RAMKY INFRASTRUCTURE LIMITED
ANNUAL REPORT 2011-2012
CHAIRMAN'S REPORT
Dear Shareholder,
The Global economic environment remained challenging during the year. High
Interest rates, rising inflation, depreciation of Indian currency, coupled
with global macroeconomic uncertainties resulted in FY 2012 estimated GDP
growth to 6.5% as compared to 8.4% in the previous year. Investment in
Infrastructure has slowed down with a rapid decrease in fresh projects. The
Investment growth scenario is expected to continue to be under pressure.
Even under these tough times and the pressures in the economy, Ramky
Infrastructure Limited (Ramky Infra) demonstrated resilience with
consolidated revenue of Rs. 3,934 crores with a growth of 22.40% compared
to the last fiscal and Consolidated Net profit of Rs. 244 crores with a
growth of 18.43% compared to last fiscal.
The company defines itself by being far sighted, customer focused, leaner
and agile to convert opportunities into business. Evolved from a consultant
to an EPC player and finally infrastructure developer, Ramky continues to
build on core competencies thus reducing risk of dependence on any one
sector or project and helps in participating in projects across the
country.
We have strengthened across all parameters and are focussed in managing
costs and prudent use of capital. Our Credit ratings are comfortable and
place us in a decent position for laying foundation to continual growth. We
have been and continue to remain focussed on creating long term share
holders value.
We will stay focussed and selective to achieve increasing returns. Vigorous
efforts are on going to procure high value contracts in complex and niche
projects. Our efforts will continue towards ensuring that conversions
ratios from bid to order will be maintained.
We are stepping up our foray into countries where opportunities are being
opened up and where the competitive pressures are as yet low. We will
strive for excellence and leadership in every part of our operations with
an edge to grow exponentially with collaborations that transcend
geographical and cultural boundaries. As part of its blueprint to become
multinational, we would gradually increase our geographical presence
globally.
The company has forayed into West Africa, Gabon through its subsidiary,
constructing various facilities for Gabon SEZ and has plans for expansion
in Gabon and other parts of West Africa.
The order book as of March 31, 2012 stood at Rs. 13,702 crores compared to
Rs. 10,998 crores in 2011. Of this, roads, highways & bridge projects
occupy the major share at 43.7% followed by 16.3% in building projects,
water & wastewater projects at 16.0%, irrigation projects at 11.8%,
industrial projects at 7.5% and power transmission & distribution projects
at 4.7%.
Besides, the company has around Rs. 1,057 crores worth of projects in
pipeline (where we are declared as L1) and around Rs. 14,682 crores worth
of unopened tenders as on June 30, 2012
At Ramky, prudent and conscious efforts are made to procure high value
contracts in complex and niche projects and sustain the bid-to-order
conversion ratios. 'We are constructing high quality national
infrastructure for transportation and is one of the prime focus areas of
Ramky infra operations'.
Ramky Infra committed contribution to the Infrastructure Development has
been acknowledged by the receipt of various categories of the following
awards.
CNBC Infrastructure Excellence Award 2012
CIDC Vishwakarama Awards 2012
Construction Week Awards 2011
D & B Axis Bank Infra Awards 2011
9th Construction World Annual Awards 2011
EPC World Awards 2011
12th Annual Greentech Environment Excellence Award 2011
Ramky Infra is ISO 9001:2008, ISO 14001:2007 & OHSAS 18001 certified for
quality management systems, environmental management systems and
occupational health and safety management systems respectively which the
company applies to the design, development, engineering, procurement and
construction of projects.
Ramky Infra strives to uphold its commitment to do business with
excellence. Since 1994, Ramky Infra has maintained a strong tradition of
returning wealth to society by contributing to various social causes. The
company has established special CSR wing, Ramky Foundation, for addressing
the social needs. 'We emphasize on four thrust areas- natural resource
management, women empowerment, education and health. In FY 2011-12, we have
taken up 159 programs in these four thrust areas covering 23273
beneficiaries,'
We reiterate our commitment to enhance value in the hands of our stake
holders. We are thankful for your continued confidence and support for the
company's growth and look forward to a bright future for your company.
Our passion gets recharged to explore new horizons and achieve growth year
after year with the trust placed in us by you, the share holders of the
company. I thank the Board of Directors for their support and guidance for
the growth of our business year after year.
With warm regards
Alla Ayodhya Rami Reddy
Executive Chairman
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