It is always a pleasure to address you and so it is this time as well.
India''s GDP grew by 8.5% in a year when some major economies were only
sluggish in their revival, indicating a relatively stronger growth
driven by domestic consumption. The medium to long- term outlook for
India''s economy continues to be healthy and firm.
The Indian power sector had short spiked positive developments to show
across the three parameters of generation, plant load factor and
overall growth this year. However, the role of companies such as yours
is critically important if India is to meet its energy demand. Between
now and 2017 which is the end of the 12th Plan period, there has to be
a capacity addition of more than 100,000 MW. Your company will be a
major EPC contractor that will address this opportunity.
For your company, FY 2010-11 has been a year of setting new records in
growth and performance.
- Your company joined the premier billion dollar club this year by
achieving sales of Rs. 4747.49 crore - a growth in turnover of 55%
- Profits surged to Rs. 324.21 crore as against Rs. 201.02 crore last year
- a rise of 61% in profit after tax.
- EBIDTA grewata brisk clip to 11.60%
- Basic EPS is at a promising high of Rs. 44.97.
- Your company became the first private sector player to commission
three 500 MW units in one financial year.
Your Directors recommend an increased dividend of Rs. 10 per share with
You are already aware that our BTG collaborations with Hitachi have put
us on the path of becoming a full-spectrum EPC company. Coupled with
the achievements of this year, they take your company several notches
higher on the market leadership scale.
This strong and credible position is also one that puts on us an
immense responsibility - one of being sustainable performers in the
power sector at a time when the 11th Plan targets for the sector have
seen a mid-term downward revision.
Recently, a quartet of challenges has accosted the power sector in
India-coal linkage, land acquisition, environmental clearance and
credit deficit. While these reasons have impacted order books across
the sector, I take this opportunity to assure you that your company is
fully competent and capable to meet these challenges on the side of
success. Our results in the coming years will bear my hope for
your company well.
You will appreciate that having the support of a professional
management leadership team and a steady-handed Board, it is easy for me
to be confident of future achievements and profits. For having put me
in this happy position, may I thank you - our shareholders, your Board,
the management team, our employees, foreign collaborators, customers,
vendors and bankers with a request to continue offering your support
and encouragement to the company''s sustained performance.
The year ahead is ripe with opportunity and your company is fully
geared up for the work.
B. G. Raghupathy
Chairman & Managing Director