Welcome to Investor \ Analyst Meet. Hindustan Construction Co Ltd Q2 FY October 23, 2009

Transcription

1 Welcome to Investor \ Analyst Meet Hindustan Construction Co Ltd Q2 FY October 23, 2009 Analyst presentation September 2009 Page 1

2 Presentation flow HCC \ Lavasa - Quarterly \ Half Yearly Financial Results & Highlights HCC Construction Business - Highlights & Updates HCC Infrastructure - Highlights & Updates HCC Real Estate - Highlights & Updates Lavasa - Highlights & Updates Analyst presentation September 2009 Page 2

3 HCC - Financial Results

4 Key Financial Highlights : Q-2 & H1: FY Company successfully raised QIP of INR 480 crs and used the amount to repay high cost debt. Consequently interest cost (QoQ) has reduced by 18% from Rs crs previous quarter same year to Rs crs this quarter. 2. As compared to the Same Quarter of the previous year Turnover improved by 23.6% to Rs crs from Rs crs Operating margins (EBDITA) is 11.4% at Rs 89.5 crs. v/s 12.8% PAT is at Rs 5.5 crs as against Rs.19.9 crs (includes forex gain of Rs 24.5 crs). Lavasa posted turnover of Rs crs and PAT of Rs 30.5 crs for the quarter (corresponding previous quarter - NIL) 3. As compared to the Half Year of the previous year; Turnover improved by 14.7% to Rs crs from Rs crs Operating margins (EBDITA) is 12.1% at Rs crs. v/s 11.5% PAT is at Rs 23.7crs as against Rs.50.8 crs Lavasa posted turnover of Rs crs and PAT of Rs 56.8 crs for the half year (corresponding previous period - NIL) Analyst presentation September 2009 Page 4

5 Financial Performance Review : Q-2 FY For the Quarter ended 30th September 2009 Q Q Rs in crore % to turnover Rs in crore % to turnover YOY growth % Turnover ( Inclusive of JV ) Turnover (net of JV ) Other Income Construction Cost (Inc. Material ) Employee Cost (8.7) EBIDTA Interest ( Net ) Depreciation Profit / (Loss) Before Tax (70.0) Tax (66.0) PAT (72.3) Analyst presentation September 2009 Page 5

6 Financial Performance Review : H1- FY For the Half year ended 30th September 2009 H H Rs in crore % to turnover Rs in crore % to turnover YOY growth % Turnover ( Inclusive of JV ) Turnover (net of JV ) Other Income Construction Cost (Inc. Material ) Employee Cost EBIDTA Interest ( Net ) Depreciation Profit / (Loss) Before Tax (50.5) Tax (43.5) PAT (53.3) Analyst presentation September 2009 Page 6

7 Lavasa Financial Performance : Q-2 FY For the Quarter ended 30th September 2009 Q2- FY Rs. Crores Income from operation # * Expenditure Operating Expenditure EBT EBT Margin 44.60% Tax PAT # includes other income Rs.0.54 crs * % age completion method Analyst presentation September 2009 Page 7

8 Lavasa Financial Performance : H-1 FY For the Half year ended 30th September 2009 H Rs. crores Income from operation # * Expenditure Operating Expenditure EBT EBT Margin 43.78% Tax PAT # includes other income Rs crs * % age completion method Analyst presentation September 2009 Page 8

9 HCC - Construction business review

10 HCC E&C Structured in business verticals Hydro Water Solutions Transportation Nuclear & Special Projects EPC Dams & Barrages Tunnels Powerhouses Shafts & Penstocks #1 in Hydro Power construction in India 5 out of India s 10 highest concrete dams 2 out of India s 5 largest underground powerhouses over 170 km of tunneling Storage Dams & Barrages Bulk water transmission Canals, Tunnels, Pipelines Pumping Stations Treatment Plants 7 Irrigation Dams 70 Sewerage Treatment Plants 35 Water Treatment plants 18 Barrages Roads Bridges MRTS Tunnels Railways Over 2300 km of highways 300+ bridges India s first two MRTS projects India s first cable stayed sea link Nuclear Power plants Utility Buildings & Industrial Structures Underground Caverns Ports #1 in Nuclear Plant construction in India 11 Nuclear Power plants &18 Thermal Power Plants Lump sum Turnkey EPC Design Build Engineering Centre Executing India s largest EPC Hydro Project Well poised to serve core infrastructure opportunities Analyst presentation September 2009 Page 10

11 Turnover Break-Up Highlights Turnover is higher by 23.6% and 14.7% in as compared to Q2 & H1 respectively YOY 46% Turnover comprises of Power sector (Hydel & Nuclear) EBIDTA improvement in H1 12.1% due to improved mix. Additional 5 Hydel projects are in commencement mode. Transport 29% Q2 - FY Nuclear Power & Sp. Projects and others & EPC 15% Hydro Power 31% Water 25% Analyst presentation September 2009 Page 11

12 HCC E&C- Sales & Order booking Orderbook of Rs.15,542 cr as on 30 th September, 2009; 44% higher on YoY basis Retained strong position in Hydro high margin business Order book composition high for power over 55% HCC well positioned to retain the market share in key infrastructure sectors Analyst presentation September 2009 Page 12

13 HCC E&C Key Positives Nuclear Segment India to add MW of Nuclear power in medium term plan 20+ nuclear reactors to be awarded by Expected market worth crores in next 10 years HCC will benefit from its expertise of building more than 50% of containment structures Transport Segment NHAI bidding activity gaining momentum Large sized projects envisaged Dedicated Freight Corridor (East) project to come up for bidding HCC well experienced to service these sector HCC - AMEC partnership HCC AMEC partnership to offer Consulting and EPC services for the establishment of nuclear power plants in India The HCC AMEC partnership will play a crucial role in fast tracking the new build program by providing flexible and technology independent platforms to reduce the cost of building new nuclear power plants in India New Sectors Indian Aluminum industry is set to grow at 8-10% pa to an installed aluminum capacity of 1.7 to 2 mn MT/A by 2020 * Planned investment in Aluminum sector over next decade US$ 50 Billion * HCC making strategic entry into aluminum industry * source : indiabiznews.com Analyst presentation September 2009 Page 13

14 HCC E&C Current Awarded Projects as on date Dagachhu HEP (2X57 MW), Bhutan Client: Dagachhu Hydro Power Corporation Value: Rs 388 crs Pare HEP (2X55 MW), Arunachal Pradesh Client: NEEPCO Value: Rs 276 crs Gosikhurd HEP (4X6 MW), Maharashtra Client: Vidarbha Irrigation Development corporation Value: Rs 229 crs Bulk Water Transmission,Pkg- NC 25, Gujarat (received in October 09) Client: Gujarat Water Infrastructure Ltd. Value: Rs 168 crs Analyst presentation September 2009 Page 14

15 HCC E&C Current Order position Current position Projects secured worth Rs 1060 crs. L1 in projects worth Rs 963 crs. Bids under active evaluation worth around Rs crs. Major Project in Pipeline worth over Rs crs Risk Factors Floods & unfortunate tragedy impacting political stability in Andhra Pradesh. Analyst presentation September 2009 Page 15

16 Ongoing project highlight Delhi Metro Airline Express Pkg C6, Delhi Completed one of its kind longest tunnel (2.85 km) in an urban area Maroshi to Ruparel Water Supply Tunnel, Mumbai Achieved day lighting of Maroshi to Vakola Stretch (5.83km) Analyst presentation September 2009 Page 16

17 Ongoing project highlight Vizag Cavern Project, Andhra Pradesh Country s first underground rock cavern for strategic crude oil storage (1.33 MMT of crude) Kudankulam Nuclear Power Plant, Tamil Nadu India s largest 2x1000 MW and first Light Water Reactor reactor Received Prashansha Patra from National Safety Council of India Analyst presentation September 2009 Page 17

18 HCC - Infrastructure Development Business

19 Highlights & updates Projects under Operation Nirmal BOT ( Road in Andhra Pradesh, An Annuity project) : Project achieved commercial operation 3 months ahead of schedule. Entitled to early completion Bonus. First annuity payment of Rs 23.8 cr to be received from NHAI along with early completion bonus of Rs 13.3 cr. Projects under Execution Badarpur Elevated Expressway : ( Road connecting Delhi Haryana under BOT ) : Achieved financial closure in FY Construction commenced in January 2009 and around 30% progress already achieved. Scheduled project completion by December Dhule - Maharashtra / MP border Road project ( BOT ): Concession Agreement signed on 24 th June Debt sanction to the required level of Rs 1065 cr received from senior lenders. Financial Closure scheduled by end of December Analyst presentation September 2009 Page 19

20 Nirmal BOT 3 months ahead of schedule PD, NHAI inaugurating operation of Nirmal BOT Completed Project Road Analyst presentation September 2009 Page 20

21 Badarpur Elevated Expressway Work in progress Launching Truss Erection Casting of Pier Analyst presentation September 2009 Page 21

22 Developing Infrastructure Portfolio in Areas of Core HCC Competence Roads Three road projects with aggregate project cost of INR 2,307 Crs (USD 454 MM). Badarpur and Dhule projects are under implementation. Preparing to bid in a big way for BOT Road Projects to be awarded by NHAI. Hydro Power Planning a foray in ownership of Hydro Power projects leveraging HCC s EPC capabilities. Advanced discussions with potential JV partners. Airports Plan to partner with international airport developers to participate in India s next airport privatization projects. BOT Target Asset Size Rs crs to be developed by Analyst presentation September 2009 Page 22

23 HCC Real Estate

24 HCC Real Estate Highlights for Q2 - FY Park, Vikhroli (West): Almost 65% leasing completed (Future group, Orange, Dow Chemicals, KEC International, IBH Business Process Solutions, Jet Airways, Human Factors International,Kasyap I serve,dhl Lemiur Logistics, TAM Media, A 2 Z Hospitality and HCC group). KEC International, Dow Chemicals started operating & others are at fit out stage. Positive market movements for lease premises. Analyst presentation September 2009 Page 24

25 247 Park : Tenants Analyst presentation September 2009 Page 25

26 247 Park : LEED- Gold Certification 247Park Received the prestigious Leadership in Energy and Environmental Design (LEED) Gold Certification in Core and Shell Category. Largest stand-alone building in India to receive this recognition. Analyst presentation September 2009 Page 26

27 247 Park Analyst presentation September 2009 Page 27

28 247 Park : Utility Building Analyst presentation September 2009 Page 28

29 Outlook and Strategy Focus on joint Development with mixed components Select new development projects within the markets in peripheral areas where property markets are undergoing revival (Mumbai suburbs, Thane and Pune) Find opportunities with landlords looking forward to maximize the value through joint development route along with private equity investors (Low upfront investment) Develop Urban Renewal projects (Vikhroli-East and Powai). Expand project pipelines by planning second phase of 247Park Analyst presentation September 2009 Page 29

30 Analyst presentation September 2009 Page 30

31 The Lavasa Vision An Inclusive City Targeted at a population mix across socio economic groups Residences - Studio Apartments, 1 BHK apartments, Villas, Rental Housing Hospitality infrastructure from luxury hotels to budget hotels and serviced apartments Educational facilities, other amenities and social infrastructure for across socio economic spectrum Offering civic structures and amenities to enhance standard of living of residences and visitors Vast Rental housing model to cater to support staff Analyst presentation September 2009 Page 31

32 Lavasa Philosophy A Complete City Live Villas & Apartments Studio & Serviced Apartments Workforce Housing Retiree Housing Family Entertainment Centre Promenade and Marinas Health and Wellness Centres Spiritual Centres 24x7 Power, Water and Connectivity GIS and e-governance Social Infrastructure Work Non polluting industries IT/ITES Biotechnology R&D centres Training Centres Fashion Design Film Production Animation Studios Professional Services Convention Centre Town Support Services Learn Schools and Colleges Management Institutes Executive Education Centres Post Graduation Institutes Adventure Training Institute Vocational Institutes Sports Academy Music Academy Edutainment Park Play Budget to Luxury Hotels Clubs and Resorts Spas Golf Course Multiple Theme Parks Eco Safari Water Sports Adventure Sports Nature Trails Cafes, Restaurants and Shopping centres Multiple Leisure Activities Analyst presentation September 2009 Page 32

33 Lavasa Financial Performance : Q-2 FY Rs. Crores For the Quarter ended 30th September 2009 Q2- FY Rs. Crores Land Sales Sales details Sept.09 Institutional Land Sales Income from operation # * Expenditure Operating Expenditure EBT EBT Margin 44.60% Tax PAT # includes other income Rs crs * % age completion method Residential Land Sales SPV Land Sale Subtotal Land Sales Build Space Sales Apartment Villa Retail, Commercial Affordable rental Housing Hostel Subtotal Build Space Sales Club Membership 2.10 Total Sales Analyst presentation September 2009 Page 33

34 Lavasa - Highlights Lavasa partner base: 1600 residences sold. 28 tie-ups in education, Hospitality and wellness hotel rooms under development students base in education institutes. Successful sales: Continued apart. Sold out in weeks time of release i.e. Sep 09. Pre-sales : Rs Crs. mark Current Rate : Villas : Rs / sq ft for villa + Rs.100 / sq ft for plot area Apartment : Rs / sq ft Analyst presentation September 2009 Page 34

35 Lavasa - Highlights Marketing initiated for Business sales i.e. R&D Center, Training center, corporate facilities.. Non polluting industry. Business sales - advanced by 2 years i.e instead of original plan of 2011! Analyst presentation September 2009 Page 35

36 Lavasa - Highlights Ecole Hoteliere Lavasa : Launch of the new academic calendar by Mr. Mark Torriani, Chairman of the Board, Ecole hoteliere de Laussane Convention Centre by Accor (1500 capacity) - Bookings opened. Games Arcade Operational X-thrill (Full Spectrum managed by Z-Bac ) - Adventure sports commenced. Retail outlets Earthen Oven, Specialty restaurant, Baskin & Robbins operational. Dasvino Town & Country Club by ILC (International leisure club) scheduled launch December Analyst presentation September 2009 Page 36

37 Lavasa - Highlights Institutional/ Corporate Tie-ups I Dreams Studio ( Develop the film studio in association with Pinewood UK ) 5 acres for IT training Centre TOI (Times of India) training center Oakwood (world s leader in serviced apartments) - MOU signed the for 150 service apartment. AIPL, Bruno Petronis srl (Italy) & Nurus (Turkey) JV to develop a 100,000 sqft. furniture assembly unit and showroom. Faldo Academies - Definitive Agreement signed for golf academy. Faldo Design - Agreement signed for championship signature 18-hole golf course. Analyst presentation September 2009 Page 37

38 Lavasa - Highlights Wipro JV signed to plan, implement and manage information and communication technology (ICT) services across Lavasa i.e. e-governance Voice-data-video and value added services ICT operations Digital lifestyle Security and monitoring Analyst presentation September 2009 Page 38

39 Lavasa Investments as on date Andhra & United Bank of India invested Rs. 75 crs. As such total of Crs. investment for 6.56% equity stake in Lavasa from: Axis Bank 250 Crs. Bank of India 150 Crs. Allahabad bank 50 Crs. BCCL (Bennett, Coleman & Co. Ltd.) Cr. Indusind Bank - 50 Crs. Andhra & UBI 75 Cr. Analyst presentation September 2009 Page 39

40 Lavasa Tie-ups Tourism, Hospitality & Leisure Education Health& Wellness 1000 rooms 2 million visitors 10,000 students tied up Healthcity Analyst presentation September 2009 Page 40

41 Lavasa Marketing Activities Ads and Advertorials positioning Lavasa as a city in leading publications In leading publications TOI, DNA, Maharashtra Times, Economic Times Western Business Review, etc. and in-flight magazines Analyst presentation September 2009 Page 41

42 Lavasa Media Coverage Coverage on Biomimicry initiatives done by Lavasa in Sakal Times, DNA, etc. Media Interaction with Chip Crawford, HOK Planning Group Analyst presentation September 2009 Page 42

43 Dasve under Development Analyst presentation September 2009 Page 43

44 Residential Analyst presentation September 2009 Page 44

45 Residential Analyst presentation September 2009 Page 45

46 Town Centre & Promenade Analyst presentation September 2009 Page 46

47 Administrative Building Analyst presentation September 2009 Page 47

48 Information Centre Analyst presentation September 2009 Page 48

49 Convention Centre Convention Center by Accor (1500 capacity) Scheduled launch March 10 Illustrative image Analyst presentation September 2009 Page 49

50 Hotels and Retreats : Operational Ekaant The Retreat Analyst presentation September 2009 Page 50

51 Hotels and Retreats : Operational Waterfront Shaw Serviced Apartments Analyst presentation September 2009 Page 51

52 Hotels and Retreats : Operational Fortune Select Dasve by the ITC group Analyst presentation September 2009 Page 52

53 Hotels and Retreats : Under Development Mercure Scheduled launch Jan 10 Mockup room Illustrative image Analyst presentation September 2009 Page 53

54 Hotels and Retreats : Under Development Dasvino Town & Country Club Scheduled launch Dec 09 By ILC (International leisure club) Illustrative image Analyst presentation September 2009 Page 54

55 Games Arcade Operational Games Arcade for kids A variety of games like Neo Arcade, Electronic darts, Photo play etc. Analyst presentation September 2009 Page 55

56 Games Arcade Operational Games like Bowling, shooting range. Analyst presentation September 2009 Page 56

57 Ecole Hoteliere Lavasa : Batch commenced July 2009 Analyst presentation September 2009 Page 57

58 F&B Outlets American Diner Operational Baskin & Robbins Operational Analyst presentation September 2009 Page 58

59 F&B Outlets Specialty Restaurant - operational Analyst presentation September 2009 Page 59

60 Apollo Health-City 50 Bed Hospital scheduled launch end acres health-city under planning Illustrative Image Apollo Hospital Under Development Analyst presentation September 2009 Page 60

61 Power & Communication Transmission Lines Server Room Analyst presentation September 2009 Page 61

62 Water & Sewage Treatment Water Treatment Plant Sewage Treatment Plant Analyst presentation September 2009 Page 62

63 Dams Dasve dam Operational Gadle dam Under development Analyst presentation September 2009 Page 63

64 Lavasa Bamboocrafts Limited First in India - promoting the use of bamboo in all its uses Sustainable, low carbon emission State of the art, bamboo craft factory Furniture and decorative artifacts made out of locally available bamboo Analyst presentation September 2009 Page 64

65 Viewing Galleries & Nallah Beautification Analyst presentation September 2009 Page 65

66 Nature Trail Analyst presentation September 2009 Page 66

67 Water Sports Analyst presentation September 2009 Page 67

68 Lavasa City : 1 st Town getting ready.. Facilities operational under different verticals Hospitality: Ekaant The Retreat ITC Fortune Select Dasve Waterfront Shaw Serviced Apartments Rental Housing Food and Beverage Outlets: American Diner Baskin Robbins Kiosk Amul Dairy Tourism Activities: Lakeshore Water sports Train on Wheels Trampoline Games Arcade Nature Trails Gardens Viewing Galleries Parks and Full Spectrum Adventure Academy Retail: Union Bank of India Bamboosa Apollo Pharmacy Analyst presentation September 2009 Page 68

69 Thank you Questions please