We focused on efficient execution and resolution of our on-going projects sharpenedour cost and time efficiencies and primed our abilities to capitalise on neweropportunities.
FY2017 was a year in which we braved various challenges to retain our organisationaland financial stability. While there is strong government impetus on the infrastructuresector the prevailing macroeconomic headwinds have cast a shadow on the sector'sdevelopment and delivery landscape. As India's infrastructure sector continues to be atthe crossroads we too have faced our fair share of angst.
However knowing that external factors would improve sooner we have chosen tostrengthen our current capabilities. We focused on efficient execution and resolution ofour on-going projects sharpened our cost and time efficiencies and primed our abilitiesto capitalise on newer opportunities.
The key obstruction for our business has been delay in project completion. Failures intimely clearance and limited support from capital markets and lenders remained the primecause of deferments. Many of our projects have been delayed by more than three years inlast five years for the reasons not attributable to us and beyond our control. Thesepostponements have resulted in mismatch of the cashflows causing financial disruption.
Today at GIPL we are focused on building strong business fundamentals to weatherthese macro level challenges.
We remained conservative and watchful of striking a balance between our borrowings andthe Company's net worth. With this thought we undertook bold steps by divesting stake insix of our projects (5 road projects and 1 power project) to streamline our balance sheetduring the previous year.
We are also placing emphasis on building healthy internal accruals and capturing thevalue of existing projects. Our focus remains on getting our on-going projects tofast-track completion and to operationalise them as quickly as possible. Despite delaysbeyond our control 2 of our projects have been made operational during the last threeyears. With our sustained efforts our SPV-Patna Highway Projects Limited received theProvisional Completion Certificate during the year.
As challenges remain unabated we will continue to focus on consolidating and executingour pipeline without straining our balance sheet. We will continue to pursue austerity inour cash management. Till the time we regain our financial strength we will be highlyselective about the projects to bid and focus on swifter completion of existing projects.
Lot of the economic value of shareholders are locked into our legitimate dues undermultiple concession agreements for which the project completion are delayed ranging from 3 4 years. The resolution of claims of few of the delayed projects will further bringback the Company into mainstream.
While we saw a contraction in our revenues the attention on faster execution ofprojects will help us improve our performance in the near term. We shall also reap richdividends from sharpened bidding and execution capabilities.
Steadfast to our business strategies we remain committed in executing a healthyproject pipeline with minimal cost and time over-runs. As further projects are put onstream we should witness steady growth in our operational profits. Going forward thiswill enhance the confidence that the market place will place on us.
Moreover the infrastructure sector as a whole is receiving high priority by thegovernment. The value of contracts awarded by the government has been increasing sharplyover the last two years. Speedy resolution of issues related to land acquisition andenvironmental clearances increased regulatory stability easing of financial norms badloan restructuring exit to concessionaires and better coordination across variousauthorities were among the other measures undertaken for improving the development ofIndia's infrastructure sector.
Lastly I take this opportunity to thank all our stakeholders including customerssuppliers bankers lenders shareholders and government bodies for their continuedsupport and patronage. I look forward to your trust and togetherness for our journeyahead.
Our future strategy would be to sustain and improve upon our operational and financialperformance while remaining steadfast to deep-rooted values that have nourished theorganisation since inception.