H.g. Infra Engineering Ltd. · NSE:HGINFRA
H.g. Infra Engineering — Q1 FY20 Earnings Presentation
29 slides from H.g. Infra Engineering's earnings presentation, Aug 10, 2019
Slide 1: Cover letter to stock exchanges
CIN No.: L45201 PJ2003PLC018049 HGIELI Vr`Ule Mal{e P@®ple M®ve ... Date-loth August, 2019 To To BSE Limited National Stock Exchange of India Ltd Ph iroze Jeejeebhoy Towers Exchange Plaza, C-I, BIock G, Dalal Street Bandra Kurla Complex, Mumbai- 400001 Mumbai-400051 Scrip Code-541019 Scrip Code- HGI
Slide 2: HG Infra Engineering Investor Presentation Q1FY20
HG Infra Engineering Investor Presentation Q1FY20 Uncha Nagla Project
Slide 3: Disclaimer
This presentation and the accompanying slides (the “Presentation”), which have been prepared by HG Disclaimer Infra Engineering Limited (the “Company”), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for any s
Slide 4: Contents
Contents Q1FY20 Result Highlights Company Overview Key Strengths Growth Strategy Historical Financials
Slide 5: Q1FY20 Highlights
Q1FY20 Highlights Kaithal Project
Slide 6: Result highlights Q1FY20 – strong growth in profitability
Result highlights Q1FY20 – strong growth in profitability Rs mn Revenue EBITDA and EBITDA Margin 14.9% 15.1% 17% 5,261 4,502 795 671 Q1FY19 Q1FY20 Q1FY19 Q1FY20 PBT & PBT Margin PAT and PAT Margin 9.1% 10.0% 6.0% 6.5% 527 344 411 270 Q1FY19 Q1FY20 Q1FY19 Q1FY20 Standalone Financials 5
Slide 7: Profit and loss statement
Profit and loss statement Standalone Consolidated (Rs mn) Q1FY20 Q1FY19 YoY Q1FY20 Q1FY19 YoY Revenue from operations 5,261 4,502 16.9% 5,321 4,502 18.2% Cost of material consumed 2,275 2,256 0.8% 2,275 2,256 0.8% Contract and site expenses 1,856 1,249 48.6% 1,856 1,249 48.6% Employee expenses 289 2
Slide 8: Recent developments
Recent developments Receipt of appointed date for the EPC contract from Modern Road Makers Pvt Ltd (a subsidiary of IRB) ✓ The scope of work involves six laning of Hapur bypass to Moradabad section of NH24 (New NH-9) in the state of Uttar Pradesh ✓ Valued at Rs 11,723 mn ✓ Length of the project is 8
Slide 9: Robust and well diversified order book
Robust and well diversified order book Robust growth in order book (Rs mn) Private Client wise break-up: 30% higher share of prime Govt. contracts and focus on 70% select private projects 62,223 Maharashtra, 9% 57,103 Haryana, Geographical break- Goa, 3% 30% up: successful 46,071 diversification bey
Slide 10: Key orders under execution
Key orders under execution 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-Chittorgarh IRB Rajast
Slide 11: Overview
Overview Manoharpur Dausa Project
Slide 12: Company overview
Company overview 33 1,800+ 3,500+ PROJECTS UNDER FLEET SIZE MANPOWER EXECUTION Rs 57,000mn+ 39% 52% ORDER BOOK Revenue CAGR Profit After Tax CAGR (30th JUNE 2019) (FY16-FY19) (FY16-FY19) 11
Slide 13: 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 14: 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 15: Key Strengths
Key Strengths Bhilwara Gulabpura Project
Slide 16: 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 1,804 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 17: 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 18: 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 Successful implementation of SAP in FY19, the benefits of whi
Slide 19: Leading to successful evolution to prime road contractor
Leading to successful evolution to prime road contractor EPC 2,500 17,500 Rs mn Rs mn pre-qualification March 2013 March 2019 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 20: Growth Strategy
Growth Strategy Sitarganj Project
Slide 21: 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 22: …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 23: Historical Financials
Historical Financials Kaithal Project
Slide 24: 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 25: Lean balance sheet, healthy return ratios
Lean balance sheet, healthy return rations Working capital cycle (Days) Return on Capital Employed 40% FY 17 FY 18 FY 19 32% 32% Debtor Days 36 51 69 Inventory Days 41 52 46 Creditor Days 23 51 69 Net WC Days 54 52 46 FY17 FY18 FY19 ✓ Debtors Days is calculated as Average Trade Receivables (excl. re
Slide 26: Profit and loss statement
Profit and loss statement Standalone Consolidated (Rs mn) FY19 FY18 YoY FY19 FY18 YoY Revenue from operations 20,098 13,927 44.3% 20,145 13,927 44.6% Cost of material consumed 8,919 5,462 63.3% 8,919 5,462 63.3% Contract and site expenses 6,665 5,475 21.7% 6,666 5,475 21.8% Employee expenses 1,191 7
Slide 27: 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 28: 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 29: 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
H.G. Infra Engineering — Q1 FY20 Earnings Presentation on 6ix