Directors' Report
Total Page:16
File Type:pdf, Size:1020Kb
PAVING THE WAY TO SUCCESS ANNUAL REPORT 2016-17 Forward-looking information In this Annual Report we have disclosed forward-looking information to enable investors to comprehend our prospects and take informed investment decisions. This report and other statements - written and oral - that we periodically make contain forward-looking statements that set out anticipated results based on the management’s plans and assumptions. We have tried wherever possible to identify such statements by using words such as ‘anticipates’, ‘estimates’, ‘expects’, ‘projects’, ‘intends’, ‘plans’, ‘believes’, and words of similar substance in connection with any discussion of future performance. We cannot guarantee that these forward looking statements will be realised, although we believe we have been prudent in our assumptions. The achievement of results is subject to risks, uncertainties and even inaccurate assumptions. Should known or unknown risks or uncertainties materialise, or should underlying assumptions prove inaccurate, actual results could vary materially from those anticipated, estimated or projected. Readers should bear this in mind. We undertake no obligation to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise. CONTENTS 02 16 39 52 54 About the VC & MD’s Project Board of Key Company & review portfolio Directors management Profile team 56 57 64 100 177 Corporate Management Statutory Standalone Consolidated structure Discussion & sections financial financial Analysis statements statements MEP Infrastructure Developers Ltd. is one of the fastest growing Indian infrastructure companies engaged in road construction, operation, maintenance and toll collection. We are committed to improve the quality of life for people across the country with our road infrastructure projects to usher a new era in the nation’s infrastructure development. MEP proactively focuses on quality, diversification and environment protection, which has bolstered our reputation and garnered trust within the industry. Our ability to take on challenges is backed by a strong and determined team of people with the passion to achieve targeted results. We believe that People are our biggest assets who’s value always appreciate. Our endeavor is to deliver value to all our stakeholders and grow our position in the infrastructure development industry through ethical, sustainable and profitable means. MEP Infrastructure Developers Ltd. Leader in the business of Toll collection and OMT in India (Source: CRISIL Report 2014 and 2016) Awarded as one of the 14+ ‘Best Infrastructure Years of experience brands, 2016’ By Economic Times in association with KPMG Awarded 129 ‘Best Infrastructure Total no. of Company, Maharashtra’ projects executed By IBN7 Worldwide Achievers Rajiv Gandhi Sea Link, Mumbai : OMT project 02 | MEP Infrastructure Developers Limited www.mepinfra.com 63% 12 1254 Share of States Toll lanes long-term projects Footprint in India covered under in total revenue in FY17 toll collection projects C 2877 3837cr 3632 Lane kms Total workforce HAM order book covered under HAM, B0T and OMT All figures as on 31st May, 2017 Annual Report 2016-17 | 03 MEP Infrastructure Developers Ltd. Bringing passion to perseverance Hyderabad Bangalore OMT project 04 | MEP Infrastructure Developers Limited Background road assets in India. The Company forayed into the Hybrid Annuity space An enterprise founded The Company has a of road construction in by the Mhaiskar family, successful track record 2016 with six major road MEP Infrastructure of over 14 years of projects. It commands Developers Limited is a operational excellence pan a significant market Mumbai-headquartered India, having executed share in this space with organization with a more than 120 projects a current order book of footprint in 12 States across the country. around 4,000 cr covering across the country. Since commencing C 1060 lane kms. MEP has Established in 2002, operations in 2002 from a strong workforce of as a toll management a pure toll collection 2,877 employees across company, MEP today business model, MEP has verticals - tolling, civil and is an end-to-end road evolved into a diversified technical competencies infrastructure company, Infrastructure company - covering the entire covering construction, having operations in road business value chain. operation and continue construction, OMT and toll maintenance of road and collection. Vision To strive towards transforming surface infrastructure into an enriching customer experience. Mission To enhance value for stakeholders through intelligence, innovation and integration. To deliver superior value to our stakeholders by being the leading benchmark of excellence in the field of surface infrastructure. Core values Brand attributes Achieve excellence, operate Every aspect of MEP’s business with the highest standards is characterized by integrity, of integrity and employ a innovation, intelligence and diverse workforce that values high standards of corporate collaboration. governance. Annual Report 2016-17 | 05 Journey over the years Crossed C1,000 cr of revenue in a single financial year (FY 12) for the first time Acquired BTPL BOT project in Launched Electronic Toll Maharashtra for Collection (ETC) at the C1.01 cr Rajiv Gandhi Sea Link Awarded the Awarded two long-term Mumbai Entry Points Project toll collection projects on OMT basis for and Hyderabad- Started collection 16 years with an Bangalore OMT project of toll at the Rajiv upfront payment Gandhi Sea Link of C2,100 cr toll plaza from Started collection July 2009 until Awarded 5-year of toll at the February 2014 long-term project five entry points in Rajasthan by to Mumbai for RIDCOR; started 6 years from toll collections December 2002 through NHAI across multiple states in India 2002 2009 2010 2011 2012 06 | MEP Infrastructure Developers Limited Achieved financial closure for all 6 HAM projects and received Appointed Date for Entered into joint 4 out of 6 projects (as on venture with San Jose May 31st, 2017) India for construction Crossed the landmark of Hybrid Annuity Listed on BSE and Model projects figure of 1 lakh ETC patrons NSE on 6th May, (Electronic Toll Collection) in Won 6 HAM projects 2015 with an IPO of Mumbai covering the Rajiv in Maharashtra and C324 cr Gujarat in March-June Gandhi Sea Link and the Awarded a 3-year OMT Awarded various toll 2016, covering 1,059.97 five Mumbai Entry Point toll contract by MSRDC for lane-kms worth plazas. the Rajiv Gandhi Sea Link collection and toll C3836.99 cr in Mumbai maintenance projects Inked a Memorandum through consortium of Understanding with Awarded multiple OMT projects and tolling Government of Malaysia’s collection projects in Construction Industry Tamil Nadu, Andhra Development Board (CIDB) Pradesh and Maharashtra to strengthen, promote and develop their cooperation through knowledge sharing and introducing their best practices towards the joint development of sustainable highway and expressway projects in India and related investments. 2013-14 2015 2016 2017 Annual Report 2016-17 | 07 08 | MEP Infrastructure Developers Limited Our esteemed clients MUMBAI – JNPT PORT ROAD COMPANY LIMITED Our partners in progress Annual Report 2016-17 | 09 This is how we strengthened our business in 2016-17 Key operational highlights Year-end project portfolio comprised Won 3 Hybrid Annuity projects – Talaja 14 projects: 6 HAM (1059.97 lane Mahuva and Mahuva Kagavadar from Inked a Memorandum of Understanding kms), 1 BOT (42 lane kms with 5 toll NHAI in Gujarat and Kante-Waked with Government of Malaysia’s plazas), 3 OMT (1361.32 lane kms under project from MORTH in Maharashtra. Construction Industry Development maintenance with 9 toll plazas) and 4 This resulted in a total of 6 HAM Board (CIDB). Toll collection projects (5 toll plazas in projects valued at C3836.99 cr covering 5 states). 1059.97 lane kms. Entered into a Service Level Agreement Received appointed date and commenced Awarded one Long term and 8 with Mumbai Nashik Expressway work for 4 out of 6 projects (Nagpur 2 Short-term toll collection projects. Limited, a Brookfield controlled entity, projects + Gujarat 2 projects). for rendering services as per the scope of the SLA, including operating and MEPIDL is the EPC arm for the managing 2 toll plazas and allied Received the Certificate of Registration completion of the road projects won facilities – Arjunali & Ghoti toll plazas as an Infrastructure Investment Trust under HAM. for a period of 3 years. from SEBI to set up an InVIT. 10 | MEP Infrastructure Developers Limited Year-end project portfolio 14 Total number of projects under HAM, BOT, OMT and toll 6 HAM projects 1059.97 lane kms 4 Toll collection projects Key financial highlights 5 toll plazas in 5 states PAT for the FY17 increased to C109 cr Finance cost reduced by C149 cr to as compared to C(37 cr) in the C493 cr in FY17 as against C642 cr previous year. in the previous year. 3 Successfully achieved financial closure Revenue for the year stood OMT projects for all 6 hybrid annuity projects with a at C1,729 cr. 1361.32 lane kms project finance of C1726.65 cr. with 9 toll plazas Earning per share for FY17 stood at C6.70 as compared to C(2.31) in FY16. The Board of Directors have recommended a final dividend of C0.15 per equity share of the face value of 1 C10/- per share. Company’s consolidated debt reduced by BOT project C122 cr to C2,949 cr in FY17 as against 42 lane kms C3,071 cr in the previous year. with 5 toll plazas Annual Report 2016-17 | 11 Financial Overview 108.93 1,606.49 1,533.03 1,905.19 1,729.07 15-16 16-17 ) 36.59 ( 15-16 16-17 15-16 16-17 Revenue from operations EBIDTA PAT (C in Cr) (C in Cr) (C in Cr) Why we measure: This index measures Why we measure: This index measures Why we measure: This measure is an the effectiveness of our business selection, business efficiency in absolute terms.