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Simplex Infrastructures Ltd.

BSE: 523838 Sector: Infrastructure
NSE: SIMPLEXINF ISIN Code: INE059B01024
BSE 00:00 | 24 Apr 2020 Simplex Infrastructures Ltd
NSE 05:30 | 01 Jan 1970 Simplex Infrastructures Ltd

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OPEN 32.40
PREVIOUS CLOSE 30.90
VOLUME 1473
52-Week high 176.00
52-Week low 16.45
P/E 6.02
Mkt Cap.(Rs cr) 185
Buy Price 32.40
Buy Qty 8931.00
Sell Price 32.30
Sell Qty 250.00
OPEN 32.40
CLOSE 30.90
VOLUME 1473
52-Week high 176.00
52-Week low 16.45
P/E 6.02
Mkt Cap.(Rs cr) 185
Buy Price 32.40
Buy Qty 8931.00
Sell Price 32.30
Sell Qty 250.00

Simplex Infrastructures Ltd. (SIMPLEXINF) - Chairman Speech


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Company chairman speech

Dear shareholders

India has emerged as the fastest growing major economy in the world and is expected tobe one of the top three economic powers of the world over the next 10-15 years backed byits strong democracy and partnerships. India's GDP is estimated to have increased 7 percent in 2018-19.

India moved up by 23 places in the World Bank's Ease of Doing Business Index 2018 andgot 77th rank. This is attributed to 6 reforms this year- starting a business gettingelectricity construction permits getting credit paying taxes and trading acrossborders. The maximum improvement was of 129 places in construction permits to reach 52ndrank in 2018 as compared to 181st in 2017. Infrastructure sector is a key driver for theIndian economy. The sector is highly responsible for propelling India's overalldevelopment and enjoys intense focus from Government for initiating policies that wouldensure time-bound creation of world class infrastructure in the country. Infrastructuresector includes power bridges dams roads and urban infrastructure development. As Indiacontinues to ascend in the rankings of the world's largest economies its contribution toglobal GDP growth momentum will also increase. India will also play an increasinglyimportant role as one of the Asia-Pacific region's major economic growth engines helpingto drive Asian regional trade and investment flows. The infrastructure sector was one ofthe major focus areas in the FY19 budget and saw massive spending on roads railwayswater irrigation and urban infrastructure.

The engineering and construction industry plays an integral role in building the futureof the modern world amidst a number of potential obstacles such as material pricevolatility talent shortages and the rapid pace of technological change. However thereare reasons to be optimistic. Simplex have proven track record of successfully completingconstruction of several Flyovers Jetties Bridges Highways Roads Water TreatmentPlants Stadiums Buildings Ports Railway Station etc. It stands for quality andreliability of works timely completion of projects closest supervision of all sitesbest project management quick response to customer needs and technical support services.The Company takes pride not only in our professional commitments of infrastructuredevelopment that help in upgrading the life of people but also equally value of itscommitment to society. The company has successfully executed over 3000 projects across allconstruction verticals-piling & ground engineering industrial building &housing power-thermal nuclear and hydel power transmission marine ports roadsrailways bridges and urban infra. It boasts of an uninterrupted Profit track record sinceinception. At Simplex our diversified projects in sectors as well as geographies liberateus from any adversities in one particular segment or geography. We know that with thisstrategy we are uniquely positioned in picking up the right signals and to discoverwhat's next. Simplex embraces the latest technology on a continuous basis to modify train adapt new ideas new technologies and new skills to become agile in our responses to arapidly changing external environment. Simplex promotes the adoption of safe workingprocedures and practices to ensure safety for both our individual employees and thecommunity.

Your Company performed reasonably well on all key parameters. Order In3 ows which arethe lifeblood of any business with Engineering Procurement and Construction (EPC) as itscore came in at Rs.31938 mns in FY19. The Order Book as on 31st March 2019 stood atRs.160203 mns which gives us strong revenue and margin visibility for the next few years.Revenues in FY19 have clocked in at Rs.60415 mns. PBT stood at Rs.1837 mns in FY19representing a substantial growth of 22% over FY18. Even though awarding of infrastructureprojects continued to be unpredictable in terms of timelines and executions were impactedin 2018-19 due to disruptions caused by implementation of GST as well as bottlenecks insome projects due to delayed customer payments clearances and land acquisition yourCompany has fared reasonably well. Needless to emphasize that Human Resource is thebackbone of any organization. It is the best resource an organization can have nourishand motivate which can make-up for all other resources which are in short supply. InSimplex the focus is always on continuous skill development and promoting core valueswhich would inspire the employees to achieve excellence in all endeavors and maximize thestakeholder's value. It gives me great pleasure to inform you that the Board of Directorshas recommended a Dividend of Re.0.50 per share. In April 2018 the Company issued andallotted 3609261 convertible equity warrants for an amount not exceeding Rs.2000 mns toPromoters and in January 2019 602000 Equity Shares having Face Value of Rs. 2/- eachwere allotted to one of the Warrant Holder pursuant to conversion of the aforesaidwarrants. QIP Issue made by the Company in May 2018 received good response from theInstitutional Investors and the Company had successfully raised an amount of Rs.4000 mns.This reflects enriched investors' confidence in the credentials of your organization.

Government of India has ushered in various new and novel policy initiatives which arebound to have long-term positive effect on Indian economy viz. Make-in-India SwachhBharath Abhiyaan 100 Smart Cities Jan-Dhan Yojana Digital India Housing for allmovement by 2022 etc. Such initiatives shall lead to creation of a socially andeconomically empowered nation promoting inclusive growth. While the Government has takenseveral concrete measures there is still a long way to go. We hope that the governmentlooks into some of the key concerns raised by the industry and addresses the same soon. Tobring back growth in the sector which is so vital to any developing economy we expectedGovernment to impart industry status to the sector which would enable developers to cutcapital costs and pass on the benefits to consumers.

On behalf of the Board I am grateful to all our shareholders for your trust andconfidence in us to stay with us as we move forward in this journey. My gratitude to mycolleagues on the Board for their valuable guidance. I also convey my sincere thanks toall our employees customers bankers and all other business associates and the Governmentand various authorities for their continued support interest and confidence in theCompany and its management.

Thanking you

Rajiv Mundhra

Executive Chairman


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