ramky infrastructure limitedramkyinfrastructure.com/docs/pdf/investordesk/ramky investors... · 15...

Ramky Infrastructure Limited

Investor Presentation

FEBRUARY 2012

1

Agenda

Strengths and growth strategy

Industry overview

Corporate profile

2

The Corporate Profile

Ramky snapshot Ramky Infrastructure Limited (“Ramky” or the “Company”), is an

integrated construction and infrastructure development and

management company with a pan-India presence

Ramky operates in two principal business segments:

– Construction business

– Developer business which is operated through Subsidiaries

and Associates

Ramky is promoted by first generation promoters,

Alla Ayodhya Rami Reddy and Y.R. Nagaraja, and managed by

team of experienced professionals

Addition of Order Book for the 09 months ended Dec. 31st , 2011

was INR 49669m

Track record of robust growth attained by a diversified portfolio of

projects:

Construction

business

Developer

business

Industrial

Power

Water & Waste water Industrial parks

Irrigation Roads

Transport terminal Roads & Bridges

Building construction

Integrated townships (INRm) FY2007 FY 2010 FY 2011 FY 2012

(9M) CAGR*

Order book 22308 74317 109988 138781 49%

Revenue 7111 18613 27305 19144 40%

EBITDA 767 2016 2999 2279 41%

Net income 397 1027 1574 897 41%

Note: Above mentioned financials are for Ramky standalone

* CAGR between 2007 March 31st - 2011 Mar 31st

A Proven track record across construction and developer business

3

The Construction Business Profile

Water & Waste

Water

Include water treatment plants, water transmission

and distribution systems, elevated and ground level

service reservoirs, sewage treatment plants,

common effluent treatment plant, tertiary treatment

plants, underground drainage systems and lake

restorations

Value of projects in hand: INR 22,766m

Closing order book (INR m)

Irrigation

Include canals, cross-drainage works, feeder

channels lift irrigation projects, dams and barrages


Industrial

Includes industrial parks, SEZs and related works

such as aluminium, textile, pharmaceuticals, power,

petroleum and waste management.


Buildings

Includes commercial, residential, public, institutional

and corporate buildings, mass housing projects, high

rise projects and health care infrastructure projects


Roads & Bridges

Includes expressways, highways, bridges, rural

roads, flyovers and dedicated service corridors


Power

Includes electricity transmission networks,

substations feeder lines and low tension distribution

lines


Average order size (INR m)

Revenue visibility is driven by a robust order book growth in the construction business

22,308 36,887

59,238 74,317

109,988

138,781

0

50,000

100,000

150,000

FY07 FY08 FY09 FY10 FY11 FY12 (9M)

218 213

719

925

1,150 1,057

0

500

1,000

1,500

FY07 FY08 FY09 FY10 FY11 FY12(9M)

CAGR between 2007 March 31st - 2011 Mar 31st Value of Projects in Hand as on 31st December, 2011

4

CAGR between 2007 March 31st - 2011 Mar 31st

Detailed Construction Business Profile (continued)


Buildings

Focus remains on construction of large institutional

buildings

Inbuilt processes to attain synergies across various

verticals and rely on a pool of qualified

subcontractors for efficient execution

Core competency remains focusing on efficient

planning

Strategy is to mechanize processes where

specialized manpower is required, thereby,

improving operating margins


Construction business is spearheaded by Roads with significant contributions from other segments

Roads &

Bridges

Qualified to execute expressways, highways,

bridges, flyovers and dedicated service corridors

Maximize efficiency through seamless

synchronization of supply chain, logistics,

operation and execution functions

Leverage expertise in developer business

Aim for completion prior to target dates through:

- Control over supply chain (e.g. Quarries)

- Technology to improve supply chain and

reduce pilferages

- In house control over bituminous mix

Strategy remains to focus on challenging terrains

3,836 5,992 9,249

15,750

41,981

61,503

0

10,000

20,000

30,000

40,000

50,000

60,000

70,000

FY07 FY08 FY09 FY10 FY11 FY12 (9M)

3,837

8,527 10,451 10,244

19,319

24,053

0

5,000

10,000

15,000

20,000

25,000

30,000

FY07 FY08 FY09 FY10 FY11 FY12 (9M)

Value of Projects in Hand as on 31st December, 2011

5


Irrigation

Perceived by clients as a total irrigation solution

provider, including, lift irrigation, dams, barrages

and cross drainage work

Efficient design and execution team

Mitigate risks in the vertical by only retaining core

activities of design and supervision while

subcontracting all other areas

Focus on geographic expansion outside Andhra

Pradesh into states such as Gujarat, Madhya

Pradesh and Karnataka

Qualified to bid for larger projects

Strategy is to leverage government incentives for

the sector

4,021

13,586

16,823

24,476

21,090 22766.15

0

5,000

10,000

15,000

20,000

25,000

30,000

FY07 FY08 FY09 FY10 FY11 FY12 (9M)


Additionally, Ramky continues to build on momentum gained in other verticals such as Power & Industrial

Water & Waste

Water

Core competency and area of continued focus going

forward

Undertake projects on both composite and several

basis with scope including, design, engineering,

construction, operation & maintenance solutions to

manage projects from generation, T&D, Treatment,

eventual storage & disposal

Highly specialized internal design team equipped

with tacit processes and know how gained through

experience

Qualified to build larger Treatment Plants of sizes up

to 300 MLD

Strategy going forward is to retain leadership by

continuous investment in technology

4,778 5,587

15,644 15,541 15,263 14,924

0

4,000

8,000

12,000

16,000

20,000

FY07 FY08 FY09 FY10 FY11 FY12 (9M)

Detailed Construction Business Profile (continued)

CAGR between 2007 March 31st - 2011 Mar 31st Value of Projects in Hand as on 31st December, 2011

6

Developer Business Profile

Name of subsidiary

(Ramky’s interest)

Project cost /

estimated

project cost in

INR m

Completion date/

Scheduled

completion date

Description

Ramky Elsamex Hyderabad

Ring Road Limited (74%) 3,994 Completed

Operate and maintain a 12.63km eight lane expressway – part of Phase-II

of the program

Gwalior Bypass Project

Limited (51%) 3,321 Nov 2011

Under completion stage.

NAM Expressway Limited

(50%) 17,605 July 2013

Developing the 212.50km Narketpalli-Addanki-Medarametla in Andhra

Pradesh on build operate and transfer (BOT ) basis

Jorbat Shilong Expressway

Limited (50%) 8240 Jan 2014

Design, engineering , construction, operation and maintenance of the

61.85km 4 lane road in Jorbat-Shillong

Srinagar Banihal

Expressway Ltd. (74%) 16,000 June 2014

Rehabilitation, strengthening and converting to 4 lanes of the 67.76km

section of NH-1A from Srinagar to Banihal in Jammu and Kashmir

Sehore Kosmi Tollways

Limited (100%) 962 March 2014

Strengthening, widenening ,maintaining and operating of Sehore-

Icchapur-Koshmi Road on BOT (Toll + Annuity)

Hospet Chitradurga Tollways

Limited (100%) 10,336

30 months from

date of

commencement

Four laning of Hospet - Chitradurga section NH 13 from Km 290.000 to

Km 418.600 (Approx 120.03 Km) in state of Karnataka on Design, Build,

Finance, Operate and Transfer (DBFOT) basis on Toll

Agra Etawah Tollways Limited

(100%) 12,070

30 months from

date of

commencement

Six laning of Agra- Etawah bypass section of NH 2 from Km 199.660 to

Km 323.525 under NHDP Phase -V in the state of Uttar Pradesh on

Design, Build, Finance, Operate and Transfer (DBFOT) basis on Toll

MDDA Ramky IS Bus

Terminal Limited (100%)

131 (Phase 1)

319 (Phase 2)

June 2004 (Phase

1)

March 2010

(Phase 2)

Operate the bus terminal to be built for the first time on a BOT basis in

India

Revenue earned from terminal fees, shop rental, advertising, and

accommodation charges

Transport Terminal

Transportation

“Challenging terrain”

Niche area of expertise remains Industrial Parks whilst Roads are expected to drive growth

7

Developer Business Profile (Contd…)

Name of subsidiary

(Ramky’s interest)

Project cost /

estimated

project cost in

INR m

Completion date/

Scheduled

completion date

Description

Ramky Pharma City (India)

Limited (51%) 5,205 Completed Project under operational stage.

Ramky Multi Product industrial

Park, Chottupal (100%) 6,830 2016

Acquisition of land is in progress 834 acres acquired already and the

remaining is in progress

Ramky Herbal and Medicinal

Park (Chhattisgarh) Limited

(100%)

964 Oct-14 CSIDC has requested Ramky to execute both Herbal and Food parks

together at one location in an alternate land for which Ramky has agreed.

Ramky Food Park

(Chhattisgarh) Limited (100%) 875 Oct-14

Physical possession of 1st phase of 250 acres of land by CSIDC is expected

soon

Naya Raipur Gems and

Jewellery SEZ Limited (100%) 1,834 Oct-14 Physical possession of land by CSIDC is expected soon

Ramky Food Park (Karnataka)

Limited (74%) 330 Mar-21

The Project Development & Implementation Agreement executed on 16th

March 2011

Ramky MIDC Agro Processing

Park Limited (100%) 468 Aug-13

In the process of taking over lands and start the process of planning &

development.

Ramky Towers Limited (51%) 4,000 Apr-12 Developing an integrated residential and commercial project on 17.10 acres

in Gachibowli, Hyderabad (1,478,470 sq. ft. saleable area)

Ramky Enclave Limited

(89.01%) 2,164 Mar-13

Developing an integrated housing project on 32.69 acres of land (946,210

saleable area)

Ramky Integrated Township

Limited (29.19%) 34,244

72 months from

satisfaction of

conditions

precedents

Developing an integrated township on 574.60 acres in Ranga Reddy

District, Andhra Pradesh (estimated 14.0m sq. ft. saleable area)

Integrated

Townships

“Walk to work”

Industrial Parks

“Focus on polluting

industries”

Niche area of expertise remains Industrial Parks whilst Roads are expected to drive growth

8

Net Worth Details of Key Subsidiaries

S. No. Company Net Worth (in INR Mn as of

31st Dec. 2011)

1 MDDA Ramky IS Bus Terminal Ltd 107.35

2 Gwalior Bypass Project Ltd 693.47

3 Ramky Elsamex Hyderabad Ring Road Ltd 19.34

4 Srinagar Banihal Expressway Ltd. 4.17

5 Sehore Kosmi Tollways Limited 0.46

6 Hospet Chatradurga Tollways Limited 0.46

7 Agra Etawah Tollways Limited 0.46

8 N.A.M. Expressway Limited 2339.05

9 Jorabat Shillong Expressway Limited 410.82

10 Ramky Towers Ltd 160.61

11 Ramky Enclave Ltd 6.74

12 Ramky Pharmacity (India) Ltd 1046.82

13 Ramky Herbal & Medicinal Park (Chattisgarh) Ltd 14.24

14 Ramky Food Park (Chattisgarh) Ltd 12.09

15 Naya Raipur Gems & Jewellery SEZ Ltd 29.01

16 Ramky MIDC Agro Processing Park Ltd. 65.63

17 Ramky Multiproduct Industrial Park Ltd. 0.34

18 Ramky Food park (karnatka) Ltd. 0.47

19 Ramky Engineering and Consulting Services (FZC) 881.80

9

Detailed Developer Business Profile (continued)

Roads Industrial Parks

Focus remains on industrial parks for polluting industries

Ramky specialises in providing state-of-the-art civil infrastructure

and industry specific waste handling facilities

Focus remains on roads with technically challenging projects in

difficult terrain

Revenue certain mode:

– Annuity projects preferred

– Alternatively, conservative toll assumptions

Earned bonus for early completion Ramky Pharma City is an integrated industrial park spread over

2,143 acres in Parwada, Andhra Pradesh

Initial area: 2,143 acres

– SEZ: 611 acres (431 acres saleable)

– Non-SEZ: 1,532 acres (999 acres saleable)

Fully developed and operational with 1,138 acres sold

Waste handling facilities include, ETP, CETP, MEE, WTP,

outfall, incineration and landfill

Civil infrastructure like training facilities, convention facilities,

labs, administrative facilities, roads, security , banking facilities

and catering facilities present on site

Design, construction, operation and maintenance of 8 lane

expressway under phase IIA of outer ring road project in

Hyderabad

Stretching over a length of 12.63 km between Tukkaguda and

Shamshabad was completed by November 2009, 6 months

ahead of scheduled completion

Revenue model:

– Fixed semi-annuities on a BOT basis

– Semi- annuities of INR315.0m for a period of 12.5 years

Execution efficiency demonstrated by:

– Control over aggregates through rights on quarries

– Control over pilferage and logistics through global fencing

technology on vehicles

– Control over core actively by investing in bitumen mixers and

layers

– Subcontracting non-core activities through productivity

oriented contracts

Case study: Ramky Pharma City

Case study: Hyderabad Ring Road

Synergistic business model between core construction activities and development business

Clients

Smilax Laboratories Ltd. Glochem Industries Ltd Vasudha Pharma Chem.

Stilbene BioPharma Minerva Flavours &

Fragrances Aurobindo Pharma

Emmennar Bitotech Pharma zell Pvt Ltd Hospira Healthcare India Pvt.

Ltd.

Wyjayanthi Drugs EISAI Pharma Tech &

Manufacturing Product Ltd Alkali Metails Ltd.

Glandpharma Matrix (SEZ) SNF India

10

Agenda


Corporate profile

Industry overview

11

5.15%

7.55%

9.95%

10th plan actual

(2002 – 07)

11th plan revised

(2008 – 12)

12th plan target

(2013 – 17)

Projected growth in Infra & Industrial segments

84

1

1,0

52

1,3

31

1,6

64

1,9

48

2,1

54

2,5

34

2,9

25

3,2

21

3,4

69

15

3

31

3 51

2 49

3 59

0

62

3 56

2 52

7 41

4 37

9

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500

2005 – 06

2006 – 07

2007 – 08

2008 – 09

2009 – 10

2010 – 11E

2011 – 12E

2012 – 13E

2013 – 14E

2014 – 15E

Industrial Infrastructure

Source: CRISIL Research

Overview of Indian Infrastructure Sector

Key highlights

Despite the slowdown, investment in India has remained relatively stable with the ratio of fixed investment to GDP increasing to 8.1% of GDP in

FY2011 compared to 7.8 % in FY2010

Investments in construction – circa 11.0% of India’s GDP & circa 50.0% of the gross fixed capital formation

Over the next five years, infrastructure development to account for 78.3% of all construction expenditure in India

Expenditure on industrial construction is expected to grow 2.2x over the next five years (2010 –15) as compared to the previous five year period

(2005-10)

Private capital to fund approximately 30.0% of the total investment during the Eleventh Plan, as compared to 20.0% during the Tenth Plan

Twelfth plan target infrastructure spending

Source: Mid term appraisal of Eleventh Plan by Planning Commission

227

514

1,025

10th plan actual

(2002 – 07)

11th plan revised

(2008 – 12)

12th plan target

(2013 – 17)

At 4.5x of Tenth Plan Accounts for 10% of GDP

4.5x

2.3x

12

Government Playing a Crucial Role in Ramky’s Core Sectors

Government incentives to infrastructure sector

Permitting FDI up to 100% in companies engaged in construction development projects in housing, commercial premises, resorts, educational

institutions, recreational facilities, townships and city and regional level infrastructure, subject to conditions in Press Note No 2 (2005) issued by

the Government of India

The revised estimate for Infrastructure investments under the 11th Plan is INR 20542 bn. This is a 2.2x increase v/s actual Infrastructure

investment under the Tenth Plan

Average investment in Infrastructure under the Twelfth Plan would be 9.95% of GDP as against 7.55% in Eleventh Plan and 5.15% in Tenth plan

Source: CRISIL Research

Sector-wise Govt. spending

Source: Mid-term Appraisal of XI plan, by Planning Commission

Telecom INR3,532bn, 17%

RailwaysINR2,008bn, 10%

PortsINR406bn, 2%

Oil & gasINR1,273bn, 6%

StorageINR90bn, 0%

AirportsINR361bn, 2%

ElectricityINR6,586bn, 32%

RoadsINR2,787bn, 14%

IrrigationINR2,462bn, 12%

WaterINR1,117bn, 5%

Ramky’s core focus

13

Agenda


Industry overview

Corporate profile

14

Key Business Strengths

Execution efficiency

Pan-India presence

Benefits of parentage

Independent board & experienced

management team

Strong financial profile

Diversified sector focus

15

14,139 22,30836,887

59,238

74,317

109,988

7,111 10,292 14,304 18,61327,305

19,144

0

20,000

40,000

60,000

80,000

100,000

120,000

FY07 FY08 FY09 FY10 FY11 FY12 (9M)

Opening order book Revenue

Execution Efficiency

Two reasons mainly contributed to increase in margins

– Economies of scale

– Well established processes for execution

1

Note: Ramky standalone financials

Execution keeping pace with order book (INR m)

Operational efficiency maintained with

increase in scale of operations

2,836 full-time employees of

which 48% are engineers (as

of 31st Dec. 2011)

Executing effective planning

and tie-ups with institutes

Hire only supervisory level

and above

Subcontract low end activity

Maintain a lean asset size

Procure only core and scarce

equipment

Prefer hiring non-core

equipment machinery

Index pegged pass through

contracts

Create pre-bid tie ups for key

commodities

Build long term vendor

relationships for effective

procurement

Continued access to debt

Limited dilution of stock and

improved access to capital

markets

Capital to support future

growth

Superior in-house design capabilities remains a key distinguisher in executing complex projects

Man power Machinery

Materials Money

10.79 10.10

10.22 10.83 10.9811.91

7,111 10,292

14,304

18,613

27,305

19,144

0

10,000

20,000

30,000

0%

5%

10%

15%

20%

FY07 FY08 FY09 FY10 FY 11 FY12 (9M)

EBITDA margin Revenue

16

Note: Order book as of 31st Dec. 2011 [Standalone incl. of WIP]

2

% order book

Value of order book: INR 138,781 m

No single sector has significant share of order book

Ramky’s pan-India presence increases diversification and positions us uniquely amongst competitors

Buildings 17%

WWW 16%

Roads & Bridges

44%

Industrial 8%

Power 4%

Irrigation 11%

Cash Contracts 67%

Subsidaries 33%

South Zone 39%

East Zone 11%

West Zone 11%

North Zone 29%

Central Zone 10%

Int.'l Operations 0%

Central Govt. 12%

State Govt. 52%

PSU 0%

Private 36%

Diversified Focus – Order Book

17

Cash Contracts 83%

Subsidaries 17%

Diversified Focus – Revenue 3

% revenue (FY 12 – 9M)

Construction revenue: INR 19,144M

No single sector has significant share of FY2012 revenue

Note: Revenue as of 31st Dec. 2011 [Standalone excl. of WIP]

Buildings 20%

WWW 29%

Roads & Bridges 29%

Industrial 10%

Power 8%

Irrigation 4%

South Zone 36%

East Zone 10%

West Zone 19%

North Zone 26%

Central Zone 7%

Int.'l Operations

2%

Central Govt. 11%

State Govt. 60%

PSU 3%

Private 26%

18

Geography Wise New Orders – Since 2007 4

New orders bagged since 2007

24

4.4

1

45

3.0

0

0.0

0 4

98

.94

26

4.9

0

18

68

.94

21

9.6

7

25

1.6

6

17

8.3

4

59

2.5

4

11

70

.21

22

6.1

3

22

7.3

2

20

8.9

8

14

8.3

0

10

03

.56

25

05

.66

76

2.5

9

68

0.4

5

22

33

.53

25

38

.79

73

2.4

7

17

70

.03

15

95

.21

15

6.1

4

39

4.0

5 1

12

8.6

1

59

4.5

1

33

5.7

8

51

4.0

7

15

27

.99

35

41

.23

39

94

.04

34

22

.02

60

96

.58

49

66

.94

0.00

1000.00

2000.00

3000.00

4000.00

5000.00

6000.00

7000.00

9M

FY'07 FY'08 FY'09 FY'10 FY'11 FY'12

Central Zone East Zone North Zone South Zone West Zone Total (Incl. of Int'l Projects)

19

Sectorial Wise New Orders – Since 2007 5

New orders bagged since 2007

17

1.5

7 9

17

.41

57

4.4

9

53

3.4

9

13

66

.02

84

1.4

8

34

7.2

7

13

23

.02

90

7.1

7

14

05

.85

53

8.3

4

70

0.8

2

28

7.6

7

49

9.9

3

62

8.8

6

10

91

.48

32

41

.71

26

08

.82

16

3.6

1

36

7.1

8

11

.75

17

3.4

4

58

2.0

4

59

1.3

5

14

5.9

2

8.1

6

69

8.0

6

69

.80

25

8.7

8

16

0.5

8

411

.92

42

5.5

1 1

17

3.7

2

14

7.9

6

10

9.6

9

63

.89

15

27

.96

35

41

.21

39

94

.05

34

22

.02

60

96

.58

49

66

.94

0.00

1000.00

2000.00

3000.00

4000.00

5000.00

6000.00

7000.00

9M

FY'07 FY'08 FY'09 FY'10 FY'11 FY'12

Buildings WWW Roads & Bridges Industrial Power Irrigation Total (Incl. of Int'l Projects)

20

Benefits Of Parentage 6

Ramky is the flagship company of Ramky Group

Ramky Group is a multidisciplinary organization focused in the areas of Civil, Environmental & Waste Management infrastructure with specific

emphasis on 'Public Private Partnership' projects

Operational since 1994 with over 17 years of experience across the infrastructure sector

Ramky Group has a presence in more than 55 locations in India in addition to branch offices at Saudi Arabia, UAE and Singapore

Operates through 4 Group Companies namely: Ramky Infrastructure Limited, Ramky Enviro Engineers Ltd, Ramky Estates and Farms Ltd and

Ramky Finance & Investment Pvt. Ltd.

Each Group Company has an independent and professional management team in place

Access to critical

equipment &

supplies

Synergies among

various business

verticals

Access to

expertise of senior

management

History of

established

execution track

record

Access to technical

expertise and

knowledge

Benefits accruing to

Ramky

Ramky remains the flagship company of Ramky Group which is evolving into a leading Infrastructure

conglomerate in India

21

A well balanced board with a professional management team across all business segments ensures

transparency and efficiency in decision making

Independent Board & Experienced Management Team 7

27 years of experience in the field of environmental services, civil works, biomedical waste and hazardous waste management

Worked for various water, waste water and engineering projects, notably with Gannon Dunkerly & Co., Reliance Industries Limited

Bachelor’s degree in civil engineering from Karnataka University and a master’s degree in civil engineering from Osmania University

Accredited with best “Engineer of Year Award” in 2005 by Govt. of Andhra Pradesh & Institute of Engineers (India)

Alla Ayodhya Rami Reddy

Chairman, Ramky Group

Y. R. Nagaraja

Managing Director, Ramky

Ramky Board of Directors

Y. R. Nagaraja

Managing Director

Rajiv Maliwal

Non-Executive

Director SAPE Nominee

Dr. A. Hingorani

Non-Executive

Director Tara India Fund Nominee

Murahari Reddy

Independent

Director

PG Sastry

Independent

Director

K S Vikamsey

Independent

Director

V H Kumar

Independent

Director

Ramky Management Team

26 Years of experience in allied fields

Positions held with the Public Works Department of the State of Karnataka, Mandanlal Steels Limited and Navega Engineers Private Limited

Bachelor’s degree in civil engineering from Karnataka University

Shuvendu S. Mohanty

More than 35yrs. of experience

R. S. Garg

30 yrs. Of experience

P. K. Jain

29 yrs. of experience

Sreenivasan C


Phani Bhushan


CEO CFO Head – Commercial Head – HR & Admin Head – Secretarial

22

7,111

10,292

14,304

18,613 19,14410.8% 10.1% 10.2%

10.8% 11.0%

11.9%

5.6%

5.0% 4.5%

5.5%

5.8%4.7%

FY07 FY08 FY09 FY10 FY11 FY12 (9M)

Income EBITDA margin (%) PAT margin (%)

27,305

Networth (INRm) & ROE Income (INR m) and EBITDA margin

Leverage ratios Working Capital ratios (INR m)

2,0262,513

3,2044,262

8,8909,787

19.0%

20.1%

21.1%

24.4%

17.1%

12.2%

FY07 FY08 FY09 FY10 FY11 FY12 (9M)

Networth ROE (%)

0.8x

2.1x 2.2x

1.7x1.9x

3.5x

0.3x

0.9x1.0x

0.8x0.6x

0.8x

FY07 FY08 FY09 FY10 FY11 FY12 (9M)

Net debt/EBITDA Net debt/Equity

121

138 127 128 124

33.0% 37.8% 34.7% 35.1% 34.0%

47.0%

FY07 FY08 FY09 FY10 FY11 FY12 (9M)

Net working capital days Net working capital (% of sales)

168

Strong Financial Profile 8

Aggressive growth has been achieved whilst improving margins and maintaining a conservative balance

sheet

Note: All financials are for Ramky standalone

23

Growth Strategy

Developer business Construction business

Continue to build on the expertise gained in polluting

industries parks

Leverage on Water and Waste Water construction

business once government opens sector

Power and other highly complex verticals (synergistic)

‘Public Private Partnerships’ will be the focus model

Undertake projects with visibility on returns

Leverage our execution capabilities and move into

larger and more complex projects

Continue to focus on Water and Waste Water projects

and through leadership in technology and design

Closely track and benefit from sectors with

Government priority such as transportation and power

Improve productivity through economies of scale

Compete through optimum pricing and efficient

execution

Ramky has benefitted from a “first-movers” advantage in several verticals and continuing to innovate

remains the Company’s core strategic focus going forward

24

Key Investment Highlights

Infrastructure sector Large addressable opportunity

Construction expenditure is expected to double to INR37,357 bn during 2010-11 to 2014-15

period versus INR 22,057 bn during the 2005-06 to 2009-10 period

Between FY2010 and FY2014, government spending on roads alone is targeted at

INR5,216bn with increased focus on timely completion

Business model Scalable with proven execution

capabilities

Ramky’s strategically positioned to realize opportunities in the sector with presence in both

construction and development businesses

Completed 112 Water and Waste Water projects, 88 Building Construction projects, 15

Irrigation projects, 30 Transportation projects, 34 Industrial projects and 1 Electrical projects.

Diversification Sectoral & geographical presence

Evolved from a consultant to a EPC player and finally a infrastructure developer

- Ramky continues to build on core competencies

Reduces the risk of dependence on any one sector or project and helps in participating in

projects across the country

Visibility of earnings Revenue driven by strong order book

Order book of INR 138781 m as of Dec. 31st , 2011 provides high revenue visibility

Proven execution capabilities with planning and execution expertise, ensuring order

completion within the estimated budget and on time.

For the period ended June 31st Dec., 2011 the company had a order to sales ratio of 6.51x

Parental leverage Experienced management and

marquee investors

Synergistic model leveraging on core construction activities and expertise gained in other

Ramky Group companies to culminate in a efficient development business

Highly experienced professional management team with proven capabilities

Delivered returns to marquee investors including IL&FS (Tara Fund III), International Finance

Corporation & SAPE

25

Key Financials – P&L

Standalone financials

Consolidated financials INRm FY 07 FY 08 FY 09 FY 10 FY 11 FY 12 (9M)

Revenue ** 7384 11164 15560 21631 31470 24502

Growth rate --- 51.19% 39.38% 39.02% 45.49% 32.2%

EBITDA 799 1235 2106 3103 4593 4052

EBITDA margin 10.82% 11.06% 13.53% 14.35% 14.59% 16.54%

PBT 559 868 1301 1902 2960 2094

PBT margin 7.57% 7.78% 8.36% 8.79% 9.41% 8.55%

PAT 387 522 833 1288 2061 1422

PAT margin 5.24% 4.68% 5.35% 5.95% 6.55% 5.80%

•Note: All financials are for Ramky restated

•** : Revenue figures are excluding WIP

Stellar performance continues…

INRm FY 07 FY 08 FY 09 FY 10 FY 11 FY 12 (9M)

Revenue ** 7111 10292 14304 18613 27305 19144

Growth rate 87.27% 44.73% 38.98% 30.12% 46.70% 11.35%

EBITDA 767 1039 1462 2016 2999 2279

EBITDA margin 10.79% 10.10% 10.22% 10.83% 10.98% 11.91%

PBT 534 702 835 1285 2122 1310

PBT margin 7.51% 6.82% 5.84% 6.90% 7.77% 6.84%

PAT 397 516 645 1027 1574 897

PAT margin 5.58% 5.01% 4.51% 5.52% 5.76% 4.68%

26

Particulars Standalone Consolidated

INRm FY 07 FY 08 FY 09 FY 10 FY 11 FY 12

(9M) FY 07 FY 08 FY 09 FY 10 FY 11

FY 12

(9M)

Net worth 2026 2513 3204 4262 8921 9787 2032 2553 4261 5549 10647 12290

Minority Interest -- -- -- -- -- -- 94 665 867 1480 1716 1793

EPS 8.23 10.26 13.04 20.79 29.57 15.68 8.17 10.58 16.86 26.07 38.73 24.86

Long terms Debt 1234 2644 3899 4739 6757 8642 1623 3190 7043 10110 12330 18981

D/E 0.59 1.02 1.2 1.11 0.76 0.88 0.8 1.25 1.65 1.82 1.16 1.54

Fixed Assets 716 688 1365 1386 3653 4227 1373 1546 2740 2822 6595 9298

F.A. / Revenue* 10% 7% 10% 7% 13% 17% 19% 14% 18% 13% 21% 28%

Investments 201 606 792 1078 2750 2152 1 1 976 976 875 907

Net Working Capital 2348 3891 4962 6537 9275 12090 2187 3532 6721 10381 18244 12888

W.C days 121 138 127 128 124 174 108 115 157 175 211 145

Sundry debtors 2398 4479 5648 5744 10614 10597 2143 3780 4423 5020 10114 9883

Debtors Days 123 159 144 113 142 152 106 124 104 85 117 111

Cash 630 495 619 1384 999 722 1122 700 815 1678 2293 1186

Net Debt 604 2149 3280 3355 5758 7920 508 2531 6256 8441 10037 17795

Net Debt/Equity 0.3 0.86 1.02 0.79 0.65 0.81 0.25 0.99 1.47 1.52 0.94 1.45

•* Net of Share Application Money, includes deferred tax asset and receivables under service agreements

Capital management key to high EPS

Key Financials – Balance Sheet

* FA/Revenue is annualized

27

Share Holding Pattern

Our investors

Share Holding pattern as on 31st December, 2011

Category # of shares %

Promoter group(A) 38,238,967 66.85%

Institutions(B)

Mutual Funds/UTI 3,102,418

Financial Institutions/Banks 648,866

FIIs 1,910,491

Venture Capital Funds 289,356

Insurance companies 1,102,955

Sub total(B) 5,951,131 10.40%

Non-Institution (C ) 13,007,693 22.74%

Total public holding(B+C) 18,958,824 33.15%

Total Shares(A+B+C) 57,197,791 100.00%

28

Thank you!

ramky infrastructure limitedramkyinfrastructure.com/docs/pdf/investordesk/ramky investors... · 15...

Documents