SLIDE 1 INVESTOR MEET – DHRUV CONSULTANCY SERVICES LIMITED
HEM SECURITIES LTD.
AWARD WINNING MERCHANT BANKER
DHRUV CONSULTANCY SERVICES LIMITED
SLIDE 2 COMPANY SNAPSHOT
Company Name Dhruv Consultancy Services Limited Registered Office Navi Mumbai, Maharashtra Corporate Office Navi Mumbai, Maharashtra Date of Incorporation August, 26 2003 Exchange BSE - SME Industry Consultancy
- Incorporated on August 26, 2003 and since then they are into infrastructure consultancy. Company provides design,
engineering, procurement, construction and integrated project management services for Highways, Bridges, Tunnels, Architectural, Environmental Engineering and Ports.
- Over the years company has developed a track record of working majority of projects with government bodies and
public sector undertakings.
- Being a consultancy organisation, They believe that human capital is one of most valuable assets. They have a qualified
and professional employee base of over 313 employees, including 240 Engineers as on December 31, 2017.
- Company’s total revenue has increased from Rs. 510.85 lakhs for Fiscal 2013 to Rs. 3046.24 lakhs for Fiscal 2017, at a
CAGR of 56.27%. Net profit as restated has increased from Rs. 34.52 lakhs for Fiscal 2013 to Rs. 308.16 lakhs for Fiscal 2017, at a CAGR of 72.85%.
- Company deals in varied services. The diversified range of services helps them to cater different spectrum of clients
which also increases their clientele base all over India. Their service sector includes Highways, Bridges, Tunnels, Architecture, Environmental and Ports.
- The majority of their business has been concentrated in Maharashtra, They also have relationships with clients outside
- Maharashtra. Now they are propose to focus on improving their relationships in strategically important areas such as
Ahmedabad, Bangalore, Chennai, New Delhi, Hyderabad and Mumbai.
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SLIDE 3 COMPANY TIMELINE 3
ESTABLISHMENT
Started with 4 employees in a 200 sq. ft. rented office
FIRST PMC WORK
Bhiwandi Kalyan Shilphata Road by PLUS Expressway BERHAD
TEN YEARS COMPLETION
Empanelment with Ministry of Road Transport & Highways
HIGHEST WORK ORDER RECEIVED
National Highway Bridge Inspection in Gujarat and Maharashtra
PRESENT
More than 300 employees working in 11 states across the nation with office space
Works of 1300 Km, Authority Engineer’s Works of 740 Km
2003 2006 2013 2015 2018
2003 – Till Date
SLIDE 4 HIGHWAY SECTOR 4
DETAILED PROJECT REPORT
COMPLETED MORE THAN 75 WORKS
CONSTRUCTION SUPERVISION
COMPLETED 300 KMS AND 800 KMS CURRENTLY ONGOING
OPERATION AND MAINTENANCE
MAJOR WORKS: NH4 SECTION OF MUMBAI PUNE, MPEW AND SATARA KAGAL
INDEPENDENT ENGINEER
- 1. Solapur Yedshi- 98.71 Km
2. Yedshi Aurangabad- 190.20 Km
- 3. Khed Sinner- 135.00 Km
CONTRIBUTES FOR 80% WORKS
SLIDE 5 5
BRIDGES & TUNNEL SECTOR 5
SAVITRI RIVER BRIDGE IN MAHAD
NH-17
PERIOD OF 165 DAYS
EXCELLENCY CERTIFICATE BY HON. MINISTER SHRI NITIN GADKARI
NATIONAL HIGHWAY BRIDGE INSPECTION
- GUJARAT
- TOTAL KM – 5062 KMS
- AWARD VALUE – RS. 17 CR.
- MAHARASHTRA, GOA AND
DADRA & NAGAR HAVELI
- TOTAL KM – 7727 KMS
- AWARD VALUE – RS. 20 CR
MUMBAI PUNE EXPRESSWAY CAPACITY AUGMENTATION MANALI TO SHIMLA PARALLEL ROUTE
BRIDGE DESIGN, CONSTRUCTION SUPERVISION AND INSPECTION
SLIDE 6 ARCHITECTURAL, ENVIRONMENTAL & PORT WORKS
ASHTAVINAYAK RE- DEVELOPMENT AMRUT SMART CITY PROJECTS FOR 8 CITIES
ARCHITECTURAL PLANNING & DESIGN SMART CITIES INTERIOR DESIGNING
01 02
HERITAGE CONSERVATION
03 04
ENVIRONMENTAL – DESIGN OF SEWAGE TREATMENT PLANTS GOT PMC OF 135 NAGAR PANCHAYATS IN MAHARSHTRA WHICH INCLUDES STP. DEVELOPMENT OF JALNA AND WARDHA DRY PORT
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ARCHITECTURE PLANNING AND DESIGNING
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SLIDE 7 35
TENDER EVALUATION
Feasibility Study and Preparation of DPR for up gradation to 2 lane with paved shoulder of MSH-15 from Bankot - Mandangad - Mahad - Rajewadi- Raigad District Border in Ratnagiri and Raigad Districts approximate length Km.98.00 And SH-97 from Mahad Junction (at Km 123/400 on NH-66) to Raigad Fort.
Name of Bidder Financial Bid Technical Marks Technical Score Financial Score Total 1 L&T Infrastructure Engineering Limited 38710500 91.25 73.00 17.82 90.82 2 VOY ANTS SOLUTIONS PRIVATE LIMITED 26852700 92.30 73.84 OUT OUT 3 SOWIL LIMITED 34487400 83.85 67.08 20.00 87.08 4 DHRUV CONSUL T ANCY SERVICES PVT LTD. 37620000 96.25 77.00 18.33 95.33 5 MONARCH SURVEYORS AND ENGG CONSUL TANTS PVT LTD 36373300 90.00 72.00 18.96 90.96 Total 174043900 Average 34808780 Above 20% 41770536 Below 20% 27847024 DPR Rate Rs.1.5 Lakhs/Km Our Quoted Rate
Expected Profit 51%
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SLIDE 8 MBIU MAHARASHTRA EV ALUATION
Name of Bidder Financia l Bid Technica l Marks Technic al Score Financial Score Total 1 S N Bhobe & Associates Pvt. Ltd 153698669 84.58 67.66 20 87.66 2 Dhruv Consultancy Services Pvt. Ltd 175500000 87.71 70.17 17.52 87.68 3 Sowil Limited 180100000 79.03 63.22 17.07 80.29 4 Casta Engineers Pvt. Ltd 179350000 81.06 64.85 17.14 81.99
Our financial quote is much higher than the lowest bidder (L1), but due to strong technical marks we got this work by a difference of 0.02.
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SLIDE 9 EMPLOYEE STRENGTH
Category
Administrative Staff 23 Skilled Workers 236 Semi-Skilled Workers 37 Unskilled Workers 17 Total 313 As of December 31, 2017 They have employed 313 full-time employees at their locations and project sites. They have employed a prudent mix of the experienced staff and youth which gives them the dual advantage.
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SLIDE 10 MANAGEMENT TEAM
- Mrs. Jayashri P. Dandawate
Chairman and Executive Director
- Graduate in Home Science with a professional experience of 22 years.
- She is the proprietor of Tanvi Enterprises, Sanpada, Navi Mumbai since
the year 1998 and also of Tanvi Motor Driving School, Sanpada, Navi Mumbai since 2005.
- Mr. Pandurang B. Dandawate
Non Executive Director and Promoter
- B.E. (Civil) with Professional experience of 33 years
- Worked in Maharashtra state PWD and MSRDC for 19 years and has a vast
experience in roads and bridge constructions, tolls and BOT projects.
- He heads the company since last 12 years.
- Mrs. Tanvi Auti
Managing Director
- B.E. (Civil) with Professional experience of 3 years
- Worked in Hiranandani Construction, Mumbai and Simplex Infrastructure
Limited as an Engineer Trainee.
- She oversees the overall functioning of the Company.
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SLIDE 11 Contd.
Joint Managing Director
- B. E (Civil) with professional experience of 33 years.
- He has worked in Maharashtra State Public Works Department (PWD) for
30 years and has a vast experience in this field.
- He is a Certified by the Indian Institution of Valuers (India) as a
Chartered Valuer for the Category of Immovable Property.
Executive Director
- Diploma (Civil) with professional experience more than 20 years.
- He oversees the project implementation, project estimation and project
engineering of the projects that we undertake.
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SLIDE 12 GROWTH OPPORTUNITIES
Overview of the Infrastructure Sector in India Infrastructure sector is a key driver for the Indian economy. Our country needs massive investments estimated to be in excess of Rs 50 lakh crore in infrastructure to increase growth of GDP, connect and integrate the nation with a network of roads, airports, railways, ports and inland waterways and to provide good quality services to our people. GOVERNMENT INITIATIVES DRIVING GROWTH IN THE SECTOR Railways and Metro Rail
- For 2017-18, the total capital and development expenditure of Railways has been pegged at US$ 20.33 billion.
- As per 2017-18 Budget, railway lines of 3,500 kms will be commissioned in FY18.
Roads and Airports
- Budget allocation for road sector increased to US$ 10.07 billion in 2017-18 from US$ 8.99 billion in 2016-17.
- 2,000 kms of coastal connectivity roads have been identified for construction and development .
Construction
- In 2017, government announced plans to facilitate higher investment in affordable housing
Consultancy Service Consultancy services are emerging as one of the fastest growing service segments in India cutting across different sectors with some overlapping. The Government of India has taken many initiatives to help the consulting industry, including the Marketing Development Assistance and Market Access Initiative schemes; coming out with guidelines on broad policies and procedures for selection, contracting and monitoring of consultants; and initiatives aimed towards capacity development of domestic consultants and sensitization of client organizations. Recent initiatives taken by the government such as Make in India, development of smart cities, skill development, along with the focus on improving industrial policies and procedures, have
- pened up a plethora of opportunities for consultants.
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SLIDE 13
GROWTH OPPORTUNITIES
TENDERS FOR FEASIBILITY STUDY AND DETAILED PROJECT REPORTS HAVE BEEN OPENED ON THE WEBSITE OF MINISTRY. PROJECT COST – RS. 7 LAKH CRORE DURATION - 5 YEARS CONSULTANCY BUSINESS EXPECTED DPR 1.5% - RS. 10,500 CR SUPERVISION 2% - RS. 14,000 CR TOTAL – RS. 24,500 CR BUSINESS OF RS. 5000 CR PER YEAR
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BHARATMALA PARIYOJANA
SLIDE 14 ISSUE DETAILS
ISSUE OPENS 27th April, 2018 ISSUE CLOSES 2nd May, 2018 LISTING ON BSE SME LEAD MANAGER TO THE ISSUE Hem Securities Limited REGISTRAR TO THE ISSUE Link Intime India Private Limited RESERVATION FOR NO OF SHARE Market Maker 2,24,000 RII 20,36,000 Other Then RII 20,36,000 NO OF SHARE Pre Issue 1,00,00,000 Post Issue 1,42,96,000 IPO DETAILS Issue Size (No of Share) 42,96,000 Fresh Issue (No of Share) 42,96,000 Issue Size In Rs 23.19 Cr Face Value Rs.10 Issue Price
Post Issue No Of Share 1,42,96,000 Post Issue Paid Up Capital 14.29 Cr Post Issue Implied Market Cap 77.19 Cr SHARE HOLDING PATTERN PRE IPO POST IPO Promoter Holding 100% 69.95% Public Holding 0.00% 30.05% BID LOT RII 2000 Other Then RII 4000 & in multiples of 2000
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SLIDE 15
OBJECTS OF THE ISSUE
OBJECTS AMOUNT ALLOCATED IN (Rs. In Crore) Repayment/ prepayment of certain indebtedness 5.12 To Meet Working Capital requirements 11.60 General Corporate Expenses; 4.53 Issue Expenses 1.94 Total 23.19
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SLIDE 16
COMPETITOR ANALYSIS
Face Value EPS PE RONW Book Value Artefact Projects ltd. 10 0.35 129.00 0.54 64.17 MITCON Consultancy & Engineering Services Limited 10 3.66 18.84 4.80 76.13 Dhruv Consultancy Services Ltd* 10 7.2 7.5 35.48 228.54 30 60 90 120 150 180 210
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SLIDE 17 SEGMENTAL REVENUE
Division FY 13 FY 14 FY 15 FY 16 FY 17 Highways 4.73 9.03 9.39 10.64 23.79 Bridges
5.98 Tunnels 0.26
Architectural
0.02 0.02 Environmental Engineering
0.03 0.02 Ports
Total Consultancy Income 4.99 9.03 9.46 15.11 30.43
Amount In (Rs. Cr)
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SLIDE 18
REVENUE STATEMENT
Particulars Amount In (Rs. Cr) As At 30-12-2017 31-3-2017 31-3-2016 31-3-2015 31-3-2014 31-3-2013 Revenue 33.48 30.44 15.11 9.45 9.02 4.99 Expenditure 24.10 22.79 11.65 7.80 7.28 4.43 Operating Profit 9.38 7.65 3.46 1.65 1.74 0.56 Operating Profit Margin % 28.02 25.13 22.89 17.46 19.29 11.22 Other Income 0.039 0.021 0.037 0.28 0.14 0.11 Depreciation 0.72 0.85 0.34 0.297 0.066 0.07 EBIT 8.69 6.82 3.15 1.63 1.814 0.6 Interest 1.28 1.87 0.86 0.29 0.11 0.05 PBT 7.41 4.95 2.28 1.34 1.70 0.55 Tax 2.007 1.864 0.96 0.55 0.57 0.20 PAT 5.40 3.08 1.32 0.79 1.13 0.35 NPM % 16.13 10.11 8.73 8.35 12.52 7.01
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SLIDE 19 BALANCE SHEET
Particulars Amount In (Rs. Cr) As At 31-12-2017 31-3-2017 31-3-2016 31-3-2015 31-3-2014 31-3-2013 LIABILITIES Share Capital 1.00 0.38 0.30 0.30 0.30 0.20 Reserves & Surplus 13.09 8.30 5.22 3.90 3.11 1.98 Net worth 14.09 8.68 5.52 4.20 3.41 2.18 Share Application Money Pending Non Current Liabilities
5.34 5.70 4.34 0.81 0.23
- Deferred Tax Liabilities (Net)
- Other Long Term Liabilities
1.03 0.88 0.50 0.35 0.19 0.12
- Long Term Provision
- Current Liabilities
22.53 15.23 7.56 7.14 3.56 2.58 Total Liabilities 42.99 30.50 17.92 12.50 7.39 4.88 ASSETS Non Current Assets
6.88 5.30 3.04 1.18 0.93 0.50
- Non Current Investments
- 0.006
0.006 0.16 0.006
- Long Term Loans and Advances
- Deferred tax assets (Net)
0.34 0.29 0.20 0.19 0.15 0.16
- Other Non Current Assets
- Current Assets
35.77 24.91 14.68 11.13 6.16 4.22 Total Assets 42.99 30.50 17.92 12.50 7.39 4.88
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SLIDE 20
FINANCIAL RATIOS
Particulars For Period Ended 31-12-2017* 2017 2016 2015 2014 2013
Return on Net worth (%) 38.34 35.48 23.94 18.80 33.03 15.80 EBITDA Margin (%) 28.02 25.13 22.89 17.46 19.29 11.22 Current Ratio 1.59 1.63 1.94 1.55 1.72 1.63 Restated Basic and Diluted Weighted Average Earning Per Share 5.40 3.10 1.33 0.80 1.15 0.35 Adjusted Net asset value per share (In Rs.) 140.86 228.54 184.10 140.03 113.7 109.23
*Figures are not annualized
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SLIDE 21
STRONG FINANCIAL GROWTH
2013 2014 2015 2016 2017 Revenue 5.10 9.16 9.74 15.15 30.46 0.00 5.00 10.00 15.00 20.00 25.00 30.00 35.00
Revenue
2013 2014 2015 2016 2017 EBITDA 0.56 1.74 1.65 3.46 7.65 0.00 2.00 4.00 6.00 8.00 10.00
EBITDA
2013 2014 2015 2016 2017 PAT 0.35 1.13 0.79 1.32 3.08 0.00 0.50 1.00 1.50 2.00 2.50 3.00 3.50
PAT
2013 2014 2015 2016 2017 ROCE 47.00 60.00 30.00 30.00 44.00 0.00 10.00 20.00 30.00 40.00 50.00 60.00 70.00
ROCE
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In Rs. Crore In Rs. Crore In Rs. Crore In %
SLIDE 22 INVESTMENT RATIONALE
Valuation : Company is bringing the issue at PE multiple of 7.50 on pre issue annualized FY18 eps of Rs. 7.20 at a price of
Healthy Financial Performance: Company has shown strong financial performance during FY17 as it has posted strong operating & net profit margin of 25.13 % & 10.11% respectively during FY17.Also, co has generated strong return on shareholder’s fund
- f 35.48% during the same year. During FY13-17, the Company’s Revenue and Profit have grown at 57.16% and
72.23% CAGR respectively Strong Client Base : Customer are mainly PSUs & Government Corporations. Company’s major clientele includes Ministry of Road Transport and Highways, National Highways Authority of India, The City and Industrial Development Corporation
- f Maharashtra Ltd., Jawaharlal Nehru Port Trust, Maharashtra State Road Development Corporation, Mumbai
Metropolitan Region Development Authority, Public Works Department, Maharashtra Tourism etc. Wide Range of Services: Company deals in varied services. The diversified range of services helps them to cater different spectrum of clients which also increases their clientele base all over India. Their service sector includes Highways, Bridges, Tunnels, Architecture, Environmental and Ports. Strong Order Book: Company is having Strong order book of Rs. 131.41 Crores as on 31st December, 2017.
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SLIDE 23 DISCLAIMER
Disclaimer: * For additional information & risk factors please refer to Draft Prospectus.
- This document is provided for assistance only and not intended to be taken alone for the basis for an investment
decision.
- Our presentation/proposal may include predictions, estimates, management opinions or other information that
might be considered forward-looking. These forward-looking statements represent our current judgment on the future, they are subject to risks and uncertainties that could cause actual results to differ materially. Such forward- looking statements are subject to risks and uncertainties like regulatory changes, local political or economic developments, and many other factors that could cause actual results to differ materially from those contemplated by the relevant forward-looking statements.
- Hem Securities Limited will not be in any way responsible for any action taken based on such statements and
undertakes no obligation to publicly update these forward-looking statements to reflect subsequent events or circumstances.
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SLIDE 24 REACH US
THANK YOU
HEM SECURITIES LTD.
AWARD WINNING MERCHANT BANKER
A – 904, Naman Midtown, Senapati Bapat Marg, Elphinstone Rd, Lower Parel, Mumbai - 400013 Tel: +91 - 22 – 4906 0000 Email ID: ib@hemsecurities.com Website: www.hemsecurities.com 501, Pujit Plaza, Palm Beach Road, Sector - 11, Opp. K-Star Hotel, Near CBD Station, CBD Belapur, Navi Mumbai-400614. Telephone: +91 022 – 27570710 E-mail ID: cs@dhruvconsultancy.in Website: www.dhruvconsultancy.in DHRUV CONSULTANCY SERVICES LIMITED
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