Over the last three years, the infrastructure sector is passing through a very unstable phase due to bad phase of economy where problems from all aspects have multiplied. and your Company was no exception.
Banks were very conservative while extending financing facilities. For companies already in corporate debt restructuring, a turnaround in this situation is extremely challenging and calls for an urgent re-look of the relevant rules relating to CDR in the interest of stakeholders.
Project progress remains tardy. Major projects are stalled due to liquidity problems. This has shaken confidence of industry players.
Year under review
The Turnover of the Company on a Standalone basis stood at ₹1013.43 crore as compared to the Turnover of ₹1282.53 crore for the previous year. The annualized percentage decrease in the Turnover over the previous year's Turnover amounted to 20.98%. The Company posted a Net Loss of ₹189.95 crore for the year under review as against a Net Loss of ₹77.05 crore for the previous year. The increase in the losses was mainly attributable to lower turnover.
The Company has been striving hard and taking all efforts in ensuring repayment of interest due to CDR lenders. To overcome the challenging business environment, the Company has proactively undertaken the steps to realisation of claims, cost optimisation, monetization of assets and carefully bidding for new jobs apart from focussing on streamlining the internal organization and processes with emphasis on leveraging the Company's existing core competencies.
The order book of the Company as on June 30, 2015 is ₹2456 crore.
The sentiment is positive because the Government appears sincere in its attempts to get things moving. Policy initiative in the recent past will act as stepping stones to the revival of the highway sector. However, the immediate revival of infrastructure sector would require increased public spending and structural and policy changes.
The budgetary allocation to the road sector for FY16 has also been increased by an amazing 125 per cent though channelizing these funds in the right direction at the right time coupled with timely implementation of the reforms will be key to the renewal of the sector.
While recovery of the highway sector is certainly on the cards, the pace of recovery is dependent upon timely execution of policy measures and an economic milieu to help to meet immediate funding requirements of the sector.