Dear Shareholders,
As we celebrate the significant milestone of completing 75 years of our Company's
existence, with immense pride and gratitude we address you through this annual report.
Over the decades, our journey in the realm of infrastructure development, particularly in
executing hydropower projects and civil constructions across India, has been one marked by
resilience, innovation and unwavering commitment to excellence. Since our inception, we
have been driven by a vision to contribute meaningfully to the nation's progress by
harnessing the power of sustainable infrastructure.
Today, as we reflect on our journey, we take pride in the transformative impact our
projects have had on communities, economies and the environment. Our Company stands at the
forefront of this transformative journey. Since our inception, we have upheld a legacy of
excellence, delivering projects that redefine industry standards. From hydropower
installations to underground tunnelling works, our commitment to quality and reliability
remains unwavering. Our journey has been defined by a steadfast commitment to excellence,
driven by the recognition that our actions today shape the world of tomorrow.
As we commemorate this significant milestone, I would like to extend my heartfelt
gratitude to our employees, whose hard work, dedication and ingenuity have been the
driving force behind our success. Their commitment to excellence, even in the face of
adversity, has been instrumental in overcoming challenges and achieving milestones. I
would also like to express my appreciation to our clients, partners and stakeholders for
their continued trust and support. It is their collaboration and shared vision that have
enabled us to overcome obstacles and achieve remarkable feats in the field of
infrastructure development.
India's vision to become a developed nation by 2047 hinges on robust infrastructure
development. The government's initiatives to foster a business-friendly environment and
streamline regulatory processes are pivotal for the sector's growth. Our company is
aligned with India's ambitious target of becoming a developed nation and is poised to take
advantage of participating in building of various upcoming infrastructure projects which
shall be part of India's steps towards becoming a developed nation, especially the
renewable energy targets, which include achieving 50% renewable energy by 2030 and net
zero emissions by 2070. Our Company is currently executing civil constructions for
hydropower projects in India totalling around 8 GW, representing 45% of current hydropower
projects currently under development in India. The
2024 interim Budget allocates significant funds to power sector initiatives, reflecting
substantial investment in the country's energy infrastructure. The
Ministry of Power has identified 133 GW of total potential for hydro power in India out
of which only around 45 GW has been harnessed so far and hence, there is a huge scope in
this arena going forward in the upcoming years and our company is geared up to take a
substantial part in construction of large hydro power projects which are being developed
by Central PSUs in India and Nepal.
Pumped Storage Projects (PSPs) are also coming up in huge way with more than 40 GW of
projects being pursued to be commissioned by 2029 - 30 as the same is identified to be
essential for addressing the shortfall in the peaking power requirements of the Country.
The government has also taken various steps in order to ensure that PSPs get commissioned
on a fast track, thereby accelerating the growth of India's renewable energy capacity
requirement of which is poised to grow substantially in future as the GDP of the country
is expected to grow around 8% p.a. at least for the next decade. Hence, this avenue also
brings up a large opportunity for our company to participate and contribute towards
development of the nation and also take itself to the next level of growth. In irrigation,
the Ministry of Jal Shakti got the major chunk from this year's budget outlay as Finance
Minister Nirmala
Sitharaman allocated 9,84,180 million in the interim budget for 2024-25 with its
flagship Jal Jeevan Mission getting a 71% share as well as the Pradhan Mantri Krishi
Sinchayee Yojana is aimed to benefit 22 lakh farmers with a 9,30,680 million outlay.
Tunnel construction in India has picked up pace in the last decade due to factors like
upgrading the water supply & sewerage system, expanding the road & rail network,
apart from the traditional tunnelling for hydro power projects, where maximum tunnels have
been built with 875 tunnels spanning
2,600 km in the pipeline. Our company is well-positioned to seize these emerging
opportunities.
With such opportunities coming up, we should look forward to more than double the size
of our company operations in next 5 years.
"Enhancing Connectivity and Powering Progress with Strategic Infrastructure and
Tunnel Breakthroughs."
The past year has been exceptional, marked by several key project milestones:
• Sela Tunnel Project: Completed under Project VARTAK of the Border Roads
Organization (BRO) and inaugurated by Prime Minister Shri Narendra
Modi, this 6,500 million project exemplifies India's commitment to bolstering border
security and regional economic development. I would like to congratulate the entire team
who was relentlessly working in harsh weather conditions where temperatures fell below -15
degree Celsius in peak winter months and the movement of man and machinery was a
challenging task. The Sela Tunnel is the world's longest bi-lane tunnel in the world at an
altitude of over 13,000 ft and it has also been recognized as the highest tunnel in the
country by the International Book of Honour, England.
• Keoti-Antagarh-Taroki New Rail Line Work: The Company successfully completed the
second phase of the project, covering the section from Antagarh to Taroki and received
approval from the Commissioner of
Railway Safety (CRS) on August 21, 2020. The first phase, from Keoti to
Antagarh, was successfully completed and approval was received from CRS on
August 21, 2020.
• Breakthrough at various project sites:
The Company successfully completed the diversion tunnel breakthrough of a total length
of 698m at Kwar
Hydroelectric project site, while at our Arun-III Hydroelectric project site located in
Nepal we completed the Head Race Tunnel (HRT) works between Face 6 and Face 7 having a
length of 3,513.5m out of 8,670m of the total length of the project. We also achieved a
breakthrough at Tunnel
T-15 project site located in Jammu &
Kashmir where we completed mining works for 4.58 Km out of 6.28 Km of Tunnel T 14 which
is part of this project as well as at Tunnel – 7 project site which is being executed
for Ircon International Ltd. We achieved a double breakthrough on a single day at face P-1
and P-2 of the project.
These achievements highlight our leadership in delivering impactful infrastructure
solutions and reflect our team's dedication to excellence and innovation.
Our financial performance in FY24 has been robust. We reported revenues of
45,441.08 million, reflecting a 16.78% year-on-year growth. Our operating
EBITDA rose to 6,902.94 million, a 22.92% increase from the previous year. Notably, our
net profit surged to 2,641 million, a remarkable 70.60% year-on-year growth.
Basic EPS from continuing operations increased to 3.64, indicating our commitment to
enhancing shareholder value.
In recent years, the Indian government has been actively pursuing measures to bolster
the balance sheets of infrastructure companies with introduction of schemes like
Vivad-se-Vishwas for settlement of pending disputes related to Government contracts which
were under on-going arbitration. Our Company has filed for various settlement amounts
under this scheme and in the last year we have realized around 1,300 million through
settlement of arbitration awards. The Company still has arbitration awards of around
12,000 million as of end of FY
24 and expect to realize further amounts under this scheme in the current financial
year as well. With this monetization, the Company looks to reduce the debt burden further
and also utilize these proceeds to improve working capital efficiency for on-going and
future projects. This includes the International Arbitration Award won by the Company for
Mauritius project and we are proud to announce that the Company has received around 1,500
million in the first quarter of this financial year against this international award.
Also, we have successfully completed fund raising of 4,000 million through Qualified
Institutional Placement (QIP) in Q1 FY 25 which shall further enhance our financial
position and hence make us ready to reduce debt further from the current levels of around
18,855 million and also contribute towards the working capital requirements of the current
and upcoming orders.
"A robust 1,86,630 Million Order Book with a diversified portfolio across
hydropower, irrigation, tunnelling and roads."
In FY24, we secured nine new projects amounting to 40,273 million, which includes
projects like the Dibang Multipurpose Project, CIDCO water tunnel project, Narmada Gambhir
Multi-village drinking water supply scheme project and Sher Micro-irrigation project along
with other projects. Our order book is robust & diverse with 61% comprising hydropower
projects, 21% irrigation projects, 11% tunnelling and balance in road and urban
infrastructure projects, with an order books size of 1,86,630 million.
With anticipated orders in FY25 and a heightened focus on infrastructure, we are well
poised for significant growth. We have also strengthened our equipment fleet to ensure the
successful execution of future projects.
Our company has been a trailblazer in technological innovation, being the first Lake
Tapping Company in Asia, the first
Micro-tunneling Company in India and among the few Indian companies with expertise in
constructing RCC Dams having constructed the first RCC Dam in India and then recently
building up the tower crane and belt system for pouring concrete to build dams faster and
in an eco-friendly way by reducing the consumption of diesel and reducing pollution caused
otherwise if using dumpers instead.
"Focused on People, Technology and Sustainability."
Looking ahead, we remain steadfast in our commitment to innovation, sustainability and
excellence. As we embark on the next phase of our journey, we are excited about the
opportunities that lie ahead and confident in our ability to continue making meaningful
contributions to India's infrastructure landscape.
In conclusion, as we celebrate 75 years of our Company's existence, let us not only
reflect on our past achievements but also reaffirm our commitment to shaping a better and
sustainable future. Together, let us continue building a nation that we can all be proud
of and elevate our Company to unprecedented heights with limitless potential and infinite
possibilities.
Thank you for your continued support. Warm regards,
Mr. Rupen Patel
Chairman & Managing Director