C & C Constructions Limited Corporate Presentation July 2011 - - PowerPoint PPT Presentation

C & C Constructions Limited

Corporate Presentation July 2011

PRESENTATION STRUCTURE

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JOURNEY SO FAR Formation of the Company Promoters Promoters’ responsibilities Other Board Members and Independent Directors Milestones Financial Highlights Order Book Key Projects completed BOT projects under way Some weaknesses WAY FORWARD Action points Course correction Revenue pattern

JOURNEY SO FAR

Formation of the Company

• It was in July, 1996 that 5 people got together with a common vision of becoming

the nation’s foremost infrastructure builder.

• Together their skill sets ranged from expertise in finance to successfully completing

infrastructure projects in the most challenging terrains.

• Four out of these five people are related to each other thereby ensuring continuity
• f thought and easy resolution of potential conflict.
• Being hands on professionals, it was easy to take on varied projects in different

geographies without diluting execution strategies.

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5

Promoters

GURJEET SINGH JOHAR Chairman

• Chartered Accountant with more than 35 years of professional experience.
• Responsibilities include strategic planning and conceptualization of new project

initiatives including BOT. Also oversees the finance and human resource functions.

• Industry Associations:
• Chairman - Project Export Promotion Council of India.
• Working Committee Member – Construction Federation of India.
• Core Group Member- Confederation of Indian Industries (Roads and

Highways)

• Core Group Member-FICCI Infrastructure Committee

CHARANBIR SINGH SETHI Managing Director

• Commerce graduate, with more than 30 years of experience in the Infrastructure

Management sector.

• Responsibilities include supervision of construction projects.
• Specializes in projects in difficult/rough terrains.

RAJBIR SINGH Director

• Economics graduate with over 12 years of experience in the infrastructure sector.
• Responsibilities include quarrying initiatives and logistics.
• Served in the Indian Army for 9 years.

SANJAY GUPTA Director

• Civil Engineer with more than 28 years experience in the infrastructure sector.
• Responsibilities include implementation of the Afghanistan projects, BOT projects

and the Buildings vertical.

• Member of Builder Association, Delhi.

AMRIT PAL SINGH CHADHA Director

• Post Graduate in Commerce with over 23 years of experience in the

infrastructure sector.

• Responsibilities include execution of projects in Bihar.
• Executive Committee Member of National Highways Builders Federation.

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Promoters’ - responsibilities

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Other Board members and Independent Directors

RAJENDRA MOHAN AGGARWAL Non-promoter Executive Director

• Civil Engineer with more than 40 years experience in infrastructure sector.
• Responsibilities include tendering and technical support .
• Has worked with various large public and private sector organizations in

infrastructure development roles, including a project with the Government

• f Libya.

Deepak Dasgupta Independent Director

• Former Chairman of National Highways Authority of India, and a Member of

Task Force on interlinking rivers.

• Also has worked as Advisor to Asian Development Bank (ADB).

Anand Bordia Independent Director

• 40 years experience in policy formulations, program implementation and
• rganizational development
• Previously worked as Collector of Customs, First Secretary, Indian Trade

High Commission London and Member (Finance) NHAI.

• Also worked with World Customs Organization and UNDCP

Ramesh Chandra Rekhi Independent Director

• 43 years experience in aviation, engineering and construction
• Previously also has worked as Chief Engineer - International Airports

Authority of India; Director - Airports Delhi, Chief Engineer – New Delhi Municipal Council; Head (Aviations division) - EMA Unihorn.

• Currently working as Senior Consultant with Delhi International Airport

Limited.

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Other Board members and Independent Directors

TARLOCHAN SINGH Independent Director

• Member of Rajya Sabha.
• Ex-Chairman Minorities Commission.
• Member of various Parliamentary Committees.

ARUN KUMAR PURWAR Nominee Director

• Chairman of IndiaVenture Advisors Pvt. Ltd.
• Former Chairman of State Bank of India and Indian Bank Association.
• Received “CEO of the year” Award from the Institute for Technology &

Management (2004); “Outstanding Achiever of the year” Award from Indian Banks’ Association (2004); “Finance Man of the Year” Award by the Bombay Management Association (2006). KANWAL MONGA Independent Director

• Renowned industrialist.
• Has been instrumental in introducing fibre optic cables into India and

CNG into Delhi.

• J. GANGULY

Independent Director

• An Engineer by qualification, having vast experience of 40 year in the

field of construction in India and abroad.

• Former Executive Vice President Larsen & Toubro Ltd..
• GEN. N. C. VIJ

Independent Director

• Former Chief of the Army Staff.
• Former Vice Chairman of the National Disaster Management Authority

(NDMA) with the Status of a Union Cabinet Minister.

• Has been awarded Param Vishist Seva Medal, Uttam Yudh Seva medal

and Ati Vishist Seva Medal for his outstanding and distinguished services in Army.

Milestones

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2 2 9 2 1 2 8 2 7 2 6 2 5 2 3

First National Highway Project – Durgapur Rs 5.67cr. First Overseas Road Project in Afghanistan

• Rs 107 cr.

Awarded 3 Large Contracts in Bihar- Rs 1042 cr. First Urban Transport Project in Delhi (BRT)- Rs 129 cr.

• First BOT

Project on National Highway- Rs 408 cr.

• Pubic Issue-

Rs 154 cr. First Railway Freight Corridor Project- Rs 781 cr. Entry into Commercial Buildings and Transmission- Rs 432 cr & Rs 18 cr respectively First JV Executed with BSCPL

Consistent Growth in Portfolio, Reach, Pre-qualification Capacity & Delivery Capabilities 2 1

• MOU with

Isolux

• QIP- Rs 77 cr,

Private Placement- Rs 50 cr, Promoters infusion -Rs 50 cr.

1 9 9 7 1 9 9 6

First airport project awarded - Kerala - Rs 6.88 cr. Company incorporated by professionals and bagged first road project in Punjab- Rs 28 lac

Financial Highlights- Five Years (Rs Cr)

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2005-06 2006-07 2007-08 2008-09 2009-10 Turnover 211.73 330.42 533.26 750.13 1168.45 Earning Before Depreciation, Interest & Taxes 56.25 66.26 83.54 123.91 218.54 Depreciation 14.88 16.02 15.47 24.94 44.78 Finance Charges 3.23 14.28 23.50 47.41 72.94 Profit after Tax 30.90 33.17 40.91 41.10 69.09 Equity Dividend % 33.3% 25.0% 27.5% 27.5% 27.5% Dividend 4.26 4.56 5.02 5.02 6.43 Equity Share Capital 12.78 18.26 18.26 18.26 23.39 Reserves and Surplus 92.78 253.34 290.70 330.97 504.17 Net Worth 105.57 271.60 308.96 349.23 527.56 Gross Fixed Assets 100.76 144.69 252.63 399.98 498.32 Net Fixed Assets 88.39 155.46 222.72 326.06 383.37 Total Assets 288.79 600.76 855.54 1457.54 1861.01

Financial Highlights- Five Years Key Indicators

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2005-06 2006-07 2007-08 2008-09 2009-10 Earning per Share 24.18 22.05 22.40 22.51 35.67 Book Value per Share 82.60 148.74 169.20 191.26 225.56 Debt equity Ratio 0.55 0.51 0.88 1.74 1.34 EBITDA Margin % 26.57% 20.05% 15.67% 16.52% 18.70% Net profit Margin % 14.60% 10.04% 7.67% 5.48% 5.91% ROACE % 30.02% 17.53% 13.77% 12.87% 15.83% ROAE % 33.39% 17.59% 14.09% 12.49% 15.76%

Order Book as on 31st July 2011(Rs Cr)

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Verticals C&C Independent BSC C&C JV ISOLUX C&C JV C&C SE JV Total (31.07.2011) Total (31.07.2010) Roads & Highways 331.83 1,711.53 584.00

• 2,627.36

1,577.24 Urban Infra 777.92 176.86

• 954.78

703.68 Railway

• 342.36
• 342.36

378.01 Transmission 34.05 102.30 1,138.46

• 1,274.81

15.37 Water & Sewerage

• 104.14

104.14 178.28 Total 1,143.80 2,333.05 1,722.46 104.14 5,303.46 2,852.58

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Key projects completed

PROJECT NAME CHALLENGES/ HIGHLIGHTS CONTRACT VALUE (RS CR) CONTRACT VALUE (C&C SHARE) CLIENT DATE OF COMPLETION Development of State Highways under RSVY

• scheme. Pkg. No.17: Nawada

& Jamui Dist The project involved meticulous planning due to logistically difficult terrains and inclement operating conditions. 61 31 Central Public Works Department Mar, 2010 Improvement / upgradation for existing road of States Highway into 2 lanes road in Madhubani The project was completed under various challenges like adverse flood conditions, logistically difficult terrains and inclement operating conditions. 72 36 Ircon International Limited May, 2010 Rehabilitation of Kapurthala - Taran Taran Road The project comprised of a 47.20 kms road stretch from Kapurthala to Tarn Taran in the state of Punjab. 55 55 Public works Department, Punjab Dec, 2009 Construction works related to widening / Upgrading of Roads to convert the existing carriageway to multilane facility for the High Capacity Bus System The execution of such projects in Delhi was of a specialized nature since construction activity was not possible during the day due to heavy traffic and can only be done during the night with requisite steel barricading. 129 65 RITES Limited Nov, 2009 Upgradation of Tarn Taran - Chabbal - Attari Road The project comprised of a 40.50 kms road stretch from Tarn Taran to Attari in the state of Punjab. 45 45 Public works Department, Punjab Aug, 2009

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Key projects completed

PROJECT NAME CHALLENGES/ HIGHLIGHTS CONTRACT VALUE (RS CR) CONTRACT VALUE (C&C SHARE) CLIENT DATE OF COMPLETION Build, Design and Rehabilitation of Taluqan to Kishem Road, Afghanistan The construction projects in Afghanistan required mobilization of machinery and technical work force from India and materials from Pakistan and India. We dealt with continuous security threar due to terrorists activities and logistics issues due to excessive snowfall and rain. 90 45 Ministry of Public Works, Afghanistan May, 2008 Reconstruction of Jalalabad- Asmer Road, Afghanistan( From Km 0 to 121.5) The scope of the project comprised reconstruction of the project road including construction of culverts, causeways and other drainage works. 157 79 Ministry of Public Works, Afghanistan Apr, 2007 Kandahar To Herat highway Improvement project, Afghanistan (Km 456 to 557) This project involved construction of a stretch on the Kandahar-Herat road to the city of Herat along the Iranian border in Eastern Afghanistan. 241 121 Louis Berger Group, Inc Oct, 2006 Design build and Rehabilitation of Lashkar Gah Ring Road, Afghanistan from Km 00 to 43+00 The scope of the work included construction of culverts, cause ways and other drainage works and falls in southern Afghanistan. 59 30 UNOPS July, 2006 Design & Build Contract for Rehabilitation of Kandahar- Spin Boldak highway, Afghanistanh (Funded by ADB) This project was also in a sensitive area

• f Afghanistan and involved

connecting the major Afghanistan city

• f Kandahar to the border of Pakistan.

There were numerous operating challenges in spite of which, the project was completed in November 2005. 107 53 Ministry of Public Works, Afghanistan Nov, 2005

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Key projects completed

PROJECT NAME CHALLENGES/ HIGHLIGHTS CONTRACT VALUE (RS CR) CONTRACT VALUE (C&C SHARE) CLIENT DATE OF COMPLETION Construction of Kandahar - Trin Kot Road Project, Afghanistan The project was strategically important for alliance forces working in Afghanistan and was exposed to security threats. 98 49 UNOPS Oct, 2005 Design & Build Contract for Rehabilitation of 85 Km. stretch from km 262 to km 347

• f Kabul- Kandahar highway,

Afghanistan Since this was a pioneer project of USAID and the first in Afghanistan, we were exposed, to a difficult working environment and security

• threats. Despite this, we completed

this project within a short span of seven months. 207 103 Louis Berger Group, Inc June, 2005 Four Laning of Km 146.00 to Km 156.00, Guwahati Bypass, NH-37 The Bypass was constructed around the city of Guwahati and was situated in a security sensitive area. 61 18 National Highways Authority of India June, 2004 Resurfacing of existing runway, Taxi track and Extension & Construction of runway, Taxi tract & Apron, Amritsar The project involved both flexible and rigid pavement construction. The project was completed under strict restraints of operational and strategic defence issues. 21 11 Airport Authority of India Nov, 2003 Extension of runway by 5000 ft, Port Blair Airport There were logistics and scheduling challenges since all major materials,

• viz. Bitumen, Cement and Steel, etc.

had to be transported from the main land at a distance of more than 1,200 kms. 41 21 Airport Authority of India/ BSCPL Jan, 2002

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BOT projects under way

Projects Concession period Project Cost Grant/ Annuity etc. Total Equity Independent/ JV Investment by C&C till 30.06.2011 Financial Closure Status Current Status

4-laning of 44 km of NH-21 from Kurali to Kiratpur 20 years 408 Crs NHAI Grant of Rs 43.92 Crs 104 Crs 49:51 JV with BCSPL Infrastructure Limited 51 Crs Achieved Commencement of Date by August 2011. It was delayed due to land acquisition problems. Development of Inter State Bus Terminus (ISBT) along with commercial complex at Mohali ISBT - 20 years, Commercial complex - 90 years 432 Crs 14 lacs square feet BUA including basement 125 Crs Independent 94 Crs Achieved Entered MOU with Cinepolis, Big Bazar & Hyatt. 2-laning of 69 km of NH-80 from Mokama to Munger 15 years 444 Crs Semi Annuity

• f Rs 39.94 Crs

89 Crs 50:50 JV with BCSPL Infrastructure Limited 14 Crs Achieved Appointed date yet to be received 2-laning of 82 km of NH-77 from Muzaffarpur to Sonbarsa 20 years 656 Crs Semi Annuity

• f Rs 52.40 Crs

131 Crs 50:50 JV with BCSPL Infrastructure Limited 58 Crs Achieved Appointed date yet to be received 4-laning of 51 km of NH-30 from Patna to Bakhtiarpur 18 years 908 Crs NHAI Grant of Rs 113.40 Crs 114 Crs 50:50 JV with BCSPL Infrastructure Limited Nil in Progress N.A. 1,500 Kms. of 765 kV and 400 kV Transmission Lines and 5 substations 35 years 4951 Crs Levelised Tariff

• f Rs 870 Crs

1282 Crs 74:26 JV with Isolux Corsan Nil in Progress N.A. Development and Modernization of Computerized Interstate Check Posts 20.5 years 456 Crs Annual Premium of Rs 81 Crs 251 Crs Independent Nil in Progress N.A.

Some weaknesses

• Major revenue from the road vertical
• resulting in high working capital requirement.
• high debt levels to fund working capital
• large interest pay-outs diluting EBIDTA margins
• Substantial investment in fixed assets not yielding corresponding revenue

multiples.

• Perceived pressure on balance sheet due to committed BOT investments.

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WAY FORWARD

Action points

• Growing the newer verticals of Commercial buildings, Power transmission, Water

& sewerage and Piling.

• Continuously increasing bid eligibility in different verticals by forging strategic

partnerships.

• Investing in Information Technology infrastructure enabling the Company to

make informed and timely decisions on procurement, bid processes, financial matters etc.

• Mentoring a strong chain of sub-contractors capable of delivering works in line

with Company’s standards.

• Developing a strong management cadre after the Promoters to take care of future

challenges.

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Course correction

• Increased share in the revenues of the Company from verticals other than roads.
• To reduce working capital cycle and requirement of incremental debt by altering the
• rder book mix in favour of verticals other than roads.
• To reduce interest pay-outs resulting in a positive impact on PAT.
• Reducing incremental investment in fixed assets through
• appointment of sub-contractors who will invest in their own assets.
• increasing exposure to verticals such as Commercial buildings, Power

transmission, Water & sewerage and Piling requiring lesser fixed assets.

• Raising adequate capital in the holding Company for making investment in BOT

projects.

• Issuing of commercial papers and other instruments at low interest rates through

improved credit rating.

• Issuing long term bonds to strengthen the debt structure of the Company.

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Pictures from completed projects

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Pictures from completed projects

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Pictures from completed projects

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Thank You