It has been our practice to say things as they are be these good or bad withoutexaggeration or sugar coating. As your chief fiduciary I have no intention to depart fromthis practice. The hard fact is that FY 2018-19 has been a bad year for your Company.
Last year I had written to you that our two large projects got cancelled. The financialperformance of the Company during the year under review is affected on account of this.Moreover due to negative approach of the Public Sector Banks for infrastructure sectorand EPC Companies the industry is facing severe financial crunch.
Due to non-support of banks in issuing bank guarantees the Company is not able to bidfor any new work during the year under review. At present the Company is doing maintenancework of road projects awarded to its SPVs. Even in such difficult time your Company isable to survive since the Company is not overleveraged due to conservative approachadopted while borrowing. The Company is confident to resolve the issues with its bankersin the coming financial year.
On Real Estate sector side also there is sluggish demand in the Mumbai MetropolitanRegion. The Company will decide to start its real estate projects once there isimprovement in the market.
performance Review: -The highlights of financial and operational performance duringthe year are: -
Total Income of ' 61.44 Crores
Net Loss after tax of ' 2.99 Crores
Earnings per share of ' (0.37)
Cash Earnings per share of ' (0.06)
Net worth of ' 476.15 Crores.
Outlook on Road Sector
India has the one of largest road network across the world spanning over a total of5.5 million kms. This road network transports 64.5 per cent of all goods in the countryand 90 per cent of India's total passenger traffic uses road network to commute.
The construction of highways reached 9829 kms during FY18 which was constructed at anaverage of 26.93 kms per day. The Government of India has set a target for construction of10000 kms National Highway in FY19.
India has a requirement of investment worth '50 trillion (US$ 777.73 billion) ininfrastructure by 2022 to have sustainable development in the country. India is witnessingsignificant interest from international investors in the infrastructure space.
The Government of India is expected to invest highly in the infrastructure sectormainly highways renewable energy and urban transport. The total National Highways lengthincreased to 122434 kms in FY18 from 92851 kms in FY14.
The Government of India is taking every possible initiative to boost the infrastructuresector.
India's National Highway network is expected to cover 50000 kms by 2019. NationalHighway construction in India has increased by 20 per cent year-on-year in 2017-18.
The Government of India has decided to invest '7 trillion for construction of new roadsand highways over the next five years.
Your Company is confident of getting new EPC road contracts in the coming fiscal and itwill help in improving top line and profitability of your Company. Moreover your Companyis expecting realisation of further claims in the coming year and the same will be used toreduce outstanding debt of the Company.
We believe in proactively preparing ourselves for achieving sustainable rapid growth byensuring timely availability of necessary resources - be it human resources financetechnology equipment infrastructure systems etc.
In the area of Corporate Governance your Company is committed to the highest standardsof probity transparency sustainability and corporate social responsibility.
I thank all the stakeholders for reposing confidence in our abilities and endeavoursand expect to receive full support in taking the Company to newer heights.