Jayant D. Mhaiskar Chairman and Managing Director
The year FY19 marked the completion of 17 glorious years in the journeyof MEP Infrastructure Developers Limited evolving from a pure toll player into afull-fledged end-to-end road infrastructure developer.
The Company possesses a deepdomain expertise to embark on projects inroad construction maintenance and toll collection severally and collectively.
The Company's approach to business has been marked by teamworkhard work and honesty making it possible to address project and business challengeseffectively and in a timely manner.
The result is that the Company has emerged as a trusted player inIndia's road infrastructure space possessing a successful track record of havingexecuted 140 projects across 15 States in India.
This growth has been showcased in the HAM space where MEP enjoys asignificant market share with 10 projects in Maharashtra and Gujarat with a sizable orderbook of ~ H6700 crore to be executed in the next couple of years. Besides the Companyhas been engaged in prestigious long- term pure tolling and OMT projects like the DelhiEntry Points project and the Mumbai Entry Points Rajiv Gandhi Sea Link projectrespectively.
These credentials have translated into attractive financials for theCompany: revenue from operations and net profit CAGR on a standalone basis was ~19.81% and~16.81 % respectively in the five years ending 2018-19.
The Company closed FY19 with revenues from operations (consolidated) atH2815 crore a jump of 21% vis-a-vis H2322 crore in FY18. The increase was largely dueto increased contribution from the Delhi Entry Point and Hoogly River Bridge tollcollection projects as well as the Rajiv Gandhi Sea Link OMT project. Profit before taxwithout exceptional items at H123 crore represented a jump of 17.8% vis-a-vis H105 crorein the previous year.
The 10 HAM projects undertaken by the Company are at different stagesof execution. Four HAM projects Thane-Vadape Ausa-Chakur Chakur-Loha andLoha-Waranga in Maharashtra - received their respective appointed dates and commenced EPCengagement in the last quarter of FY19.
While our primary focus will be on timely completion of existing HAMprojects we shall continue to evaluate emerging HAM / EPC opportunities.
I am pleased to communicate that India's overall road industryprospects appear promising. The last financial year appears to have been the best in adecade from a highway construction perspective. India's highway construction sectoradded around 10800 kilometers during the year an average of around 30 kms per day. Underthe HAM space more than 107 projects worth around H120000 crores covering more than6000 kilometers were awarded. Besides there were around H32000 crores of HAM projectsin the pipeline for bidding at the start of the current financial year indicating thatthe robustness of the previous financial year could be extended.
India's highway construction revenues are forecast to grow ataround 20% CAGR in the next couple of years strengthening the segment's role as oneof the fastest growing within India's infrastructure sector. The country intends toadd nearly 200000 kms of national highways to be completed before 2022 (comprising theambitious Bharatmala Pariyojana Project) of which only half has been tendered and bid for.
The current Government in office continues to emphasise the importanceof infrastructure creation in economic growth. The government is committed to strengthenindustrial corridors dedicated freight corridors Bharatmala network of roads Sagarmalaand UDAN (Ude Desh ka Aam Naagrik) projects to enhance national connectivity and bridgethe rural-urban divide. The financial institutions' role in maintaining liquidity inthe market by providing credit is also crucial for infrastructural development.
In view of these realities we are optimistic of prospects not only forour company but also for the nation as a whole. Given this sectoral reality and theCompany's robust order book we believe that MEP Infra is in an attractive positionto grow sustainably enhancing stakeholder value.
I take this opportunity to thank every MEP stakeholder who has played apivotal role in our success and our continued endeavour to make a difference. We place onrecord our appreciation for the undaunted trust and unfathomable support of our customersshareholders lenders and vendors.
On your behalf as well as on behalf of the Board of Directors Irespect the efforts of our employees. They represent the soul of our Company driving ourperformance with their commitment and perseverance. I thank all of you for your continuedtrust in our capability which has enabled us to reach new heights. On behalf of everyMEPian I thank you for your support.
|Jayant D. Mhaiskar |
|Chairman and Managing Director |