Presentation Finalv1

8/4/2019 Presentation Finalv1

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Group X

Ashish, Sushant, Omkar,

Ketan, Gajanan, Sadanand,Darshika & Paramveer



Industry Selection

• Industry – Infrastructure

• Companies

– IVRCL – HCC

• Period Covered – 3 financial years –

March, 07, March 07 & March 09



Index

• Economic Analysis

• Industry Analysis

• Company Overivew• P&L Comparison

• Balance Sheet Comparison

• Cash Flow Comparison• Conculsion



Industry Analysis

Key Sectors :

• Power

•Railways• Roadways

• Airport

• Water Irrigation• Port development



Establish as a EPC & LSPK service provider with engineering capabilities in1990Commercial operation since 1990Achieved group turnover of USD 1Billion with 2 years of operation

Public sector client:•ONGC, BHEL , NTPC , BPCL, IOCLPvt sector client :•DLF Akruti info parks (Pune) Ltd, Tata Projects Ltd, Jindal steel and PowerLtdCentral & State Govt Client

• Gujarat water supply and sewerage Board, Delhi Jal Board• Kerala water authority, Airport authority of India

Overview of IVRCL



Overview of HCC

• Established in the year 1930

• First company in India certified in ISO 9001, ISO14001 and OHSAS 18001

Specialized in• Large scale civil construction

• Hydro Business

• Water Solutions

• Transportation Business• Nuclear Power and Special Projects



respect to Infrastructure

Industry

• Growth of 12% annually for last 5 years

• Contribution of 3.8 trillion to Indian GDP

• Infrastructure project are increasing withnew technology involved

• Global crisis has reduced GDP growth for Y

2008-09



Economic Analysis

India’s economic growth and momentum drives infrastructure

investmentDue to change in FDI policy development increased

SEGMENTATION of sectorsRoads :2% national highway out of 3.3milllionRailways :Plan to expand network 65300kmPorts and Harbors :

Major opportunity to E & C companiesPower :Investment of &167billion to self sufficient in power sector



IVRCL – P&L analysis for 3years

Particulars 08-09 07-08 06-07

Revenues 4911.01 3664.67 2313.26

Construction Exp (4177.21) (3096.51) (1949.73)

Other Exp. (282.89) (202.52) (124.37)

Operating Profit

(EBITD)

450.91 365.64 239.16

Op. Profit % 9.18% 9.98% 10.34%

Interest (130.61) (47.82) (32.49)

Depreciation (47.3) (32.81) (21.59)

PBT 273.00 285.01 185.08

Tax (47.08) (74.85) (43.62)

Net Profit 225.92 210.16 141.46

Fig. in Crs.



HCC – P&L analysis for 3Financial years

Particulars 08-09 07-08 06-07

Revenues 3372.59 3120.75 2401.88

Construction Exp (2390.14) (2304.93) (1837.03)

Other Exp. (492.18) (411.22) (305.33)

Operating Profit(EBITD)

490.27 404.60 259.52

Op. Profit % 14.54% 12.96% 10.80%

Interest (210.52) (152.41) (61.97)

Depreciation (115.22) (96.19) (79.66)

PBT 164.53 156.00 117.89

Tax (39.20) (47.23) (38.61)

Net Profit 125.33 108.77 79.28

Fig. in Crs.



IVRCL – Balance Sheet analysisfor 3 years

Particulars Mar, 09 Mar, 08 Mar,07

Sources of Funds

Equity Share Capital 26.70 26.70 25.93

Share Warrants - 0.42 -

Reserves 1783.88 1578.86 1295.79

Total Debt 1398.02 1067.85 556.11

Deferred Tax 11.74 10.31 5.59

Total Liabilities 3220.34 2684.14 1883.42

Application of funds

Net Block 520.70 319.20 192.91

Capital Work in Prog. 19.55 54.09 50.59

Investments 389.20 340.91 282.89

Current Assets, Loans& Advances

3813.53 2882.69 2283.43

Current Liab. & Prov. (1522.64) (912.75) (926.40)

Fig. in Crs.



HCC – Balance Sheet analysisfor 3 years Particulars Mar, 09 Mar, 08 Mar,07

Sources of Funds

Equity Share Capital 25.63 25.63 25.63

Share Warrants 15.19 15.19 -

Reserves 964.03 963.24 878.45

Total Debt 2321.8 1844.86 1551.06

Deferred Tax 113.17 113.29 85.54

Total Liabilities 3439.82 2962.21 2540.68

Application of funds

Net Block 1128.18 953.10 746.16

Capital Work in Prog. 46.44 67.50 151.27

Investments 365.50 295.54 228.64

Current Assets,Loans & Advances

3467.38 2710.05 2306.22

Current Liab. & Prov. (1567.68) (1063.98) (891.61)

Net Current Assets 1899.70 1646.07 1414.61

Fig. in Crs.



IVRCL – CashFlow analysis

for 3 years


Net PBT 273.77 285.33 185.09

Adjustments from P&L 162.72 88.59 56.64

Working Cap Changes (287.83) (628.59) (307.57)

Tax Paid (101.83) (122.85) (60.13)

A. Cash Flow from/(used in) Ops

46.82 (377.52) (125.96)

B. Cash Flow fromInv Activities.

(236.37) (132.32) (426.57)

C. Cash Flow fromFin Activities

113.27 463.37 532.25

Net Increase/(Decrease) inCash[ A+B+C ]

(76.26) (46.65) (20.52)

Opening Balance 177.17 223.82 244.34

Cash equiv at theend of the ear

100.86 177.17 223.82

Fig. in Crs.



HCC – CashFlow for 3years


Net PBT 164.55 156.00 117.89

Adjustments fromP&L

280.92 218.13 125.54

Working Cap Changes (307.11) (158.02) (774.90)

Tax Paid (33.80) (32.92) (38.75)

A. Cash Flow from/(used in) Ops

104.56 183.19 (570.22)

B. Cash Flow usedin Inv Activities.

(308.26) (287.99) (487.26)

C. Cash Flow fromFin Activities

93.22 160.79 259.85

Net Increase/(Decrease) inCash[ A+B+C ]

(110.48) 55.98 (797.63)

Opening Balance 264.35 208.37 1006.00

Cash equiv at theend of the year 153.87 264.35 208.37

Fig. in Crs.



Summary &Conclusion

• Average YoY growth for IVRCLis 46% while HCC is 19%

•IVRCL shows a higher revenuegrowth

• Though operating profit of both the companies remains at

the same level in Rupee value,HCC has steadily increased theoperating margin %

• Increased cost of Debt of HCC has impacted net profit

• HCC has most of the projectdelayed

Sales Trend



Ratio’s IVRCL HCC

Debt Equity Ratio

ROE

Current Ratio

Key Ratio’s

IVRCL IS A STRONGER COMPANY THAN HCC

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Presentation Finalv1