Execution Remains the Key
I am delighted to report your Company's outstanding performance during the financialyear 2017-18. The year saw a substantial improvement in our performance compared to thatof the preceding year. Given the economy is still recovering post demonetisation andshort-term challenges following the implementation of the Goods and Services Tax (GST)during the financial year the performance is outstanding.
The economy expanded by 7.7% in the last quarter of financial year 2017-18 helpingIndia retain its position as the world's fastest growing major economy outpacing China bynearly a percentage point. However GDP growth for the full year moderated to 6.6%compared to 7.1% in the last financial year.
India's fourth quarter performance was the highest during financial year 2017-18exceeding market forecasts of 7.3%. The country's growth rate is supposed to accelerate toaround 7.5% in financial year 2018-19 given the government's renewed focus on economicreforms and investments in the infrastructure sector which remains the backbone of astrong economy.
The infrastructure sector is a key driver for the Indian economy. The creation ofadvanced infrastructure remains one of the Government of India's major focus areas withbudgeted allocation of Rs.597000 crore in the Union Budget 2018-19. In additionRailways has received the highest ever budgetary allocation of Rs.148000 crore.
The Government of India has also made budgetary allocation of Rs.16000 crore toachieve universal household electrification in the country; and Rs.4200 crore has beenallocated to expand the capacity of Green Energy Corridor Project along with other windand solar power projects. The Government has also allocated Rs.10000 crore to bolstertelecom infrastructure.
Your Company is suitably positioned to benefit from the unfolding opportunities in theoverall infrastructure sector. It is leveraging its project execution and implementationexperience; and is focussed on Government contracts. Your Company has competitiveadvantage owing to its dedicated focus on Government contracts and projects of nationalimportance such as highways power projects rural roads irrigation and water supplycivil construction works and other related infrastructure works. Your Company alsosharpened its focus on specific states such as Tamil Nadu Telangana Andhra PradeshKarnataka Maharashtra and Madhya Pradesh.
Your Company achieved commendable performance despite the volatility in the economycaused by the twin impacts of GST and demonetisation. The Company's strategy to be in thefastest growing states and transact only with stable and safe customer' has resultedin encouraging profitability with substantial improvement.
Your Company posted a revenue of Rs.499.13 crore in the financial year 2017-18registering a growth of 36% on a year-on-year basis vis--vis Rs.366.34 crore in 2016-17.The EBITDA for the financial year 2017-18 stood at Rs.66.10 crore with an increase of 32%(year-on-year basis) vis--vis Rs.50.19 crore in the financial year 2016-17.
The profit before tax for the financial year 2017-18 stood at Rs.47.04 crore with anescalation of 48.86% (year-on-year basis) compared to Rs.31.60 crore in financial year2016-17. Profit after tax stood at Rs.13.52 crore during financial year 2017-18 vis--visRs.23.88 crore during financial year 2016-17 owing to special adjustment of tax expensesof Rs.17.96 crore to resolve the pending I-T disputes from the financial years 2010 to2016.
In view of Your Company's performance and continued business optimism for the futurethe Board has recommended a dividend of Rs.0.50 per equity share for the financial yearending 31 March 2018.
I am happy to share that your Company has forayed into Maharashtra as a part of thebroad strategy to enhance outreach. With strong footprint in fast developing states suchas Maharashtra your Company is geared to reach further heights. Your Company has alsosecured a contract in Kerala.
The order inflow during the year was around Rs.900 crore; and the order book size atthe end of the financial year stood at Rs.1175 crore. Your Company's emphasis acrossprojects continues to be on execution excellence at a rapid pace.
India requires investments worth Rs.5000000 crore by 2022 to fast-track progress withmajor allocations in roads power and urban infrastructure segments. The country is alsowitnessing significant interest from international investors in the infrastructure space.These developments enhance your Company's business optimism.
Your Company enjoys footprint across fast developing states with gross state domesticproduct of 10%+ in financial year 2017-18.The projects are properly categorised underbroad segments such as building water management and infrastructure with infrastructureconstituting over 50% of the revenue.
Your Company will continue to remain focussed on these segments with footprint instrategically important states for sector-specific outperformance resulting in a strongbalance sheet and faster value creation for all stakeholders.
On behalf of the Board and the entire leadership team I solicit the encouragement andsupport of all our employees business partners state governments and relevantauthorities for helping us partner in nation-building.
Chairman & Managing Director