It gives me immense pleasure to connect with you once again to present ourCompanys Annual Report for the Financial Year 2018-19. This year was of greatsignificance for us as we could able to accomplish certain significant milestones in theareas of business development project execution funding for our new projects and growthin key financials of the Company amid unremitting challenges. With robust order bookaugmented resources enhanced techno-financial capabilities and proven expertise theprospects of growth are equally promising for the Company going forward. I am happy toshare snapshots of both performance and future outlook with you.
During FY 19 we have secured five new mandates of Rs. 5863 crores aggregate valueamidst stiff competition which is the highest ever new business secured by our Company ina single financial year. New projects include two contiguous packages of PurvanchalExpressway in Uttar Pradesh for a total contract price of Rs. 2520 crores and one packageof Nagpur-Mumbai Super Communication Expressway in Maharashtra for a contract price of Rs.2000 crores. With the above record order inflow unexecuted order book at the end of FY 19stood at over Rs. 12000 crores and even after execution of over Rs. 3000 crores value ofworks during the year showing sound revenue visibility for the next 2 - 3 years.
During earlier two years on majority of new projects secured by our Company physicalexecution couldnt be commenced due to prolonged delay in declaration of appointeddates by the authorities owning to persistent holdups in timely acquisition and possessionof vacant land by them. Even though our Company was fully geared-up to commence executionin full swing our hands were virtually tied-up to move ahead primarily due tonon-availability of required land and other impediments which were totally beyond ourcontrol and jurisdiction. Given the major challenge the Company had taken widespreadproactive measures adopted multi-pronged strategies and assumed higher responsibilitiesthan what envisaged in the contracts in supporting the authorities in expediting theprocess of land acquisition and removal of encumbrances across projects.
These concerted efforts made by our Company resulted in the declaration of appointeddates and commencement of execution at most of the awarded projects in the later part ofFY 18 and during FY 19. During the year our Company has also received completioncertificates for two highway projects of Ministry of Road Transport & Highways GoInamely rehabilitation and upgradation of Barabanki to Jarwal section of NH-28C and Sonaulito Gorakhpur section of NH-29E in UP.
Both these projects were completed by us despite the huge challenges and impedimentspersisted from the beginning till end. Liquidity crunch has been another definingchallenge that most of the players in infrastructure space encountered during the FY 19 asmajority of the banks and financial institutions became wary and refrained from making anyfresh commitments for funding new projects with an apprehension of further aggravation onNPAs in the sector. Given such a challenging financial stringency our Company hasachieved financial closure for three of its Hybrid Annuity Model (HAM) highway developmentprojects for an aggregate bid project cost over Rs. 4500 crores during FY 19 well withinthe scheduled timelines which could not have been possible without our consistentlyhealthy balance sheets and impressive credit ratings.
As you would have already noted from the annual financial declared earlier there hasbeen a quantum jump in our Companys both top and bottom lines in FY 19. RevenueEBITDA and PAT steeply increased by 67% 43% and 29% in FY 19 over FY 18 on standalone(EPC business) basis which were the ever highest. The Consolidated Revenue EBITDA andPAT of the Company also grew significantly in FY 19 over FY 18.
Though there was some slowdown in the awarding activity by the authorities in the lastquarter of FY 19 and first quarter of FY 20 owning to elections to the Lok Sabha projectawarding activity is expected to gather momentum from September 2019 onwards. Authoritiesat both central and state governments have already launched large number of highwaydevelopmental projects for an aggregate estimated cost of over Rs. 1.00 lakh crores forbidding on EPC and HAM formats. Majority of these projects are expected to be awarded forimplementation before the end of FY 20. As your Company has actively been pursuing theopportunities at both central and state levels and thoroughly prepared for bidding adecent of new business is expected to be added in FY 20.
During FY 19 both fund-based and non-fund based limits of the Company havesubstantially been enhanced by the consortium of banks which will enable us to pitch formore and larger size projects in FY 20. During FY 19 our Company has invested about Rs.300 crores on procurement of modern and multifunctional plant and equipment and as on 31March 2019 the gross block of Company has exceeded Rs. 1000 crores. Company also plansto incur sizeable amount of capex during FY 20 to augment its machinery further.
On manpower front also the Company has strengthened its team by recruiting newemployees across the disciplines with proven track record as we added nearly 3300 newmembers to take the Companys total employee strength over 9000 as on 31 March 2019.In FY 19 CARE Ratings have re-affirmed our Companys credit ratings at CARE (DoubleAA Minus) for Long Term Bank Facilities and CARE (Single A1 Plus) for Short Term BankFacilities which enable us to keep our borrowing costs at very competitive rates. I amhappy mention that our ratings are amongst the best in the infrastructure industry.
With more than Rs. 120 billion unexecuted order book at the beginning of FY 20 wellprogressing physical execution across the projects a large fleet of state-of-the-artconstruction plant & machinery in place more than 9000 workforce with provenabilities and excellent financial health the Company is scrupulously poised for scalingnew heights in terms of overall growth in FY 20 both. We also expect to complete some ofthe major ongoing projects successfully and secure certain new project orders during FY20. Going forward we will continue to focus on roads sector with EPC and HAM modes beingthe preferred formats of implementation.
We would also pursue business opportunities in airport pavements and other areas thatwould have close synergies with our core competencies and current operations. I would liketo thank our Board members for their immensely valuable guidance and insights. I wouldlike to take this opportunity to thank the entire Team PNC for their continued commitmentand relentless efforts. It is because of their dedication hard-work and determinationthat we are achieving newer heights progressively and I am also confident of scaling newheights going forward. I also want to thank our bankers customers business partners andvendors for their unconditional support. Above all my sincere gratitude to you our mostvalued shareholders who have displayed unwavering trust and support in our effortsbusiness decisions and endeavors.
With warm regards
Pradeep Kumar Jain