#1F EPC Roads & Highways Sunilhitech EARNING PRESENTATION Q1 / FY-2018 甲 Water Management (STP) 費 Transmission & Distribution Manufacturing Heavy Engineering Urban Buildings Civil Engineering Project Flyover & Bridges#22 Executive Summary Sunilhitech . • . COMPANY OVERVIEW Sunil Hitech Engineers Limited (SHEL) was incorporated in 1984 in Nagpur, India by Mr. Ratnakar Gutte. The company has evolved into a diversified company having presence in Engineering, Procurement and Construction across Power, Construction, and Infrastructure sector. SHEL has executed projects across 17 States in India. The company has executed projects for marquee clients across public and private sectors like NTPC, BHEL, MORTH, NHAI, BSHB, MAHAGENCO, NHIDCL, L&T, JSW, Reliance Energy etc. BUSINESS MIX EPC Projects EPC Projects for Roads & Highways, Flyover & Bridges, BOP & EPC assignments for power plants as well as providing comprehensive services in Civil Engineering, Architectural and Structural works. Operation & Maintenance The service portfolio covers providing permanent solutions to Operation, Overhauling & Maintenance (renovation and modernization) of Power & Steel plants and Road segment. Manufacturing Manufacturing includes Heavy Engineering Fab Shop catering to Power, Infrastructure, Process & Chemical Industries. FY17 STANDALONE FINANCIALS Total Income INR 21,046 Mn 3 Year CAGR 13.45% EBITDA INR 1,917 Mn 3 Year CAGR 10.55% EBITDA Margin 9.11% PAT INR 400 Mn 3 Year CAGR 16.96% PAT Margin 1.90%#33 Key Highlights Q1FY18 Financial Performance: Total Income: INR 5,540 Mn; YoY Growth of 23.63% EBITDA: INR 548 Mn; YoY Growth of 17.34% EBITDA Margin: 9.89% Net Profit: INR 137 Mn; YoY Growth of 22.32% PAT Margin: 2.47% Diluted EPS: INR 0.36 Q1FY18 Operational Highlights: • The present order book of the Company as on June 30, 2017 is about INR 50,180 Mn. • Commenting on the results, Mr. Sunil Gutte, Managing Director said: Sunilhitech "We are on course on the journey we embarked on to establish ourselves as a Civil Construction Company. This year saw majority of our orders coming from Non Power Business. This is a result of implementation of our strategy. We intend to continue to grow in both Power and Non Power Business. Power Business is a stronghold with our vast experience, whereas, our Experienced Team drives the Non Power Business for Sustained Results. We are expecting orders in the coming year in both the Verticals. Our results also reflect our commitment to create more value for the shareholders. We intend to be more focused on the expansion of margins rather than just being revenue focused and compromising the profitability. Our belief is that strong margin is the way to be sustainable in the long run."#4Key Roads Projects Sunilhitech Sr. No. Name of Client/Nature of Work Client Contract Value (INR Crs) EPC Projects 1 Madhugiri-Mulbagal, Karnataka MORTH 122.00 MORTH 2 Bankura Purulia, West Bengal 322.02 3 Sitamarhi-Jaynagar-Narahia, Bihar, Lot I MORTH 154.69 MORTH 4 Sitamarhi-Jaynagar-Narahia, Bihar, Lot II, MORTH 319.68 5 Hunli-Anini, Arunachal Pradesh, NHIDC NHIDC 434.00 MORTH 6 Parli-Pimpla-Dahiguda, Maharashtra 134.45 MORTH 7 Mehkar-Ajispur, Maharashtra 160.20 MORTH 8 Ajanta-Buldhana-Khamgaon-Shegaon-Deori, Maharashtra 257.40 MORTH 9 Nanded-Bhokar-Himayatnagar-Kinwat-Sarkhani-Mahur-Arni, Maharashtra 308.16 10 Kutchery Chowk-Ranchi-Piska More-Biju Para, Jharkhand NHAI 235.90 HAM Project 11 Bodhre-Dhule, Maharashtra NHAI 982.00#5Quarterly Financial Performance (Ind-AS) Particulars (INR Mn) Total Income(incl. other income) Operating Expenses EBITDA EBITDA Margin (%) Depreciation Finance Cost Profit Before Tax Taxation Profit After Tax Sunilhitech Q1 FY18 Q1 FY17 Y-o-Y 5,540 4,481 23.63% 4,992 4,014 24.36% 548 467 17.34% 9.89% 10.42% (53) bps 86 77 11.69% 254 220 15.45% 208 170 22.35% 71 58 22.41% 137 112 22.32% PAT Margin (%) 2.47% 2.50% (3) bps Other Comprehensive Income 1 1 Total Comprehensive Income 138 112 23.21% Diluted EPS (INR) 0.36 0.32 12.50%#66 Standalone Income Statement Particulars (INR Mn) Total Income(incl. other income) Operating Expenses EBITDA EBITDA Margin (%) Finance Cost Sunilhitech FY14 FY15 FY16 FY17 14,422 16,652 18,418 21,046 13,003 15,057 16,510 18,934 1,419 1,595 1,908 1,917 9.84% 9.58% 10.36% 9.11% 770 778 857 964 Depreciation 244 259 319 329 Exceptional Items 195 Profit Before Tax 405 558 732 624 Taxation Profit After Tax PAT Margin (%) Diluted EPS (INR) * Stock split & Bonus issue in FY 16-17 155 189 251 224 250 369 481 400 1.73% 2.21% 2.61% 1.90% 20.28 24.82 1.44* 1.06#77 Standalone Balance Sheet Sunilhitech Particulars (INR Mn) FY14 FY15 FY16 FY17 Particulars (INR Mn) FY14 FY15 FY16 FY17 EQUITIES & LIABILITIES Assets Shareholder Funds Non-current Assets (a) Share Capital - Equity 136 153 (b) Reserves & Surplus 2,992 3,426 173 3,970 378 Fixed Assets 4,253 (a) Tangible Assets 1,093 1,282 1,544 1,637 (c) Money Received against Share 30 62 Warrants Total Shareholder Funds 3,158 3,641 4,143 48 (b) Intangible Assets 4,679 (c) Capital Work-in-progress 33 22 10 4 73 117 136 Non-Current Liabilities (a) Long term Borrowings 304 436 405 (d) Non Current Investment 830 (e) Long Term Loans & Adv 357 500 512 441 713 711 359 276 (b) Long term Provisions 21 24 14 11 (f) other non-current assets 285 328 (c) Other Long term liabilities 957 1,144 1,069 1,376 (g) Deferred Tax Assets (net) 95 89 (d) Deferred Tax Liability -75 -90 0 0 Total Non-current Liabilities 1,207 1,514 1,488 2,217 Total Non-current Assets Current Assets 2,269 2,632 2,941 2,775 Current Liabilities (a) Inventories 1,395 1,748 2,081 2,555 (a) Short-Term Borrowings 3,508 3,363 3,642 3,975 (b) Trade Receivables 4,735 3,800 4,951 5,825 (b) Trade Payables 4,774 4,145 4,673 4,861 (c) Cash & Bank Balances 832 898 1,154 1,578 (c) Other Current Liabilities 1,161 1,224 1,371 1,423 (d) Current Investments 2 (d) Short-term provisions 23 Total Current Liabilities 9,466 48 8,780 43 9,729 13 (e) Short-term loans and advances 10,272 (f) Other current assets 1,519 1,893 1,229 1,390 3,079 2,964 3,004 3,045 Total - Current Assets 11,562 11,303 12,419 14,393 GRAND TOTAL 13,831 13,935 15,360 17,168 GRAND TOTAL 13,831 13,935 15,360 17,168#88 Financial Performance INCOME (INR Mn) CAGR 17.46% 21,046 18,418 16,652 14,422 11,051 EBIDTA (INR Mn) CAGR 9.86% Sunilhitech PAT (INR Mn) CAGR 9.42% 481 400 369 1,908 1,917 279 1,316 1,419 1,595 250 FY13 FY14 FY15 FY16 FY17 FY13 FY14 FY15 FY16 FY17 FY13 FY14 FY15 FY16 FY17 ROCE & ROE (%) Net Debt Equity (x) Book Value per Share (INR) 1.42 31.16 33.43 31.95 32.56 12.3 1.22 28.81 1.05 1.02 11.9 11.7 0.69 11.5 11.4 9.98 7.99 10.31 11.61 8.54 FY13 FY14 FY15 ROE ROCE FY16 FY17 FY13 FY14 FY15 FY16 FY17 FY13 FY14 FY15 FY16 FY17#99 Disclaimer Sunilhitech No representation or warranty, express or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information or opinions contained in this presentation. Such information and opinions are in all events not current after the date of this presentation. Certain statements made in this presentation may not be based on historical information or facts and may be "forward looking statements" based on the currently held beliefs and assumptions of the management of Sunil Hitech Engineers Limited, which are expressed in good faith and in their opinion reasonable, including those relating to the Company's general business plans and strategy, its future financial condition and growth prospects and future developments in its industry and its competitive and regulatory environment. Forward-looking statements involve known and unknown risks, uncertainties and other factors, which may cause the actual results, financial condition, performance or achievements of the Company or industry results to differ materially from the results, financial condition, performance or achievements expressed or implied by such forward-looking statements, including future changes or developments in the Company's business, its competitive environment and political, economic, legal and social conditions. Further, past performance is not necessarily indicative of future results. Given these risks, uncertainties and other factors, viewers of this presentation are cautioned not to place undue reliance on these forward-looking statements. The Company disclaims any obligation to update these forward-looking statements to reflect future events or developments. This presentation is for general information purposes only, without regard to any specific objectives, financial situations or informational needs of any particular person. This presentation does not constitute an offer or invitation to purchase or subscribe for any securities in any jurisdiction, including the United States. No part of it should form the basis of or be relied upon in connection with any investment decision or any contract or commitment to purchase or subscribe for any securities. None of our securities may be offered or sold in the United States, without registration under the U.S. Securities Act of 1933, as amended, or pursuant to an exemption from registration there from. This presentation is confidential and may not be copied or disseminated, in whole or in part, and in any manner. Valorem Advisors Disclaimer: Valorem Advisors is an Independent Investor Relations Management Service company. This Presentation has been prepared by Valorem Advisors based on information and data which the Company considers reliable, but Valorem Advisors and 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. Valorem Advisors also hereby certifies that the directors or employees of Valorem Advisors do not own any stock in personal or company capacity of the Company under review. For further information, please contact our Investor Relations Representatives: XX VALOREM ADVISORS Valorem Advisors Mr. Anuj Sonpal, CEO Tel: +91-22 3006-7521/22/23/24 Email: [email protected]