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Sadbhav Engineering Ltd

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BSE Code : 532710 | NSE Symbol : SADBHAV | ISIN : INE226H01026 | Industry : Infrastructure Developers & Operators |


Chairman's Speech

Dear Shareholders,

Transformation is a journey in our pursuit to attain new milestones of accomplishments, it is not the destination of success. The more we accomplish with time, the more we transform ourselves and evolve. The more we embrace countless possibilities to create a better future, the more we become resolute in our determination to conquer our sustainability goals.

At Sadbhav Engineering Limited, this continued pursuit to transform tomorrow is the metaphorical manifestation of our corporate philosophy "Today for Tomorrow". Challenges come and go, but the tough gets going. The bigger the projects we undertake, the bigger the challenges we face. The bigger the challenges we face, the stronger we emerge conquering them.

Your Company is a key player in the infrastructure sector in the country with operations across 12 states. Your Company has always seen itself as a partner in the progressive vision envisaged by the Government of India. Sadbhav Engineering Ltd. supports the "Make in India" vision and strives to develop world-class infrastructure to boost the country's economic prospects. All the projects that your Company undertakes are being prudently chosen and executed by identifying and mitigating the possible risk factors.

Infrastructure is a major sector that propels the overall development of the Indian economy. The infrastructure sector in India is poised to grow at a CAGR of 8.2% by 2027. The launch of a quadrilateral economic forum by India, the US, Israel & the UAE in November 2021 has further added to the influx of infrastructure growth perspectives. Alternatively, the introduction to the "Infrastructure for Resilient Island States" program in November 2021 has shown a significant opportunity to improve the lives of vulnerable nations across the globe by enabling Indian infrastructure growth to flourish in tri-folds. The roadmap to India's infrastructure is exciting and the new decade seems to be promising. More and more green and clean initiatives are happening across the country, and the Indian government has given much-needed impetus to the infrastructure sector. Every rupee spent on the infrastructure sector not only has multiplier effect on GDP but also helps to generate more employment, supports the growth of allied industries, and achieves the social goals of providing efficient access to essential services and amenities to all citizens.

India is expected to be one of the largest economies in the world by 2047 with a GDP of about $35-40 trillion as against estimated $3.5 trillion in 2022 as per CII estimates. In addition, the country's industrial output has significantly increased, which has supplemented the pace of urbanization which is expected to accelerate by 2047. Sadbhav Engineering being the forerunner in the construction industry is poised to tap the opportunities emerging to build robust infrastructure to support this growth.

During the reporting period, your Company has reported a turnover of Rs.889.17 Crores with total income of 1054.16 Crores. Your Company has constructed over 9621 lane kms as of March 31, 2023. The Company has completed a total of 46 projects in the transportation sector in which 43 of Highway Projects (out of which 11 are EPC projects, 11 BOT projects, 20 Item rate projects, and 1 Annuity project) and 3 are Metro Projects as on March 31, 2023. The irrigation division of your Company has completed canal work over 819 km and the mining division has mined over 574 MN cubic meters as of March 31, 2023. Your Company's gross block of fixed assets stands at Rs. 522.83 crores as of March 31, 2023.

The Company has initiated action for monetization of the assets and One Time Settlement (OTS) discussions with the Trade Creditors as a part of the deal, upon the insistence of the buyers of assets. Your Company is committed to safeguarding the interests of all its stakeholders and it continuously engages with them to understand the issues material to our business. The prioritisation of these material issues gives us a clear strategic direction to formulate long-term and short-term development goals and actions. Our continued engagement enables us for knowledge exchange & collective action, networking & advocacy and people-centred policy development & implementation.

Furthermore, your Company is successful in formulating a transformation strategy and surpassing the challenges it faced in recent years as the consequences of business continuity impacts due to the pandemic phase. Your Company has optimised its resource utilisation and enhanced its operational efficiency to minimise the cost impacts on profitability. We are prudently bidding and choosing the projects that are financially viable so that we can optimise the stakeholders' value and vindicate the trust put by them in us. For any Company to become big, investing the financial capital is not merely sufficient. A lot of hard work and sweat, dedication, vision, and enthusiasm are the intangible investments that are also required to make the financial investments yield positive returns. We, at Sadbhav never leave any stone unturned and put our best foot forward in making your Company successful.

Your Company believes that the employees are the key partners in all its endeavours and the innovative pursuits to materialise its long-term vision and goals. Your Company has adopted the state-of-the-art technologies like SAP S4-HANA to manage the resources across the country in real time. Your Company provides the conducive environment and career growth opportunities to attract and retain the best talent. The training and development program has been carefully designed to give impetus to the right talent to chart their career growth path within the organisation. At Sadbhav, employees are motivated to collaborate with their counterparts from other parts of our operations to foster the culture of excellence through innovation and knowledge sharing.

By creating a synergy between the value partners and the communities in which the company operates, your Company is able to identify and provide solutions that create long-term stakeholder value through sustainable infrastructure that benefits the nation. I take this opportunity on behalf of the management of Sadbhav Engineering Limited to thank all the stakeholders, including the shareholders, clients, contractors, suppliers, community members, employees, and government authorities for their support.

As a concluding remark, once again I would like to reiterate our commitment to transforming tomorrow for all our stakeholders through all our endeavours.

Regards,

Shashin V. Patel

Chairman & Managing Director.