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Sadbhav Engineering Ltd.

BSE: 532710 Sector: Infrastructure
NSE: SADBHAV ISIN Code: INE226H01026
BSE LIVE 14:33 | 21 Nov 334.00 17.10
(5.40%)
OPEN

317.00

HIGH

339.70

LOW

317.00

NSE 14:18 | 21 Nov 335.00 17.50
(5.51%)
OPEN

317.00

HIGH

339.70

LOW

317.00

OPEN 317.00
PREVIOUS CLOSE 316.90
VOLUME 47172
52-Week high 350.90
52-Week low 256.00
P/E 27.33
Mkt Cap.(Rs cr) 5,731
Buy Price 333.55
Buy Qty 199.00
Sell Price 334.00
Sell Qty 41.00
OPEN 317.00
CLOSE 316.90
VOLUME 47172
52-Week high 350.90
52-Week low 256.00
P/E 27.33
Mkt Cap.(Rs cr) 5,731
Buy Price 333.55
Buy Qty 199.00
Sell Price 334.00
Sell Qty 41.00

Sadbhav Engineering Ltd. (SADBHAV) - Chairman Speech

Company chairman speech

Dear Stakeholders

Sadbhav Engineering Limited (SEL) is not just an organisation but a process by whichdreams became realities and experienced visions became dynamic achievements. True toGordon Hinckley's wise words Sadbhav believes in hard labour to prosper as one of themost trusted names in infrastructure. With a presence in 14 different states and multitudeof aspects in Engineering Procurement and Construction (EPC) business for TransportMining and Irrigation sectors in India; over past 29 years SEL has widespread its reachand also expertise itself with the complexity of engineering work. In last year yourCompany has also received an appreciation letter from National Highway Authority of India(NHAI) for its pace of work in India's first smart expressway project i.e. EasternPeripheral Expressway project. We are proud to be associated with this landmark project ofIndia. These achievements have formed a part of a holistic combination of dynamic growthstructure and active responsibility towards our commitment to the society and environment.Your company since its inception has maintained an honest principle of sharing itssuccess with all its contributors.

It therefore gives me an immense pleasure to present to you the financial report ofSadbhav for the year 2016-2017. Infrastructure has been garnered as one of the key focusareas with augmentation of policies such as 'Swadeshi' or Make in India. This hasfurthered the developmental revolution with massive indulgence of global markets inengineered constructions. Therefore such opportunities have propelled our presence andreflected on the order book of your company Spread as a network channelized intoaccentuating each and every stem Your Company has created new opportunities for itselfwhile retaining its quality in work and delivering an outstanding result.

The dedication and focus towards reaching greater heights has profited your companysince its inception to satiate every contributor by paying regular dividends over the last15 years. Your Company has come a long way from its initial listing of equity shares onBombay Stock Exchange (BSE) and National Stock Exchange (NSE) in 2006 with a marketcapital of ' 201.60 crores to a market capital of ' 5236.34 crores as on March 31 2017.Between 2006 and 2017 Net revenue of your

company has increased at a CAGR of 25% p.a. Net profit has increased at a CAGR of 27%p.a. Project Costs of BOT assets have increased at a CAGR of 32% p.a. and market cap hasincreased at a CAGR of 34% p.a. during the same period. With focus of Government of Indiaon infrastructure projects your company is poised to achieve far greater success thanalready achieved in past.

With a well diversified and healthy balance order book of ' 7683.42 crores (excludingL1 of ' 1575.00 crores) as on March 31 2017 which translates to order book to sales ratioof 2.37x; your Company is poised to grow it further with having prequalification forproject costs of upto ' 2374.4 crores in NHAI EPC projects.

During 2016-17 Transport segment contributed 76% of revenues which includes theconstruction; upgradation of roads and highways; construction of metro projects; and muchmore. Your Company till date has constructed over 7551 lane kilometres. With acaptivating balance order book status of ' 4996.89 crores (excluding L1 of ' 1575.00crores) I am confident that growth for next few years shall be driven by the roads

and highways segment. Irrigation segment has a balance order book of ' 989.94 crores ason 31st March 2017 translating to 2.2x of FY17's irrigation revenue with the projectsunder canal construction work it reached over 656 kilometers. Projects pertaining toexcavation of over 501 mn cubic meters and balance work order for mining segment ofSadbhav stands at ' 1696.60 crores translating to 5.3x of the revenue.

Strong in-house integrated execution capabilities with highly qualified human resourceand state- of-the art equipments made gross block of fixed assets stand at ' 675.85 croresas on March 31 2017. A diversified and dynamic approach towards all our contracts andprojects has created value addition to important portfolios along with the enhancement inreturns of the previously held projects.

With all these I am proud to say that despite various challenges in the sector overlast 10 years your company has successfully completed construction of all 11 BOT assetsin first set of the portfolio. For 12th BOT assets MBHPL has already applied for CoDcertificate. With this experience we are confident to achieve completion of the

7 under-construction HAM projects also within the schedule timelines. SIPL oursubsidiary has won highest number of HAM projects till date from NHAI. Also SIPL has beenable to achieve financial closure of 5 projects and financial closure for balance 2projects is in progress and shall be achieved before the scheduled date. Cashflow positionof SIPL has improved substantially in 201617 as compared to 2015-16 due to completion ofrefinancing of debt in various SPVs although the impact of demonetisation was felt on thetraffic volumes from December-16 to March-17.

Travailing to obtain success as an unmitigated result is achieved when passions andskills are engaged with excellence in managerial abilities. This conflation of ourEngineering and Management staff has brought us to the stature a perpetual stream ofachievements which flow in tranquillity of satisfaction from advocating highest levels oftransparency accountability and equity in all facets of its operations. A greatsynchronization between the organization and individuals in terms of interactionrealized into attainment of growth in heaps and bounds.

Essential element of conviction commitment and credibility present in ourorganizational structure form an integral for delivering better outcomes: mapping thoseuncharted routes where many ventured but Sadbhav attained. Thereby I take thisopportunity to thank each and every stakeholder of Sadbhav Engineering Limited who playsan important role in spreading our roots to shape the nation of tomorrow and by tomorrow.We also uphold our appreciation for our customers shareholders lenders and vendors forjoining us in this continuous effort to diversify and succeed. Hence on your as well ason behalf of the Board of Directors I congratulate a congenial support extended by theemployees of Sadbhav Engineering to unveil yet another copious display of spectacularperformance. I encourage them to keep building trust in the capabilities of one-self andthe team. I would like to thank you all for your constant and esteemed presence andcongregated interest in the Company.

Regards

Shashin V. Patel