ITD Cementation India Ltd

Driving Excellence. Creating Value.

Dear Shareholders,

I am pleased to present the Annual Report for our

Company for FY 2023-24, a year marked by significant achievements and strategic advancements.

The year under review has been pivotal for our Company as we navigated through a dynamic business environment shaped by global uncertainties and evolving market dynamics. Amidst these challenges, I am proud to report that we have not only enhanced our growth trajectory but have also made notable strides towards our long-term strategic goals.

Our commitment to operational excellence and innovation has remained unwavering. We continue to focus on enhancing project execution capabilities, leveraging advanced technologies and reinforcing our position as a leader in the construction sector. Our projects have not only contributed to the nation's infrastructure development but have also underscored our ability to deliver complex engineering solutions with excellence.

Financially, despite the economic headwinds, we have maintained a robust financial position. Our prudent financial management practices and disciplined approach towards cost optimisation have enabled us to mitigate risks effectively and deliver sustainable value to our stakeholders. Our revenue growth and profitability metrics reflect our operational efficiency and resilience in a competitive market landscape.

INDIA'S INFRASTRUCTURE OPPORTUNITIES

The Indian Government continues to prioritise infrastructure development as a cornerstone of economic growth. This is evident from the budgetary allocation to the infrastructure sector representing an increase of 11.1% to I 11.1 Lakhs Crores for FY 2024-25.

There is significant emphasis on improving connectivity through projects like Bharatmala Pariyojana for road development, Sagarmala Programme for port-led development and several government initiatives like National Infrastructure Pipeline, National Monetisation Pipeline etc. This demonstrates the government's commitment to fostering growth in the construction sector and enhancing the overall quality of urban and rural life in India. All these initiatives are directed to attract investments, improve project execution and create employment opportunities. Overall, the infrastructure outlook for India is promising, despite facing headwinds such as regulatory and policy issues, funding and financing, skilled labour shortages, project execution & quality, sustainability and environment etc. This optimism is driven by government initiatives, increased private-sector participation and a focus on sustainable and inclusive growth. Continued momentum in infrastructure development is expected to contribute significantly to India's economic resilience and competitiveness on the global stage.

BUILDING THE FUTURE

During the year under review, we showcased robust financial and operational performance, reflecting our strategic growth initiatives and operational excellence. Our consolidated revenue surged to I 7,718 Crores, representing a 52% increase compared to the previous year. This substantial growth was complemented by a significant rise in our EBITDA, which increased to I 809 Crores, marking a 75% increase. Our profitability also showed an impressive growth of 120% to I 274 Crores over previous financial year. We have a very conservatively financed balance sheet with a healthy Net debt-to-equity ratio of 0.17x which demonstrates our prudent financial management practices. Our ability to secure new orders amounting to I 6,915 Crores in FY 2023-24 further showcases our market strength and execution capabilities. These new contracts have substantially reinforced our multi-year revenue visibility, culminating in an impressive order book of I 19,918 Crores as of March 2024. This extensive order book provides a solid foundation for future growth.

Major Orders Secured During the Year

• Design, Supply, Installation, Testing & Commissioning of Jamuna River Crossing Portion of Bogura-Kaliakair 400kV Double Circuit Transmission line in Bangladesh

• Construction of Balance Outer Harbour Works in Vizag, Andhra Pradesh

• Civil & Hydro-Mechanical Works of 500 MW Chitravati Pumped Storage project in Andhra Pradesh

Key Projects Completed in FY 2023-24

• Construction of Multi Modal IWT terminal for Haldia in West Bengal

• Construction of substructure for Pamban bridge in Tamil Nadu

• Construction of Refit Jetty and Allied Facilities at Port Blair in Andaman and Nicobar Islands

• Upgradation of passenger terminal building and airside facilities at Tiruchirappalli (Trichy) International Airport in Tamil Nadu

• Construction of new integrated, modification of existing and reconstruction of old terminal Building at Pune Airport in Maharashtra Our performance during this period is a testament to our strategic foresight, efficient project execution and commitment to quality. It positions the Company as a formidable player in the industry, well-equipped to navigate future challenges and capitalise on emerging opportunities.

THE POWER OF OUR PEOPLE

The heart of our success lies in our dedicated team, whose commitment and passion drive the Company forward. We nurture a culture that values excellence, collaboration, and continuous learning, ensuring we consistently deliver quality service to our clients. As we aim for rapid growth, our focus remains on attracting and retaining the best talent, creating a supportive and inclusive workplace and offering robust opportunities for professional development. Our team's dedication and expertise enable us to tackle challenges head-on and capitalise on new opportunities in an ever-changing business environment.

COMMITMENT TO SUSTAINABILITY AND COMMUNITY RESPONSIBILITY

At ITD Cementation, our corporate values are deeply rooted in sustainability and community responsibility. We understand the critical importance of environmental stewardship and are dedicated to contributing positively to the communities we serve. Our commitment to sustainability drives us to reduce our ecological footprint through efficient resource management and the adoption of eco-friendly practices.

We actively engage in initiatives that support social welfare, empower marginalised communities and promote sustainable development. By integrating sustainable practices into our operations and supporting social causes, we aim to create lasting positive impacts on both the environment and society. Our dedication to these principles underscores our mission to build a better, more sustainable future for all.

WAY FORWARD

Looking ahead, we remain optimistic about the future growth opportunities. We are committed to expanding our capabilities, exploring new growth avenues and capitalising on emerging opportunities in the construction sector. Our focus will continue to be on delivering superior shareholder value while adhering to the highest standards of corporate governance and sustainability.

I would like to extend my heartfelt gratitude to our shareholders, customers, lenders, business partners and employees for their support and dedication. Their commitment has been instrumental in our journey towards achieving greater heights.

In conclusion, I am confident that with our strong fundamentals, experienced leadership team and dedicated workforce, we are well-positioned to capitalise on future growth opportunities and deliver sustainable value for all stakeholders in the years to come.