#1CIN L45201 RJ2003PLC018049 IHGIEL We Make People Move ... H H.G. INE INFRA ENGG. WE MAKE PEOPLE NOVE LTD July 31, 2023 BSE Limited Phiroze Jeejeebhoy Towers, Dalal Street, Mumbai- 400 001 Scrip Code 541019/973671 Dear Sir/Madam, Sub: Investor Presentation Q1FY24 National Stock Exchange of India Limited Exchange Plaza, C-1, Block-G, Bandra Kurla Complex, Bandra (East), Mumbai- 400 051 Scrip Symbol- HGINFRA Please find enclosed a copy of the Investor Presentation on the unaudited financial results of the Company for the quarter ended June 30, 2023. The above information is also being uploaded on the Company's website at www.hginfra.com This is for your information and appropriate dissemination. Thanking you. Yours faithfully, For H.G. Infra Engineering Limited ANKITA MEHRA Digitally signed by ANKITA MEHRA Date: 2023.07.31 18:25:11 +05'30' Ankita Mehra Company Secretary & Compliance Officer ICSI. M. No-A33288 Encl: as above Visit us at www.hginfra.com Corp. Office E-mail [email protected] Regd. Office H. G. INFRA ENGINEERING LTD. III Floor, Sheel Mohar Plaza, A-1, Tilak Marg, C-Scheme Jaipur-302001 (Raj.) 14, Panchwati Colony, Ratanada, Jodhpur-342001 (Raj.) Tel. +91 141 4106040-41 Fax: +91 141 4106044 Tel.: +91 291 2515327#2INFRA H.G. ENGG. LTD. LE MOVE MAKE PEOPLE WE H.G. Infra Engineering Ltd. Investor Presentation Q1 FY24#3Agenda H.G. Infra Engineering Ltd. 1 Company Overview 2 Financial Highlights 3 Operational Highlights 4 Historical Financials INFRA WE MAKE ENGG. LTD. PEOPLE MOVE MOVE Q1 FY 2024#4Company Overview Leading Road/Highway Construction Company Pan India Regional Presence North 52% South 19% 21 17 12 11 100% East 28% India Years of execution Active Projects HAM Projects States West 1% Strong Growth Trajectory 26% Revenue CAGR (5 years) 28% EBITDA CAGR (5 years) H.G. Infra Engineering Ltd. 38% Profit CAGR (5 years) Robust Business Model INFRA WE MAKE ENGG. LTD. PEOPLE MOVE 2500+ Fleet of Modern Equipment Multiple Digital initiatives to enhance processes Q1 FY 2024#5Q1 FY24 Financials Highlights INFRA WE MAKE ENGG. ------ LTD. PEOPLE MOVE H.G. Infra Engineering Ltd. Q1 FY 2024#6Standalone result highlights Q1FY24 H.G. Infra Engineering Ltd. Revenue 19.3% 12,713 EBITDA & EBITDA Margin 10,657 Q1FY24 Q1FY23 26.0% 15.2% --------16.1% PBT & PBT Margin 12.6% 22.2% 12.3% 1,312 Q1FY23 1,602 Q1FY24 All figures in INR Million 2,048 1,625 Q1FY24 PAT and PAT Margin 21.3% 9.2% Q1FY23 ---------->9.3% 976 Q1FY23 1,184 Q1FY24 Q1 FY 2024 INFRA WE MAKE ENGG. LTD PEOPLE MOVE MOVE#7Profit & loss statement Standalone All figures in INR Million Consolidated INFRA WE MAKE ENGG. ------ LTD. PEOPLE MOVE Particulars (Rs in Mn) Revenue from operations Q1FY24 Q1FY23 YOY Q1 FY24 Q1FY23 YOY 12,713 10,657 19.3% 13,512 11,059 22.2% Cost of material consumed 5,920 5,515 5,920 5,515 Contract and site expenses 3,750 3,055 3,765 3,065 Employee expenses 715 376 717 382 Other expenses 280 86 303 107 Total Operating expenses 10,665 9,032 10,705 9,069 EBITDA 2,048 1,625 26.0% 2,807 1,990 41.1% EBITDA margin 16.1% 15.2% 20.8% 18.0% Finance Cost 173 144 523 339 Depreciation 311 202 311 202 Other Income 38 33 54 34 PBT 1,602 1,312 2,027 1,483 Share of profit of associates 2 2 - PBT 1,602 1,312 22.2% 2,029 1,485 36.7% PBT margin 12.6% 12.3% 15.0% 13.4% Tax Expenses (Credits) 418 336 525 391 PAT 1,184 976 21.3% 1,504 1,094 37.4% PAT margin 9.3% 9.2% 11.1% 9.9% Other comprehensive income -3 -4 -3 -4 Total comprehensive income 1,181 972 1,501 1,090 H.G. Infra Engineering Ltd. Q1 FY 2024#8Debt Breakup Consolidated Debt Breakup- June 23 All figures in INR Million Standalone Debt Breakup - June 23 68.8% 31.2% ■Standalone Debt Project Debt Consolidated Debt Break-up Standalone debt Project debt* Total consolidated debt 26.8% 14.6% 58.6% ■Term Loan NCD Working Capital June'23 Standalone Debt Break-up June'23 Term loan + current maturities* 3,896 6,652 Non-Convertible Debentures (NCD) 970 14,660 Working capital 1,786 21,312 Total standalone debt 6,652 Standalone Cash & Bank 1,173 Consolidated Cash & Bank 1,183 * Project Debt including ST Borrowing amount of Rs 746.05 Mn for June' 23 H.G. Infra Engineering Ltd. *Includes payables under MSME Trade receivables discounting system (TREDS)- Rs 321.69 Mn for June' 23 * Inflow of funds which we were expecting in June 2023 got delayed due to change in signatories of NHAI. INFRA WE MAKE ENGG. LTD. PEOPLE MOVE MOVE Q1 FY 2024#9Q1 FY24 Operational Highlights INFRA WE MAKE ENGG. PEOPLE MOVE H.G. Infra Engineering Ltd. Q1 FY 2024#10Well diversified order book as on 30th June 2023 ENGG. G INFRA WE MAKE LTD. EOPLE MOVE Project Туре Awarding Authority % Order book Completion 30.06.2023 (Rs Mn) Client type break-up: Highway Projects from Government Clients Karnal Munak Road Highway-HAM NHAI 2.4% 8,295 30% ■Private ■Govt. Varanasi Ranchi Kolkata Highway P Highway-HAM NHAI 0.1% 11,092 10 70% Varanasi-Ranchi-Kolkata Highway P Highway-HAM NHAI 0.1% 7,895 13 Raipur-Visakhapatnam OD5 Highway-HAM NHAI 43.6% 7,630 Raipur-Visakhapatnam OD6 Highway-HAM NHAI 46.3% 5,476 Geographical break-up: Khammam-Devarapalle P1 Highway-HAM NHAI 16.3% 5,573 UP 34% Khammam-Devarapalle P2 Highway-HAM NHAI 24.4% 4,316 ■ Odisha Raipur-Visakhapatnam AP P1 Highway-HAM NHAI 46.7% 4,366 Rewari Bypass Pkg-4 Highway-HAM NHAI 86.5% 610 ■Telangana ■Delhi Neelmangala-Tumkur UER P1 Delhi Vadodara Pkg-9 Other Projects* Highway-EPC NHAI 65.8% 4,708 ■Karnataka Highway-EPC NHAI 97.4% 298 AP 16% Highway-EPC NHAI 10.6% 7,576 Other 1,638 Highway Projects from Private Clients Haryana Ganga Expressway Highway-EPC Adani 23.5% 33,945 ■Maharashtra Rajasthan 11% Himachal Pradesh 9% 7% 6% Jharkhand 4% 3% 1% ali 8% 1% Mancherial Repallewada Total-Highways Highway-EPC Adani 91.4% 796 1,04,214 Other Sectors Project type break-up Janakpuri West to R.K. Ashram Metro DMRC 13.0% 3,039 Corridor HAM EPC Bilaspur Himachal Pradesh Railway RVNL 15.4% 3,944 47% 53% Kanpur Central Railway Railway NCR 15.3% 5,549 Total-Other Sectors Grand Total H.G. Infra Engineering Ltd. 12,532 1,16,746 Q1 FY 2024#11Significant Events and update on New Projects LOA Received S. No. Kanpur Central Railway Station 1. 2. Project Name Redevelopment of Kanpur Central Railway Station at Kanpur on Engineering, Procurement and Construction (EPC) mode. NTPC Simhadri Rate Contract for Pond Ash at NTPC Simhadri Ash Dyke to road construction sites. LOA issued on 05-06-2023 23-05-2023 Declaration of Appointed Date S. No. RVNL Bhanupali-Bilaspur 1. Project Name Construction of Foundations, Substructure & Superstructure along with River Training/Protection Work, Earthwork & allied works for viaduct 1 & 2 in Between Chainage Km 47+415 To Km 50+900, in connection with Bhanupali-Bilaspur-Beri New Railway Line in District Bilaspur of Himachal Pradesh State, India. Appointed date declared w.e.f 24-05-2023 NTPC Simhadri 2. Rate Contract for Pond Ash at NTPC Simhadri Ash Dyke to road construction sites. H.G. Infra Engineering Ltd. 12-06-2023 (BG submission date) INFRA WE MAKE ENGG. ------ LTD. PEOPLE MOVE Q1 FY 2024#12Significant Events and update on New Projects COD Received Project Name COD received Maharashtra Pkg-1 Rehabilitation and Upgradation of Amravati- Nandgaon peth - Morshi- Warud - Pandhurna Section from Nandgaon Peth to morshi Section of NH-353K to two lane with paved shoulder Configuration on EPC Mode in the State of Maharashtra ( MH Pkg-1) 21-06-2023 Maharashtra Pkg-2 2. Rehabilitation and Up-gradation of 2 lane with paved shoulder configuration from Morshi to MH/MP border Design Ch. km.43.000 to km. 95.390 Section of NH No. 353J in the State of Maharashtra on EPC Mode (MH Pkg-2) 21-06-2023 Maharashtra Pkg-3 3. 30-06-2023 Rehabilitation and Augmentation of Katol to Warud from Design Ch. Km 60.100 to Ch. Km 100.565 (MH Pkg-3) Status of New Projects Name of Projects Bhanupalli Bilaspur - Beri - State Project Type Project Value LOA Received Agreement Signed % of Land Available Appointed Date (in Cr.) Kanpur Central Railway station Himachal Pradesh Uttar Pradesh Item Rate EPC 466.11 655.09 NTPC Simhadri Chhattisgarh 42.5 04th April 2023 05th June 2023 23rd May 2023 12th May 2023 Yet to be signed ~100% Declared on 24th May 2023 ~100% Yet to be declared 12th June 2023 (BG submission date) H.G. Infra Engineering Ltd. INFRA WE MAKE ENGG. ------ LTD. PEOPLE MOVE MOVE Q1 FY 2024#13An expanding portfolio of HAM projects Total All figures in INR Million INFRA ENGG. ------ WE MAKE LTD. Invested Project Awarding authority State Kms Lanes Grant Amount Sanctioned Equity till 30th Debt as on BPC (Rs. Mn) 30th June '23 (Rs. Mn) Debt(Rs. June '23( Rs. (Rs. Mn) Mn) Mn) Gurgaon-Sohna NHAI Haryana 12.72 6,060 2,424 2,879 729 2,645 Rewari Ateli Mandi NHAI Haryana 30.45 5,750 2,300 2,137 720 1,950 Narnaul Bypass NHAI Haryana 40.81 9,521 3,808 3,433 1,235 3,218 Rewari Bypass Pkg-4 NHAI Haryana 14.40 5,220 2,088 2,200 681 1,650 Khammam Devarapalle Pkg-1 NHAI Telangana 33.60 7,721 3,088 3,100 583 Khammam Devarapalle Pkg-2 NHAI Telangana 29.51 6,371 2,548 2,560 480 Raipur Visakhapatnam AP-1 NHAI Andhra Pradesh 31.77 10,601 4,240 4,520 886 1,200 Raipur Visakhapatnam OD-5 NHAI Odisha 44.00 14,921* 5,968 6,670 1,406 1,700 Raipur Visakhapatnam OD-6 NHAI Odisha 45.50 11,231* 4,492 5,150 861 1,550 Karnal Ringroad NHAI Haryana 34.50 9971* 3,988 4,650 2 Varanasi Kolkata Pkg-10 NHAI Jharkhand 35.60 13031* 5,212 6,200 2 Varanasi Kolkata Pkg-13 NHAI Jharkhand 28.70 9251* 3,700 4,450 2 Total 43,856 47,949 7,587 13,913 *Excluding GST H.G. Infra Engineering Ltd. Q1 FY 2024#14Historical Financial Highlights INFRA WE MAKE H.G. Infra Engineering Ltd. Q1 FY 2024 ENGG. LTD ------ PEOPLE MOVE#15H.G. Infra Engineering Ltd. Healthy Balance Sheet Net Working Capital (Days) 69 Debtor Days ☐ Inventory Days Creditor Days 46 Days 41 Days 33 31 23 Days Days Days 46 69 45 16 95 42 79 88 49 36 54 Net working capital days = Debtor days + Inventory days - Creditor days 64 36 77 0.58 Debt to Equity (x) 0.45 0.28 0.28 0.23 FY19 FY20 FY21 FY22 FY23 FY19 FY20 FY21 FY22 FY23 Debtor days = Average Trade Receivables (excl. retention money) /Revenue From Operations Inventory Days = Average Inventory / Cost of Materials Creditors Days = Average Trade Payables/ (Cost of Materials + Contract & Site Expenses) Debt to Equity = Total debt/Shareholders Equity Q1 FY 2024 WE MAKE INFRA ------ ENGG. EMOVE PEOPLE MOVE LTD.#16One of the Fastest growing EPC Companies EBITDA (Rs Mn) & EBITDA Margin Revenue (Rs Mn) 26.0% 5 Year CAGR 44,185 36,152 25,350 20,098 21,961 13,927 FY18 FY19 FY20 FY21 FY22 FY23 27.8% 5 Year CAGR 17.0% 16.1% 16.4% 16.2% 16.5% 16.0% 15.6% 15.5% 15.1% 14.9% 15.0% 14.5% 2,081 3,032 3,419 4,181 5,847 7,103 14.0% FY18 FY19 EBITDA FY20 FY21 FY22 FY23 EBITDA Margin H.G. Infra Engineering Ltd. PAT (Rs Mn) & PAT Margin Orderbook (Rs Mn) 22.3% 5 Year CAGR 46,071 Standalone financials 79,729 71,028 70,400 62,223 1,25,953 FY18 FY19 FY20 FY21 FY22 FY23 30% 9.4% 9.5% 0.0% 5 Year CAGR 8.3% 9.0% 7.5% 8.0% 3,500 6.1% 3,000 6.0% 7.0% 6.0% 2,500 5.0% 2,000 4,214 4.0% 3,388 1,500 3.0% 1,000 2,110 1,657 2.0% 500 1,236 842 1.0% 0 0.0% FY18 FY19 FY20 FY21 FY22 FY23 PAT PAT Margin Q1 FY 2024 INFRA WE MAKE ENGG. ------ PEOPLE MOVE MOVE LTD.#17Repository of Assets Gross Block (Rs Mn) 12,000 10,000 8,077 8,000 7,602 6,898 6,106 6,000 4,897 4,000 2,000 9.0 10,336 8.0 7.0 6.0 Net Fixed Asset Turn Over (X) 5.2 5.0 4.5 4.6 4.6 4.0 3.0 7.8 7.7 2.0 1.0 0 0.0 FY18 FY19 FY20 FY21 FY22 FY23 FY18 FY19 FY20 FY21 FY22 FY23 H.G. Infra Engineering Ltd. Fleet of modern construction equipment totaling 2500+ for large scale execution INFRA WE MAKE ENGG. LTD. EMOVE PEOPLE MOVE Q1 FY 2024#18Standalone and Consolidated balance sheet INFRA WE MAKE ENGG. LTD PEOPLE MOVE Standalone All figures in INR Million Liability FY23 FY22 Asset FY23 FY22 Share Capital 652 652 Fixed Asset incl. CWIP 6,931 4,494 Reserves 17,133 12,992 Non Current Assets 8,292 4,134 Shareholder's Fund 17,784 13,643 Inventory 2,353 1,836 Non Current Liability 2,716 1,693 Contract Assets Contract Liability 5,989 3,512 3,590 2,108 Current Liability Current Assets 11,003 6,358 11,528 9,826 Total Liability Total Assets 35,093 23,802 35,093 23,802 Consolidated Liability FY23 FY22 Asset FY23 FY22 Share Capital 652 652 Fixed Asset incl. CWIP 6,933 4,499 Reserves 18,556 13,708 Non Current Assets 17,445 10440 Shareholder's Fund 19,207 14,360 Inventory 2,353 1,836 Non Current Liability 15,455 9,961 Contract Assets Contract Liability 5,989 3,587 1,926 1,549 Current Liability Current Assets 12,668 7049 16,536 12,557 Total Liability Total Assets 49,256 32,919 49,256 32,919 H.G. Infra Engineering Ltd. Q1 FY 2024#19Disclaimer This presentation and the accompanying slides (the "Presentation"), which have been prepared by HG Infra Engineering 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. H.G. Infra Engineering Ltd. INFRA WE MAKE ENGG. LTD. PEOPLE MOVE MOVE Q1 FY 2024#20H.G. Infra Engineering Ltd. Thank You Company Contact: Rajeev Mishra (CFO) [email protected] III Floor, Sheel Mohar Plaza, A-1, Tilak Marg, C- Scheme, Jaipur-302001 Investor Relations Contact: Sana Kapoor Go India Advisors [email protected] M: +91 81465 50469 Sheetal Khanduja Go India Advisors [email protected] M: +91 97693 64166 INFRA MH.G. WE MAKE ENGG. LTD. PEOPLE MOVE MOVE Q1 FY 2024