Investor Presentation

May 2014

Safe Harbor
This presentation and the accompanying slides (the Presentation), which have been prepared by Ashoka Buildcon 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 Companys 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 companys ability to successfully
implement its strategy, the Companys future levels of growth and expansion, technological implementation, changes and
advancements, changes in revenue, income or cash flows, the Companys market preferences and its exposure to market risks, as
well as other risks. The Companys 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 forwardlooking 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.

Presentation Flow

Corporate Structure and Business Overview

Key Investment Highlights

Financial Highlights

Annexure : Project Details of ABL and ACL

Annexure : Toll Collection History

Corporate Structure

An Ecofriendly Corporate Office at Nasik

Corporate Structure
Ashoka Buildcon Limited (ABL Listed Entity)
EPC & RMC Business
SBI Macquarie to Invest
Rs. 700 Cr + Rs. 100 Cr
in ACL

Owned BOT Projects Portfolio

Ashoka Concessions Limited

(ACL)
BOT Projects

ACL Stake

BOT Projects

ABL Stake

Sheri Nallah Bridge

100.0%

Ahmednagar Aurangabad Road

100.0%

Nashirabad Railway-over Bridge

100.0%

Pune-Shirur Road

100.0%

Belgaum Dharwad Road

100.0%

Sambalpur Baragarh Road

100.0%

Dewas Bypass

100.0%

Dhankuni Kharagpur Road

100.0%

Ahmednagar Karmala Road

100.0%

Bhandara Road

51.0%

6 Foot Over Bridges in Mumbai

100.0%

Durg Chattisgarh Road

51.0%

Katni Bypass

99.9%

Jaora-Nayagaon Road

37.7%

Dhule Bypass

99.9%

Pimpalgaon-Nasik-Gonde Road

26.0%

Indore Edalabad Road

99.7%

Wainganga Bridge

50.0%

Anawali Kasegaon

5.0%

KSHIP WAP II Project

51.0%

New BOT Projects

Chennai ORR

ACL Stake
50.0%

Role of ABL & ACL

EPC arm of Ashoka Group

Ashoka Buildcon
Limited (ABL) :
EPC Arm

Ashoka Concessions
Limited (ACL) :
Asset Owner

Exclusive EPC and O&M contractor for all Projects of ACL

Bid for EPC contracts for other developers & NHAI projects

EPC of Transmission & Distribution (T&D) projects

BOT Projects

Owned Operational BOT Project portfolio

Bid for small and State BOT Projects

Exclusive BOT Project Developer for both ABL and SBI Macquarie

Exclusive Bidding Company for BOT Projects

ACL can utilize Macquarie technical points for NHAI qualification

PE Transaction Highlights
Rs. 800 Crs Private Equity Investment by SBI Macquarie in Ashoka Concessions Limited
(ACL)

ACL Subsidiary of Ashoka Buildcon Limited (ABL)

Received Rs. 623 Crs till May 2014

7 BOT projects transferred to ACL of which 3 are operational, 3 are under construction with on-going toll
collection and 1 is under construction

Fund to meet balance equity requirements of the BOT projects under construction

SBI Macquarie will have Equity Stake between 34% to 39% depends on the performance of one BOT project

Rs. 100 Crs will be invested towards any contingent requirements of 7 BOT Project portfolio

Business Overview of ABL

EPC Business

Own BOT Portfolio

Over 39 years of experience

Portfolio of 18 BOT Projects

60 Roads and Bridges, 57 Industrial / Institutional Buildings

BOT 19 operational / 5 under-construction / 4 handed-over

Spread across India - 6,438 lane kms

~5,155 lane kms - Third parties

~1,283 lane kms - Own projects (BOT)

1,526 lane kms spread across Maharashtra,

Madhya Pradesh and Orissa

Toll Collection of ~Rs. 195 Crs in FY14

Project Debt of ~Rs. 49 Crs as at March 2014

Investments in Ashoka Concessions Ltd.

Experience in Power T&D business

23 Power (Transmission & Distribution) works

Lighten 25,000 villages , 11,000+ kms Distribution line Network

Portfolio of 7 Large BOT Projects

3,557 lane kms spread across Maharashtra, MP,

Chhattisgarh, Karnataka, West Bengal and Orissa

Strong EPC Order Book* of Rs. 3,546 Crs

Portfolio Valuation of Rs. 2,060 Crs

Rs. 2,367 Crs in Roads and Bridges

Rs. 1,179 Crs in Power Transmission & Distribution

ABL holds 66% of ACL

Gross Toll Collection of Rs. 743 Crs in FY14

* - Excludes Cuttack-Angul Project

Key Investment Highlights of ABL

Roopnarayan bridge

Key Investment Highlights

EPC Exclusivity to ABL

Cash Flow generating own BOT Projects

Focused Management Team
Integrated Business Model A Key Differentiator
NH-6 : Access to Real Traffic

10

EPC Business of ABL

Ashoka Buildcon Limited Exclusive EPC contractor

Exclusivity for existing as well as for New BOT projects bagged by ACL

Strong EPC Order-book 1 of ~ Rs. 3,546 Crs

67% in Roads and balance 33% in Power Transmission and Distribution

EPC EBITDA 2 (Rs. Crs)

EPC Revenue (Rs. Crs)

207
1,508

995

FY 2010

1,059

185

1,432
146

1,162

127
108

FY 2011

FY 2012

FY 2013

FY 2014

FY 2010

FY 2011

FY 2012

FY 2013

FY 2014

EPC Business to grow strongly over the next few years

1 - Excludes Cuttack-Angul project
2 - Excluding Equity Raising Expenses of Rs. 10.5 Crs from EBITDA for FY 2013

11

Cash Flow generating own BOT Project

Stake (%)

Project
Costs

Debt
Outstanding 1

FY14
Toll Collection

Residual
Tenure (years)

Indore Edalabad Road

99.74

165

14.75

78.97

3.06

Wainganga Bridge

50.00

41

18.47

23.38

3.88

Pune-Shirur Road

100.00

161

--

22.59

1.53

Dewas Bypass

100.00

61

2.13

20.19

1.38

Katni Bypass

99.89

71

--

16.61

0.46

Dhule Bypass

99.99

--

5.74

0.4

Sheri Nallah Bridge

100.00

14

--

3.76

1.23

Ahmednagar Aurangabad Road

100.00

103

13.82

18.36

2.44

Nashirabad Railway-over Bridge

100.00

15

--

4.90

0.55

Ahmednagar Karmala Road 2

100.00

50

--

--

1.60

1,687

49.17

194.50

Rs. Crs

Total

1 - As at March 31, 2014

2 - Toll collection has stopped on Ahmednagar -Karmala project w.e.f. 17th November 2012

12

Focused Management Team

Ashok Kataria, Chairman

Responsible for the strategic direction of the company

A Civil Engineer with 38 years experience

Recipient of Udyog Ratna award from Indian

Economic Council and Life Time achievement award
from Association of Consulting Civil Engineers

Sanjay Londhe, CEO (Projects)

Satish Parakh, Managing Director

Responsible for the overall management of the

company

Has been associated with the company since 1982

A Civil Engineer with 33 years experience in the

construction industry

Ashish Kataria, MD of ACL

Heads Execution of Highway Projects

He is a Civil Engineer working with the company for last

24 years.

Heads RMC Division & is also responsible for

execution of highway projects.

A Civil Engineer and MBA with 9 years experience in

the construction industry

Paresh Mehta, Chief Financial Officer

Heads Finance, Banking, Taxation and Accounting

He is a Chartered Accountant with 20 years of experience.

Has been working with the company for last 13 years.

One of the pioneers in development of Roads BOT Assets in India

13

Integrated Business Model A Key Differentiator

Traffic Studies

Traffic database developed over 16 years to aide traffic study

Design , Engineering & Construction from inception to completion

In-House EPC

Re-leveraging

Re-leveraged 15 BOT Projects

Toll Collection

Own Proprietary Software to monitor Toll Collection on real time basis

Own construction equipment bank of around Rs. 250 Crs

Over 2,600 employees with over 650 technical staff

Provides equity funding for New Projects

In-house O&M reduces operational cost

Complete control over BOT Projects

14

NH-6 : Access to Real Traffic

NH-6 : High Growth Corridor

Toll Projects

Portfolio of 9 projects

Annual revision of toll rates linked to the Inflation

Presence in 4 out of 6 states connected to NH-6

An insulation to interest rate movements

Experience provides credible traffic data which aides

Economic growth leads to higher traffic

bidding of new projects.

Largest BOT Player on NH-6 with 1,739 Lane kms with over 24% PPP market share

15

Financial Highlights

Major Bridge across Wainganga River

16

Financial Highlights
Revenue

EBITDA
1,853

1,795

393

419

351

1,500
1,302
247
796

286

179

518

FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 FY 2014

FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 FY 2014

Net Profit

Toll Collections
743

125
101

121

652

113

80
38

FY 2009 FY 2010 FY 2011* FY 2012 FY 2013^ FY 2014

Rs. Crs

398
158

189

209

FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 FY 2014

* - Profit for FY 2011 adjusted for one time Exceptional Item of ~Rs. 107 Crs;
^ - Profit for FY 2013 includes ~Rs. 37 Crs (Equity Raising Expenses: Rs. 10.5 Crs, Additional Tax Expenses: 10.8 Crs & Nagar
Karmala project assets write-off : Rs. 15.7 Crs)

17

Financial Highlights
Gross Debt

Net Worth*
1,712
3,047
2,451
893

1,627
1,122

1,051

1,283

723

FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 FY 2014

Rs. Crs

1,034

347

462

FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 FY 2014

* - Including Share Application money with regards to Subsidiary

18

Annexure: ABL Project Portfolio

Indore-Edalabad Road Longest BOT Road in 2001

19

Operational Projects
Indore Edalabad

Dewas Bye Pass

Katni Bye Pass

Nagar Aurangabad

Nagar Karmala 2

99.74%

100%

99.89%

100%

100%

State

Madhya Pradesh

Madhya Pradesh

Madhya Pradesh

Maharashtra

Maharashtra

Client

MPRDC

PWD

PWD

PWD

PWD

2 Lane / 406.60

2 Lane / 39.60

2 Lane / 35.20

4 Lane / 168

2 Lane / 160

22-Sep-01

31-Aug-01

19-Aug-02

18-Dec-06

19-Feb-99

15 yrs

10 .75 yrs

12 yrs

10 .75 yrs

16.75 yrs

Grant / Revenue Share

45

Project Cost

165

61

71

103

50

Secured Debt o/s Mar. 14

14.75

2.13

Nil

13.82

Nil

Residual Tenure (Years)

3.06

1.38

0.46

2.44

1.60

2.16 Mn

0.55 Mn

0.46Mn

0.50 Mn

Rs. Crs

Project Details

Ownership

(%)

Financials

Concession
Terms

Lanes / Lane kms

Signing Date
Concession Period

Toll Collection (Rs. per day) 1

1 - Average Per day Toll Collection for FY14

2 - Toll collection has stopped on Ahmednagar -Karmala project w.e.f. 17th November 2012

20

Operational Projects
Wainganga

Dhule Bye Pass

Nashirabad

Sherinala

Pune Shirur

50%

99.99%

100%

100%

100%

State

Maharashtra

Maharashtra

Maharashtra

Maharashtra

Maharashtra

Client

MORT&H

PWD

MORT&H

PWD

PWD

Lanes / Lane kms

2 Lane / 26

2 Lane / 11.80

2 Lane / 8

2 Lane / 7

4 Lane / 216.00

Signing Date

16-Nov-98

28-Aug-97

16-Nov-98

23-Mar-99

7-May-03

Concession Period

18 .75 yrs

8.75 yrs

10 .9 yrs

16.25 yrs

12 .17yrs

Grant / Revenue Share

Project Cost

41

15

14

161

Secured Debt o/s Mar. 14

18.47

Nil

Nil

Nil

Nil

Residual Tenure (Years)

3.88

0.40

0.55

1.23

1.53

0.64 Mn

0.16 Mn

0.13 Mn

0.10 Mn

0.62 Mn

Rs. Crs

Financials

Concession
Terms

Project Details

Ownership

(%)

Toll Collection (Rs. per day)*

* - Average Per day Toll Collection for FY14

21

Project under implementation

KSHIP II Project

Special Purpose Vehicle (SPV) Ashoka GVR Mudhol Nipani Roads Limited has executed Concession
Agreement with The Chief Project Officer, Karnataka State Highways Improvement Project (KSHIP)
engaged by Government of Karnataka (Public Works Department)

Ashoka Buildcon Limited holds 51% and GVR Infra Projects Limited holds 49% equity share capital of SPV

The Project is on (DBFOMT) Annuity basis

The Estimated Project cost is ~Rs. 450 Crores

The project has a grant of Rs. 136 Crores and Semi-annual Annuity of Rs. 39 Crores

Concession period is of 10 years incl. construction period of 30 months from the Appointed Date

22

Annexure : ACL Project Portfolio

ECR, Chennai- Model Road declared by GoI

23

Operational Projects
Bhandara

Durg

Jaora - Nayagaon

51%

51%

22.85%

State

Maharashtra

Chhattisgarh

Madhya Pradesh

Client

NHAI

NHAI

MPRDC

4 Lane / 376.80

4 Lane / 368.200

4 Lane / 340.240

18-Sep-07

23-Jan-08

20-Aug-07

20 yrs

20 yrs

25 yrs

10

(1) One time in 13 year

535

587

835

Secured Debt o/s Mar 14

335.23

386

534.65

Residual Tenure (Years)

13.93

14.31

18.89

1.31 Mn

1.65 Mn

3.47 Mn

Rs. Crs

Project Details

Ownership

(%)

Concession
Terms

Lanes / Lane kms

Signing Date
Concession Period
Grant / Revenue Share

Financials

Project Cost

Toll Collection (Rs. per day)*

* - Average Per day Toll Collection for FY14

th

st

1 yr : (15.30)
5% increment pa

24

Projects Under Construction

Belgaum Dharwad

Pimpalgaon Nasik
Gonde

Sambalpur Baragarh

Dhankuni- Kharagpur

100%

26%

100%

100%

State

Karnataka

Maharashtra

Orissa

West Bengal

Client

NHAI

NHAI

NHAI

NHAI

6 Lane / 454.050

6 Lane / 451.860

4 Lane / 407.600

6 Lane/ 840.500

29-Jun-10

08-Jul-09

29-Jun-10

20-Jun-11

30 yrs

20 yrs

30 yrs

25 yrs

1 yr : (31) ,
5% increment pa

6.19% of revenue,
1% increment pa

694

1,691

1,142

2,200

458.57

1,261.81

668.69

979.25

~99% completed

~99% completed

~79% completed

~56% completed

04-May-2011

02-Oct-2012

~Q2 FY15

01-Apr-2012

1.62 Mn

1.10 Mn*

Rs. Crores

Project Details

Ownership (%)

Concession
Terms

Lanes / Lane kms

CA Date
Concession Period

st

Grant / Revenue Share

Financials

Project Cost
Secured Debt o/s Mar. 14

Toll
Collection

Status
Toll Collection Start
Toll Collection (Rs. per day)#

# - Average Per day Toll Collection for FY14

* - Toll Collection to increase post completion of the Structure / Project; @ - Estimates

st

1 yr : (1.33) ,
5% increment pa

2.39 Mn

st

1 yr : (126.06)
5% increment pa

5.55 Mn

25

Project Under Implementation

Chennai ORR Project

Special Purpose Vehicle (SPV) GVR-Ashoka Chennai ORR Limited has executed Concession Agreement
with Government of Tamil Nadu, Highways and Minor Ports Department

Ashoka Buildcon Limited & GVR Infra Projects Limited each holds 50% equity share capital of the SPV

The Project is on (DBFOT) Annuity basis

The Project cost is Rs. 1,440 Crores

The project has a grant of Rs. 197 Crores and 35 Semi-annual Annuity of Rs. 119.97 Crores

Concession period is of 20 years incl. construction period of 30 months from the Appointed Date

Achieved Financial Closure for Rs. 1,080 Crores

~12% Construction completed

26

Annexure : Financials Summary

Roopnarayan Bridge opened for traffic

27

Consolidated : FY14 Profit & Loss Highlights

Rs. Mn

FY 14

FY 13

EPC

BOT

Consol

EPC

BOT

Consol

15,021

2,928

17,949

15,662

2,865

18,527

232

14

246

187

28

215

REVENUE

15,252

2,942

18,194

15,848

2,893

18,742

EBITDA

2,274

1,917

4,191

1,933

2,000

3,934

14.9%

65.2%

23.0%

12.2%

69.1%

21.0%

Interest

312

1,023

1,335

354

1,041

1,395

Depreciation

272

1,117

1,389

291

1,033

1,324

157

157

157

157

PBT

1,690

-380

1,310

1,288

-230

1,058

Tax

534

154

688

535

150

685

1,156

-534

622

753

-380

373

PAT Margin

7.6%

-18.2%

3.4%

4.8%

-13.1%

2.0%

Minority Int. Profit / (Loss)

-425

-425

-389

-389

Associates Profit / (Loss)

-72

-72

79

79

PAT after MI & Asso. Profit

1,156

-181

974

753

89

842

Cash Profit *

1,428

583

2,011

1,044

653

1,697

Total Income from Operations

Other Income

EBITDA margin

Exceptional Item *

Profit After Tax

* Includes Write-off of Nagar Karmala Project assets of Rs. 157 mln

28

Consolidated : Balance Sheet Highlights

Rs. Mn
Shareholders Fund
Share capital
Reserves & Surplus
Share Application Money 1
Minority Interest
Non-current liabilities
Long term borrowings
Other non-current liabilities

Current liabilities
Short term borrowings
Other current liabilities
TOTAL EQUITIES & LIABILITIES
Non-current assets
2

Fixed assets
Other Non-current assets
Current assets
Current Investment
Inventories
Trade receivables
Cash and bank balances
Other current assets
TOTAL ASSETS

March-14
12,479
790
11,690
149
4,645
107,947
29,621
78,326
9,962
1,411
8,551
135,183

March-13
10,358
527
9,832
149
2,787
101,151
21,735
79,416
9,942
1,734
8,208
124,387

124,878
119,871
5,007
10,305
896
6,272
1,305
945
888
135,183

115,647
111,100
4,547
8,741
1,158
5,399
862
517
805
124,387

1. Share Application money pertains to subsidiary

2. Includes long term liability (viz. premium payable to NHAI in Belgaum and Dhankuni project) of Rs. 76,246 mn as on March 31, 2014 and Rs. 77,341 mn
as on March 31, 2013

29

Annexure : Toll Collection Highlights

Mandwe Bridge Completed in a record time of 38 days

30

Gross Toll Collection : Highlights

Sr. No.

(Rs. Mn)

Q4 FY14

Q4 FY13

Y-o-Y (%)

Q3 FY14

Q-o-Q (%)

ACL Projects
1

Belgaum Dharwad #

151.3

143.4

5%

146.7

3%

Dhankuni Kharagpur@

523.4

400.0

31%

489.5

7%

Bhandara

130.5

121.3

8%

121.4

8%

Durg

164.1

151.6

8%

151.8

8%

Jaora - Nayagaon

324.5

270.6

20%

325.2

0%

Pimpalgaon Nashik - Gonde

104.7

108.9

-4%

97.9

7%

1,398.6

1,195.9

17%

1,332.5

5%

46.0

39.9

15%

48.0

-4%

Sub-total
ABL Projects
1

Ahmednagar - Aurangabad

Nagar - Karmala ^

--

--

--

--

--

Indore -Edalabad

212.7

179.9

18%

186.4

14%

Wainganga Bridge

64.4

59.7

8%

59.3

9%

Dewas Bypass

47.5

58.1

-18%

47.5

0%

Katni Bypass

42.4

46.7

-9%

39.5

7%

Pune Shirur

65.7

51.7

27%

56.4

16%

Others *

106.4

47.3

125%

62.7

70%

Sub-total

585.0

483.3

21%

499.9

17%

1,983.6

1,679.2

18%

1,832.3

8%

Grand Total

# - Toll Collection from May 2011 till February 2014 adjusted in Capital WIP
@ - Commenced Toll collection w.e.f. April 1, 2012. Toll adjusted in Capital WIP,

^ - Toll collection has stopped w.e.f. 17th November 2012

- Others include Anawali Kasegaon, Kognoli Toll Plaza, Dhule Bye pass,
Nashirabad & Sherinala

31

For further information, please contact:

Company :

Investor Relations Advisors :

Ashoka Buildcon Limited

Mr. Paresh Mehta,
paresh.mehta@ashokabuildcon.com

Strategic Growth Advisors Pvt. Ltd.

Mr. Jigar Kavaiya / Mr. Gaurang Vasani
kjigar@sgapl.net / vgaurang@sgapl.net

www.ashokabuildcon.com

www.sgapl.net

32