Despite less than conducive operating environment the company continued to register revenue growth. Consolidated operational income for FY12 stood higher by 12% to Rs 1861.8 crore but the EBITDA was lower by 19% to Rs 145.5 crore and PBT befor EO was lower by 64% to Rs 27.8 crore. The EO income for the period was nil compared to Rs 20.4 crore in corresponding previous period. Thus on inflated base the PAT was lower by 82% to Rs 12.9 crore despite lower taxation which was down by 47% to Rs 14.9 crore. Eventually the net profit (after MI) was lower by 44% to Rs 41.5 crore after higher share of profit from associates (up 703% to Rs 28.7 crore). Adjusted net profit (for exception income in FY11) was lower by 22% to Rs 42 crore.

Inflationary trends and cost pressures have compressed operating margins while increased debt and firmer interest rates have impacted profitability. Timing also a factor as costs on certain projects have been booked in Q4 while revenue booking to follow.

Consolidated gross debt as end of March 2012 stood at Rs 2009.47 crore compared to Rs 1320.68 crore. The cash and cash equivalents was Rs 375.16 crore as end of FY12 compared to Rs 421.49 crore as end of corresponding previous year.

The company booked its highest ever standalone turnover of Rs 604 crore in a single quarter in Q4FY12 and traction in revenues was primarily driven by progress on 1) order backlog in the process & metallurgy segment; 2) the 50MW solar power project for Abhijeet Projects and 3) the 80MW captive power project of Suryadev Alloys.

The strategy to develop competencies in multiple verticals is paying off and helping the company to counter cyclicality in end-user industries.

Undertaken necessary steps to address outstanding receivables and are progressing towards a solution. Receivables as end of March 31, 2012 stood at Rs 1232.60 crore and Rs 1421.33 crore on standalone and consolidated basis compared to Rs 872.25 crore and Rs 993.55 crore in corresponding previous period end.

The company is confident of its competencies and believe that there are abundant opportunities even in a slowing capex cycle. Its order book continues to provide healthy visibility.

The Consolidated order book stood at Rs 3803 crore as on March 31, 2012 end and provides strong revenue visibility. And the Standalone order book was at Rs 2900 crore on March 31, 2012 as compared to Rs 3400 crore as on December 31, 2011.

Sree Jayajothi Cements (SJCL) : Of the total outstanding due of Rs 352 crore from SJCL the company has assigned part of its due amounting Rs 258 crore to Spark Environmental Technology (SETL) and converted the balance due of Rs 94 crore into equity shares giving the company a equity stake of 19% in SJCL. Now SEPC with group entities have acquired majority control i.e. 68% stake (19% of SEPC + 49% SETL) in SJCL. The company and its group entities is to infuse working capital and increase capacity utilisation from around 30% currently to more than 60% in one year. SJCL operates a 3.2 MTPA cement plant in Andhra Pradesh with captive limestone reserves. The strategy of the company and group entities is to offload stake to a strategic partner at a premium to realise value unlocking.

Board of Directors of the company have given their nod to raise Rs 150 crore of equity capital. The company has passed a general provision as the modalities of the capital raise have not been finalised. The funds will be invested for long term business plans of the company and its

subsidiaries which and does not include any investment into SJCL.

The EPC market opportunity is still largely interdependent on the fortunes of the infrastructure sector. Huge investments have been planned in ports, railways, roads and bridges, irrigation, power, and water supply and sanitation. On thumb rule basis even if we assume the share of construction investment us 50% approx., this indicates an opportunity for EPC players of Rs 16 trillion.

The company received an order in the Municipal Services Segment amounting to Rs 165 crore from the Kerala Water Authority for setting up a water distribution system for the city of Kozhikode and adjoining villages.