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Message from Chairman
I present before you the Financial Report for the year 2012–13. The year has been a testing period not only for Sadbhav but all over the world, due to the melt down in the global economy.
As per the Mid–Year Economic Analysis, 2012–2013, Ministry of Finance Department of Economic Affairs Economic Division, the Indian economy after reporting a fairly robust growth of over 9 percent during 2005–08, moderated to a growth of 6.7 percent in 2008–09 because of the global financial crisis. Because there was fiscal and monetary space, timely stimulus allowed the economy to recover fairly quickly to a growth of 7.4 percent in 2009–10 and 8.4 percent in 2010–11. Since then, however, the fragile global economic recovery and a number of domestic factors have led to a slowdown once again.
Having achieved a GDP growth of 5.1 percent in 2010, the rate of growth in the global economy declined to 3.9 percent in 2011 & 3.1 percent in 2012 and is expected to grow by 3.1 percent in 2013, as per the World Economic Outlook released by the IMF in July 2013. The rate of growth of advanced economies declined from 3.0 percent in 2010 to 1.7 percent in 2011 & 1.2 percent in 2012 and is expected to grow by 1.2 percent in 2013.
Despite the grey scenario of the global economy, Sadbhav has presented a robust order book of ` 9602.48 crores as on 30th June, 2013 which stands at 5.3x of FY13 revenue out of which Transport sector contributes a major portion to the total order book at 65%, Irrigation sector contributes 15% and Mining sector forms 20% of the total order book. Our order book has been growing at a healthy CAGR of 22% during last 5 years.
For the financial year 2012–13, Revenue from Operations for the company was Rs 1,811.00 crores and PAT was Rs74.07 crores on a standalone basis while the Revenue from Operations and PAT were Rs 2,159.59 crores and Rs 7.48 crores respectively on a consolidated basis. Sadbhavs standalone revenue has grown a healthy CAGR of 14.3% over the last 5 years and is expected to continue this upward momentum looking at its healthy order book. SEL has a net worth in excess of Rs 800 crores with a debt to equity ratio of 0.7x.
During FY13, the company has forayed into major EPC works of diverse segments – 8 in Irrigation, 3 in Mining and 2 in EPC Transport. I take pride in citing that we have bagged 2 Marquee BOT Projects due to which Sadbhav now has one of the largest domestic BOT project portfolios in roads and highways. 8 BOT projects out of 13 BOT projects are operational which provides strong internal source of funding for next level of growth. During FY13, the company has secured 2 large road BOT assets of Rs 1,947.68 crores with 100% stake.
It is said that the night is the darkest before dawn but our value of Respecting Quality & Time, year after year, has been the light house on the rough seas. Our valuable team of nearly 1740 extraordinary men and women who operate and maintain Sadbhavs high quality and execute projects on time are constantly striving to navigate the company on the rough seas of the stormy global economy.
With ongoing projects worth as on 30th June, 2013 approximately,
Rs. 4,534.66 crores, in BOT Transport sector;
Rs 1,696.20 crores, in EPC Transport sector;
Rs 1,406.28 crores, in Irrigation sector;
Rs1,965.34 crores, in Mining sector;
Sadbhav is assured that the storm will pass and we will together achieve new heights of success.
We cannot forget what the poet Robert Frost wrote,
The woods are dark and deep; we have promises to keep and miles to go before we sleep.