Kridhan Infra Limited 19th November, 2018 To, To, The BSE Limited - - PDF document

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Kridhan Infra Limited 19th November, 2018 To, To, The BSE Limited - - PDF document

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Kridhan Infra Limited 19th November, 2018 To, To, The BSE Limited National Stock Exchange of India Ltd. Phiroze Jeejeebhoy Towers, Exchange Plaza, C- 1, Block G, Bandra Kurla Complex, Bandra(E), Dalal Street, Fort, Mumbai 400001 . Mumbai

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SLIDE 1

Kridhan Infra Limited

To, The BSE Limited Phiroze Jeejeebhoy Towers, Dalal Street, Fort, Mumbai 400001. Ref: Scrip Code: 533482 19th November, 2018 To, National Stock Exchange of India Ltd. Exchange Plaza, C-1, Block G, Bandra Kurla Complex, Bandra(E), Mumbai 400051. Ref: Symbol: KRIDHANINF Subject: Submission of Investors Presentation for Q2FY2019. Dear Sir/ Madam, We refer the above subject and Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 and submit herewith Investors Presentation for Q2FY2019. Kindly take same on your record. Thanking You, Yours Faithfully,

For Kridhan Infra Limited Jyoti Gade Company Secretary

Encl: As above

  • Regd. Office: 203, Joshi Chambers, Ahmedabad Street, Carnac Sunder, Masjid (East), Mumbai - 400009.
  • Corp. Office: Unit No. 104, Samarpan Complex, Opp. Solitaire Park, Guru Hargovindji Road, Beside Mirador Hotel, Chakala, Andheri (East),

Mumbai-400 099. Tel.: +9122 49739933 / 67427914 Works: Village Vanwathe, Khopoli-Pen Road, Post - Donwat, Tai.: Khalapur, Dist. Raigad - 410 203. Telefax: 02192 278194; Tel.: 02192 278163 e-mail: info@kridhan.com; Website: www.kridhan.com, CIN: L27100MH2006PLC160602

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SLIDE 2

Kridhan Infra Limited

INVESTOR PRESENTATION | Q2FY19

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SLIDE 3

This presentation contains forward-looking statements which may be identified by their use of words like “plans,” “expects,” “will,” “anticipates,” “believes,” “intends,” “projects,” “estimates” or other words of similar meaning. All statements that address expectations or projections about the future, including, but not limited to, statements about the strategy for growth, product 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 companies referred to in this presentation cannot guarantee that these assumptions and expectations are accurate or will be realized. The actual results, performance or achievements, could thus differ materially from those projected in any such forward-looking statements. These companies assume no responsibility to publicly amend, modify or revise any forward looking statements, on the basis of any subsequent developments, information or events, or otherwise.

Disclaimer

2

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SLIDE 4

Q2FY19 Highlights & Strategic Review

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SLIDE 5

Agenda

Introduction Guidance & Company Overview Appendix – Company Highlights 1. 3. 4. Slide No. 5 Slide No. 13-16 Slide No. 17-22

4

H1FY19 Highlights 2. Slide No. 6-12

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SLIDE 6

Kridhan: Strategically Positioned EPC company

A Leading Engineering, Procurement and Construction Company in Asean Strong Project Execution Skill Singapore, I India ia, Ma Malaysia ia, I Indonesia ia 300+ 300+Projects C Comple leted Prestigious L6 Certification from BCA Bid f for unlim imit ited v valu lue o

  • f projects

in F Foundatio ion Eng ngg. Strategic Acquisitions Expand Opportunities Swee Ho Hong g – Sing ngapore E EPC C company w with s strong p pedigr igree VNC C – 35+ 35+ years o

  • f operatio

ions in Indi ndia Strong workforce 2, 2,300+ 300+ (incl. V VNC) Large Fleet of Equipment Pili ling Rigs gs, C Cranes, E Excavators, Mi Micro- tunnelling m machines

5

Kridhan Infra Limited (Listed on BSE and NSE)

India EPC (Vijay Nirman) Singapore EPC (Swee Hong) 41.47% 52.44% Singapore FE (KH Foges)

  • Pedigreed EPC

player with more than 3 decades of experience & a strong management team

  • Completed 400+

projects

  • Premier home-

grown Singaporean EPC company

  • Listed on Singapore

Stock Exchange

  • Completed marquee

projects like Gardens By the Bay

  • 2nd Largest

Foundation Engineering Company in Singapore

  • Prestigious L6

certification

100%

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SLIDE 7

Q2FY19: Financial H Highlights

6

Revenue (INR Mn) EBITDA (INR Mn) & EBITDA Margin (%) Pre Exceptional PAT MI (INR Mn)

2,121 1,929 Q2FY18 Q2FY19 297 255 Q2FY18 Q2FY19

14% 14% 14. 14.8%

127 173 Q2FY18 Q2FY19

 Reported Q2 Revenue and EBITDA numbers do not include contribution from India EPC Business;

  • PAT MI includes VNC numbers as an associate

 Q2 saw strong operating and financial performance at Singapore EPC and VNC business  Swee Hong financial performance impacted as legacy pre acquisition orders are nearing completion

  • Aggressive new bid pipeline just about beginning to convert into new orders
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SLIDE 8

Q2 F FY19 Financi cial P Performance ce

7

INR Mn Q2FY19 Q2FY18 Y-o-Y% Revenue 1,719 2,121

  • 19%

Expenses 1,601 1,996

  • 20%

EBITDA 255 298

  • 14%

EBITDA Margin 15% 14% 6% Depreciation 103 131

  • 21%

Finance Cost 34 42

  • 19%

Other Income 31 31 0% Exceptional Items

  • 29
  • PBT

120 156

  • 23%

Tax 20

  • 98%

Share of Profit/Loss from Associate 25

  • Minority Interest
  • 1
  • 9
  • 89%

Attributable Profit 144 127 13% EPS 1.5 1.8

  • 16%
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SLIDE 9

H1 F FY19 F Financial al Performan ance

8

INR Mn H1FY19 H1FY18 Y-o-Y% FY18 Revenue 3,648 3,974

  • 8%

7,125 Expenses 3,398 3,749

  • 9%

6,599 EBITDA 536 548

  • 2%

1,095 EBITDA Margin 15% 14% 6% 15% Depreciation 200 252

  • 21%

408 Finance Cost 86 72 20% 162 Other Income 59 54 10% 77 Exceptional Items

  • 66
  • 4

1786%

  • PBT

243 275

  • 11%
  • 163

Tax 15 32

  • 53%
  • 48

Share of Profit/Loss from Associate 62

  • 4

Minority Interest

  • 8
  • 11
  • 25%
  • 24

Attributable Profit 282 232 22% 531

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SLIDE 10

9

H1 FY19 : VNC integration drives strong performance

FY19 Gu Y19 Guidance

  • India EPC revenue: INR 12-13

billion

  • SG EPC revenue: INR 1.5-2

billion

  • SG FE revenue: INR 4-5 billion

Consolid lidated R Revenue: I INR 18 18-20 20 billio lion

  • EBITDA Margin:12%-13%

Consolid lidated E EBITDA: I INR 2. 2.1-2. 2.5 5 billio lion Consolid lidated P PAT: I INR 0. 0.75 75–0. 0.9 9 billio lion

Strong Growth Order w wins si s since e end nd of Q2 2 FY FY19 19 INR 3.6 bn Solid Execution – Proforma Consolidated Numbers.* EBI EBITDA INR 1,059 mn Reve venue nue INR 8,370 mn Pre E Exceptional al PAT M MI INR 336 mn India E EPC PC Book

  • ok to B
  • Bill

l 3.3x Order der W Wins ns i in H1FY FY19 19 INR 11+ bn Total Or Order B Book

  • ok

INR 38 bn

*In calculating proforma numbers, Kridhan is assumed to hold 50.5% stake in VNC

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SLIDE 11

Strong Order Inflows across business

10

Current Or Order B Book

  • ok Brea

eak-up up (Pr Prof

  • for
  • rma B

Basis: I INR 38 billion lion) IN H H1FY FY19 19

  • KH Foges: Piling contract worth INR 1,340 million (SG$ 27

million)

  • Swee Hong: Public Utilities Board contract worth INR 566

million (SG$ 11.3 million)

IN Q Q2FY FY19 19

  • KH Foges: 2 piling contracts worth INR 1,305 million

(SG$24.63 million)

IN Q Q1FY 1FY19

  • Structural work for Vishakhapatnam Road worth INR 1,800

million

In Q Q2FY FY19 19

  • Construction order at IGI Airport worth INR 742 million
  • In 51% JV, won order worth 2,226 million for NH 167
  • Civil works order for Gorakhpur Fertiliser Plant worth 1,326

million

  • Central Public Works Department worth INR 1,740 million
  • Purvanchal Expressway (Package – 5) worth INR 1,670 million

India: V VNC

INR 7,800+ million

Singa gapore

INR 3,211 million

India EPC (VNC), 84 % SG FE, 11% SG EPC, 5%

New ew o

  • rder

er wins ns sinc nce e e end o d of the he quarter er INR 3. 3.6 bn 6 bn

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SLIDE 12

Indi ndia E EPC C (VN VNC) i C) in n Q2 Q2FY FY19 – On On a a S Solid Growt wth Path

11

VNC Order Book Breakup (INR 32+ billion)

INR NR Mi Millio lion H1F 1FY19 19 H1F 1FY18 18 Change nge % % FY18 18 Revenue 4,721 3,601 31% 8,771 EBITDA 523 411 27% 803 EBITDA Margin 11.1% 11.4% 9.2% PAT 149 41 262% 102

  • Won new orders worth INR 7.8 bn during H1FY19
  • Significantly strengthened Balance Sheet after equity infusion from

Kridhan Infra

Operati tional H High ghligh ghts ts

  • On track towards achieving INR 12-13 billion in revenue in FY19
  • Working towards consolidating Kridhan’s stake in the business

Wa Way F Forward

Affordable Housing 26% Commercial Infra 12% Industrial Infra 6% Railways 5% Residential Building 14% Roads & Bridges 37%

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SLIDE 13

Singap apore P Performan ance U Update

12

  • Pre acquisition legacy orders are nearing

completion

  • Phase I of a large contract at Swee Hong

commissioned on 28th Oct.

  • Strong bid pipeline of over SGD 200 mn

Swee H e Hong

  • Strong order book growth
  • Won new piling orders worth SG$24.6 million in

Q2FY19

  • Commenced construction at key projects

KH H Fo Foges

H1 H1FY1 Y19 ( (INR M Mn) KH F H Foge ges ( (FE) Swee Ho Hong ( g (EPC) Revenue 2,736 691 EBITDA 386 82 EBITDA Margin 14% 12% PBT 119 17

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SLIDE 14

Guidance & Overview

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SLIDE 15

FY19 Strategic Priorities and Guidance

St Strategic ic P Pri riori ritie ies FY19 FY19 Gui Guidance

Consolida idate V VNC a as a majority o

  • wne

ned d Subsidiary Strengthen I n Indi ndia EPC PC Grow S Sing ngapore E EPC PC bus busine ness

  • India EPC revenue: INR 12-13 billion
  • SG EPC revenue: INR 1.5-2 billion
  • SG FE revenue: INR 4-5 billion

Cons nsolidated ed R Reven evenue: e: INR 1 18-20 b 0 billion

  • EBITDA Margin:12%-13%

EBITD TDA: : INR 2 2.1-2.5 b 5 billion PAT: I INR 0. 0.75 75–0. 0.9 b 9 billion

14

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SLIDE 16

Proforma Financial Performance and Order Book

H1FY 1FY19 P 19 Proforma F Fina nancial P Performance Assu ssuming 50. 50.5% 5% s stake i in VNC

Pr Proforma ca calcu culation:

  • Proforma numbers are calculated using line by line consolidation of

Revenue and EBITDA.

  • Pre – exceptional PAT (of Kridhan ) which is attributable to shareholders is

net of minorities

15

Prof

  • for
  • rma (

a (INR M Mn) H1 H1FY1 Y18 ( (Actual) H1F 1FY19 ( 19 (PF) Y- Y-o-Y% Y% Revenue 3,974 8,370 111% EBITDA 548 1,059 93% EBITDA Margin 13.8% 12.7% PAT MI (Pre-exceptional) 236 369 56%

India EPC (VNC), 84 % SG FE, 11% SG EPC, 5%

Current Or Order B Book

  • ok Brea

eak-up up (Pr Prof

  • for
  • rma B

Basis: I INR 38.3 billion ion)

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SLIDE 17

Strong Financial Position

Total Revenue (INR Mn)

Net worth (INR MN)

608 732 701 369 705 451 168 452 761 1,108 1,684 1,865 325 150 56 208 257 638 FY13 FY14 FY15 FY16 FY17 FY18

Term Loan Working Capital Acquisition

Debt (INR Mn)

4,692 6,799 6,517 4,887 6,882 7,125 FY13 FY14 FY15 FY16 FY17 FY18

EBITDA (INR Mn) and EBITDA %

746 1,266 1,529 1,770 2,799 5,599 FY13 FY14 FY15 FY16 FY17 FY18 16 535 740 674 659 1,046 1,095 11.40% 10.90% 10.30% 13.50% 15.20% 15.40% FY13 FY14 FY15 FY16 FY17 FY18

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SLIDE 18

Appendix

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SLIDE 19

Group Structure

Kridhan Infra Ltd (India) RMS Singapore Pte Ltd (Singapore) 100% KH Foges Pte Ltd (Singapore) 100% Rotary Piling Pte Ltd. 100% Specialised in ground

  • Engg. Equipment

rental Co. PSL Engineering Pte Ltd 100% Specialised in Micro piling & Geotechnical Engg Services KH Foges India Pvt Ltd 100% Foundation Engineering Business in India Econ Geotech Pte Ltd 100% Specialised in Soil Investigation Swee Hong Ltd 52.44% Specialised in civil construction Kridhan Infra Solutions Pvt Ltd (India) 100% Vijay Nirman Company P Ltd (India) 41.47% Listed on Singapore Stock Exchange SGX: QF6.SI Bloomberg Ticker: SWHP:SP Listed on BSE and NSE BSE Code: 533482 NSE Code: KRIDHANINF

18

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SLIDE 20

Established in Mumbai in JV with CSC Holdings, Sin gapore Pioneered ready to use steel - T bars & Cut & bend services Started manufacturing unit at Khopoli, Mum bai IPO and listing on BSE stock exchange Acquisition

  • f KH Foges
  • Singapore’s

7th largest piling company

Entry into Foundation Engineering business Acquired PSL engineering, Singapore –

Specialist in Bored and Micro Piling; expansion of product portfolio

Grown Fast through Well -Timed Acquisitions

Acquired 35% stake in Econ Geo Tech Pte

  • Ltd. – A soil

investigation company; backward integration

Started Piling Operations in India Acquired Swee Hong Singapore Limited; a

leading listed Civil Construction company; moving up the value chain to complete EPC Projects

Foray in larger Value EPC Projects

2006 2007 2011 2012 2013 2014 2016

Started Piling Operations in Myanmar Became the 2nd largest piling company

2017/2018

Acquired 41.47% stake in Vijay Nirman Company P Ltd Strengthen India EPC

19

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SLIDE 21

Robust Order Book: More diversified, More India Focused

Order Book FY16 Rs 6,660 Mn Order Book March’17 INR 7,915 Mn

SG FE 71% India FE 19% RMS 10%

SG EPC 47% SG FE 32% India EPC 7% RMS 14%

MARCH’18 PROFORMA ORDER BOOK INR 35+ billion

India EP EPC (VNC NC) 80% 80% SG F G FE 16% 16% SG G EP EPC 2% 2% RMS MS 2% 2% 20

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SLIDE 22

Profi fit & & Lo Loss S Statement

21

INR M R Mn FY18 Y18 FY17 Y17 FY16 Y16 Rev even enue 7, 7,125 125 6, 6,882 882 4, 4,887 887 Total Expenditure

  • 6,599
  • 6,404
  • 4,228

EBITDA 1, 1,095 095 1, 1,046 046 659 659 EBITDA M Margi gin ( (%) 15. 15.40 40% 15. 15.20 20% 13. 13.5% 5% Interest

  • 162
  • 176
  • 119

Depreciation

  • 408
  • 392
  • 327

Other Income 77 186 69 PBT BT 602 602 664 664 282 282 Tax

  • 48
  • 5.1
  • 58

PAT (pre-exceptional) 554 659 225 Minority Interest

  • 24
  • 186
  • 23

Adjusted P PAT ( (pre-exceptio ional) l) 531 531 473 473 202 202

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SLIDE 23

Balance Sheet

INR Mn FY18 FY17 FY16 Share Capital 190 148 148 Reserves and Surplus 5,409 2,650 1,622 Share & Warrant Application Money 506 Minority Interest 205 169 156 Non Current Liabilities 1,190 1,243 855 Long Term Borrowings 642 712 577 Deferred Tax Liabilities 110 112 109 Other Long Term Borrowings 438 418 169 Current Liabilities 4,183 4,229 2,609 Short Term Liabilities 1,901 1,684 1,108 Trade Payables 1,388 1,898 836 Other Current Liabilities 894 634 616 Total Equity and Liabilities 11,228 8,440 5,390 INR Mn FY18 FY17 FY16 Non Current Assets 4,927 4,190 2,659 Fixed Assets 1,994 2,275 1,848 Goodwill on Consolidation 1,517 1,437 223 Non Current Investment 1,023 38 53 Other Non Current Assets 393 439 536 Current Assets 6,301 4,250 2,731 Inventories 153 265 187 Trade Receivables 2,937 2,178 770 Cash and Cash Equivalents 417 302 243 Short Term Loans and Advances 901 440 308 Other Current Assets 1,893 1,065 1,223 Total Assets 11,228 8,440 5,390 Note: The figures for the FY 2017 include the figures of Swee Hong Limited, Singapore acquired during the financial year and hence are not strictly comparable with the figures of FY.2016 22

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SLIDE 24

Contact Detail

  • Ms. Sheetal Khanduja

Go India Advisors +91 9769364166 sheetal@goindiaadvisors.com

  • Ms. Tanya Khosla

Go India Advisors +91 9769387813 tanya@goindiaadvisors.com