Ashoka Buildcon Limited Welcomes Shareholders for 24 th Annual General Meeting 30.09.2017 February 2016
Disclaimer This presentation and the accompanying slides (the “Presentation”), which have been prepared by Ashoka Buildcon Limited (the “Company”), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for any securities, and shall not form the basis or be relied on in connection with any contract or binding commitment whatsoever. No offering of securities of the Company will be made except by means of a statutory offering document containing detailed information about the Company. This Presentation has been prepared by the Company based on information and data which the Company considers reliable, but the Company makes no representation or warranty, express or implied, whatsoever, and no reliance shall be placed on, the truth, accuracy, completeness, fairness and reasonableness of the contents of this Presentation. This Presentation may not be all inclusive and may not contain all of the information that you may consider material. Any liability in respect of the contents of, or any omission from, this Presentation is expressly excluded. Certain matters discussed in this Presentation may contain statements regarding the Company’s market opportunity and business prospects that are individually and collectively forward-looking statements. Such forward-looking statements are not guarantees of future performance and are subject to known and unknown risks, uncertainties and assumptions that are difficult to predict. These risks and uncertainties include, but are not limited to, the performance of the Indian economy and of the economies of various international markets, the performance of the industry in India and world-wide, competition, the company’s ability to successfully implement its strategy, the Company’s future levels of growth and expansion, technological implementation, changes and advancements, changes in revenue, income or cash flows, the Company’s market preferences and its exposure to market risks, as well as other risks. The Company’s actual results, levels of activity, performance or achievements could differ materially and adversely from results expressed in or implied by this Presentation. The Company assumes no obligation to update any forward-looking information contained in this Presentation. Any forward-looking statements and projections made by third parties included in this Presentation are not adopted by the Company and the Company is not responsible for such third party statements and projections.
Ashoka’s journey … Evolved into a Leading Successful QIP – Started as Civil National Highway Developer Construction Player Rs 500 cr with NHAI BOT projects Constructed multiple Investment by IDFC PE 2015 and Beyond residential/buildings NSE/ BSE listing 1983-1995 2006-2011 2012-14 1996-2005 Well Established & Integrated Ventured into development Infrastructure Player of State Road and Bridge Up the value chain to larger Projects on BOT BOT projects Manufacturing to RMC SBI Macquarie invested Rs 800 Cr in ABL’s subsidiary, ACL 3
Construction Business 4
Leading EPC company with over 4 decades of experience In-house capabilities 4+ decades 7,000+ Equipment bank/ construction Lane kms Construction material constructed experience Vast experience Successful diversification 12-14% Sizeable power Executed projects across Consistent EBITDA Margin distribution business 19 states Rs 7,000 cr Order book; 3x FY17 revenue 5
Consistent growth in EPC business Rs Cr Revenue EBITDA 7% 15% 2,181 351 2,043 342 1,904 264 FY15 FY16 FY17 FY15 FY16 FY17 6
With improving profitability Rs Cr Cash Profit Net Profit 24% 33% 183 226 206 158 147 104 FY15 FY16 FY17 FY15 FY16 FY17 7
Robust order book of Rs 7,000 cr, 3x FY17 Revenue Rs Cr Doubling of order book in last 2 years -- Highest ever order inflow in FY17 of over 7,005 Rs 3,900 cr 2.2x Revenue visibility: 3x book to bill ratio 4,111 Diversified order book -- Successful foray in HAM projects 3,128 Power T&D, 27% Roads BOT, 38% Roads EPC, 35% FY15 FY16 FY17 8
Development Business 9
Well created large BOT portfolio 23 ~6,000 9 States Pan India presence Lane kms Operational + Under executed construction BOT projects Self sufficient Rs 3,000 cr 12% portfolio 2 year CAGR toll collection; Qualified to bid consistently growing projects of larger size 10
Presence across various BOT project types Toll Annuity/ Hybrid Annuity (HAM) Mudhol Nipani Belgaum Dharwad Road Dhankuni Kharagpur Road Bagewadi Saundatti Sambalpur Baragarh Road Hungud Talikot Chennai ORR Bhandara Maharashtra Road Durg Chattisgarh Road Ludhiana (Punjab) Ranastalam (AP) Jaora-Nayagaon Road Ahmednagar Aurangabad Road Indore Idalabad …. and others.. ~4,200 Lane Kms ~1,700 Lane Kms 11
Consistently growing toll collection Rs Cr 970 12% Adjusted for 23 days of closure of toll collection due to demonetization 913 907 Successfully completed and handed over Indore-Edalabad 775 Growth picking up in larger projects • Dhankuni – 12.7% • Sambhalpur – 17.8% (including toll rate revision post completion) FY15 FY16 FY17 12
Improving financials of development business Rs Cr Revenue Cash Profit EBITDA 920 128 847 684 682 108 436 267 32 FY15 FY16 FY17 FY15 FY16 FY17 FY15 FY16 FY17 13
New Businesses 14
Cautious strategy to enter new businesses Diversification into asset class which has stable yields Successful Enter new segment with a smaller pilot project precedent set by building a sizeable Maintain hurdle rate on margin and return on equity T&D business in the last decade Continued focus on core business of infrastructure 15
City Gas Distribution – tapping the vast opportunity CGD Network in Ratnagiri, Maharashtra Large opportunity in the country as the segment is Grant for laying, building, operating and expanding Scope underpenetrated CGD network CGD network will cover an area of 8,726 sq kms; Cost effectiveness of Network and the company has infrastructure exclusivity CNG as a fuel compared to petrol and diesel Capex Investment of Rs 150 cr over 4-5 years Potential growth in the number of households Will supply natural gas in the form of CNG to using PNG which is Customers vehicles and PNG to domestic and industrial customers cheaper than subsidized LPG 16
Commercial Real estate project – stable yield generating asset Commercial Real Estate Project from Mumbai International Airport Several policy reforms Ltd (MIAL) in Mumbai introduced to bring about transparency in 2 adjoining land parcels at Sahar road close to the the sector Location existing International Airport With RERA and REIT, Built up area 1.17 mn sq. ft the real estate sector is Commercial development, mix of office, retails, poised for a positive Development plan hospitality, etc. shakeup Security deposit Rs 330cr of refundable security deposit, interest-free Expected annual lease rental of Rs15cr with an escalation Increasing interest from Lease rental of 15% every 3 years institutional developers and investors Lease period 49 years including 3-4 years of the construction period 17
Consolidated Financial Highlights 18
Consistent Revenue growth; order book to drive higher growth 15% CAGR Revenue CAGR of 15% over the last 2 years 3,101 2,890 Current order book of Rs 70bn 2,340 (2.3x book to bill ratio)… …To drive higher growth over the next 2 years FY15 FY16 FY17 19
Improving profitability Rs Mn Cash Profit EBITDA 33% 40% 316 314 1,034 1,024 179 531 FY15 FY16 FY17 FY15 FY16 FY17 20
Social Initiatives The Company came forward to help draught victims of 2015, by making provision of potable water to residents of over 10 affected villages in Maharashtra 21
Social Initiatives As a proactive measure to increase water holding capacity, the Company joined hands with administrative bodies to execute de-silting of 3 Dams in Maharashtra. 22
Many sporting talents find it difficult to realise their potential due to lack of opportunities. Ashoka participates in the efforts of local government to create platforms where emerging sports enthusiasts can showcase their abilities. 23
Social Initiatives Support extended to city administration through maintenance of public gardens, jogging tracks, road medians etc. 24
Social Initiatives
Major Awards & Recognitions 1 2 3 5 4 6 26
Thank You 27
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