RKEC Projects Limited — Investor Presentation 2021

Jan 20, 2021

BUILD A BETTER TOMORROW

RKEC PROJECTS LIMITED

Investor Presentation F.Y. 2019-20

MARINE WORKS | BRIDGES | ROADS | BUILDINGS

Website: www.rkecprojects.com DELIVERING EXCELLENCE PROGRESSING EXPONENTIALLY

Offshore Berth, Essar Projects JAMNAGAR

Product Berth, Essar Projects

VADINAR

Fishing Harbour ,Machilipatnam Port

Offshore Berth , Adani Port

HAZIRA

DELIVERING EXCELLENCE IN BUILDING NATION'S INFRASTRUCTURE

Offshore Berth at Mumbai Port Trust Terminal at Kochi Port Trust Jetty with loading facility

MUMBAI KOCHI VIZAG

DELIVERING EXCELLENCE IN BUILDING NATION'S INFRASTRUCTURE

Flyover on NH45A PUDUCHERRY

Bridge, East Coast Railways BHUBANESWAR

Major Bridge 382, East Coast

BHUBANESWAR

Bridge on River Godavari NANDED

T Girder Bridge VIZAG

RKEC Projects Limited - Investor Presentation F.Y 2019-20 02

Bridge on River Beas PUNJAB

Rural Electrification Work

PRATAPGARH

As at the end of Oct.'20 our total order book stood at Rs.1,500 Crores of which the unexecuted work stood at Rs. 931.77 crores which is expected to be executed in the next 12-36 months.

CURRENT ORDER BOOK

SEGMENTS	NO.OF PROJECTS	CONTRACTVALUE(Rs. Crores )	VALUE OFWORKREMAINING(Rs. Crores)
Marine Works	06	555.69	341.38
Road & Bridges	01	521.20	307.94
Building &Infrastructure	07	302.44	247.02
Power	01	120.36	35.43
Total	15	1,499.69	931.77

PROGRESSING EXPONENTIALLY WITH STRONG ORDER BOOK

The robust order book of Rs. 931.77 Crores as on October 31, 2020 is expected to give a sustained revenue visibility for the next 2-3 years.

Growth in order book (YOY)

931.77

PROGRESSING EXPONENTIALLY WITH STRONG ORDER BOOK

WE HAVE EXECUTED A TOTAL OF 94 MAJOR INFRASTRUCTURE PROJECTS ACROSS 14 INDIAN STATES AND ARE CURRENTLY EXECUTING 15 PROJECTS HAVING CONTRACTUAL VALUE OF OVER RS. 1,500 CRORES.

IN LAST 5 YEARS, WE HAVE EXECUTED WORK ORDERS AMOUNTING TO RS. 635 CRORES

BEGINNING

Set up as Proprietorship Firm under the stewardship

of Shri G Radhakrishna

Started Executing onshore

and infrastructure projects Started Executing

Offshore works

01

0202

0303

35 YEARS TIMELINE Key Milestones/Events OF EXCELLENCE

Incorporation of the company

Merged business of Proprietorship Firm with Company

0404 0606 0505 Awarded bridge construction project in Nanded, Maharasthra under JNNURM Scheme, worth Rs. 60 crores Awarded construction of Offshore Berth Project at Pir Pau, Mumbai for Mumbai Port Trust, worth over Rs. 130 crores

Awarded construction of Coal Berth Project at Salaya Port, Gujarat for Essar Projects (India) Limited, worth over Rs. 100 crores

Started construction of Jetty at Naval Dockyard, Visakhaptnam for Indian Navy, worth over Rs. 62 crores

12 12

11 11

Started construction of Jetty on the river Hooghly at Haldia Dock Complex, Kolkata, worth over Rs. 75 crores

TIMELINE Key Milestones/Events 35 YEARS OF EXCELLENCE

Started construction of berth trestle at Honnavar, Karnataka, worth over Rs. 75 crores

Revenue for FY 20 crossed Rs. 300 crores and PAT over Rs. 25 crores

Migrated to the Main Board of NSE

Started project of building Fire Fighting facilities at Haldia Dock Complex, Haldia, West Bengal in EPC mode, worth over Rs. 130 crores

Commenced construction work of N1-N3 Jetty at Visakhapatnam.

Over the past three decades, we have worked with several State and Central Government Organizations as well as large private enterprises which has facilitated us to build successful, healthy and long-term relations with them. Some of our top notch clients includes:

" We intend to emerge as the preferred and reliable partner for our clients when it comes to infrastructure development. Our aim is to successfully deliver high quality projects on time and contribute towards the advancement of the economy through rapid development of infrastructure."

BUILDING EXCELLENCE IN CLIENT RELATIONSHIPS

Years of Experience Engineers Total Employees Projects

Completed

RKEC – AT A GLANCE

Current order book

+1499

(as on 30-09-20)

3.36 PE Multiple

Total PAT

CRORES

Total Revenue (F.Y. 2019-20) (F.Y. 2019-20) (as on 30-09-20) 306.93 CRORES 25.81 Projects in hand +15

Market Capitalization +86 CRORES

Note - CAGR is based on the consolidated financial results obtained from BSE website from F.Y. 2015-16 to 2019-20 of respective Companies. The above mentioned listed peers should not be construed as exhaustive list.

WE ARE ONE OF THE FASTEST GROWING LISTED COMPANY IN THE INFRASTRUCTURE SEGMENT

CAGR Growth in terms of PAT (in last 4 F.Y.)

S. No.	Companies	CAGR Growthin terms of Revenue(in last 4 F.Y.)
1	RKEC Projects Ltd.	28.25%
2	KNR Constructions Ltd.	26.12%
3	PNC Infratech Ltd.	24.63%
4	Gayatri Projects Ltd.	20.74%
5	J Kumar Infraproject Ltd.	20.42%
6	Ashoka Buildcon Ltd.	18.48%
7	Larsen & Toubro Ltd.	9.55%
8	IRB Infrastructure Developers Ltd.	8.26%
9	NCC Ltd.	-1.52%
10	ITD Cementation India Ltd.	-1.72%
11	Simplex Infrastructures Ltd.	-8.73%

66.73%
19.29%
24.46%
-
15.50%
28.70%
20.95%
3.19%
29.83%
-

-

OUR DIVERSIFIED CORE BUSINESS VERTICALS

THE DIFFERENT VERTICALS IN OUR CORE BUSINESS ARE:-

SECTORAL CONTRIBUTION IN THE ORDER BOOK (AS ON OCTOBER 31, 2020)

We have structured our business according to sector-specific verticals that makes us a complete EPC Service provider. Our diversified business portfolio enables us to cater to the infrastructure requirements of different sectors as well as strengthens our expertise and order book .

Marine Works (Offshore space)

Transportation (Roads and Bridges)

Buildings & Infrastructure

Transportation

33.1%

Marine Works

36.6%

DELIVERING EXCELLENCE IN MARINE ENGINEERING

Marine structures are considered to be among the most challenging in construction engineering. We have developed expertise over a wide ranging service capability in the offshore space which include construction of Jetties, Berths, Wharfs and water intake project works for our clients which are mainly Government Enterprises.

Our investments in capital equipments including ownership of world class pipe laying barage and piling rigs allow us to meet the project deadlines and lead our team with better productivity and efficiency.

Client: JNPT Port, Mumbai Work Value: Rs. 143.33 Crores Target for Completion: Feb 2021

Client: DGNP Work Value: Rs. 141.32 Crores

Client: Honnavar Port Private Limited Work Value: Rs. 77.24 Crores Target for Completion: Nov. 2022

Coastal Berth at JN Port, Mumbai Naval Jetty, Vishakhapatnam Development of Berth & trestles

Our Ongoing notable offshore projects includes:-

Four Lane Bridge over River Ganga down stream of Farakka Barriage

DELIVERING EXCELLENCE IN BRIDGES & ROAD PROJECTS

India has the second largest road network in the world, spanning a total of 5.89 Mn kms. In the past few years, we have been successful in executing construction of major bridge projects including railway bridge at Delang-Puri Section, Odisha ; Bridge on river Beas, Punjab ; Bridge at Naval Dock Yard, Visakhapatnam , a major bridge on Tuni-Dharmavaram section, Andhra Pradesh and Flyover on NH-14, in Puducherry. In Dec.' 18, we bagged a major work order of Rs. 520 crores for construction of 4 lane bridge over Ganga river (Farakka Barriage), under JV, which is expected to be completed by Dec. 2021

CLIENT NHAI, West Bengal

WORK VALUE Rs. 520 Crores

TARGET FOR COMPLETION

Dec. 2021

Progress of work is ahead of schedule.

DELIVERING EXCELLENCE IN BUILDINGS & INFRASTRUCTURE

Infrastructure sector is a key driver for the Indian economy. The sector is highly responsible for propelling India's overall development and enjoys intense focus from Government for initiating policies that would ensure time-bound creation of world class infrastructure in the country. Some of our distinguished completed projects in this vertical includes Military Station, Leimakhong, Manipur ; Overhauling facility building and building Complex for Indian Navy, Visakhapatnam.

Client: Shyama Prasad Mookherjee Port

Work Value: Rs. 129.29 Crores Target for Completion: July 2022 Client: MES Work Value: Rs. 36.91 Crores Target for Completion: Jan. 2022

Client: GVMC Work Value: Rs. 19.9 Crores Target for Completion: Mar. 2021

Fire fighting facility and Barge Jetty at Haldia, West Bengal

Indoor Sports Arena, Vishakhapatnam

Our Ongoing notable building projects includes:-

Warehouse for Indian Navy, Vishakhapatnam

STEPPING IN TO DELIVER EXCELLENCE IN POWER TRANSMISSION

Sustained economic growth continues to drive electricity demand in India. The Government of India's focus on attaining 'Power for all' has accelerated capacity addition in the country.

In 2015, we commenced Rural Electrification for 2085 Majras with 46th BPL connections, in Purvanchal, Pratapgarh district, Uttar Pradesh under Rajiv Gandhi Grameen Vidyutikaran Yojna (RGGVY) - l2th Plan .

Client – Purvanchal Vidyut Vitran Nigam Limited, Varanasi Contract Value – Rs. 120.36 crores Expected completion date – Dec. 31, 2020 Progress of work- 92%

STRONG IN-HOUSE CAPABILITIES AND PROJECT EXECUTION TEAM

Jackup Barge

Our fleet of major equipment

Casagrade B250 Crane 100 Mt Hydraulic Piling Rig

Over the years, we have developed in-house design and engineering capabilities. We also have a large fleet of sophisticated construction equipment, that allows us to provide end-to-end solutions for our projects. We have a well-qualified engineering and design team of 125 personnel possessing skills in various fields, including civil, structural, electrical, mechanical and instrumentation. Our in-house design and engineering team gives us control of the entire process of a project.

GROWING EXPONENTIALLY WITH STRONG BALANCE SHEET

SNAPSHOT OF OUR RISING PROFITABILITY

Earning per share (Rs.) 10.76 9.35 9.4 6.69 20.35 22.43 25.81

Net worth

SNAPSHOT OF OUR RISING PROFITABILITY RATIOS

CONSOLIDATED STATEMENT OF PROFIT & LOSS

(Rs. in Crores )

Companies	F.Y. 2019-20	F.Y. 2018-19	Growth (YoY%)
Revenue from operations	303.98	225.77	34.65%
Other Income	2.95	1.33	121.14%
Total Revenue	306.93	227.10	35.15%
Cost of materials consumed	104.53	111.61	-6.34%
Construction expenses	95.97	94.18	1.90%
Changes in inventories of work-in-progress	7.58	(46.35)	-116.35%
Employee benefit expenses	18.35	13.40	36.89%
Finance Costs	11.33	5.84	93.88%
Depreciation	6.49	3.54	83.71%
Other expenses	12.50	12.61	-0.88%
Total Expenses	256.75	194.83	31.78%
Profit before exceptional item	50.18	32.27	55.50%
Exceptional Item	13.33	-
Profit before taxes	36.85	32.27	14.19%
Tax Expenses	11.04	9.83	12.21%
Profit after taxes	25.81	22.43	15.06%

CONSOLIDATED BALANCE SHEET - ASSETS

(Rs. in Crores )

ASSETS	F.Y. 2019-20	F.Y. 2018-19
Non-Current Assets
Property, Plant and Equipments	30.97	19.55
Intangible assets	0.03	0.02
Capital Work in Progress	22.53	9.97
Deferred tax asset (net)	1.24	0.98
Non Current Investments	-	-
TOTAL	54.77	30.52
Current Assets
Inventories	91.27	65.84
Trade receivables	84.65	80.55
Cash and Bank Balances	45.65	33.34
Short-term Loans and advances	46.25	46.53
Other Current assets	6.94	3.05
TOTAL	274.77	229.32
GRAND TOTAL	329.54	259.84

CONSOLIDATED BALANCE SHEET – EQUITY & LIABILITIES

(Rs. in Crores )

EQUITY & LIABILITIES	F.Y. 2019-20	F.Y. 2018-19
Shareholders' funds
Share Capital	23.99	23.99
Reserves and Surplus	90.31	50.74
	114.30	94.27
Non-Current Liabilities
Long Term borrowings	3.92	1.51
Long-term provision	0.71	0.62
	4.63	1.36
Current Liabilities
Short-term borrowings	61.45	46.65
Trade Payables	97.19	76.23
Other Current liabilities	42.34	38.81
Short Term provisions	9.63	1.74
	210.61	163.44
TOTAL	329.54	259.84

FUTURE OUTLOOK OF INFRASTRUCTURE SECTOR IN INDIA

ROBUST DEMAND

India is expected to become the third largest construction market globally by 2022.

POLICY SUPPORT

With initiatives like 'Housing for All' and 'Smart Cities Mission', the Government of India is working on reducing bottlenecks and impeding growth in the infrastructure sector. Rs 2.05 lakh crore (US$ 31.81 billion) will be invested in the smart cities mission.

100 per cent FDI is permitted under the automatic route across various infrastructure sectors.

ATTRACTIVE OPPORTUNITIES

Only 24 per cent of the national highway network in India is four-lane, therefore there is an immense scope for improvement.

Favourable valuation and earnings outlook makes this sector an attractive opportunity.

INCREASING INVESTMENTS

Large investment in infrastructure have provided momentum to overall PE/VC investment into India, which touched an alltime high value of US$ 14.5 billion during 2019.

Construction development sector and infrastructure activities sector received FDI inflow amounting to US$ 25.66 billion and US$ 16.84 billion, respectively, from April 2000 to March 2020.

RECOGNITION OF OUR EXCELLENCE

Awarded as "Excellence in generating Employment" by Visakhapatna Chamber of Commerce and Industry in 2018

Listing Ceremony of RKEC on NSE Emerge platform by Special invitee - Sri Sri Ravi Shankar ji

CLIENT TESTIMONIALS OUR MAJOR ENLISTMENTS

RKEC is a synonym of professionalism. Their team from the top level management to the lowest level supervisor all are thorough professionals for which is quite evident from the quality of work & other deliverables"

DGNP, Indian Navy, Visakhapatnam

"Resourceful firm having expertise in Marine work"

Mumbai Port Trust

Super Special Class Civil Contractors with MES (Military Engineering Services), Indian Army

Special Class Civil Contractors with DGNP (Director General Naval Projects), Indian Navy

CIV-IV Category Contractor with DRDO (Defence Research & Development Organization)

Shri G Radhakrishna Chairman & Managing Director Exp. – 35 years

Shri T Lucas Peter (IRS) (Retd.)

Independent Director Exp. – 37 years

Brig. J K RaoVSM

Independent Director Exp. – 33 years

Lt Gen P R Kumar

PVSM, AVSM, VSM (Retd.) Independent Director Exp. – 39 years

Dr. G Sita Ratnam

Non- Executive Director Exp - 10 years

Smt. G Parvathi Devi Whole Time Director Exp. – 33 years

Shri G V Rammohan

Whole Time Director Exp. – 12 years

Vice Admiral Satish Soni

PVSM, AVSM, NM (Retd.) Independent Director Exp - 44 years

OUR EXPERIENCED & VISIONARY LEADERS

Disclaimer:- This presentation contains statements that contain "forward looking statements" including, but without limitation, statements relating to the implementation of strategic initiatives, and other statements relating RKEC Projects Limited future business developments and economic performance. While these forward looking statements indicate our assessment and future expectations concerning the development of our business, a number of risks, uncertainties and other unknown factors could cause actual developments and results to differ materially from our expectations. These factors include, but are not limited to, general market, macro-economic, governmental and regulatory trends, movements in currency exchange and interest rates, competitive pressures, technological developments, changes in the financial conditions of third parties dealing with us, legislative developments, and other key factors that could affect our business and financial performance. We undertakes no obligation to publicly revise any forward looking statements to reflect future / likely events or circumstances.

RKEC Projects Limited # 10-12-1, Rednam Alcazar, Rednam Gardens, Visakhapatnam -530002 Email: info@rkecprojects.com Website: www.rkecprojects.com Tel No.: 0891-2574517

904, A Wing, Naman Midtown, Senapati Bapat Marg, Lower Parel, Mumbai -400013 Email: hemclient@hemsecurities.com Tel No.: 022-4906-0000 www.hemsecurities.com

Hem Securities Ltd.

CORPORATE ADVISOR

We strongly believe that growth should always be sustainable. At RKEC, we are determined to achieve sustainable growth by continuously achieving excellence in all spheres of our business functions, maintaining our track-record for the timely completion of projects, and efficiently adopting advanced technologies into our processes.