RKEC Projects Limited has informed the Exchange about Investor Presentation
BUILD A BETTER TOMORROW RKEC PROJECTS LIMITED
MARINE WORKS | BRIDGES | ROADS | BUILDINGS
Investor Presentation F.Y. 2019-20
Website: www.rkecprojects.com DELIVERING EXCELLENCE PROGRESSING EXPONENTIALLY
DELIVERING EXCELLENCE IN BUILDING NATION’S INFRASTRUCTURE
!"
Offshore Berth at Mumbai Port Trust
Terminal at Kochi Port Trust
Jetty with loading facility
MUMBAI
KOCHI
VIZAG
Offshore Berth , Adani Port
Offshore Berth, Essar Projects
Product Berth, Essar Projects
Fishing Harbour ,Machilipatnam Port
H A Z I R A
J A M N A G A R
V A D I N A R
V I Z A G
RKEC Projects Limited - Investor Presentation F.Y 2019-20 RKEC Projects Limited - Investor Presentation F.Y 2019-20
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DELIVERING EXCELLENCE IN BUILDING NATION’S INFRASTRUCTURE
Military Station, Imphal
MANI PU R
Flyover on NH45A
P UDUCHERRY
Bridge on River Beas
Bridge, East Coast Railways
PUNJAB
BH UBANESWAR
Major Bridge 382, East Coast
Bridge on River Godavari
BHU BANE SWA R
NA NDED
T Girder Bridge
VIZAG
Rural Electrification Work
PRATAP GARH
RKEC Projects Limited - Investor Presentation F.Y 2019-20 RKEC Projects Limited - Investor Presentation F.Y 2019-20
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PROGRESSING EXPONENTIALLY WITH STRONG ORDER BOOK As at the end of Oct.’20 our total order book stood at Rs.1,500 Crores of which the unexecuted work stood at Rs. 931.77 crores which is expected to be executed in the next 12-36 months.
CURRENT ORDER BOOK
SEGMENTS
Marine Works
Road & Bridges
Building & Infrastructure
Power
Total
NO. OF PROJECTS
CONTRACT VALUE (Rs. Crores )
VALUE OF WORK REMAINING (Rs. Crores)
06
01
07
01
15
555.69
341.38
521.20
307.94
302.44
247.02
120.36
35.43
1,499.69
931.77
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PROGRESSING EXPONENTIALLY WITH STRONG ORDER BOOK The robust order book of Rs. 931.77 Crores as on October 31, 2020 is expected to give a sustained revenue visibility for the next 2-3 years.
Growth in order book (YOY)
931.77
783
776.72
478.77
362.53
247.23
1000
900
800
700
600
500
400
300
200
100
0
FY2016
FY2017
FY2018
FY2019
FY2020
Oct. 2020
RKEC Projects Limited - Investor Presentation F.Y 2019-20 RKEC Projects Limited - Investor Presentation F.Y 2019-20
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PROGRESSING EXPONENTIALLY WITH STRONG ORDER BOOK WE HAVE EXECUTED A TOTAL OF 94 MAJOR INFRASTRUCTURE PROJECTS ACROSS 14 INDIAN STATES AND ARE CURRENTLY EXECUTING 15 PROJECTS HAVING CONTRACTUAL VALUE OF OVER RS. 1,500 CRORES.
PUNJAB
HARYANA
RAJASTHAN
UTTAR PRADESH
GUJARAT
BIHAR
JHARKHAND
MANIPUR
WEST BENGAL
IN LAST 5 YEARS, WE HAVE EXECUTED WORK ORDERS AMOUNTING TO RS. 635 CRORES
MAHARASHTRA
ODISHA
TELANGANA
KARNATAKA
ANDHRA PRADESH
KELALA
TAMIL NADU
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TIMELINE
Key Milestones/Events
35 YEARS OF EXCELLENCE
01
03
05
Awarded construction of Coal Berth Project at Salaya Port, Gujarat for Essar Projects (India) Limited, worth over Rs. 100 crores
Started construction of Jetty at Naval Dockyard, Visakhaptnam for Indian Navy, worth over Rs. 62 crores
BEG INNI NG Set up as Proprietorship Firm under the stewardship of Shri G Radhakrishna
Started Executing onshore and infrastructure projects
Merged business of Proprietorship Firm with Company
Started Executing Offshore works
0 2
Incorporation of the company
04
06
Awarded bridge construction project in Nanded, Maharasthra under JNNURM Scheme, worth Rs. 60 crores
Awarded construction of Offshore Berth Project at Pir Pau, Mumbai for Mumbai Port Trust, worth over Rs. 130 crores
0606
RKEC Projects Limited - Investor Presentation F.Y 2019-20 RKEC Projects Limited - Investor Presentation F.Y 2019-20
0203040605 TIMELINE
Key Milestones/Events
35 YEARS OF EXCELLENCE
07
09
1 1
Started construction of Jetty on the river Hooghly at Haldia Dock Complex, Kolkata, worth over Rs. 75 crores
Started construction of berth trestle at Honnavar, Karnataka, worth over Rs. 75 crores
Awarded Rural Electrification project at Pratapgarh, U.P. under RGGVY Plan ,worth over Rs. 120 crores
Started construction of jetty with Loading facility at Visakhapatnam port, worth over Rs 150 crores
0 8
Got Listed on NSE Emerge Platform.
1 0
Awarded construction of Coastal Berth Project at Jawaharlal Nehru Port ,Mumbai, worth over Rs 140 Crores
Awarded Construction of Multi-User Liquid Terminal Project at Puthuvypeen, Cochin Port Trust on EPC Contract Basis worth over Rs. 217 crores
Awarded construction project of New 4 Lane Bridge over River Ganga of Farakka Barrage (5.76 Kms) in the state of West Bengal under JV for over Rs. 520 crores
12
Revenue for FY 20 crossed Rs. 300 crores and PAT over Rs. 25 crores
Migrated to the Main Board of NSE
Started project of building Fire Fighting facilities at Haldia Dock Complex, Haldia, West Bengal in EPC mode, worth over Rs. 130 crores
Commenced construction work of N1-N3 Jetty at Visakhapatnam.
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070809101211 BUILDING EXCELLENCE IN CLIENT RELATIONSHIPS Over the past three decades, we have worked with several State and Central Government Organizations as well as large private enterprises which has facilitated us to build successful, healthy and long-term relations with them. Some of our top notch clients includes:
“ We intend to emerge as the preferred and reliable partner for our clients when it comes to
infrastructure development. Our aim is to successfully deliver high quality projects on time and
contribute towards the advancement of the economy through rapid development of
infrastructure.”
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RKEC – AT A GLANCE
Years of Experience
Engineers
Total Employees
Projects Completed
Current order book
Projects in hand
CRORES Total Revenue (F.Y. 2019-20)
CRORES Total PAT (F.Y. 2019-20)
CRORES Market Capitalization
(as on 30-09-20)
PE Multiple
(as on 30-09-20)
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+35+125+465+94+14993.36306.9325.81 +86 +15 WE ARE ONE OF THE FASTEST GROWING LISTED COMPANY IN THE INFRASTRUCTURE SEGMENT
S. No.
Companies
CAGR Growth in terms of Revenue (in last 4 F.Y.)
CAGR Growth in terms of PAT (in last 4 F.Y.)
1
2
3
4
5
6
7
8
9
10
11
RKEC Projects Ltd.
KNR Constructions Ltd.
PNC Infratech Ltd.
Gayatri Projects Ltd.
J Kumar Infraproject Ltd.
Ashoka Buildcon Ltd.
Larsen & Toubro Ltd.
IRB Infrastructure Developers Ltd.
NCC Ltd.
ITD Cementation India Ltd.
Simplex Infrastructures Ltd.
28.25%
26.12%
24.63%
20.74%
20.42%
18.48%
9.55%
8.26%
-1.52%
-1.72%
-8.73%
66.73%
19.29%
24.46%
-
15.50%
28.70%
20.95%
3.19%
29.83%
-
-
Note - CAGR is based on the consolidated financial results obtained from BSE website from F.Y. 2015-16 to 2019-20 of respective Companies.
The above mentioned listed peers should not be construed as exhaustive list.
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OUR DIVERSIFIED CORE BUSINESS VERTICALS
We have structured our business according to sector-specific verticals that makes us a complete EPC Service provider. Our diversified business portfolio enables us to cater to the infrastructure requirements of different sectors as well as strengthens our expertise and order book .
THE DIFFERENT VERTICALS IN OUR CORE BUSINESS ARE:-
SECTORAL CONTRIBUTION IN THE ORDER BOOK (AS ON OCTOBER 31, 2020)
Marine Works (Offshore space)
Transportation (Roads and Bridges)
36.6%
33.1%
26.5%
3.8%
Buildings & Infrastructure
Power
RKEC Projects Limited - Investor Presentation F.Y 2019-20 RKEC Projects Limited - Investor Presentation F.Y 2019-20
Marine Works
Transportation
Buildings & Infrastructure
Power
1111
DELIVERING EXCELLENCE IN MARINE ENGINEERING
Marine structures are considered to be among the most challenging in construction engineering. We have developed
expertise over a wide ranging service capability in the offshore space which include construction of Jetties, Berths,
Wharfs and water intake project works for our clients which are mainly Government Enterprises.
Our investments in capital equipments including ownership of world class pipe laying barage and piling rigs
allow us to meet the project deadlines and lead our team with better productivity and efficiency.
Our Ongoing notable offshore projects includes:-
Coastal Berth at JN Port, Mumbai
Naval Jetty, Vishakhapatnam
Development of Berth & trestles
Client: JNPT Port, Mumbai Work Value: Rs. 143.33 Crores Target for Completion: Feb 2021
Client: DGNP Work Value: Rs. 141.32 Crores
Client: Honnavar Port Private Limited Work Value: Rs. 77.24 Crores Target for Completion: Nov. 2022
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DELIVERING EXCELLENCE IN BRIDGES & ROAD PROJECTS
India has the second largest road network in the world, spanning a total of 5.89 Mn kms. In the past few years, we have been successful in
executing construction of major bridge projects including railway bridge at Delang-Puri Section, Odisha ; Bridge on river Beas, Punjab ; Bridge
at Naval Dock Yard, Visakhapatnam , a major bridge on Tuni-Dharmavaram section, Andhra Pradesh and Flyover on NH-14, in Puducherry. In
Dec.’ 18, we bagged a major work order of Rs. 520 crores for construction of 4 lane bridge over Ganga river (Farakka Barriage), under JV, which
is expected to be completed by Dec. 2021
Four Lane Bridge over River Ganga down stream of Farakka Barriage
CLIENT NHAI, West Bengal
WORK VALUE Rs. 520 Crores
TARGET FOR COMPLETION Dec. 2021
Progress of work is ahead of schedule.
RKEC Projects Limited - Investor Presentation F.Y 2019-20
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DELIVERING EXCELLENCE IN BUILDINGS & INFRASTRUCTURE
Infrastructure sector is a key driver for the Indian economy. The sector is highly responsible for propelling India’s overall development and enjoys
intense focus from Government for initiating policies that would ensure time-bound creation of world class infrastructure in the country.
Some of our distinguished completed projects in this vertical includes Military Station, Leimakhong, Manipur ; Overhauling facility building and
building Complex for Indian Navy, Visakhapatnam.
Our Ongoing notable building projects includes:-
Fire fighting facility and Barge Jetty at Haldia, West Bengal
Warehouse for Indian Navy, Vishakhapatnam
Indoor Sports Arena, Vishakhapatnam
Client: Shyama Prasad Mookherjee Port Work Value: Rs. 129.29 Crores Target for Completion: July 2022
Client: MES Work Value: Rs. 36.91 Crores Target for Completion: Jan. 2022
Client: GVMC Work Value: Rs. 19.9 Crores Target for Completion: Mar. 2021
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STEPPING IN TO DELIVER EXCELLENCE IN POWER TRANSMISSION
Sustained economic growth continues to drive electricity demand in India. The
Government of India’s focus on attaining ‘Power for all’ has accelerated
capacity addition in the country.
In 2015, we commenced Rural Electrification for 2085 Majras with 46th BPL
connections, in Purvanchal, Pratapgarh district, Uttar Pradesh under Rajiv
Gandhi Grameen Vidyutikaran Yojna (RGGVY) - l2th Plan .
Client – Purvanchal Vidyut Vitran Nigam Limited, Varanasi Contract Value – Rs. 120.36 crores Expected completion date – Dec. 31, 2020 Progress of work- 92%
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+86 STRONG IN-HOUSE CAPABILITIES AND PROJECT EXECUTION TEAM Our fleet of major equipment
Jackup Barge
Casagrade B250
Crane 100 Mt
Hydraulic Piling Rig
Over the years, we have developed in-house design and engineering capabilities. We also have a large fleet of sophisticated construction equipment,
that allows us to provide end-to-end solutions for our projects. We have a well-qualified engineering and design team of 125 personnel possessing skills
in various fields, including civil, structural, electrical, mechanical and instrumentation. Our in-house design and engineering team gives us control of the
entire process of a project.
RKEC Projects Limited - Investor Presentation F.Y 2019-20 RKEC Projects Limited - Investor Presentation F.Y 2019-20
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GROWING EXPONENTIALLY WITH STRONG BALANCE SHEET Net worth (Rs. IN Crores)
Net worth ( Rs. in Crores)
94.27
114.3
74.73
31.07
36.21
BOOK VALUE PER SHARE
( in RS.)
48
39
32
31
19
2016
2017
2018
2019
2020
2016
2017
2018
2019
2020
CAGR Growth – 38.5%
DEBT TO EQUITY RATIO
0.61
0.53
0.48
0.21
0.01
2016
2017
2018
2019
2020
RKEC Projects Limited - Investor Presentation F.Y 2019-20 RKEC Projects Limited - Investor Presentation F.Y 2019-20
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SNAPSHOT OF OUR RISING PROFITABILITY
Revenue
306.92
240.77
227.1
200.12
113.44
2016
2017
2018
2019
2020
EBIDTA
54.63
41.63
39.48
31.39
14.08
2016
2017
2018
2019
2020
2020
2019
2018
2017
2016
Earning per share (Rs.)
10.76
9.35
9.4
6.69
3.46
Net profit
20.35
22.43
25.81
12.92
3.34
2016
2017
2018
2019
2020
RKEC Projects Limited - Investor Presentation F.Y 2019-20 RKEC Projects Limited - Investor Presentation F.Y 2019-20
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SNAPSHOT OF OUR RISING PROFITABILITY RATIOS
Net worth
EBITDA Margin
PAT Margin
9.88%
8.45%
8.41%
6.46%
12.41%
15.69% 16.40%
18.33% 17.81%
2.94%
2015-16
2016-17
2017-18
2018-19
2019-20
2015-16
2016-17
2017-18
2018-19
2019-20
Return on Net Worth
35.68%
27.23%
23.79% 22.58%
10.75%
2015-16
2016-17
2017-18
2018-19
2019-20
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CONSOLIDATED STATEMENT OF PROFIT & LOSS
Companies
Revenue from operations
Other Income
Total Revenue
Cost of materials consumed
Construction expenses
Changes in inventories of work-in-progress
Employee benefit expenses
Finance Costs
Depreciation
Other expenses
Total Expenses
Profit before exceptional item
Exceptional Item
Profit before taxes
Tax Expenses
Profit after taxes
F.Y. 2019-20
F.Y. 2018-19
Growth (YoY%)
(Rs. in Crores )
303.98
2.95
306.93
104.53
95.97
7.58
18.35
11.33
6.49
12.50
256.75
50.18
13.33
36.85
11.04
25.81
225.77
1.33
227.10
111.61
94.18
(46.35)
13.40
5.84
3.54
12.61
194.83
32.27
-
32.27
9.83
22.43
34.65%
121.14%
35.15%
-6.34%
1.90%
-116.35%
36.89%
93.88%
83.71%
-0.88%
31.78%
55.50%
14.19%
12.21%
15.06%
RKEC Projects Limited - Investor Presentation F.Y 2019-20 RKEC Projects Limited - Investor Presentation F.Y 2019-20
2020
CONSOLIDATED BALANCE SHEET - ASSETS
ASSETS
Non-Current Assets
Property, Plant and Equipments
Intangible assets
Capital Work in Progress
Deferred tax asset (net)
Non Current Investments
TOTAL
Current Assets
Inventories
Trade receivables
Cash and Bank Balances
Short-term Loans and advances
Other Current assets
TOTAL
GRAND TOTAL
F.Y. 2019-20
F.Y. 2018-19
(Rs. in Crores )
30.97
0.03
22.53
1.24
-
54.77
91.27
84.65
45.65
46.25
6.94
274.77
329.54
19.55
0.02
9.97
0.98
-
30.52
65.84
80.55
33.34
46.53
3.05
229.32
259.84
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CONSOLIDATED BALANCE SHEET – EQUITY & LIABILITIES
EQUITY & LIABILITIES
Shareholders’ funds
Share Capital
Reserves and Surplus
Non-Current Liabilities
Long Term borrowings
Long-term provision
Current Liabilities
Short-term borrowings
Trade Payables
Other Current liabilities
Short Term provisions
TOTAL
F.Y. 2019-20
F.Y. 2018-19
(Rs. in Crores )
23.99
90.31
114.30
3.92
0.71
4.63
61.45
97.19
42.34
9.63
210.61
329.54
23.99
50.74
94.27
1.51
0.62
1.36
46.65
76.23
38.81
1.74
163.44
259.84
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FUTURE OUTLOOK OF INFRASTRUCTURE SECTOR IN INDIA
ROBUST DEMAND
India is expected to become the third largest construction market globally by 2022.
ATTRACTIVE OPPORTUNITIES Only 24 per cent of the national highway network in India is four-lane, therefore there is an immense scope for improvement.
Favourable valuation and earnings outlook makes this sector an attractive opportunity.
INCREASING INVESTMENTS Large investment in infrastructure have provided momentum to overall PE/VC investment into India, which touched an alltime high value of US$ 14.5 billion during 2019.
Construction development sector and infrastructure activities sector received FDI inflow amounting to US$ 25.66 billion and US$ 16.84 billion, respectively, from April 2000 to March 2020.
POLICY SUPPORT
With initiatives like ‘Housing for All’ and ‘Smart Cities Mission’, the Government of India is working on reducing bottlenecks and impeding growth in the infrastructure sector. Rs 2.05 lakh crore (US$ 31.81 billion) will be invest- ed in the smart cities mission.
100 per cent FDI is permitted under the automatic route across various infrastructure sectors.
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RECOGNITION OF OUR EXCELLENCE
Awarded as “Excellence in generating Employment” by Visakhapatna Chamber of Commerce and Industry in 2018
Listing Ceremony of RKEC on NSE Emerge platform by Special invitee - Sri Sri Ravi Shankar ji
CLIENT TESTIMONIALS
OUR MAJOR ENLISTMENTS Super Special Class Civil Contractors with MES (Military Engineering Services), Indian Army
RKEC is a synonym of professionalism. Their team from the top level management to the lowest level supervisor all are thorough professionals for which is quite evident from the quality of work & other deliverables”
DGNP, Indian Navy, Visakhapatnam
“Resourceful firm having expertise in Marine work”
Special Class Civil Contractors with DGNP (Director General Naval Projects), Indian Navy
Mumbai Port Trust
CIV-IV Category Contractor with DRDO (Defence Research & Development Organization)
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OUR EXPERIENCED & VISIONARY LEADERS
Shri G Radhakrishna Chairman & Managing Director Exp. – 35 years
Smt. G Parvathi Devi
Shri G V Rammohan
Vice Admiral Satish Soni
Whole Time Director Exp. – 33 years
Whole Time Director Exp. – 12 years
PVSM, AVSM, NM (Retd.) Independent Director Exp - 44 years
Shri T Lucas Peter (IRS) (Retd.)
Brig. J K RaoVSM
Lt Gen P R Kumar
Independent Director Exp. – 37 years
Independent Director Exp. – 33 years
PVSM, AVSM, VSM (Retd.) Independent Director Exp. – 39 years
Dr. G Sita Ratnam
Non- Executive Director Exp - 10 years
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Changes in inventories of work-in-progress
Employee benefit expenses
Revenue from operations
Other Income
Total Revenue
Cost of materials consumed
Construction expenses
Finance Costs
Depreciation
Other expenses
Total Expenses
Exceptional Item
Profit before taxes
Tax Expenses
Profit after taxes
Profit before exceptional item
303.98
2.95
306.93
104.53
95.97
7.58
18.35
11.33
6.49
12.50
50.18
13.33
36.85
11.04
25.81
256.75
34.65%
121.14%
35.15%
-6.34%
1.90%
-116.35%
36.89%
93.88%
83.71%
-0.88%
31.78%
55.50%
14.19%
12.21%
15.06%
We strongly believe that growth should always be sustainable. At RKEC, we are determined to achieve sustainable growth by continuously achieving excellence in all spheres of our business functions, maintaining our track-record for the timely completion of projects, and efficiently adopting advanced technologies into our processes.
Disclaimer:- This presentation contains statements that contain “forward looking statements” including, but without limitation, statements relating to the implementation of strategic initiatives, and other statements relating RKEC Projects Limited future business developments and economic performance. While these forward looking statements indicate our assessment and future expectations concerning the development of our business, a number of risks, uncertainties and other unknown factors could cause actual developments and results to differ materially from our expectations. These factors include, but are not limited to, general market, macro-economic, governmental and regulatory trends, movements in currency exchange and interest rates, competitive pressures, technological developments, changes in the financial conditions of third parties dealing with us, legislative developments, and other key factors that could affect our business and financial performance. We undertakes no obligation to publicly revise any forward looking statements to reflect future / likely events or circumstances.
RKEC Projects Limited # 10-12-1, Rednam Alcazar, Rednam Gardens, Visakhapatnam -530002 Email: info@rkecprojects.com Website: www.rkecprojects.com Tel No.: 0891-2574517
CORPORATE ADVISOR
Hem Securities Ltd.
904, A Wing, Naman Midtown, Senapati Bapat Marg, Lower Parel, Mumbai -400013 Email: hemclient@hemsecurities.com Tel No.: 022-4906-0000 www.hemsecurities.com