I hopeyouallare keeping healthy and safe in these times. I am pleased to present to youthe 19th Annual Report of your Company. As one of the key players in thecustomized steel fabrication and infrastructure solutions segment in India your Companyis continuously expanding and diversifying its product portfolio. We are focusing onoptimal utilization of capacity to cater to expanding opportunities in telecom powertransmission railway and other infrastructure segments with an aim to increase marketshare and strengthen our foothold in the industry.
The year 2019-20 was marked by various challenges the biggest being the outbreak ofCOVID-19 pandemic. The global economy was already reeling under the effects of severalmacroeconomic uncertainties such as slowdown in the investment cycle weak consumersentiments and wide-ranging policy uncertainties. It has suffered its lowest growth in adecade slipping to 2.3% in 2019. To worsen the situation the pandemic brought anunprecedented shock to the World and Indian economy and brought it to a complete halt. Theworld-wide lockdown and the associated disruption impacted all businesses leading to lossof livelihood for millions of people not to mention the lives lost in the pandemic.
A humanitarian crisis of this scale has brought people and businesses across the worldtogether in their efforts to stand by the needy and the impacted. I am proud to share thatyour Company as a responsible corporate citizen not only donated to the PM CARES fundbut also provided food rations to the migrant workers. In the current year through ourCSR initiatives we are working on bringing livelihood to people who have lost their jobsin this pandemic.
I can assure you that we will continue to work on supporting our countrymen in thisdire hour of need.
The country-wide lockdown in March 2020 disrupted the demand and supply chainsimpacting businesses across the sectors. The performance of your Company too has beenimpacted by the lockdown. On a consolidated basis the Company's total income forFY2019-20 stood at Rs 528 crores. The EBIDTA stood at Rs. 52 crores with EBITDA marginbeing 9.84%. PAT for the year stood at Rs. 22 crores with PAT margin being 4.25%. Thetelecom business contributed -60% to the revenue followed by power transmission andrailway electrification verticals which contributed around 21% and 9% respectively. As on31st March 2020 our EPC order book stood at Rs 325 cr. Your Company hasdeclared a total dividend of 25% (Rs 2.50 per share) in FY20.
What is driving us during these challenging times is opportunities present in thesectors we cater to. The Indian telecom sector is witnessing significant changes - therehas been a shift from a voice-centric market to a data-centric market. With peopleincreasingly working from home and the education system adapting to the new normal theneed for high speed data has increased manifold. The telecom majors are expected to makesizable investments in their infrastructure for increasing 4G penetration and rollout of5G in India. We expect significant business opportunities as a result of these investmentsin network expansion.
The Indian power sector is also expected to attract robust investments with theGovernment's focus on "Power for all. A rise in demand along with regionalsupply gap has necessitated expansion and investments into transmission infrastructure bythe government and the power companies. There is also a push by the Government intoincreasing renewable energy production especially solar power. All these bode well for aninfrastructure enabler like us. Railway segment continues to be one of the key growthsegments and one of our key focus areas. The railway department has set forth plans forexpansion upgradation and modernization of its existing infrastructure. Investments inthis segment along with the vision to achieve 100% railway track electrification in thenext four years should also provide us with good growth opportunities.
We at Salasar are continuously evolving and expanding our product and service offeringsto grow profitably. Our products such as smart poles camouflaged towers etc. areone-of-its-kind in the industry.
As all of us are still battling with the pandemic we are constantly learning andcoping with the situation and remain committed to step up and efficiently respond to thechallenges. We remained focused on the safety and wellbeing of our employees workers andother stakeholders. We have taken various precautionary measures at our offices and plantsto ensure safety for all.
I would like to conclude by reinstating that your company would continue on its growthpath. On the back of strong industry opportunities robust order book experienced teamenhanced capabilities and excellent relationships with our customers we are confident ofsuccessfully navigating through these tough times and strengthen our position as theleading player in the industry. I would also like to thank all our stakeholdersemployees customers and business associates for their confidence and support in us andlook forward to a long association.
|Alok Kumar |
|Chairman & Managing Director |