2011-12 was highlighted by a landmark achievement by your Company as the year saw uscomplete toll road in the Bijapur-Hungund project in Karnataka in record time. The projectwas completed in a record time of 582 days against schedule duration of 910 days which inturn translates in to completion of project 328 days ahead of schedule time. Theachievement also includes construction of 810m dual carriageway bridge over river Krishnaon NH-13 (recently changed as NH-50) in a record time of 11 months and 16 days which is anengineering feat unparalleled.
Riding on this accomplishment, we enter the next fiscal with high expectations forcontinued earnings growth as we focus on providing a full spectrum of EPC solutions acrosssectors such as roads and highways, irrigation and water management.
Our confidence is derived from our commitment levels and infrastructure domainexpertise which has been drawn from a wealth of experience and a consistent trackperformance of executing and completing projects on time. Our dedication to maintainingthe highest standards of safety, ethics, quality and reliability in everything we do hasensured that our clients come back to us with repeated orders.
Let me take you through a more detailed review of our financial and operationalresults, as well as our outlook for the year ahead. For the financial year 2011-12, yourCompany has achieved a turnover of Rs. 865.99 crores with an operating profit of Rs.139.43 crores and net profit of Rs. 52.76 crores reflecting our success to executeprojects on time and on budget. Our robust business model enabled us to earn a bonus ofRs. 50 crores for an early completion - a unique earnings opportunity vis-a-vis our peers.Though our financials have been impacted on account of the economic uncertainty, we areoptimistic that the future unfolds a better picture.
Operationally our ability to do everything in-house reduced our dependence on thirdparty, helped to control costs more effectively thus ensuring better returns for ourshareholders. Also, adopting a prudent policy of procuring and maintaining supply chain ofraw materials worked in the favour of your Company's bottom line results.
We are acutely aware of the insecure economic climate and its impact on theconstruction industry and your Company However, renewed thrust by both the Central andState Governments on road projects, to connect people and improve lives, fuels growthopportunities for us on the basis of our high comfort level in EPC contracts. In fact, theCentral Government's initiative to expand investments in the infrastructure sector to $1trillion by 2017 augurs well for our business prospects. While our area of business hasenormous growth potential, we also realise it is incumbent on us to be diligent and ensureexpeditious execution while performing our road transportation engineering projects tomaximise returns for our shareholders.
Going forward into 2012-13, we are pleased with the order book of Rs. 3,042 crores outof which Rs. 2,808 crores is from road projects and the rest from irrigation and watermanagement projects. We have a vision to touch a orderbook of Rs. 5,000 crores by 2015with a portfolio mix of projects in PPR BOT and EPC models. Business prospects in thefield of water segments for pipelines, canal contracts and mining projects are also beinggiven a serious consideration.
In summary, we are on the right path. We are focussing on our core strengths, investingin our people and being more decisive both operationally and administratively relative tocost control. Your Company is especially proud of the loyalty, dedication and tirelessefforts of its employees which have made us a reputed leader in the provider of EPCservices across the infrastructure sector. I would like to extend my thanks to ouremployees for their personal commitment to achieve the goals of your Company
On a concluding note, I would like to express my gratitude to our suppliers, partners,government organisations, bankers and stakeholders for their unwavering support and beliefin your Company and our future. We look forward to the coming year with confidence in ourability to sustain our excellent performance, win major new works, grow your Company andcapitalise on the talent of our people to provide solid returns for our shareholders.
K Narasimha Reddy