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My Dear Fellow Stake Holders,
There is a strong sense of responsibility even as I pen this note, in the first year of Prakash Constrowell Limited as a listed entity. Firstly I would like to thank each of our shareholders who have reposed faith in our Company at the time of the Initial Public Offering (IPO) and thereafter.
Further it gives me great pleasure to extend a very warm welcome to you all at the 16th Annual General Meeting Prakash Constrowell Limited (PCL) and especially because this is the first AGM post listing. The Notice convening the meeting, the Directors' Report and the Annual Audited Accounts are enclosed herewith for your reference.
The financial year 2012 witnessed highly competitive environment in the Infrastructure & construction space. The world is witnessing economic slowdown and India is no exception to this. Overall industry scenario has been depressing on account of rising financial cost, shortage of labour and delays in clearances from various clients and government departments. I am delighted to report to you that despite all these factors, PCL has shown steady performance in the year. PCL has faced lower operating margins compared to previous years, but performance could be collectively termed as steady on account of diversified order book, healthy debt service coverage and growth in turnover. This is company's sixth consecutive year of booking stronger financial and operational performance figures compared to previous year.
Event of the year
Uncertain economic conditions and changing financial costs have always put pressure on company's organic growth and acquisitive expansion. The Company believes that access to Capital markets will not only fetch maximum value for the company but also enhance the public profile of the company.
With above vision company opened subscription on 19 Sept, 2011, with intention to raise equity to the tune of Rs. 60 Crore. Thanks to you all, and company's offering was oversubscribed 2.35 times, resulting in expected fund raising, and you people becoming shareowners. The company allotted 4347826 no. of equity shares of Rs. 10 each at premium of Rs. 128 per share, and company's shares hit the bourses on 4 Oct, 2011.The proceeds of the above referred issues were utilized for the purpose for which it was raised as stated in various outcomes, financial results and prospectus.
The fund raised is going to create the required liquidity in the company, which provides leverage to make our business model more assets oriented. The Company is also expanding its participation in private construction segment with this liquidity and profile.
With clients, geography and service delivery having largely diversified aspects, it becomes difficult for the company to have complete operational and management control. Diversification also brings about higher operating costs and critical day to day management. Such Execution environment also affects the capacity of an enterprise to undertake strategic planning decisions.
To ensure consistent growth path of the company, along with end to end visibility and optimum utilization of resources, arises a need to have integrated and real time system for reporting and information.
Company has already bought a "Enterprise Resources Planning" application, implementation of which is in process and we expect to deliver the results in a year or two. The company expects to streamline workflows and processes with improved efficiency and improved cost once the application is implemented totally.
Civil construction remains as a backbone vertical for the company, but real future lies in development of infrastructure work with participation. Company currently has two projects under BOT segment for development of urban infrastructures, which are expected to be operational within the span of two years. PPP model is expected to come up with lot more projects in coming days considering the need for infrastructure and policy initiatives. And at PCL we are looking forward to bag every possible opportunity.
Another segment that company is currently in a process to unfold on large scale, is offering "affordable residential units". Housing shortage in India is no more a secret, but offering a right product considering all the aspects of the demand is a critical task. Company's objective is to deliver range of products, with suitable combination of customer mix.
Another significant development has been extension of our geographical boundaries beyond Maharashtra to the states of Karnataka, Uttar Pradesh, Andhra Pradesh and Tripura. Company intends to continue the widening of geographical boundaries.
In terms of figures, the majority of under execution projects of the company are to be executed in the current year, thus companies financial figures for the year 2012–13 are going to show all–round robust growth in top line and bottom line.
Vote of Thanks
Our years of experience and the professional team that has been with us for many years now, will help us continue to stay ahead of competition and enrich and add value for all our stake holders.
I'm also thankful to my colleagues on Board for their value addition and contribution in the governance of the Company. I'm grateful to you all for your support & trust shown in my team and seek your continued support in taking the Company through newer innovations to higher growth and success.
I assure, our journey to the mission has just begun and I request you to witness the future milestones.