JMCPROJECT

JMC PROJECTS (INDIA) LTD. (A Kalpataru Group Enterprise) February 13, 2021 Corporate Service Department The Listing Department BSE Limited National Stock Exchange of India Ltd. 25th Floor, Phiroze Jeejeebhoy Towers, Exchange Plaza, Plot no. C/1, G Block, Dalal Street, Bandra-Kurla Complex, Bandra (East), Mumbai - 400 001 Mumbai - 400 051 Scrip Code: 522263 ,T rading Symbol: JMCPROJECT Sub.: Investor's/ Analyst Presentation Dear Sir / Madam, In tenns of Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, please find enclosed herewith a copy of Investor's / Analyst Presentation on Unaudited Financial Results of the Company for the third quarter and nine months ended December 3 1, 2020. Please take the same on your record. Thanking You, Yours faithfully, For JMC Projects (India) Limited Sa~ al . Company Secretary & Compliance Officer Encl.: As Above Corporate Office : 6th Floor, Kalpataru Synergy, Opp. Grand Hyatt, Santacruz (E), Mumbai 400055. T +91-22-30051500 • F +91-22-30051555 • E mumbai@jmcprojects.com Registered Office: A 104, Shapath-4, Opp. Karnavati Club, S. G. Road, Ahmedabad 380 015 • T +91-79-68161500 • F +91-79-68161560 E jmcho@jmcprojects.com • W www.jmcprojects.com • CIN L45200GJ1986PLC008717 • GST 27AAACJ3814E1ZX BUILDING INFRASTRUCTURE FOR BETTER LIFE BJ KAC'f>A-TA~U ® POWER TRANSMISSION LIMITED .. ~ ~ ;,.~ ~1~ ~ -- ,t ·' ~ .. I r 1 ~;:~►-.: ~--~ •~( I ' ... ,► i~~t!~ - .. ~~ -.::..., ..i.i i!!;.', ,. .. ' ~ ■,.Ji""',~~~~~ -·~~~r-r.~~ ·'· ·•~~·~ ~ ,~~ '[ij/1~ , ............... ,~, _ !:'--~J1:.~·.. \' ~,,,, ~ -~=-- · r:•fi ~I::'~ Kalpataru Power Transmission Limited .•~-~ '-~. 1;◄ I ··--1~~l...:1 i1.=r. ~.,1. .......... Analyst Presentation – Q3 FY21 Results -- /(~~ '• --. ~\ p'-~~l j~-~~~~',~l j fi T . f~f-J,. ;J'~~· ~!' -~• 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 and financial results are forward looking statements. Forward looking statements are based on certain assumptions and expectations of future events. The company cannot guarantee that these assumptions and expectations are accurate or will be realised. The actual results, performance or achievements, could thus differ materially fromthoseprojectedin anysuchforwardlookingstatements. The information contained in thesematerials has not been independently verified. 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By participating in this presentationorbyacceptinganycopyoftheslides presented,youagreetobeboundbytheforegoinglimitations. 2 Key Updates  Strategic acquisition of Fasttel Engenharia Ltda. provides access to large power T&D market in Brazil  KPTL Consolidated PAT of Rs.475 Crore in 9MFY21, higher compared to PAT of Rs.390 Crore for full year FY20  JMC Standalone achieves highest quarterly revenue with 15% Y-o-Y growth in Q3FY21  Significant reduction in net debt levels Net Debt (Rs. Crores) Particulars Q4FY20 Q2FY21 Q3FY21 KPTL (Standalone) 969 818 612 JMC (Standalone) 735 810 661 KPTL (Consolidated) 3,458 3,442 2,343  Well Diversified Consolidated Order Book including L1 at all time high of Rs.31,382 Crores (KPTL = Rs.16,429 Crore and JMC = Rs.14,953 Crore) % of Order Book % of Consolidated Order Book (31 Dec 2020) Business (31 Dec 2020) Geography-wise T&D 28% Domestic 73% B&F 31% International 27% Urban Infra and Water 20% Client-wise Railways 12% Government / PSUs 75% Private 25% Oil & Gas 9% 3 Key Updates  Divestment of T&D Assets & Restructuring of Road BOOT Assets  Received proceeds on sale of Alipurduar Transmission Ltd. ATL) in Q3FY21  Achieved full commissioning of Kohima-Mariani Transmission Ltd. (KMTL); Awaiting approvals for transfer/ sale from relevant authorities; Expecting deal closure in Q4FY21 / Q1FY22  Restructuring of KEPL and WEPL Road Assets in final stages; Expected to be completed in Q4FY21 / Q1FY22  Performance of Subsidiaries  Significant improvement in SSL operations with revenue growth of 17% YoY, EBITDA margin of 35% and PAT of Rs.9 Crore for 9MFY21  Linjemontage revenue growth of over 100% in 9MFY21 and Order Book of Rs.1,097 Crore  Noteworthy improvement in toll revenue of Road BOOT SPVs; Per day average collection of all four SPVs at ~Rs.61 lakhs in Q3FY21, one of the best recorded in past several quarters (Cash level break-even at Operating level at Rs.59 lakhs per day) 4 KPTL - Key Financial Highlights - Standalone Kalpataru Power Transmission Ltd. (KPTL) - Standalone Y-o-Y Change Revenue EBIDTA PBT PBT PAT EBIDTA PBT PBT PAT 1 1 2 (Core) Before After 2 (Core) Before After Y Exceptional Exceptional Y Exceptional Exceptional Items Items Itemsl Items F F 3 M Q 1% 0.5% 13% 84% 88% 9 5% 7% 1% 31% 36% (RsCrores) (RsCrores) Q3FY21 1,993 207 174 328 257 9MFY21 5,334 565 462 630 485 Q3FY20 1,979 208 154 178 137 9MFY20 5,601 607 457 481 356  Core EBITDA margin at 10.4% in Q3FY21 and 10.6% in 9MFY21  Q3FY21 PBT* margin at 16.5% and PAT margin at 12.9%; 9MFY21 PBT* margin at 11.8% and PAT margin at 9.1%  Exceptional items for Q3FY21 includes gain on sale of AlipurduarTransmission Ltd. (ATL) and Jhajjar KT Transco Private Ltd. (JKTPL):  In ATL, the company has recognized the entire gain (net of expenses) of Rs.147 Crores, representing gain on transfer of 49% stake and fair value gain on the balance 51% stake  In JKTPL, the company has completed the sale of its entire stake and recognized a gain (net of expenses) of Rs.7 Crores  YTD FY21 order inflows at Rs.6,260 Crores largely driven from orders in T&D business; Received new orders of Rs.835 Crores in Q4FY21 till date; L1 of around Rs.3,100 Crores  Order Book Rs.13,329 Crores as on 31st Dec 2020 (Including Linjemontage Sweden) 5 * PBT After Exceptional Items KPTL - Financial Highlights (Standalone) – Q3FY21 & 9MFY21 (Amount in RsCrores) Q3 FY20 Q3 FY21 Growth Particulars 9M FY20 9M FY21 Growth 1,979 1,993 1% Revenue 5,601 5,334 -5% 208 207 -0.5% Core EBIDTA (excl. other income) 607 565 -7% 42 23 -45% Finance Cost 120 81 -33% 154 174 13% PBT Before Exception 457 462 1% 178 328 84% PBT After Exception 481 630 31% 137 257 88% PAT 356 485 36% 10.5% 10.4% -10 bps Core EBIDTA Margin 10.8% 10.6% -20 bps 7.8% 8.7% +90 bps PBT Margin Before Exception 8.2% 8.7% +50 bps 9.0% 16.5% +750 bps PBT Margin After Exception 8.6% 11.8% +320 bps 6.9% 12.9% +600 bps PAT Margin 6.4% 9.1% +270 bps Particulars Q3 FY20 Q2 FY21 Q3 FY21 y-o-y q-o-q Loan Funds 1,146 1,131 992 (154) (139) (+) Long Term borrowings 305 362 344 39 (18) (+) Short Term borrowings 680 628 503 (177) (125) (+) Current maturities of long term debt 161 141 146 (15) 5 (-) Cash, Bank & Other Deposits 150 313 380 230 67 Net Debt 996 818 612 (384) (205) 6 KPTL - Order Book Profile* – Q3FY21 Order Book 31 Dec 20: Rs 13,329 Crs Order Inflow YTDFY21: Rs 6,260 Crs 17% 25% 40% 17% 53% 18% 14% 17% T&D - International T&D - International T&D- Domestic Incl. Neighbouring Countries T&D- Domestic Incl. Neighbouring Countries Oil & Gas Oil & Gas Railways Railways Received Orders of Rs. 2,869 Crs in Q3FY21 and Rs.835 Crs in Q4FY21 till date; L1 of around Rs 3,100 Crs 7 * Includes Order Inflows and Order Book of Linjemontage(Sweden) JMC - Key Financial Highlights - Standalone JMC Projects Ltd. (JMC) - Standalone Y-o-Y Change Revenue EBIDTA PBT PAT Revenue EBIDTA PBT PAT 1 1 2 (Core) 2 (Core) Y Y F F 3 M Q 15% 7% 20% 34% 16% 36% 85% 90% 9 (RsCrores) (RsCrores) Q3FY21 1,066 96 39 26 9MFY21 2,340 196 22 11 Q3FY20 929 103 48 39 9MFY20 2,774 305 149 113  Achieved highest quarterly revenue in Q3FY21 with 15% Y-o-Y growth driven by better execution in B&F and Infrastructure businesses  Core EBITDA margin at 9.0% in Q3FY21 and 8.4% in 9MFY21  Profitability impacted in Q3FY21 and 9MFY21 due to lower sales and additional cost incurred for transportation & accommodation for labourduring COVID  Net Debt reduces to Rs.661 Crores in Dec-20 compared to Rs.735 Crores in Mar-20 due to better collections and efficient working capital management  YTD FY21 order inflows at Rs.7,484 Crores; Received new orders of Rs.760 Crores in Q4FY21 till date; L1 of around Rs.750 Crores  Order Book Rs.14,203 Crores as on 31st December 2020 8 JMC (Standalone) - Financial Highlights – Q3FY21 and 9MFY21 (Amount in RsCrores) Q3 FY20 Q3 FY21 Growth Particulars 9M FY20 9M FY21 Growth 929 1,066 15% Revenue 2,774 2,340 -16% 103 96 -7% Core EBIDTA (excl. other income) 305 196 -36% 31 27 -12% Finance Cost 91 86 -6% 48 39 -20% PBT 149 22 -85% 39 26 -34% PAT 113 11 -90% 11.1% 9.0% -210 bps Core EBIDTA Margin 11.0% 8.4% -260 bps 5.2% 3.7% -150 bps PBT Margin 5.4% 0.9% -440 bps 4.2% 2.4% -180 bps PAT Margin 4.1% 0.5% -360 bps Particulars Q3 FY20 Q2 FY21 Q3 FY21 y-o-y q-o-q Loan Funds 941 901 791 (150) (110) (+) Long Term borrowings 467 426 382 (86) (44) (+) Short Term borrowings 347 297 232 (116) (66) (+) Current maturities of long term debt 126 178 178 51 (1) (-) Cash, Bank & Other Deposits 74 91 130 56 40 Net Debt 867 810 661 (206) (158) 9 JMC - Order Book Profile – Q3FY21 Order Book 31 Dec 20: Rs 14,203 Crs Order Inflow YTDFY21: Rs 7,484 Crs 7% 4% 38% 39% 58% 51% 4% B&F Infrastructure Industrial B&F - Govt B&F - Private Industrial Infrastructure Received Orders of Rs.1,053 Crs in Q3FY21 and and Rs.760 Crs in Q4FY21 till date; L1 of around Rs.750 Crs 10 KPTL (Consolidated) - Financial Highlights – Q3FY21 and 9MFY21 (Amount in RsCrores) Q3 FY20 Q3 FY21 Growth Particulars 9M FY20 9M FY21 Growth 3,162 3,501 11% Revenue 9,149 8,863 -3% 384 383 -0.3% Core EBIDTA (excl. other income) 1,154 1,032 -11% 128 103 -20% Finance Cost 383 340 -11% 175 204 17% PBT Before Exception 556 452 -19% 172 410 138% PBT After Exception 553 662 20% 133 308 132% PAT 377 475 26% 12.1% 10.9% -120 bps Core EBIDTA Margin 12.6% 11.6% -100 bps 5.5% 5.8% +30 bps PBT Margin Before Exception 6.1% 5.1% -100 bps 5.4% 11.7% +630 bps PBT Margin After Exception 6.0% 7.5% +150 bps 4.2% 8.8% +460 bps PAT Margin 4.1% 5.4% +130 bps Particulars Q3 FY20 Q2 FY21 Q3 FY21 y-o-y q-o-q Gross Debt 4,034 3,959 2,895 (1,139) (1,064) Net Debt 3,680 3,442 2,343 (1,337) (1,099) Note: Exceptional item for Q3FY21 comprises of: (1) ATL: The company has recognized the entire gain (net of expenses) of Rs.202 Crores, representing gain on transfer of 49% stake and fair value gain on the balance 51% stake; (2) JKTPL: The company has completed the sale of its entire stake and recognized a gain (net of expenses) of Rs.4 Crores 11 JMC (Consolidated) - Financial Highlights – Q3FY21 and 9MFY21 (Amount in RsCrores) Q3 FY20 Q3 FY21 Growth Particulars 9M FY20 9M FY21 Growth 966 1,111 15% Revenue 2,890 2,452 -15% 126 120 -5% Core EBIDTA (excl. other income) 372 247 -34% 65 63 -3% Finance Cost 195 189 -3% 26 15 -41% PBT 85 (58) - 21 3 -87% PAT 56 (68) - 13.1% 10.8% -230 bps Core EBIDTA Margin 12.9% 10.1% -280 bps 2.7% 1.4% -130 bps PBT Margin 2.9% -2.4% - 2.2% 0.2% -190 bps PAT Margin 1.9% -2.8% - Particulars Q3 FY20 Q2 FY21 Q3 FY21 y-o-y q-o-q Gross Debt 1,814 1,796 1,673 (141) (124) Net Debt 1,737 1,672 1,530 (207) (142) 12 Break-up of Consolidated Financials – Q3FY21 and 9MFY21 (Amount in RsCrores) Q3 FY21 9M FY21 Developmental Developmental EPC Assets EPC Assets (BOOT/BOOM) (BOOT/BOOM) Particulars TOTAL TOTAL Others* Others* KPTL JMC T&D Roads KPTL JMC T&D Roads Revenue 1,993 1,066 25 45 372 3,501 5,334 2,340 129 112 948 8,863 Core EBIDTA 207 96 24 25 31 383 565 196 124 51 96 1,032 Finance Cost 23 27 13 36 4 103 81 86 56 103 14 340 PBT# 328 39 (0) (23) 66 410 630 22 18 (80) 72 662 PAT 257 26 (0) (23) 48 308 485 11 14 (79) 44 475 Core EBIDTA 10.4% 9.0% 96.0% 55.6% 8.7% 10.9% 10.6% 8.4% 96.1% 45.5% 10.1% 11.6% Margin PBT Margin 16.5% 3.7% - - 17.7% 11.7% 11.8% 0.9% 14.0% - 7.6% 7.5% PAT Margin 12.9% 2.4% - - 12.9% 8.8% 9.1% 0.5% 10.9% - 4.6% 5.4% # PBT After Exceptional Items 13 * Others include subsidiaries (including LinjemontageSweden), JVs and inter-company eliminations Order Book Profile – Consolidated – Q3FY21 (Amount in RsCrores) Movement of Consolidated Order Book Order Inflow YTDFY21: Rs 13,744 Crs (Excluding L1) 8% 2% 27,532 26,519 30% 24,918 24,832 25,359 24,934 21% 22,834 8% 31% T&D B&F Railways Civil Infra & Water Oil & Gas Industrial Q1FY20 Q2FY20 Q3FY20 Q4FY20 Q1FY21 Q2FY21 Q3FY21 Order Inflow Order Book – 31 Dec 2020 Q1FY21: Rs 3,935 Crs Domestic: 73% Q2FY21 : Rs 4,294 Crs International: 27% Q3FY21 : Rs.3,922 Crs Q4FY21 till date : Rs.1,593 Crs L1 in excess of Rs 3,850 Crs (KPTL = Rs 3,100 Crs and JMC = Rs 750 Crs) 14 * Includes Order Inflows and Order Book of Linjemontage(Sweden) Key Updates  Completed sale and transfer of Jhajjar KT Transco Private Limited (JKTPL) to India Grid Trust for an enterprise value of Rs.310 crore; Cash flows from sale received in Q2FY21  Achieved transfer of Alipurduar Transmission Limited (ATL) to Adani Transmission Limited for a total Transmission Enterprise Value (EV) of about Rs.1286 crore; Cash flows from sale received in Q3FY21 Assets  Fully commissioned Kohima-MarianiTransmission Limited (KMTL)* in Q3FY21; Deal in place with CLP India to sell KMTL and closure is expected in Q4FY21 / Q1FY22  Proceeds from sale of transmission assets to be utilized to reduce debt, capex and support future growth Linjemontage  Revenue of Rs.321 crore in Q3FY21 and Rs.818 crores in 9MFY21 (Sweden)  Order Book of Rs.1,097 crores as on 31 Dec 2020 Indore Real  Sold around 35% of units; Project in completion phase (5% of units sold in Q3FY21) Estate  Likely to be completely sold over the period of next 12 months * Subject to requisite approvals 15 SSL - Financial Highlights – Q3FY21 and 9MFY21 (Amount in RsCrores) Q3 FY20 Q3 FY21 Growth Particulars 9M FY20 9M FY21 Growth 28 37 31% Revenue 95 111 17% 7 9 19% Core EBIDTA (excl. other income) 31 39 24% 11 9 -25% Finance Cost 33 26 -19% (6) 1 - PBT (7) 9 - (6) 1 - PAT (8) 9 - 25.5% 23.2% -230 bps Core EBIDTA Margin 32.8% 35.0% +220 bps -22.4% 2.6% - PBT Margin -7.6% 7.9% - -21.8% 2.6% - PAT Margin -8.9% 7.9% - Particulars Q3 FY20 Q2 FY21 Q3 FY21 y-o-y q-o-q Loan Funds 464 369 353 (112) (17) (+) Long Term borrowings 391 309 295 (96) (14) (+) Short Term borrowings 19 17 9 (9) (8) (+) Current maturities of long term debt 55 43 48 (6) 5 (-) Cash, Bank & Other Deposits 6 16 6 (0) (10) Net Debt 459 354 347 (112) (7) 16 JMC - Update on Road BOT Assets – Q3FY21 Average Per Day Collections (Rs Lakhs) – JMC Share Kurukshetra BrijBhoomi Wainganga Vindhyachal Period Total Expressway PvtLtd.* Expressway PvtLtd. Expressway PvtLtd. Expressway PvtLtd. 14.1 8.8 14.9 17.4 55.2 Q1FY19 12.6 8.2 13.5 15.2 49.5 Q2FY19 13.1 8.9 14.7 19.4 56.1 Q3FY19 11.6 8.5 16.8 21.0 57.9 Q4FY19 Q1FY20 11.2 9.2 17.1 21.0 58.5 Q2FY20 10.0 7.6 15.0 15.0 47.5 Q3FY20 10.6 8.4 16.1 17.4 52.5 Q4FY20 10.6 9.0 17.3 16.5 53.4 Q1FY21 5.9 5.7 10.8 14.2 36.6 Q2FY21 10.1 8.9 17.4 16.0 52.4 Q3FY21 12.2 10.7 20.1 17.9 60.9 All Road BOT projects are operating on full length and full toll basis Per Day Revenue was Rs. 60.9 lakhs in Q3FY21 compared to Rs. 52.5 lakhs in Q3FY20 Total JMC investment in Road BOT Assets at the end of Dec-20 is Rs 821 Crores (FY21 Investment is Nil). Have availed moratorium for all the four assets. * JMC Share in the JV 17 Acquisition of Fasttel (Brazil)  Kalpataru Power Transmission Limited (KPTL) through its wholly owned subsidiary Kalpataru Power Do Brasil ParticipacoesLtda (Kalpataru Brazil) signed definitive agreements to acquire controlling stake of 51% in Fasttel Engenharia Ltda., Brazil (Fasttel) for around USD 8.80 Million  Out of total investment by Kalpataru Brazil, USD 4.70 Million will be paid for acquiring shares from existing shareholders and USD 4.10 Million will be infused into Fasttel for issuance of new equity shares to Kalpataru Brazil  Upon infusion of USD 4.10 Million as new equity, Fasttel will be Minimal Net Debt Company  Fasttel has achieved revenue growth of over 25% CAGR for last 5 years and has track record of consistent profitability  Kalpataru Brazil shall have option to buy additional 29% shares after 3 years  Transaction will be funded through KPTL’s internal accruals and expected to close by end of Q1FY22  Key Advantages for KPTL:  Brazil is potentially a very large market for power transmission and distribution –Annual opportunity of over USD 10 Billion for next 10 years  Fasttel will provide pre-qualifications for Brazil and larger Latin American Market  KPTL’s global procurement strength and India manufacturing base will be leveraged for efficient operations and to scale-up market penetration 18 Brief Overview of Fasttel (Brazil)  Fasttel was incorporated in 1988 and headquartered in Curitiba city of Parana State of Brazil; The company has footprints in more than 20 states across Brazil  The Company mainly operates into three main business areas, comprising of EPC of substation, transmission lines and power distribution services  The Company has built over 2,000 Kms of Transmission Line and over 50 substations for various voltage range up to 750 kV  Fasttel has achieved top Line growth of over 25% CAGR, EBITDA around 10% and ROI over 30% for past 5 years  Fasttel’s has order book of ~USD 95 Million as on date  The Company has experienced manpower of ~ 1000 engineers, staff and workmen capable of doing in-house Engineering, Procurement, Land Survey and Planning, Environment Clearances and Construction.  Fasttel’s customers include all major utilities and leading BOOT developers in Brazil CY2020 Particulars CY2018 CY2019 (Estimate) Gross Revenue (US$ Mn) 20.2 53.9 47.4 Adjusted EBITDA* (US$ Mn) 2.3 4.7 4.7 Adjusted EBITDA Margin* (%) 11.5% 8.8% 10.0% 19 * Includes EBITDA of EPC business only and excluding one-off transactions Thank You Contact Registered: Plot No. 101, Part-III, GIDC Estate, Sector -28, Gandhinagar-382028, Gujarat, India. Corporate Office: 7thFloor, Kalpataru Synergy, Opp. Grand Hyatt, Vakola, Santacruz (E), Mumbai 400055. India Phone: +91 22 3064 3000 Email: investorrelations@kalpatarupower.com