BGR Energy Systems

I am happy to place companys annual report for the FY 09 before you.
 The year 2008-09 witnessed unprecedented adversities such as meltdown
 of the global financial system, liquidity crunch, worst economic crisis
 in 75 years, skyrocketing of commodity prices, near collapse of real
 estate sector, continued shrinkage of GDP and world trade of many
 countries, resultant downsizing, unemployment, wage cuts etc. However,
 the intervention of governments, timely announcement of multiple
 stimulus packages, measures taken by central banks etc., have helped
 the economies to halt the down trend, stabilize and slowly exhibit sign
 of recovery. It was a situation of survival of the fittest. Though no
 economy is fully insulated, India managed to escape unscathed, barring
 minor turbulences. Nevertheless, the growth rate has to be reduced to 6
 to 7% as against 9 to 10% in the previous three years. Even in such a
 scenario India remained as the second fastest growing economy in the
 world, thanks to our leaders and India that it is.
 
 PERFORMANCE HIGHLIGHTS
 
 Your company has managed to maintain its robust growth trajectory
 albeit this adverse environment. The order book reached all time high
 of Rs.9523 Crore as at March 31, 2009 thus recording revenue visibility
 for 3 financial years. The company made major break through by bagging
 two large EPC contracts to an aggregate value of Rs.8000 Crore. The
 turnover grew by 29 % to Rs.1955.23 Crore and the Profit After Tax
 (PAT) grew by 36% year on year. This robust performance enabled your
 company to recommend a dividend of Rs.3/- per equity share. The
 earnings per share were up by 26% in FY 09. All these positives were
 possible on account of prudent management practices followed by the
 company and the dedicated contribution made by the employees.
 
 FUTURE OUTLOOK
 
 Given the huge potential and business opportunities in Indian power
 sector your company is well positioned to reach greater heights. Your
 company has established good track record and credentials in executing
 large power projects and project management practice. Your company has
 fortunately realized the global meltdown and deferred the proposal of
 setting up new manufacturing units in India, Middle East and China.
 However, capacities in the existing facilities are further augmented.
 The initiative taken by the utilities in the backdrop of huge power
 shortage across the country offers promising business potential to your
 company. Hopefully the Oil & Gas sector will also grow in the years to
 come. The company has added 472 people to its human resources during FY
 09 and has plans to add more manpower in FY 10 to gear up for further
 growth.
 
 The group has signed up a license agreement with Foster Wheeler USA for
 manufacture of subcritical and supercritical boilers upto 1000 MW and
 the group is poised to set up facilities for manufacture of key power
 plant equipment. All these positive developments will catapult your
 company in a higher growth momentum.
 
 I take this opportunity to thank each and everyone in BGR Energy for
 their fullest commitment and continued support for the outstanding
 performance of the company in FY 09. I appreciate the continued
 patronage and confidence of our valued customers, vendors, bankers,
 shareholders and members of the board.
 
 I look forward to yet another exciting year ahead.
 
                                                BGRAGHUPATHY
                                          Chairman & Managing Director