Our Company continues to have a strong order book which, at the end of
financial year 2023-24 stood at Rs. 3,009.92 Crores. The Company has been awarded various
new projects in 2023-24, including in joint venture.
Dear Valued Shareholders,s
It gives me great pleasure to present the 29th Annual Report and annual
performance of the Company for the Financial Year 2023-24.
India's rapid economic growth has positioned it as one of the
fastest-growing major economies in the world. The nation's rise is fuelled by several
factors, including its large and youthful population, increasing urbanization and
expanding digital infrastructure. With a robust democratic framework and strong global
partnerships, India is expected to become one of the top-three economic powers globally
within the next 10 to 15 years.
This trajectory is supported by ongoing reforms in various sectors,
increased foreign direct investment, and a focus on technology and innovation, making
India a key player in the global economy. India's emergence as an "Oasis of
opportunity" amid global turmoil highlights its resilience and attractiveness as an
investment destination. Despite facing challenges such as geopolitical tensions,
pandemic-related disruptions, and global economic uncertainties, India has maintained a
stable and positive outlook.
India's strong economic performance, with an annual GDP growth
rate of more than 7% for the past three years, highlights the country's economic
resilience and the effectiveness of its policy measures. This sustained growth
demonstrates India's ability to navigate global challenges while continuing to expand
its economy. Key factors contributing to this success include structural reforms,
increased investment in infrastructure, and a focus on technology and innovation, all of
which have strengthened India's position as a leading economy.
Major Highlights of Union Budget 2024-25
(a) The Indian government's allocation of INR 11.11 lakh crore for
the infrastructure sector aligns with its vision of "Viksit Bharat" or
"Developed India." This significant investment is expected to drive the
development of key infrastructure projects across the country, including roads, railways,
ports, airports and urban infrastructure.
(b) The Indian government has announced an initiative to provide
interest-free loans to state governments. This measure is intended to support states in
their developmental activities, especially in areas like infrastructure, healthcare,
education and social welfare programs.
Your Company continues to have a strong order book which, at the end of
financial year 2023-24 stood at Rs. 3,009.92 Crores as compared to Rs. 3,200 Crores in the
financial year 2022-23. The Company has been awarded various new project in 2023-24,
including in joint venture. Your Company's contracts are from the Government who are
the safest customer and provides stability even in the most challenging times. Further,
given the importance laid down by the Government to the infrastructure sector owing to it
being a catalyst to growth, we expect that the Company would also stand to benefit and we
look forward to improve performance in the years ahead.
Performance Review
Your Company performed well and increased its revenue by 32.54% and
profitability by 152%, respectively, during the year 2023-24. Your Company registered a
good performance in the fourth quarter and is expected to maintain the same growth in the
coming year. With a
Your Company is hopeful that the emphasis of the Government on the
infrastructure industry, the Company's execution capability linked to its focus on
Government projects would yield better results in the coming times.
strong order book, we are positive about the current financial year
that will likely be the best year for our Company after the pandemic and the economic
slowdown.
Networth of your Company increased to Rs. 414.62 Crores as on 31st
March 2024 as compared to Rs. 342.59 Crores as on 31st March 2023.
On standalone basis, your Company's total revenue increased to Rs.
1,332.39 Crores in 2023-24 as compared to Rs. 1,005.25 Crores in 2022-23. Total cost
Increased to Rs. 1,286.23 Crores in 2023-24 as against Rs. 988.62 Crore in 2022-23. EBITDA
for 2023-24 stood at Rs. 115.28 Crores as compared to Rs. 61.20 Crores in 2022-23. Profit
after tax for 2023-24 stood at Rs. 65.51 Crores as compared to Rs. 25.99 Crores during
2022-23.
On consolidated basis, revenue stood at Rs. 1,353.41 Crores in 2023-24
as compared to Rs. 1,040.33 Crores in 2022-23. Total consolidated expenses stood at Rs.
1,318.87 Crores in 2023-24 as against Rs 1,024 Crores in 2022-23. Profit after tax for
2023-24 stood at Rs. 57.20 Crores as compared to Rs. 28.96 Crores in 2022-23.
Your Board has discussed the situation prevalent in economy vis-a-vis
the Company's fund requirement and has decided to conserve resources to meet out the
requirements and maintain liquidity. Accordingly, the Board has decided against the
recommendation of dividend for the financial year ending 31st March 2024.
The Company continues to have a diversified presence in highways, roads
& bridges and civil constructions in water management, irrigation and power projects.
The Company continues to be driven by its strategy of small and mid-sized Government
projects with short tenure and its superior project execution skills provide strong
revenue visibility. Further, fast turnaround remains the core principle of the Company.
Outlook
Your Company is positive about 2024-25. India's GDP is expected to
be around 7% in financial year 2024-25 as per the estimates of IMF and the forecast
underscore India's emergence as a bright spot for global growth despite inflationary
pressures and global uncertainties.
Your Company's total revenue in the first quarter of June 2024 was
Rs. 336.12 Crores as compared to Rs. 238.57 Crores of June 2023. We are committed to
continuing this positive trajectory and achieving even better results in the future.
Further, your Company is hopeful that the emphasis of the Government on
the infrastructure industry, the Company's execution capability linked to its focus
on Government projects would yield better results in the coming times.
I would like to thank all our customers, vendors and other stakeholders
for the confidence and trust in the Company. I acknowledge and thank Board members and
employees for their invaluable support. This support and confidence continues to motivate
us to achieve better performance every year.
| Sincerely, |
| P. Arulsundaram |
| Chairman & Managing Director |