It gives me great pleasure to share with you the highlights of your
Company''s performance during the year 2010-11.
The Indian economy has shown remarkable resilience and smart recovery.
It recorded a growth rate of over 8%, making it the world''s
second-fastest growing major economy after China. But inflation and
volatility in commodity prices continue to remain a concern.
The progress of any economy is interlinked to infrastructure. And a
crucial parameter for our economy to shine bright is Infrastructure
Development. Ironically, while the Indian economy has grown by leaps
and bounds, infrastructure still remains an area that is grossly
underdeveloped and is dragging down the economic growth rate. However,
infrastructure sector in India has witnessed encouraging growth in the
last few years on account of Government initiatives at various levels
which have paved the way for increased and growing participation of the
private sector in developing the infrastructure of the country.
We are buoyed by the continued thrust of Government policies to create
world-class infrastructure assets. To compliment this, there has been
increasing learning, adaption, acceptance and implementation of
Public-Private Partnerships (PPP) in this domain. We believe that your
Company is well poised to leverage this and deliver the promise of
providing superior infrastructure assets.
Reviewing the year gone by
Financially, the year was fruitful. Our revenues crossed Rs. 1000
crores for the first time as the turnover for FY 11 stood at Rs.
1051.27 crores. Profit after tax reported was Rs. 56.82 crores as
against Rs. 50.28 crores in the previous fiscal.
On the back of our strong experience and domain expertise we bagged
four key projects valued at Rs. 1884.06 crores. Further, to achieve
our growth objectives we have adopted a multi-fold strategy which
- Maintaining performance and competitiveness of existing business to
capitalise on huge investments expected to be made in infrastructure
development especially in segments where we presently operate
- Focusing on BOT projects
- Procuring projects involving higher degree of engineering skills
- Leveraging our business growth by identifying and forming strategic
joint venture relationships for mutual benefit through sharing of
resources and business skills
Armed a sound business strategies chalked out on account of a unique
combination of expertise drawn from wealth of experience and a
consistent track record of performance, your Company features amongst
the trusted names in this industry.
With the Central and State Government undertaking very ambitious
programmes of highway construction during the coming years your Company
hopes to bag a number of contracts.
Clearly, the trend in investments in the infrastructure sector over the
last half decade has been upward. Even though external factors are
hinting at a slowdown of sorts in the short term, the strong long-term
prospects of the segment remain intact.
This has accentuated the role well-organised players like KNR
Constructions who can meet global quality standards using advanced
technology and the other resources required in this segment. Your
Company, with its strategic expertise, strong execution capabilities,
and commitment to adopting the highest quality, safety, and
environmental policies has the capability to be a prominent player in
the near future.
On a concluding note
I take this opportunity to sincerely thank our banks, financial
institutions, clients and suppliers for their constant support in the
progress of the Company. I also thank you, shareholders, for your
I would also place on record my deep appreciation to management team of
the Company and its staff for their constant endeavour to help the
Company in seeking and achieving higher goals.
K Narasimha Reddy