C & C Constructions Limitedcandcinfrastructure.com/images/CC Corporate Presentation.pdfPRESENTATION...

C & C Constructions Limited

Corporate Presentation

July 2011

PRESENTATION STRUCTURE

22

JOURNEY SO FAR

Formation of the Company

Promoters

Promoters’ responsibilities

Other Board Members and Independent Directors

Milestones

Financial Highlights

Order Book

Key Projects completed

BOT projects under way

Some weaknesses

WAY FORWARD

Action points

Course correction

Revenue pattern

JOURNEY SO FAR

Formation of the Company

• It was in July, 1996 that 5 people got together with a common vision of becoming

the nation’s foremost infrastructure builder.

• Together their skill sets ranged from expertise in finance to successfully completing

infrastructure projects in the most challenging terrains.

• Four out of these five people are related to each other thereby ensuring continuity

of thought and easy resolution of potential conflict.

• Being hands on professionals, it was easy to take on varied projects in different

geographies without diluting execution strategies.

4

55

Promoters

GURJEET SINGH JOHAR

Chairman

•Chartered Accountant with more than 35 years of professional experience.

•Responsibilities include strategic planning and conceptualization of new project

initiatives including BOT. Also oversees the finance and human resource

functions.

•Industry Associations:

Chairman - Project Export Promotion Council of India.

Working Committee Member – Construction Federation of India.

Core Group Member- Confederation of Indian Industries (Roads and

Highways)

Core Group Member-FICCI Infrastructure Committee

CHARANBIR SINGH SETHI

Managing Director

•Commerce graduate, with more than 30 years of experience in the Infrastructure

Management sector.

•Responsibilities include supervision of construction projects.

•Specializes in projects in difficult/rough terrains.

RAJBIR SINGH

Director

•Economics graduate with over 12 years of experience in the infrastructure sector.

• Responsibilities include quarrying initiatives and logistics.

• Served in the Indian Army for 9 years.

SANJAY GUPTA

Director

•Civil Engineer with more than 28 years experience in the infrastructure sector.

•Responsibilities include implementation of the Afghanistan projects, BOT projects

and the Buildings vertical.

•Member of Builder Association, Delhi.

AMRIT PAL SINGH CHADHA

Director

•Post Graduate in Commerce with over 23 years of experience in the

infrastructure sector.

•Responsibilities include execution of projects in Bihar.

•Executive Committee Member of National Highways Builders Federation.

66

Promoters’ - responsibilities

77

Other Board members and Independent Directors

RAJENDRA MOHAN AGGARWAL

Non-promoter Executive Director

•Civil Engineer with more than 40 years experience in infrastructure sector.

•Responsibilities include tendering and technical support .

•Has worked with various large public and private sector organizations in

infrastructure development roles, including a project with the Government

of Libya.

Deepak Dasgupta

Independent Director

•Former Chairman of National Highways Authority of India, and a Member of

Task Force on interlinking rivers.

•Also has worked as Advisor to Asian Development Bank (ADB).

Anand Bordia


•40 years experience in policy formulations, program implementation and

organizational development

•Previously worked as Collector of Customs, First Secretary, Indian Trade

High Commission London and Member (Finance) NHAI.

•Also worked with World Customs Organization and UNDCP

Ramesh Chandra Rekhi


•43 years experience in aviation, engineering and construction

•Previously also has worked as Chief Engineer - International Airports

Authority of India; Director - Airports Delhi, Chief Engineer – New Delhi

Municipal Council; Head (Aviations division) - EMA Unihorn.

•Currently working as Senior Consultant with Delhi International Airport

Limited.

88

Other Board members and Independent Directors

TARLOCHAN SINGH


•Member of Rajya Sabha.

•Ex-Chairman Minorities Commission.

•Member of various Parliamentary Committees.

ARUN KUMAR PURWAR

Nominee Director

•Chairman of IndiaVenture Advisors Pvt. Ltd.

•Former Chairman of State Bank of India and Indian Bank Association.

•Received “CEO of the year” Award from the Institute for Technology &

Management (2004); “Outstanding Achiever of the year” Award from

Indian Banks’ Association (2004); “Finance Man of the Year” Award by

the Bombay Management Association (2006).

KANWAL MONGA


• Renowned industrialist.

•Has been instrumental in introducing fibre optic cables into India and

CNG into Delhi.

J. GANGULY


• An Engineer by qualification, having vast experience of 40 year in the

field of construction in India and abroad.

• Former Executive Vice President Larsen & Toubro Ltd..

GEN. N. C. VIJ


• Former Chief of the Army Staff.

• Former Vice Chairman of the National Disaster Management Authority

(NDMA) with the Status of a Union Cabinet Minister.

• Has been awarded Param Vishist Seva Medal, Uttam Yudh Seva medal

and Ati Vishist Seva Medal for his outstanding and distinguished

services in Army.

Milestones

99

2000

2009

2001

2008

2007

2006

2005

2003

First National Highway Project –Durgapur Rs 5.67cr.

First Overseas Road Project in Afghanistan- Rs 107 cr.

Awarded 3 Large Contracts in Bihar-Rs 1042 cr.

First Urban Transport Project in Delhi (BRT)-Rs 129 cr.

• First BOT Project on National Highway-Rs 408 cr.

• Pubic Issue-Rs 154 cr.

First Railway Freight Corridor Project-Rs 781 cr.

Entry into Commercial Buildings and Transmission-Rs 432 cr & Rs 18 cr respectively

First JV Executed with BSCPL

Consistent Growth in Portfolio, Reach, Pre-qualification Capacity & Delivery Capabilities

2010

•MOU with Isolux

•QIP- Rs 77 cr, Private Placement-Rs 50 cr, Promoters infusion -Rs 50 cr.

1997

1996

First airport project awarded -Kerala -Rs 6.88 cr.

Company incorporated by professionals and bagged first road project in Punjab- Rs 28 lac

Financial Highlights- Five Years (Rs Cr)

10

2005-06 2006-07 2007-08 2008-09 2009-10

Turnover 211.73 330.42 533.26 750.13 1168.45

Earning Before Depreciation, Interest & Taxes 56.25 66.26 83.54 123.91 218.54

Depreciation 14.88 16.02 15.47 24.94 44.78

Finance Charges 3.23 14.28 23.50 47.41 72.94

Profit after Tax 30.90 33.17 40.91 41.10 69.09

Equity Dividend % 33.3% 25.0% 27.5% 27.5% 27.5%

Dividend 4.26 4.56 5.02 5.02 6.43

Equity Share Capital 12.78 18.26 18.26 18.26 23.39

Reserves and Surplus 92.78 253.34 290.70 330.97 504.17

Net Worth 105.57 271.60 308.96 349.23 527.56

Gross Fixed Assets 100.76 144.69 252.63 399.98 498.32

Net Fixed Assets 88.39 155.46 222.72 326.06 383.37

Total Assets 288.79 600.76 855.54 1457.54 1861.01

Financial Highlights- Five Years Key Indicators

11

2005-06 2006-07 2007-08 2008-09 2009-10

Earning per Share 24.18 22.05 22.40 22.51 35.67

Book Value per Share 82.60 148.74 169.20 191.26 225.56

Debt equity Ratio 0.55 0.51 0.88 1.74 1.34

EBITDA Margin % 26.57% 20.05% 15.67% 16.52% 18.70%

Net profit Margin % 14.60% 10.04% 7.67% 5.48% 5.91%

ROACE % 30.02% 17.53% 13.77% 12.87% 15.83%

ROAE % 33.39% 17.59% 14.09% 12.49% 15.76%

Order Book as on 31st July 2011(Rs Cr)

12

VerticalsC&C

IndependentBSC C&C JV

ISOLUX C&C JV

C&C SE JVTotal

(31.07.2011)Total

(31.07.2010)

Roads & Highways 331.83 1,711.53 584.00 - 2,627.36 1,577.24

Urban Infra 777.92 176.86 - - 954.78 703.68

Railway - 342.36 - - 342.36 378.01

Transmission 34.05 102.30 1,138.46 - 1,274.81 15.37

Water & Sewerage - - - 104.14 104.14 178.28

Total 1,143.80 2,333.05 1,722.46 104.14 5,303.46 2,852.58

1313

Key projects completed

PROJECT NAME CHALLENGES/ HIGHLIGHTS CONTRACT VALUE (RS CR)

CONTRACT VALUE (C&C

SHARE)

CLIENT DATE OF COMPLETION

Development of State Highways under RSVY scheme. Pkg. No.17: Nawada& Jamui Dist

The project involved meticulous planning due to logistically difficult terrains and inclement operating conditions.

61 31 Central Public Works Department

Mar, 2010

Improvement / upgradationfor existing road of States Highway into 2 lanes road in Madhubani

The project was completed under various challenges like adverse flood conditions, logistically difficult terrains and inclement operating conditions.

72 36 Ircon International Limited

May, 2010

Rehabilitation of Kapurthala -Taran Taran Road

The project comprised of a 47.20 kmsroad stretch from Kapurthala to Tarn Taran in the state of Punjab.

55 55 Public works Department, Punjab

Dec, 2009

Construction works related to widening / Upgrading of Roads to convert the existing carriageway to multilane facility for the High Capacity Bus System

The execution of such projects in Delhi was of a specialized nature since construction activity was not possible during the day due to heavy traffic and can only be done during the night with requisite steel barricading.

129 65 RITES Limited Nov, 2009

Upgradation of Tarn Taran -Chabbal - Attari Road

The project comprised of a 40.50 kmsroad stretch from Tarn Taran to Attari in the state of Punjab.

45 45 Public works Department, Punjab

Aug, 2009

1414



CONTRACT VALUE (C&C

SHARE)


Build, Design and Rehabilitation of Taluqan to Kishem Road, Afghanistan

The construction projects in Afghanistan required mobilization of machinery and technical work force from India and materials from Pakistan and India. We dealt with continuous security threar due to terrorists activities and logistics issues due to excessive snowfall and rain.

90 45 Ministry of Public Works, Afghanistan

May, 2008

Reconstruction of Jalalabad-Asmer Road, Afghanistan( From Km 0 to 121.5)

The scope of the project comprised reconstruction of the project road including construction of culverts, causeways and other drainage works.


Apr, 2007

Kandahar To Herat highway Improvement project, Afghanistan (Km 456 to 557)

This project involved construction of a stretch on the Kandahar-Herat road to the city of Herat along the Iranian border in Eastern Afghanistan.

241 121 Louis Berger Group, Inc

Oct, 2006

Design build and Rehabilitation of Lashkar Gah Ring Road, Afghanistan from Km 00 to 43+00

The scope of the work included construction of culverts, cause ways and other drainage works and falls in southern Afghanistan.

59 30 UNOPS July, 2006

Design & Build Contract for Rehabilitation of Kandahar-Spin Boldak highway, Afghanistanh (Funded by ADB)

This project was also in a sensitive area of Afghanistan and involved connecting the major Afghanistan city of Kandahar to the border of Pakistan. There were numerous operating challenges in spite of which, the project was completed in November 2005.


Nov, 2005

1515



CONTRACT VALUE (C&C

SHARE)


Construction of Kandahar -Trin Kot Road Project, Afghanistan

The project was strategically important for alliance forces working in Afghanistan and was exposed to security threats.

98 49 UNOPS Oct, 2005

Design & Build Contract for Rehabilitation of 85 Km. stretch from km 262 to km 347 of Kabul- Kandahar highway, Afghanistan

Since this was a pioneer project of USAID and the first in Afghanistan, we were exposed, to a difficult working environment and security threats. Despite this, we completed this project within a short span of seven months.

207 103 Louis Berger Group, Inc

June, 2005

Four Laning of Km 146.00 to Km 156.00, Guwahati Bypass, NH-37

The Bypass was constructed around the city of Guwahati and was situated in a security sensitive area.

61 18 National Highways Authority of India

June, 2004

Resurfacing of existing runway, Taxi track and Extension & Construction of runway, Taxi tract & Apron, Amritsar

The project involved both flexible and rigid pavement construction. The project was completed under strict restraints of operational and strategic defence issues.

21 11 Airport Authority of India

Nov, 2003

Extension of runway by 5000 ft, Port Blair Airport

There were logistics and scheduling challenges since all major materials, viz. Bitumen, Cement and Steel, etc. had to be transported from the main land at a distance of more than 1,200 kms.

41 21 Airport Authority of India/ BSCPL

Jan, 2002

Projects under way

Project Client JV/DirectContract Value (C&C

share- Rs. cr)

Expected completion

by

Roads

2 Laning of Nongstoin to Shillong Section of NH-44 and Nongstoin-

Rongjeng- Tura road in the state of Meghalaya under phase 'A' of SARDP-

NE

Public Works Department,

MeghalayaJV 652 May-14

Six laning of Varanasi - Aurangabad Section of NH 2 in the State of Bihar Isolux Corsan, India JV 584 Mar-14

Four laning of Meerut - Bullandshahar Section of NH-235 in the State of

Uttar Pradesh under NHDP Phase IV-B

National Highway Authority of

IndiaDirect 506 Mar-14

Construction and maintenance of Zirakpur –Parwanoo Section of NH-22

from km 39.860 to km 67.00 including construction of Pinjore- Kalka –

Parwanoo Bypass

Jaiprakash Associates Ltd. Direct 499 Aug-11

Four laning of Patna-Bakhtiarpur section of NH-30 from km 181.300 to km

231.950 in the state of Bihar

Patna Bakhtiarpur Tollways

LimitedJV 385 Jan-14

Construction of rigid pavement and granular layers for package C-

1(Km.0.500 to km 56.00) & C-2 (Km.56.000 to km110.00) for Yamuna

Expressway (erstwhile Taj Expressway)

Jaiprakash Associates Ltd. Direct 324 Aug-11

Two laning of Muzaffarpur sonbarsa section of NH-77 from km 2.800 to km

89.000 in the state of BiharNorth Bihar Highway Limited JV 280 Aug-13

Widening and strengthening to 4 lane of existing single/intermediate lane

carriageway of National Highway No.57 section from km 155.00 (Kosi

Western Ring Bund) to km 110.00 (Jhanjharpur) in the states of Bihar on

East West Corridor under NHDP-Phase-II, Package No. C-II/BR-6.


IndiaJV 227 Sep-11

Improvement / upgradation of Jahanabad –Ghosi-Hajipur-Lalgunj-Vaisali-

Manikpur –Paru-Baradaud Deoria-Sahebganj-Lalchhapra- Kesharia –

Khajuria Areraj Road (SH-74) length 85.00 km

Public Works Department, Bihar Direct 225 Aug-11

Widening and strengthening to 4 lane of existing single/intermediate lane

carriageway of National Highway No.57section from km 69.80 to km 37.75

in the states of Bihar on East West Corridor under NHDP-Phase-II, Package

No. C-II/BR-8


IndiaJV 217 Sep-11

Widening and strengthening to 4 lane of existing single/intermediate

lane carriageway of National Highway No.57 section from km 37.75 to

km 0.00 in the states of Bihar on East West Corridor under NHDP-Phase-

II, Package No. C-II/BR-9


IndiaJV 200 Sep-11

Gardez-khost Road Construction Project ,Paktia Khost LBG B&V JV JV 198 Mar-12

Two laning with paved shoulders of Mokama Munger section of NH-80

from km 1.430 to km 70.00 in the state of Bihar under NHDP III

Mokama Munger Highway

LimitedJV 195 Jan-13

Widening & strengthening of existing 2 lane section of Kurali-Kiratpur

section of NH-21 from Km. 28.600 to Km 73.200 to 4 lane divided

carriageway in the state of Punjab

BSC C and C Kurali Toll Road

LimitedJV 184 Sep-11

Improvement / upgradation of Jahanabad –Ghosi-Islampur-Rajgir-

Giriyak-Parwatipur Road (SH-71) length 85.00 kmPublic Works Department, Bihar Direct 168 Aug-11

Improvement / upgradation of Araria – Ranigunj-Jadia -Trivenijung-

Piapara-Supaul–Bishunpur-Bhaptiyahi Road (SH-76) length 121.00 kmPublic Works Department, Bihar JV 162 Dec-11

Improvement / upgradation of Kursela –Pothia-Falka –Meerganj-Sarsi-

Kalabalu-Ranigunj-Shaifgunj-Forbesgunj Road (SH-77) length 105.00 kmPublic Works Department, Bihar JV 139 Dec-11

Upgradation of Kharar- Landran-Banur-Tepla Road From KM 0 to KM

39.53


PunjabDirect 109 Sep-11

Widening and strengthening of Una – Barsar – Bhota – Bhamla –

Kalkhar – Ner Chowk Road Project From KM 45+000 to KM 90+800

(Section Barsar – Bhota – Jahu


Himachal PradeshDirect 95 Mar-12

Widening and strengthening of Una – Barsar – Bhota – Bhamla – Kalkhar

– Ner Chowk Road Project From KM 0+000 to KM 45+000 (Section Una

– Bangana – Barsar)


Himachal PradeshDirect 90 Oct-11


share- Rs. cr)

Expected completion

by

Roads

Projects under way

Projects under way


share- Rs. cr)

Expected completion

by

UNRBAN INFRA

Development & Modernization Of Computerized Interstate

Checkposts On DBOT Basis

Punjab Infrastructure

Development BoardsDirect 413 Mar-12

Development of bus terminal cum commercial complex at Mohali on

BOT BasisC&C Towers Limited Direct 317 Oct-12

Construction of Afghan Parliament and Indian Chancery building at

Kabul, Afghanistan

Central Public Works

DepartmentJV 292 Jun-13

Construction of conventional underground multilevel car parking at

various Sites in DelhiMuniciapl Corporation of Delhi Direct 119 Sep-11

Construction of conventional underground multilevel car parking at

various Sites in DelhiMuniciapl Corporation of Delhi Direct 52 Oct-11

Building - Mudit Mudit Cements Direct 42 Sep-11

Projects under way


share- Rs. cr)

Expected completion

by

Water & Sewerage

Providing Sewerage System at Ludhiana under JNNURM Punjab Water Supply &

Sewerage BoardJV 77 Oct-12

Providing, laying, jointing, testing and commissioning sewers lines in

Jabalpur, Package WW/2 and WW/3Ramky Infrastructure JV 40 Dec-12

Extension and augmentation of sewerage system for Patiala town,

Zone II Part II

Punjab Water Supply &

Sewerage BoardJV 22 Mar-11

Railways

Design and construction of major / minor bridges RUB, ROB, ballast

for Dedicated Freight Corridor on Mughal Sarai- Sone Nagar section of

Eastern Corridor in the state of Bihar & Uttar Pradesh

Dedicated Freight Corridor

Corporation of India LimitedJV 391 Dec-13

Transmission

765 kV S/C Mainpuri-Bara Line with 765 kV/400 kV AIS at

Mainpuri and Associated Schemes/WorksIsolux Corsan, India JV 1118 Mar-14

Pile Foundation Package-P2 for (31 Locs.) 400kV D/C (Quad)

Balipara- Bongaigaon T/L associated with North East- Northern/

Western Interconnector - I Project

Power Grid Corporation of

India LimitedJV 45 Jan-13

Ex-Works Supply and Services Contract for Tower Package A4

under Vendor development programme for transmission system

associated with Pallatana GBPP Bongaigaon TPS in North Eastern

Region


India LimitedDirect 34 Feb-13

Pile Foundation Package-P1 for fifteen river crossings (31 Locs.)

for Biswanath Chariyali- Tangla- Kokrajhar- Barbasia(Assam

Border) section of ± 800 kV HVDC Bipole Biswanath Chariyali -

Agra Transmission Line associated with North East - Northern /

Western Interconnector - I Project



Pile Foundation Package-P1 for (18 Locs.) 400kV D/C (Lapwing)

Lower Subansiri- Biswanath Chariyali T/L - I & II and 400 kV D/C

(Twin) Balipara- Biswanath Chariyali T/L associated with North

East- Northern/ Western Interconnector - I Project



400 KV DC Aligarh Sikandarabad Transmission Line and LILO of

400 KV SC Panki Muradnagar Line at Aligarh SubstationIsolux-Man JV JV 24 Feb-12

Turnkey tower package for transmission line at Shujalpur Power Grid Corporation of

India LimitedDirect 19 Apr-11


share- Rs. cr)

Expected completion

by

Projects under way

2121

BOT projects under way

ProjectsConcession

period Project Cost

Grant/ Annuity etc.

Total EquityIndependent/

JV

Investment by C&C till

30.06.2011

Financial Closure Status

Current Status

4-laning of 44 km of NH-21 from Kurali to Kiratpur

20 years 408 CrsNHAI Grant of Rs 43.92 Crs

104 Crs

49:51 JV with BCSPL

Infrastructure Limited

51 Crs Achieved

Commencement of Date by August 2011. It was delayed

due to land acquisition problems.

Development of Inter State Bus Terminus (ISBT) along

with commercial complex at Mohali

ISBT - 20 years, Commercial complex - 90

years

432 Crs

14 lacs square feet BUA including basement

125 Crs Independent 94 Crs AchievedEntered MOU with

Cinepolis, Big Bazar & Hyatt.

2-laning of 69 km of NH-80 from Mokama to Munger

15 years 444 CrsSemi Annuity

of Rs 39.94 Crs89 Crs

50:50 JV with BCSPL


14 Crs AchievedAppointed date yet to be

received

2-laning of 82 km of NH-77 from Muzaffarpur to Sonbarsa

20 years 656 CrsSemi Annuity

of Rs 52.40 Crs131 Crs

50:50 JV with BCSPL


58 Crs AchievedAppointed date yet to be

received

4-laning of 51 km of NH-30 from Patna to Bakhtiarpur

18 years 908 CrsNHAI Grant of Rs 113.40 Crs

114 Crs

50:50 JV with BCSPL


Nil in Progress N.A.

1,500 Kms. of 765 kV and 400 kV Transmission Lines and 5

substations35 years 4951 Crs

Levelised Tariff of Rs 870 Crs

1282 Crs74:26 JV with Isolux Corsan

Nil in Progress N.A.

Development and Modernization of

Computerized Interstate Check Posts

20.5 years 456 CrsAnnual

Premium of Rs 81 Crs

251 Crs Independent Nil in Progress N.A.

Some weaknesses

• Major revenue from the road vertical

- resulting in high working capital requirement.

- high debt levels to fund working capital

- large interest pay-outs diluting EBIDTA margins

• Substantial investment in fixed assets not yielding corresponding revenue multiples.

• Perceived pressure on balance sheet due to committed BOT investments.

22

WAY FORWARD

Action points

• Growing the newer verticals of Commercial buildings, Power transmission, Water & sewerage and Piling.

• Continuously increasing bid eligibility in different verticals by forging strategic partnerships.

• Investing in Information Technology infrastructure enabling the Company to make informed and timely decisions on procurement, bid processes, financial matters etc.

• Mentoring a strong chain of sub-contractors capable of delivering works in line with Company’s standards.

• Developing a strong management cadre after the Promoters to take care of future challenges.

24

Course correction

• Increased share in the revenues of the Company from verticals other than roads.

• To reduce working capital cycle and requirement of incremental debt by altering the order book mix in favour of verticals other than roads.

• To reduce interest pay-outs resulting in a positive impact on PAT.

• Reducing incremental investment in fixed assets through

- appointment of sub-contractors who will invest in their own assets.- increasing exposure to verticals such as Commercial buildings, Power

transmission, Water & sewerage and Piling requiring lesser fixed assets.

• Raising adequate capital in the holding Company for making investment in BOT projects.

• Issuing of commercial papers and other instruments at low interest rates through improved credit rating.

• Issuing long term bonds to strengthen the debt structure of the Company.

25

Pictures from completed projects

26


27


28

Thank You

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