2015-16 was a year of contrasts. On the one hand we had the global economy mired inuncertainty and volatility. On the other
India delivered a standout performance as the fastest growing large economy reinforcedwith policy support. The Indian economy has been steadily moving towards greaterstructural strength and fiscal efficiency helped in no small measure by the crude pricecrash and deftly controlled Government expenditure. The Government maintained momentum byunveiling multiple new initiatives like Start Up India Stand Up India and Digital Indiain addition to its focus on Make in India and Ease of doing Business. These initiativesare expected to come together and provide stimulus to the Indian economy and accelerategrowth
2015-16 was a year in which ITNL braved various challenges and came out stronger andwiser. As India's infrastructure sector continues to be at the crossroads we too havefaced our fair share of angst. Despite the economic slowdown and hardened lendingscenario we managed to stand firm. We also ensured that construction progressed as perschedule and completed three highway projects and eight border check posts. We aredetermined as ever to deliver consistent and sustained value for our shareholders
We are growing stronger each day with a constant focus on innovation and quality. Withintrinsic strengths of project execution and our engineering proficiencies we have anoptimistic and sustained commitment to build value for the nation
India's infrastructure development is set to accelerate supported by the underlyingcommitment that extra fiscal allowance will be directed primarily into infrastructurespend. Road transportation has gradually increased over the years with improvement inconnectivity between cities towns and villages in the country. The Union Budget 2016 hasproposed a high budgetary allocation for the infrastructure sector to give a boost toinfrastructure and investment with a major focus on roads alongside railways and ports.Plan allocation for 2016-17 in the roads and highways sector has been enhanced by around24%. Over the last three years allocation to roads and highways has increased at a CAGRof around 33% considering the importance of this sector.
The target for national highways construction has been set at 15000 km during 2016-17compared to around 4400 km and 6000 km constructed during 2014-15 and 2015-16respectively. The Ministry of Road Transport and Highways has undertaken the developmentof about 7000 km of national highways under the Bharatmala Pariyojana at an estimatedcost of Rs. 80000 Crore in consultation with state governments. The long-term outlook forthe infrastructure sector appears satisfactory on the back of major investment expectedboth from the Government and Private sector. Our long and impressive track recorddiversified project mix and strong order book augur well for the Company. There willalways be new challenges and new hurdles but we are geared to capitalize on theopportunity that each such situation will usher in
During 2015-16 consolidated revenues increased by 28% from Rs. 6828.22 Crore in2014-15 to Rs. 8732.03 Crore due to an increase in construction toll and other operatingearnings. The EBIDTA increased from Rs. 2465.78 Crore in 2014-15 to Rs. 3235.39 Crore in2015-16 showing a growth of 31% due to higher construction margin. Debt equity ratio asat March 31 2016 on a consolidated basis stood at 4.08
The Company is widening its geographic footprint by actively foraying into globalmarkets. With global economies gradually returning to an encouraging growth path theglobal infrastructure landscape is expected to improve. Our confidence to do well globallystems from a diversified mix of assets across infrastructure segments and healthyoperational cash flows. We are performing today while transforming for tomorrow
Rising to the Challenge
Our mission continues to be to complete each project before time by optimally utilisingour technological strengths and domain expertise.
The overall operational capabilities and competence in executing large scaleinfrastructure projects have enabled the Company to emerge as a leading infrastructureplayer. It has executed and delivered several projects for Governments and their relatedagencies allowing the Company to expand its pan India presence and establish a strongbrand name in the industry. The 42.06 km Thiruvananthapuram City Road Improvement Projectan iconic project got recognised as a great initiative by the United Nations in itsdocument on Urban Infrastructure Projects as well as by International Road Federation forthe best project in the world in the category of urban mobility. The order book whichstood at around Rs. 14625 Crore as on March 31 2016 is spread across states and includesboth annuity and toll projects
This is despite the difficult external environment where operationally and financiallythere was significant pressure on the infrastructure companies. ITNL has remainedresilient on the strength of its balance sheet and execution strength where we were ableto withstand the headwinds commendably
We will continue to leverage our inherent strengths and expand our horizons to capturea larger share of the infrastructure opportunity and be seen as a preferred infrastructurepartner. Our passion professionalism and perseverance give us an exceptional futureoutlook. Our objective is to drive innovation across each aspect of our business and makethat an integral part of a sustainable approach
We are hopeful that the current issues that the industry is facing related to banklending land acquisition and multiple disputes will be progressively solved as theGovernment embarks on its ambitious agenda of infrastructure creation. We have a promisingroadmap ahead given the economic potential of India and the intent of the government bothat a vision level and seriousness of implementation from a regulatory and administrativestandpoint
We focus on maintaining high safety levels at our construction and operational sites.During the year under review we obtained renewed certifications for QMS andEnvironmental Health and Safety Management System (EHSMS- ISO 14001:2004 and OHSAS18001:2007) and appreciation for the level of implementation and conviction shown. Wehave adopted the ESPF format of project screening for all our new project bids. Thesecertifications ensure that the Company also has an environmentally and sociallysustainable business model in the long run
We are committed to build strong lasting relationships with the communities where weoperate and foster the creation of shared prosperity through empowerment and development.Employees are the soul of the company; and our performance has been driven by theircommitment and perseverance. Honest hard work a progressive attitude and adaptability bymotivated members of the ITNL family have been the keys to the growth of the Company. Aswe move forward we intend to carry forward our legacy by creating standards in qualityexecution and high degree of engineering skills resulting in enhanced value creation forour shareholders
I would like to thank shareholders for their support and encouragement during the year.