Thread by @desiwallstreet

(1/n)
GMR Power & Urban Infra Ltd

A detailed 🧵on a Potential MULTIBAGGER from the Power & Infra Sector

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(2/n)
GMR Power & Urban Infra Limited (GPUIL), holds expertise in the sectors of Energy, Urban Infrastructure & Transportation. Urbanization has given the country rapid growth and contributing towards this growth, GMR Group ventured into this business sector.

(3/n)
The division leverages on its collective experience and expertise in building successful projects across the country

(4/n)
🎯Co has reported a BIG Turnaround during Q1FY23
▪️Co has turned Profitable
▪️Reported PAT of 243cr vs loss of 226cr QoQ
▪️Q1 EPS of 3.52 vs (3.55) QoQ
▪️FY23EEPS of 13
▪️Gross Debt Reduced by 300cr during Q1
▪️Debt reduction & Debt restructuring in progress

(5/n)
▪️Trading at Forward P/E of just 2x
▪️Coming quarters can witness further improvement

ENERGY - PLF
▪️Warora: 94% vs 54% YoY
▪️Kamalanga: 81% vs 83% YoY
▪️Bajoli Holi: 50%

Highways – PCU Traffic growth
▪️Hyderabad - Vijaywada: +41% YoY
▪️Ambala - Chandigarh: +7% QoQ

(6/n)
GMR Energy Ltd (GEL) - Financial Highlights
▪️Revenue at 1358cr vs 868cr (57% YoY)
▪️EBITDA at 547cr vs 235cr (+133% YoY)
▪️PAT at 248cr vs loss of 117cr

GMR Warora Energy Limited (GWEL)
▪️Debt resolution plan approved & adopted during Q1FY23

(7/n)
▪️798cr trade receivables & unbilled revenue, mgmt is confident of favorable outcome towards outstanding receivables
▪️Disputed capacity charges of 132cr awarded in favor of GWEL by CERC
▪️New PPA with GUVNL for the supply of 150 MW of power from October 2021 to July 2023

(8/n)
GMR Kamalanga Energy Limited (GKEL)
▪️1584cr trade receivables & unbilled revenue, management is confident of a favorable outcome towards the outstanding receivables
▪️The total outstanding receivable from Bihar Discoms amounts to 378cr

(9/n)
GMR Hyderabad Vijayawada Expressways Pvt Ltd (GHVEPL)
▪️Claim of 1672cr awarded to GHVEPL against NHAI by the arbitrator
▪️Arbitral Tribunal has been reconstituted & the hearing for procedural order has been fixed for August 24, 2022

(10/n)
GMR Chennai Outer Ring Road Pvt Ltd (GCORR)
▪️GCORR received an award of 340cr + interest against Government of Tamil Nadu (GoTN)
which was challenged in Madras HC
▪️HC upheld Tribunal Award & dismissed the challenge
▪️HC also awarded 9% p.a. interest on pre-award claim

(11/n)
Co operates in 4 distinct business segments
1️⃣Power
2️⃣Roads
3️⃣EPC
4️⃣Urban Infra

💎ENERGY SEGMENT
▪️GMR Energy is one of the largest diversified Infrastructure Conglomerates in India

(12/n)
▪️With operating capacity of over 4400 MW, it has a balanced fuel mix of coal, gas, LSHS as well as renewable sources of wind and solar energy.
▪️Plants of over 2300 MW generation capacity are under various stages of development in India & Nepal

(13/n)
▪️Portfolio diversity with mix of power sales contracts in short, medium & long term
▪️Operating coal property in Indonesia provides essential requirement of fuel security
▪️The co is moving from developing projects (Asset creation) to operating assets (Revenue generation)

(14/n)
Tenaga Nasional Berhad (Tenaga)
▪️Tenaga, the largest power utility player in Malaysia invested 30% equity in GMR Energy
▪️Tenaga with capacity of 10,818 MW & 50% market share, has significant experience in managing and operating power assets

(15/n)
▪️Tenaga’s experience would further facilitate GMR Energy in improving performance of its operational assets, develop it’s under development pipeline of hydro & renewable energy assets & drive future growth of the portfolio

(16/n)
➡️ENERGY ASSETS - COAL MINE
1️⃣PT Golden Energy Mines Tbk (PT GEMS)
▪️Co holds 30% equity stake in PT Golden Energy Mines Tbk (PT GEMS) through its subsidiary
▪️PTGEMS is part of Sinar Mas group, one of the largest business conglomerate in Indonesia

(17/n)
▪️PT GEMS is engaged in the exploration, mining & marketing of thermal coal from its coal mining concession areas in Indonesia
▪️Co Stake in PT GEMS is currently valued at ~6250cr vs mkt cap of ~1600cr
▪️Potential resource of 2.91 bn tons & total reserves of 1.03 bn tons

(18/n)
▪️In FY22, GMR Power has received dividend from PT GEMS amounting to 843cr
▪️During CY21, PT GEMS recorded realisation of coal production of 29 mn tons, whereas the sales volume was 29.5 mn tons
▪️Significant Improvement in coal prices have resulted in better profitability

(19/n)
▪️Realisations were up 2.7x YoY to USD 79.8/ton in Q4FY22 from USD 29.7/ton in Q4FY21 due to increase in coal prices
▪️EBITDA per ton increased from USD 5.0/ton to USD 30.7/ton in Q4FY22 due to higher realization
▪️PT GEMS aims to achieve production of 40 mn tons in CY23

(20/n)
➡️ENERGY ASSETS - GREEN ENERGY
1️⃣Wind Energy
▪️2.10 MW plant located in Moti Sindhodi Village, Kutch District, Gujarat. 25-year PPA has been signed with GUVNL with respect to the entire power generated from the Plant

(21/n)
▪️1.25 MW plant is located in Tirupur District, Tamil Nadu. 20-year PPA was signed with TANGEDCO with respect to the entire power generated from the Plant

2️⃣Hydro Energy
▪️GMR Bajoli Holi. 180 MW run-of-the-river power Project successfully commissioned on March 28, 2022

(22/n)
▪️GMR Upper Karnali Hydropower Ltd in Nepal is Prestigious 900 MW project is under advanced stage of development. Export oriented project with power to be supplied to India & Bangladesh
▪️GMR Londa Hydropower, a 225 MW project in East Kameng district in Arunachal Pradesh

(23/n)
▪️GMR Badrinath Hydro Power Generation Private Ltd is developing a 300 MW Alaknanda HEP on Alaknanda River in Uttarakhand

3️⃣Solar Energy
▪️GMR Gujarat Solar Power Pvt Ltd in Patan is one of the first 25 MW single Solar Project installed in India. PPA with GUVNL for 25 Yrs

(24/n)
▪️GMR Rajam, 1 MW solar power plant located in Rajam, Andhra Pradesh

➡️ENERGY ASSETS - COAL
1️⃣GMR Warora Energy Ltd, India
▪️600 MW coal based power plant located in Chandrapur, Maharashtra
▪️Long term PPA for 200 MW each with DNHPDCL, MSEDCL & 150MW with TANGEDCO

(25/n)
2️⃣GMR Kamalanga Energy Ltd, India
▪️1050 MW power plant located in Dhenkanal district, Orissa is strategically located close to the coal belt
▪️15% untied capacity to take advantage of the merchant market
▪️Long Term PPA with GRIDCO, UHBVNL & Bihar State Electricity Board

(26/n)
➡️ENERGY ASSETS - GAS
1️⃣GMR Vemagiri Power Generation Ltd
▪️388 MW GE-9F Gas based power plant in Rajahmundary, AP
▪️Being India’s most cost-effective independent power producer, this plan is NG/RLNG fired combined cycle power plant fitted with advanced gas turbines frm GE

(27/n)
2️⃣GMR Rajahmundry Energy Ltd
▪️768 MW combined cycle power plant with Natural gas and group’s largest gas based power plant
▪️Equipped with an advance Gas Turbine Technology from GE
▪️Located close to Krishna Godavari gas basin

(28/n)
💎TRANSPORTATION SEGMENT
▪️Mixed portfolio of Annuity & Toll Projects
▪️Surface transport projects includes Roads, Railways, Metros & Airstrips/ Runways in both DBFOT (under GMR Highways) and EPC (under GIL – EPC) segments

(29/n)
▪️4 operating assets with total length of over 1824 Lane kms of Roads & Highways
▪️Railway projects worth 4000cr

1️⃣GMR Pochanpalli Expressways Ltd
▪️412 Lane Km on BOT Annuity based for 20 years project on NH-7, Andhra Pradesh

(30/n)
▪️Built to world-class standards, four-laning of this road has eased traffic congestion & provided a tremendous boost to trade & commerce in the region

2️⃣GMR Chennai Outer Ring Road Pvt Ltd
▪️178 Lane kms on DBFOT Annuity based for 20 yrs, Groups 1st state highway project

(31/n)
▪️The project links NH 45, NH 4 and NH 205 outside the city

3️⃣GMR Ambala Chandigarh Expressways Pvt Ltd
▪️The Ambala - Chandigarh project on NH-21 & 22, Haryana & Punjab 140 Lane Km on BOT Toll based for 20 years is the Group’s first highway project in North India

(32/n)
▪️The Ambala - Chandigarh stretch has one of the highest traffic densities in country, catering to vehicular traffic between Punjab, Haryana, Himachal Pradesh & New Delhi
▪️There is a 12-lane state of the art toll plaza for toll collection with facility for Electronic Toll

(33/n)
4️⃣GMR Hyderabad Vijayawada Expressways Pvt Ltd
▪️GMR Infrastructure Limited led consortium has won the Hyderabad – Vijayawada highway project on a Build, Operate and Transfer (Toll) basis through an international competitive bidding route

(34/n)
💎EPC SEGMENT
▪️Provides turnkey EPC solutions across multiple business sectors like Airports, Energy, Highways, Railways and Urban Infrastructure
▪️The division has delivered several critical projects across the Group and is powered by a highly experienced workforce

(35/n)
1️⃣Highways
▪️Ambala - Chandigarh on NH-22,21, Haryana, Punjab
▪️Adloor - Gundla Pochanpalli on NH-7, Andhra Pradesh
▪️Chennai Outer Ring Road (CORR) on Chennai, Tamil Nadu
▪️Hyderabad - Vijayawada on NH-9, Andhra Pradesh
▪️Hungund - Hospet on NH-13, Karnataka

(36/n)
▪️Tindivanam - Ulundurpet on NH-45, Tamil Nadu
▪️Thondapalli - Jadcherla on NH-7, Andhra Pradesh

(37/n)
2️⃣Buildings & Energy
▪️Kamalanga Thermal Power Plant, Odisha
▪️GMR Warora Energy Power Plant, Maharashtra - Coal Handling plant
▪️GMR Varalakshmi DAV School
▪️GMRVF Care Hospital, AP - 130 bed Hospital
▪️TATA Myst Project, HP - Construction of Row houses & Villas

(38/n)
3️⃣Railways
▪️RVNL’s Jhansi - Bhimsen Project, Uttar Pradesh
▪️RVNL’s Multi Modal Transport System (MMTS) Ph – II Corridors in three packages
▪️DFCC’s Package 201, 202, Uttar Pradesh
▪️DFCC Package 301, 302

(39/n)
💎URBAN INFRA SEGMENT
▪️Building state of the art, multi-product industrial projects in Tamil Nadu
▪️Currently developing a 2101Ac (850 Ha) multi-product Special Investment Region (SIR) at Krishnagiri, Tamil Nadu

(40/n)
💡WHAT'S IN STORE FOR FUTURE ?
▪️Continued focus on deleveraging via divestments/ equity capital transaction with marquee partners
▪️In order to reduce its debt fur­ther, co is pl­anning to partial stake sale in PT GEMS to raise up to $400 million

(41/n)
▪️Co plans to reduce Debt significantly
▪️Positioning EPC Business to become a key player in the Railway Sector
▪️Co has a Proven track record of developing and operating a diversified portfolio of infrastructure projects with relatively stable & long term income streams

(42/n)
▪️Debt resolution for GMR Warora Energy Ltd approved and adopted
▪️Confirmed linkage from Coal India Ltd. for entire contracted capacity already in place