At Sadbhav Engineering Limited we believe that engineering is about using science tofind creative and sustainable solutions for a better tomorrow. In all our dreams visionand thoughts we visualise the futurescapes we want to carve in and propel all our actswith full tenacity to achieve the future we have envisaged. Because for us Today isTomorrow. Our sustainable growth strategy is entrenched upon 4 Ps Projects PlanningProfits and Planet.
Each new summit we conquer in the quest for excellence makes us more determined toreach new heights year after year. Sadbhav is contributing to the nation building throughits various Engineering Procurement and Construction (EPC) projects in Transport Mining& Irrigation sectors across 15 states in the country.
For Sadbhav the year unfolded good results new projects and worthy accolades but amajor setback too. Our Chairman Emeritus and my father Shri Vishnubhai Patel left for theheavenly abode. For Sadbhav family we all lost a patriarch a visionary a philosopherand a mentor who paved the path to success and brighter tomorrow for Sadbhav. While it isa personal loss for all of us at Sadbhav we are committed to chart new heights which hehad foreseen and materialise his dreams to make Sadbhav the most revered name in the EPCbusiness.
As on March 31 2019 your Company had a well-diversified order book of Rs. 11981crores with order book to sales ratio stands of 3.38 x FY19 revenue providing good revenuevisibility. Your Company has been entrusted upon by its clients as an organisation thatexecutes and delivers projects on-time. During the year Sadbhav Engineering Ltd. has beenhonoured with prestigious Gold Award in the category of Innovation (Design) for projectEastern Peripheral Expressway Package 1 at National Highways Awards for Excellence 2018by Ministry of Road Transport and Highways Govt. of India. This award was conferred uponby Shri. Nitin Gadkari Minister of Road Transport and Highways and Minister of MicroSmall and Medium Enterprises Govt. of India. Sadbhav Engineering Ltd. has also receivedmuch coveted Construction Company of the Year 2018 Award' (Turnover below 5000 Cr.)and Best Executed Road Project of the Year 2018' for Eastern Peripheral Expressway(Package I and II) project from Construction Times. We are steadfast in our pursuit tosurpass the industry benchmarks of excellence and accomplishing all the project parametersset by the clients.
Bharatmala Pariyojana is an umbrella program for the highways' sector that focuses onoptimising efficiency of freight and passenger movement across the country by bridgingcritical infrastructure gaps through effective interventions like development of EconomicCorridors Inter Corridors and Feeder Routes National Corridor Efficiency ImprovementBorder and International connectivity roads Coastal and Port connectivity roads andGreen-field expressways. In Bharatmala Pariyojana a total of 34800 km of nationalhighway length including 10000 km of residual National Highways Development Project hasbeen approved. Stretches have been approved for development under Phase-I at an estimatedcost of Rs. 535000 crores. Your Company is relentlessly working towards achieving theseobjectives of Government of India to usher in an era of sustainable development andgrowth.
Sadbhav Engineering Limited complies with the statute that mandates the corporates tofollow the good environment labour and governance practices and safeguards the interestsof all its stakeholders.
This Annual Report of Sadbhav Engineering Limited for the year 2018-19 reflects ourperformance opportunities and our interventions to transform those opportunities into theprofits through our strengths knowledge and experience gained during our 31 years ofoperations. Your Company has steadily posted CAGR of ~21% ~22% & ~18% in net revenuenet profits and order book respectively over last 12 years and has market cap of ` 4262.68crores as on March 31 2019. Sadbhav has given all its shareholders regular dividend overthe last 17 years. During the year Earning Per Share stands at Rs. 10.8 and dividendpayout was Rs. 19.66 crores during 2018-19. For the year 2018-19 Sadbhav EngineeringLimited has generated total income of Rs. 3649.54 crores net profit of Rs. 186.85 croresand net worth of ` 2033.67 crores.
Your Company is committed to contribute to the country's holistic development bycreating the state-of-the-art-infrastructure creating employment opportunities andcreating wealth and distributing it fairly among all its stakeholders. The Company isgeared to achieve growth in all the 3 verticals Infrastructure Transport and Irrigation.Your Company leaves no stone unturned in fructifying the national visions and missionslike Make in India Efficient Mobility Per Drop More Crop (Pradhanmantri Krishi SinchaiYojana) Connecting remotest areas of the country with all its borders under BharatmalaPariyojana and making country energy efficient through clean energy.
During the year Sadbhav had constructed roads and highways of Over 9283 lane kms. Ason March 31 2019 our project portfolio for the Infrastructure Development Businessconsists of 12 BOT Projects of which eleven are fully operational and one is partiallyoperational. Also we have Thirteen HAM projects which are in various stages ofconstruction/development. 10 of the 12 BOT Projects are toll projects while the remainingtwo are annuity projects. Our portfolio of BOT toll projects includes the MaharashtraBorder Checkpost Project which involves modernisation computerisation and integrating theexisting 24 border checkposts in Maharashtra and collection of service fee parkingcharges and loading and unloading charges from di erent categories of commercial vehiclesin accordance with the service fee noti cation issued by the Government of Maharashtra.
Your Company is mining precious minerals and specialises in the mining of Uranium oreand Coal. Keeping in view the nation's endeavour to switch to clean energy by 2027 andexpand nuclear energy infrastructure (20000 MWe by 2020 AD from the present capacity of2770 MWe) government of India has entrusted your Company to mine these precious minerals.Sadbhav has mined 551 Cubic ft till now. Irrigation Division of your Company isconstructing canals and dams for the surface conveyance of water for the irrigation. Tillnow your Company has completed work of 671.24 km and working on the Irrigation projectswith a balance work order of Rs. 443.78 crores as on March 31 2019 which translates to4.93x of FY19 Irrigation revenue.
Your Company believes that engineering has the power to transform lives of the peopleand make this world a better place to live. Innovation Excellence and Enterprising spirithelps us to engineer a better tomorrow a tomorrow that would offer better connectivityand infrastructure that boosts country's economy access to water for agriculture sectorand unearthing of precious minerals vital for the economy. At SEL we believe that ourgrowth and development should be hand in hand with the community we live in. Hence ourCSR interventions encompass the need-based interventions like community infrastructurebuilding community health and community empowerment.
Your Company is among the early adopters of the state-of-the-art technologies like SAPS/4HANA that manages the resources across the country in real time and gives us anopportunity to make the best use of our resources to meet the objectives. Peopledevelopment is the key driver in taking your Company to the new echelons of success andthus it invests the required resources in training and development. Sadbhav hasimplemented SAP SuccessFactors an innovative platform to manage human resources. TheCompany is conscious about creating conducive environment that gives ample opportunitiesof growth to the right talent. I personally believe that late founder's vision toestablish Sadbhav as a leading player in infrastructure mining and irrigation could nothave been manifested without the unflinching support from employees and shareholders. I amthankful for your continued patronage to Sadbhav Engineering Limited.
Furthermore SEL's Subsidiary Company SIPL has decided to sell equity stakes in 9special purpose vehicles (SPVs) to IndInfravit Trust an infrastructureinvestment trust. This deal is expected to consolidate the Company's business operationsand optimise the resource utilisation in its core focus areas.
On behalf of Sadbhav Engineering Limited Management I express appreciation for theunwavering support and trust of all the employees and shareholders and assure you thatSadbhav will keep on harnessing the power of engineering science to create a bettertomorrow.
Shashin V. Patel
Chairman & Managing Director