I am delighted to connect with you once again and present your Company’s performance during the FY2017-18. The year has been remarkable for infrastructure development in the country, particularly for roads and highway sector. The Government is focused on accelerating infrastructure development; which is evident from the increased allocation of funds for the Infra Sector in the recent Budget. During the year, the Government has approved the ambitious highway development program ‘Bharathmala Pariyojna’ for comprehensive development of National Highways, Economic Corridors & Expressways etc across the nation, with over Rs.7.0 lakh crore worth of investments to be made over a 5-year period, under Phase I of this flagship programme and allocated about Rs.30,000 crores for the program in 201819. In FY 18, a total of around 2,700 kms of highway projects costing Rs.43,000 crores have already been awarded by NHAI. Apart from the awarding of the projects, the NHAI is also focusing on the construction of projects.
Turning to your Company, I am proud to state that your company has maintained its distinguished position as being one of the very few infrastructure companies in the country that have proven investment, development, construction and management capabilities in the fields of construction such as roads, highways, bridges & flyovers and airport pavements.
Till the end of FY 18, your Company has executed 60 major infrastructure projects, which were spread across 14 states and 39 of them were road EPC projects and 19 of them were airport runway projects. Your company has a strong track record of timely even early completion of projects. Your Company operates 1 OMT and 6 BOT projects, comprising both toll and annuity assets. The Company has strong order book of Rs.7,318 crores as on March 31, 2018, which shows a sustained revenue visibility over the next 2 - 3 years.
In FY18, your Company’s standalone revenue was Rs.1,857 crore as compared to Rs.1,689 crore in FY17, registering a growth of 10% year-on-year. Your Company was able to achieve a strong EBITDA and PAT at Rs.319 crore and Rs.251 crore, respectively on a standalone basis. The year on year growth in EBITDA and PAT stood at 44% and 20%, respectively.
The Consolidated Revenue for FY18 was Rs.2,411 crore as compared to Rs.2,252 crore in FY17. This resulted in a growth of 7%. The Consolidated EBITDA for FY18 was Rs.769 crore as compared to Rs.624 crore in FY17, registering a growth of 23%, while consolidated PAT for FY18 was Rs.243 crore as compared to Rs.118 crore in FY17. This resulted in strong growth of 105%.
Your Company has been accredited with a stable outlook and a strong credit rating of CARE AA- (Double A Minus) for long term Bank facilities, CARE A1 (A1 Plus) for short term Bank facilities and CARE A1 (A1 Plus) for commercial paper.
The ambitious road building program of the Government, “Bharatmala Pariyojna”, will involve the construction of about 83,000 Kms highways. This indicates that we are heading towards a great opportune times. Your Company emphasizes on competitiveness, timely execution and building strong relationships. The Company is strengthening its in-house execution team by hiring more engineers, planners, finance & procurement specialists with proven track record. During the year, your company has added nearly 1500 new employees in different departments. At on 31.03.2018, your Company’s Employee strength stood at 5,775.
On behalf of the entire Board, I would like to take this opportunity to acknowledge sincere efforts of our employees who have been dedicated and committed to their work. I am confident that the ‘Team PNC’ will continue to put their best of efforts and pursue the path of excellence to take company to next level of growth and scale new heights in years to come.
I am grateful to shareholders, bankers, customers, business partners, vendors and government authorities for their continued support, trust and confidence in your company.
I would like to conclude by acknowledging the Board Members for their valuable guidance and insights in accomplishing the goals in a sustainable manner.
Pradeep Kumar Jain