Dear and Esteemed Fellow Shareholders,
It is with immense pride that I present to you the 43rd Annual Report
of our Company, KPIL. FY24 marked a crucial milestone for us, solidifying the foundation
of the merged entity for robust and sustainable performance in the years to come. Despite
the challenges posed by market volatility, our journey of growth and value creation
persisted unabated throughout fiscal year 2024.
I extend my heartfelt gratitude to each of you for your trust and
support in KPIL. Your continued confidence inspires us to strive for excellence and has
enabled us to grow into a formidable force in the engineering and construction industry,
establishing ourselves as one of the leading global EPC players.
Company performance in FY24
If there is a predominant theme that defines our current world, it is
one of pervasive uncertainty. The global economy in 2023-24 has exhibited a complex
landscape, oscillating between uncertainty and recovery. While some regions have shown
signs of economic rebound post- pandemic, persistent challenges such as inflationary
pressures, geopolitical tensions, and supply chain disruptions continue to impact growth.
Despite these challenges, KPIL continued its growth trajectory in
FY2024, delivering robust performance. The strategic amalgamation of JMC Projects (India)
Ltd with the company has significantly strengthened KPIL's position in
six high- growth sectors, establishing it as one of the most valuable brands in the EPC
industry, with an all-time high order book of H58,415 crores.
In FY24, the company achieved its highest-ever Consolidated Revenue and
EBITDA of H19,626 crores and H1,628 crores, respectively, highlighting the effectiveness
of our execution strategies and the strength of our diverse business portfolio. Despite
rising costs, we have maintained high-quality earnings, achieving an impressive EBITDA
margin of 8.3%. We have seen a 19% surge in secured orders compared to the previous fiscal
year, amounting to a notable H30,022 crores as of 31st March, 2024.
This growth is attributed to our strategic orders of large-scale
projects in diverse sectors such as Oil & Gas, underground metro tunneling, data
centers, design- build Building & Factory projects, and Transmission &
Distribution projects, spanning both domestic and international markets.
These achievements underline our commitment to enhancing execution
capabilities, building a resilient and diversified business portfolio, and strengthening
our market position in high-growth EPC sectors. Despite a 20% growth in revenue, our
company has maintained stable net debt at H2,591 crores, primarily due to efficient
working capital management and improved operating cash flows.
I am also pleased to announce that, in line with our commitment to
delivering value to our shareholders, we have proposed a dividend of H8 per share,
resulting in a dividend payout ratio of ~26% for FY24.
Engineering Excellence
>At KPIL, excellence guides our journey, leaving no room for mediocrity.
As an organisation, we take pride in our ability to engineer 'Excellence' across all
aspects of our operations and consistently demonstrate our commitment to excellence in the
field of 'Engineering'. We consistently aim for top quality, precision, and innovation in
all our projects, ensuring we exceed client expectations with the highest safety and
efficiency standards.
In this age of advanced digital technologies, we are committed to
continually transforming KPIL into an organisation that fully realizes human- machine
synergies. By fundamentally rethinking design and automating routine tasks, we strive to
achieve the optimal balance between people, technology, and processes.
To further our mission, we are setting up a Design Centre of Excellence
to enhance our engineering capabilities and solidify our position as leaders in delivering
efficient and safe solutions.
Roadmap for Responsible Growth
At the core of our operations is our commitment to shaping a more
sustainable future and building a better world for generations to come. We are
wholeheartedly dedicated to catalysing positive change in our industry by prioritising
sustainability across all facets of our operations.
Our transformative journey focuses on achieving carbon neutrality by
2040, water neutrality by 2032, and a circular economy by 2035. These ambitious goals will
serve as a roadmap for responsible growth. Through innovative practices, green
technologies, and responsible resource management, we will lead the way towards a more
sustainable future, one project at a time.
People-first Culture
Our people-first culture - investing in talent while expanding our
global workforce to seize market opportunities - is integral to our approach. As a
company, we believe in growing together as a family, with our employees as our most
valuable assets. Their determination to uphold the integrity of our organisation at all
times and foster a spirit of teamwork highlights that we are united by a common vision. It
is this collective sense of purpose that fuels our drive to excel in all our endeavours.
My heartfelt gratitude to all our employees worldwide for their invaluable contributions
to the organisation.
In closing
I extend my sincere appreciation to the Board of Directors for their
continued guidance and wisdom. I also seize this opportunity to express my gratitude to
every stakeholder of KPIL who has played a pivotal role in our success and believed in our
value proposition. To our esteemed shareholders, investors, administrative authorities,
valued customers, supportive lenders, and trusted vendors—each of you is integral to
KPIL, and our journey would be incomplete without your support.
Our journey towards becoming the leading global EPC major is on course,
and I have utmost confidence in our leadership team to actualise this vision.
With best wishes,
Mofatraj P Munot
Chairman, Kalpataru Group