At Kalindee we faced a challenging 2012-13. Rather than merely wait for better timeswe worked harder with the objective to restrict the downtrend effectively and capitaliseon the uptrend whenever that happens.
Over the past year Kalindee consolidated and strengthened its position in theconstruction industry in Financial Year 2012-13. Your companys strategy of beingrelevant to the customer and providing holistic solutions continued to resonate withcustomers. It delivered tangible results for its business in the areas of optimizationtransformation and growth.
This is reflected in the comparatively better and well founded performance for FY 13.On a consolidated basis your company achieved revenue of Rs. 260.68 crores a growth of5.54% over previous year.
Your companys ability to deliver growth and sustain business momentum isattributable to its ability to
i) Remain relevant to its customers changing business needs.
ii) Balanced portfolio of services. Despite uncertain market and macro economicconditions in FY 13 your company was able to drive growth in the industry segments inwhich it operates.
Our ability to co-create industry-leading solutions with customers and help themleverage new technologies is gaining traction across all segments. This momentum isreflected in strong metrics. Innovation continues to be a major area of focus for yourcompany.
Your companys continued success is due to the dedication commitment andperformance of 500 energetic professionals who remain its biggest asset. Your companyplaces strong emphasis on the importance of value and ethics in the organization. The codeof conduct and value system is being re-iterated to all employees to ensure that there isa strong culture of transparency and good governance across the enterprise as it grows.Your company continues to focus on other aspects that are extremely important for thedevelopment and well being of its employees.
The leadership team of your company remains confident that 2013-14 will bring betteropportunities as technology plays an increasing role in the re-imagination andtransformation of many industries globally. As the trusted partner to many corporationswe believe our success will lie in being able to identify new growth engines. This willhelp us to sustain our momentum. However we must continue to ensure cost discipline at anoperational level while supporting diversified business growth.
At a time when technology is fast evolving and playing a bigger role to "grow thebusiness" I believe we have the opportunity to shape the future by investing aheadof the curve in building the right skills and developing opportunity in various areas.Your company is ready to anticipate and leverage the next big opportunity by identifyingtrends that impact business and society and shape them.
Your company was recognized by industry customers and the media for its performanceand leadership along many dimensions including overall financial performance humanresources sustainability and individual leadership.
Looking ahead to 2013-14 there are challenges in some markets with regard toregulatory changes. Your company remains conscious of these changes and will be takingsteps to ensure total compliance and also mitigate any risks arising from such changes.
On behalf of entire company and its leadership team I want to thank each shareholderfor their support and commitment to the company. It is the support of shareholders thathas helped make Kalindee among the valuable companies across its segment. I look forwardto your continued support as your company embarks on the next phase of its growth journey.
The just-concluded financial year marks the completion of the 29th year of our excitingjourney. In a period of about three decades time we have as an organization crossedfrontiers we had never imagined were possible. Most importantly we have proven that it ispossible to build a competitive organization by operating legally ethically and withfairness transparency and integrity. Along the way we have created jobs improvedlivelihoods and enabled our company to establish its presence in the global playing field.
In every way possible we have rewarded the people who have not only believed in thedream but have also played their part in keeping it alive. Looking back we take pride inwhat we have been able to accomplish so far.
However this journey has not been easy and we have encountered obstacles along theway. Time and again our resilience has been put to the test. We had to overcomechallenges that could have changed the fate of our organization. Be it game-changingtrends in technology industry and business models or regulatory challenges we had tosteer ourselves clear of turbulent waters many a time. This required us to transformourselves as an organization - to adapt to changing business environments and also thechanging business priorities of our clients.
It is times like these that have witnessed our organizational growth slowing down.Sometimes these slowdowns were also caused by reasons beyond our control. Hindsight givesus the luxury to realize these facts.
Our confidence takes firm roots in several aspects. Our new strategic direction isbeing received very well by our clients and analysts alike. We have witnessed earlysuccesses and the road ahead is both encouraging and promising. We have immense confidencein the capabilities of our biggest asset - our people. Every time in the past when we hadto dig deep within to pull ourselves out of turbulent times it is the passion commitmentand never-say-die attitude of our people that have helped us succeed. This time will be nodifferent.
Last but not the least we are confident that we will succeed because we are alearning organization. We are as committed to learning from our successes and rightchoices as from our failures and bad choices. We will continue to do what we are best at -fulfill our responsibilities towards all our stakeholders. We will leave no stone unturnedin doing what it takes to work with them and for them.
As we enter another financial year we look forward to receiving your continued trustand support.
KALINDEE TODAY IS AMONGST ONE OF THE MOST COMPETITIVE RAILWAY SECTOR COMPANY and wellpositioned in its operating field. And in this background your company has been able togarner a good work order position envy to similarly placed other companies. It is makingyour company move to go in for major structural changes in the companys managementset up. This landmark development is expected to pull your company to a different platformaltogether. We reiterate to say we reinforced our position as one of the Indias mostcompetitive Railway construction sector company. .
THE YEAR 2012-13 CAN BE SUMMED UP AS ONE OF GLOBAL UNCERTAINTIES.
The global economic environment turned adverse following the financial turmoil in theeuro zone questions raised about the US economy by rating agencies and the unfortunateTsunami in Japan. In India the Government was caught between the challenge of spurringgrowth and containing inflation which resulted in an economic slowdown. Besides theinflux of rupee depreciation from August 2011 has resulted in enhanced forex relatedcosts.
The combination of these factors impacted steel demand our critical user segment andhas impacted both our top line and EBIDTA which grew by only about 5% and 18% respectivelyover the previous year.
On the face of it the numbers do not showcase an encouraging picture of our working in2012-13 but there were some positive sparks which helped progressively de-risk ourbusiness from volatile external factors.
Further we widened our geographic footprint. The result was that the adverse externalenvironment notwithstanding sales volume did grow over that of previous year.
Despite a prevailing financial crisis in various global economies we enhanced ourliquidity through stronger relationships with public sector private and foreign banks.This strengthened our cumulative bank limits addressing our growing working capital needs.
India provides an interesting opportunity for Infrastructure Sector. Indian entitiesare adding product line by way of forward and/or backward integration so as to strengthentheir competitive advantage. Besides increased private consumption over the last decadeand making this route increasingly cost-effective India is expected to considerably speedup on its infrastructure projects over the next five years.
At Kalindee we are adopting a three pronged approach to grow volumes andprofitability.
Geographic diversification: We have plans to strengthen our presence in new and growingmarkets of neighbouring countries where public infrastructure is needed to be improved andstrengthened.
Strengthening relationships with suppliers: We built on our existing relationshipsbesides bringing new supply sources for key raw materials.
A 30-year old organization has readied itself to capitalise on emerging opportunitieswith the sectoral upturn.
During the current year an interesting volume-value play is expected to unfold whichmay strengthen our volumes and profitability.
In conclusion I would like to thank you for your continued trust in our Management andthe Board of Directors.
I also take this opportunity to thank our customers employees suppliers serviceproviders financial institutions and bankers for their support and role in thecompanys success.
R. D. Sharma
Chairman cum Managing Director