Kec International Ltd. · NSE:KEC
Kec International — RPG Annual Investor Conference 2022
31 slides from Kec International's conference presentation, Sep 13, 2022
Slide 1: Exchange filing cover letter: Investor presentation
KEC INTERNATIONAL LTD. RPG House 463, Dr. Annie Besant Road Worli, Mumbai 400030, India +91 22 66670200 kecindia@kecrpg.com www.kecrpg.com September 13, 2022 National Stock Exchange of India Limited BSE Limited Exchange Plaza Phiroze Jeejeebhoy Towers Bandra Kurla Complex Dalal Street, Fort Bandra (
Slide 2: KEC International Limited – RPG Annual Investor Conference
hello happiness KEC International Limited RPG Annual Investor Conference 14 September 2022
Slide 3: 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 4: Contents
Contents 1 KEC – Overview and Journey 2 Business Highlights 3 Way Forward Power T & D Railways Civil Cables Solar Smart Infra Oil & Gas Pipelines
Slide 5: KEC – Building the World of Tomorrow
KEC – Building the World of Tomorrow 1.8 bn 7+ 110+ 290+ 8 9,000+ Global EPC Decades of Footprint in Ongoing Manufacturing Employees Major Experience countries projects Plants Transmission & Railways Civil Urban Infra Distribution Cables Solar Smart Infra Oil & Gas Pipelines
Slide 6: Our Strategic Journey
Our Strategic Journey Synergistic Diversification/ Acquisitions in New Business and Segments Sustained focus on North Star Goal of Ahead of Time Delivery – Customer Delight Embedding sustainable practices towards Environment, Safety & Governance Consistent focus on Revenues, Profitability and Order
Slide 7: Diversified into 5 New Businesses from 2016
Diversified into 5 New Businesses from 2016 Acquired by RPG
Slide 8: Quantum Leap in Non T&D Revenues – Share increased to 50%
Quantum Leap in Non T&D Revenues – Share increased to 50% FY16 FY22 Revenue 83% T&D 50% Revenue Rs. 8,710 Crores Rs. 13,742 Crores 2% 28% 2% 2% Railways 6% 1% 1% - Civil 14% 13% 14% 13% Cables 6% 83% 50% Oil & Gas - Pipelines 1% 28% 2% Others 1% T&D Non T&D T&D Non T&D 83% 17% 50% 50%
Slide 9: Targeted Acquisitions to Drive Growth and Improve Competitiveness
Targeted Acquisitions to Drive Growth and Improve Competitiveness Dubai Tower Manufacturing Facility KEC Spur Infra, Oil & Gas Pipelines Kandla (Gujarat) - Gorakhpur (Uttar Pradesh) LPG Pipeline project • Acquired transmission tower manufacturing facility in • Acquired KEC Spur Infrastructure Pvt. L
Slide 10: Execution Excellence
Execution Excellence Delivering projects ahead of schedule - leveraging Mechanization and Digitalization Mechanization Digitalization Diitalization Building capabilities on Formwork technology in Pre-cast Residential – 1 slab in 7 Raksha iQuality days Digital Platform AI enabled for End-to-end platf
Slide 11: Our ESG Journey
Our ESG Journey FY 2022 FY 2021 ✓ Several initiatives deployed ✓ Improvement in ESG rating by S&P Global DJSI ✓ Developed long-term vision FY 2020 ✓ Ranked in the Top 50 most sustainable and goals with measurable targets as part of sustainability companies in India by Business World ✓ Embarked on ES
Slide 12: Delivering Sustainable Growth
Delivering Sustainable Growth Revenue (₹ Crore) PAT # (₹ Crore) Order Book (₹ Crore) CAGR 9% CAGR 11%* CAGR 4% CAGR 23%* CAGR 13% CAGR 18%* 13,742 23,716 13,114 566 553 20,503 496 20,307 11,965 460 19,109 363 17,298 11,001 305 10,091 12,631 8,755 FY17 FY18 FY19 FY20 FY21 FY22 FY17 FY18 FY19 FY20 FY2
Slide 13: Strengthening Balance Sheet
Strengthening Balance Sheet Net Worth (₹ Crore) & Net Debt to Equity (times) Interest (₹ Crore) & (% to Revenue) 3,620 2.9% 1.2 3,360 2.8% 0.8 2,798 2.6% 2,435 1,997 0.8 2.3% 2.3% 1,586 0.7 0.6 2.0% 0.5 312 308 316 254 229 263 FY17 FY18 FY19 FY20 FY21 FY22 FY17 FY18 FY19 FY20 FY21 FY22 Debt to Equit
Slide 14: Contents
Contents 1 KEC – Overview and Journey 2 Business Highlights 3 Way Forward Power T & D Railways Civil Cables Solar Smart Infra Oil & Gas Pipelines
Slide 15: Civil & Urban Infra – Scaling Newer Heights
Civil & Urban Infra – Scaling Newer Heights Diverse Portfolio of Offerings URBAN INDUSTRIAL & RESIDENTIAL & DEFENCE & INFRASTRUCTURE HYDROCARBON PUBLIC SPACES DATA CENTRE & WATER Industrial Plants, Factories & Metros Residential Buildings Defence Warehouses Water Hydrocarbons Airports, Malls & Hospi
Slide 16: Civil & Urban Infra – Structured Growth Story
Civil & Urban Infra – Structured Growth Story Revenue Capability Projects Order Book 7x Growth 10x Built 40+ Ongoing 23x Growth FY18 – Rs. 268 Cr FY18 – 110 people 20+ projects delivered FY18 – ~Rs. 400 Cr FY22 – ~Rs. 1,900 Cr Current – 1100+ people successfully Current – ~Rs. 9,000 Cr Q1 FY23 – ~Rs
Slide 17: Urban Infra - Mastering Metro Execution
Urban Infra - Mastering Metro Execution Kochi Metro Project -Handed over the Kochi viaduct before schedule - Inaugurated by Hon'ble PM Shri Narendra Modi ▪ Capable of executing large, complex and technologically intensive urban infra projects ▪ Currently executing 9 large civil projects in Urban inf
Slide 18: Water Pipelines – Promising Sector
Water Pipelines – Promising Sector • Foray in Water EPC segment, one of the most promising sector with significant investments • Orders/ L1 of over Rs. 2,500 Cr. - Building cross country water transmission and distribution pipelines • Providing water supply to ~6,00,000 households across various vil
Slide 19: Public Spaces and Defence
Public Spaces and Defence • Breakthrough in the growing public spaces segment with orders in Airports, High Courts & Govt. buildings • Strengthened presence in Defence with largest ever order from MES Tuticorin Airport Sri Nagar High Court Civil works for a Defence client *Images are for representat
Slide 20: Data Centres
Data Centres Data centre project, Defence client Data centre project, Private client *Image for representative purpose • Executing Data centre projects for Govt. and Private clients – Secured repeat orders • Integrated value proposition for clients including Civil Infra, MEP, Substation, Cables and
Slide 21: Railways – Diversification on Track
Railways – Diversification on Track • Robust Execution o Revenue CAGR of 60% in last 6 years (Rs. 210 Cr in FY16 to Rs. 3,860 Cr in FY22) o Achieved Revenues of over Rs. 700 Cr in Q1 FY23, Growth of 19% • Delivering double digit margins • Diversified and Healthy Order book + L1 of over Rs. 7,000 Cr
Slide 22: Electrification Mission
Electrification Mission Largest contributors to Indian Railways Electrification Mission Electrified ~23% of the Indian Railway Network in FY22 Villupuram-Thanjavur Railway Electrification project, Tamil Nadu Inaugurated by Hon'ble PM Shri Narendra Modi
Slide 23: Transformation in Railways
Transformation in Railways ✓ Widened presence in ✓ Deepened ✓ Forayed in Conventional ✓ Backward capabilities in Civil technologically Railways ✓ Focus on integration - infrastructure such enabled areas: o Speed upgradation Conventional manufacturing as bridges, platforms, o Orders in Metro for High
Slide 24: Transmission & Distribution – Powering the Globe
Transmission & Distribution – Powering the Globe • Global EPC footprint in 70 countries − Successfully entered/re-entered over 20 countries in the last five years, including two new countries in FY22 • Strengthened presence in India with large orders from PGCIL, private players and state utilities i
Slide 25: Cables – Gaining Momentum
Cables – Gaining Momentum Cables manufacturing plant at Mysuru, Karnataka Underground Cabling project, Saudi Arabia • Achieved highest ever Revenues and Profitability in FY22; Momentum continues in Q1 FY23 • Strategic partner to Railways and T&D • Strengthening Backward Integration - Commissioned ad
Slide 26: Contents
Contents 1 KEC – Overview and Journey 2 Business Highlights 3 Way Forward Power T & D Railways Civil Cables Solar Smart Infra Oil & Gas Pipelines
Slide 27: Current Outlook
Current Outlook TAILWINDS HEADWINDS • Softening of commodity prices such as Steel, Aluminium • Increase in Working Capital and Copper • Capex resurgence • Rising interest rates especially in SAE Brazil o Government’s thrust on Infrastructure continues • Elevated logistics costs o Return of Private c
Slide 28: Robust Demand – Exciting Times Ahead
Robust Demand – Exciting Times Ahead Civil & Urban Infra Transmission & Distribution Civil & Urban infra will be the largest growth driver T&D traction to continue • Large investments in urban infra and water pipelines • Traction in Middle East, Americas, SAARC and EAP • Focus on Make-in-India & PLI
Slide 29: Portfolio Diversification – Accelerating Growth
Portfolio Diversification – Accelerating Growth Developed a well-diversified portfolio to de-risk and accelerate growth (₹ crore) Current Order Over next 3 years FY16 Order Book Book# Growth Drivers T&D ~8,200 ~14,000 Railways ~550 ~7,000 Civil & Urban Infra Civil & Urban Infra -- ~9,000 Oil & Gas P
Slide 30: Looking Ahead…
Looking Ahead… Strategic Priorities Profitable Strengthening Transform KEC Employee Sustainable Growth through Balance Sheet from a Happiness – Value Creation focused through ‘traditional’ to a Being an Business & Sustained Cash digital/ tech- for all Employer of Stakeholders Geographical Flow enabl
Slide 31: hello happiness
eid hello happiness RPG | KEC
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