Chairman's note
We are optimistic to leverage our expertise to capitalize on various opportunities in
the industries and clients we cater to. We continue to push boundaries by embarking on
transformative projects that not only enhance our capabilities but also reinforce our
leadership position in the industry.
Dear shareholders,
I am delighted to share with you the Annual Report for FY 2023-24. Over the past year,
we have prioritized generating long-lasting value for all our stakeholders by developing a
dynamic and forward-thinking enterprise. Additionally, we have capitalized on the
expanding national potential by strategically aligning our focus on businesses that
support India's growth trajectory.
The India growth story
India, with its vast resources and a large, young, and productive population is
well-positioned in today's global economic scenario. Our GDP is expected to more than
double in the next decade, growing at annual rate of over 7%, and it is now certain that
by 2030 India will be a $6-7 trillion economy and the world's third largest nation in GDP
terms.
As the nation strides confidently towards becoming a global economic powerhouse, the
focus on infrastructure creation has never been more crucial. The nation's rapid
urbanization, digital transformation, and growing energy needs are driving unprecedented
opportunities across various sectors. At Salasar Techno, we are at the forefront of this
transformation, contributing significantly to the country's infrastructure development in
key industries.
• Telecom Tower Industry: With India witnessing an exponential rise in
mobile and internet penetration, the telecom tower industry is expanding rapidly. The
telecom sector is expected to grow at a CAGR of 6% over the next few years, and our
advanced infrastructure solutions are crucial to meeting this demand. We are ready to play
a vital role by delivering robust, high- quality telecom towers that support the nation's
digital revolution.
• Power Transmission Tower Industry: India's power transmission market is
rapidly evolving to meet the country's growing energy demands, driven by a diverse mix of
coal, hydro, and renewable energy sources. As the nation continues its ambitious journey
towards energy security and sustainability, the expansion and modernization of the power
transmission infrastructure become paramount. We aim to be at the forefront of this
transformation, playing a pivotal role in the power transmission industry.
• Railway Electrification Industry:
The Indian government's push towards 100% railway electrification by 2030 offers
immense potential for your company.
Our Company is actively contributing to this mission by supplying critical
infrastructure for railway electrification, helping to enhance connectivity and reduce the
carbon footprint of the transportation sector.
• Renewable Energy Industry:
The shift towards clean energy and the ambitious goal of 500 GW of renewable energy
capacity by 2030 is accelerating with solar and wind energy projects being launched across
the nation. Our Company's capabilities in renewable energy projects place us at the heart
of this green transition, supporting India's commitment to sustainable development.
• Heavy Structure Steel Industry:
As the backbone of infrastructure development, the heavy structure steel industry is
witnessing robust demand from various sectors including real estate, industrial projects,
and public infrastructure. Our advanced manufacturing facilities enable us to deliver
high-quality steel structures, catering to the growing needs of these dynamic industries.
Capitalising on the optimism
We are optimistic to leverage our expertise to capitalize on various opportunities in
the industries and clients we cater to. We continue to push boundaries by embarking on
transformative projects that not only enhance our capabilities but also reinforce our
leadership position in the industry. This year we have undertaken a major EPC
(Engineering, Procurement, and Construction) project in Nepal. This project, valued at
Rs.143 crore, was awarded by the Nepal Electricity Authority (NEA). The scope includes the
procurement of materials, associated accessories, and the installation of 33/11 KV
substations and distribution systems in the Dang, Rukum East, and Baitadi districts of
Nepal. We have also secured a significant EPC contract worth USD 9.40 million (Rs.752.38
million) from Energy Development Corporation Ltd. for the design, supply, and installation
of 110kV transmission lines in Rwanda. Our technical expertise and project management
capabilities were crucial in securing this prestigious contract, which is expected to be
completed within 18 months.
Our latest endeavors also include the operationalization of one of Asia's largest
galvanizing plants with a capacity of 96,000 MTPA at Hapur in Uttar Pradesh. This
state-of-the- art facility is poised to provide significant opportunities to us in the
Monopole business. The addition of this zincing facility is anticipated to match the
combined output of our existing three manufacturing plants.
Additionally, we are proud to have contributed to a project of national importance -
the First Ever Steel Bridge for India's First Bullet Train. This 70-meter steel truss
bridge, crafted from 673 metric tons of steel, was successfully launched and erected over
NH 53 in Surat, Gujarat. Our collaboration with L&T Construction and NHSRCL (National
High-Speed Rail Corporation Limited) underscores our commitment to excellence and
innovation in infrastructure development.
Our achievements in expanding our operational capacity, participating in high-profile
national projects, and securing international contracts highlight our ongoing commitment
to capitalizing on our strengths. By leveraging our advanced infrastructure, technical
proficiency, and strategic partnerships, we continue to position Salasar Techno for
greater traction and growth in both domestic and global markets.
Inspiring results
On the backdrop of these optimism, FY 23-24 marked a year of substantial achievements
for us at Salasar Techno. Our boardroom as well as shop-floor demonstrated greater
resilience. I am pleased to report that our revenue from operations for FY 23-24 reached
Rs.12,084.3 million, a solid increase from Rs.10,048.9 million in FY 22-23. This
impressive growth has been fueled by the rising demand for our wide range of EPC solutions
across power, railways, and telecom sectors. Our EBITDA also saw a healthy rise, reaching
Rs.1,224.2 million this year, up from Rs.918.1 million last year, driven by our enhanced
execution capabilities on large-scale projects.
Our EBITDA margins improved to 10.1% in FY 23-24, compared to 9.1% in the previous
year, reflecting a 100 basis points increase, which can be attributed to our efficiency in
project execution. Furthermore, our profit after tax (PAT) stood at Rs.529.3 million, up
from Rs.402.5 million last year, with PAT margins improving to 4.4% from 4.0%.
Looking ahead, our strong order book of Rs.24,600 million demonstrates the confidence
our clients place in our services and lays a strong foundation for future growth. The
increasing demand from the railway, power, and telecom sectors validates our strategic
focus, allowing us to capitalize on emerging opportunities and drive sustainable growth
for the company.
Force multiplier
The FY 23-24 has been quite instrumental in several ways. We were always inspired by
the idea of one entity merging into many, or many entities blending into one unified
whole, thereby creating a force multiplier. We are pleased to announce that Salasar Techno
has recently been awarded the sale letter for the acquisition of EMC Ltd., marking a
significant milestone in our growth journey. This strategic acquisition will enhance our
capabilities in the power infrastructure sector, enabling us to diversify and strengthen
our service portfolio. EMC Ltd. owns prime immovable properties that are expected to
generate substantial returns, adding value to our asset base. The company also operates a
5 MW solar plant with a long-term Power Purchase Agreement (PPA) with NTPC, signed in 2012
for 25 years, ensuring a steady revenue stream from the sale of electricity at a rate of
Rs.12.49 per unit.
This acquisition is a key step forward in solidifying our leadership in the EPC sector
and driving sustainable growth for the future.
Quality - the biggest imperative
We have always believed that nothing rewards more than great quality. We take pride in
our ability to deliver the highest standards of quality products and services to our
clients - each and every time. Our capability emanates from consistent initiatives to
increase quality awareness amongst our employees across units and hierarchies. Our
operations are certified to the internationally recognized quality standards.
Sustainability practices
At Salasar Techno, we have always taken pride on our sustainability efforts which go
beyond regulatory compliance, since we believe, sustainability is not just a legal
responsibility but a shared responsibility we all have towards our planet. We have stood
on the firm foundations of sustainable business operations. Our endeavour to drive the
change through sustainable manufacturing practices and maintain a culture of business
stability and material aspects to our stakeholders.
Enduring bonds
We diligently adheres to regulatory norms and actively engage ourselves with government
bodies to ensure smooth operations and uphold our reputation as a responsible corporate
entity. By collaborating closely with regulatory agencies and various industry
associations including Indian Electrical and Electronics Manufactures' Association
(IEEMA), Project Export Promotion Council of India, Federation of Indian Export
organization, we also try to stay ahead of industry developments and policy changes. This
proactive approach not only ensured compliance but has also supported our company's
sustainability and long-term success. As a responsible corporate citizen, we also
contribute significantly to the country's exchequer, through various taxes.
Conclusion
I am confident that our company will continue achieving higher peaks in the future. I
would like to extend my heartfelt gratitude to each and every member of our team for their
diligent and untiring efforts in making Salasar Techno a leading EPC company in the
telecom, power transmission and railway segments in India. I would also like to thank all
our Stakeholders, Board, Bankers and the Central and various State Governments for the
support and assistance provided throughout our journey. I solicit your continued
cooperation.
With warm regards
Alok Kumar.
Chairman.