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Ramky Infrastructure LimitedCompany Presentation

Ramky Infrastructure LimitedCompany Presentation

November 2010November 2010

1

This Presentation and the accompanying slides (the “Presentation”), which has been prepared by Ramky Infrastructure Ltd (“The company”) had been prepare solely for information purposes and don’t 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 what so ever. 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, expressed or implied, what so ever, 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 information that you may consider material. Any liability in respect of the content of, or any omission from this Presentation is expressly excluded.

Certain matters discussed in this Presentation may contain statements regarding the Company’s market opportunity and business prospects that are individually or collectively forward looking statements. Such forward looking statements are not guaranties of future performance and are subject to known and unknown risks, uncertainness 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 infrastructure industry in India and world wide, competition, the Companies ability to successfully implement its strategy, the Companies future levels of growth and expansion, technological implementation , market risks, as well as other risks. The Companies 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 forward looking information contained in this Presentation. Any forward looking statements and projections made by third parties(If any) included in this Presentation are not adapted by the Company and the Company is not responsible for such third party statements or projections

DisclaimerDisclaimer

23/11/2010 10:24:35 –

2

Offering summaryOffering summary

23/11/2010 10:24:35 –

Issuer Ramky Infrastructure Limited

Offering Size INR 5,300m (fresh issue of INR 3,500m and offer for sale of INR 1,800m)

Issue Price 450.00

Book Building Issue opened on: September 21st ; Issue closed on: September 23rd

Issue Subscription

Listing Venue Bombay Stock Exchange Ltd. (“BSE”); National Stock Exchange of India Ltd. (“NSE”)

Book Running Lead Managers

IPO Grading IPO Grade 3/5

Objects of the Fresh Issue

Investment in capital equipment INR804.55mWorking capital requirements INR1,750.00mRepayment of loans INR250.54mGeneral corporate purposes INR 694.91 m

Type of offering Reg S

Category % Oversubscription

QIB 60% 4.25

Retail 30% 0.99

Non-institutional 10% 1.44

Overall 2.89 times over subscribed

3

AgendaAgenda

Strengths and growth strategyStrengths and growth strategyStrengths and growth strategy

Industry overviewIndustry overviewIndustry overview

Corporate profileCorporate profileCorporate profile

4

Corporate profile of Ramky Infrastructure LimitedCorporate profile of Ramky Infrastructure Limited

Ramky snapshotRamky snapshotRamky Infrastructure Limited (“Ramky” or the “Company”), is an integrated construction and infrastructure development and management company with a pan-India presence

Ramky operates in two principal business segments:

– Construction business which is operated by the Company

– Developer business which is operated through Subsidiaries and Associates

Ramky is promoted by a first generation promoter, Alla Ayodhya Rami Reddy and Y.R. Nagaraja, and managed by a team of experienced professionals

Addition of Order Book during quarter ended Sept 30, 2010 was INR 49078m

Track record of robust growth attained by a diversified portfolio of projects:

Constructionbusiness

Developer business

Industrial 32 completed projects

Power 12 ongoing projects

Water & Waste water Industrial parks104 completed projects 5 projects

Irrigation15 completed projects Roads 5projects

Transport terminalTransportation28 completed projects 1 project

Building construction82 completed projects Integrated townships 3 projects(INRm) FY2006 FY 2010 FY 11(H1) CAGR*

Order book 14,139 74,317 115894 51.4%

Revenue 4,125 20,093 10286 48.6%

EBITDA 322 2,016 1014 58.2%

Net income 185 1,042 516 54.1%

Note: Above mentioned financials are for Ramky standalone* CAGR between 2006-2010

Sum of the parts

Note: Projects completed in the tables above are from April 1, 2002 to September 30, 2009

Proven track record across construction and developer business verticals

5

Detailed construction business profileDetailed construction business profile

23/11/2010 10:24:35 –

Water & Waste Water

Include water treatment plants, water transmission and distribution systems, elevated reservoirs and ground level service reservoirs, sewage treatment plants, tertiary treatment plants, underground drainage systems and lake restorationsValue of projects in hand: INR 23,083m

Closing order book Closing order book (INR m)(INR m)

IrrigationInclude canals, cross-drainage works, lift irrigation projects, dams and barragesValue of projects in hand: INR 14,914m

IndustrialIncludes industrial parks, SEZs and related worksValue of projects in hand: INR 5,939m

Buildings

Includes commercial, residential, public, institutional and corporate buildings, mass housing projects and related infrastructure and facilities such as hospitals and shopping mallsValue of projects in hand: INR 19,671m

TransportationIncludes expressways, highways, bridges, flyovers and dedicated service corridorsValue of projects in hand: INR 46,819m

Power

Includes electricity transmission networks, substation feeder lines and low tension distribution linesOn-going power transmission and distribution project in Madhya Pradesh and MaharashtraValue of projects in hand: INR 5,469m

14,139 22,308

36,887

59,238 74,317

115,894

0

20,000

40,000

60,000

80,000

100,000

120,000

140,000

FY06 FY07 FY08 FY09 FY10 FY 11(H1)

Average order size Average order size (INR m)(INR m)

Revenue visibility is driven by robust order book growth in the construction business

1,216 4,778 5,587

15,644 15,541 18,250

04,0008,000

12,00016,00020,000

FY06 FY07 FY08 FY09 FY10 FY 11(H1)

6

Detailed construction business profile (continued)Detailed construction business profile (continued)

23/11/2010 10:24:35 –


Irrigation

Perceived by clients as a total irrigation solution provider, including, lift irrigation, dams, barrages and cross drainage workEfficient design and execution teamMitigate risks in the vertical by only retaining core activities of design and supervision while subcontracting all other areasFocus on geographic expansion outside Andhra Pradesh into states such as Gujarat, Madhya Pradesh and KarnatakaQualified to bid for larger projectsStrategy is to leverage government incentives for the sector

2,929 4,021

13,586 16,823

24,476 23,083

0

5,000

10,000

15,000

20,000

25,000

30,000

FY06 FY07 FY08 FY09 FY10 FY 11(H1)


Construction business is spearheaded by Water and Waste Water with significant contributions from other segments

Water & Waste Water

Core competency and area of continued focus going forwardUndertake projects on both composite and several basis with scope including, design, engineering, construction, operation & maintenance solutions to manage projects from generation, T&D, Treatment, eventual storage & disposalHighly specialized internal design team equipped with tacit processes and know how gained through experienceQualified to build Treatment Plants of large sizes up to 300 MLDStrategy going forward is to retain leadership by continuous investment in technology

1,216

4,778 5,587

15,644 15,541 14,914

0

4,000

8,000

12,000

16,000

20,000

FY06 FY07 FY08 FY09 FY10 FY 11(H1)

7

Detailed construction business profile (continued)Detailed construction business profile (continued)

23/11/2010 10:24:35 –


Buildings

Focus remains on construction of large institutional buildingsInbuilt processes to attain synergies across various verticals and rely on a pool of qualified subcontractors for efficient execution Core competency remains focusing on efficient planningStrategy is to mechanize processes where specialized manpower is required, thereby, improving operating margins


Additionally, Ramky continues to build on momentum gained in other verticalssuch as Power

Transportation

Qualified to execute expressways, highways, bridges, flyovers and dedicated service corridorsMaximize efficiency through seamless synchronization of supply chain, logistics, operation and execution functionsLeverage expertise in developer businessAim for completion prior to target dates through:

- Control over supply chain (e.g. Quarries)- Technology to improve supply chain and

reduce pilferages- In house control over bituminous mix

Strategy remains to focus on challenging terrains1,403 3,836 5,992

9,249 15,750

46,819

0

10,000

20,000

30,000

40,000

50,000

FY06 FY07 FY08 FY09 FY10 FY 11(H1)

4,579 3,837

8,527 10,451 10,244

19,671

0

5,000

10,000

15,000

20,000

25,000

FY06 FY07 FY08 FY09 FY10 FY 11(H1)

8

Developer business profileDeveloper business profile

Name of subsidiary(Ramky’s interest)

Project cost / estimated project

cost in INR m

Completion date/ Scheduled

completion date Description

Ramky Pharma City (India) Limited(51%) 5,205 September 2010 2,143 acres of a integrated industrial park aimed at handling bulk drug manufacturers,

pharmaceutical companies and fine chemical manufacturers

Ramky MIDC Agro Processing Park Limited (100%) 468 August 2013 SEZ will have a leasable area of 172 acres

Ramky Herbal and Medicinal Park (Chhattisgarh) Limited (100%) 964 October 2014 Concession to develop a 250 acre herbal and medicinal industrial park in Dhamtari,

Chhattisgarh on a BOT basis

Ramky Food Park (Chhattisgarh) Limited (100%) 835 October 2014 Concession to develop a 303 acre food processing industrial park in Rajnandagao,

Chhattisgarh on a BOT basis

Naya Raipur Gems and Jewellery SEZ Limited (100%) 1,834 October 2014 Concession to develop a 70 acre gems and jewellery SEZ in Raipur, Chhattisgarh on a

BOT basis (42.03 acre leasable area)

Ramky Elsamex Hyderabad Ring Road Limited (74%) 3,994 Completed Operate and maintain a 12.63km eight lane expressway – part of Phase-II of the program

Gwalior Bypass Project Limited(51%) 3,321 October 2009(1) Developing a 42km road that will connect the NH-3 & NH-75 highways in Madhya Pradesh

MDDA Ramky IS Bus Terminal Limited (100%)

131(Phase 1)319 (Phase 2)

June 2004 (Phase 1)March 2010 (Phase 2)

Operate the bus terminal to be built for one of the first time on a BOT basis in IndiaRevenue earned from terminal fees, shop rental, advertising, and accommodation charges

Ramky Towers Limited(51%) 4,000 March 2011 Developing an integrated residential and commercial project on 17.10 acres in Gachibowli,

Hyderabad (1,478,470 sq. ft. saleable area)

Ramky Enclave Limited(89.01%) 2,164 September 2011 Developing an integrated housing project on 32.69 acres of land (946,210 saleable area)

Ramky Integrated Township Limited(29.19%) 34,244

72 months from satisfaction of

conditions precedents.

Developing an integrated township on 574.60 acres in Ranga Reddy District, Andhra Pradesh (estimated 14.0m sq. ft. saleable area)

NAM Expressway Limited (50%) 18000 July 2013 Developing the 212.50km Narketpalli-Addank-Medarametla in Andhra Pradesh on build operate and transfer (BOT ) basis

Jorbat Shilong Road Project(50%) 8240 June 2014 Design, engineering , construction, operation and maintenance of the 61.85km 4 lane road

in Jorbat-Shillong

Srinagar Banihal Road(74%) 14173 June 2014 Rehabilitation, strengthening and converting to 4 lanes of the 67.76km section of NH-1A

from Srinagar to Banihal in Jammu and Kashmir

(1) Gwalior Bypass Project Limited has vide letter dated September 19, 2009 applied for extension of completion date to September 2010

Recent Projects“Roads driving

growth”

Niche area of expertise remains Industrial Parks whilst Roads are expected to drive growth

Integrated Townships

“Walk to work”

Transport Terminal

Roads“Challenging terrain”

Industrial Parks“Focus on polluting

industries”

9

Net Worth details of key developer projects Net Worth details of key developer projects

23/11/2010 10:24:35 –

Project Net Worth (in INR Mn as of 31st

March 2010)* Description

Ramky Pharma City Ltd 658.6

Remaining land 577 Acres to be sold over next two years. Current on going rate 1.21 lakhs for SEZ and 90 Lakhs for Non-SEZ. 163 Cr of cost yet to be incurred

Ramky Integrated Township Ltd 3102.6Developing 575 Acres (25 Mn sq ft of land over 6 years of which 15 mn sq ft will be salable.

Ramky Towers Ltd 52.78.65 Mn sq ft to be sold over next two years @ an on going rate of about Rs. 3500/ Sq ft

Ramky Enclave Ltd 226.3 Developing an integrated housing on 32.69 acres of land

Ramky Elsamax Hyderabad Ring Road Ltd 1115 O&M of 12.63 Km of eight lane

expressway

Gwalior Bypass Project Ltd 882.7 Developing 42 Km bypass road that connect NH3 and NH75

MDDA Ramky ISBT 140.5 O&M of the bus terminal

* Includes Share Application Money

10

Detailed developer business profile (continued)Detailed developer business profile (continued)

RoadsRoadsIndustrial ParksIndustrial Parks

Focus remains on industrial parks for polluting industriesRamky specialises in providing state-of-the-art civil infrastructure and industry specific waste handling facilities

Focus remains on roads with technically challenging projects in difficult terrainRevenue certain mode:

– Annuity projects preferred– Alternatively, conservative toll assumptions

Earn bonus for early completionRamky Pharma City is an integrated industrial park spread over 2,143 acres in Parwada, Andhra PradeshInitial area: 2,143 acres

– SEZ: 611 acres (413 acres saleable)– Non-SEZ: 1,532 acres (1,016 acres saleable)

Fully developed and operational with 1,068 acres soldWaste handling facilities include, ETP, CETP, MEE, WTP, outfall, incineration and landfillCivil infrastructure like training facilities, convention facilities, labs, administrative facilities, roads, security , banking facilities and catering facilities present on site

Design, construction, operation and maintenance of 8 lane expressway under phase IIA of outer ring road project in HyderabadStretching over a length of 12.63 km between Tukkaguda and Shamshabad was completed by November 2009, 6 months ahead of scheduled completionRevenue model:

– Fixed semi-annuities on a BOT basis – Semi- annuities of INR315.0m for a period of 12.5 years

Execution efficiency demonstrated by:– Control over aggregates through rights on quarries– Control over pilferage and logistics through global fencing

technology on vehicles– Control over core actively by investing in bitumen mixers and

layers– Subcontracting non-core activities through productivity oriented

contracts

Case study: Ramky Pharma City

Case study: Hyderabad Ring Road

Recent transactions

Client Acres Price/Acre Year

Srivani Chemicals

2.6(Non-SEZ) INR9.0m 2009

Syntrix Ltd 3.0(Non-SEZ) INR9.0m 2010

Hospera 19.0(SEZ) INR12.8m 2010

ClientsPharmaZellEisaiBioconSNFOrchidMatrixAurobindo

Synergistic business model between core construction activities and development business

11

AgendaAgenda




12

Overview of Indian infrastructure sectorOverview of Indian infrastructure sector

Key highlightsKey highlights

Despite the slowdown, investment in India has remained relatively stable with the ratio of fixed investment to GDP increasing to 32.2% of GDP in FY2009 compared to 31.6% in FY2008

Investments in construction – circa 11.0% of India’s GDP & circa 50.0% of the gross fixed capital formation

Over the next five years, infrastructure development to account for 78.3% of all construction expenditure in India

Expenditure on industrial construction is expected to grow 2.2x over the next five years (2008 –13) as compared to the previous five year period (2003-08)

Private capital to fund approximately 30.0% of the total investment during the Eleventh Plan, as compared to 20.0% during the Tenth Plan

Twelfth plan target infrastructure spendingTwelfth plan target infrastructure spending

Source: Mid term appraisal of Eleventh Plan by Planning Commission

Projected growth in Infra & Industrial segmentsProjected growth in Infra & Industrial segments

CAGR: 14.0%

CAGR: 11.9%

CAGR: 31.8%

CAGR: 0.7%

Source: CRISIL Research

227

514

1,025

10th plan actual

(2002 – 07)

11th plan revised

(2008 – 12)

12th plan target

(2013 – 17)

At 4.5x of Tenth PlanAt 4.5x of Tenth Plan Accounts for 10% of GDPAccounts for 10% of GDP

4.5x

2.3x5.08%

7.55%

9.95%

10th plan actual

(2002 – 07)

11th plan revised

(2008 – 12)

12th plan target

(2013 – 17)

13

Government playing a crucial role in Ramky’s core sectorsGovernment playing a crucial role in Ramky’s core sectors

Government incentives to infrastructure sectorGovernment incentives to infrastructure sector

Permitting FDI up to 100% in companies engaged in construction development projects in housing, commercial premises, resorts, educational

institutions, recreational facilities, townships and city and regional level infrastructure, subject to conditions in Press Note No 2 (2005) issued by

the Government of India

The revised estimate for Infrastructure investments under the 11th Plan is US$514 bn. This is a 2.4x increase v/s actual Infrastructure investment

under the Tenth Plan

Average investment in Infrastructure under the Twelfth Plan would be 9.95% of GDP as against 7.6% in Eleventh Plan and 5.1% in Tenth planSource: CRISIL Research

SectorSector--wise Govt. spendingwise Govt. spending

Source: Mid-term Appraisal of XI plan, by Planning Commission

Telecom INR3,532bn, 17%

RailwaysINR2,008bn, 10%

PortsINR406bn, 2%

Oil & gasINR1,273bn, 6%

StorageINR90bn, 0%

AirportsINR361bn, 2%

ElectricityINR6,586bn, 32%

RoadsINR2,787bn, 14%

IrrigationINR2,462bn, 12%

WaterINR1,117bn, 5%

Ramky’s core focus

14

AgendaAgenda




15

Key business strengthsKey business strengths

23/11/2010 10:24:35 –

Execution efficiency

Pan‐India presence

Benefits of parentage

Independent board & experienced

management team

Strongfinancial profile

Diversified sector focus

16

Execution efficiencyExecution efficiency

Two reasons mainly contributed to increase in margins– Economies of scale – Well established processes for execution

1

Note: Ramky standalone financials

Execution keeping pace with order book (INR m)Execution keeping pace with order book (INR m)

Operational efficiency maintained withOperational efficiency maintained withincrease in scale of operationsincrease in scale of operations

1,742 full-time employees of which 41% are engineers (as of 31 March 2010)Execute effective planning and tie-ups with institutesHire only supervisory level and aboveSubcontract low end activity

Maintain a lean asset sizeProcure only core and scarce equipmentPrefer hiring non-core equipment machinery

Index pegged contractsCreate pre-bid tie ups for key commoditiesBuilt long term vendor relationships for effective procurement

Continued access to debtLimited dilution of stock and improved access to capital marketsCapital to support future growth

Superior in-house design capabilities remains a key distinguisher in executing complex projects

Man power Machinery

Materials Money

0

5,000

10,000

15,000

20,000

25,000

0.00%2.50%5.00%7.50%

10.00%12.50%15.00%17.50%20.00%

FY06 FY07 FY08 FY09 FY10 FY 11(H1)

EBITDA margin Revenue

17

Diversified sector focusDiversified sector focus

Note: Order book as of 30 September 2010

2

% FY2010 revenue (FY 11% FY2010 revenue (FY 11--H1)H1)Construction revenue:Construction revenue:

% order book % order book Value of order book: INR 115,894mValue of order book: INR 115,894m

No sector has more than one third share of order book and/or FY2010 revenue

Water & waste water

19.9%

Irrigation 12.9%

Buildings17%

Transportation40.4%

Power 4.7%

Industrial5.1%

Irrigation 8.2%

Water & waste water

33.2%Buildings21.9%

Transportation19.6%

Industrial4%Power

6.1%

18

Pan-India presencePan-India presence3

Ramky’s pan-India presence increases diversification and positions us uniquely amongst competitors

% FY2011(H1) revenue % FY2011(H1) revenue Construction revenue Construction revenue

% order book (30% order book (30stst Sept Sept –– 2010)2010)Value of order book : INR 11,589mValue of order book : INR 11,589m

Andhra Pradesh32.7%

Eastern states12.6%

Western states11.7%

Other Southern states7.8%

Northern states30.5%

Central states4.7%

19

Benefits of parentageBenefits of parentage4

Ramky is the flagship company of Ramky GroupRamky Group is a multidisciplinary organization focused in the areas of Civil, Environmental & Waste Management infrastructure with specific emphasis on 'Public Private Partnership' projectsOperational since 1994 with over 15 years of experience across the infrastructure sectorRamky Group has a presence in more than 55 locations in India in addition to branch offices at Saudi Arabia, UAE and SingaporeOperates through 4 Group Companies namely: Ramky Infrastructure Limited, Ramky Enviro Engineers Ltd, Ramky Estates and Farms Ltd and Ramky Finance & Investment Pvt. Ltd.Each Group Company has an independent and professional management team in place

Benefits accruing to Ramky

Ramky remains the flagship company of Ramky Group which is evolving into a leading Infrastructure conglomerate in India

20

Independent board & experiencedmanagement teamIndependent board & experiencedmanagement team

5

23 years of experience in the field of environmental services, civil works, biomedical waste and hazardous waste managementWorked for various water, waste water and engineering projects, notably with Gannon Dunkerly & Co., Reliance Industries LimitedBachelor’s degree in civil engineering from Karnataka University and a master’s degree in civil engineering from Osmania UniversityAccredited with best “Engineer of Year Award” in 2005 by Govt. of Andhra Pradesh & Institute of Engineers (India)

Alla Ayodhya Rami ReddyChairman, Ramky Group

Y. R. NagarajaManaging Director, Ramky

Ramky Board of DirectorsRamky Board of Directors

Y. R. Nagaraja

Managing Director

Rajiv MaliwalNon-Executive

Director SAPE Nominee

Dr. A. HingoraniNon-Executive

Director Tara India Fund

Nominee

P V Narasimham

Independent Director

Murahari Reddy


PG Sastry


K S Vikamsey


V H Kumar


Ramky Management TeamRamky Management Team

24 Years of experience in allied fieldsPositions held with the Public Works Department of the State of Karnataka, Mandanlal Steels Limited and Navega Engineers Private LimitedBachelor’s degree in civil engineering from Karnataka University

A. F. Battiwala23 yrs. of experience

Sanjiv Iyer25 yrs. Of experience

P. Mahendra Kumar30 yrs. of experience

K. V. S. S. Narayanrao17 yrs. of experience

Phani Bhushan8 yrs. of experience

Head – Contractor Business Head – Finance Head – Commercial Head – HR & Admin Head – Secretarial

A well balanced board with a professional management team across all business segments ensures transparency and efficiency in decision making

21

Strong financial profileStrong financial profile6

Networth Networth (INRm)(INRm) & ROE& ROEIncome Income (INR m)(INR m) and EBITDA marginand EBITDA margin

Leverage ratiosLeverage ratiosWorking Capital ratios Working Capital ratios (INR m)(INR m)

Note: All financials are for Ramky standalone

414

2,0302,541

3,220

4,2634,778

44.7%

19.0%

20.1% 21.1%24.4%

21.6%

FY 06 FY 07 FY 08 FY 09 FY 10 FY 11(H1)

Networth ROE (%)Note: ROE calculated as net income/networth

0.3x

0.8x

2.1x 2.2x

1.7x

2.5x

0.2x 0.3x

0.8x1.0x

0.8x1.1x

FY 06 FY 07 FY 08 FY 09 FY 10 FY 11(H1)

Net debt/EBITDA Net debt/Equity

Aggressive growth has been achieved whilst improving margins and maintaining a conservative balance sheet

44

120

148 129 127

145

11.6%

32.5%

40.4%35.6% 35.0%

39.7%

FY 06 FY 07 FY 08 FY 09 FY 10 FY 11(H1)

Net working capital days Net working capital (% of sales)

3,797

7,111

10,292

14,304

18,613

9,259

7.8%

10.8%9.7% 10.0% 10.8% 11.0%

4.5%5.4%

4.8% 4.6%5.2%

FY 06 FY 07 FY 08 FY 09 FY 10 FY 11(H1)Income EBITDA margin (%) PAT margin (%)

22

Growth strategyGrowth strategy

Developer businessDeveloper businessConstruction businessConstruction business

Continue to build on the expertise gained in polluting industries parks

Leverage on Water and Waste Water construction business once government opens sector

Power and other highly complex verticals (synergistic)

‘Public Private Partnerships’ will be the focus model

Undertake projects with visibility on returns

Leverage our execution capabilities and move into larger and more complex projects

Continue to focus on Water and Waste Water projects and through leadership in technology and design

Closely track and benefit from sectors with Government priority such as transportation and power

Improve productivity through economies of sale

Compete through optimum pricing and efficient execution

Ramky has benefitted from a “first-movers” advantage in several verticals and continuing to innovate remains the Company’s core strategic focus going forward

23

Key investment highlightsKey investment highlights

23/11/2010 10:24:35 –

Infrastructure sector Large addressable opportunity

Construction expenditure is expected to double to INR12,189bn during 2008-09 to 2012-13 period versus INR6,217bn during the 2003-04 to 2007-08 periodBetween FY2010 and FY2014, government spending on roads alone is targeted at INR5,216bn with increased focus on timely completion

Business model Scalable with proven execution

capabilities

Ramky’s strategically positioned to realize opportunities in the sector with presence in both construction and development businessesCompleted 104 Water and Waste Water projects, 82 Building Construction projects, 15 Irrigation projects, 28 Transportation projects and 32 Industrial projects

DiversificationSectoral & geographical presence

Evolved from a consultant to a EPC player and finally a infrastructure developer- Ramky continues to build on core competenciesReduces the risk of dependence on any one sector or project and helps in participating in projects across the country

Visibility of earningsRevenue driven by strong order book

Order book of INR 115,894m as of Sept 310 2010 provides high revenue visibilityProven execution capabilities with planning and execution expertise, ensuring order completion within the estimated budget and on time.For the period ended March 31, 2010 the company had a order to sales ratio of 3.7x

Parental leverageExperienced management and marquee

investors

Synergistic model leveraging on core construction activities and expertise gained in other Ramky Group companies to culminate in a efficient development businessHighly experienced professional management team with proven capabilitiesDelivered returns to marquee investors including IL&FS (Tara Fund III), International Finance Corporation & SAPE

24

Key financials – P&L Key financials – P&L

23/11/2010 10:24:35 –

Standalone financials

Consolidated financials

INRm FY 07 FY 08 FY 09 FY 10 FY 11(Q2) FY 11 (H1) Revenue ** 7111 10292 14304 18613 5062 9259Growth rate 87.29% 44.75% 38.98% 30.12% 57.76% 39.9%*EBITDA 775 1023 1475 2016 526 1014EBITDA margin 10.90% 9.94% 10.31% 10.83% 10.39% 10.95%PBT 542 687 849 1300 325 650PBT margin 7.62% 6.67% 5.94% 6.98% 6.42% 7.02%PAT 386 510 680 1042 255 516PAT margin 5.43% 4.96% 4.75% 5.60% 5.04% 5.57%

INRm FY 07 FY 08 FY 09 FY10 FY 11(Q2) FY 11 (H1) Revenue ** 7384 11164 15560 21631 5666 10171Growth rate --- 48.57% 39.30% 32.40% 56.64%* 35.03%*EBITDA 799 1235 2106 3103 994 1720EBITDA margin 10.82% 11.06% 13.53% 14.35% 17.54% 16.91%PBT 559 868 1301 1902 637 1044PBT margin 7.57% 7.78% 8.36% 8.79% 11.24% 10.26%PAT 396 626 979 1494 405 681PAT margin 5.36% 5.61% 6.29% 6.91% 7.15% 6.70%

•Note: All financials are for Ramky restated•- YOY growth for the first six months of the financial year•** : Revenue figures are excluding WIP

Stellar performance continues…

25

Key Financials- Balance SheetKey Financials- Balance Sheet

Standalone ConsolidatedINRm FY 07 FY 08 FY 09 FY 10 FY

11(H1) FY 07 FY 08 FY 09 FY 10 FY 11(H1)

Net worth 2030 2541 3220 4263 4778 2032 2553 4261 5549 6229

Minority Interest -- -- -- -- -- 94 665 867 1480 1654

EPS 7.96 10.49 13.75 21.09 10.44* 8.17 10.58 16.86 26.07 13.79*

Long terms Debt 1236 2644 3899 4739 5798 1623 3190 7043 10110 11513

D/E 0.61 1.04 1.21 1.11 1.21 0.80 1.25 1.65 1.82 1.85

Fixed Assets 716 688 1365 1386 2075

F.A / Revenue 10% 7% 10% 7% 11%Investments 201 606 792 1078 1161 1 1 977** 976** 976**

Net Working Capital *** 2348 3891 4962 6538 7340 2346 3950 4250 6645 7510

W.C days 121 138 127 128 145 116 129 100 112 135

Sundry debtors 2398 4479 5648 5744 5620 2143 3780 4423 5020 5102

Debtors Days 123 159 144 113 111 106 124 104 85 92

Cash 630 495 619 1384 772 1122 700 815 1678 1083

Net Debt 606 2149 3280 3355 5027 508 2531 6256 8441 10430

Net Debt/Equity 0.3 0.85 1.02 0.79 1.05 0.25 0.99 1.47 1.52 1.67•* Represents only Half yearly earnings•** Revalued based on PE investment•*** Net of Share Application Money

Capital management key to high EPF

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Post-issue Share holding patternPost-issue Share holding pattern

23/11/2010 10:24:35 –

Anchor investorsAnchor investors

Share Holding pattern As of 8th Oct 2010Category # of shares %

Promoter group(A) 38,238,967 66.85%

Institutions(B)

Mutual Funds/UTI 1,750,611

Financial Institutions/Banks 606,066FIIs 4,082,830

Venture Capital Funds 291,420

Insurance companies 1,102,955Sub total(B) 7,833,882 13.70%

Non‐Institution (C ) 11,124,942 19.45%

Total public holding(B+C) 18,958,824 33.15%Total Shares(A+B+C) 57,197,791 100.00%

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