#1CIN L45201 RJ2003PLC018049 HGIEL We Make People Move.... OH.G. INFR. ENGG LTD WE MAKE PEOPLE MOVE May 24, 2022 BSE Limited Phiroze Jeejeebhoy Towers, Dalal Street, Mumbai- 400 001 Scrip Code 541019/973671 Dear Sir/Madam, Sub: Investor Presentation Q4 & FY22 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 Investor Presentation on the Audited Financial Results of the Company for the quarter and financial year ended March 31, 2022. The above information is also being uploaded on the Company's website at www.hginfra.com This is for your information and records. Thanking you, Yours faithfully, For H.G. Infra Engineering Limited Sanket Dehr Ankita Mehra Infra I Il Floor Sheet Mohar ing Pinza A-1 Tilak Marg, C-Schime Company Secretary & Compliance Officer ICSI. M. No-A33288pur-302001 Encl: as above H. G. INFRA ENGINEERING LTD. Visit us at: www.hginfra.com Corp. Office III Floor, Sheel Mohar Plaza, A-1, Tilak Marg, C-Scheme E-mail : [email protected] Jaipur-302001 (Raj.) Regd. Office 14, Panchwati Colony, Ratanada, Jodhpur-342001 (Raj.) Tel.: +91 141 4106040-41 Fax: +91 141 4106044 Tel.: +91 291 2515327#2OVKOV НАЗОСИЯ INFRA G. WE MAKE ENGG. L PEOPLE LTD. .. MOVE H.G Infra Engineering Ltd. Investor Presentation Q4 & FY22#3INFRA H.G. ENGG LTD. LE MOVE LAKE PEOPLE WE 2 3 HG Infra Our Journey So Far Financial Highlights Q4 & FY22 Operational Highlights Q4 & FY22#4Company overview Leading Road/ Highway Construction Company 19 20+ 9 8 Years of execution Active Projects HAM Projects States 27% Strong Growth Trajectory 29% 42% Revenue CAGR (4 years) EBITDA CAGR (4 years) Profit CAGR (4 years) H.G INFRA ENGG. WE MAKE PEOPLE MOVE Pan India Presence 100% North India (Incorporation) North 20% South 40% → East 28% West 12% (Today) Robust Business Model 2,000+ Fleet of Modern Equipment Multiple Digital initiatives to enhance processes 4,800+ Number of Employees LTD. 3#5What we promised vs what we delivered in FY22 INFRA . H.G ENGG. WE MAKE PEOPLE MOVE LTD. Order Inflow (Rs Cr) Outcome FY22 Target Revenue (Rs Cr) Target ≥3,400 3,615 Revenues increased by 43% year on year, maintaining our steadfast commitment towards execution and growth Operating Profit (Rs Cr) Target ≥550 Outcome FY22 585 16.2% EBITDA Margins remained in range despite input price inflation. We remain focused on our strategy of selective bidding with an emphasis on operational efficiencies to continue maintaining our margin profile ≥5,000 Outcome FY22 4,328 Order inflow was muted during the year given the increasing competition in EPC and HAM projects. Our focus continues to be on orders which meet our margin/IRR criteria. We are optimistic of the future given the strong bid pipeline Debt (Rs Cr) Target ≤300 Outcome FY22 315 Debt remains within guided range, while we further improved Debt to Equity to 0.23x from 0.28x the previous year. Net debt stood at Rs 156 Cr as of year end#6One of the fastest growing EPC companies 13,927 Revenue (Rs Mn) 27% CAGR 25,350 21,961 20,098 36,152 FY18 FY19 FY20 FY21 FY22 46,071 Order Book (Rs Mn) 15% CAGR 79,729 71,028 70,400 62,223 Mar'18 Mar'19 Mar'20 Mar'21 Mar'22 Standalone financials Timely execution of all projects with no delays in any project INFRA ENGG. LTD. WE MAKE PEOPLE MOVE 5#7With profitability growth outpacing revenue growth EBITDA (Rs Mn) and Margin (%) 29% CAGR 5,847 33% Return on Capital Employed FY22 PAT (Rs Mn) and Margin (%) 42% CAGR 3,388 4,181 2,110 3,419 9.4% 3,032 1,657 1,236 8.3% 2,081 16.4% 16.2% 15.6% 15.1% 25% Return on Equity 7.5% 843 14.9% FY22 6.1% 6.1% FY18 FY19 FY20 FY21 FY22 Standalone financials FY18 FY19 FY20 FY21 FY22 Strict discipline in selecting and executing orders translating into robust margins and return profile *ROCE = EBIT/Total Assets - Current Liabilities | ROE = Net Income/ Shareholder's Fund H.G INFRA ENGG. WE MAKE PEOPLE MOVE LTD.#8Strong repository of assets promoting efficiencies Gross Block (Rs Mn) 8,077 7,602 6,898 6,106 4,897 Mar'18 Mar'19 Mar'20 Mar'21 Mar'22 Fixed Asset Turnover (x) 5.2 4.5 4.6 4.6 7.8 INFRA ENGG. LTD. WE MAKE PEOPLE MOVE Mar'18 Mar'19 Mar'20 Mar'21 Mar'22 Invested ~Rs 3,596 Mn in plant and machinery in last 4 years Fleet of modern construction equipment totaling 2,000+ for large scale execution 7#9Maintaining a healthy balance sheet Net Working Capital (Days) ■Debtor Days Inventory Days Creditor Days I I I 52 Days 46 Days i 41 Days 33 Days 31 Days 51 52 51 69 46 69 91 45 95 79 42 88 49 36 54 FY18 FY19 FY20 FY21 FY22 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) Net working capital days = Debtor days + Inventory days - Creditor days Standalone financials ✓ 0.75 FY18 0.58 FY19 Debt to Equity (x) 0.45 FY20 Debt to Equity = Total debt/Shareholders Equity 0.28 0.23 FY21 FY22 INFRA ENGG. WE MAKE PEOPLE MOVE 8 LTD.#10INFRA H.G. ENGG LTD. EMOVE LAKE PEOPLE WE 2 3 HG Infra Our Journey So Far Financial Highlights Q4 & FY22 Operational Highlights Q4 & FY22#11Full Year Highlights Quarter Highlights INFRA ENGG. Consistent financial performance and growth H.G LTD. WE MAKE PEOPLE MOVE Revenue (Rs Mn) EBITDA (Rs Mn) & EBITDA Margin (%) PAT (Rs Mn) & PAT Margin (%) 10,308 Q4FY21 16.4% 15.3% 9.5% 8.9% 10,259 1,694 -1% -7% 1,568 -7% 977 911 Q4FY22 Revenue (Rs Mn) 36,152 25,350 43% Q4FY21 Q4FY22 Q4FY21 Q4FY22 EBITDA (Rs Mn) & EBITDA Margin (%) PAT (Rs Mn) & PAT Margin (%) 16.5% ! | 16.2% ! 40% 5,847 4,181 8.3% 9.4% 3,388 61% 2,110 FY21 FY22 FY21 FY22 FY21 FY22 10#12Standalone profit & loss statement INFRA ENGG. LTD. WE MAKE PEOPLE MOVE Particulars Q4FY22 Q4FY21 YOY FY22 FY21 YOY Revenue from operations 10,259 10,308 -0.5% 36,152 25,350 42.6% Cost of material consumed 5,066 4,628 17,919 11,857 Contract and site expenses 3,204 3,589 10,763 7,952 Employee expenses 335 296 1,279 1,093 Other expenses 86 100 344 267 Total Operating expenses 8,691 8,613 30,305 21,169 EBITDA 1,568 1,695 -7.5% 5,847 4,181 39.8% EBITDA margin 15.3% 16.4% 16.2% 16.4% Finance Cost 160 192 528 596 Depreciation 219 226 851 844 Other Income PBT PBT margin Tax Expenses (Credits) PAT 27 48 78 80 1,216 1,325 -8.2% 4,546 2,821 61.1% 11.9% 12.9% 12.6% 11.1% 305 348 1,158 711 911 977 -6.8% 3,388 2110 60.6% PAT margin 8.9% 9.5% 9.4% 8.3% Other comprehensive income -11 -6 -14 -4 Total comprehensive income 900 971 3,373 2,106 11#13Consolidated profit & loss statement Particulars Q4FY22 Q4FY21 YOY FY22 FY21 YOY Revenue from operations 10,647 10,592 0.5% 37,514 26,097 43.7% Cost of material consumed 5,066 4,627 17,919 11,857 Contract and site expenses 3,209 3,594 10,782 7,967 Employee expenses 340 300 1,299 1,108 Other expenses 107 114 413 334 Total Operating expenses 8,722 8,635 30,413 21,266 EBITDA 1,925 1,957 -1.6% 7,101 4,832 47.0% EBITDA margin 18.1% 18.5% 18.9% 18.5% Finance Cost 345 309 1,177 942 Depreciation 219 226 851 844 Other Income PBT PBT margin Tax Expenses (Credits) PAT 26 43 73 74 1,387 1,465 -5.3% 5,146 3,120 64.9% 13.0% 13.8% 13.7% 12.0% 347 354 1,346 753 1,040 1,111 -6.4% 3,800 2,367 60.5% PAT margin 9.8% 10.5% 10.1 9.0% Other comprehensive income -11 -6 -14 -4 Total comprehensive income 1,029 1,105 3,786 2,363 INFRA . H.G ENGG. LTD. WE MAKE PEOPLE MOVE 12#14Standalone Balance Sheet INFRA ENGG. LTD. WE MAKE PEOPLE MOVE Rs Mn Mar'22 Mar'21 Rs Mn Mar'22 Mar'21 Share Capital 652 652 Fixed Assets incl. CWIP 4,494 4,813 Reserves 12,992 9,670 Other Financial Assets 3,892 2,771 Shareholders' Funds 13,644 10,322 Other Non Current Assets 242 181 Secured Loans 1,598 945 Total Non-Current Assets 8,628 7,765 Other liabilities 95 864 Inventories 1,836 1,680 Total Non-Current Liabilities 1,693 1,809 Sundry Debtors 6,953 6,534 Trade Payables 4,320 4,146 Cash and Bank 1,585 2,584 Other Current Liabilities 146 131 Other Financial Assets 307 91 Current Tax Liabilities 144 74 Contract Assets 3,512 2,654 Other Financial Liabilities 199 144 Other Current Assets 972 499 Contract Liabilities 2,108 3,236 Total Current Assets 15,165 14,042 Short Term Borrowings* 1,549 1,945 Total Current Liabilities 8,466 9,676 Assets classified held for sale 10 Total Liabilities 23,803 21,807 Total Assets 23,803 21,807 *Includes payables under MSME Trade receivables discounting system (TReDS)- Rs. 623.28 Mn for Mar' 22 (Rs 754.11 Mn in Mar'21) 13#15Consolidated Balance Sheet INFRA ENGG. LTD. WE MAKE PEOPLE MOVE Rs Mn Mar'22 Mar'21 Rs Mn Mar'22 Mar'21 Share Capital 652 652 Fixed Assets incl. CWIP 4,499 4,818 Reserves 13,708 9,974 Other Financial Assets 9,148 4,241 Shareholders' Funds 14,360 10,626 Other Non Current Assets 1,292 311 Secured Loans 9660 5,570 Total Non-Current Assets 14,939 9,370 Other liabilities 300 899 Inventories 1,836 1,680 Total Non-Current Liabilities 9,960 6,469 Sundry Debtors 6,354 5,817 Trade Payables 4,320 4,146 Cash and Bank 1,645 2,626 Other Current Liabilities 158 132 Other Financial Assets 3,158 3,326 Current Tax Liabilities 144 74 Contract Assets 3,587 2,654 Other Financial Liabilities 254 336 Other Current Assets 1,390 1,364 Contract Liabilities 1,549 2,959 Short Term Borrowings* Total Current Assets 17,969 17,467 2,172 2,095 Total Current Liabilities 8,598 9,742 Assets classified held for sale 10 Total Liabilities 32,918 26,837 Total Assets 32,918 26,837 *Includes payables under MSME Trade receivables discounting system (TREDS)- Rs. 623.28 Mn for Mar'22 (Rs 754.11 Mn in Mar'21) 14#16Debt Breakup Consolidated Debt Breakup 73% 27% ■Standalone Debt ■ Project Debt INFRA ENGG. LTD. Standalone Debt Breakup WE MAKE PEOPLE MOVE 31% 55% 14% ■ Term Loan ■Working Capital ■ NCD Rs Mn Standalone debt Project debt* Total consolidated debt Consolidated Cash & Bank *Net off loan fees (56.66 Mn) amortizable for HAM projects. Mar-22 Rs Mn * Term loan + current maturities* 3,147 Non-Convertible Debentures (NCD) 8,686 Working capital 11,833 Total standalone debt 1,645 Standalone Cash & Bank Mar-22 1,738 970 439 3,147 1,585 *Includes payables under MSME Trade receivables discounting system (TREDS)- Rs 623.28 Mn for Mar' 22. Rating upgrade (ICRA) from A+ to AA- (Long term facilities) & from A1 to A1+ (Short term facilities) 15#17INFRA H.G. ENGG LTD. EMOVE LAKE PEOPLE WE 2 3 HG Infra Our Journey So Far Financial Highlights Q4 & FY22 Operational Highlights Q4 & FY22#18- Projects completed during the year HAM Projects Rewari Ateli Mandi Received provisional completion certificate Upgradation of 4 lane of Rewari Ateli Mandi section in the state of Haryana BPC-Rs 5,751 Mn EPC Rs 4,838 Mn - Completion effective from 15th November 2021 Completed 170 days ahead of revised scheduled completion date Gurgaon Sohna Received provisional completion certificate 6 laning and strengthening of NH- 248A in the state of Haryana BPC Rs 6,060 Mn - EPC Rs 5,150 Mn - Completion effective from 25th February 2022 - - - - - Narnaul Bypass Received provisional completion certificate 6/4 laning and strengthening of NH-11 in the state of Haryana BPC-Rs 9,521 Mn - EPC Rs 8,010 Mn Completion effective from 11th March 2022 Completed 255 days ahead of revised scheduled completion date Received PCOD for EPC Projects H.G INFRA ENGG. WE MAKE PEOPLE MOVE Banar - Bopalgarh (Rajasthan) BPC Rs 2,070 Mn - Completion effective from 12th April 2021 Morshi Chandur Bazar- Achalpur (Maharashtra) - BPC Rs 2,380 Mn Completion effective from 15th December 2020 Jodhpur - Marwar (Rajasthan) BPC Rs 3,040 Mn - Completion effective from 15th November 2021 17 LTD.#19Other project updates/ develpments during the year Project Developments Projects Awarded H.G INFRA ENGG. WE MAKE PEOPLE MOVE Awarded EPC project in the State of Karnataka in the month of Jan '22 Development of Six Lane highway with access control of Neelmangala-Tumkar including Tumkar bypass section of NH-48 under Bharatmala Pariyojna Phase I Bid Project Cost - Rs 8,441 Mn (Excluding Taxes) Awarded 2 HAM projects in the State of Odisha in the month of Oct'21 Development of Six Lane Kaliagura Baunsaguar section of NH 130 CD under Raipur Visakhapatnam Eco Corridor (Package OD 5) Bid Project Cost - Rs 14,921 Mn & EPC Cost - Rs 12,850 Mn (Both Excluding Taxes) Development of Six Lane Baunsaguar Baraja section of NH 130 CD under Raipur Visakhapatnam Eco Corridor (Package OD 6) Bid Project Cost - Rs 11,231 Mn & EPC Cost Rs 9,550 Mn (Both Excluding Taxes) - Awarded EPC project in the State of Delhi in the month of July '21 - Development of Six Lane Urban Extension Road from NH 1 to Karala – Kanjhawala Phase 1 Bid Project Cost - Rs 12,438 Mn (Excluding Taxes) Appointment Date for - - Raipur Visakhapatnam AP -1 received on 31st March 2022 Karala - Kanjhawala UER received on 28th October 2021 Financial closure of - - Raipur Visakhapatnam AP -1 achieved on 25th February 2022 Raipur Visakhapatnam OD5 achieved on 25th March 2022 - Total Order Inflow FY22 to date - Rs 43,279 Mn 18 LTD.#20Well diversified order book as on 31st March 2022 H.G INFRA ENGG. LTD. WE MAKE PEOPLE MOVE Project Awarding Authority Project Status ~Completion Progress as on 31st 'Mar' 22 Unexecuted Value (Rs Mn) Private 8% Client type break- Delhi Vadodara Pkg-9 Mancherial Repallewa Delhi Vadodara Pkg-8 Hapur Morradabad NHAI Under Execution 59% 4,955 up Adani Under Execution 56% 4,057 Govt. 92% NHAI Under Execution 75% 2,039 IRB - MRM Under Execution 78% 1,889 Rewari Bypass Pkg-4 NHAI Under Execution 60% 1,800 MORTH Projects (MH) MORTH Under Execution 91% 1,325 Rewari Ateli Mandi NHAI Under Execution 95% 271 Karnataka, 11% Odisha, 28% Narnaul Bypass NHAI Under Execution 98% 130 Delhi Vadodara Pkg-4 NHAI Under Execution 99% 99 Geographical break-up AP, 10% UP, 2% Rajasthan (World Bank funded) PWD Under Execution 89% 658 Gurgaon-Sohna (Rajiv chowk) NHAI Under Execution 100% 12 Karala-Kanjhawala UER NHAI Under Execution 4% 11,884 Delhi, 15% Rajasthan, 10% Maharashtra, 2% Haryana, 2% Telangana, 20% Raipur-Visakhapatnam AP-1 NHAI Under Execution 2% 7,927 Khammam-Devarapalle Pkg-1 NHAI A.D Awaited 6,071 Khammam-Devarapalle Pkg-2 NHAI A.D Awaited 5,042 Raipur-Visakhapatnam OD-5 NHAI A.D Awaited 12,766 EPC Raipur-Visakhapatnam OD-6 NHAI A.D Awaited 9,502 45% Neelmangala-Tumkur Others NHAI A.D Awaited 8,436 Project type break-up HAM Under Execution 57% 55% 866 Grand Total 79,729 - *A.D Appointed Date 19#21Expanding selective HAM projects Grant Total Invested Debt as on Project Awarding authority BPC State Kms Lanes Amount Debt Equity 31st Mar '22 (Rs. Mn) (Rs. Mn) (Rs. Mn) (Rs. Mn) (Rs. Mn) INFRA ENGG. LTD. WE MAKE PEOPLE MOVE Physical Progress on 31st Mar' '22 Gurgaon-Sohna (Rajiv chowk) (%) NHAI Haryana 12.7 6,060 2,424 2,879 729 2,499 100% Rewari Ateli Mandi NHAI Haryana 30.4 5,750 2,300 2,270 688 1,993 95% NHAI Haryana 40.8 9,521 3,808 4,060 1,235 3,400 98% Narnaul Bypass Rewari Bypass Pkg-4 NHAI Haryana 14.4 5,220 2,088 2,200 465 850 60% Khammam Devarapalle Pkg-1 NHAI Telangana 33.6 7,721 3,088 3,100 4 Khammam Devarapalle Pkg-2 NHAI Telangana 29.5 6,371 2,548 2,560 4 Raipur Visakhapatnam AP-1 NHAI Andhra Pradesh 31.8 10,601 4,240 4,520 388 Raipur Visakhapatnam OD-5 NHAI Odisha 44.0 14,921* 5,968 6,670 30 30 Raipur Visakhapatnam OD-6 NHAI Odisha 45.5 11,231* 4,492 5,150 2 * Excluding GST 20#22Status of new projects INFRA HWEMA WE MAKE State Project Туре BPC (Rs Mn) LOA Received Agreement Signed Status of Land Appointed Date Karala-Kanjhawala UER Delhi EPC 13,931 23rd July 2021 8th Sept 2021 ~95% land is available Declared w.e.f. 28th Oct 2021 Raipur Visakhapatnam AP-1 Andhra Pradesh HAM 10,601 30th July 2021 14th Oct 2021 ~81% land is available Declared w.e.f. 31st Mar 2022 Khammam Devarapalle Pkg-1 Telangana HAM 7,721 15th Sept 2021 To be signed ~52% land is available Khammam Devarapalle Pkg-2 Telangana HAM 6,371 15th Sept 2021 25th Feb 2022 ENGG. PEOPLE ~95% land is available After achievement of financial closure. (within 150 days from signing of Agreement) Raipur Visakhapatnam OD-5 Odisha HAM 14,921 25th Oct 2021 14th Dec 2021 ~81% land is available Raipur Visakhapatnam OD-6 Odisha HAM 11,231 25th Oct 2021 14th Dec 2021 ~80% land is available Neelmangala Tumkar Karnataka EPC 8,441 31st Jan 2022 To be signed ~90% land is available Awaited LTD. MOVE 21#23Disclaimer INFRA ENGG. LTD. WE MAKE PEOPLE MOVE 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. 22 22#24INFRA H.G. ENGG LTD. LE MOVE LAKE PEOPLE WE Thank You HG Infra Engineering Ltd Rajeev Mishra, CFO [email protected] III Floor, Sheel Mohar Plaza, A-1, Tilak Marg, C-Scheme, Jaipur 302001 HGIEL Make People Move... Pareto Capital (Investor Relations) Pooja Dokania [email protected] Rishav Das [email protected] 210, B Wing, Kanakia Wall Street Andheri East, Mumbai - 400069 PARETO CAPITAL