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A2Z Infra Engineering Ltd.

BSE: 533292 Sector: Engineering
NSE: A2ZINFRA ISIN Code: INE619I01012
BSE 00:00 | 20 Sep 10.30 0.71
(7.40%)
OPEN

9.65

HIGH

10.69

LOW

9.65

NSE 00:00 | 20 Sep 10.25 0.65
(6.77%)
OPEN

9.75

HIGH

10.70

LOW

9.40

OPEN 9.65
PREVIOUS CLOSE 9.59
VOLUME 33360
52-Week high 19.70
52-Week low 8.19
P/E 7.01
Mkt Cap.(Rs cr) 181
Buy Price 10.11
Buy Qty 1.00
Sell Price 10.30
Sell Qty 70.00
OPEN 9.65
CLOSE 9.59
VOLUME 33360
52-Week high 19.70
52-Week low 8.19
P/E 7.01
Mkt Cap.(Rs cr) 181
Buy Price 10.11
Buy Qty 1.00
Sell Price 10.30
Sell Qty 70.00

A2Z Infra Engineering Ltd. (A2ZINFRA) - Chairman Speech

Company chairman speech

It gives me pleasure to present before you the annual report for the fiscal year2017-18 wherein your Company continued to take progressive steps to bring it back on aprofitable growth path. During the said year we have made progress in reducing the debton the balance sheet and efforts are in line to reduce it further. In the flagshipdivision of Engineering Services we have achieved initial successes in our strategy to gointernational. Other divisions viz. Facility Management Services and Municipal SolidWaste Management bagged new projects in the market with some of them in completely newcustomer segments. On the whole there were many developments which make us hopeful aboutturning the corner soon in the near future. While I have shared some more of my thoughtsbelow I invite you to peruse the details shared in this re port on our performance andfuture outlook.

Overall economic scenario across the globe was fairly positive in 2017 both theadvanced and emerging economies expanded at one of the fastest pace since financialcrisis. In addition to the recovery in oil and commodity prices benefitting oil andcommodity exporting countries overall robustness in consumption and investment acrossmost parts of the world meant higher capacity utilizations upbeat jobs market and buoyantfinancial markets. This momentum is likely to sustain in 2018 as well. World Bank hasforecasted the global GDP growth to be 3.1 % in 2018 same as 2017.

Indian economy on the other hand was hamstrung because the structural reforms such asGoods & Services Tax (GST) Insolvency & Bankruptcy Code (IBC) Real EstateRegulatory Authority (RERA) etc. legislated by the Government in previous years wereimplemented in FY2017-18. In addition to this residual impact of demonetization carriedout in FY2016-17 meant that GDP growth in first half was quite muted. Flowever itrecovered in the second half with the last quarter growth of 7.7% meant India was onceagain the fastest growing large economy in the world and by a wide margin of 90 basispoints as compared to China. In FY2018-19 India is expected to maintain this pace andgrow at 7.4% - 7.6% as projected by Reserve Bank of India and a few other reputedagencies.

Indian Government's investments under NDA-2 rule in the infrastructure and the socialsector have played a huge role in the economic growth for the last four years withFY2017-18 being no exception. Your Company's business segments are in perfect alignmentwith the major thrust areas of this Indian Government in these sectors and where it hasreportedly been very successful. In the area of Power Supply the Indian Governmentachieved its target of 100% electrification of all inhabited villages 12 days ahead of the1000 day deadline announced by the Prime Minister (PM). PM has also advanced the deadlinefor 100% electrification of all household under the 'Saubhagya Yojana' from March 2018 toDecember 2019.The Swachh Bharat initiative has taken on the form of a movement with 402districts out of 712 have been declared Open Defecation Free (ODF) by June 2018. TheSwachh Sarvekshan survey has acted as a tool for motivation to many municipal corporationsand for large-scale citizen participation. It has pushed municipal corporations to adoptmodern solid-waste management methods to maintain cleanliness and sanitation so as toimprove their scores on the survey. On the telecom front. Government completed first phaseof its BharatNet program to link 100000 Gram Panchayats with 100 Mbps broadbandconnections in December 2017. Going further this initiatives is expected to connect all250000 Gram Panchayats with high speed broadband connectivity. Government's reforminitiatives and incentives for the real estate sector such as interest subsidy for lowcost housing RERA implementation approval for Real Estate InvestmentTrusts (REIT) etc.and continued demand from commercial and retail sector for high quality properties meansgreater market for organized facility management players. The Government is also workingon many more initiatives that are of significance to the Company such as Smart CitiesRenewable Energy Railway Station cleaning Beach cleaning etc. Given this scenario yourCompany is expected to benefit significantly in terms of higher business opportunities.

The Company made significant progress on the strategic realignment front however thereare many more milestones to achieve on this front before it emerges from the overhang ofthe past. Old projects and their execution continue to take away precious time effort andresources that could be devoted to exploiting the attractive business opportunitiesavailable in the market today. Nevertheless your Company has succeeded in breaking groundon a few frontiers in FY2017-18. In the PowerTransmission & Distribution segment itbagged a few substantial projects in Tanzania. Your Company's eco-friendly bricks brandedas 'Magic Brick' which enable 100% utilisation of waste in an innovative way have foundacceptance with Aligarh Municipal Corporation in Uttar Pradesh. Aligarh MunicipalCorporation was awarded India's Best Medium City in Innovation & Practices because ofthis initiative. Your Company has developed battery operated cycle which is the bestsolution for urban as well as rural area for pollution free economic way oftransportation. It has many advantages over other modes of commutation as a legallyallowed way of speedy commuting forteenagers in terms of Capex Opex and ease ofoperation. The Company has been selected by one of the top three food delivery aggregatorcompanies for use of its e-cycles and manpower supply services. Another innovationinstalled by the Company was the first bus-shelter-cum-green-toilet in Lucknow. It hasalso won many new orders for providing facility management and manpower supply servicesespecially in new business areas like Railway Station Railway Coach Factory and Beachmanagement in Karnataka.

As can be seen from our performance and the market outlook the Company is poised to dowell in the near future in the Facility Management Services and Waste Management space. Inthe EPC segment the focus will be on newer viable opportunities in the internationalmarket and in sideline manner in Indian Market. It will continue to focus on paring downthe debt through bank settlement process to improve balance sheet quality along withefforts to improve margins through new businesses. Even though this difficult journey isexpected to last a little longer we can clearly see the light at the end of this tunneland hope to touch the bright future soon. Finally I would like to thank all ourshareholders customers investors suppliers the exchequer and employees for theirsupport patience and belief in our long-term vision.

Best regards

Surender Kumar Tuteja

Chairman