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A2Z Infra Engineering Ltd.

BSE: 533292 Sector: Engineering
NSE: A2ZINFRA ISIN Code: INE619I01012
BSE 00:00 | 07 May 4.19 0.14
(3.46%)
OPEN

4.15

HIGH

4.26

LOW

4.00

NSE 00:00 | 07 May 4.15 0.10
(2.47%)
OPEN

4.05

HIGH

4.30

LOW

3.95

OPEN 4.15
PREVIOUS CLOSE 4.05
VOLUME 153094
52-Week high 6.47
52-Week low 3.49
P/E
Mkt Cap.(Rs cr) 74
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 4.15
CLOSE 4.05
VOLUME 153094
52-Week high 6.47
52-Week low 3.49
P/E
Mkt Cap.(Rs cr) 74
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

A2Z Infra Engineering Ltd. (A2ZINFRA) - Chairman Speech

Company chairman speech

YourCompany isa known name in the Infrastructure Services space offering EngineeringProcurement & Construction (EPC) services to Power Telecom Water & Sanitationand other city Infrastructure projects Facility Management Services to the CorporateGovernment and Individuals; Municipal Solid Waste Management to urban local bodies and isalso generating power through waste-to-energy projects. It has established itself as aquality service provider in these businesses. In this financial report you will observethat we are now nearing the end of that distressed phase which has been challenging timefor all infrastructure companies including us. While the external environment continues topose problems at the macro level we believe the scenario for our industry remainspositive. I have shared some more of my thoughts on these conditions below and spokenabout the direction that we intend to take going forward.

After the expansion seen in 2016 and 2017 in global economy the world is startedfacing growth challenges in the second half of 2018. These challenges resulted in anarrest of the economic momentum for both the major groupings i.e. advanced economies andemerging economies.The concern areas for the world economy in 2019 and 2020will be thetrade spats between USAand China tightening liquidity falling business and consumerconfidence and structural issues in a few major economies. These are expected result in afall of global GDP growth from 3% in 2018 to 2.6% in 2019 and pick-up marginally in 2020to 2.7%.

Indian economy also has been facing similar growth challenges. The adverse global tradehas impacted the exports and the consumer demand in the domestic market has been badlyaffected due to the rural economy facing distress. On top of this sudden volatility inthe energy and FOREX markets in the second half and the start of liquidity crisis afterdefault by major player in financial segments further exacerbated the situation. As aconsequence of all these developments the economy grew only by 6.8% in FY2018-19 vs. 7.2%in the previous year and is with continued financial stress and slowing global economythe growth is likely to inch-up only by 10 basis points to 6.9% in FY2019-20.

There are however some developments in the broader economy and related to the Indiangovernment's investment plans that are highly positive for the Company.The announcementsof investing Rs. 100 Lakh crores in five years for the infrastructure sector and JalJeevan Mission to provide drinking water to all households are expected to createattractive business opportunities for infrastructure services companies like ours. Afterproviding electricity connectivity to all the households in the country the Government isexpanding the target to make 24x7 power available to them. After providing the basicinfrastructure government is focusing on reduction of AT&C losses in Power sectorwhich will further require significant capital expenses and new technologies like SmartMetering SCADA and O&M for long term. Being in this space as experienced player welook it as good business opportunity. The positive responses to the Swachh Bharat Abhiyanhave enabled the government to extend the focus of the scheme from ending Open Defecationto provision of total sanitation services to all citizens and improve the urban sanitationpractices. The announcement to ban single-use plastics is a step with dual purpose ofreducing environmental impact and also load on the waste management industry. Theever-growing Involvement and responsiveness of citizens to these initiatives hasestablished a new found cleanliness conscious among them and shows the growing demand forquality and clean physical spaces. This also translates into greater demand forprofessional housekeeping services by various segments of society who were hitherto notinterested in them. Hence new opportunity segments such as Facility Management Servicesfor Railway Coaches Beaches Residential Complexes etc. are becoming available to aCompany like ours. With the economy growing at a reasonable pace the demand for ourservices is likely to increase at a greater velocity.

Over the last few years we have made several adjustments to our strategic focus.Diversification in customer segments markets and offerings has been a key focus toensure we spread our risks. Our high exposure to the EPC business under the ES SBU is whataffected our performance over theyears. We have achieved many successes in this directionespecially with international expansion where we have now bagged projects in Tanzania andNepal. Resolution of the legacy issues in this business meant that our managementbandwidth was stretched and unable to do justice to the potential growth in the FMS andMSW space. I have shared above the kind of opportunities that are becoming available tous and with the problems in the EPC sector behind us we are now confident of exploitingthem to the fullest. Our financial position has also significantly improved with oursuccess in achieving reduction of loans but we will need some more time and effort onthis front reach a position of comfort. We will therefore continue our endeavors in thisarea.

Many of our innovative products are starting to make an impact adding to ourcontribution to the country and society that we do through our core service offerings.Your Company is also a major job creator which has thousands of people employed with it invarious capacities. We aspire to continue to make a difference to the stakeholders aroundus and do so profitably.This is going to be our continued focus. And I would like to thankyou all for your backing to help us do so.

Best regards

SurenderKumarTuteja

Chairman

.