Dear Fellow shareholders
The past year was power packed with swift profit gains development in the companybusiness model entry into new markets and international recognition. Integrity withinDhruv's workforce and a strong value system have been the torchbearers of our path tosuccess.
A team with strong technical prowess conducive economical playground and favourablefinancial policies have helped us realise the goals that we had set at the beginning ofthe FY. It is a matter of pride as I share our yearly performance and our vision for thenext year through this annual report.
FY 18-19 was challenging and exciting. It had its fair share of ups and downs but inthe end the result was worth all the efforts.
The first half of the year was formidable with the commencement of 9 new projects andsome extra expenses that had to be directed towards the IPO. While it affected our profitsin the first half the same were recovered smoothly in the later half with high ticketsize projects of MBIU and MORT&H.
Dhruv marked a record sales worth Rs. 66.28 crore.(gross). This is mainly due to thestatus of NHAI & MORT&H Projects which are at its peak as we speak. The companyrecorded gross profits of Rs. 11.12 crore and net profits (PAT) of Rs. 7.68 crore whichare 10.65 % and 11.63 % more than that of FY 2017-18. I am happy to share that the Companyhas earned an order book of more than Rs. 270 crore promising incremental profit growthand stable revenue for the next 3 years.
Thanks to the large budget provisions for infrastructure by the State and Centralgovernment our targeted sales order book and profits have been achieved comfortably.
Infrastructure as a sector is directly linked to the development of the country. Goodconnectivity through roads offers a strong boost to trade opportunities development andholistic growth of the country and its citizens.
Access to employment social health and education services make road network crucialin bridging the socio-economic gap and stimulating development.
Dhruv Consultancy has always believed in expansion and diversi-fication to aid innational development. With this as our goal the company has now started operations in thenorth-eastern part of India with one Detailed Project Report and one ConstructionSupervision Project.
These were unchartered waters for us where working is a challenge due to the terrainalthough profitability is high. But our team has stood by us and worked with the same gritand determination that defines the very DNA of Dhruv.
We have already submitted bids worth Rs. 300 crore towards new projects and foreseemore projects coming our way in the next FY.
For the current as well as prospective investors the company's future in terms ofprofitability is instrumental in their investment decisions. We are constantly working toensure that our investors enjoy the benefits of the support and the trust that they havevested in us.
With that in mind I am delighted to inform you that Dhruv Consultancy has placed bidsfor single large size consultancy assignments of more than Rs. 10 crore each to Rs. 20crore each in this FY. This is in association with foreign partners for expressway andborder connectivity projects that are expected to reap stellar returns in the next coupleof years.
The company is monitoring construction projects worth Rs. 8000 crore with the largestbeing worth Rs. 1052 crore ticket size. I am hit by a strong sense of nostalgia and pridewhen I reflect upon the 16 years of journey that we have travelled to get to this point.
What started with a small rented office space of 200 sq. ft. with 4 employees and 2computers and a humble sales of 25 lakh in 2003 has now grown into a 10000 sq ft office450 employees 200 computers and sales of more than Rs. 50 crore (200 % increase) over thelast 16 years. This wouldn't have been possible without your support.
Additionally we have also completed two projects ahead of its schedule in FY 18-19. Weimprovised our credit rating from BB stable to BBB- investment grade. It is furtherexpected to increase in the coming years.
Investors are also set to benefit from clean strong financials coming our way in thenear future due to imminent foreign associations and improved payment schedules.
Adding yet another feather to our cap our Managing Director Mrs. Tanvi Dandawate Autihas been conferred with the Youthful Entrepreneur of the Year 2018 (Times Power WomenMumbai) Youngest Entrepreneur in Navi Mumbai 2018 and Youngest Entrepreneur of the Year2019 Awards by the Women Excellence Awards Dubai.
FY 19-20 is going to be dynamic with the state and central elections controlling theeconomic and financial performance of the country. While that is true I am happy to saythat irrespective of any government that comes into power Dhruv Consultancy will still doexceedingly well.
The company holds a strong order book of Rs. 299 crore to be executed in the next 2years. Expected additional market share of the company in Bharatmala and SagarmalaPariyojana even if considered on a conservative side at 5% is Rs. 200 crore per year inthe next 5 years.
I am immensely proud of our employees who with their unwavering grit and trust in themanagement have always stood by us. They are our family. And just like every familymember needs to be cared for and nurtured Dhruv Consultancy has taken incremental stepstowards the wellbeing of our employees.
70% of the workforce in Dhruv's corporate office comprises of women casting awaygender bias. To enable ease of communication and comfort at the workplace 2 of ourdirectors are women which helps us impart a sense of security and peace within our womenwork force.
Since the employees put in their 100% efforts in the betterment of the company ESOP(Employee Stock Ownership Plan) has been announced for the employees to impart a sense ofownership hereby increasing their productivity. Employees are covered with personal aswell as family insurances Provident Fund ESIC Bonus and Performance-based appraisals.
When the employees are to be sent on official visits outside the city or abroadaccommodation arrangements are made available to all employees so that they can travelwithout any worry.
Skilling and reskilling is paramount to the company's betterment and for that Dhruvorganises educational trips abroad as well as in India.
Additionally company-sponsored post graduation courses training programmes forcommunication skills and grooming are arranged from time to time.
Every business whether large or small is a creator of opportunities. And as anorganisation we feel that it is our moral responsibility to help the disadvantagedcommunities.
As a part of our CSR efforts Dhruv Consultancy has started a non-profit organisationin rural Maharashtra that works for the welfare of women and children. Additionally Dhruvhas tied up with universities and colleges in different parts of rural Maharash-tra so asto recruit students from the colleges and provide them with on-job training andemployment.
As a public listed company our vision is to bring about development and precision inour internal operations. Our first step towards achieving this would be to go on the mainboard in the next FY.
In the next 5 years our goal is to digitise our internal operations thereby reducinghuman dependency and increasing efficiency of work.
Pandurang B. Dandawate
Founder Chairman and Director