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INVESTOR PRESENTATION FOR

RKEC PROJECTS LIMITED

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Content Page No

Executive Summary 3

Business Overview 5

Major Business Segment & Projects Carried By The Company 6

Business Strategy 8

Competitive Strengths 9

SWOT Analysis 10

Strong Management 11

Industry Outlook 12

Competitors Analysis 13

Revenue Statement 14

Balance Sheet 15

Financial Ratios 16

Projects On Hand 17

Strong Growth In Revenue 18

Strong Growth In PAT 19

Financial Summary 20

Investment Rationale 21

Reach Us 23

Executive Summary 3

Company

Overview

• RKEC Projects Limited(The Company) was incorporated

as RKEC Projects Private Limited on April 01,2005.

• Our core business is designing and undertaking

construction projects such as Bridges, Ports, dams, high-

rise structures, airports, cross water, roads, highways, Oil

and gas Pipelines, complexes and environmental

structures across India.

• Presently, the Registered office is situated at

Visakhapatnam, Andhra Pradesh, India.

• Shares ofthe company have been listed on NSE

EMERGE Platform.

Executive Summary

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Issue

Highlights

Issue Size: 28.70 Cr.

No. of shares: 63,78,000 Shares

Face Value: 10

Issue Price: 45

Lead Manager to the Issue: HEM SECURITIES LIMITED

Registrar: BIGSHARE SERVICES PRIVATE LIMITED

Trading Lot:

The Market lot and Trading lot for the Equity Share is

Retail - 3000

Other then Retail - 6000

And in the multiple of 3000; subject to a minimum allotment of

3000 Equity Shares to the successful applicants.

Issue opens : 25th September 2017

Issue closes : 28th September 2017

Business Overview 5

Company Name RKEC PROJECTS LIMITED Registered Office Visakhapatnam,

Andhra Pradesh Stock

Visakhapatnam,

Andhra Pradesh

Date of Incorporation April 01, 2005 Exchange NSE - EMERGE Industry Construction

• RKEC Projects Limited(The Company) was incorporated as RKEC Projects Private Limited on April 01,2005.

• Company’s core business is designing and undertaking construction projects such as Bridges, Ports, dams,

high-rise structures, airports, cross water, roads, highways, Oil and gas Pipelines, complexes and environmental

structures across India.

• During the last decade, The Company has undertaken and successfully completed many construction projects

in India covering states of Andhra Pradesh, Tamil Nadu, Gujarat, Odisha, Rajasthan and Maharashtra. In

addition to them, it has expanded its presence to three more states, Kerala, Uttar Pradesh and Manipur, with

ongoing projects.

• Company have entered into projects for diverse range of clients like Defence sector, Railways, Ports, Adani Port,

Vedanta Ltd, IVRCL Limited, Rashtriya Ispat Nigam Limited and ESSAR.

Major Business Segment & Projects Carried By The Company 6

Business Segment Projects

Bridge Construction Work

• The Company has completed major works consisting of

Construction of Bridge No 63 (Open web girder) & No. 66 (PSC

Slab) at delang-Puri Section of KUR Division in Between Km.

482.40 to 499.18, Construction of major bridge on river Beas.

• Company have constructed a parallel bridge at Naval Dock Yard,

Visakhapatnam and a major bridge on Tuni-Dharmavaram

section on NH5 and a railway bridge in the same general area.

• Company have also carried piling works from 400mm to 1500mm

diameter in reclaimed soils, river beds, hard rocks, under water

works for National Highway Authority of India and East Coast

Railways in the construction of Major and Minor bridges.

Marine Works

Company have executed major marine works consisting of

• Construction of Second Liquid Chemical/POL Berth Off Pir-Pau,

Mumbai for Mumbai Port Trust,

• Provision of Jetty between N-14 and N-15 (LST Berth N-14A) at

Naval Dockyard, Visakhapatnam, for DGNP,

• Construction of huge water reservoirs, Construction of Product

Berths No 1 & 2 including sea water pump house for Essar Oil

Limited at Vadinar, Gujarat.

Major Business Segment & Projects Carried By The Company 7

Business Segment Projects

Roads & Building

Company have executed framed structures

• Overhauling facilities for M-36 GTs INS EKSILA, Visakhapatnam

for DGNP,

• Pre Engineered Warehouse (PEB structure) along with CC paving

around warehouse etc. at proposed MMLP at Visakhapatnam for

CCIL,

• Steam repair work shop for Navy, Forming and metalling of

peripheral roads at IDA

Business Strategy

Focus on enhancing the

project execution

capabilities

Capturing the growth

potential and government

focus on Infrastructural

sector

Attract and retain

talented employees

Diversify into new

geographies

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• We intend to continue our focus in enhancing the project execution capabilities so as to

derive benefits of client satisfaction by timely completion and improvement in the

operating margins.

• Efficient project management and execution will also enable us to gain good reputation

among our clients and earn repeated orders from them.

• Infrastructural growth in India has gained momentum with the reforms and benefits

extended by the government.

• Government have taken various steps for the industrial and infrastructural growth of the

country through increased allocation, facilitation of incremental lending to the

infrastructural sector and discounted lending rates to infrastructure sectors.

• We constantly intend to continue our focus on improving health, safety and

environment for employees and provide various programs and benefits for the

personal well-being and career development of employees.

• We intend to strive to further reduce the employee attrition rate and retain more of

skilled workers for future expansion by providing them with better, safer and

healthier working environment.

• Plan to continue our strategy of diversifying across states and increase orders from

outside of Andhra Pradesh for the growth of business.

• To control diversification risks, limit expansion to other states by

undertaking projects first in the areas where we can deliver high-quality services.

• Through an increasingly diversified portfolio, we hope to hedge against risks in specific

areas or projects and protect them from fluctuations resulting from business

concentration in limited geographical areas.

Competitive Strengths

Timely completion of

projects

Experienced Management

and Promoter

Own fleet of Construction

Equipment

Long term Relationship

with the Clients

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• Timely completion of the project as per the schedule and terms of the contract is of utmost

important . It is very critical for the growth of the organization.

• We have a good track record for timely completion with minimum cost overruns.

• Timely completion of projects also helps the organization in reducing the possibilities of

any penalty or liquidated damage being imposed upon by the customers.

• Management has the relevant experience of construction technology and project

management.

• Our team also possesses the requisite qualifications and experience in the construction

industry.

• Our team is responsible for the growth in business operations.

• We have developed own fleet of construction equipment for earth work, piling

bridges.

• Our investment in the construction equipment has helped in mobilizing the man,

material and equipment to the project sites as and when the need arises.

• Company focuses on providing the customers with the desired and standard quality

of work.

• By providing desired quality and standards we aim to achieve highest level of customer

satisfaction and procure repeated orders from customers.

• Because of our good reputation, have been able to obtain orders from a diverse range

of client base including Defense Sector, Railways, Ports, NHAI, IVRCL Limited, Rashtriya

Ispat Nigam Limited and Essar

SWOT Analysis 10

Strengths

• High quality cost effective projects delivery Capabilities

• Good track record on completion of project.

• Long Experience of Promoter in the construction sector.

• Supporting motivated, flexible, and focused team

• Own fleet of requisite construction equipments.

Weakness

• Uncertainty and slow pace of reforms.

• Macroeconomic challengers which constrain public and

private funding.

Opportunities

• Increasing Government focus on increasing reforms in

the infrastructural and industrial sector.

• Expansion of key industry sector like power, steel,

petrochemicals, telecom and others.

• Infrastructural development in the Country

Threats

• Economical and Political scenario in the country.

• Any environmental issues in the execution of the

projects

Strong Management 11

Mr. Radhakrishna Garapati is the Chairman and Managing Director

• He holds degree of Bachelor of Engineering (Mechanical) from Andhra University.

• He has over 3 decades of experience and specialization in civil and Mechanical

construction works.

• Prior to the formation of the Company, he was carrying on the business of civil

construction as a sole proprietor under the name of M/s R. K. Engineers and

Contractors, which was taken over by their company in the year 2006.

• He is instrumental in taking major policy decision of the Company.

• He is playing vital role in identifying, developing and formulating business

strategies and in effective implimentation of Projects

Industry Outlook

Infrastructure

Sector

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• Construction activity creates physical assets in a number of sectors of the economy. Infrastructure

sector has two key segments: (i) Buildings, falling into one of the following categories: residential,

commercial, institutional and industrial; and (ii) Infrastructure such as road, rail, dams, canals,

airports, power systems, telecommunication systems, urban infrastructure including water supply,

sewerage, and drainage and rural infrastructure. Assets once created also need to be maintained.

Many upstream economic activities depend upon the construction sector. It is roughly estimated

that 40–45 per cent of steel; 85 per cent of paint; 65–70 per cent of glass and significant portions of

the output from automotive, mining and excavation equipment industries are used in the

construction industry.

• Construction accounts for nearly 60–80 per cent of the of project cost of roads and housing and a

significant portion in case of other infrastructure sectors. Construction materials such as cement

and steel, bricks and tiles, sands and aggregates, fixtures and fittings, paints and chemicals, petrol

and other petro-products, timber, minerals, aluminum, glass and plastics account for nearly two-

third of the construction costs. The forward and backward multiplier impact of the construction

industry is significant.

• The Infra sector has been contributing around 8 per cent to the nation’s GDP (at constant prices) in

the last five years (2006–07 to 2010–11). GDP from Construction at factor cost (at constant prices)

increased to Rs. 3.85 Lakh crore (7.9 per cent of the total GDP) in 2010–11 from Rs. 2.85 Lakh crore

(8 per cent of the total GDP) in 2006–07. The growth in construction sector in GDP has primarily

been on account of increased spending on physical infrastructure in the last few years through

programmes such as National Highway Development (NHDP) and PMGSY/Bharat Nirman.

• Forecasts for the market size of construction industry for the Twelfth Plan period indicate that the

aggregate output of the industry during the period 2012–13 to 2016–2017 is likely to be Rs.52.31

Lakh crores increasing from Rs. 7.67 Lakh crores in 2012–13 to Rs. 13.59 Lakh crores in 2016–17.

As noted earlier, growth in construction industry is linked to the growth in the infrastructure sector

and the building industry. The output of the industry is likely to be contributed almost equally by

the buildings and infrastructure segments respectively. The thrust on capacity expansion in the

infrastructure sector will continue in the Twelfth Plan.

Competitors Analysis

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35

30

25

20

15

10

5

13

0

Nila Infrastructure

RPP Infra Projects Ltd

Simplex Projects Ltd

RKEC Projects Ltd

PAT (Rs C.)

23.83

22.74

1.78

13.13

PE

32.2

27.79

29.86

8.22

RONW %

12.03

10.96

1.56

33.59

EPS

0.59

10.06

1.14

6.8

Revenue Statement 14

Particulars

Amount In (Rs. Cr) As At

30-09-2017 31-3-2017 31-3-2016 31-3-2015 31-3-2014

Revenue 122.88 197.24 112.58 70.84 57.26

Expenditure 103.66 168.88 99.36 61.41 47.73

Operating Profit 19.82 28.37 13.22 9.43 9.53

Operating Profit Margin % 16.12 14.38 11.74 13.31 16.64

Other Income 0.60 2.88 0.92 0.91 1.38

Depreciation 1.29 2.71 3.44 4.02 3.55

EBIT 18.53 28.53 10.54 6.32 7.36

Interest 2.4 8.40 5.32 3.24 4.25

PBT 16.73 20.13 5.22 3.04 2.26

Tax 5.95 6.99 1.98 1.08 1.18

PAT 10.77 13.13 3.34 1.96 1.08

NPM % 8.76 6.66 2.97 2.77 1.88

Balance Sheet 15

Particulars Amount In (Rs. Cr) As At

30-9-2017 31-3-2017 31-3-2016 31-3-2015 31-3-2014

LIABILITIES

Share Capital 19.31 19.31 9.66 9.66 9.66

Reserves & Surplus 27.68 19.77 15.97 12.77 10.87

Net worth 46.99 39.08 25.63 22.43 20.53

Share Application Money Pending Allotment - - - 0.01

Non Current Liabilities

- Long Term Borrowings 1.51 0.42 - 0.31 1.87

- Deferred Tax Liabilities (Net) - - - -

- Long Term Provision 0.36 0.46 0.22 0.11 0.09

Current Liabilities 74.00 72.56 86.64 33.55 46.38

Total Liabilities 122.87 112.52 112.49 56.40 68.88

ASSETS

Non Current Assets

- Fixed Assets 13.04 10.20 12.20 14.96 17.34

- Non Current Investments - - - -

- Long Term Loans and Advances - - - -

- Deferred tax assets (Net) 0.85 0.84 1.21 0.99 0.73

Current Assets 108.98 101.48 99.08 40.45 50.81

Total Assets 122.87 112.52 112.49 56.40 68.88

Financial Ratio’s 16

Particulars

For Year Ended 31st March

30-09-2017 2017 2016 2015 2014

Return on Net worth (%)

22.99

33.59

12.46

8.74

5.24

EBITDA Margin (%)

16.12

14.38

11.59

13.31

16.64

Debt/Equity

0.04

0.01

0.48

0.44

0.88

Restated Basic and Diluted Earni

ng

5.23

6.80

3.31

2.03

1.11

Net asset value per share (In Rs.) 25.3

20.24

26.54

23.23

21.26

Some of the Projects On Hand 17

Client Project Description

Office of Director General Naval Projects,

Visakhapatnam

Augmentation of Shore Supply at N – 4 to N – 26

Jetties, Dry Docks, Slipways and Degaussing Bay

including associated works at ND(V)

Office of Director General Naval Projects,

Visakhapatnam

Construction of Jetty with Loading Facility at

Visakhapatnam

Cochin Port Trust, Cochin Construction of Multi – User Liquid Terminal at

Puthuvypeen, Cochin Port – ( Re – Tender )

Purvanchal Vidyut Vitran Nigam Limited,

Varanasi

Rural Electrification works of Pratapgarh district in

Uttar Pradesh state under Rajiv Gandhi Grameen

Vidyutikaran Yojna ( RGGVY) – 12th Plan

Jawaharlal Nehru Port Trust, Mumbai Construction of Costal Berth at JN Port

Strong Growth In Revenue 18

300 Revenue(Crores) 270(Appx. for FY18)

250

200

150

100

50

0

Revenue

2015

70.84

2016

112.58

2017

197.24

2018(Half Year)

122.88

Strong Growth In PAT 19

24 PAT (For FY 18)

21

18

15

12

9

6

3

0

PAT

2015

1.96

2016

3.19

2017

13.13

2018 (Half Year)

10.77

Financial Performance 20

Revenue

CAGR (4 Years FY 14 – FY 17)

36.23%

Profit After Tax

86.01%

Investment Rationale 21

Valuation :

Company’s current share value is 136.25 as on 18 Nov 2017

Healthy Financial Performance:

Company has shown strong financial performance during FY18 as it has posted

strong operating & net profit margin of 16.12 % & 8.76% respectively forfirst

half of the FY18. The Company has generated strong return on shareholder’s fund of

22.99% for the first half of the financial year 2017-18

Excellent Growth:

Company has grown at strong CAGR of more than 50% in its top line from FY14 to FY17

while operating profit of company has recorded the CAGR of more than 43 % during the

same year. Also on bottom line front, co has posted whopping CAGR of more than 100 %

from FY14 to FY17.

Strong Clientele:

Co have entered into projects for diverse range of clients including Defence sector,

Ports i.e CoPT and JNPT, IOCL and Purvanchal Vidyut Nigam Ltd.

Investment Rationale

Certification:

Company has certificates for ISO 9001 : 2015 (Quality Management), ISO 14001 :

2015 (Environmental Management) & OHSAS 18001 : 2007 (Occupational Health and

Safety Management) (Standards by INTERCERT accredited by International

Accreditation Service, USA) .

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CRISIL Rating:

Rating of the company has been approved from BB Stable to BB Plus, a rating which

favours Fund Costing. The same is in process for up gradation to BBB Minus

Strong Geographical Presence:

Company has successfully completed may Construction projects in states like Andhra

Pradesh, Tamil Nadu, Gujrat, Odisha, Rajasthan and Maharashtra. Company has also

expand to states of Kerala, Uttar Pradesh, Manipur with their ongoing projects.

Disclaimer:

* For additional information & risk factors please refer to Draft Prospectus.

* This document is provided for assistance only and not intended to be taken alone for the basis for an investment decision.

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THANK YOU

RKEC PROJECTS LIMITED

Door No. 10-12-1, Rednam Alcazar, 3rd Floor, Opp: SBI Main

Branch, Old Jail Road, Rednam Gardens, Visakhapatnam,

Andhra Pradesh -530020

Telephone: +91 891 – 257 – 4517

E-mail ID: info@rkecprojects.com

Website: www.rkecprojects.com