H.g. Infra Engineering Ltd. · NSE:HGINFRA
H.g. Infra Engineering — Investor Presentation (November 2018)
33 slides from H.g. Infra Engineering's investor presentation, November 2018
Slide 1: Investor Presentation, Nov 2018
Investor Presentation, Nov 2018 H.G. Infra Engineering Ltd We make people move
Slide 2: Outline
Outline 01 Q2 & H1 FY19 Result Highlights 02 About the Company 03 Key Strengths and Drivers 04 Growth Strategy 05 Financial Highlights
Slide 3: Q2 & H1 FY19 Results Highlights
Q2 & H1 FY19 Results 01 Highlights
Slide 4: Result Highlights Q2FY19
Result Highlights Q2FY19 Robust growth in topline and profitability Revenue EBITDA and EBITDA Margin 14.3% 14.5% 82% 4,291 623.2 2,363 338.2 Q2FY18 Q2FY19 Q2FY18 Q2FY19 PBT PAT and PAT Margin 7.0% 8.8% 4.2% 5.7% 379.4 245.7 166.0 99.6 Q2FY18 Q2FY19 Q2FY18 Q2FY19 Financials in Rs mn Revenue for Q2FY1
Slide 5: Result Highlights H1FY19
Result Highlights H1FY19 55% growth in revenue; higher margin Revenue EBITDA and EBITDA Margin 14.1% 14.7% 55% 8,792.8 1,294.0 5,673.4 799.2 H1FY18 H1FY19 H1FY18 H1FY19 PBT PAT and PAT Margin 8.0% 9.0% 5.2% 5.9% 790.7 515.8 451.8 293.3 H1FY18 H1FY19 H1FY18 H1FY19 Financials in Rs mn Revenue for H1FY
Slide 6: Q2FY19 & H1FY19 Standalone Profitability Highlights
Q2FY19 & H1FY19 Standalone Profitability Highlights Q2FY19 Q2FY18 YoY H1FY19 H1FY18 YoY Revenue from operations 4,291.1 2,363.4 81.6% 8,792.8 5673.4 55.0% Cost of material consumed 1,999.1 986.7 102.6% 4,255.2 2464.5 72.7% Contract and site expenses 1,331.0 833.2 59.7% 2,580.3 2020.1 27.7% Employee
Slide 7: Balance Sheet
Balance Sheet Rs mn Sep’18 Mar’18 Share Capital 651.7 651.7 Reserves 5,232.5 4,756.9 Shareholders' Funds 5,884.2 5,408.6 Secured Loans 787.7 1,247.0 Other liabilities 537.0 488.6 Total Non-Current Liabilities 1,324.7 1,735.6 Trade Payables 2,226.2 2,793.4 Other Current Liabilities 1,078.3 1,764.4 Cu
Slide 8: About the Company
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Slide 9: Company Overview
Company Overview Experienced roads and highways construction company 15 31 1,500+ Years of track record in projects under execution Number of plant & project execution (26 roads & highways) machinery 6 3,700 Rs 48,822 mn States where projects Qualified and Order Book (unexecuted as on Sept 30, 2018)
Slide 10: Track Record
Track Record Executed projects across geographies and clients Presence across 6 states Clients 1 1 1 1 9 2 19 3 Accreditations and awards Quality Management Environment Management Health & Safety 7 1 No. of completed projects No. of ongoing projects u Letter of appreciation in 2012 from L&T for bein
Slide 11: Milestones
Milestones Evolved from sub-contractor to main contractor with higher value contracts 2003-08 2010-14 2015-16 2017-18 Four laning of 49 mm on 7 construction projects in Incorporated in 2003 Construction project of four the Jaipur-Tonk-Deoli Maharashtra by MoRTH – section on NH-12 – laning of NH-65,
Slide 12: Completed Projects
Completed Projects Completed notable projects of different sizes & complexities Project 4 laning of Construction 2nd Renewal Coat Construction of Widening & Warora- Kuberpur to on the Pavement of Tonk-Deoli Jaipur Strengthening of Chandrapur- Fatehabad- Agra 6 lane Jaipur- Section NH96 Ballarpur Inn
Slide 13: Joint Ventures
Joint Ventures Between 2013-17, ongoing/completed 5 roads and highways projects through JVs M.G Rameshwar JV partner Tata Projects Ranjit Buildcon Colossal Contractors Prasad Sharma Limited Limited Construction Pvt Limited Contractor Changlang district Bari-Baseri-Weir- Project Babatpur to Chittorga
Slide 14: Management Team
Management Team Experienced and qualified senior management and operational team Mr. Harendra Singh Mr. Rajeev Mishra Mr. Raja Dutta Chairman and Managing Director Chief Financial Officer Chief Operating Officer • 23 years of experience in the • Over 10 years of experience in banking • 20 years of e
Slide 15: Board of Directors
Board of Directors Management supported by independent Board Mr. Vijendra Singh Whole-time Director • 23 years of experience in the construction industry • Responsible for the overall functioning of the Company Ms. Dinesh Kumar Goyal Executive Director • Retired IAS, has more than 40 years experienc
Slide 16: Key Strengths and Drivers
03 95> Key Strengths and Drivers
Slide 17: Industry Opportunity, Differentiated Business Model, Robust Order Book
INDUSTRY OPPORTUNITY Increasing investments Policy support and reforms Insufficient network DIFFERENTIATED BUSINESS MODEL TO DRIVE Evaluation and management skills GROWTH WITH Equipment bank Project team SUPERIOR MARGINS ROBUST ORDER BOOK 3.8x FY18 revenues Provides revenue visibility
Slide 18: Industry Opportunity
Industry Opportunity Increasing investment in the infrastructure sector with focus on roads & highways Government’s focus on improving domestic infrastructure leading to increasing investments in the sector (Rs tn) 30.93 u Cumulative investments in infrastructure projects from FY12-17 27.30 is estim
Slide 19: Industry Opportunity
Industry Opportunity Several factors driving the growth in infrastructure investments NH constitutes a mere 1.7% of the road network þ Policy changes fueling growth – land availability, fast- but carry about 40% of the total road traffic track clearances, revival of stalled projects, etc. Road Netwo
Slide 20: Differentiated Business Model
Differentiated Business Model Presence across the project lifecycle for better efficiency 1 2 3 Efficient project Technical and skilled Large in-house evaluation and team for project equipment bank management skills management Differentiated business model with focus on efficient execution, complete
Slide 21: Project Evaluation and Management
1 Project Evaluation and Management Presence across the project lifecycle for better efficiency and cost optimization u Focus on selection of projects with favorable execution conditions Preliminary project evaluation u Projects with our hurdle rate of profitability u In-house team for technical sur
Slide 22: Equipment Bank
2 Equipment Bank Invested Rs 3,900+ mn in plant and machinery in last 2.5 years u Owned equipments ensures control over execution u Ensures availability and quick mobilization u Eliminate delays and cost over-runs due to untimely break- Crushers Compactors Graders downs or non-availability Gross Blo
Slide 23: Project Team
3 Project Team Total 3,700 employees; net addition of 800+ employees in FY19 No. of employees Large number of skilled employees 3,700 3.5x 2,894 Semi Skilled 512 1,497 1,070 Unskilled 147 Highly Skilled Mar'16 Mar'17 Mar'18 Sept'18 310 Skilled Employee Expenses (Rs mn) 2,731 5.4% 3.9% u 3,700 employ
Slide 24: Order Book
Order Book Robust order book of Rs 48,822 mn (~3.5x FY18 Revenues) Robust growth in order book (Rs mn) Order book breakup (Rs 48,822 mn) 3.4x HAM 12% EPC 48,822 88% 46,071 40,191 Others , 1% Maharashtra, 23.8% Haryana, 12% 14,463 Rajasthan, 39.4% UP, 24% Mar'16 Mar'17 Mar'18 Sept'18 Diversified orde
Slide 25: Order Book
Order Book Order book provides revenue visibility Top 5 orders under execution Value Project Nature of work Appointed Date (Rs mn) Gulabpura- Chittorgarh Section-2 Six Laning Nov 2017 7,117 Chittorgarh- Udaipur Section of NH-76 Six Laning Jul 2017 4,834 Section-1 Rehabilitation & Up-gradation from T
Slide 26: Growth Strategy
04 Growth Strategy
Slide 27: Strategy
Strategy Continue focus on core EPC projects with superior margins § Focus on road and highways EPC § Reduce business concentration § Invest in modern construction in limited geography equipment § De-risk by expanding the § Attract and retain talented presence in different states employees Business
Slide 28: Financial Highlights
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Slide 29: Revenue, EBITDA and PAT
Revenue, EBITDA and PAT Robust topline and profitability growth … Rs mn Revenue from Operations EBITDA & EBITDA Margin PAT & PAT Margin 10.6% 11.8% 14.9% 4.8% 5.1% 6.1% 13,927 842 2,081 10,560 534 7,409 1,244 354 781 FY16 FY17 FY18 FY16 FY17 FY18 FY16 FY17 FY18 Revenue for FY18 is net of GST, wherea
Slide 30: Return Ratios
Return Ratios … leading to superior return ratios Debt/EBITDA Return on Capital Employed Return on Net Worth 39% 40% 32% 30% 31% 29% 2.0 1.6 1.6 FY16 FY17 FY18 FY16 FY17 FY18 FY16 FY17 FY18 Disciplined working capital management Working Capital Days ü Debt is calculated as: Long Term + Short Term Bo
Slide 31: Consolidated Profit and Loss Statement
Consolidated Profit and Loss Statement Rs mn Mar-18 Mar-17 Revenue from operations 13,927.25 10,560.28 Cost of material consumed 5,462.38 4,088.66 Contract and site expenses 5,474.70 4,715.79 Employee expenses 761.43 407.93 Other expenses 148.05 103.55 Total Operating expenses 11,846.56 9,315.92 EBI
Slide 32: Consolidated Balance Sheet
Consolidated Balance Sheet Rs mn Mar-18 Mar-17 Mar-16 Share Capital 651.71 180.20 180.20 Reserves 4,756.92 1,581.15 1,047.51 Shareholders' Funds 5,408.63 1,761.35 1,227.71 Long Term Borrowings 1,246.98 634.78 284.47 Trade Payable 487.85 295.37 88.45 Employee benefit obligations 0.73 - 1.04 Total Non
Slide 33: Disclaimer
Disclaimer This presentation and the accompanying slides (the “Presentation”), which have been prepared by Company HG 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 f
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