Sadbhav Engineering Ltd

& Managing Director

Dear Shareholders,

As we reflect on the project accomplishments and challenges of FY'23-24, I take this opportunity to present the annual report and the outlook that your Company Sadbhav Engineering Limited foresees. This year your Company has demonstrated resilience and innovation, and it sets a promising foundation to create a sustainable infrastructure for a brighter tomorrow. I take this opportunity to share with you the vision, achievements, and the path ahead envisaged by your Company.

The roads, bridges, and irrigation systems that your Company constructs today lay the foundation for a prosperous future. The commitment of your Company extends beyond mere construction; it's about shaping lives, connecting communiies, and fostering progress.

The Indian economy is expected to maintain its growth momentum in the coming years, supported by a young and growing workforce, increasing urbanization, and continued reforms.

The focus on sustainable infrastructure, digital transformation, and investment in human capital will play a crucial role in shaping India's economic future.

No progress is possible without the policy support of the Government. India's fiscal policy remains focused on maintaining macroeconomic stability while supporting growth through strategic spending on infrastructure and social programs. The progressive policies of the Government of India, has set ambitious targets for highways and roads. The Budget for FY'23-24 included an extension of the 50-year interest-free loan to state governments for an additional year.

This initiative aims to boost infrastructure investment and encourage complementary policy actions, with a significantly increased allocation of Rs. 1.3 lakh crore (US$ 16 billion). The Ministry of Road Transport was allocated Rs. 2,70,435 crore, 25% higher than the revised estimates of FY'22-23. Most of the additional allocation (60%) has been earmarked for investment in NHAI. The budgetary allocation has increased since NHAI would not borrow from the market. Construction of roads is primarily done through public funds.

The National Investment and Infrastructure Fund (NIIF) launched by Government of India is a collaborative investment platform involving the Government of India, global investors, multilateral development banks (MDBs), and domestic financial institutions. The NIIF is designed to facilitate investments across multiple sectors in India, including through an India-Japan Fund.

The Ministry of Jal Shakti was allocated Rs. 97,278 crore for 2023-24, a 31% increase over the revised estimates for 2022-23. The Jal Jeevan Mission received the highest allocation (Rs. 70,000 crore). River Interlinking saw an increase in allocation due to the implementation of the Ken-Betwa Link Project. Funds have remained underutilized in schemes such as the Swachh Bharat Mission- Gramin, Atal Bhujal Yojana, and Namami Gange.

The road to progress is often fraught with roadblocks and challenges. Your Company remains steadfast and staunchly believes that those roadblocks are the new stepping stones to achieve growth and challenges are the new opportunities. Your Company has weathered storms, overcome obstacles, and emerged stronger from the adverse impacts that it faced during recent past. Your Company's commitment to creating infrastructure in the road, irrigation, and mining sectors remains unshakable. Your Company understands that these projects are not just concrete and steel; they are lifelines that empower people and drive economic growth. Your Company has executed prestigious projects, across 15 states, exemplifying its commitment to this vision.

Your Company is proud to have contributed the key infrastructure projects like Eastern Peripheral Expressway, India's first smart expressway, dedicated to the nation and the iconic to the infrastructure development of the nation, today. Such milestone projects are not just a testament to your Company's excellence but also reflect its dedication to timely execution and quality. Your Company's aggressive approach aligns with the government's vision to establish the country's name in the ivy league of the most developed nations.

Beyond roads, your Company delves into mining and irrigation. These sectors hold immense promise. As your Company excavates minerals and builds irrigation channels, it enhances livelihoods and ensures sustainable growth. Your Company strategically focuses on efficiency, safety, and environmental responsibility. Sadbhav Engineering Limited believes that we are not just builders; we are stewards of progress.

During the reporting period, your Company has reported a turnover of Rs. 1013.44 Crores with total income of Rs.1077.46 Crores. Your Company has constructed over 9,621 lane kms as of March 31, 2024. The Company has completed a total of 46 projects in the transportation sector in which 43 of Highway Projects (Out of which 11 are EPC Projects, 11 BOT projects, 20 Item rate projects and 1 Annuity project) as on March 31, 2024. The irrigation division of your Company has completed canal work over 819 km and the mining division has mined over 574 cubic meters as of March 31, 2024.

From the uttermost recesses of my heart, I thank all the stakeholders-shareholders, clients, contractors, suppliers, community members, employees, and government authorities-who have given us strong support. I take this opportunity to reaffirm that Sadbhav Engineering Limited is resolute in its commitment to creating sustainable infrastructure for a brighter tomorrow.