#1Investor Presentation February 2017 TM KNRO KNR CONSTRUCTIONS LIMITED KNR House, 3rd & 4th Floor, Plot No.114, Phase-1, Kavuri Hills, Jubilee Hills, Hyderabad - 500 033 Phone No. 040-40268759/61/62, Fax No. 040-40268760 E-mail: [email protected] A Well Established Name in Roads & Highway Constructions#2Disclaimer KNRC KNR CONSTRUCTIONS LIMITED This presentation and the accompanying slides (the "Presentation"), which have been prepared by KNR Constructions Limited (the "Company"), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for any securities, and shall not form the basis or be relied on in connection with any contract or binding commitment whatsoever. No offering of securities of the Company will be made except by means of a statutory offering document containing detailed information about the Company. This Presentation has been prepared by the Company based on information and data which the Company considers reliable, but the Company makes no representation or warranty, express or implied, whatsoever, and no reliance shall be placed on, the truth, accuracy, completeness, fairness and reasonableness of the contents of this Presentation. This Presentation may not be all inclusive and may not contain all of the information that you may consider material. Any liability in respect of the contents of, or any omission from, this Presentation is expressly excluded. Certain matters discussed in this Presentation may contain statements regarding the Company's market opportunity and business prospects that are individually and collectively forward-looking statements. Such forward-looking statements are not guarantees of future performance and are subject to known and unknown risks, uncertainties and assumptions that are difficult to predict. These risks and uncertainties include, but are not limited to, the performance of the Indian economy and of the economies of various international markets, the performance of the industry in India and world-wide, competition, the company's ability to successfully implement its strategy, the Company's future levels of growth and expansion, technological implementation, changes and advancements, changes in revenue, income or cash flows, the Company's market preferences and its exposure to market risks, as well as other risks. The Company's actual results, levels of activity, performance or achievements could differ materially and adversely from results expressed in or implied by this Presentation. The Company assumes no obligation to update any forward-looking information contained in this Presentation. Any forward-looking statements and projections made by third parties included in this Presentation are not adopted by the Company and the Company is not responsible for such third party statements and projections. 2#3Key Highlights & Result Update TM KONRC KNR CONSTRUCTIONS LIMITED 3#4Standalone Financial Highlights TM KONRC KNR CONSTRUCTIONS LIMITED EBITDA (Rs. Million) +42% Revenue (Rs. Million) +75% 10,590 1,106 6,067 Adjusted PAT* (Rs. Million) 1,574 1,068 +8% 1,157 9M FY16 9M FY17 9M FY16 9M FY17 9M FY16 9M FY17 Revenue (Rs. Million) EBITDA (Rs. Million) Adjusted PAT* (Rs. Million) +75% +24% +22% 3,823 467 577 341 415 2,186 Q3 FY16 Q3 FY17 * Adjusted PAT PAT + Exceptional Item Q3 FY16 Q3 FY17 Q3 FY16 Q3 FY17#5Key Updates TM KONRC KNR CONSTRUCTIONS LIMITED Signed a share purchase agreement to sell their equity stake in two Road BOT assets ✓ Company along with Patel Engineering Limited (PEL) signed a share purchase agreement to sell entire equity stake in two Road BOT assets viz. Patel KNR Infrastructure Limited and Patel KNR Heavy Infrastructure Limited to an Essel group company ✓ Both the assets are operational annuity based BOT assets awarded by NHAI ✓ The enterprise value of both assets put together for this transaction is ~INR 850 Crores Sub-division of equity shares of the company from 1 equity share of face value of Rs. 10/- each into 5 equity shares of Rs. 2/- each to improve liquidity ✓ Issued capital has increased from 2,81,23,460 shares of Face value of Rs. 10 each to 14,06,17,300 shares of Face value of Rs. 2 each 5#6Standalone Financial Results - 9M TM KNRC KNR CONSTRUCTIONS LIMITED Rs. Million Net Sales Other Operating Income Total Revenue Operating Expenses 9M FY17 9M FY16 YOY 10,474.3 5,907.8 77% 115.2 159.2 -28% 10,589.5 6,067.1 75% 7,659.5 4,033.5 Employees Expenses 406.8 316.5 Other Expenditure 949.6 611.5 EBITDA 1,573.6 1,105.6 42% EBITDA margin 14.9% 18.2% Other Income 293.0 201.5 Depreciation 443.9 314.9 Interest 164.8 90.9 Exceptional Item * 108.7 PBT 1,149.2 901.4 27% Tax Current Tax 72.4 102.2 Prior Period Tax -0.2 -255.4 Deferred Tax 28.9 -13.1 Profit After Tax 1,048.2 1,067.6 -2% PAT margin 9.90% 17.60% Adjusted PAT** Adjusted PAT Margin 1,156.8 10.92% 1,067.6 17.60% 8% *During the quarter, the Company has entered a Share Purchase Agreement for sale of its equity in two BOT annuity projects and correspondingly impairment in value of investment has been provided. ** Adjusted PAT PAT + Exceptional Item 6#7Standalone Financial Results - Q3 KNRC KNR CONSTRUCTIONS LIMITED Rs. Million Net Sales Other Operating Income Total Revenue Operating Expenses Q3 FY17 Q3 FY16 YOY 3,805.5 2,034.9 87% 17.3 150.7 -88% 3,822.8 2,185.6 75% 2,772.8 1,410.1 Employees Expenses 148.1 104.7 Other Expenditure 325.0 204.0 EBITDA 576.9 466.7 24% EBITDA margin 15.1% 21.4% Other Income 102.2 33.8 Depreciation 165.9 106.1 Interest 66.4 27.4 Exceptional Item * 108.7 PBT 338.2 367.1 -8% Tax Current Tax 25.8 22.9 Prior Period Tax -0.2 0.0 Deferred Tax 5.9 3.5 Profit After Tax 306.7 340.7 -10% PAT margin 8.02% 15.59% Adjusted PAT ** Adjusted PAT Margin 415.4 10.87% 340.7 15.59% 22% *During the quarter, the Company has entered a Share Purchase Agreement for sale of its equity in two BOT annuity projects and correspondingly impairment in value of investment has been provided. ** Adjusted PAT PAT + Exceptional Item 7#8Standalone Balance Sheet KNRC KNR CONSTRUCTIONS LIMITED Rs. Millions Sep-16 Rs. Millions NON-CURRENT ASSETS Sep-16 9,269 EQUITY 8,046 Fixed Assets Equity Share capital 281 Property, plant and equipment 2,647 Other equity 7,765 Capital work-in-progress 32 NON CURRENT LIABILITIES 1,437 Other Intangible assets 0 Financial liabilities Financial Assets Borrowings 1,264 Investments 2,835 Trade Payables 83 Loans & Other Receiables 2,455 Other Financial Liabilities 32 Deferred tax assets (net) 226 Provisions 28 Other non-current assets 286 Other Non-Current Liabilities 30 Income tax (net) 788 CURRENT ASSETS 5,253 CURRENT LIABILITES 5,039 Inventories 423 Financial liabilities Financial Assets Borrowings 121 Investments 103 Trade Payables 1,065 Trade receivables 1,233 Other Financial Liabilities 2,188 Cash and cash equivalents 200 Other Current Liabilities 1,543 Loans & Other Receivables 1,375 Provisions 122 Other current assets 1,919 TOTAL EQUITY AND LIABILITIES 14,522 TOTAL ASSETS 14,522 8#9Business Overview TM KONRC KNR CONSTRUCTIONS LIMITED 9#10Business Overview TM KONRC KNR CONSTRUCTIONS LIMITED One of the leading companies providing Engineering, Procurement and Construction (EPC) services ✓ Major Projects in Roads & Highways - one of the fast growing sector Established presence in Irrigation and Urban Water Infrastructure Management 20 years of experience of project execution Successfully executed more than ~6,000 lane km Road Projects Projects executed across 12 states in India Portfolio of 4 BOT Projects ✓ ✓ 778 lane Kms Projects in the state of Telangana, Karnataka, Kerala & Bihar 2 Annuity based Projects* & 1 Toll based project completed 1 Toll based Project partial Operational * Strong EPC Order-book Rs. 42,381 mn as on 31st December, 2016 comprising of Rs. 36,065 mn in Roads sector and Rs. 6,316 mn in Irrigation ✓ To develop KNRCL as a Centre of excellence in the field Infrastructure. of ✓ To add more business verticals to the organization in the fields of construction of Elevated Metro Rail and Railway Projects Vision * Company along with PEL signed a share purchase agreement to sell entire equity stake in two Road BOT assets to an Essel group company. 10#11Transformation TM KONRC KNR CONSTRUCTIONS LIMITED 2016 2/4 laning of Madurai-Ramanathapuram Section of NH-49 in the State of Tamil Nadu on EPC mode worth Rs. 9,371 mm 2013 Early completion of Biggest Road Project - Bijapur Hungund Section of Rs. 8,250 mn - 11 months ahead of schedule 2010 IPO & Listed on BSE and NSE Crossed Revenue of Rs. 10,000 mn on Standalone Basis 2015 3rd BOT Toll project worth Rs.9,005 mn in Kerala 2012 Received single biggest work order value of Rs. 8,250 mn from Sadbhav Engineering Ltd for construction of Bijapur Hungund Road project 2008 2007 1st BOT Project in Karnataka worth Rs. 4,420 mn; Entry into Urban Water Infrastructure with contract in 2nd BOT project worth Rs.5,920mn in Telangana 2006 Bangalore 1995 Incorporated & Commenced EPC Business 11#12Management... TM KONRC KNR CONSTRUCTIONS LIMITED Mr. K.Narasimha Reddy - Founder Promoter & Managing Director ❖ Over 48 years of experience in the Highway sector Started career in 1968 and engaged in the business of undertaking civil and mechanical contracts Extensive knowledge and experience in multi project planning Scheduling, cost controls in addition to overall construction and multi project management & driving force in taking the company towards greater heights Mr. K. Jalandhar Reddy - Promoter & Executive Director Over 20 years of experience in the Highway and infrastructure sector ❖ Started his career with the organisation as a project Manager and was elevated to Executive Director on April 1, 1997 Heads the tendering and bidding activities and is in charge of most of the projects in Southern India 12#13Supported by Professional Team TM KONRC KNR CONSTRUCTIONS LIMITED Mr. T.L. Verma (Vice President - Projects) ✰ A Bachelor of Engineering (BE) from MITS Gwalior (MP) with Over 35 years of total experience with ~20 years of experience in Highway sector Working with the company since 2006 on various projects i.e. Bridges and Highways, including construction of Concrete Roads Mr. S Vaikuntanathan (VP - Finance) A Fellow Member of the Institute of Chartered Accountants of India with 39 years of experience in the areas of finance, accountancy and taxation Has the overall responsibility for the finalization of corporate accounts, taxation, finance and related jobs Mr. D. Tirupathi Reddy (GM - Projects) Over 24 years of rich experience in various fields of Civil Engineering Working with the company since 14 years as contract specialist and tendering & procurement expert Mr. M.V. Venkata Rao (Company Secretary) A Fellow Member of the Institute of Company Secretaries of India Working with the company since 2007 and has the overall responsibility towards compliance of Rules & Regulations laid down by various authorities 33 13#14Key Business Strengths TM KONRC KNR CONSTRUCTIONS LIMITED 14#151. Project execution Significant experience and Strong track record in timely execution of Projects ❖ Top management's active involvement at all stages of Project execution ✓ Selection of Major Raw Material ✓ Selection of construction Camp location Faster Decision making to ensure project completion on schedule Received Bonus for completion of construction ahead of schedule TM KONRC KNR CONSTRUCTIONS LIMITED Scheduled Completion (Days) Actual Completion (Days) Bijapur - Hungund 910 582 Hyderabad - 1,440 Ramagundam 1,219 Karimnagar - 450 Kamareddy 343 Hyderabad 365 Chanda 364 Siricilla 365 Siddipet 364 Narsapur 365 Aswaraopet 364 Walayar 910 Vadakkancherry 880 730 Penchalakona - Yerpedu 609 15 15#16Pan India Project Execution* Capability Uttar Pradesh 4 No of Projects Value of Projects Rs. 1,704 mn Madhya Pradesh 5 No of Projects Value of Projects Rs. 7,941 mn Karnataka No of Projects 14 Value of Projects Rs. 21,084 mn Kerala No of Projects 3 Value of Projects Rs. 7,905 mn TM KONRC KNR CONSTRUCTIONS LIMITED Arunachal Pradesh 1 Bihar No of Projects Value of Projects Rs. 920 mn No of Projects 1 Value of Projects Rs. 1,411 mn Assam No of Projects 2 Value of Projects Rs. 1,913 mn Chhattisgarh No of Projects 1 Value of Projects Rs. 264 mn Orrisa No of Projects 1 Value of Projects Rs. 2,313 mn Tamil Nadu AP & Telangana No of Projects 6 No of Projects 8 Value of Projects Rs. 7,071 mn Value of Projects Rs. 15,771 mn Maps not to scale. All data, information, and maps are provided "as is" without warranty or any representation of accuracy, timeliness or completeness 16 * Projects executed in last 5 years#17Project Execution Highlights. TM KONRC KNR CONSTRUCTIONS LIMITED ❖ Cement Concrete Road ✓ Completed Widening to 4/6 lanes and Strengthening of Existing two lane carriageway of NH - 5 in the State of Orissa for a length of 56.0 Kms with total contract value of work is Rs 2,310 mn ✓ Existing road was widened & strengthened with flexible pavement but, new 2- lane road was constructed with concrete (PQC) ✓ Concrete road was paved for a width of 8.75m with G&Z slip form paver having automatic device for placement of tie bars and dowel bars at fixed interval ✓ Concreted Batching Plant was installed with a capacity compatible with the paving capacity of G&Z paver for better quality control of PQC Road Hard Rock Excavation ✓ 2.6 Millions Cubic Meters deep hard rock excavation was done in the work of four laning of Islam Nagar (KM 230.00) to Kadtal (KM 278.00) of Nagpur -Hyderabad Section on NH-7 in the State of Telangana 17#182. In-house Construction Equipment World Class Construction Equipments Use of Right tools for right work TM KONRC KNR CONSTRUCTIONS LIMITED Sl. No. Name Of The Machinery Qty 1 Tippers 682 2 Excavators 155 3 Compactors 73 4 Concrete Mixers And Pumps 112 Loaders 41 6 Pavers 14 7 Crushers 14 8 Graders 32 9 Tractors 28 10 Cranes 35 250 TPH Nawa Crushing Plant 11 Tankers 35 12 Trailers 22 13 Rollers 20 14 Batching & Mixing 28 15 Breakers 24 16 Hot Mix Plant 8 17 Drillers 21 18 Dozers 8 19 Wet Mix Plant 8 20 Drum Mix Plant 7 21 Loaders Cum Excavators 7 22 Generators & Others 166 240 TPH D & G Hot Mix Plant Gross Block of Plant & Machinery * Rs.6,370 mn * as at 31.12.2016 18#193. In-house Execution Team TM KONRC KNR CONSTRUCTIONS LIMITED In-house team of 825 Qualified and experienced employees led by proven management team 36% 1% 6% 35% 22% Project Engineering Site Supervision Site Engineers Equipment Operators Admin & Office Staff 19#204. Reputed Clientele भाराराप्रा NHAI Joyo राज्य राजमार्ग रण National Highways Authority of India (NHAI) APROC Aiming For Better Ways.. Safety With Sustainability. TM KONRC KNR CONSTRUCTIONS LIMITED Andhra Pradesh Road Development Corporation (APRDC) Ministry of Road Transport & Highways (MORTH) HYDERABAD GROWTH CORRIDOR LIMITED Hyderabad Growth Corridor Limited (HGCL) Karnataka State Highway Improvement Project (KSHIP) Madhya Pradesh Road Development Corporation Limited (MPRDCL) A& BRUHAT NGALORS MAHANAGARA PALIKE Karnataka Road Development Corporation (KRDCL) Bruhat Bangalore Mahanagara Palike (BBMP) Uttar Pradesh State Highways Authority (UPSHA) तिल मिनरल डेवलपमेन्ट कापारशन लि.. MNERAL DEVELOPMENT SORPTION LTD NMDC Limited 20 20#214. Reputed Clientele (cont.) Govt. of A.P. EIL A.P. Irrigation (Government of Andhra Pradesh) Engineers India Limited (Government of India Undertaking) Public Works Department (Government of Arunachal Pradesh) GAR TM KONRC KNR CONSTRUCTIONS LIMITED GMR Projects Private Limited Sadbhav TODAY FOR TOMORROW Sadbhav Engineering Limited O C ORIENTAL Oriental Structural Engineers Pvt. Ltd. 21#22BOT Portfolio 22 22 TM KONRC KNR CONSTRUCTIONS LIMITED#23BOT Portfolio - Annuity Projects Particulars Patel KNR Infrastructures limited (PKIL)^ Stake KNRC KNR CONSTRUCTIONS LIMITED Patel KNR Heavy Infrastructures Limited (PKHIL)^ Project Details Financials Terms Project Type State JV Partner Client Length(KM) Concession Start Date Concession Period COD Project Cost Equity (31.12.2016) Debt (31.12.2016) Securitized Semi-Annutiy- 36 Instalments 40% Road-Annuity Karnataka PEL NHAI 60.00 26th March 2007 20 Years 21st December 2009 Rs. 4,420.0 mn Rs.370.00 mn Rs.3,055.30 mn Yes* Rs. 329.4 mn 40% Road-Annuity Telangana PEIL NHAI 53.00 2nd March 2008 20 Years 11th June 2010 Rs. 5,920.0 mn Rs.496.70 mn Rs.4,541.05 mn Yes ** Rs. 443.7 mn * PKIL securitized its project loan through issuance of non-convertible debentures to LIC of India & raised Rs. 4,090 mn in April 2010. The said proceeds were used to retire the existing high cost project loan and unsecured loans of promoters and to meet the issue expenses. **PKHIL securitized its project loan through issuance of non-convertible debentures to L&T Infrastructures Finance Company Limited and raised Rs 4000 mn in Sept. 2013. The said proceeds were used to retire the existing high cost project loans (Other than the ECB of USD 25 Millions availed from the Standard Chartered Bank, London) and unsecured loans of promoters and to meet the issue expenses. ^ Company along with PEL signed a share purchase agreement to sell entire equity stake in the two Road BOT assets to an Essel group company. 23#24Financials Terms Project Detail BOT Portfolio - Toll Projects TM KONRC KNR CONSTRUCTIONS LIMITED Particulars Stake KNR Walayar Tollways Private Limited 100% KNR Muzaffarpur Barauni Tollway Private Limited Project Type Road-Toll Kerala 51% Road-Toll Bihar JKM Infra Project Ltd NHAI Two State JV Partner Client No of Lanes Length(KM) Concession Start Date Concession Period Scheduled COD Actual Scheduled COD Revenue Sharing Project Cost Equity (31.12.2016) Debt (31.12.2016) Status Toll Revenue - 9M FY17 NHAI Two to Four 54 18th May 2013 20 Years 15th Nov. 2015 31st Oct. 2015 Grant Rs. 9,005.1 mn Rs. 3,974.1 mn* Rs. 2,135.0 mn Provisional Completion Certificate for 100% of Project length has been issued on 31st Oct. 2015 Rs. 287.2 mn in FY16 and Rs. 289.7 mn in 9MFY17 108 8th July 2012 21 Years 9th July 2014 3rd June 2016 Premium Rs. 3,596.8 mn / (Revised: Rs. 4,588.6 mn) Rs. 1,408.6 mn Rs. 3,122.5 mn Provisional Completion Certificate for 75% of Project length has been issued on 3rd June 2016 Rs. 112.3 mn in 9MFY17 * incl. additional quasi equity of Rs. 2,615.0 mn towards repayment of loans 24#25Walayar -Vadakkancherry Project TM KNRC KNR CONSTRUCTIONS LIMITED KNR Walayar Tollways Private Limited is a wholly owned subsidiary of KNR Constructions Limited, incorporated as an SPV for execution of Walayar Road Project Provisional Completion Certificate for 100% of Project length has been issued for the project on 31st October 2015 Caters to commercial traffic towards Kochi Port and Kochi International Container Transshipment Terminal The project road serves as an arterial link to most of the important southern cities such as Salem, Erode, Coimbatore, Trissur, Palakkad, Kochi, Alappuzha, Kollam, Thiruvananthapuram and Nagercoil Major industries like Wise Park, HP Gas Plant, ITI, BPL, UB, Instrumentation Limited, Percot Meridan, BEML etc. are located in this section The work is completed one month ahead of scheduled date of completion 25 25#26Muzaffarpur - Barauni Project TM KONRC KNR CONSTRUCTIONS LIMITED KNR Muzaffarpur Barauni Tollway Private Limited is a Step down subsidiary of KNR Constructions Limited, incorporated as an SPV for execution of Muzaffarpur -Barauni Road project on BOT (Toll) basis Provisional Completion Certificate for 75% of Project length has been issued for the project on 3rd June 2016 Project starts at Muzaffarpur and ends at Barauni. The project corridor is located in the state of Bihar and passes through three districts namely Muzaffarpur, Samastipur and Begusarai Muzaffarpur is an important place for wholesale cloth trade and the largest city of northern Bihar while Barauni city is situated on holy river Ganga and also an important industrial city of Bihar having major industrial units such as IOC refinery, Barauni Thermal Power Plant, Hindustan Fertilizers Corporation and Barauni Dairy 26 26#27Order Book & Business Strategy TM KONRC KNR CONSTRUCTIONS LIMITED 27#28Order-book Break-up Captive 0% TM KONRC KNR CONSTRUCTIONS LIMITED Order book of Rs. 42,381 million as on 31st December 2016 Other 100% State Govt. 42% Others. 1% International Order*. 5% Central Govt. 52% ■Captive State Govt. Central Govt. International Order* Others *- Government of People's Republic Of Bangladesh 28 28#29Order-book Highlights Key Projects Rs. mln Roads - Hubli Hospet Section of NH - 63 6,674 Non Captive 85% Madurai-Ramanathpuram Section of NH-49 5,685 Thiruvananthapuram Bypass 4,855 Rehabilitation and upgradation of Dindigul-Bangalore 4,149 Road (Pollachi to Coimbatore Section) Construction of Two Tier Flyover in Salam City Top 5 Road Projects 2,727 24,090 Other Road Projects Irrigation Projects Total Order Completion 11,975 6,316 South 42,381 89% 42.8% * - Government of People's Republic of Bangladesh TM KONRC KNR CONSTRUCTIONS LIMITED East 1% Irrigation 15% Roads - Captive 0% Central 5% International Order * 5% 29 20#30Order-book: State-wise TM KONRC KNR CONSTRUCTIONS LIMITED Madhya Pradesh No of Projects 3 Balance Value Rs. 2,183 mn Karnataka 9 No of Projects Balance Value Rs. 7,524 mn Kerala No of Projects 3 Balance Value Rs. 4,959 mn Arunachal Pradesh No of Projects 1 Balance Value Rs. 464 mn AP & Telangana No of Projects 10 Balance Value Rs. 7,002 mn Tamil Nadu No of Projects 9 Balance Value Rs. 18,022 mn Maps not to scale. All data, information, and maps are provided "as is" without warranty or any representation of accuracy, timeliness or completeness 30#31Business Strategy TM KONRC KNR CONSTRUCTIONS LIMITED Focus on securing EPC contracts from reputed Clients and Concessionaire Focus on Projects involving Higher degree of engineering skills Continuously explores growth opportunities by forming strategic Joint Ventures (JVs) Capitalise on Opportunity of huge Infrastructure development in Country KNRCL Execute all the projects on time or ahead of schedule 31#32Financial Highlights TM KONRC KNR CONSTRUCTIONS LIMITED 32#33Standalone Financial Results* TM KONRC KNR CONSTRUCTIONS LIMITED Rs. Million FY16 FY15 YOY Total Revenue 9,025.5 8,761.3 3% Operating Expenses 6,062.9 5,965.5 Employees Expenses 435.2 380.8 Other Expenditure 973.3 1,153.6 EBITDA 1,554.1 1,261.4 23% EBITDA margin 17.2% 14.4% Other Income 304.9 124.6 Depreciation 431.4 540.6 Interest 126.3 122.4 PBT 1,301.3 723.0 80% Tax Current Tax 164.0 102.9 Prior Period Tax -437.2 11.2 Deferred Tax -36.8 -121.2 Profit After Tax 1,611.2 730.1 121% PAT margin 17.9% 8.3% * Above financials are based on I GAAP 33#34Standalone Balance sheet* TM KONRC KNR CONSTRUCTIONS LIMITED Rs. in Million Mar-16 Mar-15 Rs. in Million Mar-16 Mar-15 Shareholder's Fund 7,270 5,692 Non-Current Assets 7,689 5,254 Share capital 281 281 Fixed Assets 2,468 2,269 Reserves & Surplus 6,988 5,411 Non-current Investments 355 228 Minority Interest 0 0 Deferred Tax Assets (Net) 276 239 Non-Current Liabilities 1,880 690 Long Term Loans & Advances 3,902 1,786 Long term borrowings 70 1 Other Non-Current Assets 689 732 Other Long Term Liabilities 1,787 672 Current Assets 5,091 4,781 Long Term Provisions 23 17 Current Investments 79 87 Current Liabilities 3,631 3,653 Inventories 353 359 Short Term Borrowings 1,055 881 Trade Receivables 1,294 1,765 Trade Payables 1,121 705 Cash & Cash Equivalents 161 157 Other Current Liabilities 946 1,775 Short Term Provisions 509 292 Total Equity & Liabilities 12,781 10,035 Short Term Loans & Advances Other Current Assets Total Assets 2,276 1,506 928 907 12,781 10,035 Amongst very few companies in the infrastructure sector, the company's Long Term bank loan facilities are rated as A+ and Short Term bank loan facilities are rated as A1+ by India Ratings, reflecting strong execution capabilities and robust financial risk profile * Above financials are based on I GAAP 34#35Consolidated Financial Results* Rs. Million Total Revenue TM KONRC KNR CONSTRUCTIONS LIMITED FY16 FY15 YOY 9,951.2 9,311.9 7% Operating Expenses 6,634.5 6,470.8 Employees Expenses 466.9 382.3 Other Expenditure 1,108.0 1,191.0 EBITDA 1,741.9 1,267.8 37% EBITDA margin 17.5% 13.6% Other Income 424.1 128.9 Depreciation 480.7 551.7 Interest 563.2 130.2 PBT 1,122.1 714.7 57% Tax Current Tax Prior Period Tax Deferred Tax Profit After Tax PAT margin * Above financials are based on I GAAP 238.4 107.2 -411.2 11.2 -36.8 -121.2 1,331.6 717.5 86% 13.4% 7.7% 35#36Consolidated Balance sheet* TM KONRC KNR CONSTRUCTIONS LIMITED Rs. in Million Mar-16 Mar-15 Rs. in Million Mar-16 Mar-15 Shareholder's Fund 6,970 7,885 Non-Current Assets 14,563 15,165 Share capital 281 281 Fixed Assets 12,631 13,432 Reserves & Surplus 6,688 7,604 Non-current Investments 168 236 Minority Interest 807 906 Deferred Tax Assets (Net) 283 247 Non-Current Liabilities 8,335 7,234 Long Term Loans & Advances 758 515 Long term borrowings 6,314 6,373 Other Non-Current Assets 723 735 Other Long Term Liabilities 1,997 843 Current Assets 5,951 4,951 Long Term Provisions 23 17 Current Investments 0 0 Current Liabilities 4,402 4,091 Inventories 618 557 Short Term Borrowings 1,055 880 Trade Receivables 1,347 1,101 Trade Payables 1,189 754 Cash & Cash Equivalents 450 435 Other Current Liabilities 1,473 2,058 Short Term Loans & Advances 2,617 1,727 Short Term Provisions 685 399 Other Current Assets 919 1,131 Total Equity & Liabilities 20,514 20,116 Total Assets 20,514 20,116 * Above financials are based on I GAAP 36#37Standalone Financial Highlights* TM KNRC KNR CONSTRUCTIONS LIMITED Financial Year 2010 2011 2012 2013 2014 Rs. 7,125 Rs. 7,930 Rs. 7,505 Rs. 6,921 Rs. 8,348 2015 Rs. 8,761 2016 Rs. 9,025 Turnover $118.6 $132.0 $125.0 $115.2 $139.0 $140.0 $136.1 Rs. 1,121 Rs. 1,356 Rs. 1,338 Rs. 1,164 Rs. 1,258 Rs. 1,261 Rs. 1,554 EBITDA $18.7 $22.6 $22.3 $19.4 $20.9 Rs. 826 Rs. 897 Rs. 784 Rs. 670 Profit before Tax (PBT) $13.8 Rs. 503 $14.9 $13.1 $11.2 Rs. 669 $11.1 $20.1 Rs. 723 $11.6 Rs. 1,301 $23.4 $19.6 Rs. 568 Rs. 528 Rs. 521 Rs. 610 Rs. 730 Profit after Tax (PAT) EPS $8.4 Rs. 17.88 $0.30 Rs. 3,008 $9.5 Rs. 20.21 $8.8 $0.34 Rs. 3,520 Rs. 18.76 $0.31 Rs. 4,024 Net Worth $50.1 Rs. 740 $58.6 Rs. 735 $67.0 Rs. 555 $8.7 Rs. 18.54 $0.31 Rs. 4,521 $75.3 Rs. 710 $10.2 Rs. 21.68 $0.36 Rs. 5,106 $85.0 $11.7 Rs. 25.96 $0.42 Rs. 5,674 $90.7 Rs. 1,611 $24.3 Rs. 57.29 $0.86 Rs. 7,260 $109.5 Rs. 867 Rs. 963 Rs. 1,168 Debt Debt to Equity $12.3 0.25 $12.2 $9.2 $11.8 $14.4 $16.0 $17.6 0.21 0.14 0.16 0.17 0.17 0.15 * Above financials are based on I GAAP From FY10 to FY14 1 USD = Rs. 60.059 FY15 1USD = Rs. 62.58; FY16-1 USD = Rs. 66.32 All figures in Rupees million except EPS & Debt to Equity 37#38Standalone Financial Highlights Revenue & EBITDA (Margin %) EBITDA Margin (%) 15.7% 17.1% 17.8% 16.8% 7,125 Revenue 1,121 EBITDA 7,930 TM KONRC KNR CONSTRUCTIONS LIMITED 15.1% 14.4% 17.2% 8,761 9,026 8,348 7,505 6,921 1,356 1,338 1,164 1,258 1,261 1,554 2010 2011 2012 2013 Net Profit & Net Worth (ROE) 2014 2015 2016 ROE (%) 16.7% 16.1% 13.1% 11.5% 11.9% 12.9% 22.2% 7,260 PAT 3,008 Networth 503 568 Rs. in Million 2010 3,520 2011 5,674 5,106 4,521* 4,024 528 521 2012 2013 * 610 2014 1,611 730 2015 - Includes Early Completion Bonus of Rs. 190 million 2016 38#39TM Standalone Net Working Capital Days NRC KNR CONSTRUCTIONS LIMITED 79 69 53 52 48 43 52 98 45 40 74 38 66 64 51 53 45 41 34 26 28 30 23 7 10 13 16 16 15 18 15 20 15 17 15 17 12 8 12 6 12 4 Mar-10 Mar-11 Mar-12 Mar-13 Mar-14 Mar-15 Mar-16 Jun-16 Sep-16 Dec-16 Inventory Debtors Creditors Net Working Capital 39#40TM KNRC KNR CONSTRUCTIONS LIMITED Shareholding Pattern as on 31st December 2016 Shareholders Holding more than 1% of the Equity (Other than Promoters) 26.9% 4.5% 10.6% HDFC Mutual Fund ICICI Mutual Fund % to Equity 8.35% 3.21% 58.1% Copthall Marutius Investment Limited 2.85% PROMOTERS FOREIGN INST. INVESTORS Tata Mutual Fund Franklin Mutual Fund 2.68% 1.79% MUTUAL FUNDS & FIs DSP Blackrock India T.I.G.E.R. Fund 1.05% PUBLIC & OTHERS Total 19.93% 40 40#41Other Businesses TM KONRC KNR CONSTRUCTIONS LIMITED Irrigation & Water Management Projects And Urban Water Infrastructure Management Strong growth opportunity in development of Agricultural Infrastructure Execution of Irrigation & Water Supply Projects with Joint Venture Partners ❖ Executed 3 Projects in Telangana & 1 Project in Bihar Executed an Urban Water Infrastructure project in the State of Karnataka 41#42TM KONRC KNR CONSTRUCTIONS LIMITED For further information, please contact: Company: Investor Relations Advisors: KNR Constructions Ltd. CIN: L74210DL1995PLC238364 Mr. K. Venkata Ram Rao (GM - Finance & Accounts) [email protected] www.knrcl.com Strategic Growth Advisors Pvt. Ltd. CIN: U74140MH2010PTC204285 Mr. Jigar Kavaiya / Mr. Kevin Shah +91-9920602034 / +91 9769122099 [email protected]/[email protected] www.sgapl.net 42