You are here » Home » Companies » Company Overview » Raunaq EPC International Ltd

Raunaq EPC International Ltd.

BSE: 537840 Sector: Engineering
NSE: N.A. ISIN Code: INE523K01012
BSE 00:00 | 21 Jan 26.45 -1.20
(-4.34%)
OPEN

27.00

HIGH

28.85

LOW

26.40

NSE 05:30 | 01 Jan Raunaq EPC International Ltd
OPEN 27.00
PREVIOUS CLOSE 27.65
VOLUME 1512
52-Week high 31.15
52-Week low 18.90
P/E
Mkt Cap.(Rs cr) 9
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 27.00
CLOSE 27.65
VOLUME 1512
52-Week high 31.15
52-Week low 18.90
P/E
Mkt Cap.(Rs cr) 9
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Raunaq EPC International Ltd. (RAUNAQEPCINTL) - Chairman Speech

Company chairman speech

Dear Shareholders

Greetings to all of you. I hope this message finds you and your loved ones healthy andsafe. This year has been a challenging year and we have proved our mettle countering it.The pandemic has disrupted the businesses worldwide to rethink their strategies and changethe way forward.

The impact of the COVID-19 crisis on the global as well as domestic economy has beenunprecedented and largely disruptive. Overall business environment remained subdued withdemand resting in almost all sectors. However the second half of the year saw a quickerand remarkable recovery due to unlocking of restrictions pick-up in economic activityfavourable government reforms and mass disbursement of vaccine to halt the spread of thevirus. Uncertainty about the second wave of coronavirus infections along with restrictionson movement and trajectory of vaccination drives; however may threaten the economicrecovery.

Construction companies across the board will have to contend with decreased demand asgovernments face rising deficits and residential and commercial projects are dampened byunemployment and low GDP growth. Although some companies may be able to execute on thebacklog of projects the pipeline is expected to be weak for the foreseeable future. Thissuggests:

Construction companies with high levels of debt and low cash reserves may face aliquidity crisis.

As smaller businesses subcontractors may fail rapidly.

Contract management will come into sharp focus as customers seek to terminate orrenegotiate contracts.

Internationalization will become less viable as companies reconsider the regions inwhich they want to operate and countries put more restrictions on foreign companies.

Covid-19 has impacted the revival of your Company which has been struggling to markits way in the water segment and closing out the existing projects in hand. Covid-19 hasslowed down the process and further stressed the financial condition. We have not able tobag any order during the current year and the Company has only executed the currentprojects that too have been disrupted during the Covid-19 first and second waves due toLockdown at the project sites which has impacted the revenues and financials of theCompany. On standalone basis the Company has registered Rs. 1509.69 Lakhs as compared tothe total revenue of the Company of Rs. 2222.00 Lakhs in FY 2019-20 which is 32% downfrom the previous year. With the Government’s Atamnirbhar scheme the Company hasbeen benefited with a reduction of performance guarantee margin money from 10% to 3% forone job and for others jobs it is in progress. This has eased out to some extent theliquidity pressure over the current projects of the Company.

Further in order to have some liquidity the Company has disposed of substantialinvestment in Equity Shares of 75.09% in Xlerate Driveline India Limited a whole ownedsubsidiary Company and cleared off their major debts.

In terms of the execution some of the major projects that the Company successfullyworked on during FY 2020-21 include:

Fabrication and erection of Large Dia CW piping system at NUPPL Ghatampur 3x660MW forGE Power Systems has been delayed due to Pandemic.

Fabrication and erection of Large Dia CW piping system at 1x660 MW Harduaganj extensionII project for Toshiba has been commissioned PG testing underway for the additional ashwater re-circulation project at NTPC Ramagundam 2600 MW.

PORTFOLIO EXPANSION

Your Company has been trying to diversify itself by entering into water distributionsegment for which your Company is exploring many ways and means to bid for the projectsunder partnership and in collaboration with Companies which are already into this segment.

Simultaneously the Company is focused to effectively complete the current projectsunder execution within time.

BUSINESS OUTLOOK

The outlook for the economy seems favourable with revival in consumer sentiment strongpolicy support and positive vaccination drives. The recently announced national budget hasrightly focused on some of the key elements that will be foundational for chartingIndia’s growth pathway. Special focus and fund allocation for infrastructure in ruralareas; digitisation across the agriculture value chain; improvement of healthcareoutcomes; vehicle scrappage policy are all expected to pump-prime the economy along withagriculture and construction sectors.

We will constantly strive for timely execution of jobs with best engineeringcapabilities available and we are focusing on the water distribution system as this sectorholds ample potential in a country like India wherein the Government’s main thrust isto provide better connectivity of water resources under their key projects for irrigationdrinking and interlinking the rivers. The said scope has led to increase the orders inpipeline and your Company can be benefited out of it.

CLOSING REMARK

I would like to spread out my sincerest gratitude to our employees customerspartners business associates and our stakeholders for their undying faith and support.Each one has been a part of our exciting and enriching journey. We continue to seek valuecreation for our stakeholders and persevere in building a sustainable business. Here ishoping for a brighter and stronger future together.

Warm Regards

Surinder Paul Kanwar

Chairman & Managing Director

.