Infrastructure Development Since 1981
Infrastructure Development Since 1981
Dear Stakeholders,
Reflecting on the financials, I feel proud of our company's performance in FY24. With this positive momentum, we are accelerating reforms and making strides to ensure FY25 is even more successful.
Infrastructure plays a pivotal role in accelerating India’s overall development and will be the major driving factor towards the goal of becoming a $5 Trillion Economy by 2025. This is further strengthened by the government's allocation of ₹11.11 trillion towards infrastructure development across the country. The outlook for Indian infrastructure remains highly promising.
India has become a water-stressed country, creating robust infrastructure needed for water security is now essential. In the past 5 years the Government of India has instituted various initiatives focused towards water distribution and wastewater treatment. Some flagship programs include Jal Jeevan Mission, AMRUT 2.0 and Namami Gange along with other schemes such as Pradhan Mantri Krishi Sinchayee Yojana- Har Khet ko Pani, Dam Rehabilitation and Improvement Project (DRIP) Phase 2 & 3, National River Linking Project, National Watershed Project, Atal Bhujal Yojana and National Hydrology Programme. All these schemes put together have an estimated outflow of approximately 10 trillion rupees.
As we commemorate 43 years of excellence in the business, SPML Infra takes immense pride in its position as a leading water management company with primary focus on developing crucial water infrastructure. Our stringent pre-qualification criteria and sophisticated project selection methodologies ensure our active participation in government-led water infrastructure initiatives. Leveraging our strengths, extensive capabilities, and deep-rooted expertise, we strive to maintain our competitive edge in this vital sector.
Over the years, we have successfully completed nearly 700 turnkey projects across India, providing essential drinking water facilities to over 50 million people. This achievement underscores our firm belief in India's potential to bridge the gap between water demand and supply, contributing significantly to the nation's water security. Our proven expertise, coupled with our strategic focus on the water sector, positions us well to capitalize on the immense opportunities that lie ahead in India's water infrastructure landscape.
Despite encountering hurdles in recent years, SPML's strategic approach and unwavering resolve have paved the way for a transformative resolution. The financial strain experienced by the company can be attributed to a confluence of factors including delays in receiving arbitration awards, challenges in realizing payments from government customers, and constraints imposed by banks such as non-release of sanctioned limits and failure to sanction agreed new limits. Additionally, increased charges and interest exacerbated the company's financial predicament.
As the company embarks on its path to financial recovery, it remains resolute in commitment to sustainable development and growth. With a clear roadmap and focus on leveraging available resources for new business ventures, the company is poised to emerge stronger and more resilient than ever before.
SPML Infra’s debt exposure was assigned to the National Asset Reconstruction Company Ltd. (NARCL) in August 2023. The subsequent sanctioning of the resolution plan in March 2024 marked a pivotal moment in company's journey towards financial revival.
Under the sanctioned resolution plan, the company is committed to repaying a total sustainable debt of Rs. 967 Cr. over a period of 10 years, with an early repayment option of Rs. 700 Cr. within the next 8 years. Notably, the plan stipulates no interest payments, with minimal cash-flow considerations allocated towards repayment to safeguard the company's financial stability and facilitate investments in new business ventures.
In FY24, we achieved a substantial revenue increase of 50%, reaching Rs.1,318 crore, up from Rs.878 crore in FY23. Our EBITDA showed impressive growth as well, rising by 44% to Rs.80 crore in FY24 from Rs.55 crore in the previous year. Notably, our PAT saw a significant improvement, increasing by 900% to Rs.20 crore compared to Rs.2 crore in FY23.
This revenue boost is expected to continue due to several factors: abundant business opportunities, our enhanced prequalification status to undertake these projects, improved liquidity position, and robust long-term relationships with both Central and State water authorities.
As we look towards the future, our commitment to innovation, cutting-edge technology, corporate governance, human resource management and stringent safety standards remains unwavering. These core principles enable us to execute projects with efficiency and timelines.
India is going to achieve 100 years of independence with an idea of a “Viksit Bharat”, our vision is India becoming a technologically advanced, water-reliant nation where innovation is the cornerstone of progress. We firmly believe that the continued emphasis on water infrastructure development will be a crucial catalyst in realizing the dream of an Atmanirbhar Bharat.
We are also deeply committed to skill development and capacity building within our organization and the broader industry. By nurturing talent and fostering a culture of continuous learning, we are contributing to the creation of a highly skilled workforce that will be critical for India's future growth.
To all stakeholders - our clients, partners, suppliers, bankers and all associated with us, your trust and collaboration have been instrumental in our journey. We value the relationships we have built and look forward to strengthening them further as we move ahead.
The future is bright, and together, we will build a prosperous and strong India.
Thank you,
Subhash Sethi
Chairman