Sepc Limited · NSE:SEPC
Sepc — Shriram EPC — 15M ended June 2013 Earnings Presentation
25 slides from Sepc's earnings presentation, August 2013
Slide 1: Quarter & 15 months ended June 30, 2013 Investor Presentation
Quarter & 15 months ended June 30, 2013 Investor Presentation
Slide 2: Disclaimer
Disclaimer Some of the statements in this presentation that are not historical facts are forward looking statements. These forward-looking statements include our financial and growth projections as well as statements concerning our plans, strategies, intentions and beliefs concerning our business an
Slide 3: Contents
Contents Key Highlights 5 Key Strengths 6 1 Perspectives Order Book 7 Track Record 8 Sale of Stake in SJCL 10 Corporate 2 Exiting Non- core Investments 11 Developments Other Operational Developments 12 Apr’13 - Jun’13 Highlights 14 Financial 3 Abridged P&L 15 Highlights Abridged Balance Sheet 16 Bus
Slide 4: Key Perspectives
Key Perspectives Section-1
Slide 5: Key Highlights
Key Highlights Focused EPC service provider: Following the sale of stake in Subsidiary / Associate Companies to SIHL - SEPC now focused on core EPC business Exits Cement business: Concludes sale of Sree Jayajyothi Cements to MHIL (50:50 JV of CRH Plc., Ireland & My Home Group, Hyderabad) Retir
Slide 6: Strengths
Strengths Extensive experience in process and SEPC offers high value solutions in niche metallurgy, construction of power segments including process & metallurgy, plants, water sanitation and waste Diversified municipal services, thermal power, water treatment, and mineral Business renewable energy,
Slide 7: Order Backlog
Order Backlog Order Backlog (` Cr.) 5,000 4,053 4,080 4,100 4,000 2,957 2,845 3,000 2,000 1,000 30-Jun-12 30-Sep-12 31-Dec-12 31-Mar-13 30-Jun-13 The order book was at `4,100 crore on June 30, 2013 compared to `4,080 crore as on March 31, 2013 and `4,053 crore as on Dec 31, 2012 . Key orders receive
Slide 8: Track Record
Track Record Revenues 2000 CAGR 42.20% 1,705* Revenues of `1,705 Cr. in FY 1,311 1,382 2013* 1500 ` Crore 1,111 919 1000 646 CAGR of 42.20% for the period 500 296 145 FY2006 – FY2013* 0 FY06 FY07 FY08 FY09 FY10 FY11 FY12 15M FY13 EBIT 350 321* CAGR 56.45% EBIT of `321 Cr. in FY 2013* 300 248 233 250
Slide 9: Corporate Developments
Corporate Developments Section-2
Slide 10: Sale of stake in SJCL
Sale of stake in SJCL SEPC + Shriram 68% Group 100 % Stake SJCL MHIL EV `1,400 Cr Jaya Vilas Group 32% (Original SJCL: Sree Jayajothi Cements Ltd; Promoter) MHIL: My Home Industries Ltd • In August, 2013; the Shriram EPC sold its stake in SJCL to MHIL, a 50:50 JV between CRH Plc., Ireland and My Hom
Slide 11: Exiting non core investments
Exiting non core investments Focusing on core EPC business • Decision to exit non core investments in Equity Feb, 2013 SEPC ` 265 crore • Resolution approving the transaction was approved by Shareholders vide Postal Ballot in March, 2013 • Stake in subsidiary & associate companies transferred in fav
Slide 12: Other Operational Developments
Other Operational Developments SEPC continues to witness steady order inflows across its business verticals with order wins in Process & Metallurgy, power and municipal services Delivered order win momentum through varied market conditions - SEPC enjoys total order backlog of `4,100 crore as of
Slide 13: Financial Highlights
Financial Highlights Section-3
Slide 14: Apr'13 – Jun'13 Highlights
Apr’13 – Jun’13 Highlights Apr – Jun’ 13 Net Sales at ` 215 crore vs `411 crore Apr – Jun’ 12 o The April – June quarter is a seasonally weak quarter and revenues have been further impacted by slowing execution cycles Apr – Jun’ 13 EBITDA at ` (15) crore vs `64 crore Apr – Jun’ 12 o Trend in project
Slide 15: Abridged P&L
Abridged P&L Figs. In crore Figs. In crore Standalone Standalone Income Statement Apr– Jun, Apr - Jun, Change 15M ending 12M ending Change 2013 2012 (%) Jun, 2013 Mar, 2012 (%) Sales & Services Income 212.3 408.2 (48.0%) 1,692.8 1,375.1 23.1% Other Operating Income 2.2 2.6 (15.4%) 12.4 7.1 74.6% Inc
Slide 16: Abridged Balance Sheet
Abridged Balance Sheet Figs. In crore June 30, March 31, Change Balance Sheet to strengthen as Sources of Funds 2013 2012 (%) proceeds from exiting non-core investments would be directed Share Capital 44.36 44.34 (0.1%) towards partial retirement of its high Reserves & Surplus 200.30 463.14 (56.8%
Slide 17: About SEPC
About SEPC Section-4
Slide 18: Business Overview
Business Overview Shriram EPC Leading provider of integrated EPC solutions for renewable Process and Municipal Mineral energy, process and Power Plants Metallurgy Services Processing metallurgy plants, and municipal services Water Mineral Steel Plants Biomass Treatment Process Plants Significant
Slide 19: Projects Executed
Projects Executed 10 MW POWER PLANT FOR PIPE REHABILITATION CROSS COUNTRY CONVEYOR 10 MW POWER PLANT FOR ETA VARUN BIO ENERGY FOR SREE JAYAJYOTHI CEMENT POWERGEN WATER TREATMENT FOR 1.5 MW WIND TURBINE AT TWAD BOARD UTHUMALAI COAL GASIFICATION PLANT COLOUR COATING LINE FOR TATA SILOS AT KFL, KERALA
Slide 20: Major Customers
Major Customers Reliance Industries Steel Authority of Tata Steel Vedanta Group Ltd India Ltd Gujarat Water Supply Jindal Steel & Power Kerala Feeds Limited Delhi Jal Board & Ltd Sewerage Board Sewerage Board
Slide 21: Opportunity
Opportunity Immense opportunity for players in the EPC space The EPC market opportunity is still largely interdependent on the fortunes of the infrastructure sector. Huge investments have been planned in ports, railways, roads and bridges, irrigation, power, and water supply and sanitation. Assuming
Slide 22: Opportunity
Opportunity Municipal Services Improved sanitation facilities (% of population with access) The percentage of urban population in India has been increasing at a tremendous pace. However, 61.4 62 62.6 63.3 63.5 over a period of 20 years, the percentage of population with access to sanitation has only
Slide 23: Milestones
Milestones • Incorporation of the Company • JV with Strategic Eng. For GRP pipes 2000 • Receipt of 1st Biomass Power Plant Order 2008 • Listing of Shriram EPC at NSE & BSE • Acquired Blackstone Group Technologies • SAP implemented • Commencement of Process & Metallurgy • ISO 9001 (2008) Certified 20
Slide 24: Shareholding
Shareholding Shareholding Structure - June 30,2013 NEW VERNON RELIANCE MF PRIVATE EQUITY 3.9% AGRONAUT LTD OTHERS VENTURES 3.9% 16.3% 5.4% UTI IAS 8.5% BESSEMER VENTURE Promoters PARTNERS TRUST 38.4% 23.6%
Slide 25: Thank you
Thank you
Shriram EPC — 15M ended June 2013 Earnings Presentation on 6ix