Dear Stakeholders,
We have completed a financial year that has been of great significance
both in terms of company?s milestone and macro-economic development in the country. I
am pleased to get this opportunity of sharing with you our company?s performance,
strategic initiatives and outline of planned endeavor in near future. Every time when I am
presenting the REPL?s annual report to you, I get overwhelmed with your continuous
support in our endeavor and faith that you entrust in REPL growth story. Successively for
multiple years, we have been showing growth in our top-line figure. In addition to the
turnover, we have shown positive movements on key financial parameters such as EBIDTA, PAT
and EPS. This financial year (FY 2023-?24) also, we have registered a healthy growth
and for the first time crossed the turnover of symbolically significant figure of Rs. 100
Crores! This makes a very important milestone of our collective journey. Now we are in a
bracket that could prove to be a tipping point for us in terms of entering into next big
circle. Beyond numbers, this gives all of us a much needed psychological push to take the
company towards our vision of making REPL an India-based MNC. We have been gradually
shaping our systems and business model in such a manner that we gear up to achieve that
goal. It is a process that will take its own time, but we are happy to be moving steadily
on that path. In continuation of our successful acquisition of projects, we have added new
news assignments to our portfolio; some of which include- Function plan on Education &
Skill development in NCR; Development plan of Chennai outer ring road growth corridor,
Water supply scheme for Badrinath Dham; Megapolis Hi-Tech Township, Gautam Budh Nagar;
Akkalkot Tirtha Kshetra Development etc. While we have diversified into new segments, we
have also ensured that the spread is across the regions. The diversity is also in terms of
clientele from the government sector as well as corporates. As a result of consistent
addition of projects, our Order Book stands robust at 375+ crores. This gives us
multi-year revenue visibility and cash flow assurance. Let me appraise you of few
important initiatives taken by the company during the financial year that will have
lasting impact on our business in short-and-long term.
Geo-Engineering (RGEPL): REPL has formed a new subsidiary RGEPL
(Rudrabhishek Geo Engineering Pvt. Ltd.) by entering in partnership with GECPL (GEO
Engineering Company Pvt. Ltd.). This is a very significant strategic alliance that will
trigger a disruptive growth opportunity for our company. These services have application
in wide range of industry segments such as Residential Buildings, Muti-storied structure,
Dams, Power Projects, Water Supply Projects, Tunnel Projects etc. There are not many
companies in this segment which can take up such critical activities as these require
availability of highly skilled technocrats, proven experience, sophisticated machinery and
latest technological applications. In a way, this is a segment with a very high level of
entry barrier, which provides a decisive competitive advantage. Because of huge emphasis
on infrastructure by the Government of India, massive constructions works are underway.
All these projects require geo-engineering services. RGEPL already has healthy client
presence in South Indian states. By establishing a dedicated team, now we are leveraging
REPL?s credential for RGEPL in North India and other parts. Once we have made our
base in terms of client network and team placements, we will start harnessing its benefits
on significant scale. This will be a very decisive initiative in the forward integration
of our existing business. In line with our long term approach of inorganic growth, we are
in constant lookout for the opportunities of strategic acquisitions, investments or
alliances in the companies of complimentary expertise within infrastructure domain that
could bring vertical or horizontal integration in our existing service areas. We firmly
believe that such associations will result in multiplier growth as a result of leveraging
mutual strengths. Formation of RGEPL was one such business move in previous year.
RAD: In this financial year, we have formed another subsidiary RAD
(Rudrabhishek Architects & Designers Pvt. Ltd.). Through RAD, we have already signed a
MoU for project management consultancy assignment to a tune of INR 240 Crores, and EPC
contract of approximately Rs. 100 Crores in South India. Over next few years this will
have significant impact on our book building and revenue generation. For the project, team
deployment will commence in second quarter of FY-‘25. Since the project in large in
scale and requires dedicated attention spread over a span of few years, and also to avail
certain tax benefits, it will be executed through formation of an SPV (Special Purpose
Vehicle), which is RAD.
FusionHub ERP Solutions: We, at group company level have always
focused on advance technology and its application for bringing operational efficiency as
well as cutting-edge competitive advantage among peer group companies. Our subsidiary
company RIPL is making focused intervention in brining ‘digital solutions for AEC
(Architecture, Engineering & Construction) industry?. Now the RIPL has launched
its own software FusionHub, a cloud-based ERP Solution. This has been designed and
developed specifically for ACE sector companies, considering their specific business and
operational requirements. Thorough market research activities were undertaken to
understand the precise needs and pain points of the industry in resource planning. This
software is AI enabled, making it attuned to most advanced technological innovations. The
BI (Business Intelligence) enabled process analysis tool has already been deployed in the
company.
SM REITs: Our organizational history of more than three decades
clearly exhibits our successful track record of catching emerging trends at very early
stage and then riding on its growth wave. We have been closely monitoring the developments
in the real estate sector which has undergone massive shift in last ten years or so. The
future of Real Estate industry is likely to be dominated by REITs (Real Estate Investment
Trusts). However, till now the minimum ticket size allowed by the regulators was so high
that it could attract only limited participation. Now SEBI has allowed the provision of
Small & Medium REITs (SM REITs), which is going to change the industry scenario. SM
REITs now offer investors the opportunity to engage in fractional ownership of
income-generating real estate assets, thereby broadening investment prospects within the
real estate sector. Size of market in this new segment will help in our Real Estate design
vertical and PMC in a big way. As per industry reports, current valuation of India?s
fractional ownership market in real estate stands at approximately $500 million, with
forecasts indicating a potential tenfold growth over the next five years. Realizing that
it is opportune moment to catch the next wave in real estate industry, we have started
process of getting into management consultancy for SM REITs. Depending on further
explorations and nature of opportunity presented to us, we will _ne tune the nature of our
intervention in this segment. Even if we capture a small portion of this emerging market
segment, this will prove to be decisive for our future growth. Considering our extensive
expertise in managing real estate projects of varied nature and scale, we are highly
optimistic about pulling it off successfully. Apart from the focus on our core business,
we have been constantly upgrading our technological infrastructure and improving on our
human resource management. We are aware that to attract the best talent from the industry,
our organization culture has to be second to none. We encourage constant skill upgradation
of our team through external or internal trainings programs. To ensure our constant
presence in policy making circle, we are actively engaging with the apex industry chambers
in the country, as well as several ministries of the central government. That way we
attempt to get our concerns incorporated in any major policy shift within the industry.
This is critical to our business that we keep our systems in tune with the emerging trends
and evolving industry demands. This year we have done few key leadership hiring and
strengthened our top level management. For catering specific business objectives, we also
did thorough internal restructuring of the team and optimized our operational efficiency.
I once again thank you on behalf of the all the Board Members and assure you of all
possible efforts in maximizing value for each stakeholder in the REPL group.
Sincerely,
Pradeep Misra CMD – REPL