I welcome all Shareholders and Board of Directors to the 20th Annual GeneralMeeting of your Company for the financial year ("F.Y.") 2015-16.
F.Y. 2015-16 saw the global economy tumble on account of weak European and Chinese cuesand various other factors. But India stood its ground to become the fastest growingeconomy in the world with a GDP growth of 7.6%. Reserve Bank of India's inflation focussupported by benign global commodity prices has come to fruition through combined effortsof strong Government reforms. In addition to all this the Government was able to controlthe fiscal deficit to its budgetary target of 3.9%.
The Indian Real Estate sector which is 2nd largest employment generator inIndia after agriculture is showing signs of revival with increase in sales and reductionof unsold inventory. There is also a significant increase in new launches in theresidential space.
The Government has been focusing on clearing major Infrastructure projects which hasresulted in considerable increase in speed of construction of highways which is at thehighest this year. Infrastructural development is proving vital for real estate sector.Government has started shaping previously launched housing for all schemes and has come upwith the list of smart cities which will be developed. Sardar Patel Urban Housing schemeAtal Mission for Rejuvenation & Urban Transformation
("AMRUT") and Heritage City Development & Augmentation Yojana ("HRIDAY")will drive growth in the sector.
The Real Estate (Regulation and Development) Act 2016 ("the Act") ispassed by the Parliament and has received the assent of the President of India on March25 2016. Different provisions of the Act may be brought into force on different dates asmay be specified by the Government of India. The Act contains several provisions toaddress the lacunae in the real estate market principally by way of establishing adisclosure framework and setting strict liabilities for promoter irregularities. This willbring regularities and uniformity in the sector.
Mumbai over a period of last few years has improved its commute facilities with newmodes of transit like monorail metro rail and the connectivity across the city hasimproved considerably. Allotment of 'Metro-III Rail' contracts has already boosted thesentiments among commuters. These developments will have bearing on growth of yourCompany. The proposed Development Control Regulation 2034 Coastal Road Policy elevatedsuburban rail corridor will develop the connectivity between business districts andsuburbs of Mumbai Metropolitan Region.
Your Company has been a major player in residential commercial affordable housing andredevelopment spaces. Relaxation of policies with regards to affordable housing andredevelopment and market's sign of regaining momentum will boost the Company in terms ofnew project launch and Floor Space Index ("FSI") sale.
Private Equity Real Estate ("PERE") firms deployed over $5 billion inIndian real estate companies and projects - the highest since the financial crisis of2008. PERE firms made around 90 investments in India during 2015. All this in aggregatecomes as a great positive for the sector which is looking for revival.
The turnover of the Company for the year ended March 312016 increased by 9.18%and stood at Rs 119109.46 lacs as against Rs 109093.36 lacs in the previous year;
The profit after tax for the year ended March 312016 increased by 17.07% to Rs26496.25 lacs as against Rs 22633.35 lacs in the previous year;
Earnings per share increased by 48.82% to Rs 8.17 as against Rs 5.49 in theprevious year;
Net cash flow from operational activities is Rs 39860.29 lacs and
During the year under review the Company's Debt has been reduced by 7.70%.
In last 24 months your Company has handed over approx. 2500 residential units. Innext 12-18 months company will handover around 4500 residential units.
I wish to express sincere thanks to all my shareholders Board of Directors bankersbusiness partners Government agencies contractors and customers for their continuedsupport and faith reposed in the Company. I also place on record my deep appreciation toall employees for their hard-work and dedication.
I would also take this opportunity to acknowledge that your Company is upholdingresponsibility for the environment and promoting well-being of all stakeholders includingemployees customers and society at large.
Rakesh Kumar Wadhawan