MIRA
INFORM REPORT
|
Report Date : |
29.07.2011 |
IDENTIFICATION DETAILS
|
Name : |
IVRCL LIMITED (w.e.f.20.04.2011) |
|
|
|
|
|
|
Formerly Known As : |
||
|
|
|
|
|
Registered Office : |
M-22/3 RT, Vijayanagar Colony, |
|
|
|
|
|
|
Country : |
|
|
|
|
|
|
|
Financials (as on) : |
31.03.2010 |
|
|
|
|
|
|
Date of Incorporation
: |
16.11.1987 |
|
|
|
|
|
|
Com. Reg. No.: |
007959 |
|
|
|
|
|
|
Capital Investment / Paid-up Capital : |
Rs. 534.020 millions |
|
|
|
|
|
|
CIN No.: [Company
Identification No.] |
L45201AP1987PLC007959 |
|
|
|
|
|
|
TAN No.: [Tax Deduction & Collection
Account No.] |
HYDI01786B |
|
|
|
|
|
|
PAN No.: [Permanent
Account No.] |
AAACI5139B |
|
|
|
|
|
|
Legal Form : |
Public Limited Liability Company. The Company Shares are Listed on
Stock Exchange. |
|
|
|
|
|
|
|
|
|
|
Line of Business : |
Subject is engaged in the development and execution of
engineering procurement, construction and commissioning, and lump sum turn
key facilities in various infrastructure projects |
|
|
|
|
|
|
No. of Employees : |
800 [Approximately] |
|
RATING & COMMENTS
|
MIRA’s Rating : |
A (62) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
56-70 |
A |
Financial & operational base are regarded healthy. General unfavourable
factors will not cause fatal effect. Satisfactory capability for payment of
interest and principal sums |
Fairly Large |
|
Maximum Credit Limit : |
USD 74130360 |
|
|
|
|
Status : |
Good |
|
|
|
|
Payment Behaviour : |
Regular |
|
|
|
|
Litigation : |
Clear |
|
|
|
|
Comments : |
Subject is a well established and reputed company having fine track.
Financial position of the company appears to be sound. Fundamental are strong
and healthy. Trade relations are reported as fair. Business is active.
Payments are reported to be regular and as per commitments. The company can be considered normal for business dealings at usual
trade terms and conditions. |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – April 1, 2010
|
Country Name |
Previous Rating (31.12.2009) |
Current Rating (01.04.2010) |
|
|
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
D |
LOCATIONS
|
Registered Office : |
M-22/3 RT, Vijayanagar Colony, |
|
Tel. No.: |
91-40-23495201 / 23343550 / 3678 / 5130 / 8467 |
|
Fax No.: |
91-40-23495215 / 23345004 |
|
Email : |
|
|
Website : |
|
|
Location : |
Owned |
|
|
|
|
Head Office: |
8-2-596, 4th
Floor, |
|
Tel. No.: |
91 -40-23352961 /62/63 |
|
|
|
|
Corporate
Office : |
MIHIR, 8-2-350/5/A/24/1B, Road No. 2, Banjara Hills, |
|
Tel No.: |
91-40-23356613 / 15 /
18 / 21 / 51 to 55 |
|
Fax No.: |
91-40-23356693 / 23356695 |
|
|
|
|
Administrative Office : |
Located
at :
|
|
|
|
|
Work Sites : |
Located At: ·
Ahmedabad ·
Bangalore ·
Chennai ·
Delhi ·
Jaipur ·
Kolkata ·
Pune ·
Raipur ·
Bilaspur ·
Cochin ·
Lucknow |
|
|
|
|
Regional Office: |
Located At:
|
|
|
|
|
Divisional Office: |
8-2-348/2, Mirza
Gaffar Baig, Road No.3, Banjara Hills, Hyderabad-500 034, Andhra Pradesh |
|
Tel No: |
91-40-66412950/ 66412952 |
|
|
|
|
HRD, Design and Secretarial Departments: |
8-2-608-1-6,
Nairn Chambers, IVRCL Tower-ll, Besides Ofen Coffe Shop/Bakery, Road No. 10,
Banjara Hills, Hyderabad-500 034, Andhra Pradesh |
|
Tel No: |
91-40-234232227 / 4 / 5 / 6 |
DIRECTORS
As on 31.03.2010
|
Name : |
Mr. E. Sudhir Reddy |
|
Designation : |
Chairman and Managing Director |
|
|
|
|
Name : |
Mr. R. Balarami Reddy |
|
Designation : |
Director |
|
Experience : |
He is a Fellow
Member of the Institute of Chartered Accountants
of India, and Associate Member of the
Institute of Cost and Works
Accountants of India, and Institute of Company Secretaries of India. He practised as
a chartered accountant for a period of seven years before joining the
Company. |
|
Date of Birth : |
01.07.1954 |
|
Qualification : |
B.com , F.C.A , A.I.C.W.A ,A.C.S |
|
Date of Appointment : |
30.09.1998 |
|
|
|
|
Name : |
Mr. K. Ashok Reddy |
|
Designation : |
Director |
|
Date of Birth/Age : |
09.12.1955 |
|
Qualification : |
B.S.C , P.G.D.B.M |
|
Experience : |
MBA in Marketing and Finance
from Xavier Institute of Social
Sciences, Ranch!. He worked for 11 years with the renowned TATA Motors (erstwhile TELCO) before joining the
Company. |
|
Date of Appointment : |
30.09.1998 |
|
Email : |
|
|
|
|
|
Name : |
Mr. E.Sunil Reddy |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. T. N. Chaturvedi |
|
Designation : |
Director |
|
|
|
|
Name: |
Mr. T. R. C. Bose |
|
Designation : |
Director |
|
Date of Birth/Age : |
15.01.1941 |
|
Qualification : |
B.E. Electrical, FIIE |
|
Experience : |
40 years of wide
experience having held various
senior positions and finally as Director
Projects with A. P. State Electricity Board presently known as Transmission
Corporation of Andhra Pradesh Limited |
|
Date of Appointment : |
29.10.2004 |
|
|
|
|
Name: |
Mr. S. K. Gupta |
|
Designation : |
Director |
|
|
|
|
Name: |
Mr. P. R. Tripathi |
|
Designation : |
Director |
|
|
|
|
Name: |
Mr. E Ella Reddy |
|
Designation : |
Director |
|
|
|
|
Name: |
Mr. L. Srinivasa Reddy |
|
Designation : |
Whole-time Director |
KEY EXECUTIVES
|
Name : |
Mr. B Subrahmanyam |
|
Designation : |
Company Secretary |
|
|
|
|
Name : |
Mr. M. N. Rao |
|
Designation : |
Jt. General Manager (IT) |
|
Email : |
|
|
|
|
|
Name : |
Mr. K. Krishna Rao |
|
Designation : |
General Manager (Finance) |
|
Email : |
kkrishnarao@ivrinfra.com |
|
|
|
|
Name : |
Mr. V. S. Murthy |
|
Designation : |
Joint general Manager (Business Development) |
|
Email : |
|
|
|
|
|
Name : |
Mr. K. Panduranga Rao |
|
Designation : |
Group Head – HRD and Administration |
|
Email : |
pandu@ivrinfra.com |
|
|
|
|
Name : |
Mr. R. V. R. Murty |
|
Designation : |
Vice president (Commercial) |
|
Email : |
|
|
|
|
|
Name : |
Mr. K. H. K. Prasad |
|
Designation : |
COO-Water |
|
Email : |
|
|
|
|
|
Name : |
Mr. A. Vijay K. Reddy |
|
Designation : |
Head – Buildings and Industrial Structures |
|
|
|
|
Name : |
Mr. A. K. Reddy |
|
Designation : |
COO-Irrigation |
|
|
|
|
Name : |
Mr. R. K. Singh |
|
Designation : |
COO-Transportation |
|
|
|
|
Name : |
Mr. J. L. Vidya Sagar |
|
Designation : |
COO-Power |
|
Email : |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
(AS ON 30.06.2011)
|
Names of Shareholders |
No.
of Shares |
Percentage
of Holding |
|
(A) Shareholding of Promoter and Promoter Group |
|
|
|
|
|
|
|
|
17609910 |
6.60 |
|
|
7807274 |
2.92 |
|
|
25417184 |
9.52 |
|
|
|
|
|
Total shareholding of Promoter and Promoter Group (A) |
25417184 |
9.52 |
|
(B) Public Shareholding |
|
|
|
|
|
|
|
|
8687624 |
3.25 |
|
|
1430386 |
0.54 |
|
|
578642 |
0.22 |
|
|
128976517 |
48.30 |
|
|
139673169 |
52.31 |
|
|
|
|
|
|
55456425 |
20.77 |
|
|
|
|
|
|
39548152 |
14.81 |
|
|
3554121 |
1.33 |
|
|
3360807 |
1.26 |
|
|
827966 |
0.31 |
|
|
2526963 |
0.95 |
|
|
3428 |
-- |
|
|
2450 |
-- |
|
|
101919505 |
38.17 |
|
Total Public shareholding (B) |
241592674 |
90.48 |
|
Total (A)+(B) |
267009858 |
100.00 |
(1)
Indian
Individuals
/ Hindu Undivided Family
Individual
shareholders holding nominal share capital up to Rs.0.100 Million BUSINESS DETAILS
|
Line of Business : |
Subject is engaged in the development and execution of
engineering procurement, construction and commissioning, and lump sum turn
key facilities in various infrastructure projects |
|
|
|
|
Exports : |
|
|
Countries : |
|
|
|
|
|
Imports : |
|
|
Countries : |
|
|
|
|
|
Terms : |
|
|
Selling : |
Cash and Credit [30 days] |
|
|
|
|
Purchasing : |
Cash and Credit [30 days] |
PRODUCTION STATUS AS ON 31.03.2010
|
Particulars |
Unit |
Licensed
Capacity |
Installed
Capacity |
Actual
Production |
|
Galvanised Steel Structures |
MT |
24000 |
24000 |
11087.31 |
GENERAL INFORMATION
|
No. of Employees : |
800 [Approximately] |
|||||||||||||||||||||||||||
|
|
|
|||||||||||||||||||||||||||
|
Customers: |
End
Users, OEM’s, Steel and Construction Industry Public
Sector Clients
Private
Sector Clients
Central
and State Government Clients
|
|||||||||||||||||||||||||||
|
|
|
|||||||||||||||||||||||||||
|
Bankers : |
|
|||||||||||||||||||||||||||
|
Facilities : |
Note: Amounts
repayable within one year Rs. 3445.180 millions (Rs. 3409.940 millions) |
|||||||||||||||||||||||||||
|
|
|
|
Banking
Relations : |
-- |
|
|
|
|
Auditors : |
Statutory Auditors M/s. Chaturvedi and Partners Chartered Accountants 203, Kushal Bazar, 32-33, M/s. Deloitte Haskins and Sells Chartered Accountants Coromandal House, 1-2-10, Internal Auditors T. Vijay Kumar Chartered Accountant Plot #101, Jyothi Pride Apts., P.S. Nagar, Masab Tank, Hyderabad - 500
028. |
|
|
|
|
Joint Ventures : |
|
|
|
|
|
Associates : |
|
|
|
|
|
Subsidiaries : |
|
CAPITAL STRUCTURE
(As on 31.03.2010)
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
275000000 |
Equity Shares |
Rs.2/-each |
Rs.550.000 millions |
|
25000000 |
Preference Shares |
Rs.2/-each |
Rs.50.000 millions |
|
|
Total |
|
Rs.600.000
millions |
Issued, Subscribed and Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
267009858 |
Equity Shares |
Rs.2/-each |
Rs.534.020
millions |
|
|
{Of the above, following were allotted as fully paid bonus shares a) 18,660,500 shares of Rs.2 each (in 1999-2000) represents after subdivision of 3,732,100 shares of the face value of Rs. 10 each by utilisation of Rs.37.32 million from General Reserve b) 133,504,929 of Rs.2 each (in 2009-2010) by utilizing Rs.267.01 million from General Reserve} |
|
|
|
|
Total |
|
Rs.534.020 millions |
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE SHEET
|
SOURCES OF FUNDS |
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
534.020 |
267.010 |
267.000 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves and Surplus |
17998.570 |
17838.760 |
15788.600 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
18532.590 |
18105.770 |
16055.600 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
12688.050 |
10184.820 |
5787.900 |
|
|
2] Unsecured Loans |
3445.180 |
3795.430 |
4890.500 |
|
|
TOTAL BORROWING |
16133.230 |
13980.250 |
10678.400 |
|
|
DEFERRED TAX LIABILITIES |
124.770 |
117.410 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
34790.590 |
32203.430 |
26734.000 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
5663.940 |
5206.970 |
3191.900 |
|
|
Capital work-in-progress |
353.210 |
195.510 |
540.900 |
|
|
|
|
|
|
|
|
INVESTMENT |
6137.960 |
3892.030 |
3409.100 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS and ADVANCES |
|
|
|
|
|
|
Inventories |
2446.760
|
2093.490
|
1943.400
|
|
|
Sundry Debtors |
19445.240
|
13430.210
|
6584.900
|
|
|
Cash and Bank Balances |
1643.620
|
1008.680 |
1771.700
|
|
|
Other Current Assets |
16863.510
|
14292.510 |
0.000
|
|
|
Loans and Advances |
6605.800
|
9318.730
|
19941.100
|
|
Total
Current Assets |
47004.930
|
40143.620 |
30241.100 |
|
|
Less : CURRENT
LIABILITIES and PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
13966.390
|
10442.550
|
|
|
|
Current Liabilities |
9957.770
|
6352.590
|
9075.200
|
|
|
Provisions |
445.290
|
439.560
|
1573.800
|
|
Total
Current Liabilities |
24369.450
|
17234.700
|
10649.000
|
|
|
Net Current Assets |
22635.480
|
22908.920
|
19592.100
|
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
34790.590 |
32203.430 |
26734.000 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2010 |
31.03.2009 |
31.03.2008 |
||
|
|
SALES |
|
|
|
||
|
|
|
Income |
54922.780 |
49804.370 |
36605.950 |
|
|
|
|
Other Income |
155.060 |
299.130 |
44.080 |
|
|
|
|
TOTAL (A) |
55077.840 |
50103.500 |
36650.030 |
|
|
|
|
|
|
|
||
|
Less |
EXPENSES |
|
|
|
||
|
|
|
Construction and Manufacturing Expenses |
46281.020 |
42757.640 |
30965.120 |
|
|
|
|
Administrative Expenses |
3329.050 |
2828.910 |
2025.210 |
|
|
|
|
TOTAL (B) |
49610.070 |
45586.550 |
32990.330 |
|
|
|
|
|
|
|
||
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
5467.770 |
4516.950 |
3659.700 |
||
|
|
|
|
|
|
||
|
Less |
FINANCIAL
EXPENSES (D) |
1636.560 |
1306.140 |
478.220 |
||
|
|
|
|
|
|
||
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
3831.210 |
3210.810 |
3181.480 |
||
|
|
|
|
|
|
||
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
542.840 |
473.050 |
328.180 |
||
|
|
|
|
|
|
||
|
|
PROFIT BEFORE
TAX (E-F) (G) |
3288.370 |
2737.760 |
2853.300 |
||
|
|
|
|
|
|
||
|
Less |
TAX (I) |
1175.240 |
478.070 |
748.500 |
||
|
|
|
|
|
|
||
|
|
PROFIT AFTER TAX
(G-I) (J) |
2113.130 |
2259.690 |
2104.800 |
||
|
|
|
|
|
|
||
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
3082.030 |
2086.880 |
970.760 |
||
|
|
|
|
|
|
||
|
Less |
APPROPRIATIONS |
|
|
|
||
|
|
|
Proposed Dividend |
213.610 |
186.910 |
186.890 |
|
|
|
|
Corporate Dividend Tax C.Y. |
36.300 |
31.760 |
31.760 |
|
|
|
|
Earlier year’s provision no longer required |
-- |
(29.130) |
-- |
|
|
|
|
Transfer to General Reserve |
500.000 |
600.000 |
500.000 |
|
|
|
|
Transfer to Special Reserve |
-- |
375.000 |
270.000 |
|
|
|
|
Transfer to Debenture Redemption Reserve |
315.290 |
100.000 |
-- |
|
|
|
BALANCE CARRIED
TO THE B/S |
4129.960 |
3082.030 |
2086.880 |
||
|
|
|
|
|
|
||
|
|
IMPORTS |
|
|
|
||
|
|
|
Capital Goods |
71.180 |
173.820 |
NA |
|
|
|
|
Construction Materials |
391.450 |
115.680 |
NA |
|
|
|
TOTAL IMPORTS |
462.630 |
289.500 |
NA |
||
|
|
|
|
|
|
||
|
|
Earnings Per
Share (Rs.) |
7.91 |
8.46 |
-- |
||
Expected Sales ( 2010-11 ) : Rs. 60000.000 Millions
QUARTERLY RESULTS
|
PARTICULARS |
30.06.2010 |
30.09.2010 |
31.12.2010 |
31.03.2011 |
|
Net Sales |
11064.260 |
10750.250 |
14167.910 |
20522.110 |
|
Total Expenditure |
10056.590 |
9796.790 |
12765.860 |
18741.420 |
|
PBIDT (Excl OI) |
1007.670 |
953.460 |
1402.050 |
1780.690 |
|
Other Income |
8.740 |
56.500 |
11.210 |
43.220 |
|
Operating Profit |
1016.410 |
1009.960 |
1413.260 |
1823.910 |
|
Interest |
452.880 |
480.490 |
591.800 |
656.380 |
|
PBDT |
563.530 |
529.460 |
821.460 |
1167.530 |
|
Depreciation |
157.390 |
184.200 |
196.810 |
217.410 |
|
Profit Before Tax |
406.140 |
345.260 |
624.650 |
950.120 |
|
Tax |
125.400 |
112.450 |
201.760 |
307.590 |
|
Profit After Tax |
280.750 |
232.820 |
422.890 |
642.530 |
|
Net Profit |
280.750 |
232.820 |
422.890 |
642.530 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
PAT / Total Income |
(%) |
3.83
|
4.51 |
5.74 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
5.98
|
5.49 |
7.79 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
6.24
|
6.03 |
8.53 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.18
|
0.15 |
0.18 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
2.18
|
1.72 |
1.32 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.93
|
2.33 |
2.83 |
LOCAL AGENCY FURTHER INFORMATION
HISTORY
Subject Company began its journey in the year 1987. Strongly entrenched with proven domain knowledge, experience and credentials, IVRCL operates infrastructure sectors includes Water and Environment, Transportation, Buildings and Power. Since inception, IVRCL has put in place stringent policies to create a safe and healthy environment at the project sites. The company's landmarks in quality consist of ISO: 9001 - 2000 for Quality Management System, ISO: 14001 - 2004 for Environmental Management System and ISO: 18001 - 1999 for Occupational Health and Safety Assessment Series.
The commercial operations of the company were started in the year 1990. In the
same year, IVRCL established itself as a premier EPC and LSTK Service Provider
with front-end engineering capabilities. During the year 1995, with the Initial
Public Offering, IVRCL became a Listed Company and has been maintaining a
consistent dividend payment record. The Company foray into Build-Operate-
Transfer BOT/BOOT/DBOOT projects since 2001. In the year 2003, the contract for
execution of the work of Water Supply Scheme to Achampet was came to the
company. The Company made joint venture with SPCL during the period of 2003-04
for executing the road widening of AP2 package in NH5 of the Prime Minister's
Golden Quadrilateral Project of the National Highways Authority of India (NHAI)
in Andhra Pradesh and also the company has entered into joint venture with M/s.
UAN Raju Construction Company for execution of the Tunnels work for laying BG
line for Konkan Railway in the state of Jammu and Kashmir.
IVRCL awarded contract for the value of 787.900 millions during the year 2004
and bagged a project in
During the year 2006, IVRCL Infrastructures secured the order worth Rs 5578
million from the Irrigation and CAD Department, Government of Andhra Pradesh
for execution of 'Handri Niva Sujala Shravanthi (HNSS) Phase-I project and also
bagged orders worth Rs 3881.600 millions relating to Telugu Ganga Project,
Nandyal Circle. IVRCL is the owner of the National Safety Council of India
Safety Awards - 2006. In December 2007, IVRCL Infrastructure and Projects has
forayed into a share purchase agreement to buy 100% shares of Alkor Petroo,
unlisted oil and gas exploration and Production Company, by the consideration
of Rs 150.000 millions. The Company received BAI Award 2007 - Builders'
Association of India Pune Centre.
During the year 2008, IVRCL bagged irrigation works of the value of Rs 4784.800
millions from Narmada Valley Development Authority, Bhopal for execution of
'Canal system of Indira Sagar Project Phase-III, Sanawad District, Madhya
Pradesh and in May of the same year 2008, bagged Rs.4680.000 millions AP Order
and in June 2008, the company has entered into the Oil and Gas sector services.
The company has bagged a contract worth of Rs 8376.000 millions from ONGC Petro
additions. Subject has been selected as the winner of the 'Golden Peacock Award
for Occupational Health and Safety - 2008' by the award Jury.
IVRCL is dedicated to improving the overall quality of life in the country. It
believes in making a holistic contribution to all sectors including water,
roads, industrial structures, residential complexes, power projects etc. For
IVRCL, quality is the overpowering virtue around which the whole system
functions. Engineering and design capabilities are IVRCL's proven strengths.
Its turnkey projects in various sectors are characterised by pioneering ideas
and impressive execution capabilities.
REVIEW
OF PERFORMANCE
The financial year 2009-10 is a year of moderate growth. The company achieved a gross turnover of Rs.54944.22 million for the year ended 31st March, 2010 as against Rs.49830.92 million for the previous financial year, registering an incremental turnover of Rs.5,113.30 million and recording a growth rate of 10% over the previous year.
The Earnings before Interest, Depreciation, Taxes and Amortisation (EBIDTA) at Rs.5467.77 million are 9.95% of the Gross Turnover for the year as against 9.06% for the previous financial year and this rate of gross profit compares well with those of similar other companies.
FUTURE OUTLOOK
The negative effects of global recessionary conditions are
being attenuated by various countries through huge investments in
infrastructure and
MANAGEMENT DISCUSSION
AND ANALYSIS
Industry Overview
Infrastructure sector remains to be the main focus for the government as it has received 46% of total planned allocation in this year’s budget with a provision of Rs.1735520 Millions for upgrading infrastructure in both rural and urban areas. Major emphasis has been given to development of high quality physical infrastructure such as roads, ports, airports and railways. Allocation of Rs.40 billion towards the development of rural roads is in line with previous budgets with Rs.99.9 billion for planned spending on national highways.
Though allocations for the roads and highways sector have been provided, implementation may be slow due to policy ambiguity at the state and central government levels and delays on account of land acquisition. The refinance facility provided by IIFCL to banks will improve the credit availability for infrastructure projects such as BOT road projects undertaken by the private sector and facilitate in achieving financial closure for projects.
Among the government initiatives, the Jawaharlal Nehru National Urban Renewal Mission (JNNURM) is qualitatively different aiming to scale up planned and integrated development of urban infrastructure and services involving a series of reforms over a seven year program (2006-12), covering 63 mission cities with an envisaged investment of over Rs.1,000 billion.
JNNURM, as a reform driven agenda, has been instrumental in laying foundation with over 70 percent of the projects sanctioned for improving basic urban services like water supply, sewerage, storm water drainage and solid waste management. So far, 297 projects worth Rs.347.61 billion have been sanctioned for these sectors. Another government initiative with objectives similar to the JNNURM is the Urban Infrastructure Development Scheme for Small and Medium Towns (UIDSSMT), launched in 2005 to improve civic services in 5,098 cities / towns (those not covered under the JNNURM). Since its inception, a total of 691 projects worth Rs.123.85 billon in 558 towns have been approved under the UIDSSMT.
Like the JNNURM, water supply projects have been accorded the highest priority under the UIDSSMT as well. A total of 367 water supply projects comprising about 53 percent of the total projects have been approved at a cost of Rs.70.64 billion. While the launch of such novel and progressive schemes as the JNNURM and UIDSSMT provide a platform for developing and sustaining urban infrastructure services, besides opening up opportunities for companies as their for water and environment based projects.
IVRCL – Forging ahead
by unlocking value
On the backdrop of the impetus provided by infrastructure growth thus throwing up immense opportunities for the construction sector, The Company has continued to exhibit its remarkable acumen and success in bagging projects in a cross section sectors taking its order book to Rs.2,33,558 Million combined while sustaining its strong financials track record. While they are consistently making efforts to increase their presence in the core sectors of the infrastructure space, the company has continued its dominating presence in the water and irrigation segments. The execution of projects and translation into revenues has also kept pace. Moreover, their strong customer focused approach and their belief in managing their fundamentals well has kept us ahead.
Aside of being a market leader in Water, IVRCL’ s integrated business in irrigation and its continued presence in transportation, buildings and industrial construction and Power Transmission contracts has ensured the bagging of some of the very large and prestigious projects, besides continuing to get regular orders in other areas as well. Of its total order book as of now, 47% comprises water projects, 31% of roads and highways, 16% of buildings works, and the balance 6% of power and other projects.
The Company’s continued interest and foray into emerging lines of businesses such as oil and gas, hydropower, railways, mining and power generation hold much promise for the Company in the coming years.
WATER
Orders are flowing for water and waste water treatment industry and the Indian water treatment industry is estimated to be about Rs. 20 Billion and growing at 15 to 20 % annually including the Rs.12 Billion industrial water treatment sector and Rs 8 Billion point of consumption market which involves localized water treatment. The water industry size in India is about Rs.60 billion and the industrial water and waste water treatment market size would be around Rs.30 billion and the drinking water purification market would total around Rs.20 billion.. The growth rates in the last 3 years have hovered in the vicinity of 18-20 percent. The global market would be about $ 50 billion. Good Water management is crucial to overcome the water crisis that threatens their country. They must create an infrastructure that ensures sustainable water supply for the country’s agricultural, industrial and domestic use.
To IVRCL, Water continues to be the dominant business vertical which provides every solution for all types of water and sanitation needs. With an enviable track record and proven capabilities and credentials in the industry, IVRCL continues to be uniquely positioned to take harness tremendous opportunities in the water sector. They are capturing the potential in this vertical by investing in constructing, owning and operating water projects across the country. With the ever increasing water demand be it for irrigation, drinking or industrial purposes, several states in India such as, Madhya Pradesh, Uttar Pradesh Karnataka and Rajasthan to name a few, have launched massive irrigation schemes, reservoirs projects, drinking water schemes comprising treatment plants and vast pipeline systems to augment their available water resources effectively. Hence irrigation systems, infrastructure for drinking water and industrial water and recycling of waste water shall continue to remain the long term demand drivers.
Irrigation – IVRCL continues to be the undisputed leader in irrigation projects across the country. IVRCL has in the recent times, bagged some significant projects including the Kosi Canal System in Bihar, besides pursuing potential opportunities emerging in other states as well.
While They are currently executing major irrigation projects in Andhra Pradesh, namely, Telugu Ganga Stage-3, Sripad Sagar Stage-II; Phase-1, Kalwakurthi Lift Irrigation Scheme-Package 28 and Koil Sagar Stages 1 and 2 and the HNSS Phase-1, Pranahitha-Chevella Lift Irrigation Scheme-Package No.20-for drawal / lifting of 25 TMC of water from Foreshore of SRSP Reservoir to Balancing Reservoir and Package No.9 – for drawal and lifting of 6.00 TMC of water in 120 days from Mid Manair to Upper Manair Reservoir, work on the Lift Scheme from Thotapally Reservoir to Gouravelly Reservoir including tunnel and other allied works near Regonda in Karimnagar District, is also currently under progress.
In Madhya Pradesh, the Company has been progressing on schedule on Punasa Lift Irrigation Scheme with a distribution network of pipelines and Lower Goi Project including a dam and canal and its distribution network for command area of about 13760 Ha. on turnkey basis including the O and M of completed commissioned scheme for 1 year. This is in addition to the ongoing works undertaken for Narmada Valley Development Department comprising of execution of 51 km of main canal and over 250 km of distribution network for a command area of over 20700 ha.
The Indira Sagar project is the toughest amongst all other Packages under Indirasagar and nearby Omkareswar Packages, under NVDA. The alignment of this portion of the canal runs in the hilly terrain and valleys. Generally the alignment of the gravity canals follows a specific contour all along the foot of the hill. But in this particular case, the canal runs on the top of the hills, which is a special feature. Further in this canal there are 5 nos of ‘D” shaped tunnels of 6.0 M dia for a length of 5 Kms, 12 nos of Aqueducts having a total length of 2.5 Km and about 83 no. of CM and CD works in the main canal. The Punasa Lift irrigation Project is a comprehensive Project where at the water from the Indirasagar Dam will be lifted in 3 stages into 3 new balancing reservoirs and from there the distribution of the water to the fields will be done by closed conduits of different sizes and types. The Project has been progressing extremely well and the Company has achieved early completion of the Milestone Progress of that approved in the Construction Program and for this feat, IVRCL has been awarded the Incentive for the two consecutive Milestone periods and an appreciation certificate by the client.
The Company has bagged a project of the ERM of the Kosi
Canal System including settling basin from the Water Resources Department,
Their on-going irrigation projects are:
- LIS Link VII - Package No.20 - Investigation, Design and execution of Lift irrigation Scheme for drawl / lifting of 25 TMC of water from Foreshore of SRSP Reservoir to Balancing Reservoir near Masani (V), Nizamabad Mandal and District by water conveyor system with all associated components on EPC Turnkey System.
- FFC
from SRSP-LIS Link III - Package No.9 - Investigation, Design and
execution of Lift irrigation Scheme for drawl and lifting of 6.00 TMC of
water in 120 days from Mid Manair reservoir at
- Execution of Punasa Lift Irrigation Scheme including its distribution network by pipelines down to 40 Ha. Chak of Culturable Command Area (CCA) of about 35008 Ha. On Turnkey basis and O and M of completed commissioned scheme for 1 year.
- Investigation, Design and Execution of Lift Scheme from Thotapally Reservoir to Gouravelly Reservoir including Tunnel and other allied works near Regonda (V), Husnabad (M) of Karimnagar District
- Execution of Lower Goi Project including Dam, Canal and its distribution network upto 40 Hac. Chakfor Irrigation culturable command area of about 13760 Ha. On Turnkey Basisand maintenance of comlete commissioning for one year.
- Investigation, Design, and execution of Kaleswaram LIS with allied works lifting of 4.50 TMC of water from Godavari River near Kanepally (V) of Kaleswaram, Mahadevpur(V), Karimnagar Dist to feen an ayacut of 45,000 acres.
Water Supply and Environment Projects - The competency and capability of IVRCL as a major player in the water infrastructure sector is once again proven with the Company completing some important water projects this year and bagging several more during this year. The Company has successfully completed the Clear Water Sump and Pumping Station for the UWSEI Project for Indore Municipal Corporation and Some of the significant projects completed during the year in the Water Sector include the:
- Design,
Construction, Commissioning, Operation and Maintanance Clear Water Sump
and Pumping Station.for UWSEI Project, Indore Municipal Corporation,
- Construction, Supply and installation of Water distribution system, clear water reservoir and water towers, domestic waste water collection system and pump station, Industrial waste water collection system and pump station and related mechanical and electrical works in Brandix Apparel City Private Limited SEZ Vizag.
- Providing CWSS to Tsunami affected coastal habitations in Kanyakumari District - Project No.36. for TWAD Board, Tamil Nadu
- Sujlam
Suflam package PM -4A (
- Execution and OandM of the work of Village Distribution system with PSP and CWT with associated civil works for village distribution of 78 villages of Bhainsroadgarh and Ramganjmandi tehsil of Ramganjmandi Pachpahar water supply project-Packages I and IV on single responsibility Turnkey Basis with 5 years OandM for PHED,, Kota, Rajasthan IVRCL’ s position as the most versatile player in water infrastructure projects is once proved with the bagging of the one of the most prestigious water projects of the year, namely the Construction of Tunnel from Gundovali to Bhandup Complex in Mumbai for Municipal Corporation of Grater Mumbai, which has not only added a feather in its cap but has taken the company to greater heights in water projects.
- Other major water projects that the Company has bagged during the year are the Hogenakkal Water Supply and Fluorosis Mitigation Project-Package I - for Tamil Nadu Water Supply And Drainage Board, Tamil Nadu which includes Intake Works, Raw Water Pumping Station, Treatment Plant, Treated Water Pumping Station, Booster Pumping Station, Pumping Mains, MADAM Master Balancing Reservoir and Allied Works; Replacement of Two Nos. of 1800 mm dia riveted Tansa Mains from Tansa to Tarali by one No.2750 mm dia M.S all welded Pipeline in the for Municipal Corporation of Grater Mumbai, and the construction of Intake well cum Raw water pump house including coffer dam, substations, raw water pumping equipments, rising mains, WTP at Rukka, clear water pumping equipments at Rukka, Transmission mains to different UGRs and ESRs construction UG reservoirs, distribution networks all complete job for Ranchi Water Supply Project under JNNURM on Turnkey Basis for Drinking Water and Sanitation Department, Jharkhand
Major works bagged by the company and under execution during the year are:
- Construction
of Tunnel from Gundovali to Bhandup Complex in Mumbai for Municipal
Corporation of Grater Mumbai, Mumbai,
- Replacement
of Two Nos. of 1800 mm dia riveted Tansa Mains from Tansa to Tarali by one
No.2750 mm dia M.S all welded Pipeline in the HE outside city division
(Section - II from Jamboli to Chinchavali for Municipal Corporation of
Grater Mumbai, Mumbai,
- Detailed Survey, design and drawing including construction of Intake well cum Raw water pump house including coffer dam, approach gangway and substations at pumping points all complete with supplying, installation and commissioning of raw water pumping equipments, rising mains, WTP at Rukka, clear water pumping equipments at Rukka, Transmission mains to different UGRs and ESRs
- construction UG reservoirs, distribution networks all complete job for Ranchi Water Supply Project under JNNURM on Turnkey Basis for Drinking Water and Sanitation Department, Jarkhand
- Hogenakkal Water Supply and Fluorosis Mitigation Project-Package I-Intake Works, Raw Water Pumping Station, Treatment Plant, Treated Water Pumping Station, Booster Pumping Station, Pumping Mains, MADAM Master Balancing Reservoir and Allied Works for Tamil Nadu Water Supply And Drainage Board, Tamil Nadu
- BWSSB
Project II - Contract W1 Raw Water Transmission System under JICA for
- Surveying, Collection of Hydrological data, Design, Detailed Engineering, Construction, Supply, Installation, commissioning of Multi Villages 15.60 MLD capacity Surface Water Supply Scheme for Arsenic - affected habitations / villages under Simri and Buxar blocks of Buxar District on Turnkey Basis for Public Health Engineering Department, Bihar
- CW and Water System Civil work package from NTPC - Tamilnadu Energy Company Limited Power Project (Vallur Thermal Power Project) (2x500 MW + 1x500MW) for NTPC Tamilnadu Energy Company Limited, Chennai, Tamil Nadu
- CW Pump House CW Ducts (Civil) and Cold Water Channel Package for Harduagunj Power Plant Extension project (2x250 MW) for Uttar Pradesh Rajya Vidyut Utpadan Nigam Limited, Lucknow
- Construction Contract for Nano Spurline
project (12" and 6" = 33 Kms.) for Gujarat State Petronet
Limited, Gandhinagar,
- Installation, Operation and Maintenance of Crude and Finished product Tankages facility at Paradip Refinery Project, Paradip (Orissa) on BOOT Basis for Indian Oil Corporation Limited, New Delhi
Under sewerage treatment projects, the company has won the contract for the Survey, Investigation, Design, Construction, Testing and Commissioning of Sewerage works in Sewerage District of Allahabad City for Uttar Pradesh Jal Nigam, Allahabad Providing Sewerage System to Erstwhile Bommanahalli CMC areas (Zone 4F) under KMRP - Slice No.GBS 4F for Bangalore Water Supply and Sewerage Board, Bangalore, Karnataka and Constuction of the 70 mld capacity sewage treatment plant at Kharghar, Navi Mumbai. Chennai Desalination – The Chennai Sea Water Desalination Project of 100 MLD Capacity, being executed for Chennai Metro and the first of its kind in the country is fast nearing completion and having successfully completed the commercial trials, the plant will be commissioned shortly. IVRCL recognizes the immense potential of desalination as a major water source for the country and is focusing on desalination as a major watter source for the people and industries in the coastal regions of the country.
Industrial Water Projects - As a pure play market leader in
the water EPC space in
TRANSPORTATION
The most outstanding achievement of the Company during the
year in the Transportation sector has been the completion and commissioning of
two of the
Other key projects completed by the Company during the year include the Madurai to Kanyakumari from Km 42.00 to Km 80.00 Contract Packages NS-40 (TN) for NHAI; Rehabilitation and Upgrading of Mungeli to Pondi Section in Chhattisgarh - for Public Works Department and Integrated Improvement cum Performance Based Maintenance on Alwar to Sikandra Road in Rajasthan (AS) for RIDCOR, Government of Rajasthan.
About new highways projects: With the renewed impetus and
determination of the government to speed up the implementation of the NHDP
projects on a fast track basis and key highway projects on the anvil, including
the mega highways projects, 6-laning of 4-laned roads, expressways and port
connectivity projects, IVRCL is strongly focusing on highways as an opportunity
asset creation and bidding for selective highways projects, including some of
the mega highways being notified by NHAI. The Company has bagged three more
DBFOT projects. These are 4 - Laning of Indore - Jhabua - Gujarat / MP Border
section of NH-59 ; 6 - Laning on Chengapalli to start of Coimbatore Bypass and
4 laning on end of Coimbatore Bypass to TN / Kerala Border Section of NH-47 in
the State of Tamil Nadu under NHDP Phase II and 4 - Laning of Baramati-
The Company scores a first once again by being the first
company in the country to undertake the construction of a state of the art
Automotive Test Track for the National Automotive Testing and R and D
Infrastructure Project,
Some of the major works bagged by the company and under execution during the year are:
- Balance
work of Rehabilitation, strengthening and 4 Laning of Bhogpur to Mukerian
section of NH1A from Km.26.00 to Km.70.00 in the State of
- Improvement
/ Upgradation of Darbhanga - Kamtaul - Basaitha -
- Reconstruction of Tsunami affected Bridge connecting Keezhamanakudi - Melamanakudi villages in Kanyakumari District for Highways Department, Chennai, Tamil Nadu.
- Construction of ROB at Bonakal Yard Jaggaihpet - Wyra Road in Khazipet - Vijaywada Section in Khammam District for Roads and Buildings Department, Khammam, Andhra Pradesh
- Construction of pre tippling, empties yard etc. for the Augmentation of Railway infrastructure for Rastriya Ispat Nigam Limited (RINL), Visakhapatnam Steel Plant, Visakhaptnam, Andhra Pradesh
- Construction of Bridge across Malaprabha River near Munavalli on Arabhavi - Challikeri Road in Saudatti Taluk in Belgaum District for Karnataka Road Development Corporation Limited, Bangalore, Karnataka BOT Highway Projects
- 4
Laning of
- 6 Laning from Km.102.035 to Km.144.740 on Chengapalli to start of Coimbatore Bypass and 4 laning from Km.170.940 to Km.183.060 on end of Coimbatore Bypass to TN / Kerala Border Section of NH-47 in the State of Tamilnadu under NHDP Phase II on DBFOT (Toll) Basis (Package No.NS-II / BOT / TN-08) for National Highways Authority of India, New Delhi
- Four
Laning of Baramati - Phaltan Road SH10 (Ch.42/400 to 64/300) and Phaltan -
Lonand Shirwal Road SH70 (Ch.136/00 to 80/00) (total length=77.900 Kms.)
on DBFOT Basis for National Highways Authority of India,
- Development
of Truck Terminal at Patalganga MIDC Industrial Estate (Maharashtra) on
DBFOT Basis for Maharashtra Industrial Development Corporation, Mumbai,
BUILDINGS AND
INDUSTRIAL STRUCTURES
The Company has, during the year successfully completed several diverse projects such as the EPC Contract for TATA Cummins Limited Plant at Phaltan, District Satara in Maharashtra, EURO-IV Project of Chennai Petroleum Corporation Limited at Chennai, Tamil Nadu for Engineers India Limited and for a Blast Furnace – 2 area for Integrated Steel Plant for Ramsarup Lohh Udyog Limited, Kolkata, besides undertaking works for Guru Gobind Singh Refinery Project of M/s. HPCL - Mittal Energy Limited at Bathinda in Punjab; civil, structural and associated UG Piping works of MS Quality Up-gradation project at Guwahati Refinery in Assam And Construction of TELCON Factory at Kharagpur, West Bengal for Telco Construction Equipment Company Limited consisting of various factory Sheds like Excavator Assembly, Dumper assembly, Paint house etc.
Major works completed by the Company during the year are:
- Construction
of Seawoods Estate Phase-II, Part-II Housing in Sectors 54, 56 and 58
(Part) at Nerul, Navi Mumbai for CIDCO, Mumbai,
- EPC
Contract for TATA Cummins Limited (TCL) Plant at Phaltan, District Satara
(Maharashtra) for TATA Cummins Limited,
- Construction
of type II and I Quarters, RPF Barrack,
- Construction
of
- Building
works for implementation of EURO-IV Project of Chennai Petroleum
Corporation Limited at Chennai, Tamilnadu for Engineers India Limited,
- Construction
of Civil work for Blast Furnace - 2 area for Integrated Steel Plant at
Karagpur for Ramsarup Lohh Udyog Limited, Kolkata,
Continuing its foray in industrial works, the Company has achieved
a remarkable feat in successfully bagging several contarcts in the industrial
sector ranging from Design and Construction for all Main Civil Works for
complete External Coal Handling System and Complete Structural works for
Coastal Gujarat Power Limited, in Mundra and Complete Civil and Structural
works for Coal Handling Plant package for Rihand Super Thermal Power Project,
Stage-III (2x500 MW) at NTPC-Rihand to Civil and Structural works of ECU Unit
for Brahmaputra Petrochemical Complex of M/s. Brahmaputra Cracker and Polymer
Limited at Lepetkata, Assam (Part-A) for Brahmaputra Cracker and Polymer
Limited, Dibrugarh, Assam. and the Makeup Water System Package for 1980 MW
Tiroda Thermal Power Project, Tiroda, dist. Gondia, Maharashtra for Adani Power
Maharashtra Limited, Gondia,
Among the major residential, institutional and technical building projects awarded to the copmapny and currently under execution are Construction of 5 Building Towers with Parking Plus Twenty One Floors in Kakade City, Karve Nagar, Pune Extension of Bihar Vidhan Sabha and Secretariat Complex at Patna for Building Construction Department, Patna, Bihar Refinery Township Phase-II and III for Paradip Refinery Project near Paradip, Orissa for Indian Oil Corporation Limited, Shatabdi Hospital Building (Phase -2), C.J.S.M. Medical University Campus Lucknow for Uttar Pradesh Rajkiya Nirman Nigam Limited, Lucknow Undergraduate Lecture Theatre Complex at FCI campus University of Allahabad, Allahabad for RITES Limited IMGEOS Project Buildings and development of infrastructure at NSRC Campus, Shadnagar, Mahboobnagar Dist., AP. Computer Centre and Computer Science and Engineering Complex including Internal PH Works and PVC Conduit System for Electrical works for IIT Bombay, Powai, Mumbai for Dept. of Atomic Energy Construction of Hepatobilory Disease and Lever Transplant Building at SGPGL, Lucknow for Uttar Pradesh Rajkiya Nirman Nigam Limited, Lucknow.
The major buildings and industrial project works won by the Company during the year are:
- Design and Construction for all Main Civil Works for complete External Coal Handling System and Complete Structural works including Design, Fabrication, Erection and Construction for Mundra, Gujarat for Coastal Gujarat Power Limited, Mumbai,
- Extension
of Bihar Vidhan Sabha and Secretariat Complex at
- Complete Civil and Structural works for Coal Handling Plant package for Rihand Super Thermal Power Project, Stage-III (2x500 MW) at NTPC-Rihand for FLSmidth Private Limited, Chennai
- Civil works for +/- 500 KV, 2500 MW HVDC Terminal Stations at Mundra and Mohinderbagh for Adani Power Limited, Mumbai
- Construction of Quarters, Estate Office and Hospital of Refinery Township Phase-II and III for Paradip Refinery Project near Paradip, Orissa for Indian Oil Corporation Limited, New Delhi
- Construction of All India Institute of Ayurveda (under Department of Ayush, Ministry of Health and Family Welfare) at Sarita Vihar, New Delhi for HSCC (India) Limited, New Delhi
- Civil
and Structural works of ECU Unit for Brahmaputra Petrochemical Complex of
M/s. Brahmaputra Cracker and Polymer Limited at
- Construction
of Civil, Miscellaneous Structural and Architectural works of Make-up
Water Pump House and other Associated structures required for Make-up
Water System Package for 1980 MW Tiroda Thermal Power Project, Tiroda,
dist. Gondia, Maharashtra for Adani Power Maharashtra Limited, Gondia,
- Construction of IMGEOS Project Buildings and development of infrastructure at NSRC Campus, Shadnagar, Mahboobnagar Dist., AP., Package -1: Construction IMGEOS and NDEM Building (Composite Contract inclusive of Civil, PH, Electrical, HVAC and other allied works) for National Remote Sensing Centre, Hyderabad, Andhra Pradesh
- Construction of Computer Centre and Computer Science and Engineering Complex including Internal PH Works and PVC Conduit System for Electrical works for IIT Bombay, Powai, Mumbai for Dept. of Atomic Energy
- Construction of Civil and Structural works at UCIL Project-Tummalapalle for Hindustan DORR-Oliver Limited, Mumbai
- Expansion of Factory Building (PEB), Civil, Plumbing, Electrical, HVAC, Fire Fighting, Telecommunication and Land Scape for Parker Hannifin India Private Limited at Mahape, Navi Mumbai for Parker Hannifin India Private Limited, Mumbai
–Under infrastructure development projects the Company is successfully
progressing with ONGC Petro Additions
Limited (OPAL)- Petrochemical Complex in Dahej SEZ in Gujarat comprising
infrastructure development of an integrated green field petrochemical complex
over an area of 508 hectares involving borrowed earth filling of around 2.0 m
and infrastructure development 532 ha of land including water and sewage
treatment facilities, storm water drainage and flood protection system of 37
km; water supply and sewer network, rain water harvesting system, boundary wall
and fencing of 11 km, internal road network of 50 km, administrative office
building and a world class guest house facility etc spread over an area of
10000 sq m. The removal of existing earth is 3.72 million cum and filling
quantity is 8.65 million cum. IVRCL has achieved the distinction of having
clocked over 5 million accident – free man hours and has been rewarded by ONGC
for this remarkable feat.
Power Transmission
Against this backdrop of a vast opportunity in the field of power transmission and distribution, IVRCL shall continue to focus and strengthen its presence in the power transmission sector particularly in cross country transmission lines, substations, distribution systems and railway traction works and IVRCL will continue to pursue opportunities in these segments. The Company has completed Constructing and erecting on Turnkey basis 132 KV. Chikali-Dusarbid Line to proposed 132 KV Sub Station 33 KV Single Circuit Line for Khadakpurna Project Division.
- While work on the 765 KV Single Circuit Transmission Line; which is part of 765 KV Seoni-Wardha Transmission Line associated with Western Region System Strengthening Scheme is briskly progressing, as the highest capacity transmission line work undertaken by the Power Division, the completion of this work will qualify the Division to take up all types of transmission line projects including those of 1200KV capacity and the Triple and Quadruple conductor configured lines in future. Some of the major orders bagged by the Company during the year are:
- Detailed Engineering, Manufacturing, Supply, Supervision, Erection, Testing, Commissioning and Putting into Commercial use of Pump - Turbine, Generator - Motor and Associated Equipments for Koyna Left Bank Power Station (2x40 MW) for Water Resources Department, Mumbai
- Supply and Services Contract for Tower Package-A3 under Transmission System Associated with Pallatana GBPP and Bongaigaon TPS in North Eastern Region for i) 400 KV D/C Silchar-Melhrihat (New) Transmission line and 132 KV D/C Melhrihat (new) - Melhrihat (Mizoram) Interconnecting Transmission Line, including River crossing Towers for PGCIL for Power Grid Corporation of India Limited, Gurgaon, Haryana.
- Supply and Services Contract for Tower Package - A1 for i) 400 KV D/C Quad Line from Gurgaon (PG Sec 71) - Manesar (18 Kms.) ii) Delinking of Agra - Samaypur and Samaypur - Gurgaon 400 KV Line from Samaypur (1.5 Kms) and making a direct link from Agra to Gurgaon associated with Northern Region Strengthening Sscheme (NRSS) - XIII, iii) 400 KV D/C Maneswar - Neemrana- Bhiwadi (150 Kms.) Transmission Line associated with NRSS-XV and iv) LILO of 400 KV S/C Bhiwadi - Bassi at Kotputli (15 Kms) associated with NRSS – XV for Power Grid Corporation of India Limited, Gurgaon, Haryana.
- Shifting / Modification of 400 KV D/C Agra - Agra (UPPTCL), 220 KV D/C Agra - Auraiya and 400 KV S/C Kanpur - Ballabhgarh Transmission Lines Package (Deposit work) for Power Grid Corporation of India Limited, New Delhi
The state-of-the-art
strategic backward integration measure, is under production and has commenced exports as well besides
expanding its portfolio with diversification into related products.
Overseas Operations
Having firmly established in the core sectors with a healthy
order book in the Indian market, The Company, IVRCL has ventured into overseas
to explore and tap the infrastructure construction potential with prime focus
on the
The Company is also looking at the emerging opportunities in
the African countries as well and initially targeting to take up some Water and
Power Transmission projects in countries like
RESTRUCTURING OF
OPERATIONS:
The challenges thrown out by the complex environment ridden with near-recessionary economic conditions and downturn in the real-estate sector, coupled with great opportunities in new infrastructure projects, have made the management to stop, look ahead and proceed with reorganization of its operations at the group level. The policies of the Government are encouraging Public Private Participation for construction of various infrastructure projects which presumes mopping up of huge resources by private sector for actively participating in the Nation building activities. While IVRCL has all along been improving its net worth through internal accruals and fresh infusion of equity to qualify itself for bidding for new and bigger projects and has invested about Rs 8500 Millions of such resources raised during the previous five years, either by way of debt or equity in these new projects, it is considered all the more necessary that these long-gestation projects should not impact the financials of the flagship Company and hamper the growth process recorded over the last decade. The options available were evaluated and it was considered necessary that the group should slowly and steadily come out of the real estate sector without having any adverse impact on the ongoing projects; utilize the latent valuations of the land holdings to improve liquidity either by sale or otherwise to raise further monies for investment into infrastructure projects being declared open by the Government in various sectors including railways, oil and gas, mining, ports etc., and to ensure that the core competence of the flag-ship IVRCL is further strengthened to effectively manage the construction of these new projects. All said and done, the financial viability of the long-gestation BOT infrastructure projects is a challenging task before the Government as well as the individual participating Companies requiring huge capital and innovative financial models. From this point of view, IVRCL’s management has evaluated the various risks and with the approval of all stake holders, identified that investments in these projects should be managed independent of the project execution capabilities of the Company so that while executing these investment oriented projects, the group can attract talent from outside either by way of joint-ventures or otherwise.
As a first step, IVRCL’s investments in various BOT and BOOT projects through two of its wholly owned subsidiaries viz., IVRCL Strategic Resoursces Limited, and IVRCL Water Infrastructures Limited, have been amalgamated with IVR Prime Urban Developers Limited (whose name has been subsequently changed to IVRCL Assets and Holdings Limited so as to reflect the new orientation given to its operations) in consideration of the shareholdings in the said Company. The details of the amalgamations have else-where been detailed in the analysis of accounts in this report. In this process, IVRCL shall continue to be a project-executing entity while IVRCLA and H shall concentrate on raising monies for the new projects and effective investment thereof evaluating the long term risks and addressing the same from time to time effectively to the best advantage of all stakeholders. As a result of the reorganization, the networth of IVRCL Assets and Holdings Limited, has gone up to about Rs.23000 Millions in which IVRCL holds more than 80% equity-an increase from 62% before reorganization. It is expected that the positive results of the reorganization will be more visible during the course of next few years.
New Sectors - Leveraging Core Competencies in Emerging Sectors Infrastructure development across specific sectors such as sea water desalination, power generation, hydropower, oil and gas, ports, mining, railways freight corridors and industrial infrastructure construction are some of the key sectors poised for a big leap forward and contribute over 60 per cent of the revenues of the construction business in the coming years. Having firmly established in the major infrastructure sectors, namely water, roads, buildings and power, The Company is briskly foraying into these emerging sectors by leveraging its core competencies as a value addition to its existing business areas.
A brief overview of
IVRCL’ s entry into these sectors is given below:
Railways
The Indian Railways is one of the largest railway systems in
the world under a single management and manages more than 63,000 km of railway
tracks. The Government of India has decided to invest about $5 billion to
enhance the rail routes in
The massive investments for the proposed Railway works including the proposed Dedicated Freight Corridor comprising 2762 km of new railway lines along the western and eastern corridors being envisaged by the Indian Railways and RVNL projects in the pipeline provide a tremendous opportunity for The Company to participate in these works either on its own or by a joint venture route and thereby enhance its credentials in the railways sector. Having bagged and executing some orders for the prestigious Bangalore Metro work, the Company is also focusing on the other upcoming metro rail projects comprising elevated viaducts and stations and underground tunnels as well in major cities apart from focusing on the port connectivity and high speed railway projects being proposed across the country as highly potential projects in the railways in the coming years.
Hydro Power
The hydel - thermal power mix in
Ports
With 12 major ports and 187 minor ports, 7,517 km long
Indian coastline plays a pivotal role in the maritime transport helping in the
international trade. Traffic handled at major ports during April 2008 to January
2009 is recorded to be 436686 units. The ports in
Power Generation
Mining
Oil and Gas
The deregulation of the oil and gas sector has opened up new
investments across the upstream and downstream segments. While exploration and
production activity is on the rise, transport infrastructure and storage
facilities for oil and gas are a must to meet energy needs of our economy.
IVRCL through its subsidiary, IVRCL A and H has taken a 37.5 per cent stake in the concession project for development of crude/product tankages facilities at Paradip Refinery Project, Paradip, Orissa of Indian Oil Corporation Limited (IOC) on Build, Own, Operate and Transfer (BOOT) basis and will be the joint venture partner in the special purpose vehicle, IOT Utkal Energy Services Limited, which has been set up for the implementation of this project. The remaining 62.5 per cent share holding is held by Indian Oil Tanking Limited. The project involves Installation, Operation and Maintenance of approx. 1.4 million kilolitres of tankages for crude oil, petroleum products. LPG and sulphur and associated facilities at Paradip Refinery Project in Orissa which is expected to go on stream during 2012. The concession period will be 15 years after commissioning. The total project cost is estimated at around Rs. 30000 Millions. EPC services will be provided by IOT and IVRCL, while Operations and Maintenance will be undertaken by IOT. The Company would be targeting similar ventures as well as EPC contracts in underground storage projects, utilities and off-sites, terminals and large pipeline works.
Strategic Alliances
to Strengthen Pre Qualifications
IVRCL has entered into Joint Venture Agreements and project specific consortium agreements and MOUs for strategic alliances with several reputed Indian and foreign partners with proven track record and credentials of technical expertise to enable it to pre-qualify and to keep it in a vantage point as a Lump Sum Turn Key (LSTK) Infrastructure Development Company and to add value to Their Front End Engineering and Design (FEED) capabilities in the new and emerging infrastructure sectors.
Joint Ventures
Cadagua, S.A,
Advance Water Solutions
Sea Water Desalination
Dragados Group,
Transmission Lines For Power Grid
Jsc Puprpetruboprovodstroy (Ptps),
Oil And Gas Pipelines
Isolux Corsan Group,
Roads And Highways
China Railway Shisiju Group,
Railwaya , Road ,Bridges, Tunnels, Metro Rail Projects.
Group
Airports
Hot-In-Place Recycling System
UNAUDITED
FINANCIAL RESULTS FOR THE QUARTER AND NINE MONTHS ENDED 31ST
DECEMBER 2010
|
Sr. No. |
Particulars |
31.12.2010 (Unaudited) |
31.12.2010 (Unaudited) |
|
|
|
Quarter Ended |
Nine Months
Ended |
|
1. |
Net Sales/Income from Operations |
|
|
|
a. |
Gross Sales |
14111.964 |
35686.109 |
|
|
Less : Excise Duty |
7.910 |
28.206 |
|
|
Net Sales |
14104.054 |
35657.903 |
|
b. |
Other Operating Income |
83.855 |
334.499 |
|
2 |
Expenditure |
|
|
|
i |
Construction
Store, Spares and Materials Consumed |
5325.172 |
13067.854 |
|
ii |
Sub-Contracting Expenditure |
1893.519 |
5479.061 |
|
iii |
Masonry, Labour
and Other Construction Expenses |
4550.619 |
11146.632 |
|
iv |
Employee Cost |
603.676 |
1888.270 |
|
v |
Depreciation |
198.807 |
540.396 |
|
vi |
Other Expenditure |
410.874 |
1045.413 |
|
vii |
Total Expenditure |
12982.667 |
33167.626 |
|
3 |
Profit from Operations before Other Income and
Interest |
1205.242 |
2824.776 |
|
4 |
Other Income |
11.213 |
76.451 |
|
5 |
Profit Before Interest |
1216.455 |
2901.227 |
|
6 |
Interest |
591.803 |
1525.169 |
|
7 |
Profit before Tax |
624.652 |
1376.058 |
|
8 |
Tax Expenses
(including current tax, deferred taxation, fringe benefit tax and prior
period adjustments for the period) |
201.761 |
439.604 |
|
9 |
Net Profit for the period |
422.891 |
936.454 |
|
10 |
Paid- up
Equity Share Capital (Face value
of the share – Rs. 10) |
534.020 |
534.020 |
|
11 |
Reserves
excluding revaluation reserves (as per last audited balance sheet) |
---- |
---- |
|
12 |
Basic and diluted
Earnings per share for the period, for the year to date (not annualized) and
for the previous year – Rs. |
1.58 |
3.51 |
|
13 |
Public
shareholding |
|
|
|
a) |
Number of
Shares |
241592674 |
241592674 |
|
b) |
Percentage of Shareholding |
90.48% |
90.48% |
|
14. |
Promoters and
promoter group shareholding |
|
|
|
|
Non -
encumbered Number of
Shares Percentage of
Shares (as a % of
the total shareholding of promoter and promoter
group) Percentage of
Shares (as a % of
the total share capital of the company) |
25417184 100% 9.52% |
25417184 100% 9.52% |
Notes:
1.
The Company is engaged in the business segment,
namely 'Engineering and Construction' only. No separate geographical segment disclosure
is considered necessary as the Company is engaged primarily in the business
within India where uniform business conditions of significant nature prevail.
2.
There were no pending Investor complaints as on October
1, 2010. During the quarter ended December 31, 2010. 15 complaints were
received and resolved. No complaints are pending as at December 31, 2010.
3.
The unaudited results for the nine months ended
December 31, 2010 includes credits aggregating to Rs. 400.258 millions relating
to earlier years, accounted during the first quarter ended June 30,2010.
4.
At the Extra Ordinary General Meeting of the
company held on March 8,2010 the members of the company approved for issue of
bonus shares o f t 2 each fully paid to the holders of the existing shares of
the company in the proportion of the equity share of? 2 each for every one
equity share on record date. Earning per share for the Nine months ended and
Quarter ended December 2009 has been adjusted as a result of bonus issue.
5.
The above Unaudited Financial Results have been
subjected to limited review by the Statutory Auditors in terms of clause 41 of
listing agreement and were reviewed by the Audit Committee and approved by the
Board of Directors at their respective meetings held on February 12. 2011.
6.
During the quarter, Foreign Currency Convertible
Bonds of USD 7.60 million (Rs. 341.620 millions) were redeemed, which together
with applicable premium aggregated in an outflow of Rs. 487.837 millions.
7.
During the quarter, the Company has purchased
equity shares of Alkor Petrw Limited and IVRCL Building Products Limited from
its subsidiary, IVRCL Assets and Holdings Limited. As a result of which the
above said Companies have become direct subsidiaries of the Company.
8.
Figures have been regrouped wherever necessary to
facilitate comparison.
NEWS
PRESS RELEASE:
IVRCL BAGS ORDERS VALUED T 893.66 MILLIONS
IVRCL Limited (IVRCL)
is glad to announce that the Water, Buildings, Power and Transportation
Divisions of the company have bagged orders of the value of Rs. 8936.600 millions as detailed
hereunder:
WATER DIVISION – Rs. 2947.400
millions
"Design,
engineering, manufacture, supply, transportation to site, storage, erection, testing
and commissioning and operation and maintenance for ten years for all the
equipment including all mechanical, civil, electrical works under Phase-I for
pumping station-1 (PS-1) at Chainage 100.970 kms. for Kachchh Branch
canal-awarded by Sardar Sarovar Narmada Nigam Limited, Gujarat.
"Providing
Water supply scheme to the proposed MRF Limited. Plant at Naranamangalam in
Perambalur District, TN - Construction of Infiltration well, Collection Sump,
intermediate sump, pump room, laying jointing of pumping main and feeder mains
supply delivery and erection of pumpsets including maintenance for the period
of one year at free of cost", awarded by TAMILNADU WATER SUPPLY and
DRAINAGE BOARD.
"Tabreed
District Cooling Scheme Dubai Metro Green Line DM08 Zone1A Al Qusais-I,
DM12 Zone1A Oud Metha and DM1 3 Zone4B
Health Care City Distribution Piping Network" awarded by Tabreed-
National Central Cooling Company (P J S C).
"Complete
design, engineering, manufacture, supply, packing, dispatch, transportation to
project site including all loading 1 unloading,
insurance receipt, storage and preservation of equipment and piping at site,
handling, erection, testing, commissioning, successful completion of trial
operation, and performance tests, co-ordination and management of complete
intake water system for 2 X 2701300 MW Thermal Power Project at Haldia
including necessary insurance" awarded by HALDIA ENERGY LIMITED, Kolkata.
"CW Duct
Replacement Package for Singrauli Super Thermal Power Station Stage-l
(5x200 MW)" awarded by NTPC Limited.
BUILDINGS DIVISION - T 5174.600 Millions
"Construction
of New Civil hospital Building at General Hospital Campus Valsad Dist.
Valsad" awarded by Commissionerate of Health, Project Implementation Unit,
Gandhinagar, Government of Gujarat.
"Lift Pump
House Civil Works Package for Farakka Super Thermal Power Station" awarded
by NTPC Limited.
"Civil works
for proposed NeST Electronics City" at Cochin awarded by NeST
REALTIES INDIA (P) LIMITED.
"Construction
of High Rise (B+G+12) buildings (Tarang) at Shristinagar, Asansol" awarded
by BENGAL SHRlSTl INFRASTRUCTURE DEVELOPMENT LIMITED.
Construction of Shri. Vile Parle Kelavani Madal’s Narsee Maonjee Institute
of Management Studies (Deemed-to-be-University) Off-Campus Centre located at Plot
N0.B-4,lndhra Studies (Deemed-to-be-University) Off-Campus Centre loiated
at Plot N0.B-4,lndhra Pradesh Industrial Infrastructure Corporation Limited.
(APIIC), Shamshabad Zone, GIP Jadcherla on Jadcherla Express Highway, Hyderabad"
awarded by SHRl VILE PARLE
KELAVANI MANDAL,
Mumbai
"Civil and
Structural Works" and "Construction of Buildings (for Plant 1
Non-Plant) at GAIL Project, Vijapur" awarded by Hindustan
Dorr-Oliver Limited, Mumbai
"Construction
of Residential Housing Complex at Bidhannagar, Durgapur" awarded by
Krishnabhakta Griha Nirman Private Limited, Kolkata
"Construction
of Marketing Development cum Business Park (MDBP) including lifts and ancillary
works at NSlC Complex, Okhla, New Delhi" awarded by RITES Limited, Gurgaon
POWER DIVISION – Rs. 441.800 millions
"Stub
setting, Fabrication, Supply, Tower erection, Line stringing, Completion,
Commissioning and Handing over of 110 KV LlLO Lines for Karamadai 230 KV sub
station including cost of materials" awarded by Tamil Nadu
Transmission Corporation Limited.
"Fabrication,
Engineering, Supply, Erection, testing and Commissioning 23011 10 KV SS at Karamadai,
Belllapalayam Coimbatore under turnkey" awarded by Tamil Nadu
Transmission Corporation Limited.
"Fabrication,
Engineering and Supply, Erection, testing and Commissioning 23011 10 KV SS at Ulunderpet
at Villupuram EDC under turnkey" awarded by Tamil Nadu Transmission
Corporation Limited.
TRANSPORTATION DIVISION – Rs. 372.800 millions
"Widening to
2-lane and improvement from Km. 01000 to Km. 291500 of Chitrakonda-Janvai-
Papermetla Road (MDR-105) in Malkangiri District under LWE Scheme" awarded
by Chief Engineer (DPI and Roads), Orissa
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
1] INFORMATION ON
DESIGNATED PARTY
No records exist designating subject or any of its beneficial owners,
controlling shareholders or senior officers as terrorist or terrorist
organization or whom notice had been received that all financial transactions
involving their assets have been blocked or convicted, found guilty or against
whom a judgement or order had been entered in a proceedings for violating
money-laundering, anti-corruption or bribery or international economic or
anti-terrorism sanction laws or whose assets were seized, blocked, frozen or
ordered forfeited for violation of money laundering or international
anti-terrorism laws.
2] Court Declaration :
No records exist to suggest that subject is
or was the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper payments
to government officials for engaging in prohibited transactions or with
designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction
registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l
Anti-Money Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No
available information exist that suggest that subject or any of its principals
have been formally charged or convicted by a competent governmental authority
for any financial crime or under any formal investigation by a competent
government authority for any violation of anti-corruption laws or international
anti-money laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government
official.
9] Compensation Package :
Our market survey
revealed that the amount of compensation sought by the subject is fair and
reasonable and comparable to compensation paid to others for similar services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on
Corporate Governance to identify management and governance. These factors often
have been predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws,
regulations or policies that prohibit, restrict or otherwise affect the terms
and conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.44.12 |
|
|
1 |
Rs.72.05 |
|
Euro |
1 |
Rs.63.33 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
8 |
|
PAID-UP CAPITAL |
1~10 |
7 |
|
OPERATING SCALE |
1~10 |
7 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
7 |
|
--PROFITABILIRY |
1~10 |
7 |
|
--LIQUIDITY |
1~10 |
7 |
|
--LEVERAGE |
1~10 |
6 |
|
--RESERVES |
1~10 |
7 |
|
--CREDIT LINES |
1~10 |
6 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
NO |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
62 |
This score serves as a reference to assess SC’s credit risk
and to set the amount of credit to be extended. It is calculated from a
composite of weighted scores obtained from each of the major sections of this
report. The assessed factors and their relative weights (as indicated through
%) are as follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend
(10%) Operational
size (10%)
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit transaction.
It has above average (strong) capability for payment of interest and
principal sums |
Large |
|
56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively below
average. |
Small |
|
11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with
full security |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
- |
NB |
New Business |
- |
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.