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It is my pleasure in communicating with you through the 26th annual report. I shall take this opportunity to give you highlights of our results for FY 2011–12, a brief about the orders that we had won and the outlook for the future of your company, BGR Energy Systems Limited.
Your company now holds the distinction of having established itself as a strong player in the EPC segment and joins the big league to be among the top three in the Indian Power sector. Our revenue for last year was Rs. 3452 Crores and we earned a net profit of Rs. 224 Crores. The drop in revenues compared to the previous year is attributable to the sluggish pace of order inflows. Yet, the good sign of growth from within comes from the fact that our capital goods businesses – Air Fin Cooler division (AFC), Environment Engineering Division (EED), Oil and Gas Equipment Division (OGED) and Electrical Projects Division (EPD) – contributed 11.71% to the revenue compared to 7.17% last year. The AFC, EED and EPD business registered significant growth over the previous year. We achieved a higher EBIDTA margin of 13.73% and your board is pleased to recommend a dividend of Rs. 7.00 per share. As of 31st March 2012, your company carried an order book of over Rs. 15000 Crores.
FY 2011–12 was a hallmark year for BGR Energy winning large orders for EPC and supply of Boiler, Turbine and Generator. On 15th September 2011, BGR Energy emerged as the successful bidder for NTPC's 9x800 MW Supercritical Steam Turbine and Generators. We would supply four TG units to 2x800 MW to Lara Super Thermal Power project in Chattisgarh and 2x800 MW Darlipali Super Thermal Power project in Orissa for an aggregate value of Rs. 2968 Crores. In quick sequence, we received an EPC contract for setting up 2x300 MW Thermal Power project in Chattisgarh by TRN Energy Private Limited with an order value of Rs. 1698 Crores.
On 29th February 2012, BGR Energy emerged as the successful bidder in NTPC's 660 MW super critical boiler tender. BGR Energy would supply six units to Solapur Super Thermal Power Project (2x660 MW) –Maharashtra, Meja Thermal Power Project (2x660 MW) –Uttar Pradesh and Raghunathpur Thermal Power Project, Phase II (2x660 MW) – West Bengal. The aggregate value of the contracts is about Rs. 5565 Crores.
BGR Energy's Electrical Projects Division was awarded a prestigious turnkey implementation contract by The Nuclear Power Corporation at two of its upcoming nuclear power plants. The order valued at Rs. 444 Crores involves supply, erection, testing and commissioning of main plant electrical systems including Nuclear island electricals at Kota, Rajasthan (2x700 MW) and Kakrapara, Gujarat (2x700 MW).
With great pleasure, I wish to inform you that last year, BGR Energy successfully completed the world's tallest natural draught cooling tower – 202 Metres tall having a diameter of 145 Metres at Kalisindh 1200 MW power project in Rajasthan.
Now, let me present you a quick summary of the Industrial context in which we were operating and the outlook. The Indian power industry was fraught with hurdles and challenges – coal availability, land availability and delay in approvals, lack of clarity in policies impacting businesses–your company's strategy to stay on its course and FOCUS on growth has paid dividends.
The Government of India's policy to impose 21% duty hike on imported equipment is expected to offer a level playing field for domestic manufacturers. While Independent Power Producers (IPPs) rely on imported equipment, State and Central Government generation companies prefer reliable domestic equipment manufacturers.
Our BTG manufacturing facilities which are being established in JV with Hitachi are expected to become operational in 2013. To all of us at BGR Energy, it is a leap forward in the tracks of our growth.
I thank you all for your continued support and providing us the inspiration to leap ahead. Your company continues to stay competitive providing exceptional service to a growing marquee customers like NTPC. We continue to add skilled manpower to strengthen our domain expertise and allow them to perform at their best with customer delight as their most critical key result area.
Chairman and Managing Director