINTS THAT ARE FAST-TRACKING RPP INFRA’S GROWTH 27
Slide 28: Board of Directors
BOARD OF DIRECTORS Mr. R.P. A Civil Engineer by qualification Arulsundaram Started RPP in 1988 as a partnership firm Chairman and Practical Experience of more than 23 years in construction industry Managing Director Trustee in the Erode District Builder’s Association Engineering Collage Ma
Slide 29: Independent Directors
INDEPENDENT DIRECTORS Mr. A. P. C. An advocate by profession with a B.Com degree Krisshnamoorthy Over 35 years of experience as a practicing council in the Bar Independent Director Practicing advocate in both Civil and Criminal cases Bachelor Degree in Commerce. Mr. K.Natarajan Over 23 yea
Slide 30: Safe Harbor Statement
SAFE HARBOR STATEMENT THIS PRESENTATION HAS BEEN PREPARED BY THE COMPANY BASED ON INFORMATION AND DATA WHICH THE COMPANY CONSIDERS RELIABLE, BUT THE COMPANY MAKES NO REPRESENTATION OR WARRANTY, EXPRESS OR IMPLIED, WHATSOEVER, AND NO RELIANCE SHALL BE PLACED ON, THE TRUTH, ACCURACY, COMPLETENESS, FAI