Gayatri Projects Limited · NSE:GAYAPROJ
Gayatri Projects — Q2 FY2018 Earnings Presentation
28 slides from Gayatri Projects's earnings presentation, Nov 16, 2017
Slide 1: Cover letter to stock exchanges on Q2 FY18 results presentation
16'" November, 2017 Oy GAYATRI To, The General Manager, The Department of Corporate Relations, The Bombay Stock Exchange Limited, 25" Floor, Phiroz Jeejeebhoy Towers, Dalal Street, Mumbai — 400 001. To, The Secretary, National Stock Exchange of India Ltd, 5" Floor, Exchange Plaza, Plot No.C/1, G Blo
Slide 2: Earnings Presentation Q2 FY18
Earnings Presentation Q2 FY18
Slide 3: Disclaimer
Disclaimer Some of the statements in this presentation that are not historical facts are forward looking statements. These forward-looking statements include our financial and growth projections as well as statements concerning our plans, strategies, intentions and beliefs concerning our business an
Slide 4: Q2FY18 Highlights
Q2FY18 Highlights o NCLT has approved the restructuring and de-merger of the Road BOT assets. GPL shareholders will directly own 74% in De-merger of Road BOT business approved by the de-merged BOT entity. NCLT o GPL’s balance sheet, as on 31 March 2017, would be recast to exclude the assets and liab
Slide 5: Significant Uptick from BharatMala Priyojana
Significant Uptick from BharatMala Priyojana INR 4 Trillion of new Road Projects Annual Opportunity of 3x of NHAI FY17 run rate Gayatri – A Key Beneficiary Bharat Mala Project Highlights GPL – A leading Pure Road EPC Significant uptick in Road EPC projects company Corridor-based approach Rs3.8 tn of
Slide 6: Key Financial Highlights
Key Financial Highlights Revenue (INR Mn) EBITDA (INR Mn) and Margins (%) PAT INR Mn 4,232 18% 238 747 3,471 16% 546 100 Q2FY17 Q2FY18 Q2FY17 Q2FY18 Q2FY17 Q2FY18 21% 37% 138% Q2 performance impacted due to EBITDA margin higher due to PBT impacted due to heavy monsoon in key states of GST accounting
Slide 7: Results Update – Q2FY18
Results Update – Q2FY18 (INR Mn) Q-o-Q Consolidated Financial Performance Q2FY18 Q2FY17 Y-o-Y Change Q1FY18 Change 4,232 3,500 21% Revenue -35% 6,520 4,161 3,510 19% Expense -33% 6,201 747 546 37% EBITDA -23% 971 EBITDA Margin 18% 16% - 15% - 541 446 21% Interest 3% 524 135 110 22% Depreciation 6% 1
Slide 8: Results Update – H1FY18
Results Update – H1FY18 (INR Mn) Y-o-Y Consolidated Financial Performance H1FY18 H1FY17 FY17 Change Revenue 10,752 7,824 37% 21,154 Expense 10,362 7,739 34% 20,148 EBITDA 1,717 1,154 49% 3,246 EBITDA Margin 16% 15% - 15% Interest 1,065 863 23% 1,810 Depreciation 262 206 28% 432 Other Income 87 85 2%
Slide 9: Well Diversified and Growing Order Book
Well Diversified and Growing Order Book Order Book* and Book to Bill Ratio Order Book Break-up 129,320 6.1 Mining 119,330 4% Land 5.4 Development 5.0 6% 4.5 91,724 80,468 3.8 3.4 68,154 3.0 Irrigation 54,789 3.0 32% 54,116 48,385 Road EPC 52% Railways Road BOT 4% 2% FY11 FY12 FY13 FY14 FY15 FY16 FY1
Slide 10: Robust Road EPC Order Book
Robust Road EPC Order Book Client Wise Order Book State Wise Order Book PWD Mizoram Maharashtra 4% BSRDC 4% NHIDCL 14% 5% Odisha 21% CCDMC / AP UP 4% 44% Andhra Pradesh 5% Nagaland 5% UP&Haryana Mizoram 2% Chattisgarh NHAI 4% 1% Bihar 73% 14% 9 Copyright 2016 Gayatri Project Ltd
Slide 11: Working Capital Cycle (TTM)
Working Capital Cycle (TTM) Net Sales (TTM) 24,067 Debtors (Trade Rcvb) 8,795 Annualised Receivable Days (A) 133 Inventory 4,173 Inventory Days (B) 63 Trade Payables 6,113 Annualised Payable Days (C) 93 WC Cycle (A+B-C) Days 104 WC Cycle Months 3.4 10 Copyright 2016 Gayatri Project Ltd
Slide 12: Projects Won in Q2
Projects Won in Q2 Project Name Kaleshwaram Lift Irrigation Project Type Irrigation Contract Value INR 14,830 million Gayatri Share INR 6,000 million Other Partners NCC and HES 11 Copyright 2016 Gayatri Project Ltd
Slide 13: Corporate Overview
Corporate Overview
Slide 14: Company Overview
Company Overview A Pedigreed construction company; strong play on India’s Infra Story o Focus on asset-light pure EPC work - Key player in roads and irrigation EPC o Strong Track Record with more than 50 years of operation o Well diversified Business Portfolio One of the fastest growing core constru
Slide 15: Business Model
Business Model Focussed on asset light model across businesses Pure EPC company (No exposure to HAM/BOT) Asset Light Option to monetise legacy BOT assets Exposure to power business through option structure Well diversified portfolio in EPC space – Road EPC (50%+); Irrigation (20%+) De-Risked Portfol
Slide 16: De-Merger of BOT Assets Creates a Superior EPC Company
De-Merger of BOT Assets Creates a Superior EPC Company Strong Technical Skill Set 50+ years old Construction company Pan India Operations UP, Andhra Pradesh, Odisha, North East, K’ka, Mumbai, Bihar Well Diversified Order Book 50%+ Road EPC; 26%+ Irrigation Industry Leading Margin`s 15% EBITDA Margin
Slide 17: Strong Revenue Growth in Near Term
Strong Revenue Growth in Near Term Significant Revenue Growth in the next 2-3 years High Revenue Visibility o Healthy book to bill ratio maintained Strong Project Execution Skills o Have maintained a strong execution rate of over 19% historically Cluster Bidding Approach Lower Incremental Capex Need
Slide 18: Other EPC Businesses
Other EPC Businesses Irrigation Underground Mining Transmission & Power Strong history of project Entered into a partnership Design, Manufacture, Pre- execution in the irrigation with China Coal Overseas disptach Inspection, segment, completing Development Company, a Testing and Supply of marquee pr
Slide 19: PAN India Presence
PAN India Presence Key EPC Projects State Project Type Order Book (INR Mn) Karnataka Irrigation (K’Ka Neeravari Nigam) 13,530 Odisha Road (Angul Sambalpur) 12,550 UP Road (Sultanpur - Varanasi Pkg 1&2) 15,920 UP Road (Ghaghara Bridge to Varanasi Pkg 2&3) 13,290 Bihar Road (Patna – Gaya) 8,810 Telang
Slide 20: Outlook
Outlook Government’s efforts towards reviving investment climate by stepping up infrastructure spend is likely to ensure continued addition to our already strong order book. We CONSTRUCTION expect to maintain the new order accretion pace achieved during last financial year. Growth in construction or
Slide 21: Key Investment Highlights
Key Investment Highlights Healthy and diversified order inflows with good revenue growth visibility Asset Light Business Model – Pure Play EPC Company Strong Presence in High Growth Core Construction Sector Highly Efficient Operations with Strong Operating Performance Significant Value Unlocking thr
Slide 22: Balance Sheet
Balance Sheet INR Mn H1FY18 31.03.2017 INR Mn H1FY18 31.03.2017 Share Capital 355 355 Non Current Assets 20,768 20,617 Reserves and Surplus 9,455 8,766 Fixed Assets 3,127 3,093 Non Current Liabilities 20,305 19,247 Non Current Investments 12,270 12,181 Long Term Borrowings 8,716 9,678 Long Term Loan
Slide 23: Appendix
Appendix 22 Copyright 2016 Gayatri Project Ltd
Slide 24: Business Segment: Power Assets
Business Segment: Power Assets TPCIL & SGPL "(Formerly NCCPPL)" (13% Portfolio Summary GEVPL, 87% Sembcorp Utilities) Sembcorp Gayatri Power Option agreement signed with JV partner TPCIL Project "(Formerly Sembcorp Utilities, would allow Gayatri to NCCPPL)" increase stake to 30% over the next 5 year
Slide 25: Business Segment: BOT - Roads
Business Segment: BOT - ROADS GIVL Concession Length Annuity Based Projects Status COD Stake Period (Years) (kms) PCC Gayatri Jhansi Roadways Limited (GJRL) 51% Jun 2010 20 50.0 Obtained PCC Gayatri Lalitpur Roadways Limited (GLRL) 51% Jul 2010 20 50.0 Obtained PCC Hyderabad Expressways Limited (HEL
Slide 26: Board of Directors
Board of Directors Promoter and Non-Executive Chairperson, over 25 years of experience T. Indira Subbarami Reddy in the construction industry T. V. Sandeep Kumar Reddy Promoter and Managing Director, 20+ years of construction experience Executive Vice Chairman, Over 49 years of experience in Heavy E
Slide 27: Key Management Personnel
Key Management Personnel Mr. T. V. Sandeep Kumar Reddy, Mr. J. Brij Mohan Reddy, Vice Chairman Managing Director Has been with the Group since1989. He is an Engineering Graduate from Berkley Presently leads the Gayatri Group. He University, USA. He was responsible for has done his Masters in Constru
Slide 28: Contact Details
Contact Details K.G. Naidu (Vice President- Finance) Gayatri Projects Limited Tel: +91 40 23310330/23314284/4296 Email: kgnaidu@gayatri.co.in Sheetal Khanduja Go India Advisors +91 9769364166 sheetal@goindiaadvisors.com 27 Copyright 2016 Gayatri Project Ltd