J Kumar Infraprojects Ltd

Dear Shareholders,

As we embark on a new chapter, we stand at the threshold of a transformative phase that holds the promise of unparalleled growth. With a legacy spanning across four decades, we have evolved into a dynamic force, poised to ascend to even greater heights. The current juncture is particularly exhilarating, as we are propelled by the winds of change ushered in by progressive government reforms and a resolute drive to fortify our nation's foundation. This momentous juncture is further accentuated by our robust order book, a testament to the trust reposed in our capabilities. Amidst the global economic uncertainties, a persistent sense of optimism pervades India.

The government remains committed to its path of growth propelled by infrastructure development, consistently investing in CAPEX. Our performance trajectory in recent years stands as a testament to our steadfast approach and solid groundwork.

India stands out as a radiant beacon among emerging economies, illuminating its path to growth through a remarkable convergence of factors. Central to this brilliance is its resilient domestic demand, which acts as an engine propelling the economy forward even in the face of global uncertainties. The nation's steadfast commitment to bolstering its future is evident in the robust increase in government capital expenditure, a strategic move that not only drives infrastructural development but also fosters job creation and technological progress. Additionally, India's recent strides in reinvigorating private investment further amplify its radiance, as nascent signs of revival indicate a renewed sense of confidence among businesses and investors. The upward trajectory of government spending at both state and central levels significantly contributes to this radiance, ensuring a conducive environment for growth and prosperity. In this landscape,

India emerges as a shining example of balanced economic strategies and resilience, standing tall among its peers in the realm of emerging economies.

India's infrastructure narrative unfolds as a beacon of promise, propelled by a convergence of remarkable factors that illuminate a path towards comprehensive growth and prosperity. The surge in capital expenditure, escalating from 1.7% of GDP in 2014 to a robust 2.9% in the fiscal year 2022-23, showcases the unwavering commitment to fuelling last-mile development. This momentum is reinforced by the noteworthy allocation ofRs. 10 lakh crore (3.3% of GDP) in the 2023-24 budget dedicated to infrastructure-a threefold leap from 2019. Beyond the numerical aspect, this allocation forms the cornerstone for the realization of India's ambitious $5-trillion economy vision, advancing inclusive development and ushering in the era of ‘Amrit Kaal'.

Focused projects like Bharatmala Pariyojana and PM Gati Shakti underscore the dedication to weaving a connected fabric that bridges regional disparities and bolsters growth. This transformational journey doesn't merely prioritize growth but also embraces the principles of green growth, harmonizing economic advancement with environmental sustainability. In the face of rapid urbanization, the creation of the Urban Infrastructure Development Fund assumes paramount significance, nurturing modern infrastructure in Tier 2 and Tier 3 cities. Collectively, these strategic endeavours position India's infrastructure expansion as a holistic endeavour, marking the nation's ascent towards progress that is both far-reaching and enduring.

The performance in FY‘23 stands out, driving our profitable growth and cementing our role as a prominent urban infrastructure EPC company. Anticipation is high as we gear up for another strong year, maintaining steady EBITDA margins and debt levels. Our project execution remains robust, focusing on value creation for stakeholders. Operational revenue for FY ‘23 surged by 19% to Rs. 4,203 crore from Rs. 3,527 crore in the previous year. EBITDA for FY ‘23 grew by 18% to Rs. 597 crore, while PAT rose by an impressive 33% to Rs. 274 crore. The PAT margin for FY ‘23 was 6.5%, up from 5.8% in FY ‘22. As of March 31, 2023, our order book totals Rs. 11,854 crore, with the Metro project contributing around 53%, and flyovers, bridges, roads accounting for 32%, while the rest comprises other projects.

Our forward-looking approach, grounded in innovation, has paved the way for these impressive results. By harnessing modern-day equipment and maintaining an owned fleet, we have effectively lowered our operating costs while expediting the turnaround time (TAT) for intricate infrastructure projects. This strategic focus on innovation has directly contributed to our financial achievements.

As we step into the future, we embrace the opportunities that lie ahead with unwavering determination, confident in our ability to shape the landscape of India's infrastructure in a manner that befits its soaring aspirations.

In closing, I want to express my sincere gratitude to the Board, management team and our dedicated workforce at J. Kumar. This past year, marked by its challenges, has truly highlighted your incredible efforts. Your unwavering commitment and tireless work have been instrumental in driving our achievements. As we step into the future, I extend my heartfelt thanks to each and every one of you foryour invaluable contributions. It is through our collective dedication that we will forge ahead, confident in our ability to overcome obstacles and achieve even greater milestones.

Jagdishkumar M. Gupta

Executive Chairman