Chairman Speaks

Dear Shareholders,

Being a leader of the fastest growing company attracts a lot of responsibility and commitment towards the customers, employees and stake holders of the organization.

I thank each and everyone who has shared the responsibility of brining ARSS to a prestigious brand name in last ten years.

The year 2009-10 will be marked as one of the most important milestones in the growth of ARSS. During the year, ARSS not only did have a turnover of more than Rs. 1,000 Crore, but also the Company also got listed. It gives me great pleasure to present you the 10th Annual Report on our performance and achievements.

I am delighted to announce that our IPO was oversubscribed by 51 times with an issue price of Rs. 450 per share. This reflects our acceptance among the investors as a reliable company. In return, the investors of the Company are being handsomely rewarded with excellent capital appreciation in their investment since listing with an almost immediate and substantial appreciation of the price. It's something that gives me great personal satisfaction, since one of the credos of the Company is to be able to share our success with our shareholders.

With India being one of the fastest growing economies in the world, we have a tremendous opportunity before us. Over the last year, your Company has grown on a large scale across all the segments of the infrastructure sector and has successfully emerged as one of the largest players in India. During the year, we executed some major railway and road projects to the best satisfaction of the clients and thereby enhanced the brand value of ARS S Infrastructure Projects Ltd.

Our Company has recorded consolidated revenue of Rs. 1,013.09 Crore for the year ended 31st March 2010, an increase of 61.26% over Rs. 628.24 Crore in the financial year 2008-09. EBITDA stands at Rs. 187.70 Crore, an increase of 78.83% as compared to Rs.104.96 Crore in the previous year. Net profit after tax is Rs. 90.10 Crore, up by 79.88% from Rs. 50.09 Crore as recorded in the previous year. The EPS for the financial year 2009-10 is Rs. 70.48 as compared to Rs. 39.90 for the financial year 2008-09, a significant growth of 76.72%. The economic recovery in the Indian economy is bringing a lot of opportunities to all the major players in this sector. This will give rise to fresh challenges as well as opportunities for new methods and technologies of construction, execution and creation of innovative projects in the infrastructure sector. This will add immense value to all stakeholders of the Company.

The coming financial year heralds a lot of new opportunities for your Company. And we are gearing up with make the most of these opportunities. Our focus remains on building a culture of quality and trust, and on building longstanding relationships with our customers and partners. As we proceed to harness all the resources with the cooperation of all stakeholders, I express my sincere gratitude to all. Thank you to all the stakeholders, including the employees of the Company, for your hard work, dedication and sincerity. I am also thankful to all our clients for reposing their faith and confidence in us and to our bankers and other lenders for their continued support.

I look forward to a year of greater growth, and a greater reward for all those who have placed their faith in us – our customers, our partners, our employees and our shareholders.

Best regards,
Yours sincerely

(Subash Agarwal)
Chairman.