Chairman
Dear Shareholder,
Let me start by sharing my views on the challenges the infrastructure industry is
facing today before penning various developments. The Indian macroeconomic environment has
looked turbulent during the past year, consequent to a deceleration in global economic
growth. India's GDP growth rate has slowed down to a decadal low, partly due to global
factors, but more on account of slow reforms and delays in implementation of projects in
the country.
Over the last quarter, the Government has taken various initiatives to boost
development of infrastructure in the country. These include setting up of infrastructure
targets for various sectors, putting in place an institutional mechanism to monitor and
hasten the progress of PPP projects at the Central and state levels and facilitating land
transfer between government agencies for PPP projects etc
However, the initiatives taken are not comprehensive and there are still multiple road
blocks that adversely affect infrastructure development.
The year 2012-13 tested the toughness and the inherent potential of industry players,
particularly in the construction and infrastructure space. Ramky Infra in its pioneering
journey had to deal with an overall environment dominated by high interest rate, sluggish
demand, liquidity issues and higher input costs. All these factors have exerted pressure
on the operating margins.
Notwithstanding these headwinds, the company's order book position remained largely on
track with closing order book of around Rs. 11,963 Crores. The company aims to position
itself among the top five leading Engineering and Construction companies in India and will
endeavour to achieve this objective by adopting global best practises in Corporate
Governance and Project Management. The company will endeavour for superior engineering
excellence, efficient procurement, timely delivery, risk management, resources
optimization at all levels while creating a professionally managed environment and also by
an inclusive approach of maximizing stake holder's satisfaction.
It has become important to gear up and upgrade the Company's internal capabilities
suitable to the external competition across its human, technical and capital resource base
to ensure that corporate goals are accomplished. Ramky Infra's vision is to constantly
strive towards sustainable development while contributing to India's growth and ensuring
maximum satisfaction to all the customers at the same time.
At Ramky Infra, we endeavoured on a journey of growth and change that helped in
transforming ourselves into a world class organization. To facilitate this growth plan and
to make every employee cherish, Ramky Infra as their destination for employment as well as
career growth, we have embarked on a journey aptly titled 'Operation Future Bright'. Under
the banner 'Operation Future Bright', we implemented two Business Applications.
1. Employee management application - Human Resource Management Information System
(HRMIS)
2. Business Solution-ERP Application-SAP
Coming back to the annual consolidated results, the annual report of the Company gives
an outline of the operations of the company in its sphere of activity. Here are some key
figures on a consolidated basis:
• The operating income in FY2013 stands at Rs. 3,773.55 Cr
• EBIDTA for FY2013 is Rs. 585.98 Cr
• Profit after tax (PAT) for FY2013 is at Rs. 151.26 Cr
• Basic earnings per share (EPS) for FY2013 is at Rs. 26.44
During the year, Ramky Infra was adjudged as the "Fastest Growing Construction
Company" (Large Category) in the Construction World Annual 2012 study .In addition,
various awards were from esteemed industry forums are a testimony to the excellence of the
company:
• 5th CIDC Vishwakarma Awards 2013 in the categories of Best Professionally
Managed Company and Best Construction Project for 87.5 MLD STP Koparkhairaine, Mumbai.
• D&B Axis Bank Infra Awards 2012 for the Construction of Regulator Cum
Bridge at Chamravottam, Kerala under the Best Construction Project, Irrigation category.
• 11th Greentech Safety Award 2012 "SILVER AWARD" in construction
sector for in the Outstanding Achievement in Fire & Safety Management category.
Ramky Infra through its CSR arm, Ramky Foundation continues to play its role as a
responsible corporate citizen by taking initiatives both, at the corporate level and
across its various project sites to undertake and partner in projects relating to
community welfare and development. The year 2012-13 was another year to fulfill the dreams
of Ramky Infra to serve the people and planet. These efforts were recognized as the
Company was presented with the 2nd Annual Greentech CSR Award 2012 in the silver category
under service sector. Apart from these social initiatives, Ramky Foundation with an
endeavour to revive and protect the Telugu Art Forms and Culture has organized the Second
World Telugu Mahotsavam 2013 at Sydney, Australia.
At Ramky Infra, the Management Team is focused on strengthening its presence across the
present operating verticals, venture into niche area of business, capitalize on new
opportunities and invests in growth with prudence. I believe this strategic approach will
pave way for continued performance in the years ahead.
Finally and importantly, we owe a word of special thanks and gratitude to our entire
stakeholders constituting our investors, shareholders, customer groups and bankers. We
will strive to meet each of our stakeholder's expectations and towards this, I seek your
continuing support and goodwill.
With warm regards
Alla Ayodhya Rami Reddy
Executive Chairman
Ramky Infrastructure Limited