As the Chairman & Managing Director, I am very happy and proud to
share our Company's 29th Annual Report. We play a crucial role in
India's power infrastructure sector, and I feel privileged today that our work at the
company allows us to shape a brighter future for our nation. Thus, by focusing on
improving the sector and working on diverse projects, we strive to bring lasting benefits
to all the stakeholders.
Performance overview in the last fiscal
In the fiscal year 2023-24, Konstelec Engineers Limited achieved
remarkable success, surpassing various milestones and overcoming challenges. We completed
diverse projects across sectors, contributing significantly to our nation's progress.
Our commitment to excellence and innovation has positioned us as a leading entity in the
infrastructure industry.
We are proud to report that our total order book has exceeded H650
crores for the first time in our Company's history, reflecting the trust of our
esteemed clients while laying a strong foundation for future growth. With consolidated
revenue reaching H215.32 crores, we achieved an impressive 40.36% growth compared to the
previous year. Consolidated Net Profit jumped to H8.92 crores, recording a 24.18%
improvement from the previous year.
Despite the growth in absolute numbers, profitability dipped marginally
from 10.42% in FY23 to 9.41% in FY24. This slip was owing to elevated inflation that
spiked input prices of procured material. Return on Capital Employed was recorded at
17.90%. At the same time, Return on Equity stood at 9.49%, and consolidated EPS stood at
H7.62, reflecting strong financial performance across operational and investment metrics
while underscoring our commitment to enhancing profitability and efficiency as key
priorities moving forward. The business's overall improvement stemmed from focusing
on long-term goals: specialising in niche markets protected the company from intense
competition, achieving economies of scale by handling larger contracts, investing in
advanced equipment for better efficiency, and maintaining strict control over working
capital.
Outlook
India is experiencing an exciting phase in its history, presenting our
Company with unprecedented opportunities. The country is undergoing significant changes
focused on growth and modernisation, especially in infrastructure development. This shift,
coupled with the country's robust consumption story, is encouraging substantial
investments from existing players in the infrastructure and manufacturing sectors.
Our company is part of this larger growth story, benefiting from
India's economic direction, which supports our accelerated growth. As the world
increasingly looks towards India alongside China, it opens up new opportunities for
companies involved in shaping India's future.
Looking ahead, Konstelec Engineers Limited is poised to capitalise on
several transformative trends shaping India's economic landscape. With initiatives
like Make in India and Atmanirbhar Bharat driving local manufacturing, our focus remains
steadfast on contributing to a robust manufacturing-led economy. The shift towards a $10
trillion economy vision and the China+1 strategy further underscores our commitment to
expanding our market presence and enhancing our competitiveness.
As we navigate these dynamics, we aim to enhance our focus on more
high-value contracts through improved pre-qualification processes. Expanding our
integrated business offerings will likely drive revenue growth and margin improvement. We
are intensifying our leadership in the petroleum products sector, particularly in
refineries and storage terminals. Embracing automation across shopfloors and venturing
into the renewable energy market will diversify our EPC contracts, emphasising higher
O&M segment shares.
We plan to expand into new states, increase our industrial footprint,
and strengthen our presence in international markets like Nigeria, Africa, and the MENA
region. Additionally, we're bolstering our portfolio with high-margin projects in the
chemical, pharmaceutical, and FMCG industries while investing in recruiting, training, and
retaining top talent to sustain leadership across all segments.
We are also strategically aligning with global and local imperatives.
Our global strategy, thus, emphasises cost efficiency and high-quality implementation,
ensuring that we meet international standards while catering to local needs.
Sustainability and renewable energy will be integral to our operations, reflecting our
dedication to environmental stewardship and leveraging clean energy solutions.
Moreover, with expectations for increased private sector capital
expenditure (capex), we anticipate greater opportunities to partner on critical
infrastructure projects across the nation.
Thus, by leveraging our expertise in power infrastructure and staying
ahead with technological advancements, we are well-positioned to drive growth, foster
innovation, and contribute meaningfully to India's economic trajectory.
In closing, I would like to extend my sincerest appreciation to all our
stakeholders who have been instrumental in our success. My heartfelt thanks go to our
Board, team members, and colleagues who have worked tirelessly throughout the year. Their
dedication, hard work, and valuable contributions have been crucial to our progress.
Together, we have achieved significant milestones, and I am grateful
for the collective effort and commitment that has driven our success this year.