Ncc Limited · NSE:NCC
Ncc — Nagarjuna Construction Company — Investor Presentation (November 2010)
32 slides from Ncc's investor presentation, November 2010
Slide 1: Nagarjuna Construction Company Limited Investor Presentation
Nagarjuna Construction Company Limited Investor Presentation November 2010
Slide 2: Disclaimer
Disclaimer No representation or warranty, express or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, accuracy completeness or correctness of the information or opinions contained in this presentation. Such information and opinions are in all events not current af
Slide 3: Table of Contents
Table of Contents Page No. 1 Company Overview 4 2 Construction Business 8 3 Development Business 14 4 Financials 18 5 Industry Overview 21 6 Key Highlights 25 7 Annexure 27 3
Slide 4: Company Overview
NCC Company Overview
Slide 5: Company Snapshot
Company Snapshot One of the largest Indian construction companies in Business Structure terms of revenues Presence across buildings & housing, transportation, water & environment, irrigation and electrical segments Entry into new segments such as oil & gas, metals, Construction Development mining, p
Slide 6: Business Strategy
Business Strategy Enhance Execution Capabilities Consistently deliver quality product Cost effective and timely completion Training staff for continual improvement to increase capabilities Continue to update and implement technologies and procedures in line with international standards Increased Foc
Slide 7: Experienced and Professional Management
Experienced and Professional Management 5,216 employees including 3,000 engineers as on Sep 30, 2010 Experienced ESOP scheme introduced in 2004 to help attract, motivate and retain employees, substituted with ESOP Management and compensatory incentive scheme in 2007 Skilled workforce Focus on skills
Slide 8: Construction Business
NCC Construction Business
Slide 9: Operating and New Divisions
Operating Divisions Buildings & Water & Transportation Electrical Irrigation Housing Environment Housing projects Highways Water supply Transmission and Dams projects distribution lines Industrial buildings Bridges, flyovers Lift irrigation and elevated Treatment plants and sub-stations IT Parks Gra
Slide 10: Size & Scale
Size & Scale Among the top 5 construction companies in India in terms of revenues Executing Projects Across India Backed by strong execution team Demonstrated ability to bid for and win large projects Delhi Devadula Lift irrigation Scheme, Andhra Pradesh: ` 9,246 Mn Lucknow SAIL-IISCO expansion proj
Slide 11: Diversified Order Book
Diversified Order Book Buildings & Housing Water & Environment International Mining 1998 2004 2007 2009 1978 1999 2005 2008 Transportation, Irrigation Power, Metals, Oil & Gas Railways Electrical Stability & flexibility in the business model Leverage to deploy machinery and personnel across division
Slide 12: Moving Up the Value Chain
Moving Up the Value Chain S. No. Division Key Projects Won / Completed 1. Power EPC order for KVK Nilanchal Power Project (1 x 350 MW): ` 8,995 Mn 2. Metals SAIL-IISCO IISCO expansion project at Burnpur, West Bengal: ` 15,722 Mn Blast hole drilling, controlled blasting, excavation, loading, transpor
Slide 13: International Presence
International Presence NCC has an presence in Oman and UAE through Highlights of Our International Business subsidiaries NCCL International LLC in Muscat Contracts won so far ` 62,864 Mn Nagarjuna Contracting Co. LLC in Dubai ` 11,280 Mn Key focus areas built around domestic expertise FY10 Revenues
Slide 14: Development Business
NCC Development Business
Slide 15: Current BOT Portfolio
Current BOT Portfolio NCC Ltd. 100% Focus on NCC Infra Long term infra projects Stable revenue streams Roads Power 33% Brindavan 67% Himachal Sorang Infrastructure (~63 km) (100 MW) 51% Western UP Tollway 54% Himalayan Green (~79 km) (280 MW) 40% Bangalore Elevated 100% NCC Power Project Tollway (~5
Slide 16: Execution on Track
Execution on Track Equity – NCC Equity Project Cost Projects Revenue Model Partners Share Invested(2) Target COD Current Status (` ` Mn) (` ` Mn) (` ` Mn) Roads Project Operational Brindavan Infrastructure Annuity Maytas, KMC 2,475 150 150 Jun 2006 ,Revenue generation since last 4 years Project Oper
Slide 17: Real Estate Projects
Real Estate Projects Real estate development spearheaded by NCC Urban NCC Ltd. Promoters Infrastructure Ltd 80% 20% 17 projects planned in the Group 12 projects are ongoing currently NCC Urban Presence across 6 cities in India and Dubai Acreage ~ 410 acres JHLP No fresh investments planned in real e
Slide 18: Financials
NCC Financials
Slide 19: Standalone Financials
Standalone Financials Revenues (Rs. Mn) Margins CAGR 27% 10.3% 10.5% 10.1% 47,780 9.8% 9.0% 9.1% 41,556 34,785 22,836 5.6% 5.2% 29,002 4.7% 4.8% 18,425 3.7% 3.8% FY06 FY07 FY08 FY09 FY10 H1FY11 FY06 FY07 FY08 FY09 FY10 H1FY11 EBITDA Margin PAT Margin Return on Equity (1) Leverage Position 25,000 25.
Slide 20: Consolidated Financials
Consolidated Financials Consolidated Revenues (Rs. Mn) Margins CAGR 34% 12.3% 11.8% 58,970 10.9% 10.5% 48,023 9.9% 28,309 8.9% 36,590 29,520 5.6% 4.6% 4.8% 18,425 3.9% 4.0% 3.3% FY06 FY07 FY08 FY09 FY10 H1FY11 FY06 FY07 FY08 FY09 FY10 H1FY11 EBITDA Margin PAT Margin BOT/BOOT Asset Size (Rs. Mn) Leve
Slide 21: Industry Overview
NCC Industry Overview
Slide 22: Indian Economy
Indian Economy GDP Growth in CY 09 (1) Fastest growing economy after China 8.5% Changing composition of GDP 5.4% 5.0% Reduced dependence on agriculture and growing industrial and services sector Next phase of growth expected to come from rural markets Per capita income grew by 50% over the last 10 y
Slide 23: Growth Potential of Construction Industry
Growth Potential of Construction Industry Total Construction Spend (` ` Bn) Infrastructure Investments 5,222 Roads: Investments to pick- up momentum through award of 4,879 new BOT projects 4,296 3,506 3,154 Irrigation: Driven by state governments 2,945 2,464 2,079 Power: Private sector capacity addi
Slide 24: Next Wave of Growth in Infrastructure BOT
Next Wave of Growth in Infrastructure BOT PPP model to continue to increase for infra projects 80 7,200 Award of projects to pick up pace with the stability in new 60 3,700 government and policy actions 40 3,200 2,900 Model concession agreements 20 800 400 Viability gap funding, 100% FDI under autom
Slide 25: Key Highlights
NCC Key Highlights
Slide 26: NCC: Major Player in an Attractive Industry
NCC: Major Player in an Attractive Industry 1 Size and scale of operations; diversified order book of Rs. 160 Bn 2 Track record of timely, effective and quality project execution 3 Entry into high margin and specialized construction segments / projects 4 Seeking to strengthen foothold in internation
Slide 27: Annexure
NCC Annexure
Slide 28: Divisional Performance
Divisional Performance (1) Buildings & Housing (` ` Mn) Transportation (` ` Mn) Revenue CAGR 29% Revenue CAGR 7% 52,600 9,910 7,805 7,310 5,300 6,461 14,570 4,011 12,930 1,980 9,260 7,010 7,246 5,256 FY06 FY07 FY08 FY09 FY10 H1FY11 Orderbook FY06 FY07 FY08 FY09 FY10 H1FY11 Orderbook Water & Environm
Slide 29: Divisional Performance
Divisional Performance (1) Irrigation (` `. Mn) Metals (` ` Mn) Revenue CAGR 234% Revenue CAGR 8% 5,620 14,310 4,030 2,875 1,860 1,680 1,680 2,656 1,383 1,681 1,470 FY06 FY07 FY08 FY09 FY10 H1FY11 Orderbook FY06 FY07 FY08 FY09 FY10 H1FY11 Orderbook International (` ` Mn) Power (` ` Mn) Revenue CAGR
Slide 30: Divisional Performance
Divisional Performance (1) Other New Divisions* (` `. Mn) Revenue CAGR 1% 10,800 1,120 840 1,090 450 FY06 FY07 FY08 FY09 FY10 H1FY11 Orderbook (1) Order book as on Sep 30, 2010; * - consists of Oil & Gas, Mining and Railways division 30
Slide 31: Real Estate Portfolio Details
Real Estate Portfolio Details Type of Builtup Area Projects City Percentage holding Acreage Current Status Development (Mn Sqft.) NCC Urban Gachibowli Hyderabad 70% Residential 9.24 1.16 Ongoing NGHC Ranchi 88% Residential 56.44 1.75 Ongoing Meadows Bangalore 60% Residential 8.00 0.65 Ongoing Premie
Slide 32: Thank You
Thank You
Nagarjuna Construction Company — Investor Presentation (November 2010) on 6ix