The company, during the Financial Year 2008-09 has surpassed the major
milestone of Rs.1000 Crores in revenue, with improved net profit. At
the end of 2008-09 your companys order book position stands at Rs.5300
Crores which would translate into improved performance in revenue and
profit for the Financial Year 2009-10.
Inspite of deteriorating global economic condition and ever threatening
financial meltdown in 2008-09, the resilient Indian economy could
witness a GDP growth rate of 6.7%. The infrastructure projects continue
to get fillip from the Government in the form of ambitious investment
plan of 65% of the total capital budgeted over the next five years in
the sectors of Roads, Power, Ports, Airports, Railways and Mining and
are adequately supported by the private sector by their participation
in infrastructure development.
Your company is well poised to gain from the favourable infrastructure
development taking place in different sectors and would pave the way
for substantial growth of the company. Your companys strategic
decision in reorganizing the business models to create value and assets
for the shareholders has paid rich dividends. Your company is
successful in creating assets in BOT Roads, Power, Coal Mine and Real
Estate in the shape of Hotel, Mall and Office complex. Your company has
commissioned one BOT NHAI road project viz., Madhucon Agra - Jaipur
Expressways Limited to commercial operation. Other 3 BOT Highway
projects are expected to be commissioned before the end of this
Financial Year. Your company hopes to earn a total toll revenue of
approximately Rs.60 Lakhs per day, once all the 4 BOT projects are
commissioned. Projects under the EPC divisions such as Irrigation,
National and State Highways are progressing satisfactorily.
The first phase of 540 MW Thermal Power Plant at Krishnapatnam is
progressing well. Your company has increased Equity participation in
the Power project to 74% and is planning to increase the capacity to
1600 MW. Feasibility report in this respect is under preparation.
Your company has achieved Financial Closure of the four star hotel
project being planned in Hyderabad with service apartments and the
construction shall be commencing shortly, along with the office
Your companys coal mining project in Indonesia is progressing well and
during the Financial Year 2009- 10, the coal production and commercial
operations shall commence.
With the onset of stability in the Indian economy, the thrust given by
the Government towards infrastructure development and improved business
environment, your company will have a greater role and opportunity to
play as a major player in the infrastructure development of the
I wish to express my sincere gratitude and appreciation for the strong
commitment shown by the employees in achieving the growth of the
organization. I thank the customers, banks, business associates and
above all, our shareholders for their continuous support to and faith
in the Company.
N. Nageswar Rao