WORDS FROM THE CHAIRMAN

We at PNC are committed to deliver the projects that are mandated tous on time amid all the challenges that we encounter during implementation. Ourend-to-end execution capabilities coupled with our proven competency across project lifecycle including bidding planning development procurement engineering constructionoperation and management make us not only a formidable player but also a reliablepartner in the country's infrastructure landscape. As a testimony to our capability wesuccessfully completed 10 highway projects of total route length of 651 km and aggregatecontract value of Rs 11981 Cr during FY 22 amid unrelenting challenges and headwinds.

Dear Shareholders

A warm welcome to you all. I hope all is well with you and your family.FY 22 is no less than a roller coaster ride for all of us. From a deadlier second wave ofthe Covid-19 pandemic in the first quarter to geo-political conflict in the last quarterFY 22 witnessed many challenges and turmoil including restrictions lockdownsdisruptions in supply chains sharp rise in prices of commodities and building materialsalong with a third wave of the pandemic during early 2022. These hardships and adversitiesrattled economies and daily lives of people across nations and the construction industrywas no exception.

Still proving our resilience as a country we unitedly stood againstall odds and made our country one of the fastest-growing economies in the world. A specialthanks to our frontline forces who have been tirelessly fighting against this health scarecaused by the pandemic safeguarding our lives as the danger still lurks in the shadows.Their effort and dedication are unparallel and highly commendable.

Despite the fact that the year was full of difficulties anduncertainties that forced the industry to constantly reevaluate its strategies theinfrastructure industry has seen a decent growth owing to various relief measures andsupport extended by the Government under the Atmanirbhar Bharath Abhiyan. The Government'saim to build a nation with top-notch infrastructure has set a promising panorama ofopportunities for the sector and all its stakeholders.

Over the years the infrastructure sector has seen a continuous flow ofGovernment funding and off late the flow of investments by the private sector has beenguarded particularly where revenue (traffic) risk is involved. However to realize theGovernments' goal of timely core infrastructure development in a massive way under theNational Infrastructure Pipeline (NIP) extensive large-scale investment by the privatesector across sectors is an imperative. To promote more and wide spread participation byprivate sector in development of national highway projects through Build-Operate-Transfer(BOT)-Toll Toll-Operate-Transfer (TOT) Hybrid Annuity Mode (HAM) formats theGovernment is open to make changes in the contract conditions technofinancial biddingcriteria and other terms to make them more amenable and bankable for private investmentwhich is an encouraging step in the right direction.

The Government's aim to build a nation with top-notch infrastructurehas set the path for a promising future. We are well-positioned to take advantage of theprospects and hold onto our marketleading position thanks to our strong order book vastindustry experience and proven expertise.

If we look at the business opportunity landscape for the Companygreenfield expressways are among high-value projects that National Highways Authority ofIndia (NHAI) is focusing on for implementation on both EPC and HAM modes. Infrastructuresector as a whole would be benefited by major Government initiatives such as BharatmalaPariyojana Sagarmala Atal Mission for Rejuvenation & urban Transformation JalJeevan Mission and the projects being rolled-out therefrom. For faster implementation ofthese projects across the sectors geographies and proponents PM's Gati Shakti NationalMaster Plan framework will further act as a helping hand.

The capital budget for key infrastructure components in the UnionBudget 2022-23 increased by 35% which testified the Government's focus and commitmenttowards infrastructure development. PM's Gati Shakti's National Master Plan with itsinitial financial allocation of ? 20000 Cr is already on track to achieve Government'sgoal of becoming a uS$ 5 trillion economy by 2025.

Government's focus on Jal Jeevan Mission to achieve its objectives of'Har Ghar Pani Ghar Ghar Pani' and 'Har Ghar Nal Se Jal' will also provide ampleopportunities in the drinking water supply sector across the states where our Company hasalready forayed into.

Now with great pleasure let me share with all of you highlights ofour Company's performance during FY 2021-22.

BOT Annuity OMT and HAM assets. Out of these 25 projects we have 18HAM projects with a total bid project cost of f 24590 Cr.

As the common saying goes potential of a ship is tested only duringstorms our Company's strength and resilience were tested rigorously during FY 2021-22.The year was full of disruptive incidents and adverse events that caused retardation inprogress requirement of additional resources & efforts apart from higher inputscosts. Nonetheless our Company performed remarkably well during FY 2021-22 as atestimony to our determination and perseverance and we successfully completed ten highwayprojects comprising four HAM and six EPC mandates having total route length of 651 km andaggregate contract value of Rs 11981.0 Cr. I am immensely happy to share that during FY2021-22 our Company successfully completed Purvanchal Expressway Packages 5 and 6 (EPCProjects) 132 days and 97 days ahead of schedule respectively and received earlycompletion bonus from the Authority i.e. uPEIDA Government of uttar Pradesh.

During the year the Company's order book remained decent as inflowstood at ? 11146 Cr comprising seven highway projects on HAM model three rural drinkingwater supply projects on EPC model and one user fee collection mandate. Our unexecutedorder book on March 312022 was ? 14663 Cr. By including all the HAM projects which havebeen awarded to our Company our order-book would be over ? 20000 Cr that gives us arobust revenue visibility over next 2-3 years. Out of the total order-book roads &highway mandates contribute around 65% and water supply & irrigation mandatescontribute around 35%. The Company is currently executing total 18 projects includingeleven highway & expressway projects seven rural drinking water supply projects andone irrigation projects.

Our Company's robust execution capability is driven by four strongpillars of strength that enable us to successfully deliver the projects within thebudgeted cost and stipulated time frame financial strength end-to-end executioncapability large fleet of modern plant & equipment and multidisciplinary executionteam with proven credentials.

Our judiciously leveraged and healthy balance sheet and strong creditratings enable us to execute projects seamlessly without any liquidity challenges andfinancial stringency. Our financial strength helps us in pitching for higher number ofprojects of larger size continually.

Our credit ratings continue to be CARE (Double AA) for Long-Term BankFacilities and CARE (Single A1 Plus) for Short-Term Bank Facilities. These strong creditratings are facilitating us to raise funds at competitive rates.

Another significant competency has been having end-to-end constructioncapabilities in-house right from the mining till commissioning of projects. Thesedistinct in-house abilities give our Company a great control over execution qualitytime and cost of projects even in challenging situations and times.

Over the years we have been investing in modern plants & machineryand have built a large equipment bank of our own. This augments our execution capabilitiesprogressively. Our present Gross Block of over ? 1200 Cr is adequate for execution ofprojects of value over ? 9000 Cr in a year.

The Company has a strong project execution and support team with provenexpertise. Over the past six years we have doubled our employee strength to more than10000 employees as on March 312022.

Coming to the key financials of FY 2021-22 on standalone basis ourCompany's revenue leaped by 28% to ? 6306 Cr compared to ? 4925 Cr in FY 2020-21. OurEBITDA in FY 2021-22 stood at ? 787 Cr higher by 16% as compared to ? 677 Cr in FY2020-21 and PAT stood at ? 448 Cr as compared to ? 362 Cr in FY 2020-21 with a growth of24% on y-o-y basis.

On consolidated basis revenue grew by 25% y-o-y basis as in FY 2021-22it is ? 7208 Cr as compared to ? 5788 Cr in FY 2020-21. Consolidated EBITDA in FY2021-22 was ? 1534 Cr which was higher by 8% as compared to ? 1422 Cr in FY 2020-21 andconsolidated PAT for FY 2021-22 stood at ? 580 Cr as compared to ? 497 Cr in FY 2020-21with a growth of 17% on y-o-y basis.

We are proud to be one of the key players players in the development ofnation's infrastructure which is a major driver for its socio-economic growth. I am sureour Company has a promising future and will continue to scale new heights with consistentperformance and sustainable growth going forward.

On a concluding note while I want to congratulate every member of ourteam and all the stakeholders for the splendid performance in FY 2021-22 I would like toexpress my sincere gratitude to all our stakeholders whose unwavered trust and support inour journey have been the driving force behind our journey and accomplishments.

I would also like to thank the Board for the valuable guidance whichhelped us not only in navigating the difficult times but also achieving the goals; ourprized human capital for their continued passion and dedication towards the Company andour bankers suppliers vendors sub-contractors for their committed accompaniment.

With Regards

Pradeep Kumar Jain

Chairman