Kec International Ltd. · NSE:KEC
Kec International — Q2 FY22 Earnings Presentation
30 slides from Kec International's earnings presentation, Oct 27, 2021
Slide 1: Exchange cover letter: Press Release and Investor Presentation
KEC INTERNATIONAL LTD. RPG House 463, Dr. Annie Besant Road Worli, Mumbai 400030, India +91 22 66670200 www.kecrpg.com October 27, 2021 National Stock Exchange of India Limited BSE Limited Exchange Plaza Phiroze Jeejeebhoy Towers Bandra Kurla Complex Dalal Street, Fort Bandra (East), Mumbai - 400 05
Slide 2: KEC delivers Strong Revenue growth of 10% in Q2 FY22
KEC INTERNATIONAL LTD. RPG House 463, Dr. Annie Besant Road Worli, Mumbai 400030, India +91 22 66670200 www.kecrpg.com FINANCIAL PERFORMANCE FOR QUARTER & HALF YEAR ENDED 30 SEPTEMBER 2021 KEC delivers Strong Revenue growth of 10% in Q2 FY22 Highest Ever Order Book + L1 of over Rs. 28,500 crore Mumb
Slide 3: CEO comment and About KEC International and RPG Enterprises
Mr. Vimal Kejriwal, MD & CEO, KEC International Ltd. commented, “We are pleased with the strong growth in revenues for the quarter, amidst a challenging environment. The growth has been delivered by good performances across all our businesses such as T&D (excluding SAE), Civil, Railways and Cables.
Slide 4: KEC International Limited – Q2 FY22
KEC International Limited Investor Presentation – Q2 FY22 2 7 O c t o b er 2 0 2 1 Power T & D Railways Civil Cables Solar Smart Infra Oil & Gas Pipelines
Slide 5: Disclaimer
Disclaimer This presentation may include statements which may constitute forward-looking statements. All statements that address expectations or projections about the future, including, but not limited to, statements about the strategy for growth, business development, market position, expenditures,
Slide 6: Contents
Contents Overview – RPG Group and KEC International Key Performance Highlights Q2 & H1 FY22 Financial Performance Q2 & H1 FY22 Acquisition of Spur Infrastructure Private Limited Environmental, Social and Governance (ESG) Power T & D Railways Civil Cables Solar Smart Infra Oil & Gas Pipelines 3
Slide 7: Contents
Contents Overview – RPG Group and KEC International Key Performance Highlights Q2 & H1 FY22 Financial Performance Q2 & H1 FY22 Acquisition of Spur Infrastructure Private Limited Environmental, Social and Governance (ESG) Power T & D Railways Civil Cables Solar Smart Infra Oil & Gas Pipelines 4
Slide 8: RPG Group: Powered by Passion, Driven by Ethics
RPG Group: Powered by Passion, Driven by Ethics RPG Enterprises was founded in 1979. The group currently operates in various UNLEASHTALENT industries - Infrastructure, Technology, Life Sciences, Plantations and Tyre Manufacturing. The group has a history of business dating back to 1820 AD in TOUCHLI
Slide 9: KEC International: Building Infrastructure for the World of Tomorrow
KEC International : Building Infrastructure for the World of Tomorrow 7+ DECADES OF EXPERIENCE & EXPERTISE 9,000+ EMPLOYEES $1.8 FOOTPRINT IN 105+ COUNTRIES BILLION GLOBAL EPC MAJOR ONGOING PROJECTS IN 40%+ 30+ COUNTRIES BUSINESS OVERSEAS 6
Slide 10: Board of Directors
Board of Directors H. V. Goenka Chairman, Non Executive Director Vimal Kejriwal A. T. Vaswani D. G.Piramal G. L. Mirchandani M.S. Unnikrishnan Managing Director Non Executive Non Executive Non Executive Non Executive & CEO Independent Director Independent Director Independent Director Independent Di
Slide 11: Management Team
Management Team Vimal Kejriwal Managing Director & CEO Rajeev Agarwal Neeraj Nanda Anand Kulkarni Kaushal Kodesia Manjit Singh Sethi Chief Financial Officer President – South Executive Director – Executive Director – Executive Director – Asia (T&D, Solar & Business Operations Railways Cables Smart I
Slide 12: Contents
Contents Overview – RPG Group and KEC International Key Performance Highlights Q2 & H1 FY22 Financial Performance Q2 & H1 FY22 Acquisition of Spur Infrastructure Private Limited Environmental, Social and Governance (ESG) Power T & D Railways Civil Cables Solar Smart Infra Oil & Gas Pipelines 9
Slide 13: Key Performance Highlights – Q2 FY22 (1/3)
Key Performance Highlights – Q2 FY22 (1/3) Consolidated Highlights for Q2 FY22 v/s Q2 FY21 Standalone Highlights for Q2 FY22 v/s Q2 FY21 ▪ Revenue of Rs. 3,587 Cr - Growth of 10% ▪ Revenue of Rs. 3,357 Cr - Growth of 18% ▪ EBITDA Margin at 7.1% against 9.0% ▪ EBITDA Margin at 9.4% against 9.7% ▪ Int
Slide 14: Key Performance Highlights – H1 FY22 (2/3)
Key Performance Highlights – H1 FY22 (2/3) Consolidated Highlights for H1 FY22 v/s H1 FY21 Standalone Highlights for H1 FY22 v/s H1 FY21 ▪ Revenue of Rs. 6,127 Cr - Growth of 12% ▪ Revenue of Rs. 5,695 Cr - Growth of 20% ▪ EBITDA Margin at 6.7% against 8.9% ▪ EBITDA Margin at 9.5% against 10.3% ▪ In
Slide 15: Key Performance Highlights – Q2 & H1 FY22 (3/3)
Key Performance Highlights – Q2 & H1 FY22 (3/3) ❑ Achieved YTD Order intake of Rs 7,386 Cr with a robust growth of ~70% over last year ▪ Order Intake momentum continues in International T&D with significant orders in Middle East and Americas ▪ Expanded international footprint with our first T&D EPC
Slide 16: Contents
Contents Overview – RPG Group and KEC International Key Performance Highlights Q2 & H1 FY22 Financial Performance Q2 & H1 FY22 Acquisition of Spur Infrastructure Private Limited Environmental, Social and Governance (ESG) Power T & D Railways Civil Cables Solar Smart Infra Oil & Gas Pipelines 13
Slide 17: Profit & Loss Highlights (Consolidated)
Profit & Loss Highlights (Consolidated) Q2 H1 (₹ crore) Particulars Growth Growth FY22 FY21 FY22 FY21 (Y-o-Y) (Y-o-Y) Revenues 3,587 3,258 10% 6,127 5,464 12% EBITDA 253 293 -14% 413 488 -15% EBITDA Margins 7.1% 9.0% 6.7% 8.9% (+) Other Income 3 7 5 14 (-) Depreciation 39 37 77 76 (-) Interest 73 67
Slide 18: Profit & Loss Highlights (Standalone)
Profit & Loss Highlights (Standalone) Q2 H1 (₹ crore) Particulars Growth Growth FY22 FY21 FY22 FY21 (Y-o-Y) (Y-o-Y) Revenues 3,357 2,844 18% 5,695 4,734 20% EBITDA 315 276 14% 540 485 11% EBITDA Margins 9.4% 9.7% 9.5% 10.3% (+) Other Income 3 7 6 16 (-) Depreciation 30 31 60 62 (-) Interest 64 62 3%
Slide 19: Businesswise Revenue Performance (Consolidated)
Businesswise Revenue Performance (Consolidated) Q2 H1 (₹ crore) Business Verticals Growth Growth FY22 FY21 FY22 FY21 (Y-o-Y) (Y-o-Y) T&D: 1,943 1,977 -2% 3,340 3,431 -3% - T&D (KEC) 1,735 1,621 7% 2,930 2,796 5% - SAE Towers 208 356 -42% 411 635 -35% Non-T&D: 1,811 1,349 34% 3,067 2,152 43% - Railwa
Slide 20: Borrowings & Working Capital (Consolidated)
Borrowings & Working Capital (Consolidated) (₹ crore) Increase/ Increase/ Particulars 30-Sep-21 30-Sep-20 30-Jun-21 (Decrease) (Decrease) I) Net Debt 2,801 2,425 377 2,533 269 II) Interest Bearing Acceptances 1,549 1,059 491 1,405 145 Total (I + II) 4,351 3,484 867 3,938 413 ❑ Closing borrowing is s
Slide 21: Order Intake & Order Book (Consolidated)
Order Intake & Order Book (Consolidated) Order Intake - YTD FY22 Order Book – YTD FY22 T&D : 28% SAE : 14% T&D: 46% SAE : 6% 17% 3%1% 21% 8% YTD Order Intake Order Book 42% Rs 7,386 Crs 2% Rs 21,167 Crs 52% 21% 33% T&D Civil Cables Railways T&D Civil Cables Railways Oil & Gas Others Domestic : 64% I
Slide 22: Contents
Contents Overview – RPG Group and KEC International Key Performance Highlights Q2 & H1 FY22 Financial Performance Q2 & H1 FY22 Acquisition of Spur Infrastructure Private Limited Environmental, Social and Governance (ESG) Power T & D Railways Civil Cables Solar Smart Infra Oil & Gas Pipelines 19
Slide 23: Acquisition of Spur Infrastructure Private Limited
Acquisition of Spur Infrastructure Private Limited ❑ Completed acquisition of 100% equity in Spur Infrastructure Private Limited, an EPC company specialising in cross country oil & gas pipelines and city gas distribution networks ▪ Annual Revenue in excess of Rs. 100 crores in last three years (FY21
Slide 24: Contents
Contents Overview – RPG Group and KEC International Key Performance Highlights Q2 & H1 FY22 Financial Performance Q2 & H1 FY22 Acquisition of Spur Infrastructure Private Limited Environmental, Social and Governance (ESG) Power T & D Railways Civil Cables Solar Smart Infra Oil & Gas Pipelines 21
Slide 25: Green Portfolio (1/2)
Green Portfolio (1/2) Our portfolio of businesses promote environment sustainability by efficient usage of natural resources TRANSMISSION & DISTRIBUTION RAILWAYS • Effective way of transporting energy • More efficient than road in terms of with maximum efficiency and energy efficiency and land utili
Slide 26: Green Portfolio (2/2)
Green Portfolio (2/2) SOLAR SMART INFRA • Construction of large solar-based • Developing Smart Cities to encourage power generation plants, which efficient use of resources have one of the lowest lifecycle • Solid waste management solutions for a emissions Swachh Bharat mission • Innovative industri
Slide 27: Commitment to ESG
Commitment to ESG KEC is committed to delivering excellence and outperformance with unwavering focus on embedding sustainable practices towards improving Environment, Society, Safety and Governance Strategic ESG Pillars ESG Focus Areas Unleash Enabling environment for people to unleash Human Capital
Slide 28: Sustainability Roadmap
Sustainability Roadmap Happiness Occupational Corporate Diversity & Quotient Heath & Social Inclusion Safety Responsibility Increase Happiness Increase in Work towards the Reach 2 lac CSR Quotient to 85% diversity by 25% goal of achieving beneficiaries by by FY26 by FY26 zero accidents FY 26 Water P
Slide 29: Sustainability Roadmap – Key Initiatives and Approach
Sustainability Roadmap – Key Initiatives and Approach • Steel waste generated is sold to nearby • Action planning workshops across the foundries where 100% of the waste is utilised in Happiness Circularity organisation to increase Happiness making billets and castings Quotient • Installation of acid
Slide 30: Thank You
THANK YOU Global Footprint in 100 countries* *Includes EPC and Supply Follow us on: Registered Office RPG House, 463, Dr. Annie Besant Road, Worli, Mumbai - 400 030. Phone: +91-22-6667 0200 Email: kecindia@kecrpg.com www.kecrpg.com