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सिम्पलेक्स इंफ्रास्ट्रक्चर्स

बीएसई: 523838  |  NSE: SIMPLEXINF  |  ISIN: INE059B01024  |  Construction & Contracting - Civil

खोजें सिम्पलेक्स इंफ्रास्ट्रक्चर्स कनेक्शन Mar 17
अध्यक्षीय भाषण साल : Mar '18

Dear shareholders,

The past decade has been characterized by fragile growth, high investor uncertainty and periodic spikes in global financial market volatility. Towards the end of 2016, global economic activity began to see a modest pickup, which extended into 2017. World industrial production has accelerated, in tandem with a recovery in global trade that has been predominantly driven by stronger demand in East Asia. Investment conditions have improved, amid stable financial markets, strong credit growth, and a more solid macroeconomic outlook. In 2017, global economic growth reached 3 per cent—the highest growth rate since 2011—and growth is expected to remain steady for the coming year. Currently, all major developed economies are experiencing a synchronized upturn in growth. At the global level, growth is expected to remain steady at 3.0 per cent in 2018 and 2019.

The infrastructure sector has become the biggest focus area of the Government of India. Under Union Budget 2018-19, US$ 92.22 billion was allocated to the sector. Increased impetus to develop infrastructure in the country is attracting both domestic and international players. Private sector is emerging as a key player across various infrastructure segments, ranging from roads and communications to power and airports. The cumulative growth in the index of eight core industries was 4.7 per cent in 2017-18 and 4.1 per cent year-on-year in April-May 2018. India has a requirement of investment worth Rs 50 trillion (US$ 777.73 billion) in infrastructure by 2022 to have sustainable development in the country. Simplex is one of the leading engineering, procurement and construction (EPC) players in the infrastructure space. The Company has an engineering heritage of nearly a century.

The Company has executed the majority of the country''s land -mark infrastructure projects. Simplex adheres to world-class operational standards, adequately supported by ongoing investment in state-of-the-art equipment and periodic modular upgrade of existing assets. The company''s vision is to execute projects with consistent quality assurance, cost control and adherence to milestones in a safe environment according to the customer''s requirements. It promotes the culture of sharing rich and varied experience with staff members and clients, thereby helping the growth of the construction fraternity and society at large.

Despite FY18 being a challenging year, we continue to be very excited at the growth opportunities that are available to us within the industry we serve. Your Company''s execution capabilities have successfully been leveraged to secure orders worth Rs. 76660 mns, making the order book Rs.186225 mns as of FY 18. The Order book of the Company is diversified across 208 contracts and 9 verticals. Moreover, our ability to integrate the traditional construction methodologies with new technology has enabled your Company to complement the value that we deliver to our clients.

On the financial front, the Company''s standalone profit after tax stood at Rs. 1169 mns for FY 2018. The growth was however modest at around 3 percent. A diversified player in the infrastructure space, the Company has executed over 3000 projects and has 200 ongoing projects. A geographically diversified portfolio and strong experience across 22 Indian states allow the Company to generate risk-mitigated, well-diversified and well-spread construction revenues. The future prospects of the Company are set to improve with benefits accruing from the new arbitration guidelines, faster clearances, inflow of new orders, conducive government policies, industry expectations of a revival in traffic growth and overall positive sentiment for macro-economic recovery. In the past few months, the Company has established a strong foothold in the market by securing a number of contracts and also raised funds by way of QIP and Prefrential Issue, for augmenting its working capital resources to cater to growing business needs.

Your Company remains committed to recruiting, training and development of our people and providing them with an environment to grow. The Company''s HR strategy is based on strategic pillars - Talent, Leadership & Culture. Our strategy is to deploy a judicious mix of specialists & local good talent. We take pride in our employee strength of over 8000 creating a robust incubation of ideas, skills and expertise.

As such, infrastructure is an indispensable input in an economy''s growth. Indeed, it is hard to imagine any production process in any sector of the economy that does not rely on infrastructure. Conversely, inadequacies in infrastructure are quickly felt— power outages, insufficient water supply, and decrepit or non-existent roads adversely affect people''s quality of life. India is one of the fastest growing markets for construction. With infrastructure development at the forefront, there is a great scope for development in the country, especially for developing urban infrastructure, under-ground rail and road networks, and so on. However, there are a number of issues like shortage of qualified workers, project complexity, technology adoption, clearances from the governments, land acquisition, etc plaguing the construction industry. Land acquisition and environmental clearances have been delayed leading to cost escalations, delayed execution and thus a delay in the start of revenue receipts. Government should focus on removing hurdles in land, policy and finance, which would help get projects off the ground. There is a good project pipeline that has been built and removal of pending bottlenecks will create a huge positive impact for the sector.

With our eyes firmly fixed on becoming one of the largest players in the industry, and focus entirely on EPC projects, we are set to create new benchmarks in excellence and quality by building new-age infrastructure that will transform the face of India. The government plans for affordable housing is another opportunity area that we shall explore aggressively, as we chart our future growth.

There is much to be excited about. Governments continue to demonstrate a strong desire and ambition to invest in infrastructure, both as a catalyzer of economic growth and improving the quality of life of the citizens. New technologies and rapid innovation are creating new approaches, models and tools for infrastructure development and helping to bring down costs. The quest to identify new pricing and funding models offers the potential to unblock pipelines and unleash a new era of rapid development.

On a concluding note, I convey my heartfelt thanks to all shareholders for their continued trust and confidence in the management of the Company. My gratitude to my colleagues on the Board for their valuable guidance. I also convey my sincere thanks to all our employees, customers, bankers and all other business associates and the Government and various authorities for their continued support, interest and confidence in the Company and its management.

Rajiv Mundhra

Executive Chairman

स्रोत: रेलीगरे टेचनोवा

न्यूज़ फ़्लैश

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