PBA INFRASTRUCTURE LIMITED
ANNUAL REPORT 2010-2011
CHAIRMAN`S REPORT
Dear Shareholders,
It is my pleasure to welcome you all to the 37th Annual General Meeting of
your Company. This year has been tough for the Infrastructure Industry
with the overall pressure on the Infrastructure Segment. The National
Highway Authority of India (NHAI) projects have made much less headway
than was expected. It, however, appears that most of the road blocks have
been removed and hopefully the coming year will be much better than the
last.
OUTLOOK
Everyone recognizes that India desperately needs physical infrastructure.
To achieve a steady 9% growth in GDP, there has to be 12% to 14% growth in
infrastructure outlay - in roads, power, ports, airports, telecom, urban
facilities and much else, it isn`t happening today. Fortunately there is a
growing awareness that growth in Infrastructure alone can and will bring
about a healthy growth in GDP.
YEAR UNDER REVIEW
PBA has continued to strive to progress significantly to the top line by
contracting through Joint Ventures in projects where it can not qualify to
quote alone. Income from Contract Receipts JV increased from Rs. 4068.16
lacs to Rs. 4457.98 lacs. The Net Profit after Tax stood at Rs. 953.97
Lacs i.e. 4.09% compared to previous year Rs.1227.00 Lacs i.e. 3.89%. The
Company is also maintaining a healthy EBIDTA Margin for last several years
due to operation expenses. Bottom Line of the Company has shown improvement
even though top line has not reached the expected levels.
DIVIDEND
Continuing with its commitment to share the profits of the Company with its
shareholders, your Directors have recommended a dividend @10%.
FUTURE PROSPECTS
The Company has recently been awarded by Gujarat State Road Development
Corporation the work of executing Bhuj-Bhachau Road (SH 42, km 0/0 to km
78/0) in the State of Gujarat on Build, Operate and Transfer (BOT) basis.
The Contract Amount is Rs. 425.00 Crores. This work is in a joint venture
in which our share is 49%. Your Company has Projects in hand amounting to
about Rs. 1100 Crores in various parts of the country. I am an optimist and
I believe that while there may be some deviations in the short run, sanity
and growth will ultimately prevail. The time of India has come - an India
of hope and opportunities of all kinds of entrepreneurships, of work, and
of growth. We will see infrastructure efforts being kick started yet
again. It is this hope that keeps me optimistic about our country as also
a bright future of your Company.
ACKNOWLEDGMENTS
I take this opportunity to express my sincere thanks to all the
Stakeholders for their continued trust in the Board of Directors and the
Management of the Company. On behalf of the Company I would like to
express my gratitude to all our Customers, Dealers, Suppliers, our JV
partners, Bankers, Financial Institutions and other Business Associates and
Employees for their continued and invaluable support and co-operation in
the year gone by and I am sure the same will continue in the years to
come.
Thank you,
(Ramlal R. Wadhawan)
Chairman & Managing Director |