I am very pleased to present the annual report of JMC Projects (India)
Ltd., in its 25th year of inspiring growth story. The year 2011-12, has
been a year of achievements. Your Company has grown over the years but
this year, its growth has broken all its previous records.
Before I take you through the landmark achievements of your Company for
the year, let me dwell upon briefly the unfolding global economic
scenario and the possible impact thereof on the domestic industry, in
particular on the infrastructure sector. The global economy is in the
grip of uncertainty and downside risks persist. With the unbridled rise
in crude and commodity prices, inflation has hit the levels that have
not been witnessed in the last decade.
The year 2011-12 has been a challenging year for the Indian economy
with a GDP growth rate of 6.9%, a significant decline as compared to
the past years. Besides global uncertainty and escalating crude oil
prices, many internal factors too have marred India''s growth story.
Logjam in Government policy making, stifling investment, high
inflation, weakening Indian rupee and corruption related controversies
hindered economic progress. The infrastructure sector too suffered
setbacks due to delay in policy making.
Against a backdrop of significant economic challenges and the lag
effect in the infrastructure sector, your Company demonstrated great
operational prudence and posted a stupendous performance.
With a turnover of Rs 2,060 crores, am happy to state that your Company
has achieved a topline growth of over 50%. However, while your Company
reported a remarkable turnover growth, profit margins suffered on the
back of steep increase in labour and material costs and delay in
certain projects due to reasons beyond our control.
Operationally, I am very pleased to share that we expanded our BOOT
(Build Own Operate and Transfer) portfolio to four projects with a
project outlay of around Rs 2,000 crores. Another area of progress was
the way in which we controlled internal costs, executed projects faster
despite challenges and delivered more to our clients.
We at JMC Projects, are focussed on improving the progress we have made
in the current year and build greater resilience into the business.
Your Company is set to take bigger strides in the industry with a
sizeable increase in the projects undertaken. As we enter 2012 with a
healthy order book of over Rs 5,675 crores, we are extremely positive of
taking a quantum leap. In relentlessly pursuing our aim to improve
margins, your Company has identified areas and methods to reduce costs.
With sharp volatility in input prices increasing the pressure on
margins and unabated competition, this policy will help us improve our
performance in the time to come.
In the industry where JMC Projects has positioned itself, the
opportunities are unprecedented. The Budget 2012 has strategically
focused on the infrastructure sector to balance current challenges and
long terms needs. Increase in investment has been envisaged through a
combination of public investment and Public Private Partnership. To
propel domestic investments in the infrastructure sector, the Finance
Ministry has doubled the limit of tax free infra bonds to Rs 60,000
crores from Rs 30,000 crores and introduced 8,800 km of road projects.
As a leading player in the sector, on the back of these initiatives,
the future prospects of your Company are bright indeed. However, on
account of the current economic uncertainity the future cannot be
The quality, drive and expertise of our employees are second to none.
At JMC Projects, we are proud of our skilled workforce of over 3,000
employees who have been the real reason behind the Company''s growth
trajectory. Our ability to deliver quality projects well within time
and attain our set targets has been possible through our human asset.
Cognisant of their contribution, your Company strives to build
capacities by encouraging its employees to participate in training
sessions and stay abreast of industry happenings and provide them with
an environment to develop their inner talent and expertise.
Lastly, I take this opportunity to thank our employees for their
tireless efforts in ensuring that JMC Projects delivers on its
promises. I would also like to thank our customers, shareholders,
suppliers, JV partners, business associates and bankers for reposing
faith in us. And as we continue our journey of achieving greater
success, I look forward to your continued support.
Vice Chairman & Managing Director