Gayatri Projects Limited has informed the Exchange regarding Investor Presentation
~
GAyATRI
Date: May 31, 2019
To, The General Manager, The Department of Corporate Relations, The Bombay Stock Exchange Limited., 25th Floor, Phiroz Jeejeebhoy Towers, Dalal Street, Mumbai - 400 001
To, The Secretary, National Stock Exchange of India Ltd. 5th Floor, Exchange Plaza Plot No.C/1, G Block Bandra Kurla Complex, Bandra (East) Mumbai -400 051.
Dear Sir/Madam.
Sub: - Presentation on Q4 &. FY-19 Results to Analysts and Market Reg .. ,
• • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • 1
With reference to above subject, please find enclosed presentation to Analysts and Market on
results for the quarter and year ended March 31, 2019.
For your information and necessary dissemination please.
Thanking you,
Yours truly, For GAYATRI PROJECTS LIMITED
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(CS I.V. LAKSHMI) Company Secretary and Comptia ce Officer Membership No. ACS17607:
---
Regd & Corp. Office : Gayatri Projects Limited, B1 . 6-3-1090. TSR Towers Raj Bhavan Road, Somajiguda, Hyderabad 500 082. T.S
CIN: L99999TG1989PLC057289
T +91 402331 0330 / 4284 / 4296 F +91 4023398435
E gplhyd@gayatrLco.in www.gayatri.co.in
Gayatri Projects Limited
Earnings Presentation Q4 and Full Year FY2019
Disclaimer
The material that follows is a Presentation of general background information about the Company’s activities as at the date of the Presentation. It is information given in summary form and does not purport to be complete and it cannot be guaranteed that such information is true and accurate. This Presentation does not constitute a prospectus, offering circular or offering memorandum or an offer, or a solicitation of any offer, to purchase or sell, any shares and should not be considered as a recommendation that any investor should subscribe for or purchase any of the Company’s equity shares.
This Presentation includes statements that are, or may be deemed to be, “forward-looking statements”. These forward-looking statements can be identified by the use of forward-looking terminology, including the terms “believes”, “estimates”, “anticipates”, “projects”, “predicts”, “aims”, “foresees”, “plans”, “expects”, “intends”, “may”, “will”, “seeks” or “should” or, in each case, their negative or other variations or comparable terminology, or by discussions of strategy, plans, aims, objectives, goals, future events or intentions. These forward-looking statements include all matters that are not historical facts. They appear in a number of places throughout this Presentation and include statements regarding the Company’s intentions, beliefs or current expectations concerning, amongst other things, its results or operations, financial condition, liquidity, prospects, growth, strategies and the industry in which the Company operates. By their nature, forward- looking statements involve risks and uncertainties because they relate to events and depend on circumstances that may or may not occur in the future. Forward-looking statements are not guarantees of future performance including those relating to general business plans and strategy of the Company, its future outlook and growth prospects, and future developments in its businesses and its competitive and regulatory environment. Neither the Company, nor its Directors, Promoter & Promoter Group, affiliates or other advisors or representatives nor any of its or their parent or subsidiary undertakings or any such person’s officers or employees gives any assurance that the assumptions underlying such forward-looking statements are free from errors nor do any of them accept any responsibility for the future accuracy of the forward-looking statements contained in this Presentation or the actual occurrence of the forecasted developments. Forward-looking statements speak only as of the date of this presentation. As a result, the Company expressly disclaims any obligations or undertaking to release any update or revisions to any forward-looking statements in this presentation as a result of any change in expectations or any change in events, conditions, assumptions or circumstances on which these forward-looking statements are based. No representation, warranty or undertaking, express or implied, is made or assurance given that such statements, views, projections or forecasts, if any, are correct or that the objectives of the Company will be achieved. The Company actual results of operations, financial condition and liquidity, and the development of the sector it operates in, may differ materially from those suggested by the forward-looking statements contained in this Presentation. In addition, even if the Company’s results of operations, financial condition and liquidity, and the development of the industry in which the Company operates, are consistent with the forward-looking statements contained in this Presentation, those results or developments may not be indicative of results or developments in subsequent periods.
The Company, as such, makes no representation or warranty, express or implied, as to, and does not accept any responsibility or liability with respect to, the fairness, accuracy, completeness or correctness of any information or opinions contained herein. The information contained in this Presentation, unless otherwise specified is only current as of the date of this Presentation. None of the Company, its Directors, Promoter and Promoter Group or affiliates, nor any of its or their respective employees, advisors or representatives or any other person accepts any responsibility or liability whatsoever, whether arising in tort, contract or otherwise, for any errors, omission or inaccuracies in such information or opinions or for any loss, cost or damage suffered or incurred however arising, directly or indirectly, from any use of its documents or its contents or otherwise in connection with this Presentation. The Company assumes no responsibility to publicly amend, modify or revise any forward looking statements, on the basis of any subsequent development, information or events, or otherwise. This presentation has been prepared based on the information available in the public domain and internal management information and estimates. The information contained herein is subject to change without notice. Past performance is not indicative of future results.
2
Agenda
1.
Gayatri Projects – An Introduction
FY 2019 Highlights
FY 2020 Key Priorities
Order Book Diversification
Top Work Orders – Status update
Key Investment Highlights
Digital Project Management Roll-out
2.
3.
4.
5.
6.
7.
8.
Slide No. 4
Slide No. 5 - 8
Slide No. 9
Slide No. 10
Slide No. 11 - 12
Slide No. 13
Slide No. 15-25
Appendix – Core Business Highlights
Slide No. 26 onwards
3
GPL: Among India’s Asset – Light EPC Companies
One of India’s leading construction and infrastructure companies with dedicated focus on asset-
light EPC work
5 decades of experience in execution of major civil works, diversified across
geographies &
infrastructure segments
o Pan India operations spread across 19 states o Transportation, Waterworks & Industrial construction projects o Marquee client list: NHAI, KNNL, PWD (Mizoram), MSRDC, BSRDC, CIDCO (Maharashtra) I &
CAD (AP, Telangana) etc.
Strong Execution track record
o o o
Completed more than 6,850 lane km of road construction over the last 25 years Completed ~44 projects aggregating to INR 106 billion+ value in last 5 years Own extensive fleet of more than 2,355 pieces of construction equipment
Leading technology-led transformation in Indian construction space
o o
Technology-driven efficient execution: IOT, Computer vision, UAVs, cloud-computing Real-time reporting, higher transparency & faster execution using end-to-end digital project management
High medium term revenue growth visibility driven by large order wins
o o
Order book of INR 163 bn Book-to-Bill of 4.7x: high growth visibility for next 4-5 years
Re-focused business on “Asset-Light” Model over last 4 years
o o
o
Reduced, restructured, monetized exposure to Asset Development Business Significant improvement in balance-sheet leverage (2.4x to 1.16x in last 4 years), return ratios (FY2019 RoE & RoCE at 17% ) and free cash flow generation (FCF of Rs 1.5 Bn, post interest payment, generated for the first time in last 10 years) On track for mid 20s RoE & RoCE, strong cash-flow generation and D/E below 0.5x in next 2-3 years
Business Segments
Core Business - EPC (Order Book: INR 163 Bn+)
Transportation National and State Highways
Water Works Canals, Dams, supply & Dist.
Mining U/G Mechanised
Railways DFC
Industrial Steel & Power Plants, T&D, Conveyor
Other Civil Site Levelling, Bldg EPC
Asset Development
Power (GEVL) 4,300 MW Power Capacity– Stake in Sembcorp Energy India Ltd. (SEIL)
Highways 4 Annuity + 3 Toll national & state highways
DRHP filed by SEIL for IPO
Demerged into a separate entity; Listed on BSE & NSE
4
4
FY2019 Guidance Met; FY2020 Outlook Bright
✓
✓
✓
✓
✓
FY2019 Guidance
FY2019 ACTUAL
FY2020 OUTLOOK
Order Inflow
INR 60+ billion
INR 61+ billion
INR 60-65 bn
Book to Bill
3.5x+
4.7x
INR 3.5-4.5x
Revenues
INR 35-36 billion
INR 35 billion
25%+ Growth
EBITDA Margin
16%+
PAT Growth
15-20%
16%
12%
16%
30%-40%
5
FY2019 – Strong Operating Performance
Revenue (INR bn)
EBITDA (INR bn) & EBITDA Margin
35
16.7%
4.7
15.7% 5.5
29
FY18
FY19
FY18
FY19
PBT (INR bn)
2.4
1.8
PAT (INR bn)
2.1
1.8
FY18
FY19
FY18
FY19
Key Highlights
• Reasonably strong revenue growth, tempered by weak execution in irrigation vertical (stretched state government finances).
• EBITDA margin dropped 100 bps due to significant on-site mobilisation ahead of actual revenue booking, margins should improve to normalised levels of 16%+ from current year.
• Strong order inflow of Rs 61 Bn helped to maintain a book-to-bill ratio in excess of 4.5x. Significant slow down in new orders during 4th quarter due to election linked inactivity.
• Company achieved a significant milestone in
generating free cash flow for the first time in last 10 years (Rs 1.5 Bn, post interest payment). With the business focus staying firmly on services side, strong FCF generation is expected to continue going forward.
6
Significant deleveraging despite continued Strong Revenue Growth
Net Debt/Equity (x)
Net Debt (INR Mn)
2.4
2.1
2.5
16,337
17,399
18,612
17,016
15,443
1.5
1.2
FY15
FY16
FY17
FY18
FY19
FY15
FY16
FY17
FY18
FY19
Debt Maturity Profile (INR MN)
2,090
1,986
2,316
2,139
Working Capital Days
95
105
78
78
74
680
FY15
FY16
FY17
FY18
FY19
FY20
FY21
FY22
FY23
FY24 & Beyond
Receivable Days
Payable Days
Inventory Days
Net Working Capital
7
Q4 & FY2019 Snapshot
8
INR MnQ4FY19Q4FY18YoY(%)FY19FY18YoY(%)Revenue11,5119,33223%34,63229,12319%Expenses(9,876) (7,777) 27%(29,182) (24,446) 19%EBITDA1,6351,5555%5,4504,67717%EBITDA Margin14.2%16.7%15.7%16.1%Depreciation(168)(156)8%(659)(547)20%Finance Cost(526) (638) -18%(2,513) (2,394) 5%Other Income16(42)7989-11%PBT95771933%2,3571,82529%PBT Margin8.3%7.7%6.8%6.3%Tax Expense369300%24955353%PAT921 728 27%2,108 1,881 12%PAT Margin8.0%7.8%6.1%6.5%Basic EPS5.34.129%11.310.66% FY20 Priorities: Continued De-leveraging & Business Return Improvement
1. Strong Operating Free Cash Flow
2. EBITDA to cash flow conversion
o Business focus on construction services o Strong growth driven by high book-to-bill
ratio
o Tight control on working capital to drive EBITDA conversion into free cash flow
65%
97%
Last 5 Year Average
FY 2019
3. Monetisation of Investment in Power Assets
4. Monetisation of Arbitration Awards & Claims
o Gayatri has an potential economic exposure
to 12.15% pre IPO stake in SEIL.
o The company is actively looking at ways to
monetise its stake and generate liquidity/de-leverage its balance sheet. o SEIL has filed DRHP in February 2018 with
SEBI for IPO
o GPL/ its JVs have been awarded by different
arbitrators/courts a total of Rs 6 Bn (including interest upto April 2019)
o In addition GPL/ its JVs have claims outstanding of
more than Rs 24 Bn in different arbitral tribunals/courts.
o The company is exploring avenues to generate
liquidity against these arbitration awards/claims.
9
Growing Order Book : Current Book to Bill of 4.7x
Growing and De-Risked Order Book (INR Bn)
Geographical Diversification
GPL’s Growth in EPC order book over the last 5 years 163
129
132
92
48
FY15
FY16
FY17
FY18
FY19
Segmental Diversification
71%
21%
1%
4%
2%
1%
ROAD
IRRIGATION
LAND DEVELOPMENT
MINING
RAILWAY
WATER GRID
Uttar Pradesh 25%
Telangana 12%
West Bengal 1%
Andhra Pradesh 11%
Bihar 6%
Gujarat 3%
Jammu & Kashmir 7%
Jharkhand 2%
Karnataka 4%
Madhya Pradesh 1%
Odisha 15%
Maharashtra 12%
Nagaland 1%
Mizoram 1%
10
Top Work Orders – Status Update
Package
Purvanchal Expressway Package 1
Purvanchal Expressway Package 2
Nagpur - Mumbai Expressway
Jammu Ring Road
Angul - Sambalpur Road work
Bihar Road (Patna - Gaya)
Sultanpur - Varanasi Package 1
Sultanpur - Varanasi Package 2
Location
Eastern UP
Eastern UP
Shiridi
Jammu
Angul, Odisha
Patna, Bihar
Varanasi, UP
Varanasi, UP
GHAGHRA BRIDGE TO VARANASI Package 3
Varanasi, UP
GHAGHRA BRIDGE TO VARANASI Package 2
Varanasi, UP
Cuttack - Angul PKG 1
Cuttack - Angul PKG 2
Cuttak
Cuttak
GPL Contract Value
GPL Balance work as on 01.04.2019
1,483
1,276
1,312
1,339
1,255
971
986
806
785
741
583
529
1,430
1,219
1,304
1,183
965
617
436
342
353
235
522
467
All amounts in INR Cr
Mobilised on Site
Revenue Booking Start
Completion Date
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Q4 19
Q4 19
Q4 19 , marginal booking
Q1 19
Q3 18
Q4 17
Q3 17
Q3 17
Q3 17
Q3 17
Q3 19
Q3 19
Q3 22
Q3 22
Q2 22
Q2 23
Q3 22
Q3 22
Q3 20
Q3 20
Q3 20
Q3 20
Q3 22
Q3 22
11
Top Work Orders – Status Update
Package
Hyderabad Elevated Corridor
Rajamunda - Barkote
Dimapur - Kohima Package 3
Hyderabad
Barkote, Orissa
Kempwad Lift Irrigation Scheme (Rs.1363.49 Cr.)
Karnataka
Chintalapudi PKG 1
Chintalapudi PKG 2
PLIS Package 18 (MEIL - HES JV)
Kaleswaram Project (Rs.1482.75 Cr.)
CIDCO Package 3
Iqubalgarh to Vadodara : 4744
TOP WORK ORDERS
PROPORTION OF TOTAL ORDER BOOK
Pattisema, AP
Jangannagudem AP
Jadcherla
Siddipeta
Navi Mumbai
Vadodara - Gujarat
Location
GPL Contract Value
GPL Balance work as on 01.04.2019
Mobilised on Site
Revenue Booking Start
Completion Date
All amounts in INR Cr
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Q4 19, Marginal booking
Q1 20, Work started
Q4 16
Q2 18
Q3 19
Q3 19
Q2 21
Q1 21
Q2 20
Q4 20
Q2 21
Q2 21
Awaiting Appointed Date
Expecting Q3 22
Q2 20, Awaiting Appoint Date
Expecting Q4 22
Q2 18
Q4 18
Q2 20
Q1 22
425
394
340
990
989
683
700
600
481
425
413
394
187
642
784
516
700
600
101
390
18,093
13,800
84.5%
12
Key Investment Highlights
Strong presence in high growth construction sector
Healthy and diversified pure EPC un-executed order book with good revenue growth visibility
Highly efficient operations with strong execution capabilities
Balance-sheet improvement on track for industry leading metrics in next 3 years
Significant value unlocking through business restructuring
13
Digital Project Management Roll-out at GPL
End-to-end Digital Project Management
Weigh-bridges
Plants
Crushers
Dump Trucks
Heavy Machinery
• Reconciliation of Work Done vs. Costs
(Material and Machinery usage)
• Automated reports for easy monitoring
Material Tracking
Machinery Tracking
and management
IoT Plant Unit
IoT Vehicle Unit
• Custom notifications for smooth coordinating and communication
• Benefits to all departments
Project Reporting
Web / Mobile Apps
Insights
Angul Project – Case Study
167 Vehicles & Machines
6 Weigh bridges
5 Concrete Plants
162 Daily Project users
115 Downtime Logs
1,405 Equipment Requests
6,263 Concrete Requests
18,456
Work reports submitted
58,751
Material transactions
74,713
Machine hours tracked
1,70,983
Cubic meters of concrete produced & tracked
9,05,823
Kms travelled by vehicles & equipment
68,11,476
Liters of Diesel tracked
16
Insights, Reports & Notifications
Benefits of Digital Project Mgmt
Accounts
P&M
Purchase
PMC
Legal
Tender
•
•
•
Validate Hired Equipment Bills Debit Notes on diesel in real time Tentative expenses for repairs
• • • •
Validate Vendor payments Bulk Material Reconciliation and Stock Generate P&L immediately at the end of month Subcontractor debit notes for fuel issued and equipment used
•
• • •
•
Track Variation from Tender BOQ Qtys vs. Progress Validate Invoice vs. RFI Qtys Actual Work Done Vs Invoice raised Reconciliation of Concrete produced Vs Reported Subcontractor Bill creation made easy with detailed backup
IOT on Vehicle
Downtime logger
Equipment Request
IOT on Weighbridge
IOT on Plants
Fuel Logger
DPR
RFI
Equipment Monitoring
Material Monitoring
Progress Monitoring
18
Benefits of Digital Project Mgmt
Accounts
P&M
Purchase
PMC
Legal
Tender
•
Improves Equipment Utilization& Availability %
• Resource allocation between Projects • Monitor Maintenance Schedule to
increase performance
• Monitor Fuel filling rate to maintain
working capital Tentative spare requirement & cost
• • Validate Weighbridge Calibration • Real time information on Hired assets
Equipment Productivity
• • Asset Turnover Ratio in real time • Equipment Usage vs. work completed
IOT on Vehicle
Downtime logger
Equipment Request
IOT on Weighbridge
IOT on Plants
Fuel Logger
DPR
RFI
Equipment Monitoring
Material Monitoring
Progress Monitoring
19
Benefits of Digital Project Mgmt
Accounts
P&M
Purchase
PMC
Legal
Tender
• Compare Equipment performance
of different manufacturers
• Real time stock details • Monitor Fuel filling rate • Monitor Realtime receipt of material at site • Material allocation across projects • Weighbridge calibration anomalies protect from
vendor invoice qty discrepancies
•
Schedule procurement of long lead items based on progress
IOT on Vehicle
Downtime logger
Equipment Request
IOT on Weighbridge
IOT on Plants
Fuel Logger
DPR
RFI
Equipment Monitoring
Material Monitoring
Progress Monitoring
20
Benefits of Digital Project Mgmt
Accounts
P&M
Purchase
PMC
Legal
Tender
•
Equipment Utilization
• Reconciliation of Concrete, Bitumen, GSB,WMM w.r.t to Progress report
Instant MIS reports Track Variation from Tender BOQ
• Monitor progress vs. Schedule • • • Asking rate for work execution • • • Work done Vs Invoice
Electronic documentation of RFI Equipment Productivity
IOT on Vehicle
Downtime logger
Equipment Request
IOT on Weighbridge
IOT on Plants
Fuel Logger
DPR
RFI
Equipment Monitoring
Material Monitoring
Progress Monitoring
21
Benefits of Digital Project Mgmt
Accounts
P&M
Purchase
PMC
Legal
Tender
• Digital Backup for Claiming Idle charges
of equipment
• Backup for periodical
material receipts to claim Price Escalation
• Maintain Evidence of RoW issues • • Claim new Items not included in Tender
Track delays due to unforeseen conditions
Scope
IOT on Vehicle
Downtime logger
Equipment Request
IOT on Weighbridge
IOT on Plants
Fuel Logger
DPR
RFI
Equipment Monitoring
Material Monitoring
Progress Monitoring
22
Benefits of Digital Project Mgmt
Accounts
P&M
Purchase
PMC
Legal
Tender
• Compare Equipment productivities in different geographical and climatic conditions
• Deriving average Fuel norms of
•
equipment’s based on type of work Fuel Mileage can be considered separately for Loaded and empty trips
• Compare actual costs and inputs Tender vs. Actuals
IOT on Vehicle
Downtime logger
Equipment Request
IOT on Weighbridge
IOT on Plants
Fuel Logger
DPR
RFI
Equipment Monitoring
Material Monitoring
Progress Monitoring
23
PMC @ HQ
PMC Project Coordinator-1
Project-1
Project Coordinator-2
Project Coordinator-3
PMC Site Representative
Project-2
Project-3
Equipment Management
Material Management
Operation Management
Progress Monitoring
Attaching & Detaching Asset
Fuel logger
Material Request
Progress DPR
Own-P&M H.O Hire- P&M, Site Through ERP
Tagging IOT Device
Own- P&M, H.O Hire- P&M, Site
Device Maintenance
P&M Site, Einsite team
Store In charge
Quality In-charge
Planning In-charge
Weighbridge Operation
Equipment Request
Plant DPR
Store In charge
Construction In- charge
Plant In-charge
Concrete Production
Request for Inspection
Quality Incharge
Construction In-charge & Planning Incharge
24
Angul Project: Milestones
▪ Based on Tare Weight Anomalies found, Calibration at 2 Weighbridges is corrected ▪ Equipment Odometer which are not working highlighted and were repaired ▪ Qtys used in Diversion work and Indirect works are recorded ▪ Realtime concrete production information reduced communication issues ▪ Increased transparency in operations ▪ Concrete production against BOQ is recorded with Material Request ▪ Progress details at finger tips ▪ Found Scope variation Earthwork BOQ’s ▪ Miscellaneous categories in Fuel issues are restricted to 4 to monitor effectively
Implemented DPR Module with Sophisticated work codes
At Weighbridge replaced PC with Embedded IOT device
Implemented
o
o
o
o
Fuel Logger Equip Req Downtime logger RFI Module
▪
Schwing Stetter B/P Telemetry Integration
▪ VMU Upgraded to have backlog & Inertial data ▪ Devices on Hired Equipment’s
Integration of GPL legacy ERP with EINSITE o Workorders o Material Codes
Fuel logs
o o Weighbridge logs o DPR Details
▪ Replaced Paper
reporting ▪ Instant reports ▪ Transparency in Operations ▪ Real Time Monitoring ▪ Insights ▪ Alerts
25
Appendix
Robust Upcoming Bid Pipeline
Significant Traction in NHAI Ordering
Significant NHAI Bid Pipeline of INR c.800 Bn
2,222 km
Highway Projects Awarded in FY2019
HAM, 440
3,400 km
EPC, 360
Highway Projects constructed in FY2019
Highway Construction km/day
16
5
11 5
12
4
17
5
23
7
27
8
30
9
FY13
FY14
FY15
FY16
FY17
FY18
FY19
Morth km/day
NHAI km/day
Awards Coming in GPL’s Sectoral and Geographical Strongholds
Andhra Pradesh, 4%
Telangana, 3%
Others, 15%
Rajasthan, 12%
Maharashtra, 17%
Kerala, 5%
Gayatri Strongholds
Uttar Pradesh, 16%
Delhi, 4%
Gujarat, 14%
Haryana, 5%
Karnataka, 6%
NHAI awards bid pipeline at 6,500 km in FY20 vs 2,222
km awarded in FY2019
Highway projects completed by NHAI target at 9 km/day
in FY2019, vs 8 km/day in FY2018
Source: NHAI; Industry Reports
27
Strategy – Focusing on ‘Asset Light’ EPC segment
Asset light EPC model o Pure EPC company with no asset-heavy
BOT or HAM project work.
o Diversified
across
geographies
and
practice areas o Deleveraging
and monetizing non-core assets to improve visible Return on Capital
balance-sheet
o Focused on cash flow generation
Explore new opportunities in EPC o Further enhance engineering capabilities in order to pursue new EPC contracts
o Enter
specialized
sectors with
low
competition and high margins
o Opportunity
underground includes mining, water supply, lift-irrigation, high speed railways, urban infrastructure, pre- fab buildings etc
28
Grow presence in core EPC segments o Actively bid for quality projects in core irrigation,
roads,
areas of expertise- industrials
o Maintain a healthy book-to-bill ratio o Adhere to geographical cluster approach while bidding for projects to optimize management & equipment utilization and maximize profitability
Focus on driving operational performance & execution efficiency o Integrate best practices from different sectors to improve performance and project execution
o Utilize advanced technologies, designs, engineering and project management tools in order to increase productivity o Strengthen IT systems and other internal processes to reduce manual intervention
28
Spotlight on Asset-Light Model
2012-2015 : GPL numbers depressed due to asset
investments
2016 onwards: Business restructuring and Shift towards
Asset-Light model
Core Construction Services business is a high ROCE business;
At the bottom of cycle generated 18.2%
In line with the Industry practice, Free cash flow from Core
Construction activities was used for funding asset acquisition prior to 2016
Historical ROE and ROCE
ROCE - Core Construction Business
20.2% 19.1%
ROE
ROCE
12.7% 10.8%
13.7%
11.2%
12.5%
7.4%
8.3%
3.3%
10.8% 8.9%
9.0% 7.7%
20.2%
17.3% 15.2% 16.8%
33.6%
23.8% 25.1%
27.2% 27.5%
25.3%
20.2%
18.4%
18.2%
2012
2011 * Core construction business ROCE calculated after deducting investment in power
2015
2014
2013
2016
2018
2017
and road BOT assets from the total capital employed
29
2019
2011
2012
2013
2014
2015
2016
2017
2018
2019
29
Strong Execution Capabilities & a Diverse Range of Projects
Projects executed in last 5 years
Segment
Roads Industrial Irrigation Site leveling Dams & reservoirs Railways Total
No. of projects executed
Value of contract (INR Mn)
12 17 10 2 2 1 44
64,587 23,535 10,727 2,382 448 3,845 105,524
Strong BG limits key competitive advantage Company’s existing BG limit provides additional o Company has existing BG limit of INR 44 bn advantage to expand order book & scope for further o Existing BG limit provides ability to maintain order book of growth
over INR 200 bn
o Ability to further increase the BG limits
Roads: Peak executed capacity at ~1,000 kms for the year 2007
S M K E N A L
1200
1000
800
720
600
400
200
0
991
680
553
364
362
232
210
827
652
498
1999 2000 2001 2003 2005 2006 2007 2009 2011 2013 2016
Required Lane Kilometers to be executed (as order)
YEARS
~700 Lane Kms
Capacity to execute
1,100 – 1,200 Lane kms/ year
30
Balance Sheet
All figures in INR Million
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ASSETS (INR Mn)FY19FY18FY17EQUITY AND LIABILITIES (INR Mn)FY19FY18FY17EQUITYNON-CURRENT ASSETS(a) Equity Share capital 374 374 355 (a) Property Plant & Equipment 3,763 3,350 3,093 (b) Other Equity 12,922 10,856 7,056 (b) Capital Work in Progress 5 - 241 (c) Financial AssetsLIABILITIES(i) Investments 10,088 10,169 10,561 Non-Current Liabilities(ii) Loans 3,474 3,563 5,102 (a) Financial Liabilities(i) Borrowings 7,121 8,032 9,678 CURRENT ASSETS(ii) Other Financial liabilities 14,962 10,332 9,239 (a) Inventories 3,574 2,930 3,601 (b) Provisions 48 52 98 (b) Financial Assets(c) Deferred Tax Liabilities (net) 21 71 232 (i) Trade receivables 13,930 11,337 8,504 (ii) Cash and cash equivalents 1,265 569 1,970 Current Liabilities(iii) Other Bank Balances 2,002 1,857 (a) Financial Liabilities(iv) Loans 1,887 1,703 1,759 (i) Borrowings 9,499 9,591 9,596 (c) Current Tax Assets (Net) 1,447 1,385 407 (ii) Trade payables 10,508 8,043 6,608 (d) Other Current Assets 17,206 12,998 9,543 (iii) Other Financial Liabilities 2,293 2,042 1,489 (h) Other Current Liabilities 858 446 431 (c) Provisions 34 21 1 TOTAL 58,641 49,861 44,781 TOTAL 58,641 49,861 44,781 Board of Directors
T. Indira Subbarami Reddy
Promoter and Non-Executive Chairperson, over 25 years of experience in the construction industry
T. V. Sandeep Kumar Reddy
Promoter and Managing Director, 20+ years of construction experience
J Brij Mohan Reddy
Executive Vice Chairman, Over 49 years of experience in Heavy Engineering Construction and the harbour engineering industries
Mr Birendra Kumar
Non-Executive and Nominee Director (Bank of Baroda)
Mr. J.N.Karamchetti,
Mr. Ch. Hari Vittal Rao
Non-Executive and Independent Director, rich experience in the field of engineering and steel
Non-Executive and Independent Director, 49 years of experience as a banker and was employed with Bank of Baroda and Naandi Foundation in the past
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Management Team - HQ
T Sandeep Reddy ▪ Managing Director ▪ Masters in Construction Engineering & Management
from University of Michigan, USA ▪ 20+ years of construction experience
J Brij Mohan Reddy ▪ Executive Vice Chairman ▪ Graduate in Industrial Engineering from Berkeley
University, USA
▪ 50 years of experience in construction and
engineering
P Sreedhar Babu ▪ Chief Finance Officer ▪ Fellow Member of Institute of Chartered
Accountants of India
▪ 18+ years of experience in finance and banking
D Sitaram ▪ President, Business Development ▪ In-charge of evaluating new business units,
identifying suitable Joint-Venture partners, and attending review meetings with clients and regulatory bodies
T Rajiv Reddy ▪ Vice President ▪ In-charge of overall Project Controls & Monitoring,
and head of Mining business unit
▪ Graduate in Industrial Engineering from University of
Illinois, Urbana-Champaign, USA
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Management Team - Projects
K Sesha Reddy ▪ Senior Vice President, Transportation ▪ In-charge of project monitoring and controls ▪ Previously a Project Head at L&T ▪ Masters in Construction management from Birla
Institute of Technology
▪ 32+ years of experience in infrastructure
G Venkateshwar Rao ▪ Senior Vice President, Irrigation ▪ Oversees entire irrigation business unit ▪ Graduate in Civil Engineering ▪ 20+ years of experience in irrigation EPC
MV Suresh ▪ Vice President, Roads ▪ Oversees road construction projects ▪ Graduate in Civil Engineering ▪ 20+ years of experience in EPC
CH Ramakrishna Rao ▪ Senior Vice President, Roads ▪ Oversees road construction projects ▪ Masters in Construction management from Birla
Institute of Technology
▪ 20+ years of experience in infrastructure
Sudhakar Lolla ▪ Vice President, Mining ▪ Oversees underground mining projects ▪ Masters in Technology and Mining from Indian
School of Mines
▪ 18+ years of experience in mining
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Contact Details
V V Chandra Sekhar Gayatri Projects Limited Tel: +91 40 23310330/23314284/4296 Email: vvcs@gayatri.co.in
Sheetal Khanduja Go India Advisors +91 9769364166 sheetal@goindiaadvisors.com
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