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Nahar Industrial Enterprises Ltd.

BSE: 519136 | NSE: NAHARINDUS |

Represents Equity.Intra - day transactions are permissible and normal trading is done in this category
Series: EQ | ISIN: INE289A01011 | SECTOR: Textiles - Composite Mills

BSE Live

Nov 27, 16:00
27.80 0.75 (2.77%)
Volume
AVERAGE VOLUME
5-Day
1,981
10-Day
1,946
30-Day
2,136
1,753
  • Prev. Close

    27.05

  • Open Price

    26.50

  • Bid Price (Qty.)

    27.45 (5)

  • Offer Price (Qty.)

    28.00 (90)

NSE Live

Nov 27, 15:56
27.70 0.55 (2.03%)
Volume
AVERAGE VOLUME
5-Day
16,954
10-Day
11,910
30-Day
7,801
45,990
  • Prev. Close

    27.15

  • Open Price

    27.00

  • Bid Price (Qty.)

    0.00 (0)

  • Offer Price (Qty.)

    0.00 (0)

Annual Report

For Year :
2011

Chairman's Speech

Dear Shareholders, I write to you at the end of yet another successful year at Era Infra Engineering. Let me take you through some of the key events that transpired during the year under review. After a short dip in growth rates, the Indian economy bounced back to robust growth rates in the year 2010-11.The GDP of the country grew at the rate of 8.6%, revealing the resilience and the sustainability of the Indian economic growth story. Sustaining this high growth will call for an enhanced infrastructure, new economic initiatives and a more liberalised economic regime.Today, we stand poised in front of an unprecedented opportunity to join the ranks of developed countries in a few decades and at the same time we are plagued by a dismal infrastructure, bottle necks in the economy and a flawed economic landscape. Making this transition will require conscious efforts in redrawing the economic landscape, removing infrastructural bottlenecks and further liberalising the economy. Thus, the Government has identified infrastructure as one of the leading engines of growth and development. Against this backdrop, your Company and its subsidiaries as an integrated infrastructure development organisation would work synergistically to build physical assets that will pave the way for the future. Our business activities are organised around three divisions- EPC, Design & Engineering, Equipment Management Divisions coupled with two subsidiaries Era Infrastructure and EraT&D. Financial Review It is with immense pleasure and satisfaction to report the robust growth achieved by your Company. With our focused efforts the year 2010-11 concluded with sales revenue of Rs.3828.90 crores and net profit of Rs.246.83 crores. Fresh order inflows and the quantum of the Order Book always determine your Company''s ability to thrive and grow. Results on both these counts have been significant as your Company achieved an impressive growth in order inflows for FY11. Consequently, the order book position stood at an impressive Rs.10,422 crores. This gives the Company clear revenue visibility over the next couple of years. Margins have, yet again, registered an improvement and your Company is hopeful of sustaining margins at a level close to this, despite volatile commodity prices and competition. Division Review Engineering Procurement & Construction Today, with the Government''s cumulative spending of Rs.2,14,000 crore in the infrastructure development domain, there is a palpable sense of optimism in the industry. This optimism is reflected in our increasing EPC order book position which includes orders across diverse sectors such as power, roads/highways, aviation, railways, metro, refinery, social infrastructure and industrial construction. Now we seek more projects from the metro line development, large scale housing projects, power transmission and distribution projects. In the year under review, apart from procuring several big ticket orders your Company bagged its biggest order. Valued at Rs.1723 crores, it is an EPC contract for 4 laning of Bareilly-Sitapur section in Uttar Pradesh under the DBFOT pattern. Looking forward, we seek to expand our EPC contract to foreign shores and are actively scouting projects in Middle East and Africa. Apart from our traditional emphasis and presence in the power, urban infrastructure, commercial complex, housing and industrial as well as institutional sectors, we have laid emphasis on expanding our presence in the domains of steel, healthcare ad oil and natural gas, each of which are vital to India''s future development. Design & Engineering Division Design & Engineering is an integral aspect of everything that we do in our business. Our Design & Engineering division acts as a central pool that handles the entire Group''s work in these areas. It is staffed by senior, experienced and exceptionally talented top management, and supported by a dedicated team of middle management and engineers. The division will not only provide state-of-the-art solutions to all the engineering challenges within the Group but at the same time will function as an independent profit centre, by providing solutions to clients across the globe. Pre-engineered buildings, heavy steel structures, highways & bridges, power plants, metro projects, RCC structures & multi-storied real estate projects would form the key focus areas for this division. Equipment Management Division The increase in the infrastructure development automatically triggers a demand for construction equipment both in the internal as well as the external context. Builders and construction companies are constantly seeking to expand their capabilities, and leasing equipment for a build project is a lucrative option as compared to investing in capital expenditure. For companies with a large equipment bank like ours, this is an ideal way to encash idle machine time and earn revenues. The equipment leasing business of your Company has been a robust revenue earner and would continue to do so in the years to come. The division has been able to encash on the burgeoning demand for equipment from the North and the East of the Country and it has entered into several long term tie-ups with companies such as Shapoorjee Pallonji & Co., L&T EEC Division, McNally Bharat Alpine, Samsung and ACC to name a few. Looking forward, your Company seeks to make significant investments in this division with a perspective to capture accelerated growth. Subsidiary Review Era Infrastructure As India''s infrastructure related ambitions grow, the Government finds it increasingly difficult to fund the slew of projects that are required. Current thinking is in favor of BOT projects that are done in the nature of a Public Private Partnership. This leverages the power of the private sector to raise funding and handle large projects. Your Company''s BOT subsidiary is a dedicated unit that was set up to handle these kinds of projects. Era T&D With an increased thrust on the power generation sector, there is a need for Transmission and Distribution network to grow simultaneously to deliver more power to the people. Era T&D undertakes turnkey projects that help lay power lines which will prove to be the lifelines for future development. Proactive in service of our stakeholders We seek to proactively manage our relationships with our stake holder communities to mutual benefit. To our shareholders, we are committed to deliver ever increasing valuations and returns, to our employees we offer enhanced career building opportunities, to the communities we deliver infrastructure for a better tomorrow and to the industry and business in the geographic areas we operate in we offer the possibility of a bright future. I end this note by reiterating our whole hearted commitment to this vision and would take this opportunity to thank our Board of Directors for the advice, guidance and mentoring they have provided us in our attempt to build the lifeline for tomorrow. H.S. Bharana Chairman & Managing Director