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Kalpataru Power Transmission Ltd.

BSE: 522287 | NSE: KALPATPOWR |

Represents Equity.Intra - day transactions are permissible and normal trading is done in this category
Series: EQ | ISIN: INE220B01022 | SECTOR: Power - Transmission & Equipment

BSE Live

Nov 27, 16:00
319.90 3.70 (1.17%)
Volume
AVERAGE VOLUME
5-Day
47,505
10-Day
67,178
30-Day
76,037
12,185
  • Prev. Close

    316.20

  • Open Price

    318.25

  • Bid Price (Qty.)

    319.90 (400)

  • Offer Price (Qty.)

    319.80 (400)

NSE Live

Nov 27, 15:57
320.60 4.30 (1.36%)
Volume
AVERAGE VOLUME
5-Day
599,441
10-Day
628,217
30-Day
465,712
619,350
  • Prev. Close

    316.30

  • Open Price

    317.40

  • Bid Price (Qty.)

    320.60 (2750)

  • Offer Price (Qty.)

    0.00 (0)

Annual Report

For Year :
2019 2018 2017 2016 2015 2014 2013 2012 2011

Chairman's Speech

Chairman’s Message

Dear Shareholders, -

This year as Kalpataru Group celebrates its 50 glorious years, KPTL remains at the fulcrum of the group''s vision to be among the foremost global player in the business verticals it operates. We believe that our values and determination shall help us to achieve our vision. KPTL is already a differentiated player in the market through its impressive project footprint across 55 nations. Further, the acquisition of Linjemontage i Grastorp AB in 2019 gives us unprecedented access to the opportunity in rich European market and strongly positions KPTL not only as one of India''s biggest EPC multinationals but more importantly also as a premier ambassador of the spirit of Indian enterprise and aspiration. As we step up our growth momentum going forward it is evident that growth will come from two distinct levers, first is focused and relentless pursuit of new geographies and businesses and second our ability to transform ourselves and convert opportunities to achieve new revenue and profitability benchmarks.

The year 2018 saw global economy resurged backed by GDP growth in some of the advanced and emerging economies. Growth momentum is expected to continue in 2019 and beyond.

For the emerging market and developing economy group, India continues to be on a high growth trajectory and maintains the status of one of the fastest growing economies. According to the latest estimates, India''s GDP grew by 6.8% in 2018-19 and is likely to accelerate further to 7.5% in 2019-20 on the back of support from private consumption and investment. The infrastructure sector has been the government''s biggest focus area for several years now. This can be especially seen from the huge budget allocation for infrastructure sector of RS,4.5 trillion for the year 2019-20 with an aim of making India a USD 5 trillion economy by 2024 and a USD 10 trillion economy by 2029. The increased impetus for accelerating infrastructure development will open up vast opportunities for EPC players, especially the segments like roads, railways, airports, power and 011 & gas are likely to witness greater construction activities.

The financial year 2018-19 has been a landmark year at KPTL. We have delivered on our targets, growing our top line by 23%, with EBIDTA and PAT levels reaching RS,778 Crore and RS,401 Crore respectively. We delivered EBITDA margin of 10.9% and PAT margin of 5.6%. We were able to successfully complete 24 projects in 2018-19. We also strengthened our balance sheet, with net debt-levels at RS,501 Crore as on March,31, 2019 compared to RS,693 Crore in the previous year. KPTL''s return ratios have improved remarkably - ROCE has grown from 14% in 2014-15 to 21% in 2018-19, indicating our strong commitment to improve shareholder value.

In the transmission business, we successfully completed charging the ATL BOOM Project by commencing commercial operations of Kishanganj

- Darbhanga line. The acquisition of Linjemontage i Grastorp AB is in line with our strategy of going local in global markets. The resulting synergies - exchange of experience, access to new markets and technologies will form the springboard of the next phase of our growth in global markets. We continue expanding our global footprint organically as well, with addition of two new countries, Mali and Burundi in Africa.

Our Railway business witnessed strong growth with record order inflows of RS,2,605 Crore and presents a tremendous opportunity in the near future. In the current fiscal, we completed five projects and started manufacturing railway products at our Raipur plant marking an important step towards our goal to emerge as a dominant player in the space. In our Oil and Gas business, we are among the top EPC players in the domestic market and are now actively pursuing global opportunities as well.

Our presence in SAARC markets of Sri Lanka, Bangladesh and Nepal have further consolidated and these markets constituted a significant component of our order wins in 2018-19. Our strong order book gives good visibility to record 15-20% growth in top line for 2019-20 without compromising on profitability and return ratios. We have consistently outperformed the industry over the past 4-5 years on these aspects.

In the financial year 2018-19, the Company achieved significant headways on the digital transformation and operational excellence front. Our SAP backed processes and systems were migrated to the latest version of SAP i.e. S4 HANA, to bring in more speed, efficiencies and productivity improvements. We have deployed GPS monitoring of plant and machinery at our Oil & Gas business and intend to take it across all businesses. In addition, we used drones for surveying, stringing and project monitoring in our businesses. At the plant level, we have improved productivity through mechanization, purposeful technology adaption and process innovations. We have completed site process reviews across all businesses taking help of global consultants to improve our site-level operations and benchmarks. Driven by this continued thrust on digitalization and operational excellence, the Company is committed to continue its focus on profitable growth.

Our Group companies, JMC and Shree Shubham Logistics (SSL) also delivered good progress. JMC achieved a revenue growth of 18% Y-o-Y with EBITDA margins of 10.4%. PAT for the year 2018-19 improved by 34% to RS,142 Crore. JMC''s Order Book reached record high of RS,9,962 Crore on back of strong order inflows across both Buildings & Factories (B&F) and Infrastructure business. JMC will continue to leverage its capabilities to pursue growth in domestic market and at the same time will use KPTL''s strong parentage to systematically spread it operations in Africa and SAARC markets.

At SSL, we continue to focus on up scaling our business through lease based warehouse model. Revenue for 2018-19 grew by 80% to reach RS,124 Crore with EBIDTA margin of 30%. We have been successful in reducing our losses from RS,42 Crore in 2017-18 to RS,15 Crore in 2018-19. We will continue to look for opportunities in new states while pursuing improvement in profitability.

The Company continues to focus on nurturing its talent and make KPTL the most preferred EPC Company for employees to work. Many initiatives for learning & development, employee

diversity, heath management, EHS and employee well-being have been taken during the year to enhance people capabilities.

KPTL is well positioned to exploit the growth opportunities available across the globe utilizing its strengths and competencies in core businesses. Against this backdrop, KPTL has made its strategic objective clear

- become a leading EPC players in its chosen fields. Every KPTL division functions with that vision in mind and is investing resources towards it. As part of this strategy, we are on track for monetization of our transmission assets. The cash flows generated out of this transaction will help us to invest in future growth.

We are proud of our achievements in 2018-19 and as we step up our growth momentum going forward it is evident that growth will come from areas mentioned below:

a. Making our proposition unbeatable by strengthening project management skills.

b. Becoming more global in businesses we operate.

c. Adopting multiple transformation initiatives in digitalization and operational excellence.

I am confident that we will together scale many new horizons making tomorrow better. I would like to sincerely thank our customers, shareholders, bankers, employees and the board for their support and commitment to KPTL.

Sincerely,

Mofatraj P. Munot

Executive Chairman