It has been another stellar year for us at BS Limited and I am happy to present to youyour Company's performance highlights for the financial year 2014-15.
The year ushered in significant optimism after the new Government was formed at theCentre. Among the Government's several proactive initiatives Make in India is themost significant which aims to revive India's industrial and manufacturing sector andsubsequently the country's economy.
Currently a service sector driven economy India is gradually tipping its balancetowards the manufacturing sector. Consequently the manufacturing sector is expected toreach US$ 1 trillion in valuations by 2025. The sector's contribution to GDP presently at16% is also anticipated to rise to 25-30%.
In this backdrop BS Limited firmly believes that electricity is the biggest catalystfor economic growth and improving quality of life. Over the past year we embarked upon anintegrated programme to ensure optimal leveraging of opportunities to create value andcontribute towards nationbuilding.
We successfully commissioned the 765 kV Raichur-Sholapur project which wasinstrumental in the success of the country's One Nation-One Grid-One Frequencymission and are partners in accomplishing one of the largest operating synchronous gridsin the world. The project would generate Annuity Revenue for the Company over a period of35 years. BS Limited is also executing the prestigious 1200 kV Ultra-High Voltagetransmission line from Wardha to Aurangabad.
During the year we invested time and resources in development of an 'EmergencyRestoration System' for immediate restoration of collapsed transmission lines due tonatural calamities. Development efforts are underway for a mobile substation too tocomplement our ERT sector efforts.
We forayed into the Middle East and North Africa (MENA) region and set up a subsidiarynamed BS Limited FZE at the Dubai Airport Free Zone in United Arab Emirates. Thesubsidiary has generated United Arab Emirates Dirham (AED) 71.48 million revenues in itsfirst year of operation.
Keeping pace with consistent financial performance your Company has reported healthygrowth in 2014-15 with 15.26% increase in revenue over the last year to ' 2682.3 Croresrecording a 5-year CAGR of 25.16%. Operating Profit came in atRs. 295.3 Crores a 5-yearCAGR of 18.99%.
We recently announced a major acquisition of operative assets from four companies whichwill benefit us by enhancing our tower manufacturing capacity and EPC executioncapability. We are vertically and horizontally diversifying to benefit from economy ofscale and are foraying into railway electrification. Indian Railways plans to add 25000km of new lines by 2020 which augurs well for us.
Going ahead we are confident about achieving the pole position among the transmissionline providers in the country. We see demand for T&D lines only going up as the powergenerated at the plants need quick evacuation and dispatch through transmission lines. Wewill continue participating in tenders and partnering the Government in nation-building.
I would like to thank our stakeholders for their contributions to the Company'ssuccess. The Company's consistent good performance continues to reflect the determinationof my colleagues in taking operations to a new level. In the years to come we wish toemerge as a frontrunner in the transmission line segment and return value to ourstakeholders.
Chairman & Managing Director