I am happy to present the 31st Annual Report of your Company for FY 2016-17.
I am pleased to share with you the fact that your Company is progressively building abright future on earlier hard work. Management is taking all the necessary steps tostrengthen all elements of your Company so that it is prepared to withstand the futurechallenges. Your Company has consolidated & fortified its position in strategicsectors such as highways urban infra complex buildings & industrial units etc. Ourinternational aspirations & delivery commitments have helped us firm up and graduallyspread our footprints in select global geographies. Today the order book stands justlydistributed in Infrastructure (Urban Infra Water & Area Development etc.) Buildings(Housing Commercial Institutional Hospital etc.) and Industrial segments.
At a macro-economic level the Indian economy has proven that it is resilient enough toabsorb ups & downs resulting from socio-political incidences & global turbulences.While India's GDP growth rate stands at about 7.1% during FY 2016-17 various financialinstitutions have indicated that GDP growth rate shall touch 7.5% in FY 2017-18. Efficientimplementation of progressive reforms such as introduction of GST formation of RERAfurther easing of FDI norms in construction etc. are expected to foster healthy growth.Increased infrastructure investment is going to be an important source of increasedconsumer demand through job creation. Currently the Union Budget sets infrastructurespending at about 8% of GDP with an aim of increasing it to about 10-11%. Undoubtedlyinfrastructure is a priority sector for the government. Government needs to strengthen theregulatory mechanism in a fair manner so that the private sector adds more value to thegrowth story of our country.
During the previous fiscal year benign oil and commodity prices have helped improveour country's public finances. Housing urban infrastructure & area developments arefundamental for our country's growth and well-being. Finance Ministry has allocated about` 4 Lakh crore for creating & upgrading our country's infrastructure in FY 2017-18out of which an allocation of about ` 67000 crore for the national highways in FY2017-18 about 16% higher than previous year. Several water & city upgradationopportunities are coming up under various government schemes such as AMRUT Smart
Cities Mission etc. Under RERA the real estate & construction community isanticipated to get further organised providing a much-required boost to the sector. Someof the leading global corporations have committed to invest & establish theirmanufacturing set-ups in various parts of our country under Make in India programme.
Our ambition is to contribute actively in these programmes and evolve as a muchstronger efficient & a preferred contracting partner. Your Company is continuallyimproving processes and performance in critical areas like design & engineeringexecution quality project monitoring etc. This year we have taken up a businesstransformation exercise through SAP. World-class SAP ERP system shall be up & runningby this year. Technology though capital intensive is helping us significantly toprogress towards our goals.
Having said this we also understand that taking up new challenges is a breathtakingexercise. Incessant issues such as pressure on margins rising costs scarcity of reliablemanpower & their availability are pinching us. Following approaches in addressingthese issues shall strategically build a better future:
1. Overall strengthening of technical competence & capability with special focus onthe entire value chain of construction projects.
2. Enhancing customer satisfaction levels to become a preferred contractor &thereby securing repeat orders.
3. Strong relationship-building with consultants specialists partners vendorssuppliers etc.
4. Technological upgradations & full leverage of IT-enabled applications.
I am glad to share with you the progress we have made so far on the execution of ourstrategy. Order inflows clocked in at ` 3200 crore during the year. The unexecuted OrderBook at the year-end stands at ` 7000 crore. This provides to continue with a healthyrevenue and margin visibility ahead. Total Income from operations had a marginal decreaseof 3% over previous year to ` 2342.7 crore. Profit after Tax stood at
` 59.2 crore up 35% from ` 43.9 crore last year.
The new accounting standards Ind AS have become effective from April 1 2016and the financial statements presented in this Annual Report comply with these newaccounting standards.
It gives me pleasure to announce that your Company has recommended a dividend of ` 1.50per equity share on a face value of ` 10 per share for the year. The correspondingdividend during the previous fiscal was at ` 1 per equity share.
I place my sincere appreciation for the dedication commitment and hard work put in byour employees at all levels and look forward to receive their trust support andencouragement as we head for another challenging & exciting year. I also express mygratitude towards joint venture partners customers and business associates for theirrelentless support. Finally a big vote of thanks to all our shareholders for theircontinued belief in us.
|SHAILENDRA KUMAR TRIPATHI |
|CEO & Deputy Managing Director |