Message from CEO
It is a moment of great pleasure for me as I write to you about JMC’s performance in the 2018-19. The financial year 2018-19 has been memorable one and has positively emerged as a year of many ‘firsts’. We ended the year on a bright note, as we created the milestone of RS. 3,253 Crores in revenue, RS. 143 Crores in PAT and RS. 9,962 Crores in order book. This is a source of great pride for all of us at JMC and in fact, it is one that signifies our strength and capabilities in the businesses we operate in. Our achievements over the past few years also confirms that JMC is heading in the right strategic direction with greater expectations of us as a Company and new ambitions which we must fulfil in order to keep growing in our role as a respected civil contracting and EPC Company.
While keeping a steady focus on the business’s current performance, we also remain attentive towards putting our drivers for growth in the accurate places. In the current scenario, it implies a pointed focus on areas like prudent diversification within EPC segments, higher share of international revenue, better capital management and leveraging technology and digitalization that shall enable us to achieve greater operational efficiency. These drivers will help us to deliver benefits appropriate to each of our stakeholders and at the same time, shall aid in maintaining a definite level of growth and efficiency that effectively leads to sustainable and profitable earnings for our shareholders. Additionally, it allows us to offer our employees to work in an environment that is innovative, safe, ethical and rewarding.
Strong performance across businesses
Operationally, the Company performed well across all the business verticals and majority of the financial parameters. For 2018-19, JMC reported revenue growth of 18% to RS. 3,253 Crores driven by well-planned execution spread across both Buildings & Factories (B&F) and infrastructure business. Our core EBITDA grew by 18% to RS. 337 Crores and PAT grew by 34% to RS. 143 Crores backed by focused execution, several cost optimization initiatives and focused working capital management.
The financial year 2018-19 has been a momentous year for JMC as far as order inflows and the order book is concerned. We received new orders of RS. 3,152 Crores in B&F business and RS. 2,477 Crores in infrastructure business. The Order Backlog as of 31st March 2019 stood at RS. 9,962 Crores compared with RS. 7,616 Crores in the previous year.
On a consolidated basis, our revenues have increased by 18% to reach RS. 3,407 Crores in 2018-19. PAT for 2018-19 stood at RS. 77 Crores, marked by an increase of 185%.
We continue to strengthen our execution capabilities and reaffirm market share in our B&F business across select growth markets, leveraging our strong project management skills, quality deliverables, established systems and client relationship. We are continuously exploring and examining opportunities to work more on projects that are large in size and are composite in nature. This year JMC recorded reasonable progress in expanding its client base and has been able to secure new clients in the B&F business.
Our focus on the infrastructure development opportunities in India continues to remain high during the year, we strengthened our presence in the strategic sectors like water, urban infrastructure, roads and bridges. JMC is well positioned to take advantage of rapid infrastructure development in India given its strengths, experience and domain expertise across various segments of infrastructure.
Our successful foray into the international business has made us strongly believe that this could be one of the biggest growth drivers for JMC in the coming years. During the year, we evolved our international business strategy and strengthened our business development efforts. We are confident about expanding to several new countries in the next couple of years across Africa and SAARC markets. We will continue to leverage KPTL’s strong presence in international markets and will look for more multilateral funded projects in the infrastructure and B&F domain.
With an aim to boost digital and technology adoption, the last year witnessed the implementation of the most advanced SAP based transformation project to drive process efficiencies. We also undertook numerous initiatives to support and make our project management more integrated so that our project delivery materializes on time, within budgets and complies with superior quality and sustainability norms. During 2018-19, we undertook new, dynamic and crucial initiatives in areas related to project monitoring, plant and machinery, procurement, supply chain management and logistics to accelerate digital transformation and operational excellence, which shall seek to actively drive our goal to increase efficiency, improve profitability and advance project controlling.
During the year, the Company continued to focus on nurturing its employees. Many initiatives have been undertaken by the Company to make JMC an employer of choice. These initiatives will continue to focus on learning and development, health management, environmental protection and safety. The Company has also undertaken efforts in enhancing the competence and engagement with its employees through digital technology.
In the face of global economic volatility and risks driven by socio-political factors, India’s macro-fundamentals are robust. The infrastructure sector has been the government’s biggest focus area for several years now. The increased impetus for accelerating infrastructure development will open up vast opportunities for construction players in segments such as roads, urban transport, railways, airports, water and housing. With the Company’s strengths and competence in buildings, industrial and infrastructure, JMC is well-placed to amass and capitalize on this opportunity. The Company will continue to focus on sustaining profitable growth and shall strive to drive operational excellence.
I thank our customers, bankers, shareholders and other stakeholders for their continuous support. I also extend a special vote of thanks to our employees for their tremendous engagement and efforts over the past year.
Shailendra Kumar Tripathi
CEO and Deputy Managing Director