172@29@16@16!~!172@29@0@53!~!|commonstore|commonfiles|moneycontrol_header.php?cid=0&s_cid=0&radar_off=0&is_revamped_header=0&is_responsive=1&sec=PNC_ANNUALREPORT&priceinter=1&frommc=1!~!www|moneycontrol|com!~!|commonstore|commonfiles|moneycontrol_header.php!~!is_mobile=false
Moneycontrol
SENSEX NIFTY
you are here:

Supreme Infrastructure India Ltd.

BSE: 532904 | NSE: SUPREMEINF | Series: BZ | ISIN: INE550H01011 | SECTOR: Construction & Contracting - Civil

BSE Live

Oct 21, 13:05
6.87 -0.35 (-4.85%)
Volume
AVERAGE VOLUME
5-Day
1,061
10-Day
1,594
30-Day
2,341
400
  • Prev. Close

    7.22

  • Open Price

    7.50

  • Bid Price (Qty.)

    7.58 (20)

  • Offer Price (Qty.)

    0.00 (0)

NSE Live

Oct 21, 13:33
7.40 -0.20 (-2.63%)
Volume
AVERAGE VOLUME
5-Day
638
10-Day
2,601
30-Day
2,996
1,166
  • Prev. Close

    7.60

  • Open Price

    7.95

  • Bid Price (Qty.)

    7.40 (456)

  • Offer Price (Qty.)

    0.00 (0)

Annual Report

For Year :
2015 2014 2013 2012 2011 2010 2009

Chairman's Speech

Dear Shareholders, FY2015 was a year in which we braved various challenges and have come out stronger and wiser. We are determined as ever to deliver consistent and sustained value for our shareholders. As India''s infrastructure sector continues to be at a crossroads, we too have faced our fair share of angst. During the year, we rose to the occasion and came up with effective solutions for bolstering our balance sheet and improving our cash flows. With an efficient restructuring of our debt under the Joint Lenders Forum (JLF) mode and a successful QIP through strong investor support, we are poised to emerge as a strong EPC and BOT company. New wave of Optimism With a new Government assuming office, we felt a renewed wave of optimism within the Industry. The Government expressed a keen desire to unblock the infrastructure pipeline through the public funding of stalled infrastructure projects. Moreover, the Fiscal Budget included US$11 Billion in increased commitments through Private Sector Enterprises for infrastructure investment. In addition to this, a new fiscal framework for the division of taxes between the Central and State Governments was designed to empower the States to provide much needed additional funding for infrastructure development. The Planning Commission of India has proposed an investment of around US$ 1 trillion in the Twelfth five-year plan (2012-2017) for the infrastructure sector, which is double the allocation made in the Eleventh five-year plan. Continuing partnership between the various levels of Government in India continues to be an encouraging sign for the infrastructure sector in the future. Our BOT Capabilities We have achieved diverse execution capabilities through our EPC presence in 6 segments (Roads, Bridges, Buildings, Railways, Power and Water Infrastructure) and 13 states across India. Our focus to expand and build on our current capabilities has enabled us to expand and grow even during tough times. In the BOT business, we have an impressive portfolio of 11 BOT projects. Out of this,4 BOT projects were made operational during FY2015. These include the Kopargaon Ahmednagar Tollways Pvt. Ltd.; the Patiala Nabha Maler Kotla project; Manor Wada Bhiwandi and the Vasai Bhiwandi. Barring the Jaipur Ring Road Project, all the other under-construction BOT projects are projected to attain completion by June 2016, taking the total number of operational assets to 10. Once all the 10 BOT projects get operational, our estimated toll revenue will rise to approximately Rs. 13.0 Million per day. This will further rise to around Rs. 17.0 Million per day once the 11th BOT asset becomes operational. These assets will imminently give us revenue growth and add to our bottom line significantly. Rising to the Challenge Our mission continues to be to complete each project before time by optimally utilising our technological strengths and domain expertise. We make the most of our capital expenditure by reusing it over multiple projects through our backward integrated model. This model helps us deliver improved margins and gain better control over projects and their execution, without having to depend on external sources. Our cluster-led approach enables us to emerge as the lowest bidder in projects that are in close proximity to each other. With the marketplace posing multiple challenges, we recalibrated our key business strategies. For FY2016, we are placing focus on liquidating certain BOT assets and use the additional cash flows for our on-going assets. We aim to continuously pursue financial engineering to attain stable cash flows, healthy margins and assured sources of revenue. Our target is to securitise our assets or monetise them to repay our debt obligations, fulfill our equity commitments and tap newer opportunities. Our performance has been particularly commendable in the context of a challenging domestic environment. We have optimally stretched available resources, trimmed overheads and improved our operational efficiencies. Our confidence stems from a diversified mix of assets across infrastructure segments and healthy operational cash flows. We are performing today, while transforming for tomorrow. Financial Performance We have already de-risked our business model by executing the EPC portion of our BOT projects. All of our BOT projects are in a near completion phase and we soon expect to earn revenues from the Toll collections. We have successfully restructured our debt under Joint Lenders Forum (JLF) - Key Features of the package include 2-Year Moratorium on Debt Repayment on existing loan of Rs. 4.2 Billion, so the payback period for this loan will be 8 years (resulting in door-to-door tenor of 10 years). We are focused on encashing the intrinsic value of some of our projects will help us meet our funding requirements. This will ensure smooth flow of capital within the business. We simultaneously aim to expand our project profile through a diversified geographic presence in existing and new sectors and acquire more EPC orders, particularly in water and power segments. Fresh working capital lines of Rs. 750 Million for fund-based and Rs. 1.75 Billion for non-fund based facilities have been sanctioned, with interest cost being lowered to 11% from 12.5% - 13% earlier. This is expected to generate significant cash flows for the future. We remain poised to face the future by securitising our assets or monetising them to de-leverage, fulfil our equity commitments and tap newer opportunities. This pragmatic approach gives us the confidence that when market conditions rebound, our solid foundation will see us advantageously into the future. We will continue to leverage our inherent strengths and expand our horizons to capture a larger share of the infrastructure opportunity and be seen as a preferred infrastructure partner. Our passion, professionalism and perseverance gives us an exceptional future outlook. Our objective is to drive innovation across each aspect of our business and make that an integral part of a sustainable approach. I take this opportunity to thank our highly committed employees for delivering operational excellence even during difficult conditions. Our Board thanks all the shareholders for their co-operation, continued support and strong faith in us. Warm Regards, Mr. Bhawanishankar H. Sharma Executive Chairman