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SPML Infra Ltd

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BSE Code : 500402 | NSE Symbol : SPMLINFRA | ISIN : INE937A01023 | Industry : Infrastructure Developers & Operators |


Chairman's Speech

SUBHASH SETHI

Chairman

SPML Infra Ltd.

Dear esteemed shareholders,

It is with immense pride and gratitude that our Company has completed another successful year in business. This annual report serves as a testament to the relentless efforts and dedication of our entire team, from the boardroom to the construction sites, who have worked determinedly to shape the future of our nation's water landscape. It will reflect upon the achievements, challenges, and aspirations of our esteemed organization in the fiscal year 2022-23.

The Indian economy exhibited robust resilience in 2022-23 amidst a global turmoil following the war in Ukraine. It recorded a growth of 7%, the highest among major economies in the world. The infrastructure sector witnessed the highest capex allocation, total cost of projects sanctioned by banks and financial institutions during 2022-23 increased to a record high of Rs.2,66,547 crore, highlighting the effect of the government's efforts to push for robust infrastructure development. A Reserve Bank of India (RBI) report suggested that the infrastructure sector continued to attract the maximum capex projects.

Over the past year, we have continued to uphold our commitment to delivering world-class projects that redefine the landscapes of clean drinking water to people. Our unwavering focus on quality, sustainability, and cutting-edge technology has enabled us to overcome hurdles. From groundbreaking bulk water supply project in Gujarat to water loss management project in Bengaluru, our projects stand as testimonials to our dedication to water sector and transforming projects into sustainable and tangible realities.

I am elated to share that we have made substantial progress. We've sharpened our focus on water segments and completed a number of water supply projects in Rajasthan, Gujarat, Delhi, and Manipur. These projects have helped us providing clean drinking water facilities to several million people in these states. During the year we have also completed a number of power substation projects funded by the World Bank, in Tripura, that have helped our esteemed clients to augment the quality of electricity supply in the designated areas, thus illuminating the lives of people. By adopting smart technology for project and operational management, we've positioned ourselves to ensure consistent project delivery.

It was an immense pride for us that we were chosen to play a pivotal role in the nation's water infrastructure development under the Jal Jeevan Mission. During the year, we were entrusted with a number of new projects under this flagship scheme in different states. I am confident that these high value projects, along with several others coming our way will help our company to write a new story of accomplishments and pride.

We are infusing innovation and modern technology and streamlining our processes to seamlessly execute projects and transitioning them into the digital realm. We have made substantial investments in advanced tools, automation, and digital platforms that have helped us for having seamless collaboration among project, procurement and finance teams. This collaborative approach empowered the Company to monitor each project's progress individually, identifying risks, and make well-informed decisions with the use of real time information. Our long term objective is to achieve incomparable project execution efficiency and enhanced productivity.

I am happy to inform you that the Company is recognised for its deep industry knowledge, integrated value proposition, sound business practices and strong project delivery parameters through a coveted Infra Focus Awards 2022 as Most Admired Company in Water Infrastructure conferred to us by The Economic Times. It is also moment of pride for us that our company has been featured amongst India's Top 100 Real Estate and Infrastructure Companies, according to a report published by the leading industry publication, Construction Week. Considering the extraordinary growth that we have achieved, it's no wonder that our Company is counted among the Best Infra Companies in India. The result is that SPML Infra has been an innovator and pioneer in India's water infrastructure sector. It is also a preferred partner for a number of esteemed departments and agencies under the aegis of central and states' governments and bilateral organizations for water related projects.

The health, safety, and well-being of our team members have remained paramount. We have implemented robust safety protocols to ensure the protection of our employees at all our project sites. Their unwavering commitment has been instrumental in driving our projects forward, even in the most challenging conditions.

Environmental sustainability has always been integral part to our business philosophy. As responsible corporate, we have integrated eco-friendly practices into our operations and management and using renewable sources as much as possible, reducing our carbon footprints and contributing to the development of greener and more sustainable future. Our social responsibility initiates has also been unwavering, as we continue to invest in healthcare, and other community development initiatives.

As you are aware, the past three years have been significantly challenging for the infrastructure sector in India. Naturally, these challenges have had an impact on our Company's performance as well. However, despite these obstacles, the Company has managed to maintain profitability and sustain growth, albeit at a slower pace. In the fiscal year 2022-23, our recorded revenue stands at Rs. 883.14 Crore, accompanied by a profit of Rs. 2.93 Crore. This positive trajectory is indeed a favourable development, especially considering the Company's unfavourable profit figures in the previous fiscal year, primarily attributable to unforeseen circumstances.

My optimism remains steadfast, rooted in the fact that our Company has navigated even more formidable challenges in the past, during times when the organization was smaller and more vulnerable. Yet, we confronted those trials and emerged with increased strength. Our Company has since grown into a larger and more robust entity, and I have full confidence in both the resilience of our business model and the resourceful spirit of our team to successfully navigate this challenge as well.

As we move forward and embark on the next fiscal, I am confident that our values, our experiences, our strategies, and our people will continue to propel us to newer heights. Our collective efforts, guided by a shared vision of excellence, will ensure that we remain at the forefront in the water industry.

I extend my heartfelt gratitude to everyone who has played a part in our achievements this year. My gratitude to the board of directors for their valuable guidance, to our esteemed clients for continuing their trust on us, our bankers for their unwavering support, our supportive partners and suppliers, our dedicated employees, and our esteemed shareholders for being an integral part of our journey.

Your dedication, hard work, and belief in our mission are truly inspiring. Let us move forward with renewed energy, confidence in our ability to shape a brighter water future of the nation through our endeavors.

Warm regards,

Subhash Chand Sethi

Chairman