Dear Shareholders,
It is my honourto address you all and share your Company's Annual
Report forthe Financial Year 2023-24.
The macro environment for business has been cautiously optimistic
during the period under review.The global economy was stable with 3.2% growth in the
calendar year 2023 over 2022. Though the growth rate was lower than 3.5% of 2022 but it is
projected to remain stable at 3.2% during 2024. The global economy has stayed resilient in
the midst of geo-political conflicts between Russia and Ukraine besides the continued war
conflict in the Middle-East or West-Asia.The cumulative of Emerging Markets &
Developing Economies post a healthy growth rate of 4.3% in 2023 against 4.0% in 2022.
While the Euro area remained subdued, the U.S. economy continued to grow. One most
positive aspect of macro environment has been the strong performance by Indian economy.
Indian economy grew by 8.2%growth during Financial Year 2023-24 (FY24) compared toFY23
while Gross Value Added (GVA) at 2011-12 prices increased by 7.2%. This balanced character
of progress on the demand as well as supply side gave the right impetus forthe economy.
The industrial segment of the Indian Economy made a strong come back in terms of
manufacturing GVA which rebounded from a negative number in FY23 to a 9.9% growth. The
much heightened construction activity in the infrastructure sector and highest
evertaxcollectionbytheGovernmenthaveaddedamajorpushtoeconomicgrowth.
With many positives to the India growth story, India is expected to
become third-largest economy across the globe by 2030. The various policies and campaigns
of the Government are helping many major industries also to grow.The prominent government
schemes like 'Swachh Bharat Abhiyaan', 'National Infrastructure Pipeline'; infrastructure
development for '5G Network' rollout; the setting of up a 'Sixth Generation (6G)
Innovation Group' by Department of Telecommunications (DoT); Digital India programme; 24%
allocation of total government investments to renewable energy; and 12% investment
allocation to Railways, theseall augur well for sectors we operate in.
Financial Year 2023-24 (FY24) has been anotheryear in the strategic
phase in your Company's journey to consolidate and streamline its businesses. Our
objectives have been to strengthen the financial health; ensure viability in projects we
pick; complete the on-going projects; improve debt position; and rationalize the business
structure. During FY24, we are working further on this strategy and took important
decisions and significant steps.
The year FY24 also witnessed some strong decisions to rationalize our
business structure and optimize our costs further to have sound financial health for
long-term sustainability. During FY24, your Company posted consolidated turnover of INR
38,849.80 lakhs as against INR 34,944.16 lakhs in the previous financial year - a growth
of 11.2%. This growth in consolidated revenues was primarily contributed by Engineering
Services (ES) and Facility Management Services (FMS). While the ES revenues grew by 23.9%
from INR 6,941 lakhs in FY23 to INR 8,600 lakhs in FY24, the FMS business grew by 23.2%
from INR 17,863 lakhs in FY23 to INR 22,011 lakhs in FY24. Our Municipal Solid Waste
Management (MSW) business posted revenues of INR8,238 lakhs with a 0.2%growth overthe
previous year.The contribution to consolidated revenues was 56.7% from FMS business, 22.1
%from ES business and 21.2% from MSW business.
During FY24, we continued on our strategic agenda of reducing our debt
though amicable One Time Settlement (OTS) with our lenders. During the year under review,
we have concluded full Cash OTS with our three major Lenders, thereby, significantly
reducing our debts. The debt reduction will pave way for the future growth of the Company
with least possiblefinance cost and with less leveraged balance sheet forfuture business
opportunities.
Going forward, your Company will focus on the strong mainstays of its
business i.e. FMS business and MSW business besides exploring profitable and viable
projects in ES business. The Company will continue to strengthen its balance sheet gearing
for future growth. Our on-going efforts, with our lenders for amicable settlements, will
continue and all endeavours will be towards faster resolution. Our project execution
capabilities and trust of our customers will keep our focus on executing and completing
all on-going projects. With advent of new age technologies like Al, Big Data, Analytics
and Machine Learning etc, our endeavours will be integrate these technologies to a larger
extent in our business.
I would like to express my sincere gratitude to the Board for its
continued guidance and support. I would like to place on record my heartfelt gratitude to
all our stakeholders including our investors, employees, vendor partners, lenders and
customers for their continued trust and support to implement our long-term strategic
agenda for growth & sustainability.