R.P.P. Infra Projects Limited has informed the Exchange regarding Investor Presentation
RPP INFRA PROJECTS LTD
CORPORATE PRESENTATION | FY19
Disclaimer
This presentation contains forward-looking statements which may be identified by their use of words like “plans,” “expects,” “will,” “anticipates,” “believes,” “intends,” “projects,” “estimates” or other words of similar meaning. All statements that address expectations or projections about the future, including, but the strategy for growth, product development, market position, not expenditures, and financial results, are forward-looking statements.
limited to, statements about
Forward-looking statements are based on certain assumptions and expectations of future events. The company referred to in this presentation cannot guarantee that these assumptions and expectations are accurate or will be realized. The actual results, performance or achievements, could thus differ materially from those projected in any such forward-looking statements. These company assume no responsibility to revise any forward looking statements, on the basis of any subsequent publicly amend, modify or developments, information or events, or otherwise.
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Agenda
1
2
3
4
Introduction to the Company
Slides 4-7
Q4FY19 Review & Future Guidance
Slides 8-14
Industry Overview
Slides 15-17
Appendix – Company Overview
Slides 18-29
Strong Delivery Despite Tough Environment
FY19 Guidance
FY19 Actual
FY20 Outlook
Revenue
INR 5.3-5.5 Bn
INR 5.8 Bn
FY19 Highlights o Strong Order Book of INR 19.44 Bn o Revenue growth of 16.3% despite tough operating
environment
o Reported EBITDA Margins at 10.7%, not including GST-
related adjustments
o GST-adjusted EBITDA Margins stand at 13.1%; in-line
with guidance
o High book to bill ratio at 3.35x o Working Capital Situation eased; bank guarantees tied
up in March 2019
o Promoter pledge on 9.7 lk shares released in Q1FY20 o Changes in billing pattern to stage-wise completion vs item-wise completion earlier, led to cost booking to INR 140 Mn, without booking consequent revenue
4
A Pure Play Niche EPC Company
Strong presence in the fast-growing micro-markets of
South India
Currently spreading its footprints in Maharashtra and MP
for geographical diversification
Diversified presence in Highways, Roads & Bridges, Civil Construction in Water Management, Irrigation and Power projects
Focus on small government projects with superior project
execution skills
Short tenure projects provide strong revenue visibility
Order Book (Mar’19) – INR 19,442.5 Mn
Water Management 35%
Buildings 23%
Infrastructure 43%
Orders won in Q4 FY19 : 4,937 Mn
5
A Fast Growing Company…
Revenue (INR Mn)
EBITDA (INR Mn)
PAT (INR Mn)
5,807
4,991
661
620
502
463
315
239
243
3,663
3,147
348
318
2,631
2,329
207
173
117
FY 14
FY 15
FY 16
FY 17
FY 18
FY 19
FY 14
FY 15
FY 16
FY 17
FY 18
FY 19
FY 14 FY 15 FY 16 FY 17 FY 18 FY 19
Adjusted PAT in FY18 is excluding one time tax expense of Rs. 17.96 crores to resolve pending IT disputes from FY10 to FY16 6
…With a Strong Balance Sheet, Creating Superior Shareholder Value
RoE (%)
Net debt to equity (x)
17.4%
0.58
14.7%
0.49
12.7%
12.30%
10.5%
8.6%
0.30
0.33
0.20
(0.03)
FY 14
FY 15
FY 16
FY 17
FY 18
FY 19
FY 14
FY 15
FY 16
FY 17
FY 18
FY 19
7
Q4FY19: Stable Performance Amid Tight Liquidity
Operational Highlights
• Q4FY19 revenue growth of strong
46% execution of order book
led
by
•
•
Changes in billing pattern to stage-wise completion vs item-wise completion earlier, led to 56% increase in costs, impacting thus EBITDA margins
Higher costs finance attributed to final tie-up of BG limits, only in March 2019, remaining unutilised in Q4FY19
thus
Revenue (INR Mn)
2,067
1,417
Q4FY18
Q4FY19
EBITDA (INR Mn) & EBITDA Margin (%)
12.8%
181
7.2%
149
o Revenue up 29% YoY due to
strong execution
o EBITDA up 25%
Q4FY18
o PAT up 38% YoY
Q4FY19
Reported PAT (INR Mn)
83
15
Q4FY18
Q4FY19
8
FY19 – Balance Sheet Strength Intact
12.3%
Return on Equity (%)
103 Days
13 Days
Receivable Days
Inventory Days
0.3x
Net Debt to Equity (x)
87 Days
Payable Days
9
Q4 & FY19 At a Glance
INR Mn
Revenues
EBITDA
EBITDA Margin
Finance Cost
Reported PAT
Reported EPS (INR)
Q4FY19
Q4FY18 % Change (YoY)
FY19
FY18 % Change (YoY)
2,067
149
7.2%
72.8
14.9
0.66
1,417
46%
181
-18%
5,807
619.7
4,991
660.6
12.7%
10.7%
13.2%
47
56%
82.9
-82%
3.67
-82%
232.4
243.5
10.77
185.6
133.5
5.84
16.3%
- 6.2%
25.2%
- 22.2%
- 21.9%
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Business Review
ROADS
Current Order Book – INR 8,309 Mn Embedded EBITDA margins of 12-14%
WATER MANAGEMENT
Current Order Book – INR 6,764 Mn Embedded EBITDA margins of 15-18%
BUILDINGS
Current Order Book – INR 4,369 Mn Embedded EBITDA margins of 10-12%
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Q4 FY19 – Strong Order Inflows
Name
Amount
Segment
State
Q4FY19 Wins
Slum Clearance Board, Tamil Nadu
BHEL, Chennai
INR 1,057
INR 629 Mn
Buildings
Buildings
Tamilnadu
Tamilnadu
Tiruppur City Municipal Corporation
INR 1,947 Mn
Water Management
Tamilnadu
BHEL, Chennai
INR 402 Mn
Buildings
Tamilnadu
Thoothukudi Smart City
INR 180 Mn
Water Management
Tamilnadu
Gujarat Water Supply Board – 40% share
INR 405 Mn
Water Management
Gujarat
Gujarat Water Supply Board – 40% share
INR 317 Mn
Water Management
Gujarat
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Orderbook Growth Trajectory (INR Mn)
100% Govt Order Book
Order Book Break up
Telangana 0%
Andhra Pradesh 1%
Bangladesh 4%
Jharkhand 3%
Karnataka 5%
19,442
INR 6.5 Bn New Order Wins in H2FY19 so far
11,750
10 States of Operations
Tamil Nadu 49%
7,250
7,860
FY16
FY17
FY18
FY19
3 Countries of Operations
Srilanka 2%
Kerala 7% Madhya Pradesh 1%
Gujarat 4%
Maharashtra 25%
13
Key Investment Highlights
Growing Order Book
c.2.5x in 3 years
Short duration projects
• 3.35x Book to Bill ratio
Strong revenue visibility
87% of projects to be completed in 18-24 months period
Superior Revenue Growth
• 15-20% for next 2 years
De-risked Business Profile
• 100% Government orders
Healthy Balance Sheet
• Lower net debt on books
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Industry Overview
15
Construction industry in India: Compelling growth drivers
o Growing economy and increasing urbanization along with favorable policy bodes well for construction sector in the country o Big boost in infrastructure spending expected over next few years
Significant Traction in NHAI Ordering
Significant NHAI Bid Pipeline of INR c.800 Bn
2,222 km
Highway Projects Awarded in FY19
HAM, 440
(1) Source: CRISIL
3,400 km
EPC, 360
Highway Projects constructed in FY19
Highway Construction km/day
30
27
8
9
23
7
16
5
11
5
12
4
17
5
FY13
FY14
FY15
FY16
FY17
FY18
FY19
Morth km/day
Structural positive changes in sector
Streamlined & ease in process for obtaining environmental / green clearance approval driving faster execution
Government’s approval of new arbitration guidelines to help in speedy resolution of pending claims, improving cash flows
Source: GOI websites 16
Rural Infra: A Strong Government Focus
o Pradhan Mantri Gram Sadak Yojana (PMGSY), launched by GoI to provide connectivity to unconnected Habitations as part of a
poverty reduction strategy
o Involves construction of about 3.71 lakh km. of roads for New Connectivity and 3.68 lakh km. under upgradation
171,041
119,943
51,098
No of Works Cleared
New Connectivity Works
Upgradation Works
148,612
599,238
22,429
Completed Road Works
Completed Length (kms)
In-progress Road Works
Source: PMGSY Website
Appendix – Business Highlights
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De-Risked Business Model
Max Project Duration: 24 mths
Short Duration Projects
Low Ticket Projects
Max Project Size < INR 250 Crores
Superior Profitability
EBITDA Margins: 12%-13%
19
Improving Geographical Diversification
FY14 Order Book – INR 5,360 mn
Order Book (Mar’19) – INR 19,442 Mn
Uttar Pradesh, 9%
Maharashtra, 6%
Karnataka, 12%
Tamil Nadu 49%
Tamil Nadu, 73%
Telangana 0%
Andhra Pradesh 1%
Bangladesh 4%
Jharkhand 3% Karnataka 5%
Kerala 7%
Madhya Pradesh Gujarat 1% 4%
Maharashtra 25%
Srilanka 2%
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High Revenue Visibility
Project Duration
Project Duration by Sector
5-10 mths 2%
16-24 mths 87%
11-15 mths 11%
39%
25%
23%
Book to bill ratio: 4.8x
2%
8%
3%
5-10 Mths
11-15 Mths
16-24 Mths
Building
Infra
Water Mgmt
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Efficient Operations
Large Talent Pool
Captive equipment
Strategic Subcontracting
Accurate Project Modelling
Small Ticket Size
Enhance Liquidity
Stringent Onsite Operations Control
Raise Milestone Bills Faster
Accelerate Project Completion
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Key Marquee Projects
Power Projects & Civil Work
•Sub Station at KPTCL, Karnataka •Udupi Project, Karnataka •Apgenco Project, Andhra Pradesh •Pykara Project, Tamil Nadu •Chemplast Project, Tamil Nadu
Infrastructure
Industries
Water & Irrigation
Buildings
•Atomic Energy, Kalpakkam •Storm water drains to Chennai Corporation •Truck Parking Yard at Manjampakkam, Chennai •TNRSP Road works, Tamil Nadu •Scientific Warehouse with PEB, Coimbatore, Tanjore, etc.
•BHEL – Tirchy, Chennai •MRPL, Bangalore •MSEZ, Mangalore •Neyveli Lignite Corporation, Tamil Nadu •Textile Park, Kamarapalyam •Circulating water system & fire protection system for Neyveli Lignite Corporation
•Construction for contour canal for 49.3 kms at Udumalpet •CWSS to 312 Habs at Eddapaddy rural areas in Salem, Tamil Nadu •Second Vaigai water supply schemes at Madurai •Construction of surplus regulator across Valpar River, Tamil Nadu •CWSS to 175 rural habitation in Dindigul district •Canal Lining project at Karnataka Neeravari Nigam Limited
•1000 units of homes for IDPs in Sri Lanka •Auditorium at Chennai Corporation •Ampa Center One in Nelson Manickam Road, Chennai •Anna Institute of Management, Chennai •Paddy market complex •Auditorium & Zonal Office for Chennai Corporations •Housing units for Karnataka Police •Kendra Vidyalaya School at Madurai •NIT campus at Trichy
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Talent Driven Organization
Mr. P. Arulsundaram Chairman & MD
▪ Started RPP Infra in 1988 ▪ Civil Engineer by qualification ▪ Practical experience of more than 23 years in construction industry ▪ Trustee in Erode District Builder’s Association Engineering College
Mrs. A. Nithya Wholetime Director & CFO
▪ Masters in Business Administration (Finance) & Software Appl ▪ Additional Qualifications – Liaison with Bankers and Financiers ▪ Vast experience in accounting & finance, legal, FX, HR, corporate governance
Mr. P. Muralithasan Director
▪ Civil Engineer by qualification ▪ Executed several marquee projects for RPP Infra
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Board of Directors
Mr. K. Ravi Independent Director
▪ Bachelors Degree from National Institute of Technology, Fellow of Institution of
Engineers & Certified Maintenance Professional
▪ Has over 43 years of experience in the construction industry
Mr. P.R. Sundarajan Independent Director
▪ Bachelors Degree from National Institute of Technology ▪ Masters degree in Structural Engineering ▪ Has over 36 years of experience in the construction industry
Mr. K. Rangasamy Independent Director
▪ Holds a Masters degree in Agricultural Science ▪ Qualified Member of Indian Institute of Bankers ▪ Has over 36 years of experience in the banking industry
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P&L TABLE - STANDALONE
*
*Reported PAT
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INCOME STATEMENT (INR Mn)FY19FY18FY17Revenue5,807 4,991 3,663 Expenses5,187 4,331 3,161 EBITDA620 661 502 EBITDA Margin11%13%14%Depreciation64 68 50 Finance Cost232 186 167 Other Income87 64 31 PBT410 471 316 PBT Margin7%9%9%Tax Expense167 336 77 PAT243 135 239 PAT Margin4%3%7% B/S TABLE - STANDALONE
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AssetsFY 19FY 18FY 17Equity and LiabilitiesFY 19FY 18FY 17 Non-Current assetsProperty, plant and equipment517 302 284 EquityCapital work in progress39 2 40 Equity Share Capital226 226 226 Other Intangible assets26 1 0 Other Equity1,866 1,645 1,524 Total equity2,092 1,871 1,750 Financial assetsNon-current liabilitiesInvestments6 7 10 Financial liabilitiesLong Term Loans & Advances- - - Borrowings587 118 168 Deferred Tax Asset- 22 12 Other Financial Liabilties- - 20 Other Non-Current Assets22 18 5 Provisions3 7 6 Deferred Tax Liability (Net)7 - - Current assetsInventories202 177 40 Current liabilitiesFinancial assets- - - Financial LiabilitiesTrade Receivables1,635 1,057 2,234 Borrowings581 628 577 Cash and Cash equivalents484 793 402 Trade payables1,389 973 1,394 Short Term Loans & Adavances385 395 238 Other current financial liabilities540 943 437 Others1,701 1,463 852 Other Current Liabilities609 415 149 Other Curent Assets872 819 463 Short Term Provisions23 12 1 Current Tax Assets (net)- - - Current Tax Liabilities (Net)59 89 80 TOTAL5,889 5,056 4,581 TOTAL5,889 5,056 4,581 Thank You & Contact Us
Sheetal Khanduja Go India Advisors +91 9769364166 sheetal@goindiaadvisors.com
Tanya Khosla Go India Advisors +91 9769387813 tanya@goindiaadvisors.com
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