The past year continued to be tough for the Company due to the slowdown ininfrastructure sector and primarily owing to lower revenue generation on account ofslowdown in project execution the procedural formalities which in turn affected theturnover and profitability. The additional banking assistance was received only during thelast quarter of 2015-16.
Global growth continued to remain weak moderating to 2.4% during the year amidst thegrowing uncertainties in several economies across the world. The outlook remains muted asthe World Bank (based on Jan 2016) expects the outlook to remain challenging with globalgrowth projected to reach 2.9% in 2016 on the back of a modest recovery in advancedeconomies and stabilization amongst major commodity exporters.
Indias economic growth is expected to gradually moderate to 7.4% in 2016-17 from7.6% in 2015-16 with tepid external demand offsetting the pickup in domestic demand.Despite relative slowdown in the economy India is expected to remain the fastest growingeconomy in the world in the near term.
As already informed in our previous report 2014-15 the Company has restructured itsdebts. During the year most of the CDR Lenders opted to convert their Funded InterestTerm Loan (FITL) and sacrifice amount into equity. Further the promoters had infusedRs.389 crores as equity and redeemed the Rs.300 crores of preference equity as well asrepaid unsecured loans. By doing so the Company has strengthened its networth.
The outlook for the sector is gradually improving and the Company has bagged new ordersduring the 2nd half of 2015-16 which has strengthened its order book position. TheCompany is also targeting newer markets like Middle East and Africa where the Company ishopeful of bagging large orders with better margins.
Our order backlog is over Rs.2298 crs.
At this juncture I wish to express my gratitude and appreciation towards ouremployees customers business associates suppliers and bankers who have stood by usduring these trying times. Lastly I would like to thank our shareholders for theirunstinted support.
S R Ramakrishnan (DIN:00015839)