I take great pride in presenting the Annual Report 2019-20 of your Company. When wepass through tough times and come out of it stronger that adds to our sense of self-worthand confidence and validates our belief that we are capable of thriving despitechallenges.
With 12 years in the business so far we have delivered a total of 143 projectsaveraging one project every month all throughout the Company's existence. Every projectcements our reputation for not just delivering a state-of-the-art building (or buildingcomplex) but also delivering great value for the client by executing it within schedulewithin budget and with utmost attention to quality and safety. Every passing year seesour Company building further upon its market reputation as a one-stop shop for allbuilding solutions from concept design and execution to all MEP Services tillmaintenance works.
With 23 project completions during 2019-20 we scored the highest number in ourCompany's history so far and we strive to go only higher. This includes the delivery ofsix marquee projects: Commercial Building at GIFT City; Zydus Corporate House atAhmedabad; Puniska Healthcare plant; Bangalore Milk Union Dairy plant at KanakpuraKarnataka; Grand Mercury hotel at GIFT City for Brigade Group; Medical College andHospital for Dharmsinh Desai University.
Each project completion wins us clients' trust repeat orders new orders andincreases our pre-qualification credibility. That is how we stay ahead in the racecrossing all the hurdles.
Business performance review
The year under review was a difficult one for the construction industry in India. Thesecond quarter of the year saw one of the lowest growth periods in about a decade and bythe end of the third quarter realty was in even deeper trouble because of the liquiditycrisis in the NBFC (non-banking financial companies) sector and its cascading impact onborrowing abilities. And then there was the COVID-19 pandemic which stopped the world inits tracks and certainly impacted our operations as construction is one area whereremote work is not possible.
However at PSP we swam against the tide getting bigger better stronger asvalidated by our numbers. We finished 2019-20 with an uptick in all key business metricsincluding winning new orders worth Rs.1578 Crores up more than 11% from Rs. 1415 Croresin the previous year. These are measures of clients' trust in us earned by our tight reinon time cost and quality control. Major new projects include our second affordablehousing project in Bhiwandi Maharashtra with an order value of Rs. 601 Crores; Shri KashiVishwanath Dham beautification in Uttar Pradesh with an order value of Rs. 339 Crores; andGujarat's largest Phoenix Mall at Ahmedabad with an order value of Rs. 139.09 Crores.
At Rs. 1499.26 Crores our standalone revenue for the year was the highest since theCompany's inception and we ended the year with an order book of Rs. 3073 Crores. Onceagain a remarkable achievement I would say for a Company that was born in 2008 theyear when the world saw its biggest financial crash in decades and now has touchedrevenues of nearly Rs. 1500 Crores in a year marked by another unprecedented crisis. Ourfocus on industrial and institutional segments has many strategic advantages and duringthe year these two segments accounted for 90% of our revenues.
The jewel in our crown our single-largest project to date the Surat Diamond BourseProject worth Rs. 1575 Crores is under execution. We realized revenue of Rs. 957 Croresup to March 31 2020 out of which Rs. 542 Crores was realized in 2019-20 and havefinished 61% of the project. Civil works on the project have been completed while MEP andother ancillary works are going on. Because of the COVID-19 pandemic the socialdistancing the lockdown and the reverse migration of laborers from cities to villagesthere will be an impact for one or two months in the completion of the project beyond itstarget completion date of March 2021. The turmoil over the pandemic caused a delay inapproval of the finishing material and laborer shortage towards the end of March. Thesewere major roadblocks but we intend to deliver this flagship project as promised afterfactoring in this force majeure situation. Its timely delivery will do wonders for ourCompany's stature and credibility making us eligible to bid for larger projects helpingus move to the next phase of growth.
While we progressed through another year of growth and strengthened our operationalexcellence the novel coronavirus pandemic is an unforeseen crisis about which one couldnot do much. Human health has always been our first priority and all other considerationswere put on the backburner. Our main focus at this time was on standing by all ourstakeholders especially the thousands of workers at our sites by offering them allsupport within our means.
Our site operations had to be closed from the last week of March 2020 because of thelockdown; thus the COVID-19 impact on the year under review was negligible though we sawsubstantial impact in Q1FY21.
On a positive note migrated labour availability began increasing quickly once thelockdown was eased and by end of July 2020 we achieved 80% of labour strength back atour sites. Access to construction material also improved considerably; simultaneously Rs.3073 Crores.
Order Book as on March 31 2020 new project inquiries have also started floating in themarket. Further by the end of June 2020 around 90% of our projects had seen resumptionof activity while the other 10% was still stalled as the projects fall under highlyaffected areas.
Our diversified offerings robust capabilities and continuous perseverance are led byour focus areas of timeliness quality and safety and our vision of growing bigger andbigger going from strength to strength. We believe that the year under review has provedit beyond any reasonable doubt that PSP stands among the best. While Gujarat remains ourcore market and we are well-positioned to tap new construction projects in and aroundGIFT City Gandhinagar Dream City Surat and noteworthy Gujarat Industrial DevelopmentCorporation (GIDC) projects at Sanand Dahej Becharaji etc. we have also establishedourselves in other zones of India by delivering several quality projects in MaharashtraRajasthan Uttar Pradesh and Karnataka. Our portfolio includes affordable housing asidefrom Smart City and institutional construction along with industrial and marqueegovernment projects. We are both consolidating and expanding our presence with thestrategic target of making PSP a pan-India name as a prominent EPC company. Additionallythe more we diversify and spread our geographical footprint the more we derisk thebusiness.
We are setting up a state-of-the-art manufacturing plant for precast concrete buildingand allied infrastructure elements near Sanand Gujarat. The plant will have an annualproduction capacity of 3 Mn sq. ft. once fully operational. We are currently undertakingthe first phase of the facility which will have an annual production capacity of 1 Mn sq.ft. The first phase is slated to be operational by May 2021. The plant will empower ourefforts to drive seamless quality speed in delivery larger volumes in controlledenvironment and reduce dependence on manpower. This facility will also strengthen ourtechnical capabilities to execute our ongoing projects. Further it will produce a widerange of products used in infrastructure and general development projects which can besold directly to infrastructure companies EPC contractors real estate developersthereby enhancing our service offerings .
In conclusion driven by passion and commitment we are optimistic about the brightfuture of the construction industry as urbanization industrial growth and smart citieswill only increase in India. I take this opportunity to thank you all our shareholdersand all other stakeholders for helping PSP go from strength to strength.
Prahaladbhai Shivrambhai Patel