My Dear Fellow Shareowners
I am elated to reconnect with you at the end of this financial year. I would like tocongratulate our employees customers shareholders bankers investors and all ourassociates for working as a passionate and committed team in making Nimbus as emergingreal estate and infrastructure Development Company over the years.
The Indian real estate market is expected to touch US$ 180 billion by 2020. The housingsector alone contributes 5-6 per cent to the country's Gross Domestic Product (GDP).
In the period FY 08-20 the market size of this sector is expected to increase at aCompound Annual Growth Rate (CAGR) of 11.2 per cent. Retail hospitality and commercialreal estate are also growing significantly providing the much-needed infrastructure forIndia's growing needs.
India's real estate market is expected to reach US$ 180 billion by 2020 from US$ 93.8billion in 2014. Emergence of nuclear families rapid urbanisation and rising householdincome are likely to remain the key drivers for growth in all spheres of real estateincluding residential commercial and retail.
Real estate is currently the fourth-largest sector in the country in terms of ForeignDirect Investment (FDI) inflows. Total FDI in the construction development sector duringApril 2000-March 2016 stood at around US$ 24.07 billion.
The economy did show signs of revival in the financial year 2015-16 but the businessenvironment for industries across sectors remained challenging and the Real Estate Sectorwas no exception.
During the year your Company's revenue from operations is Rs. 840.54 Lakh compared toRs. 2123.79 Lakh in last year a decrease of 60.42%. Loss before tax is Rs. 484.35 Lakhcompared to Profit of Rs. 80.23 Lakh in last year a decrease of 703.70% over the lastyear. Loss after tax is Rs.496.34 Lakh compared to Profit of Rs. 15.37 Lakh in last yearregistering a decrease of 3329.28% over the last year.
All the above said decrease in profit before and after tax is due to loss inpartnership firm as all the projects developing in joint venture are under progress.Company will complete the same in next two year and as a result profit will be generatedand financial position & ratios will be improved.
Progress on projects
On the operational front we completed/offered possession of the Project The ExpressPark View Located at Sector CHI-V Greater Noida and started the possession of Project inJoint Venture "The Hyde Park". The another project in Joint Venture "TheGolden Palms" is also ready for possession.
Strategies for growth
Nimbus is a strong value driven organization that has worked towards creating lastingvalue for its stakeholders. To further strengthen the organization's overall performanceand create more value for our stakeholders we would be focusing on faster execution anddelivery of our ongoing projects.
Additionally to enhance operational efficiencies and to reduce debts we wouldcontinue to look out for monetization of our non- core assets. We are optimistic that thiswill help to reduce our financial burden and strengthen the balance sheet.
The real estate sector is highly influenced by the economic cycles; therefore therevival of the economy would have a cascading positive impact on the realty sector.Propelled by the NDA Government's growth-oriented strategy the economy as a whole isbeginning to show distinct signs of revival. Largely due to the deft handling ofmacro-economic issues and several positive sector-specific policy initiatives theindustrial outlook has improved overall. These reforms (actual and prospective) would beinstrumental for attracting foreign investment thereby easing the liquidity crunch andreviving the overall sentiment of the realty sector.
As far as the real estate and urban housing sector is concerned great expectationshave been aroused of a robust revival through the Prime Minister's announcement ofvisionary initiatives like 'Smart Cities' and 'Housing for All'. Unfortunately suchexpectations have not yet been realised and the sector continues to face a plethora ofchallenges including rising input costs high interest rates and sluggish demand.
Besides these much needed government initiatives the RBI would also play a pivotalrole in the revival of the real estate sector. It is expected that the RBI would reducerates in its monetary policy in order to release liquidity in the market thereby enablingbanks to lower their lending rates and thus encouraging the end users to own their dreamhomes.
Overall the long term outlook of the real estate sector looks positive and yourorganization having a rich experience in developing and delivering quality real estate andinfrastructure projects remains committed to build a better world.
On behalf of the Board I take this opportunity to thank all employees whose skillsand capabilities have been instrumental in our growth for their steadfast dedication andcommitment. I also wish to thank our shareholders bankers investors and associates fortheir sustained trust and support. As we embark on another fiscal I am hopeful aboutcommunicating robust results and new milestones while we execute coherent cohesivestrategies towards a higher growth trajectory.
| ||Warm Regards |
| ||Sincerely |
| ||(Bipin Agarwal) |
|Place : New Delhi ||Chairman cum Managing Director |
|Date : 12th August 2016 ||DIN: 00001276 |