Dear Shareholders,
The steady rebound in the Indian economy, a recession in the severity of COVID-19, and
the positive optimism in many businesses, especially the infrastructure sector, have all
augured well in the second half of FY 2021-22. I am confident that you and your families
are handling the challenges well and staying healthy and safe.
Despite the enormous challenges posed by the pandemic, the Government's large-scale
vaccination drive covering most of India's vulnerable and needy population has boosted the
confidence of people, businesses and systems to adjust to the new emerging norms.
A look at Likhitha Infrastructure's performance in FY 2021-22 gives me immense
confidence and reinforces the strengths that you all bring to it. Our Initial Public Offer
(IPO) received a very encouraging response, despite the tough conditions.
As planned, we intend to utilize these funds for our Working Capital requirements and
general corporate purposes in the areas we operate in the near future. With over three
decades of technical experience, your company will expand its presence throughout India
and across the globe.
As you are aware, we develop pipeline networks across the country, along with
construction of associated facilities. We intend to scale up the portion of O&M in our
portfolio along with construction of cross-country oil and gas projects, City Gas
Distribution (CGD) system development, and CGD network.
The O&G sector showed a mixed trend in India in FY 2021-22. While crude oil
production at 29.69 million tons fell 2.63% from 30.5 million tons a year earlier, natural
gas output rose 18.64% to 34 billion cubic meters, driven by newer Oil & Gas field
discoveries and a push by private players.
Over the past two decades, your company has devised strategies to factor in these
shifts and changes; it has also gained customers' confidence by executing most of its
projects ahead of schedule, even as it upgraded its competencies in the O&G pipeline
sector. With meticulous planning and strategy we have also moved into new geographies with
a felt demand for infrastructure services. These well-thought-out moves have not only
helped expand our operations, but also consolidated our position in this highly
competitive area, while ensuring attractive margins.
The first quarter of FY 2021-22, especially April and May, saw COVID's resurgence
across India and impact all activities. The subsequent quarters, however, saw economic
activity bounce back with greater vigor. The robust strategy we have built over the years
helped us take advantage of this acceleration and register a good growth rate during the
year.
On Standalone basis, the revenue from operations stood at Rs.257.13 Cr compared to
Rs.190. 62 Cr in the previous registering a growth of 34.89% and operating margins
improved to 56.25% for the current financial year and on Consolidated basis, the revenue
from operations stood at Rs.257.21 Cr for the current financial year.
Banking on its good track record of successfully completing its projects ahead of time,
your company looks to bag bigger and more complex projects in its core O&G business
sector, from large companies and diverse clients in the near future.
Your company is especially bullish on the projected higher growth. According to the
International Energy Agency, consumption of natural gas in India is set to grow by 25
billion cubic meters, at an average annual rate of 9% until 2024, propelled by the
momentum given by rising infrastructure and supportive environmental policies.
To remain ahead of the competition, your company has maintained its disciplined line to
execute projects, focus on cost efficiencies and newer markets, and invest in developing
customized solutions for its clients.
Introduction of advanced technology is a continuous process in your company, which has
always been quick to adopt good industry practices on the modernization front. It also
maintains an adequate inventory of the diverse fleet of equipment required, which gives it
the edge to accelerate implementation, cut overheads and improve productivity.
Your company puts a high premium on ensuring the safety and health of its employees in
all categories while adopting to environmental friendly construction practises.
Our activities are drawn up in strict compliance with statutory health and safety
regulations. We have in place a comprehensive Environment,
Health and Safety Policy aimed at zero accidents, effective hazard management and
concerted efforts to reduce our carbon / environmental footprint.
Your company also actively upgrades its employees' knowledge and skills, in order to
develop them into an experienced, motivated and well-trained workforce that is crucial for
effective implementation of our business. In addition to training them to augment their
productivity, we also seek to improve their career paths and enhance their personal
wellbeing through various employee engagement initiatives.
I take this opportunity to extend my heartfelt appreciation to all our shareholders,
customers, employees, Board Members and all other stakeholders for their trust and
continuing support and loyalty towards Likhitha Infrastructure.
Sivasankara Parameswara Kurup Pillai
Chairman.