GOCL Crpratin Limited 56 th Annual General Meeting 29 th August 2017
GOCL Crpratin Limited 56 th Annual General Meeting 29 th August 2017 Welcme t Sharehlders
Rs. in Crres Market Capitalisatin Market Cap : ( as n 22 nd Aug 2017 ) Rs. 2584 crres @ Rs. 521.30 Market Capitalisatin +70% 2584 1516 Market Cap : ( as n 22 nd Sep 2016 ) Rs. 1516 crres @ Rs. 305.90 2016 2017
ICRA Rating ICRA has reaffirmed the ratings f yur Cmpany as : Lng term Rating [ICRA] BBB Shrt term Rating [ICRA] A3 +
Overview f the Perfrmance Year 2016-17
Highest Turnver Since Inceptin Energetics & Explsives Rs. in Crres Highest Turnver since inceptin n a cnslidated basis fr the Energetics & Explsives Businesses (Current Cre Business). Segment Turnver Prfit 451 359 25 24 40 484 Segment Prfit f current cre Business was at a new high. 2015 2016 2017 Figures are runded ff fr presentatin purpse
Business Operatins - Standalne Ttal Revenue 2015-16 2016-17 19 cr 18% 15 cr 14% 6 cr 6% 2 cr 2% 74 cr 68% 97 cr 92% Rs 108 crres Rs 105 crres Energetics Mining & Infra Realty
Business Operatins Standalne ( Cntd ) Marginal Dip in Turnver f last 2 years cmpared t F2015. 116 Turnver 108 Rs. in Crres 105 Price falling by 40% in tender driven market since 2015. EBIDTA and prfitability maintained due t Prcess innvatins & upgrades in the Energetics Divisin and aggressive marketing strategies 2015 2016 2017
Financials- Standalne When yu share yur presentatin with thers, yu ll see them wrking with yu at the same time. 116 Hw it wrks: 108 105 45 42 Rs. in Crres 29 28 26 25 2015 2016 2017 2015 2016 2017 2015 2016 2017 T urnver E BIDTA P rfit Befre Tax Figures are runded ff fr presentatin purpse
Financials - Standalne ( Cntd ) When yu share yur presentatin with thers, yu ll see them wrking with yu at the same time. PAT Hw it wrks: PAT % t Sales EPS (Rs.) Rs. in Crres 19 18.32 3.90 18 16.27 3.55 2016 2017 2016 2017 2016 2017 P rfit After Tax P rfit After Tax as % t Sales E PS Figures are runded ff fr presentatin purpse
Brrwings Lng Term 46 319 Shrt Term Rs. in Lakhs 19 2016 2017 2016 2017 0 L ng Term S hrt Term Figures are runded ff fr presentatin purpse
Financials- Cnslidated When yu share yur presentatin with thers, yu ll see them wrking with yu at the same time. 431 Hw it wrks: Turnver 537 554 120 EBIDTA 108 116 42 PAT 27 Rs. in Crres 33 2015 2016 2017 2015 2016 2017 2015 2016 2017 T urnver E BIDTA P rfit After Tax Figures are runded ff fr presentatin purpse
Prductin Output When yu share yur presentatin with thers, yu ll see them wrking with yu at the same time. Millin Ns Millin Mtrs Lakh Metric Tnnes Hw it wrks: Detnatrs Dcrds 71 16 12 62 1.2 Explsives 1.32 2016 2017 2016 2017 2016 2017 D etnatrs D Crds E xplsives Figures are runded ff fr presentatin purpse
Divisinwise Perfrmances
Energetics Divisin
Energetics Grss Turnver : Rs. 97 crres Increase f 30% Vlume Increase : ( Cmpare t F 2016 ) Dmestic Exprts Detnatrs 14% 37% Det. Fuse 49% 46% Vlume Prductin Increase Vlume Turnver Increase ( Exprts 49% Rs. in Crres ) 46% 33% ( Dmestic ) 97 37% 74 14% 14% 2016 2017 Detnatrs Detnatrs Det. Fuse Det. Fuse
Energetics ( Cntd ) Several Prjects fr upgradatin and mdificatin f prcesses and equipment fr enhancing prductin & safety were cmpleted. Actins were taken t reduce prductin csts and imprve efficiencies. Pilt Plant fr manufacture f HMX fr captive cnsumptin was als cmpleted. HMX Plant
Energetics ( Cntd ) Special Prducts Grup Defense & Space Sectrs Successfully met the demands f : - Pyr Cartridges fr Milan, Knkur Invaar and Akaash Missiles - Squibs & Igniters - Explsives Trains - Bster pellets A majr DRDO prject fr a Missile was als cmpleted as per requirement.
Exprts Exprts increased by 50%. Margins were maintained with help f: - Imprved prduct design - Increased vlume f value added prducts - Effective lgistics planning Exprts 16.43 24.75 Rs. in Crres Expanded t new markets in Suth America. Re-cuping business in Eurpe. 2016 2017 Figures are runded ff fr presentatin purpse
Mining & Infrastructure Divisin
Mining & Infrastructure Turnver f Rs. 6.57 crres. Tunver Operatins f the Divisin were curtailed due t : 19 Rs. in Crres - Mining apprval nt received due t cases pending under the MMRDA act. Old equipment which were idle r had becme inefficient were dispsed. Cnstructin activity cntinued. 6 2016 2017 Figures are runded ff fr presentatin purpse
IDL Explsives Limited Whlly Owned Subsidiary
Whlly Owned Subsidiary IDL Explsives Limited When yu share yur presentatin with thers, yu ll see them wrking with yu at the same time. Hw it wrks: Turnver 450 469 337 EBIDTA 37 Rs. in Crres PAT 16 Prductin Lakh Metric Tnnes 1.32 19 22 7 7 1.2 2015 2016 2017 2015 2016 2017 2015 2016 2017 2016 2017 T urnver E BIDTA P rfit After Tax C artridge & Bulk Explsives Figures are runded ff fr presentatin purpse
Whlly Owned Subsidiary IDL Explsives Limited ( Cntd ) This imprved perfrmance was due t innvatin and expansin f the plants. A new cntinuus slurry plant was installed at Rurkela Factry. New Bulk emulsin supprt plants were cmmissined at Damgria, West Bengal and Raigarh, Chhattisgarh t meet the grwing demand. The Imprved capacity utilizatin helped in better margins.
Outlk fr the Year 2017-18
Outlk fr the year 2017-18 India s GDP grwth is expected t be arund 7.4% fr the fiscal year 2017-18. Ecnmic grwth will drive energy demand, especially cal. The Gvernment increased fcus n the infrastructure sectr will enhance the cnsumptin f cement, steel, aluminum, cpper and ther metals. The Make in India plicy f GI in the Defence sectr will bring several activities f the Cmpany int higher revenue levels.
Outlk fr the year 2017-18 ( Cntd ) Energetics & Explsives The grwth f GDP will drive the demand fr Pwer, Steel, Cement and majr Minerals which in turn sustains the demand fr Explsives & Accessries. Als significant increase in demand is expected frm infrastructure, transprt, husing and irrigatin segments. The grwth in demand in these areas ver the medium and lng term augurs well fr the Cmpany t deliver enhanced value t stakehlders.
Outlk fr the year 2017-18 ( Cntd ) Energetics & Explsives The Divisin and its subsidiary will undertake mre prjects fr enhancing quality, prductivity, alng with safety and efficiency t deliver superir value thrugh imprved and new prducts and services. Special Prducts Grup has received key technlgy transfers (TOTs) frm DRDO and ther strategic partners, t explit the emerging pprtunities under Make in India initiative. The Cmpany will cntinue its expansin plans fr exprts int new territries in Africa and Suth East Asia.
Outlk fr the year 2017-18 ( Cntd ) Mining & Infrastructure Mining business in the metal sectr, is awaiting Supreme Curt rders under the MMRDA Act. Very limited activity is currently being cntinued in mines meant fr captive cnsumptin. The cmmercial mining activities will be taking mre time as several clarificatins are still awaited. Infrastructure wrk is being cntinued n a limited scale.
Realty Divisin
Realty Bengaluru In the Ecplis prject, lcated at Yelahanka, Bengaluru, ut f the ttal built-up area f abut 77.31 lakh sq. ft., the cnstructin by the Develper Cmpany ( HRVL ) was cmpleted t the extent f 14.54 lakh sq. ft. last year.
Realty Bengaluru This year anther 10.06 lakh sq. ft. is added as Blck 2 f the SEZ area is nearing cmpletin.
Realty Bengaluru Blck -2 The facade wrk is underway alng with lw side HVAC wrk, electrical wrks and PHE wrks. Blck 2 will be ready fr fit-uts in Q1 2018. Blck 2 is a pre-certified LEED Gld rated building.
Realty Bengaluru Marketing effrts are in full swing with MNC clients fr the built up areas where Occupatin Certificate received. Blck 3A / 3B Ttal Built up Area Ttal Leaseable Area Share f GOCL 30% Car Parks Ttal Built up Area Ttal N fr Blcks 3A & 3B Share f GOCL 30% 10,46,000 sft 7,64,000 sft 2,29,000 sft 4,08,000 sft 1309 cars 393 cars
Realty Bengaluru The Area details f Blck 2 : Blck 2 Ttal Built up Area Ttal Leaseable Area Share f GOCL 30% 10,06,000 sft 7,06,000 sft 2,11,800 sft Car Parks Ttal Car Parks Share f GOCL 30% 885 cars 266 cars
Realty Bengaluru The Develper Cmpany is clsely wrking with cnsultants and lcal brkers fr built up areas in Blck 3A / 3B as well as fr future develpments as per the apprved Master Plan. The Develpers have received clients sale / lease and Build t Suit requirements frm reputed rganizatins and are wrking twards a psitive cnclusin.
Realty Bengaluru The Real Estate (Regulatin and Develpment) Act 2016, which has recently cme int frce, is expected t create a unifrm regulatry envirnment and bring transparency t the sectr, thereby giving a bst t investments int the sectr which had turned sluggish. The first quarter f calendar year 2017 saw India s grss ffice take-up f space amunting t 9.3 millin sft. Bengaluru maintained its tp psitin in cmparisn t 9 cities with 37% share f ttal absrptin area. Our develpment being lcated in the Nrth Bengaluru blck twards the new airprt shuld receive gd demand in 2017 18, since the realty blcks at Bengaluru such as Outer Ring Rad, Suburban Business District, Central Business District, Whitefield and Bannerghatta Rad are expected t reach saturatin.
Realty Hyderabad Hyderabad cmmercial market clcked 0.51 millin sq. ft. f ttal ffice leasing vlume in Q1 2017. IT / ITeS segment cntributed t 61% f the ttal share fllwed by healthcare (20%), business centers (15%) and thers (4%). With the MNCs signing large ffice spaces in the last few mnths The city saw the secnd-largest ffice space absrptin after Bengaluru.
Realty Hyderabad Owing t its prximity t the IT hub in Hyderabad, the Cmpany s Prject at Kukatpally will be an Integrated Mixed-use Twnship cmprising f residential apartments, IT / ITeS ffice space, retail, healthcare, educatinal facilities, leisure and hspitality facilities. An Integrated new Master Plan fr full 100-acre develpment has been rewrked t suit the present market cnditins. A mre detailed revised plan has been submitted fr apprval.
Hyderabad Master Plan
Strategic Investments As reprted earlier the Cmpany thrugh its UK based subsidiary HGHL Hldings Limited, UK (HGHL) hlds 10% stake in Hughtn Internatinal Inc., USA a subsidiary f the Hinduja Grup s Gulf Oil Internatinal. Hughtn Internatinal, has in the mnth f April 2017 entered int a definitive agreement t cmbine with Quaker Chemical Crpratin ( listed n the NYSE : KWR ) t create a glbal leader in the space f prcess fluids, chemical specialties, and technical expertise t the glbal primary metals and metal wrking industries. The Hinduja cnglmerate will be the largest sharehlder in the cmbined public cmpany. Yur Cmpany will be entitled t apprx. 2% in the cmbined entity.
In Cnclusin The ecnmy is accelerating with the refrms and attentin f the Gvernment t laggard sectrs. Mining and Real Estate activities are expected t pick up mmentum.
Thank yu Safe Harbur Statement This dcument may include predictins, estimates r ther infrmatin that might be cnsidered frward-lking. While these frward-lking statements represent current judgment n what the future hlds, they are subject t risks and uncertainties that culd cause actual results t differ materially. GOCL disclaims any bligatin t update / revise r publicly release any revisin t these frward-lking statements in light f new infrmatin r future events. This material was used by GOCL Crpratin Limited during an ral presentatin; it is nt a cmplete recrd f the discussin. N part f this presentatin is t be circulated, quted, r reprduced fr any distributin withut prir written apprval frm GOCL Crpratin Limited.