The macro-economic scenario continues to be bright both at home and abroad with focuson infrastructure in India increasing tremendously. In such a milieu it gives me greatpleasure to present to you our Annual Report for 2017-18.
The estimates are that global economic growth will touch 3.9% in 2018 over and above amuch stronger-than-expected rise in 2017. It will be driven by the continued recovery ininvestment manufacturing and trade and as commodity-exporting developing economiesbenefit from firming commodity prices.
Coming to India the economy is on a high growth trajectory. A 7.2% expansion clockedin the December 2017 quarter makes it the fastest growing major economy in the world oncemore. This year's Union Budget laid great stress on developing the nation's infrastructureinto world-class facilities especially in the transportation energy communicationhousing and sanitation and urban infrastructure sectors. Terming it as a "growthdriver" of the economy the Government has increased the budgetary allocation towardsinfrastructure to Rs 5.97 lakh crore for FY 2018-19 from an estimated expenditureof Rs 4.94 lakh crore in FY 2017-18.
Yet our economic survey reveals that the global infrastructure outlook reflects thatrising income levels and economic prosperity is likely to further drive demand forinfrastructure investment in India over the next 25 years. It estimates that around USD4.5 trillion worth of investments is required by India till 2040 to develop infrastructurethat could improve economic growth and community well-being. Viewing this situation wecan deduce that there is immense untapped opportunity that beckons infrastructure sectorplayers like us.
Within infrastructure the Indian power sector where we have a strong presence hasmade great progress over the past few years. The All-India installed power generationcapacity has increased substantially over the years and reached 330 GW as on November 302017. The peak deficit i.e. the percentage shortfall in peak power supply vis--vispeak hour demand has declined from around 9% in FY 2012-13 to 1.6% during FY 2016-17. Despitethese achievements in power generation capacity enhancement the bottleneck continues inthe transmission of power supply across regions a segment in which we have the greatestexpertise and experience.
As far as the railway sector is concerned the Union Budget announced a capitalexpenditure of Rs 148528 crore for the Railway Ministry in the highest-ever allocationfor FY 2018-19. A lion's share of these funds will be utilised for capacity addition. TheGovernment has proposed to double 18000 km of tracks and to work on the third and fourthlines in several sectors. The Finance Minister also mentioned a plan for 5000 kmof gauge conversion and for electrification of 4000 km of railway network in 2018-19.
All these developments and proposals indicate a bright future for your Company whenseen against its ability to take on and successfully execute large and complex projects inits domain. The universes of both the subsidiaries of KPTL have also become enlivened withopportunity. With the current activity in the urban infrastructure sector specificallythe progress in setting up metro rail transport facilities in major and Tier II citiesbodes well for JMC Projects. At the same time the Prime Minister's focus on doubling thefarmers' income by 2022 and the growing awareness of the need to stem post-harvest losseshas put the post-agri-commodity sector in the limelight opening up plethora ofopportunity in the sector in which Shubham Logistics operates.
I am happy to inform you that this year we have delivered a good financial performancewith a strong revenue growth of 15% and an improvement across our businesses when comparedto the previous year. We have delivered an encouraging growth of over 60% in our Oil &Gas Pipeline and Railways businesses.
Our EBITDA stood at Rs 631 crore marking an increase of 19% Y-o-Y. The EBITDAmargin expanded by around 30 bps as compared to last year's levels. Our debt iswithin our targeted range of Rs 700 crore to Rs 800 crore and our finance costscontinue to improve as per our target. The finance cost as a percentage of revenuewas at 1.79% for FY 2017-18. Our profit after tax for FY 2017-18 stands at Rs 322 crore asagainst Rs 269 crore in the last year translating into an increase of 20% Y-o-Y. Ouryear-end order book stood at approximately Rs 12404 crore net of GST on standalonebasis.
We have achieved significant progress at JMC both in terms of revenue growth andEBITDA margin levels. Our revenue for the year grew by 18% Y-o-Y and our EBITDA grew by35% Y-o-Y. Our EBITDA margin at 10.3% is 120 bps higher than the previous year.
At Shubham Logistics the utilisation of our warehouses has shown significantimprovement. Our revenue for the year was up 23% and we have delivered an EBITDA margin of17.3% during the year which is in line with our guidance. Our average utilisation atShubham Logistics was in excess of 80% and we expect this to further improve goingforward.
Our international operations have expanded considerably and contributed strongly to ouroperational and financial performance. We continue to be bullish on the transmissioninternational market wherein Africa South East Asia Latin America and rising India aremore attractive than ever before. Looking forward we shall continue to focus and investin our talent benchmark our operational excellence and pursue digital and innovationrelentlessly.
The Company maintains its guidance and looks forward to achieving growth in the rangeof 15-20% in the year ahead.
We acknowledge that we would not have come this far without our enterprising andenthusiastic human resources; so I would like to take this opportunity to thank each andevery member of the KPTL family. I would also like to thank our Clients Creditors BanksFinancial Institutions and other Stakeholders without whose patronage we could not havebeen where we are.
The final thought that I would like to share with you is that we are venturing into thefuture with great optimism and enthusiasm as we embark on our mission to Unlock GlobalPotential and Reimagine India.
Mofatraj P. Munot