The Steiner Group successfully closed the 2015/2016 financial year on 31 March 2016 in a challenging market characterized by strong pressure on margins. Orders in hand at the Group – a leading real estate developer and total/general contractor – came to a record at CHF 1,319.0 million, almost 20 percent more than the previous year's figure. At the end of the 2015/2016 financial year Steiner had also secured additional projects worth CHF 703.0 million, equating to an increase of over 17 percent compared with the previous year.
In the year under review, the Steiner Group further optimized its business processes and increased its customer focus in order to strengthen its market position in a sustainable way and drive profitable growth in the long term. The Group achieved consolidated sales of CHF 651.3 million (previous year: CHF 854.5 million) based on Swiss GAAP ARR accounting standards in a highly competitive market environment. The main reasons for this were time-related effects in processing the order backlog and the postponement of a few major projects due to external influences. "Owing to the late-cycle order intake in the previous year we had – as announced – expected a somewhat lower result for the 2015/2016 financial year. We are certain that we will compensate for these drops in volume over the next few months and reach the previous year's sales volume", explains Steiner's CFO, Ajay Sirohi.
Despite lower sales and one-time costs at the Group level for the SAP roll-out and specific process optimizations along the value chain, the Steiner Group achieved a pleasing operating result of CHF 4.8 million. The company has a solid balance sheet and its cash position amounted to CHF 85.4 million as at 31 March 2016. At Group level, order backlog stood at CHF 1,319.0 million at the end of the financial year, exceeding the previous year's figure of CHF 1,120.0 million by almost 20 percent. At the end of the 2015/2016 financial year Steiner also secured additional projects worth CHF 703.0 million, equating to an increase of over 17 percent compared with the previous year's order intake.
At the Steiner India subsidiary, the 2015/2016 financial year was characterized by further market development. Furthermore, Steiner India focused on adapting its operational structures in order to optimize its project margin.
Outlook for the 2016/2017 financial year
In the 2015/2016 financial year, the Steiner Group created a basis that will enable it to strengthen its market position. As part of this, it is aiming to increase the proportion of its own development projects. The Group will continue to implement its sustainable growth strategy. Steiner has a well-filled order pipeline, with attractive projects due to start in the current 2016/2017 financial year in both German and French-speaking Switzerland.
Steiner, a division of the Hindustan Construction Company, plays a key role within the HCC Group. Domiciled in Mumbai, the Group has reaffirmed its long-term strategy and thus its strong desire to continue growing in the Swiss construction sector and to expand its market position in the Indian construction industry with its subsidiary Steiner India.
Hindustan Construction Co Ltd. (HCC Group)
Since 2010, the Steiner Group has been part of the Mumbai-based Hindustan Construction Company Ltd. (HCC), which employs more than 3,000 people. HCC is active in engineering and construction, infrastructure, real estate development, urban development and urban management. It focuses on constructing landmark projects of high complexity, where it applies its core competencies and skills to deliver world-class infrastructure. As market leader in the core sectors, HCC has constructed a remarkable number of power plants in India, a large part of the country's high-speed road network (over 3,600 km), metro systems and over 350 tunnels, as well as bridging almost every major river in the country.
Steiner AG, one of the leading project developers, total and general contractors (TC/GC) in Switzerland, offers comprehensive services in the fields of new constructions, refurbishment and Real Estate Development. The company, which was established in 1915, has constructed more than 1200 residential construction projects, 540 commercial properties, 45 hotels and 150 infrastructure facilities such as universities, schools, hospitals, prisons and retirement homes. Steiner AG has its headquarters in Zurich and is represented by branches in Basel, Berne, Geneva, Tolochenaz, Lucerne and St. Gallen.
The expectations expressed in this media release are based on assumptions. Actual results may diverge from these expectations. This media release is available in German, French and English. The German version is authoritative.
Information for the media
Claude Sulser, Head HR & Corporate Communications, Steiner AG
Tel. +41 58 445 20 00, claude.sulser @steiner .ch
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