Dear shareholders,
During the year, we effectively grew our business offerings by serving
diverse industries nationally.
Our journey revolves around a commitment to leveraging opportunities
and driving meaningful outcomes.
We have consistently invested in our fleet, technology, and people to
maintain industry leadership and capitalise on emerging opportunities. It brings me
immense pleasure and gratitude that today SML is recognised as the world's fourth-largest
crane rental company.
Performance highlights
Our financial performance in FY 2023-24 has been exceptional, marking a
significant growth trajectory. We achieved a top line of Rs. 647 Crores, marking a 33% YoY
growth compared to FY 2022-23. Our net profit after tax was Rs. 188 Crores, a remarkable
68% increase from FY 2022-23, setting a new historical high for the Company. Our overall
EBITDA percentage improved by 4% in FY 2023-24. Average capacity utilisation was 84%, up
from 83% in the previous year, and the average blended yield rose to 2.2% per month from
1.97% per month in FY 2022-23.
We completed a CAPEX of Rs. 334 Crores in FY 2023-24, adding 34 cranes
and 44 other pieces of equipment. The sale of 32 cranes generated a profit of Rs. 15.63
Crores. As of 31st March 2024, our fleet stood at 346 cranes, valued at Rs.
2,490 Crores, excluding the 47 cranes classified as assets for sale. We have further
solidified our position as a leading force in the crane rental industry. Our fleet
composition includes 100 cranes under 100 MT and 246 cranes over 100 MT.
Our order book opened at Rs. 425 Crores this year, and we anticipate
positive year- end growth.
Our robust capital structure, strategic investments, digital
transformation initiatives, and government support drive our future growth prospects.
A visionary path to strategic outlook
We will likely achieve continued growth and diversification. Pending
Board approval, we plan a capex of Rs. 250 to Rs. 300 crores for FY 2024-25. We aim to
maintain a yield above 2% for FY 2024-25.
We are excited to announce Project AAROHAM, our strategic collaboration
with Bain & Company India, marking a significant milestone in Sanghvi Movers Limited's
(SML) journey towards sustainable growth and market leadership. This initiative, which
started on 3 June 2024, will unfold in two phases: an initial three-month analysis to
identify growth opportunities, followed by nine months dedicated to developing and
implementing actionable plans.
To further enhance our operational efficiency and growth, we are
implementing a major organisational restructuring aptly designated as Project Samruddhi.
This transformative initiative involves creating business verticals which will carve out
the renewables and logistics offerings into two independent subsidiaries. Accordingly, SML
has incorporated two 100% wholly owned subsidiaries Sangreen Future Renewables Private
Limited and Sangreen Logistics Private Limited.
Each business unitwill operate independently with its own P&L,
dedicated resources, and distinct management structure. This strategic spinoff encourages
accountability, streamlines operations, and diversifies risks while maximising growth
potential.
The separation will enable focused leadership and operational
independence and facilitate the development of unique cultural identities for each
business unit.
The new subsidiaries can pursue growth opportunities, optimise their
operations, and raise capital independently, positioning them for long-term success and
value creation. The Company will also introduce a centralised corporate function for the
business units which aid in the development and long term value creation of each business
unit. The Centre will compromise critical functions including the finance, human capital,
strategy, and business transformation, and technology teams.
Through Project AAROHAM and the Samruddhi initiative, we are setting
the stage for a quantum leap forward, driving our Company towards a future of enhanced
efficiency, innovation, and market leadership. I am confident that together, we will
continue to build a strong and agile organisation that's ready for the future.
I sincerely thank my colleagues and our Board for their guidance in
crafting our strategy and helping the Company scale new heights. I also thank our
stakeholders for their enduring devotion to the Company. We look forward to your continued
support as we embark on our ambitious growth journey.
| Regards, |
| Rishi Sanghvi |
| Managing Director |