31 slides from H.g. Infra Engineering's earnings presentation, May 25, 2019
Slide 1: Cover letter to stock exchanges
CIN No.: L45201 PIJ2003PLC018049 HGIELI We Mal{e People move ... I Date-May 25th, 2019 To To BSE Limited National Stock Exchange of India Ltd Phiroze Jeejeebhoy Towers Exchange Plaza, C-I , Block G, Dalal Street Bandra Kurla Complex, Mumbai- 400001 Mumbai-400051 Scrip Code-541019 Scrip Code- HGINFRA
Slide 2: HG Infra Engineering Investor Presentation FY19
HG Infra Engineering Investor Presentation FY19 Uncha Nagla Project
Slide 3: Disclaimer
This presentation and the accompanying slides (the “Presentation”), which have been prepared by HG Infra Engineering Limited (the “Company”), have been prepared solely for information purposes and do Disclaimer not constitute any offer, recommendation or invitation to purchase or subscribe for any s
Slide 4: Contents
Contents Q4 and FY19 Result Highlights Company Overview Key Strengths Growth Strategy Financial Highlights
Slide 5: Q4 & FY19 Highlights
Q4 & FY19 Highlights Kaithal Project
Slide 6: Result highlights Q4FY19
Result highlights Q4FY19 Rs mn Revenue EBITDA and EBITDA Margin 15.6% 16.1% 15% 5,799.7 932.1 5,037.8 787.0 Q4FY18 Q4FY19 Q4FY18 Q4FY19 PBT & PBT Margin PAT and PAT Margin 9.1% 10.1% 7.2% 6.3% 588.4 367.4 360.3 457.0 Q4FY18 Q4FY19 Q4FY18 Q4FY19 Standalone Financials 5
Slide 7: Result highlights FY19
Result highlights FY19 Rs mn Revenue EBITDA and EBITDA Margin 14.9% 15.1% 44% 20,098.3 3,032.1 13,927.3 2,080.7 FY18 FY19 FY18 FY19 PBT & PBT Margin PAT and PAT Margin 8.5% 9.5% 6.1% 6.1% 1,902.5 1,235.7 1,187.6 842.6 FY18 FY19 FY18 FY19 Standalone Financials 6
Slide 8: Standalone Profit and loss statement
Standalone Profit and loss statement (Rs mn) Q4FY19 Q4FY18 YoY FY19 FY18 YoY Revenue from operations 5,800 5,038 15.1% 20,098 13,927 44.3% Cost of material consumed 2,002 1,720 16.4% 8,919 5,462 63.3% Contract and site expenses 2,443 2,246 8.8% 6,665 5,475 21.7% Employee expenses 289 233 24.0% 1,191
Slide 9: Standalone Balance sheet
Standalone Balance sheet Rs mn Mar’19 Mar’18 Rs mn Mar’19 Mar’18 Share Capital 652 652 Fixed Assets incl. CWIP 4,585 4,200 Reserves 5,940 4,757 Other Financial Assets 120 142 Shareholders' Funds 6,592 5,409 Other Non Current Assets 437 316 Secured Loans 593 1,247 Total Non-Current Assets 5,141 4,658
Slide 10: Consolidated Profit and loss statement
Consolidated Profit and loss statement (Rs mn) Q4FY19 Q4FY18 YoY FY19 FY18 YoY Revenue from operations 5,841 5,038 15.9% 20,145 13,927 44.6% Cost of material consumed 2,002 1,720 16.4% 8,919 5,462 63.3% Contract and site expenses 2,443 2,246 8.8% 6,666 5,475 21.8% Employee expenses 289 233 24.1% 1,1
Slide 11: Consolidated Balance sheet
Consolidated Balance sheet Rs mn Mar’19 Mar’18 Rs mn Mar’19 Mar’18 Share Capital 651.7 651.7 Fixed Assets incl. CWIP 4,587.6 4,200.0 Reserves 5,978.1 4,756.9 Other Financial Assets 119.6 142.1 Shareholders' Funds 6,629.8 5,408.6 Other Non Current Assets 265.3 316.3 Secured Loans 593.2 1,247.0 Total
Slide 12: Order Inflow of Rs 38,909 mn in FY19
Order Inflow of Rs 38,909 mn in FY19 Project Awarding Nature of the State Project Value authority project (Rs mn) Six laning of Hapur Bypass to IRB EPC UP 11,722 Moradabad Eight laning of Haryana-Rajasthan NHAI EPC Rajasthan 9,971 Border; part of Delhi-Vadodara greenfield section Six laning of Ateli
Slide 13: Major projects completed in FY19
Major projects completed in FY19 Tonk- Sitarganj Manoharpur Uncha - Nagla Madhopur Kaithal NHAI’s EPC project of NHAI’s EPC project of NHAI’s EPC project of NHAI’s EPC project of IRB’s BOQ project of Widening, Two-laning with paved Two-laning with paved Two-laning with paved Four – laning of Kaithal
Slide 14: Overview
Overview Manoharpur Dausa Project
Slide 15: Company Overview
Company Overview 33 1,800+ 3,500+ PROJECTS UNDER FLEET SIZE MANPOWER EXECUTION Rs 62,200mn+ 39% 52% ORDER BOOK Revenue CAGR Profit After Tax CAGR (31st MARCH 2019) (FY16-FY19) (FY16-FY19) 14
Slide 16: Leadership team
Leadership team Mr. Harendra Singh Chairman and Managing Director • 25+ years of experience in the construction industry • Holds bachelor’s degree in engineering (civil) from Jodhpur University • Awarded twice by the Indian Achievers Forum for his outstanding achievement in business and social servi
Slide 17: Board of directors
Board of directors Mr. Vijendra Singh Whole-time Director • ~25 years of experience in the construction industry • Responsible for the overall functioning of the Company Ms. Dinesh Kumar Goyal Non-Executive Non Independent • Retired IAS, has more than 40 years experience in working at top level posi
Slide 18: Key Strengths
Key Strengths Bhilwara Gulabpura Project
Slide 19: Tangible pool to drive execution and efficiencies: Machine
Tangible pool to drive execution and efficiencies Machine + People + Process Gross Block (Rs mn) Fleet of modern construction equipment totaling 1,802 for large scale execution 6,106 4,897 Invested Rs 4,900+ mn in plant and machinery in last 3 years 2,294 1,160 In-house Better control Eliminate avai
Slide 20: Tangible pool to drive execution and efficiencies: People
Tangible pool to drive execution and efficiencies Machine + People + Process No. of Employees & Expenses Over 80% of employees are skilled and highly skilled workers such as qualified 3,570 engineers, management professionals 2,894 5.9% 5.4% Net addition of 670+ in employees in FY19 1,497 4.0% 3.9%
Slide 21: Tangible pool to drive execution and efficiencies: Process
Tangible pool to drive execution and efficiencies Machine + People + Process Integrated business model with minimal sub- Preliminary project evaluation contracting for for better efficiency and cost optimization In-depth technical studies SAP implemented in FY19 for better inventory, supply chain ma
Slide 22: Leading to successful evolution to prime road contractor
Leading to successful evolution to prime road contractor EPC 2,500 16,000 Rs mn Rs mn pre-qualification March 2019 March 2013 Revenue from 55% 24% Revenue share Revenue share sub-contracting FY14 FY19 Average ticket ~500 ~1,800 Rs mn Rs mn size FY14 FY19 Geographical 2 7 No. of States No. of States
Slide 23: Robust and well diversified order book
Robust and well diversified order book Robust growth in order book (Rs mn) Private Client wise break-up: 29% higher share of prime contracts and focus on Govt. select private projects 4.3x 71% 62,223 Maharashtra, 11.0% Haryana, Geographical break- 30% up: successful Goa, 3% 46,071 diversification be
Slide 24: Robust and well diversified order book: key projects
Robust and well diversified order book Key EPC projects Project Awarding authority State Project Value (Rs mn) Eight laning of Haryana-Rajasthan Border; part of NHAI Rajasthan 9,971 Delhi-Vadodara greenfield section Six laning of Hapur Bypass to Moradabad IRB UP 11,722 Six laning of Gulabpura-Chitto
Slide 25: Lean balance sheet, healthy return ratios
Lean balance sheet, healthy return rations Working capital cycle (Days) Return on Capital Employed 38% FY 17 FY 18 FY 19 32% 29% Debtor Days 36 51 69 Inventory Days 41 52 46 Creditor Days 23 51 69 Net WC Days 54 52 46 FY17 FY18 FY19 ü Debtors Days is calculated as Average Trade Receivables (excl. re
Slide 26: Growth Strategy
Growth Strategy Sitarganj Project
Slide 27: Well placed to tap the huge opportunity in roads & highways
Well placed to tap the huge opportunity in roads & highways… Particular Length Planned outlay (kms) (Rs bn) Phase-I of Bharatmala Government’s highway - Economic Corridor Development 9,000 1,200 development programme - Inter-corridor and Feeder Route 6,000 800 under Bharatmala Phase 1 and other sche
Slide 28: As well as new infrastructure segments
…As well as new infrastructure segments Government is focused on improving Worked on water the water infrastructure in the country - pipeline projects Water Infra nearly 60 crore Indians face high to in the state of extreme water stress Rajasthan India plans to construct 100 new Has bagged a airport
Slide 29: Financial Highlights
Financial Highlights Kaithal Project
Slide 30: Robust growth
Robust growth Financials in Rs mn Revenue EBITDA Profit After Tax (PAT) 3,032 1,236 20,098 13,927 2,081 842 10,560 1,244 534 FY17 FY18 FY19 FY17 FY18 FY19 FY17 FY18 FY19 EBITDA Margin PAT Margin Earning per share (Rs) 18.96 14.9% 15.1% 6.1% 6.1% 6.1% 15.39 11.8% 9.88 FY16 FY17 FY19 FY17 FY18 FY19 FY
Slide 31: Thank You
Thank You HG Infra Engineering Ltd Rajeev Mishra Rajeev.mishra@hginfra.com III Floor, Sheel Mohar Plaza, A-1, Tilak Marg, C-Scheme, Jaipur - 302001 Pareto Capital (Investor Relations) Pooja Dokania/ Nirali Lade pooja.dokania@paretocapital.in/ nirali.lade@paretocapital.in 210, B Wing, Kanakia Wall St