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Change Change %
-1.35 -1.26%

Updated:02 Aug, 2021, 15:59 PM IST

Change Change %
-1.15 -1.07%

Updated:02 Aug, 2021, 16:00 PM IST

Chairman's Message: 

Dear Shareholders,

It has once again been an year filled with positive energy for your company. Our financial strength saw an impressive boost as Ashoka secured one of the largest private equity investments in highway sector. On the other hand we completed one of the most challenging bridge construction project in the country. The credit goes to you for trusting in us which motivates our team to deliver results and add value to your investments. Ashoka Buildcon Limited continues to build high quality roads and bridges. The Company definitely is a significant contributor to the infrastructure development in spite of the gloom all over.

We are seeing another year of stagnant economic activity, inflation in control but not enough to trigger growth, interest costs not abetting. These are also resulting into to low governmental activity in the infrastructure growth.

Nevertheless, with the robust order book in hand, your company has posted a decent growth on the EPC front. On the BOT segment, we have seen low toll revenue rise which is a function of national economic growth. We also encountered a premature stoppage of one of our smaller projects of Nagar Karmala by the PWD, GoM, which we are confident of getting compensated through arbitration. We could compensate this setback with early completion of two major bridges over Roopnarayan River in our Dhankuni Kharagpur Project which is 18 months in advance and will give advantage of high internal accruals and conserving equity. I take this as an opportunity to thank the execution team on behalf you shareholders.

The sector continues to hold a lot of potential and once the government policies are all in place, there is ample opportunity and as soon as the infrastructure spending takes off, economic activity will also boom and vehicular movement will improve to improve toll revenues.

The financial markets continue to be fettered with problems of liquidity, non availability of funds, high interest costs. In such a scenario, your Company is proud to be one of the very few companies who is comfortably placed. The joint venture with SBI Macquarie has significantly improved the Companies ability to take up new projects in the road sector.

With the confidence your Company has on its financial abilities, it declared a interim dividend of 20% and has proposed a final dividend of 20%. Your company also wishes to reward the shareholders and has also recommended a bonus of 1 share to every two shares held. With a view to improve liquidity in the stock market, the company has also proposed a split of share. I believe all these steps will go a long way in improving value to the shareholders.

Your Ashoka Buildcon, will continue to maintain its identity as a key road infrastructure developer, with execution and financial fitness.

The road ahead does have its own share of hurdles. We do face issues like land availability, clearances from Forest and Environment departments, etc. At Ashoka, difficulties are never considered synonymous with impossibilities. The challenges will be faced with a proactive approach and we are certain that the government will too make positive contributions. 

Ashok Katarlya 

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