A year has passed and another exciting year awaits us. FY 2019 has indeed been aneventful year as our business segments performed remarkably well. This is reflected in ourstrong financial figures that we recorded during the year and I am delighted of theprogress we have made so far. Today we are clearly focused on our chosen markets winningnew business on terms and conditions which balance both risk and reward. We continued tobuild our capabilities people services and projects to serve our clientsand grow the value we deliver to them and the public at large.
On a growth trajectory
During the year we have seen some economic and political changes in the landscape ofthe country. The economy grew to at a GDP growth rate of 6.8%. The country emerged as thefastest growing major economy in the world on the back of digitization globalizationfavorable demographics and policy reforms. India has the potential to perform better andthe Government's focused initiative towards infrastructure development will certainly helpin the growth of the EPC industry. The Indian EPC sector has developed substantially inthe last few years from dealing with a handful of projects to a multitude of small largeand complex projects and subcontracts. EPC industry has witnessed consistent changes withincreasing project size scale and investment. Further the Government's support has alsocontributed significantly to the growth of the sector. Successful implementation ofschemes such as Smart Cities Mission Housing for All AMRUT Roads Railways andRenewable Energy generation etc. have brought about significant improvements in thesector.
Besides these sectors the water sector has also made significant progress over theyears and has become enormous business today. The business is growing in line with therapidly changing urban face of India and thereby increasing demand for quality watersupply and better sanitation services. As regard to the power sector there has beenconsiderable advancement in the country on account of Government schemes such asSAUBHAGYA UDAY UJALA IPDS etc. We intend to make a significant contribution on ourpart by successfully implementing infrastructure projects in these sectors and take oureconomy forward in terms of advancement.
SPML achieved substantially strong performance during the year. Supported by revenue ofRS. 1493.25 crore during the year we increased our profits by 15.08% to RS. 49.61 crore.As a consequence of the sustained strength of our balance sheet and the further increasedearnings visibility the earning per share increased by over 15% on year on year basis toRS. 13.54 in FY 2019.
Our strong balance sheet combined with a deep presence in our core sectors andengineering expertise leaves us well positioned to take advantage of potentialopportunities. We maintain our disciplined approach to capital allocation with our focuson value creation and sustainable shareholder reward. Our business remains focused on riskmanagement generating casRs. -backed profits and being adaptable to allow management toquickly adjust to changing market conditions. We are now focused on embracing theopportunities that come ahead.
As you will have noted these figures broadly indicate that the Company has been ableto navigate through the challenges relatively more effectively than many of our peers inthe construction industry. This has largely been due to the strong fundamentals of theCompany and the foresight of the management in putting into place a business strategybased on its core competencies.
Our Key projects of FY 2019
SPML Infra has contributed immensely in developing robust and sustainableinfrastructure for water supply power transmission & distribution sanitation as wellas the construction sector including smart city development across the country. The keyhighlights from our projects during the year were:
SPML Infra completed the Phase-II of Saurashtra Narmada Avtaran Irrigation (SAUNIYojana) that was inaugurated by Hon'ble Prime Minister Shri Narendra Modi along with ShriVijay Rupani Hon'ble Chief Minister of Gujarat in April 2018. This ambitious water supplyand irrigation project envisages providing drinking water facility to 132 towns and 11456villages and irrigation facility to 1.8 million hectare of land in Gujarat. We are happythat after completing two projects under this scheme we have been trusted by our clientwith repeat orders and the Company has received large value new order worth RS. 723.87crore to execute the Phase-III of this project. This order has a distinction to be thelargest single order received by the Company.
There is a real challenge being faced by the water utilities in India and globally as aconsequence of increased urbanization higher demand increased prices and ageing anddilapidated distribution networks in the non-revenue water (NRW). The high percentage ofnon-revenue water in Indian cities results in huge volumes of treated water being lostduring transmission and distribution that affects the financial capability of waterutilities through lost revenues and increased operational costs. SPML Infra helpedsignificantly in reducing non-revenue water under UFW Project in Bengaluru by usinginnovative technology of helium leak detection to accurately identify and locate hiddenleaks in large and small pipes. The NRW reduced significantly from 56% to 27% thus savingabout 40 million litres of drinking water per day. The water saved from the project willbe used to provide drinking water facilities to 110 villages and the extended colonies ofBengaluru.
The Company also completed the water supply projects in Gagreen and Pokhran inRajasthan that has helped us in providing drinking water facilities to over 900 villagesand several towns. Our urban water supply projects in Delhi and six cities of Karnataka isprogressing and more than 1.2 million people are going to be benefitted with cleandrinking water facilities.
Our power sector business also showed good results as the Company has completed anumber of technologically advanced power transmission distribution and substationprojects in different states of India. Some of the prominent projects that the Companycompleted last year includes 220 kV Gas Insulated Substation (GIS) in Alipurduar WestBengal; 400 Kv - 500 MVA Autotransformer and 220 kV Line Bays for the extension of 400/220kV Substation in Sikar Rajasthan and Mainpuri Uttar Pradesh; 220 kV Grid Sub-Station ofpower supply augmentation project in Ratu Jharkhand; 400 kV twin moose transmission linebetween Chittorgarh and Bhilwara in Rajasthan with 135 transmission towers spread acrossthe length of 50 kilometers; and important rural electrification works in Patna and Gayadistricts in Bihar by electrifying over 4000 villages in which work in 483 villages arecompleted within a month period much before the deadline of Saubhagya scheme. Govt. ofBihar has conferred the appreciation and award for this project for completing the targetmuch before the stipulated time.
Investing in our people
During the year we worked with a team comprising of hundreds of incredible employees.We couldn't have achieved what we did without their energy utmost dedication andenthusiasm. On behalf of the board I would like to thank all our employees for theircommitment and effort this year. We are fortunate to work on various impressive andexciting projects and it is delightful to see our people working with both passion andpride. We will continue to make efforts to provide our employee with a congenial workingatmosphere that allows them to realize their full potential and achieve the organisations'goals while meeting their individual aspirations.
Building for the long term
We are focusing on completing the current ongoing projects on time while also planningto expand water wastewater irrigation and power businesses across India for which ourbidding for selected projects in these segments has been initiated. We also look forwardto completing the SAUNI Yojana pipeline project in Gujarat the smart city project inMadhya Pradesh; the drinking water projects in Rajasthan and the several powertransmission & distribution projects in different states of India. Considering theniche position we have managed to create in the water and power segment we intend to useit to our advantage. In essence our business plan for the year is to maximize ourstrength to achieve the overall objective.
The Company has achieved significant milestones as it has continuously been featuringamong the World's Top 50 Private Water Companies as per report by Global WaterIntelligence London. During the year the Company also received a number of national andinternational awards for the contribution in nation building with sustainableinfrastructure development. The Company's expertise is well recognised by industryassociations government agencies and others with representation of officials in nationallevel expert committees and task forces.
The Company has always accorded high importance to health & safety in its planningand execution in all projects. The Company also focuses on other aspects that areimportant for the development including initiatives in the areas of corporate governanceemployee training and enhancement programs client services etc.
I would hereby take this opportunity to thank my fellow Board members for their supportand guidance. I also thank our esteemed clients the management team employees bankersauditors and suppliers for their dedication and commitment. We look forward to buildingon these relationships further as we continue to grow our business.
Subhash Chand Sethi