Press Releases

MARG LIMITED Q1 INCOME UP 42.5 PERCENT

Financial Highlights for Q1 2010 - 2011 (Rs. cr)

MARG

• Standalone revenues up by 42.5% in Q1 2010-11 vs. Q1 2009-10
• Share of external EPC revenue at 40% (Q1 2009 - 10 : NIL)

Karaikal Port

• Bolsters group financials
• Recorded revenue of Rs 36.8 crores (Q1 2009-10 : Rs 1.18 crores) and EBITDA of Rs 15.9 crores ( Q1 2009-10 : (-)Rs 2.31 crores)
• Achieved cash profit of Rs 8.04 crores (Q1 2009-10 : (-)Rs 4.5 crores)

Marg Swarnabhoomi SEZ:

• Records rapid growth
  • 6 fold growth in revenue at Rs 35.2 crores ( Q1 2009-10 : Rs 5.8 crores)
  • EBITDA grew to Rs 2.4 crores ( Q1 2009-10 : (-) Rs 1.1 crores)

MARG Standalone Financials:

Chennai, August 13, 2010: MARG Ltd., India's leading diversified infrastructure development company, today announced its audited financial results for the quarter ended June 30, 2010.

The company registered a 42.5 percent increase in operational income which stood at Rs. 174.8-cr in the first quarter of 2010 - 2011, as compared to Rs. 122.7 cr in Q1 2009 - 2010. The net profit for the quarter ended June 30, 2010 stood at Rs. 11.4 cr, a 2.7 percent increase from Rs. 11.1 cr for the quarter ended June 30, 2009.

Commenting on the company's performance in the quarter ended June 30, 2010, Mr. GRK Reddy, Chairman & Managing Director, MARG Limited said, "The first quarter of the fiscal carried forward the momentum set during the last financial year. Our results for the quarter under review are very encouraging. Despite the challenging business environment, our income has increased by a healthy 42.5 percent. As the demand has recovered, sales have picked up considerably. Keeping in line with this pick up in demand, we will continue to launch a mix of attractive projects across locations and generate both buyer and stakeholder interest by providing excellent location and superior project specifications at the best price. Our vision is to continue to improve on our position as the country's fastest growing diversified infrastructure development company."

VERTICAL UPDATE

MARINE INFRASTRUCTURE

In the very first year of operations, KaraikalPort handled traffic of 1.6 mn tonnes in 10 months comprising of coal, copra-cake, cement, sugar, project cargo and OSV/PSV. In the first 3 months of current financial year, Karaikal Port has already handled more than 1.2 mn metric tonnes of cargo including fertilizer cargo which was handled first time during Apr-June 0f 2010. It has handled 6.9 lacs metric tonne during Jun-2010 which is a peak operating record. And also achieved a peak discharge rate of 33,853 metric tonne per day, one of the highest discharge rate in any non-mechanised port. It has handled 254 mts length, near cape size vessel, in Jun-2010.

Karaikal Port signed:

1. A MOU with a leading Trading Company for stock, blend and sale with an assured cargo of I mn. metric tonne p.a. with y-o-y increase of 20%.

2. A MOU with major Oil Refinery for handling Crude Oil cargo.

3. MOUs with two major upcoming Power plants with an estimated 14 mn metric tonne cargo of take.

The Company received the prestigious award for 'Outstanding Achievement – Port Development & Port Management' conferred by Chemtech Foundation at 'Shipping, Marine & Ports World Expo 2010' from the Governor of Maharashtra.

Logistics :

MARG LOGISTICS was launched to provide port customers with transportation of cargo. It has been positioned as an Integrated Logistics Service Provider and expected to carry 2 lakhs MT during the current financial year.

INDUSTRIAL & URBAN INFRASTRUCTURE

MARG SWARNABHOOMI – the new paradigm for business, living and learning, featuring an Engineering Services - SEZ & a Multi Services - SEZ spanning over 613 acres has made a substantial progress. Of the 1300 homes launched, 900 have been sold and occupation of Phase – I has already commenced. Clients like VANSPALL (UK) have already started their operations. GRUNDFOS (UK), CROMOZ, LAXAI AVANTI, Biozeen, Virgo Engineering, Polyflex and a host of other companies are in the process of developing their facilities to commence operations. The SWARNABHOOMI ACADEMY OF MUSIC will be commencing its operations within the next 2 weeks and the SCIENCEPARK & ITPARK construction is already underway.

EPC

MARG FOUNDATION INDIA – the EPC arm of MARG is focused on providing engineering, procurement & construction business on turnkey basis in multiple verticals. It has an uninterrupted track record in execution of the projects in last 15 yrs and has a robust order book of INR 2800 crores (approx.). The Company has L&T, Indian Oil, BHEL, PETRONET, HP, ELCOT, CORPORATION OF CHENNAI, and various state PWD & CPWD as some of its valued clients and entered into strategic alliances with Valecha, NAPC, IVRCL, Apollo Hospitals for new EPC projects. EPC is concentrating in building integrated townships & SEZs, besides residential & commercial projects, and buildings of 1 mn sq. ft. has been delivered.

REAL ESTATE (RESIDENTIAL)

'MARG ProperTies' the residential arm of MARG, caters to 4 different segments, namely, urban smart homes, affordable homes, integrated townships and ultra luxury homes. The brand 'MARG ProperTies' assures delivering the right product with value technology to different classes of people.

'MARG ProperTies' has sold 905 homes in NAVRATNA & UTSAV in MARG SWARNABHOOMI, VISWASHAKTI at Tirupati, and PUSHPADRUMA in OMR - all residential projects, and registered a sale of 1 mn sq. ft. space in 2009-10. It has sold approx half a million Sq. during April to July 2010. 'SAVITHANJALI' - tech smart homes, is the first of its kind on OMR and 'LAKSHNA', another project for aspirational customers on OMR, South Chennai, affordable homes at Oragadam, Sriperumbudur, near Chennai, SKY MEADOWS – high rise apartments & MAHA UTSAV at MARG SWARNABHOOMI SEZ aggregating to 3.0 Million Sq ft have also been launched.

REAL ESTATE (COMMERCIAL)

In the commercial segment - 'MARG JUNCTION', the company is executing a multi-use development project, which comprises of a mall, a multiplex, hotel, service apartments, offices, etc. The Company's plan to develop retail, commercial and leisure development in three phases is spread over 7.3 acres with a built-up area of 1.83 mn. sqft., and will go into operations in the 1^st qtr of 2012. MARG JUNCTION is strategically located in southern Chennai with a clear first mover advantage. The Company has signed MOUs with PVR cinemas for a 7 screen multiplex, Shoppers Stop for the departmental store, and Hypercity for the hyper market, as the three key anchor tenants for the mall. Over 35% of the mall space has already been leased, and another 15% of the space is expected to be signed off in the next 2 months.

OTHER INFRASTRUCTURE

The Company has also poised to move forward in the development of airports. The Company has signed PDA with Karnataka Government as BOT project to build BijapurAirport on 727 acres of land, at a cost of Rs. 150 crores, for 30+60 yrs contract term. Similarly, in Aug-2010, the Company entered into a PDA with Karnataka Govt. to build BellaryAirport on 900 acres of lease land at a cost of Rs. 258 crores for BOT project for 30+30 yrs contract term.

Development of around 40 million sq ft of space for warehouses, industrial plots , tank farms , educational institutions , affordable homes are under various stages of development on an expanse of 1004 acres held by MARG near Karaikal port , MARG Swarnabhoomi , Krishnapatnam port and OMR.

AWARDS AND RECOGNITION

In recognition of sphere heading activity in infrastructure, the Company has been awarded with

1. The Prestigious Award 'Sir Viswesvaraya Industrial Award' from All India Manufacturers Organisation -TNSB was received in 2010.

2. EXIM Achievement Award 2010' was received from Tamil Nadu Chambers of Commerce by KaraikalPort.

3. CII – 'Tamil Nadu Emerging Entrepreneur Award' for vision and willingness to dream big was awarded to our CMD – Mr. GRK Reddy in 2009. And

4. South East CEO conclave Award 2010 for Corporate Social Responsibility to our CMD, Mr. GRK Reddy.

5. The Company has been accredited with 'Corporate Social Responsibility Award' for being the Premier Sponsor of the Chennai Marathon in aid of 'Give Life Charity 2008' and would be participating in Chennai Marathon 2010 in August end.

BUSINESS RESTRUCTURING

The Company Contemplating to restructure its business segments for improving productivity, operational efficiency and better use of existing resources. The business restructuring exercise which is on anvil would result in synchronising its various operations in the business vertical such as Marine, infrastructure, Industrial and Urban Infrastructure, EPC, and other Infrastructure projects. It is proposed to hire a reputed professional firm to conduct the business restructuring exercise taking in account the substantial growth areas in all the existing business verticals

For more information visit   http://www.marggroup.com

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