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Sadbhav Engineering Ltd.

BSE: 532710 Sector: Infrastructure
NSE: SADBHAV ISIN Code: INE226H01026
BSE LIVE 15:50 | 18 Aug 268.00 -2.90
(-1.07%)
OPEN

272.00

HIGH

273.10

LOW

267.05

NSE 15:31 | 18 Aug 268.70 -2.05
(-0.76%)
OPEN

272.55

HIGH

272.55

LOW

268.60

OPEN 272.00
PREVIOUS CLOSE 270.90
VOLUME 26360
52-Week high 350.90
52-Week low 220.00
P/E 23.63
Mkt Cap.(Rs cr) 4,599
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 272.00
CLOSE 270.90
VOLUME 26360
52-Week high 350.90
52-Week low 220.00
P/E 23.63
Mkt Cap.(Rs cr) 4,599
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Sadbhav Engineering Ltd. (SADBHAV) - Chairman Speech

Company chairman speech

Dear Stakeholders

Over several years of perseverance Sadbhav Engineering Limited has anchored itself asa pillar in the field of engineering & infrastructural development. Dealing withmyriad aspects of engineering construction and infrastructural developmental activitiesacross transport mining and irrigation sectors in India; today Sadbhav has successfullyconstructed more than 7300 Lane Kms. of Roads and Highways (both National and StateHighways) while 2300 Lane Kms. are under various stages of construction. But amidst allthis your company has been responsible with its active contribution towards the societyand environment. It has always believed in connecting life and enhancing its quality andwill continue to do so with the same zeal in future.

It therefore gives me a great pleasure to present the financial report of yourcompany for the year 20152016. Given the present economic scenario in India and in generalover the world your company has continued to perform well on the outset. Sadbhav is acomposite business which provides it the efficacy to create a stable equation. Withvarious implications towards 'Make in India' policy being the face of developmentalrevolution huge investments pertaining to all the segments are flowing in the directionof Indian economy. The all-important reform of Goods and Service Tax (GST) also no longerhas remained a mere legislative limbo but has been approved to be implementing from thenext financial year. With a special focus towards infrastructure it has burgeoned thesector and converted them into imperative for a cumulative growth towards excellence. TheUnion budget has allocated Rs 2.21 lakh crore for the entire infrastructure sector. Suchopportunities have propelled the augmentation of the present circumstances in favour byincreasing the pace of projects being sanctioned for the construction of highways. Alsoin the Budget roads have been earmarked Rs 97000 crore with a plan to award 10000 kms.of new road projects in 2016-17 including Rs 19000 crore for rural roads. It thereforehas had a great impact on the order book of your company while setting a standard for aresult oriented performance. Your company has created value addition to previously heldimportant portfolios by grabbing various important contracts and projects. With an aimaccentuate its name with overall development your company creates new opportunitieswithout compromising on work quality and punctuality.

Sadhbhav Engineering Limited has engaged itself in Engineering Procurement andConstruction (EPC) business for Transport Mining and Irrigation sector. Hence yourcompany has proudly reached a net worth of Rs 1471.46 crores which reckons for a plunginggrowth. The order book stands at staggering Rs 7487.33 crores with presence in 11different states as on 31st March 2016. Your Company achieved success with a standaloneturnover of FY 16 at Rs 3186.25 crores. Your company has been a regular payer of dividendsin the last 14 years with Rs 14.45 crores as the Divend pay-out for FY16. The standalonebusiness has displayed profits since its inception in 1988. Sadbhav has strong in-houseintegrated execution capabilities with highly qualified human resource and state-of-theart equipments. Our Net Profit rose up to 17.57 % and Profit after Tax stands at Rs 133.71crores. The net worth of your company rose from R 125.4 crores in 2006 to a solid R1471.5 crores. These figures are an outcome of our dedication and focus towardsdelivering the best.

With an increase in the order book by 19% (CAGR 20062016) this current financial year55 % of Sadbhav's revenues are derived from the Transport segment which includes theupheaval of roads and highways. This development is executed on Build Operate andTransfer (BOT) through Sadbhav Infrastructure Project Limited (SIPL). Your companycurrently executes 15 EPC contracts. With a captivating order book status of Rs 3692.14crores it contributes to 1.8 x of the current year's transport revenue.

The overall contribution of irrigation and mining sector to sales ratio is 19% and 26%respectively. Providing a good revenue visibility your company already has 20 on-goingprojects with the order book status of R 1441.93 crores as on 31st March 2016 whichtranslates to 2.7 x of FY16's irrigation revenue. Similarly during this financial yearorder book status for mining sector stands at the valuation of R 1974.76 crores whichtranslates to 4.7 x of the revenue with 11 on-going projects.

Sadbhav's philosophy envisages the attainment of the highest levels of transparencyaccountability and equity in all facets of its operations and in all its interactions.Through this it achieved a plethora of projects. These were optimally executed due to awinning alchemy of our Engineering and Management staff.

Your Company believes that the best way to give back to the society is in the form ofeducation. It has the potential to transform the lives of both current and futuregenerations. Hence we have undertaken the Corporate Social Responsibility (CSR) of'promotion of education' and girl-empowerment by conserving and renovating the governmentschool in Chakkarpur Gurgaon Haryana and development of convent school for girls inInsanpur Ahmedabad.

'Quality is an unending quest an ideal to be pursued constantly. It begins in themind extends into systems and processes and finds its expressions in the products andservices and consequents as a reliable solution in the hands of the end users.' Thereby Itake this opportunity to thank every stakeholder of Sadbhav Engineering Limited who playsan important role in establishing our ground in contributing towards building a nation. Wealso uphold our appreciation for our customers shareholders lenders and customers forjoining us in this continuous effort to make a difference. Hence on your as well as onbehalf of the Board of Directors I laud the support extended by the employees of SadbhavEngineering to exhibit yet another exuberant display of impressive performance.

I encourage them to keep pursuing our objective of binding trust in the capabilities ofone-self and the team during FY 2016-2017. I would like to thank you all for yourconstant and esteemed presence and congregated interest in the Company.

Regards

Vishnubhai Patel