ERA INFRA ENGINEERING LIMITED
ANNUAL REPORT 2011-2012
I am delighted to welcome you to the latest issue of our Era Infra`s Annual
Report. Embarking on a journey of success of last financial year, this year
began on a promising note. Firstly let me take you for a detailed overview
of the last year.
The FY2011-12 was a year that came with a lot of obstacles - to recover
economy internationally as well as at domestic level, to uplift the general
GDP of the country, to control the after effects of Euro debt crisis,
turmoil in Middle East countries, rising crude oil prices, destruction in
Japan, complemented with inflation, rising dollar prices, adverse market
conditions, non-availability of appropriate long term finance, causing many
large infrastructure project developers in India, including Era Infra
Engineering Limited to face cash flow pressures. But, the point of recovery
was not too far. Given the fact that fiscal consolidation was back on
track, savings and capital formation is likely to start rising, GDP for the
year 2012-13 and 2013-14 are expected to rise to 7.6% and 8.6%
respectively. It`s a steep curve ahead.
As expected Infrastructure Sector, a catalyst in the development of all
other sectors of the economy, took the lead this year. The Government has
identified infrastructure as one of the leading engines of growth and
development. An investment of US $500 billion in infrastructure sectors is
proposed through a mix of public and private sectors to reduce deficits in
identified infrastructure sectors. The Prime Minister has promised
contracts of highways and port projects worth 5,000 crore (U5S 6.13
billion), besides public-private partnership (PPP) projects to develop at
least 20 airports. The current budget highlighted award of contracts to
build 8800 km of roads in 2012-13. This is a beginning of a promising
period for Infrastructure in India.
Growth has been a continuous process with Era Infra. We are an organization
that combines scientific, financial, managerial, operational skills and
resources. Our assets-infrastructure, power projects, education and
building products integrate to make a robust performance to provide an
impetus to the Indian infrastructure industry as a whole. With our
persistent efforts in the year 2011-12, our sales revenue leaped to
Rs.4,349 crores with a net profit of Rs.202 crores. Fresh order inflows
and the quantum of the Order Book always determine a company`s ability to
thrive and grow. Results on both these counts have been significant as the
company achieved an impressive growth in order inflows for FY12.
Consequently, the order book position stood at an impressive Rs.14,077
crores till 31st March 2012. Margins have, yet again, registered an
improvement and the company is hopeful of sustaining margins at a level
close to this, despite volatile commodity prices and competition.
Engineering Procurement & Construction
The Planning Commission, in its approach paper has projected an investment
of ever Rs.45 lakh crore (for about US $ 1 trillion) during the Twelfth
Plan (2012-17)- The encouraging cumulative spending by the government in
the infrastructure sector ensures an optimistic outlook in the industry.
Our EPC order book position painted a bright picture with orders across
diverse sectors such as power, roads/highways, aviation, railways, metro,
refinery, social infrastructure and industrial construction. With
encouraging projects of Metro Line development, large scale housing
projects, power transmission and distribution projects, Era Infra is
currently at a great place. Era Infra proved its stature by procuring
several big ticket orders. Apart from our traditional emphasis and presence
in the power, urban infrastructure, commercial complex, housing and
industrial as well as institutional sectors, we have our vision to enter in
the domains of steel, healthcare and oil and natural gas, each of which are
vital to India`s future development.
* Consolidating presence in the existing sectors by executing larger-sized
* Enhancing pre-qualification parameters through strategic alliances and be
* Targeting projects across upcoming infrastructure segments such as:
Irrigation. Ports, Dedicated Freight Corridor etc.
Equipment Management Division
Though a challenging year globally, we have successfully managed in
consolidating our position nationally as well as internationally. The
infrastructure development is in face to face with a positive phase and
that demands for construction equipment both in the internal as well as the
external context. The ever-increasing demands from builders and
construction companies to expand their capabilities and leasing equipment
for a build project is a lucrative option as compared to investing in
capital expenditure. For companies with a large equipment bank like ours,
this is an ideal way to utilize idle machine time and earn revenues. The
equipment leasing business of the company has been robust revenue earner
and would continue to do so in the years to come.
* Provide complete equipment solutions.
* Increase the equipment fleet to bid for bigger orders.
* Optimum utilization of machinery and upscale productivity through proper
Era Infrastructure (India) Ltd.
To meet the requirements of India`s infrastructure, the government is
concentrating on the BOT projects under Public Private Partnership instead
of funding the slew of projects. This leverages the power of the private
sector to raise funding and handle large projects. Our group`s BOT
subsidiary is a dedicated unit that was set up to handle these kinds of
projects with plan.
* Creating core competence for Design & Engineering, Procurement 5
Construction on turn key basis and advisory for roads/highways projects.
* Focus on generating value added strengths in road/highway/transmission
Era T&D Ltd.
Powering the happiness of millions of Indians, Era T&D is creating an
impact at the power generation to grow simultaneously to deliver more power
to the people. Era T&D undertakes turnkey projects that help lay power
lines which will prove to be the lifelines for future development.
* Strive for bigger transmission 8 distribution projects.
* Focus on repair and maintenance contracts for electrical S mechanical
* Execute turnkey jobs in India and overseas (Middle East, Africa etc.).
Serving our Stakeholders
Without taking a simplistic approach and without surrendering to passing
fashions, we have to measure the importance of our Stakeholders. We seek to
proactively manage our relationships with our Stakeholder communities to
mutual benefit. To our Shareholders, we are committed to deliver ever
increasing valuations and returns, to our employees we offer enhanced
career building opportunities, to the communities we deliver infrastructure
for a better tomorrow and to the industry and business in the geographic
areas we operate in, we offer the possibility of a bright future.
Let`s unite together with a sincere commitment towards this vision and
would take this opportunity to thank our Board of Directors for the advice,
guidance and mentoring they have provided us in our attempt to build the
lifeline for tomorrow.
Chairman & Managing Director