I am delighted to share with you my thoughts and views on the performance of yourCompany last year as well as discuss prospects for the future.
Let me begin by echoing the remarkable positivity in the Indian economy since the lasttwo years. The long-term initiatives taken by a determined government will have lastingimpact on the overall progress of the country in the years to come. There are alreadyvisible signs that the country is moving ahead in the right direction and at the rightspeed. For the second year in a row India emerged as the fastest growing major economywith a GDP growth rate of 7.6%. This is more remarkable considering that this performancewas achieved in spite of two consecutive sub-par monsoons. With all the key buildingblocks in the right place India is indeed in a 'sweet spot' on the global platform.
The effect of consistent economic growth has rubbed-off on every industry and sectorthough in varying degrees. Demand which had been subdued has started picking up.Inflation has been largely stable interest rates have remained low and importantly therehave been many initiatives taken by the government to increase transparency in the sectorand make it more attractive to foreign investors. Clarity on REITs and legislations likethe Real Estate Regulation Act are steps in the right direction which are likely toattract more investments in the real estate sector.
There has been a marked improvement in the commercial lease and rental scenario overthe last year. Buoyed by an overall positivity in sentiments and revival of confidenceabsorption across all key cities have increased quite remarkably over the previous year.The average rentals have also shown a moderate improvement. As the economic climateimproves this augurs extremely well for the real-estate space in general and yourCompany in particular.
Your Company has always been focused on VALUE DRIVEN GROWTH. It has always investedcautiously in carefully considered assets and pragmatically developed a business modelthat delivers a consistent cash-flow. It is this unique mix of cash-flow with capitalappreciation of its assets that underline VALUE DRIVEN GROWTH at Cineline.
Today Cineline has 9 (nine) Theatres and all these Theatres are leased to PVR Cinemason a long-term basis generating a steady cash-flow of rental income. In addition yourCompany also owns Eternity Mall at Nagpur occupied by some of the top national andinternational brands adding to the rental income. Your Company also has a modest presencein the emerging renewable energy space in the form of two windmills located at Viswada inGujarat and at Revangaon in Maharashtra. Currently the total capacity of these twowindmills is 2.2 MWA. The Company earns additional revenues from the power generated bythese windmills.
This year your Company delivered excellent financial performance. The total revenuesfor the year increased to ? 3207.57 lacs compared to ? 2659.74 lacs in the previousyear an increase of 20.60%.
EBITDA for the year stood at ? 2375.73 lacs against ? 1965.16 lacs in 2014-15 lacsincreasing by 20.89%. PAT increased by 46% froSi 394.94 lacs in 2014-15 to ? 576.59 lacsin 2015-16.
Rental income increased to ^ 1658.91 lacs compared to ? 1444.74 lacs in the previousyear an increase of 14.82%. Revenue from windmill business increased by a 4.86% to ?166.08 lacs against ? 158.38 lacs last year.
The outlook for your Company continues to remain positive. The momentum gathered in thecommercial and retail real estate space during the year is expected to gain further on theback of forecasts of continued economic growth in the next few years. Consumer demand isexpected to pick up as the effects of the implementation of the 7th Pay Commissionincrease wages and augment consumer spending power of middle class in the country. Thelikely implementation of the Goods and Services Tax (GST) will give a major fillip to theoverall economic growth unleashing the potential of a one-marketplace for the first time.
It is amidst these extremely positive tidings that I wish to conclude my message. I amquite convinced that we are poised for a phase of sustained long-term growth in India. AtCineline we shall continue with our focus to creating and delivering and sustained VALUEBASED GROWTH for all our stakeholder.
Thank you very much for your continued trust and confidence in Cineline.
|Your sincerely |
|Rasesh Kanakia |