RITES 04092018113521 Invest

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RITES 04092018113521 Invest RITES Limited Investor Presentation Business Profile September 2018 1 Content 1 Company Overview 3 2 Competitive Strengths 9 3 Financial Performance 17 4 Industry Analysis 25 2 Company Overview 3 Company Overview A Miniratna (Category-I) Schedule ‘A’ Public Sector Enterprise A leading player in the transport consultancy and engineering sector in India Export arm of Indian Railways for Locomotive, Rolling Stock, equipment and spares Consistently dividend paying company during the last five years Experience spanning 44 years and have undertaken projects in over 55 countries 4 RITES Journey Listing of Equity Share with Stock Exchanges 2018- Secured turnkey project from 19 MoR for doubling of Railway Line 2015- 16 2012- Formed a JVC with SAIL for 13 manufacturing of wagons 2009- 10 2007- Incorporation of Railway Energy Management Company Ltd. Granted Mini Ratna 08 category-1 status 2005- 06 Upgraded to schedule ‘A’ Public Sector 1994- Enterprise 95 1974- 75 i)Export contract for supply of locos ii) Consultancy agreement for mass rapid transit system for Delhi Incorporated as Private Limited Company 5 Key Services & Product Offerings Techno Economic Project Management Construction viability- Feasibility Consultancy Supervision & DPR Consultancy Services Quality Assurance & Material System Design Engineering Inspection Services Management Export of Locomotive, Rolling stock and spares Locomotive Leasing Services Turnkey Construction Services 6 Key Subsidiary and JV • Railway Energy Management Company Ltd. was • SAIL-RITES Bengal Wagon Industry Pvt. Ltd. incorporated on August 16, 2013 to carry out was incorporated on December 13, 2010 business relating to: • Involved in the business of – augmenting capacity in all activities relating ₋ Trading, selling, import, export, to energy efficiency and power generation; manufacturing of railway wagons – Undertaking any kind of projects for power including high end specialized wagons, generation in the field of renewable energy wagon prototypes, fabricated resources, components/parts of railway vehicles. – Sale of power generated. ₋ Its ancillary units including to repair, • It has commissioned a wind power project of manufacturing items of locomotives, capacity 26 MW and has also concluded power machineries, equipments and other procurement contracts for approximately 1,175 related components. MW across various states in India. • National High Speed Rail Corporation Limited has mandated REMCL to undertake techno – economic viability studies and related surveys of power sourcing arrangements. 7 Recent Accolades Dun & Bradstreet PSU Award 2017 Industrial Development & Technical Consultancy Services Export Awards from EEPC India, Northern Region Excellence in Exports in Engineering Services, large enterprises EEPC Gold Trophy Best export performance for the year 2015-16 Rajbhasha Gaurav Purushkar Pratham for 2016- 17 Governance Now PSU Award 2016 Business diversification India Pride Awards from Dainik Bhaskar Excellence in performance and services 8 Competitive Strengths 9 Strengths Technical expertise and business divisions with specialized domain knowledge Preferred consultancy Strong and consistent financial organization of the Government performance supported by of India including the IR robust internal control and risk management system Comprehensive range of Experienced management consultancy service offerings and a personnel and technically diversified sector portfolio in the qualified team transport infrastructure space Stronger RITES 10 Comprehensive Range of Services Conducting techno-economic feasibility and Preparing detailed project report Ports Design engineering activities Urban Procurement assistance Transport Airports Project management activities Railways Inland Quality assurance waterways Roads & Highways Training and construction supervision Ropeways Transaction advisory Commissioning support including operations and management 11 Business Divisions Technical Rail Infrastructure Division Urban Infrastructure Division . Railway transportation and economics, Expertise & Urban and regional transport infrastructure . Electrical engineering, signal and Specialized including but not limited to feasibility telecommunications domain . Dedicated freight corridors studies, DPR, general consultancy for metros . Track and survey, knowledge Highways and Ports Division . Geo – technology and civil engineering design Roads and highways including bridges via ducts and tunnels, water resources engineering, ports and harbours, inland Quality Assurance Division water transport, including preparation Third party inspection and vendor of feasibility studies, DPR, project assessment to various clients management consultancy and Quality Laboratory testing services in India Assurance service Technical Services Division Expotech Division Integrated export packages for Building and Airports Division Design and development of rolling railway locomotives and rolling stock, procurement and logistics Project Management Consultancy stock management consultancy and for construction of institutional, locomotive leasing services Technical consultancy services for commercial, residential buildings workshop modernization, facility Operation and maintenance Development of greenfield and planning for rolling stock services of railway sidings for brownfield airports, airport maintenance, training of various clients terminals, inland container depots maintenance personnel 12 Functional Directors Mr. Rajeev Mehrotra Chairman & Managing Director Experience – 34 years Mr. Ajay Kumar Gaur Director- Finance Experience – 33 years Mr. Mukesh Rathore Director - Technical Experience – 36 years *Mr. Arbind Kumar, Director (Projects) has superannuated on 31.08.2018 13 Govt. Nominee & Independent Directors Mr. Bhupendra Kumar Agarwal Mr. A.P. Dwivedi Govt. Nominee Director Govt. Nominee Director Mr. Satish Sareen Dr. Pramod Kumar Anand Independent Director Independent Director Dr. Vidya Rajiv Yeravdekar Mr. Anil Kumar Goel Independent Director Independent Director Dr. Rajendra N. Goyal Ms. Geethakumary Independent Director Independent Director 14 Employee Productivity ₹ in Crore REVENUE PER EMPLOYEE (STANDALONE) FY18 Approx 1,400 Revenue per 0.47 0.49 regular skilled employee: 0.41 engineers/ ₹ 49 lakh 0.36 professionals Lorem ipsum This is dummy text it is not here to be read FY15 FY16 FY17 FY18 Status Employees ason 30.06.2018 Experience Regular 2,090 Management Deputation 159 Personnel & Contract 1,151 Technically Qualified team Total 3,400 15 Growth Strategies Leverage our experience and continue to build on our core competencies in transport infrastructure sector Strengthen our EPC / Turnkey business Expand our international operations Expand our operations in power procurement and renewable energy (REMCL) 16 Financial Performance Summary 17 Strong Revenue Growth(Consolidated) ₹ in Crore OPERATIONAL REVENUE SEGMENTAL REVENUE 17(1.1%) 1503 147 (9.8%) 1351 232 (15.4%) 1102 1017 92(6.1%) 1015 (67.6%) Consultancy services Leasing services Export sales Turnkey construction projects FY15 FY16 FY17 FY18 sale of power generation 18 Strong Earnings (Consolidated) ₹ in Crore EBITDA & EBITDA MARGINS(%) PAT & PAT MARGINS (%) 572 363 557 555 340 337 480 303 41.0% 43.0% 35.5% 34.3% 25.9% 26.3% 21.6% 21.8% FY15 FY16 FY17 FY18 FY15 FY16 FY17 FY18 Amount indicated for FY18 is after absorbing the impact of full year pay revision 19 Value Generation (Consolidated) ₹ in Crore NETWORTH & ROE (%) EPS (IN ₹) 20.0% 2400 17.4 2206 19.0% 18.6% 17.0 18.0% 2200 18.0% 2038 17.0% 16.4 16.1% 15.8% 2000 16.0% 1883 15.0% 1800 1629 14.0% 15.2 1600 13.0% 12.0% 1400 11.0% 10.0% 1200 FY15 FY16 FY17 FY18 FY15 FY16 FY17 FY18 Cash in hand as on 31.03.2018 stands at ₹ 1568 crore 20 Strong Order Book ₹ in Crore Consultancy `2384 Cr 31.0% 43.2% 22.9% Exports `1264 Cr 2.9% Consultancy Leasing Leasing `158 Cr Exports Turnkey Projects 32.9% Turnkey `1711 Cr 67.1% Total Order book as on 30.07.18 `5517 Crore Govt. & PSU Other *order book also includes US Dollar denominated projects and conversion to INR of such projects has been done at the time of award of the contract. 21 Few Major Domestic Projects Consultancy General engineering and design consultancy services for the Nagpur Metro Project, the Pune Metro Project and the Ahmedabad Metro Project Safety audit for sections of National Highways of aggregate length approximating 1,238 kilometres in eight states in India Design of the Rail-cum-Road Bogibeel Bridge, a fully welded and composite structure each spam 125 meters, length approx. 4,940 meters near Dibrugarh, Assam, India Project Management Consultancy for Passenger Terminal at Srinagar Airport Turnkey Doubling of railway line from Gooty to Dharmavaram for the South Central Railway in India on EPC basis Railway electrification works for the Ringas – Jaipur – Sawaimadhopur section for the North Western Railways and Vijaypur-Maksi section for West Central Railways Leasing Wet leasing of 5 nos. of WDS-6 Locomotives for Dhamra Port Company Limited 22 Few Major Foreign Projects Consultancy Construction supervision consultancy for the Metro Express Project and preparation of detailed project report for Trident Port in Mauritius Conduct of design consultancy services for construction of cargo complex, parallel taxi way and modification of old terminals in Paro International Airport, Bhutan Project Management Consultancy for East Bank - East Coast road linkage project in Guyana (South America) Feasibility Study and Preparation of Detailed Project
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