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Kalpataru Power Transmission Ltd.

BSE: 522287 Sector: Infrastructure
NSE: KALPATPOWR ISIN Code: INE220B01022
BSE LIVE 15:40 | 23 Aug 359.15 9.50
(2.72%)
OPEN

350.00

HIGH

365.00

LOW

348.70

NSE 15:40 | 23 Aug 360.15 9.85
(2.81%)
OPEN

346.05

HIGH

364.00

LOW

346.05

OPEN 350.00
PREVIOUS CLOSE 349.65
VOLUME 2070
52-Week high 375.00
52-Week low 208.00
P/E 20.04
Mkt Cap.(Rs cr) 5,511
Buy Price 0.00
Buy Qty 0.00
Sell Price 359.15
Sell Qty 60.00
OPEN 350.00
CLOSE 349.65
VOLUME 2070
52-Week high 375.00
52-Week low 208.00
P/E 20.04
Mkt Cap.(Rs cr) 5,511
Buy Price 0.00
Buy Qty 0.00
Sell Price 359.15
Sell Qty 60.00

Kalpataru Power Transmission Ltd. (KALPATPOWR) - Chairman Speech

Company chairman speech

We continue to scout for new business avenues though only under our existingdiversified umbrella. Our quest for geographic expansion yielded rich results withsuccessful foray into Malavi Afghanistan Botswana & Mauritania.

Dear Shareholders

It gives me immense pleasure to connect with you through this 35th AnnualReport of our Company. The Indian economy has shown signs of resilience amidst globalslowdown. Despite twin consecutive monsoon deficits the Government has rightfullyincreased its focus towards rural economy as well the infrastructure projects. The UnionBudget 2016 increased its capital expenditure allocations by 3.9% to Rs. 2470.2 billionwhich shall trigger new infrastructure projects. The Government’s Discom rescuescheme UDAY (Ujwal Discom Assurance Yojna) aims to address perennial issues clogging thepower sector for long. It can empower the Discoms to break-even in next 2-3 years. TheGovernment needs to intensify impending structural reforms in order to enhance the ease ofdoing business in India. Forecast of a good monsoon coupled with sustained foreigninvestments can add the necessary fillip to country’s socioeconomic development.

Despite beginning FY16 with moderate order book we stayed focused onenhancingourprofitabilityandachieved it through further strengthening of our costleadership and speedy execution prowess. During the year our standalone revenue declinedby 1% at Rs. 4364.6 Cr. and consolidated revenue grew by 3% at Rs. 7380.4 Cr. OurEBIDTA during the year was Rs. 467 Cr. and we have managed to improve our EBITDAmargin to 10.8% in FY16 from 9.8% in FY15 attributable largely to operationalefficiencies. As compared to FY15 our PAT grew by 20% at Rs. 199.5 Cr. in FY16. Duringthe year we have received orders worth Rs. 7450 Cr. in KPTL.

We have always believed in continuous small and meaningful changes yielding long-termresults. We have undertaken various transformational initiatives the initial results ofwhich get reflected in our FY16 performance.

Business Approach

• Long term approach on sustainability with a clear focus viz. Capex inmanufacturing capacities international assets etc.

• Focus on large-sized margin-accretive orders adding sustainably to ourbottom-line

• Successfully forayed into new geographies: Malavi Afghanistan Botswana &Mauritania

Enhancing E3ciencies

• Modernization of Gandhinagar plant has led to savings in conversion cost

• Enhanced capacity of our Raipur plant to rationalize & optimize the cost ofproduction

• Processes and systems further strengthened through strict adherence to SAP &SOP (Standard Operation Processes)

HR Initiatives

• Accelerated our team building efforts by adding talent across key leadershiproles in T&D segment

• Re-aligned existing roles and functions for gainfully deploying our humancapital

• Proud to be a ‘Great Place to Work’ enterprise with an e3ective 360degree feedback

• Leadership development programmes trainings etc. stemmed to lift talent poolmorale

New Projects Snapshot

• Increased width of PQ’s in substation business & Railwayelectrification with expansion into new geographies

• Significant growth in T&D domestic orders with PGCIL & SEBs

• Significant increase in order book of railways & pipeline division

• Won third transmission line BOOM project from REC through tariff basedcompetitive bidding process

In our subsidiary JMC Projects we are speeding up execution of legacy projects whilescouting for new margin-accretive projects. All four BOOT projects are operational on fulltoll basis. During FY16 its sales grew by 3% to Rs. 2483.7 Cr. The operatingprofit improved by 15.1% at Rs. 265.7 Cr. in FY16 over FY15. The net profit grew by 37% toRs. 41 Cr. in FY16 as compared to last year. At the end of FY16 JMC Projectsstandalone order book stood at Rs. 6200 Cr.

Going ahead we expect sizable orders from Power Grid Corporation of India Limited(PGCIL) & SEBs for our domestic transmission business. On the international front wehave lot of opportunities in African & CIS market with huge order in pipeline. Wecontinue to maintain our focus on Quality Assurance & Safety Standards.

The Government plans to invest Rs. 8.56 trillion between FY16 and FY20 onrevamping Indian Railways through improved infrastructure communication and passengersafety. India’s gas production is expected to touch 90 Billion Cubic Metres (BCM) in2040 from 35 BCM in 2013 signifying tremendous opportunity in laying new pipelineprojects. There lies a huge scope of development of various infrastructural projects inIndia. We continue to bid and win projects which enhance our operational efficiency andleverage our execution skills.

I take this opportunity to express my gratitude to all the stakeholders for theirunwavering belief in Kalpataru Power Transmission Limited and also extend my gratitude toour ‘human capital’ for their passion dedication and valuable contribution.

Mofatraj P. Munot

Chairman