FY20 has been an eventful year in many ways. The world is facing an unprecedentedchallenge in form of Covid -19 which has not spared any country globally and has putsevere pressure on economies. This crisis is still unabated and our thoughts are with allthose who are impacted by it.
FY20 was also an eventful year for our company. During the year we made significantprogress towards our stated objective of de-leveraging and balance sheet improvement.Inthe 2nd half of FY20 we successfully concluded the sale of 5.95% stake in thepower assets of Sembcorp Energy India Ltd for cash proceeds of INR 4.1 billion plus anupside option. A significant portion of the proceeds were used towards repayment oflong-term debt and towards working capital management. This strategic divestment was acritical milestone during this year as it eased the burden off our balance sheet throughlong term debt repayment of close to INR 2.3 billion.
We could have progressed further on our debt reduction exercise but were unable to doso as lot of our initiatives were delayed due to the situation on account of Covid 19. Post an elongated monsoon executions at our key sites had just started picking when anation-wide lockdown was imposed from 25th March onwards. The lockdown hit usat a time when execution at our sites is usually at a peak level and we could partlyresume operations only from 20th April onwards. As a result our FY20 financialperformance was impacted. However our revenues in FY20 were just 1% lower at INR 3427.33crores and we maintained an EBITDA margin of 12.4%. Our EBITDA to FCF generation remainedhigh at 65%.
The operations resumed in a staggered mannerat project sites however execution isstill sub optimal a 50-60% levels because of shortage of raw material and contract labour.We are hoping that the situation would ease from Q2 onwards and execution should pick upQ3 and Q4 of FY21. Despite massive Covid-19 related issues and delays we are confidentthat our FY21 revenues will remain at par with FY20 revenues. We will be able to maintainour EBITDA margins in the 14%-15% range and a significant portion of our long-term debtshould be repaid.
We are swiftly working towards ensuring that we are completely long-term debt free inthe next 12-18 months. This would be achieved through a combination of internal accrualsand through monetisation of various arbitrational claims and awards. Gayatri has INR over7.5 bn of awards pending in different arbitration tribunals/courts and over 6 bn ofoutstanding claims. These claims and awards are at various stages of closure and we expectover INR 4-6 bn in the next 12-18 months from their monetisation. The proceeds from thesesettlements will be used towards long term debt payment bringing it down to negligiblelevels.
Over the last few years we have built a large EPC order book. We are one of the fewplayers in the Industry with a pure EPC order book of INR 126bn+. We are well diversifiedgeographically and segment wise thereby de-risking our business model. A high book tobill of 4x provides us with high revenue visibility for next 3-4 years. Our Asset lightbusiness strategy is delivering desired results which are in line with our expectation andhence our entire focus is on this model. During the year we also refrained fromaggressive bidding to ensure stability of our margins. We want to maintain our focus onexecuting our existing order book to ensure improved cash flows.
Even thoughthe last few quarters have been difficult for the company operationally andfundamentally our business has been performing well. All our projects are now on trackafter adjusting for Covid-19 related delays and our teams are working relentlessly toensure their timely completion. After a temporary cash flows mismatch in Q2 and delayedinterest payments we are now regular on debt servicing and currently there is no default.The company has availed the moratorium announced by RBI to ease the stress of industriesdue to the COVID-19 pandemic.
We are confident that given our strategic initiatives our company will emerge muchstronger and resilient over the next few years. Gayatri has a long history and has beenoperating for the last 4 decades. We have always endeavoured to build a resilientorganisation and have tweaked our business model at various stages to ensure the same. Ourtransition from an asset heavy BOT focussed business model to an EPC focussed asset lightbusiness model was the toughest and it took us almost 6 years to successfully achieve thesame. Our relentless focus now is to strengthen our organisation further by improving ourbalance sheet and we are taking all the steps in that direction.
Our Journey of last 4 decades wouldn't have been possible without the support of ourcommitted management team and I would like to take this opportunity to thank them fortheir hard work and dedication. They have supported the company in its toughest time andhave ensured long term sustainability of our organisation. I would also like to express mysincere gratitude to all our stakeholders who have shown immense patience and havesupported the company in its transformative years. With your support we are confidentthat we will build a sustainable organisation which provides superior shareholder returns.