Charting out a disciplined growth path
It is with mixed feelings that I am doing this address to the shareholders. The entireyear 2020-21 was a year of struggle and loss of human lifes not only for yourcompany but also for the whole world. This was 35th year of your company. We have takenall due care whatever is possible to support of its employees officials for theprotecting from them from the pandemic. Despite all due care we have lost number of livesof RKEC family. We pay homage to all of them and observe one minute silence before Ifurther proceed. Your employees raised to the occasion and supported smooth functioning ofthe company and for achieving the productivity facing all the advertises.
In addition to the pandemic the company was facing slowdown in one of its projects dueto an Accident and an abnormally low level of working capital sanctions.
I have pleasure to inform you that the despite all the above the company has neitherretrenched laid off any of its employee nor had imposed any reduction in their salaries& wages. Your company has recorded a sustained growth in order booking with acumulative order book of Rs.1573 Cr as on 31.03.2021. The orders on hand and to beexecuted is Rs.909 Cr i.e. a comfortable order book position for the next two years.
? Your company did book orders worth of Rs.293.9 Cr during FY 2021-22 and thereby willbe regaining and improving upon the process of growth. ? Your company had completed twoprojects amounting to Rs 284.06 Cr successfully during FY 2020-21 the company is furtherpoised for successful completion nine projects and amounting Rs. 308.29 Cr during FY2021-22. ? The company achieved at EBIDTA of Rs.32.94 Cr as against 69.61 Cr of theprevious year and the corresponding PAT was 12.76 Cr as against 30.27 Cr of the previousyear. ? Happy to inform you that the board had recommended a dividend @12% to theshareholders for the FY 2020-21. ? I would like to inform the shareholders that yourcompany have been successful in taking two out of three major challenges faced by itduring the FY 2020-21. The first one was addressed to by getting a contract revalidatedwhich was terminated in the year was 2018. Thereafter a successful completion of theproject followed by realization of the dues to the tune of Rs.53 Cr. The balance Rs.26 Cris also under process for realization. The second was unfortunate accident in a projectsite during Feb 2020 we have successfully facilitated all the investigations reviews andrevalidations and proactively concluded the issues to facilitate a smooth takeoff of theproject by Oct2021.
? We could partly resolve third issue of stressed working capital position being facedby the company for the last three financial years. The company could break through by therealization of long outstanding debts to the tune of Rs.60 Cr during Q-I of FY 2021-22. Weare also exploring other avenues to further bridge the working capital gap and inconfident that your company will be able to achieve the same during the current financialyear.
The management team of your company considers the lower performance of FY 2020-21 as astray one and unprecedented we are confident to take the company to more heights.
The companys future outlook is to further concentrate on the core competent areasof marine structure and bridges and also to enter into specialized fields like DefenceDROD Electrification Fire Fighting Pipelines Tank farms etc.
Finally I thank all the shareholders and directors also have supported us with guidanceand patience. Jai Hind
Chairman & Managing Director