You are here » Home » Companies » Company Overview » Mahindra Lifespace Developers Ltd

Mahindra Lifespace Developers Ltd.

BSE: 532313 Sector: Infrastructure
NSE: MAHLIFE ISIN Code: INE813A01018
BSE LIVE 15:26 | 14 Dec 457.00 2.65
(0.58%)
OPEN

460.95

HIGH

465.00

LOW

451.00

NSE 15:41 | 14 Dec 456.35 -0.45
(-0.10%)
OPEN

460.75

HIGH

462.00

LOW

451.80

OPEN 460.95
PREVIOUS CLOSE 454.35
VOLUME 4272
52-Week high 528.10
52-Week low 319.53
P/E 52.89
Mkt Cap.(Rs cr) 2,345
Buy Price 453.25
Buy Qty 20.00
Sell Price 459.50
Sell Qty 10.00
OPEN 460.95
CLOSE 454.35
VOLUME 4272
52-Week high 528.10
52-Week low 319.53
P/E 52.89
Mkt Cap.(Rs cr) 2,345
Buy Price 453.25
Buy Qty 20.00
Sell Price 459.50
Sell Qty 10.00

Mahindra Lifespace Developers Ltd. (MAHLIFE) - Chairman Speech

Company chairman speech

Dear Shareholders

The last year has been one of the most eventful years for the Indian economy in manyways. There have been many significant developments that can change the course of ourcountry's long term growth trajectory. FY 2018 hence becomes a very important year for allof us especially in the real estate industry since we will see the impact of severalpolicy related initiatives in this year.

Let me start with demonetisation which clearly had a visible impact on our business inFY2017 as we saw a sharp drop in residential sales volumes during the three months periodpost demonetisation. However there was a quick recovery for Your Company in the followingmonths as its customer friendly policies attracted end users. In our residential businessthe strategy to be present in corridors with good social infrastructure and to createproducts in the mid-premium segment has been validated as we continue to see good tractionin such markets and segments. I believe end user demand will continue to see good growthdue to lowering interest rates coupled with increased offerings in the Affordable housingspace due to good policy support from the Government in that segment. Our experience inthe Affordable housing space has been very encouraging and we believe the timing is nowripe for this business to scale up.

The overall impact of demonetisation was relatively lower in our B2B business driven bycommitments from existing customers for expansion and new customers with a long term playin the Indian market. Consequently we saw good growth both in volumes and pricing atMahindra World City Jaipur. The forthcoming launch of the two industrial clusters atChennai and Ahmedabad will help us widen our offering in this space and meet theopportunities arising out of the concerted thrust on ‘Make in India'.

I would also like to discuss one policy transition which effects us most directlyRERA. While the Central Act had been enacted the process of enacting state level rulesand authorities is still underway. As I mentioned last year Your Company has beencomplying with many of the new norms being suggested under RERA and its level ofpreparedness for adherence continues to be high. There will be some teething issues thatthe industry will face in the initial days but I am confident that increased customerconfidence will boost demand in the mid to long term.

The other big change is expected on account of GST which will need some changes in ourinternal processes to ensure smooth and effective adoption. On an overall basis webelieve that GST will lead to increased transparency across the supply chain and minimiseleakages and double taxation for Your Company. I also believe that GST will usher in a newwave of investments as many companies rationalise their supply chain while new companiesenter the market triggering a new investment cycle. Given that real GDP growth for 2016-17is expected to be 7.1%; and real GVA growth is pegged at 6.6% rollout of GST will injectthe much needed boost for growth in the economy. In addition inflation is now undercontrol as is the fiscal deficit. These are creditable achievements and with increasedGovernment spending on infrastructure and improved liquidity due to lowering interestrates I expect the macro economic environment to improve in FY2018.

I believe Your Company is in a good situation to benefit from the changes in theindustry and the general economy. We are adequately capitalized with a strong balancesheet to build scale at a time when asset values are looking attractive. Financialpartners have shown keen interest in working with us in each of our business segments andwe believe this approach of having strategic relationships will enable us to improve theefficiency and Return on capital while also substantially widening our reach in ade-risked manner. Our ability to create a larger pipeline of opportunities for YourCompany and to convert these into revenues and profits in a faster and more productivemanner will be strategic priorities in the coming year.

We will continue leading the way in our core tenet of sustainable urbanisation throughstrategic relationships like the Mahindra-TERI Centre of Excellence for SustainableHabitats and a focus on innovative resource efficiency projects like the food waste tobio-fuel project at Mahindra World City Chennai.

I expect Your Company to continue do well in 2017-18. I would like to thank ourcustomers shareholders business partners and bankers for their continued support. Pleasealso join me in thanking all the associates of Your Company for the good work done and inwishing them the best for the year ahead.

With best regards

Yours sincerely

Arun Nanda

Chairman