NCC LIMITED

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NCC LIMITED
NCC LIMITED
INVESTOR PRESENTATION
May 2015
DISCLAIMER
No representation or warranty, express or implied, is made as to, and no reliance should be placed on, the
fairness, accuracy, completeness or correctness of the information or opinions contained in this presentation. Such
information and opinions are in all events not current after the date of this presentation. Certain statements made in this
presentation may not be based on historical information or facts and may be "forward looking statements" based on the
currently held beliefs and assumptions of the management of NCC, which are expressed in good faith and in their opinion
reasonable, including those relating to NCC’s general business plans and strategy, its future financial condition and growth
prospects and future developments in its industry and its competitive and regulatory environment.
Forward-looking statements involve known and unknown risks, uncertainties and other factors, which may cause the actual
results, financial condition, performance or achievements of NCC or industry results to differ materially from the
results, financial condition, performance or achievements expressed or implied by such forward-looking statements, including
future changes or developments in NCC’s business, its competitive environment and political, economic, legal and social
conditions. Further, past performance is not necessarily indicative of future results. Given these risks, uncertainties and other
factors, viewers of this presentation are cautioned not to place undue reliance on these forward-looking statements. NCC
disclaims any obligation to update these forward-looking statements to reflect future events or developments.
This presentation is for general information purposes only, without regard to any specific objectives, financial situations or
informational needs of any particular person. This presentation does not constitute an offer or invitation to purchase or
subscribe for any securities of NCC by any person in any jurisdiction, including India and the United States. No part of it
should form the basis of or be relied upon in connection with any investment decision or any contract or commitment to
purchase or subscribe for any securities. NCC may alter, modify or otherwise change in any manner the content of this
presentation, without obligation to notify any person of such change or changes. This presentation may not be copied or
disseminated in any manner.
This presentation does not constitute an offer or invitation to purchase or subscribe for any securities in any
jurisdiction, including the United States. No part of its should form the basis of or be relied upon in connection with any
investment decision or any contract or commitment to purchase or subscribe for any securities. None of our securities may be
offered or sold in the United States without registration under the U.S. Securities Act of 1933, as amended, except pursuant to
an exemption from registration there from. This presentation is confidential and may not be copied or disseminated, in whole
or in part, and in any manner
Copyright © 2011 NCC Limited
2
Table of Contents
Page No.
1
Company Overview
4
2
Construction Business
7
3
Development Business
14
4
Financials
18
5
Key Highlights
21
6
Annexure
23
Copyright © 2011 NCC Limited
3
COMPANY OVERVIEW
Company Snapshot
Business Structure
One of the largest Indian construction companies in terms
of revenues
Presence across buildings & housing, transportation, water
& environment, irrigation, electrical, metals, mining, power
and railways
Well diversified operations having a foothold in every
segment of construction sector
Market capitalization: US$ 834.56 Mn as of May 14, 2015
(Source: Reuters)
•
•
•
•
Construction
Key Milestones
IPO
ISO 9001-2000
Certified
z
1994-95
z z
1992
z
NCC set up as
partnership firm
z z
2007
z
2005
z
z
2009
2011
Order book
crosses
of $ 70 Mn Rs. 220 Bn
QIP Issue
Equity
Copyright © 2011 NCC Limited
International
Real Estate
Company rebranded
as NCC
Turnover crosses
Rs. 10 Bn
Turnover crosses
Rs. 1 Bn
Infrastructure
GDR Issue
2004-05
2001
Domestic
Shareholding Pattern (as on 31.03.2015)
of $ 120 Mn
1978
Development
z
2014
Promoters
20.65%
Indian Public
36.84%
Promoters
MFs/DFIs
MFs/DFIs
12.40%
FIIs
Indian Public
Rights Issue
of Rs. 6 Bn
FIIs
30.11%
investment
by Blackstone
(Based on shareholding data as disclosed to Stock Exchanges)
5
Experienced and Professional Management
Experienced
Management and
Skilled workforce
Major Investors
•
•
4,545 employees including 3,000 engineers
Focus on skills improvement through training
•
•
Blackstone
Rakesh Jhunjunwala
•
Focus on timely execution has been rewarded by clients in the form of early completion bonuses
¾ Kalina-Vakola flyover, Mumbai
¾ National Academy of Construction, Hyderabad
¾ Times of India Print City, Navi Mumbai
•
•
Board comprises of 14 directors, including 5 independent directors and 3 nominee directors
Nomination & Remuneration Committee/Audit Committee/Shareholder’s Grievance Committee/
Corporate Social Responsibility Committee headed by independent directors
Client Recognition
Corporate Governance
Select Awards and Accolades
Indian Institute
of Bridge
Engineers
„
2006: “Fastest
Growing
Construction
Company in
India”
„
2007: “2nd
largest
construction
company in
India”
„
Forbes Asia,
2005: The
only Indian
construction
company to
be One of the
200 "Best
Under a
Billion" listed
companies in
Asia Pacific
Copyright © 2011 NCC Limited
„
2004:
“Excellent
Aesthetics
Matching with
Environment”
for
transportation
project at
Latur,
Maharashtra
„
Outstanding
Concrete
Structure of
Year for Main
Athletic Stadium,
Gachibowli,
Hyderabad
(2003) and for
Shilpakalavedika
, Hyderabad
(2002)
„
1999: Safety
Certificate
for
maintaining
highest
standards of
safety while
constructing
factory at
Damanjodi,
Orissa
„
2010: Company’s Annual
Report and Accounts for
the year 2008-09 has
been awarded Certificate
of Merit the “ Best
Presented Accounts and
Corporate
Governance
Disclosures
Awards
2009” by the South Asian
Federation
of
Accountants(SAFA)
„
2010: Company’s Annual
Report and Accounts for
the year ended 31st
March, 2009 have been
“adjudged as the 2nd
best under the category
Infrastructure
&
Construction Sector by
ICAI
Awards
for
Excellence in Financial
Reporting”
6
CONSTRUCTION BUSINESS
Operating Divisions
Buildings &
Housing
Housing projects
Industrial buildings
IT Parks
Shopping malls
Sports complexes
Hotels
Hospitals
•
Highways
•
•
Bridges, flyovers
and elevated
corridors
Water supply
projects
•
Treatment plants
•
Underground
drainages
•
Realignment of
existing highways
and construction of
bypasses
•
•
Electrical
•
BOP for thermal and
hydro Projects
•
EPC for steel plant
projects
Tunneling for Hydro
Electric Plants
•
Balance of plant works
pertaining to ferrous and
non-ferrous projects
Irrigation
International
Transmission and
distribution lines and
sub-stations
•
Dams
•
Buildings
•
Lift irrigation
•
Roads
•
Project electrification
•
Gravity irrigation
•
Water
•
System
improvement
projects
Metals
Power
New Divisions
•
•
•
•
•
•
•
Water &
Environment
Roads
Mining
Railways
•
Overburden removal
•
Track Laying
•
Coal excavation
•
Signaling &
Communication
•
Railway Siding
Diversified operations across 10 divisions help mitigate business risks.
Copyright © 2011 NCC Limited
8
Size & Scale
•
•
•
•
•
Among the top 5 construction companies in India in terms of
revenues
Our size and scale help us pre-qualify for larger projects
Number of offices across India enables active participation in
project bids
Backed by strong execution teams, currently executing around
200 projects at various locations
Demonstrated ability to bid for and win large projects
¾
UP Expressways Development Authority : Rs. 16,748 Mn.
¾
Purvanchal Vidyut Vitaran Nigam Ltd : Rs. 3,399 Mn.
¾
JICA Assisted Agra Water Supply : Rs. 3,354 Mn.
¾
Ekana Sports City Pvt Ltd : Rs. 2,500 Mn.
¾
Construction of Batinah Expressway Road Project: Rs. 22,876 Mn.
Network of our Offices
Delhi
Lucknow
Bhopal
Ahmedabad
Kolkata
Order Book Remains Robust
2.7x
2.7x
3.8x
3.2x
2.1x
209.6
202.0
185.5
153.7
FY10
Bhubaneshwar
3.4x
193.2
161.8
FY11
FY12
FY13
FY14
Mumbai
FY15
Bangalore
Hyderabad
Kochi
Chennai
Order Book (Rs. Bn)
Overseas Offices
Dubai
Copyright © 2011 NCC Limited
Muscat
Doha
9
Diversified Order Book
Buildings & Housing
Water & Environment
1998
1978
1999
Roads,
Electrical
International
2004
Irrigation
Mining
2007
2005
Power, Metals
(As on March 31, 2015)
(As on March 31, 2015)
Buildings+Roads
Water & Environment+Railways
45%
Buildings+Roads
8%
16%
4%
Railways
Total Turnover: Rs. 90,140 Mn
Total Order Book: Rs. 193,230 Mn
7%
30%
Electrical
Irrigation
37%
Irrigation
Metals +Power+Mining
Copyright © 2011 NCC Limited
Water & Environment+Railways
Electrical
7%
20%
2009
2008
15%
International
4% 6%
Metals +Power+Mining
International
10
Segment Wise Order book
Segment-Wise Order Book as on 31.03.2015
Rs. in Billion
Water &
Environment+ Electrical Irrigation Metals Power Mining International
Railways
Particulars
Buildings &
Roads
Orders on Hand as
on 01.04.2014
77.43
51.53
11.14
11.59
2.04
38.21
3.59
14.03
209.56
37%
25%
5%
6%
1%
18%
2%
7%
100%
35.50
1.81
8.22
0.51
0.60
5.08
-1.56
23.65
73.81
48%
2%
11%
1%
1%
7%
-2%
32%
100%
26.74
13.83
5.17
3.48
1.86
30.92
0.80
7.33
90.14
30%
15%
6%
4%
2%
34%
1%
8%
100%
86.19
39.51
14.19
8.62
0.78
12.37
1.23
30.34
193.23
45%
20%
7%
4%
0%
6%
1%
16%
100%
Add: New Orders
Received
Less: Value of
Works Executed
Balance as on
30.09.2014
Copyright © 2011 NCC Limited
TOTAL
11
International Presence
• NCC has presence in Oman and UAE through subsidiaries
– NCCL International LLC in Muscat
– Nagarjuna Contracting Co. LLC in Dubai
• Key focus areas internationally are also built around expertise
gained in the domestic market
– Transportation( Roads & Bridges)
– Water & Sanitation
– Buildings
• NCC is opportunistically trying to build its international presence in
Saudi Arabia, GCC and some other North African Nations
• International projects are typically higher ROCE projects
• NCC International LLC achieved a construction turnover of Rs. 5970
mn in FY15
• Nagarjuna Contracting Co. LLC achieved a construction turnover of
Rs. 1220 mn in FY15
DEWA water pipeline, Dubai: Rs. 7,054 Mn
(completed)
588 villas at Al Ain, Abu Dhabi: Rs. 6,828 Mn
(completed)
Dubai
Abu Dhabi
z
Highlights of Our International Business
Contracts won so far
Rs. 104,912 Mn
Rs. 7,330 Mn
FY15 Revenues
8 % of total revenues
Outstanding order book
Rs. 30,340 Mn
(As on March 31, 2015)
16% of total order book
zz
z
Sohar
Muscat
Quriyat
Water pipeline, Sohar City: Rs. 773 Mn
• Batinah Expressway Road Project: Rs. 22,876 Mn
• Al Batinah Coastal Road : Rs. 18,065 Mn
• Al Amerat Quriyat Road (70 km): Rs. 6,781 Mn
(completed)
• Wadi Adai Amerat Road (7.5 km): Rs. 6,495 Mn
718 villas at Quriyat City: Rs. 8,944 Mn
Copyright © 2011 NCC Limited
(completed)
12
DEVELOPMENT BUSINESS
Current BOT Portfolio
NCC Ltd.
67.71%
NCC Infra
Roads
33%
Brindavan Infrastructure
Company Ltd (~63 km)
51%
Western UP Tollway
Limited (~79 km)
38%
Bangalore Elevated
Tollway Limited(~50 km)
64%
OB Infra Limited (~63 km)
48%
Pondicherry – Tindivanam
Tollway Limited (~36 km)
Copyright © 2011 NCC Limited
Power
51%
51%
NCC Power Project (1,320
MW)
Himalayan Green Energy
Pvt Ltd (280 MW)
14
Execution on Track
Projects
Revenue
Model
Partners
Project Cost
(Rs. Mn)
Investment by
NCC(2)
COD
Current Status (2)
(Rs. Mn)
Roads
Toll
IL&FS E&C,
Soma
9,921
1,597
April 2010
Toll collection has improved to Rs. 30
lacs per day
Annuity
KMC
5,896
940
June 2009
COD achieved w.e.f 30.06.2009
Annuities being received regularly
Western UP Tollway
Toll
IL&FS E&C ,
Gayatri
7,545
1,111
April 2011
Revenue generation started from April
2011. Toll collection of Rs. 27 Lacs per
day
Pondicherry – Tindivanam
Toll
IL&FS E&C ,
Terra
3,621
737
Dec 2011
Toll collection is Rs. 3.0 Lacs per day
26,983
4,385
70,470
4,720
TOTAL (Power)
70,470
4,720
GRAND TOTAL
97,453
9,105
Bangalore Elev. Tollway
OB Infra
TOTAL ( Roads)
NCC Power Project
(1) Indicative
PPA /
Merchant
Gayatri
June
2016*
Work at Project Site progressing as per
schedule - 76% Completed
(2) As on March 31, 2015. Includes loan also (*) Expected COD
Copyright © 2011 NCC Limited
15
Real Estate Projects
•
•
•
•
•
•
•
Real estate development spearheaded by NCC
Urban Infrastructure Ltd
17 projects planned in the Group
– 8 projects are ongoing currently
Presence across 6 cities in India and Dubai
Acreage ~ 245 acres
No fresh investments from parent company in
real estate
NCC Harmony, Dubai
– Construction of twin towers for 1.5 Mn sft
of mixed development at Dubai Biotech &
Research Park
– Estimated project cost ~ AED 1,063Mn
NCC Ltd.
Promoters
20%
80%
NCC Urban
JHLP
Tellapur Technocity
Real Estate SPVs
NCC Vizag Urban
Held directly by NCC Ltd.
NCC Urban
•
Turnover for FY15 - Rs. 2,437.30 Mn
•
Net Profit for FY15 - Rs. 46.20 Mn
Copyright © 2011 NCC Limited
16
FINANCIALS
Standalone Financials
Revenues (Rs. Mn)
Margins
9.6%
9.1%
82,969
7.8%
7.4%
50,740
57,249
52,505
6.6%
61,173
3.2%
1.1%
0.7%
FY11
FY12
FY13
FY14
FY15
FY11
FY12
FY13
FY14
EBITDA Margin
Return on Equity (1)
35000
13.0%
25000
6.5%
20000
10000
5.2%
3.4%
24,085
5000
24,770
0
FY11
FY12
FY13
Networth (Rs.Mn)
(1)
32,312
25,263
FY14
14.0%
30000
12.0%
25000
10.0%
20000
8.0%
15000
6.0%
PAT Margin
1.2
1.0x
0.9x
RoE (%)
1
0.9x
0.8
0.6
10,001
22,345
0.4
0.2
2.0%
5000
0.0%
0
FY15
1.0x
0.6x
10000
4.0%
3.1%
24,200
FY15
Leverage Position
30000
15000
1.3%
0.7%
22,250
24,746
19,951
FY13
FY14
FY15
0
FY11
FY12
Total Debt (Rs.Mn)
D/E (x)
ROE = PAT / Average Equity (Net worth less investments)
Copyright © 2011 NCC Limited
18
Consolidated Financials
Margins
Consolidated Revenues (Rs. Mn)
13.3%
11.8%
11.5%
95,129
62,298
69,684
66,686
10.5%
10.1%
74,632
3.6%
0.8%
FY11
FY12
FY13
FY14
FY15
FY11
0.8%
FY12
FY13
0.6%
0.0%
FY14
EBITDA Margin
FY15
PAT Margin
Leverage Position
70000
60000
2.5
2.2x
1.8x
2
50000
1.4x
1.4x
1.5
40000
30000
45,741
1.0x
57,707
1
20000
0.5
10000
39,086
38,953
33,897
FY13
FY14
FY15
0
0
FY11
FY12
Total Debt (Rs.Mn)
Copyright © 2011 NCC Limited
D/E (x)
19
KEY HIGHLIGHTS
NCC : Major Player in an Attractive Industry
1
Size and scale of operations; diversified order book of Rs. 193.23 Bn
2
Track record of timely, effective and quality project execution
3
Seeking to strengthen foothold in international business
4
Experienced and Professional team
5
Strong financials
Copyright © 2011 NCC Limited
21
ANNEXURE
Divisional Performance (1)
Buildings & Housing + Roads + Oil & Gas(Rs. Mn)
Water & Environment + Railways (Rs. Mn)
86,190
14,730
23,395
FY11
26,601
FY12
26,050
FY13
23,170
FY14
12,647
10,804
FY11
FY12
14,550
13,830
39,510
FY14
FY15
Orderbook
26,740
FY15
FY13
Orderbook
Irrigation (Rs. Mn)
Electrical (Rs. Mn)
14,190
5,170
2,580
FY11
2,600
FY12
3,470
FY13
3,970
3,480
FY14
FY15
8,620
Orderbook
FY11
4,430
FY12
2,770
FY13
3,550
FY14
5,170
FY15
Orderbook
(1) Order book as on March 31, 2015
Copyright © 2011 NCC Limited
23
Divisional Performance (1)
Mining (Rs. Mn)
Metals (Rs. Mn)
5,616
2,590
FY11
3,370
FY12
860
FY13
2,012
640
FY14
800
FY15
5,620
1,650
1,860
FY14
FY15
1,230
Orderbook
FY11
FY12
FY13
30,920
30,340
8,650
8,170
8,890
Orderbook
Power (Rs. Mn)
International (Rs. Mn)
11,270
780
12,370
7,330
13,400
FY11
FY12
FY13
FY14
FY15
Orderbook
1,670
5,000
FY11
FY12
6,830
FY13
FY14
FY15
Orderbook
(1) Order book as on March 31, 2015
Copyright © 2011 NCC Limited
24
Real Estate Portfolio
City
Percentage
holding
Type of Development
Acreage
Built up Area
(Mn Sqft.)
Current Status
Hyderabad
70%
Residential
9.5
1.16
Ongoing
Ranchi
88%
Residential
56.44
2.55
Phase 1 Completed
and Phase 2 yet to
commence
Meadows
Bangalore
60%
Residential
8.00
0.65
Completed
Meadows II
Bangalore
-
Residential
5.83
0.79
Ongoing
Serene
Bangalore
62%
Residential
1.75
0.10
Completed
Aster Park
Bangalore
80%
Residential
3.20
0.31
Completed
Maple Heights II
Bangalore
100%
Residential
2.13
0.17
Completed
Green Valley
Cochin
100%
Residential
0.89
0.18
Completed
Laurel
Cochin
100%
Residential
1.24
0.16
Completed
NCC Urban Green
Province
Bangalore
75%
Residential
22.61
0.41
Ongoing
Pallavaram Project
Chennai
100%
Residential
8.00
0.90
Yet to commence
Bangalore
50%
Residential
12.00
0.25
Ongoing
Park Square
Guntur
64%
Residential
2.00
0.23
Ongoing
MunneKollal
Bangalore
50%
Commercial
2.00
0.22
Yet to commence
Projects
NCC Urban
Residency, Gachibowli
NGHC
NCC Urban Mist Woods
Copyright © 2011 NCC Limited
25
Real Estate Portfolio
Projects
City
Percentage
holding
(approx.)
Built up Area
(approx. Mn
Sqft.)
Current Status
Residential & Commercial
4
1.45
Ongoing
Type of Development
Acreage
NCC Ltd.
NCC Harmony
Dubai
JHLP
Hyderabad
25%
Residential & Commercial
6
0.90
Ongoing
Tellapur Technocity
Hyderabad
26%
Residential & Commercial
100
7.5
Yet to commence
Gajularamaram
Hyderabad
75%
Residential
-
4.38
Yet to commence
NCC Vizag Urban
Visakhapatnam
100%
Residential & Commercial
97
4.9
Yet to commence
Copyright © 2011 NCC Limited
26
Thank you