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Sadbhav Infrastructure Projects Ltd.

BSE: 539346 Sector: Infrastructure
NSE: SADBHIN ISIN Code: INE764L01010
BSE LIVE 15:24 | 22 Sep 93.00 -1.00
(-1.06%)
OPEN

94.00

HIGH

96.95

LOW

92.60

NSE 15:53 | 22 Sep 95.20 0.70
(0.74%)
OPEN

94.55

HIGH

97.50

LOW

94.00

OPEN 94.00
PREVIOUS CLOSE 94.00
VOLUME 646
52-Week high 120.40
52-Week low 81.05
P/E 86.11
Mkt Cap.(Rs cr) 3,276
Buy Price 93.00
Buy Qty 21.00
Sell Price 96.90
Sell Qty 50.00
OPEN 94.00
CLOSE 94.00
VOLUME 646
52-Week high 120.40
52-Week low 81.05
P/E 86.11
Mkt Cap.(Rs cr) 3,276
Buy Price 93.00
Buy Qty 21.00
Sell Price 96.90
Sell Qty 50.00

Sadbhav Infrastructure Projects Ltd. (SADBHIN) - Chairman Speech

Company chairman speech

Dear Shareholders

I am very much delighted to present the first financial report of your company postthe listing of your company on BSE and NSE w.e.f. 16th September 2015. At the onset Iwould like to thank each and every shareholder of our Company who has shown utmost trustand confidence on the business model its management and its business strategy. In a verychallenging global environment the IPO was over-subscribed by 2.327 times. Your companyraised Rs 4250.0 million by way of primary issuance of shares and Rs 666.6 million by wayof offer for sale (OFS) by Selling Shareholders. Your company is the first roads andhighways BOT Company in India to be listed on Indian stock exchanges.

Sadbhav Infrastructure Project Limited (SIPL) a subsidiary of Sadbhav EngineeringLimited endeavors' at all times to achieve the highest performance standards in theindustry and an unchallenged leadership position across all segments in which we operate.We have been entrusted with a considerable number of projects focusing on the developmentoperation and maintenance of highways roads and other relative aspects. We have observeda flourishing growth and success rate since SIPL's incorporation. Your company contributesactively towards the society and environment in various measures. With an optimistic viewto continue for many years it gives me immense pleasure to present the financial reportof your company for the year 2015-2016.

It is known that due to unrest in the global economic scenario the organizations goalsare not being realized in a complete manner. Though the strengthened position of marketsin India has brought a reform in the execution of national level policies. This has giventhe Indian infrastructural parameter a boom. It has led your company to hold some of themost important contracts and projects simultaneously creating a value for its investors.

As a company with a focus on providing high - quality construction work we arepre-qualified on an annual basis to bid either directly or through joint ventures forDBFOT projects of values up to Rs 26500 million by the NHAI. Structured with presenceacross the entire road sector value chain we are involved in the development operationand maintenance of national and state highways and roads in several states in India namelyMaharashtra Rajasthan Gujarat Karnataka Telangana Haryana Madhya Pradesh and bordercheck posts in the state of Maharashtra. All of our projects are implemented and heldthrough special purpose vehicles (SPVs) including joint venture entities.

With our expanded and selectively diversified portfolio of BOT projects located in highgrowth states and important corridors we currently have a portfolio of 11 BOT projectsout of which 8 are fully operational 1 is partially operational and remaining projectsare under advanced stages of construction. We have 8 NHAI projects and the other 3 arefrom state authorities. Our operational projects cover approximately 2207 lane kms withtotal project costs of Rs 82132.0 million and the projects under construction cover of744 lane kms with the total project costs of Rs 19476.0 million. Your company has beendeclared LI for 2 new HAM projects as on 31st March 2016. As on 31st March 2016 ourmarket capitalization stood at Rs 35926.9 million.

In addition to above your Company has already signed SPA for acquisition of 74% stakein Mysore Bellary Highway Private Limited (MBHPL) from its parent company (SadbhavEngineering Limited). During 2015-16 your company had completed the following activitiesto improve its financial position -

• Completion of acquisition of 47% stake in Dhule Palesner Tollway Limited therebyincreasing its stake to 49% and SPA signed for balance 51% stake.

• Completion of acquisition of 20% stake in Ahmedabad Ring Road InfrastructureLimited thereby increasing its stake to 100% from 80%

• Sale of economic interest of 20% in Mumbai Nasik Expressway Limited to BIF IndiaHoldings Pte. Ltd. for Rs 720 million and repayment of loans amounting to Rs 174.72million.

• Completion of refinancing of debt in Dhule Palesner Tollway Limited and Nagpur -Seoni Express Way Limited with a view to improve the position of the cash flow. Yourcompany is currently in the process of refinancing its debt in other operational SPVs.

We generate revenues primarily from toll collection user fee and annuity receipts.SIPL has a provision for advisory and project management services for all its projects.Hence our consolidated total income from operations and standalone income from operationsfor financial year ended 31st March 2016 stood at Rs 7421.96 million and Rs 857.97million respectively. We possess a significant benefit from more than 25 years ofexperience of and relationships established by SEL (our corporate promoter) with itsrecord execution of projects in the construction activities in the transport mining andirrigation sectors.

I feel extremely privileged to announce that all of this would not have been possibleif we at SIPL did not have a strong team of

Engineering and Management and fcv Project staff. A comprehensive expertise in the formof upcoming talents of corporate fl&fl world was brought to the table. We through ourHuman Resource department have ensured ’wfflrai that our employees gain ampleopportunities for 'HH both personal and professional growth.

Therefore I take this and many mo re opportunities to thank every stakeholder of SIPLwho play an important role in building our confidence.

We also place on record our appreciation for extended and undeterred support showntowards the company by our customers shareholders lenders partners and vendors.

With your continued interest and presence in the company's working I thereby as wellas on behalf of Board of Directors whole heartedly pledge to further strengthen marketposition and increase contribution to infrastructural needs of the country in thefinancial year of 2017.

Thank you.

Vishnubhai Patel