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Parsvnath Developers Ltd.

BSE: 532780 Sector: Infrastructure
NSE: PARSVNATH ISIN Code: INE561H01026
BSE LIVE 15:40 | 20 Sep 22.60 0.85
(3.91%)
OPEN

22.00

HIGH

22.80

LOW

21.20

NSE 15:56 | 20 Sep 23.00 0.95
(4.31%)
OPEN

21.50

HIGH

23.15

LOW

21.35

OPEN 22.00
PREVIOUS CLOSE 21.75
VOLUME 42040
52-Week high 25.94
52-Week low 10.90
P/E
Mkt Cap.(Rs cr) 984
Buy Price 22.80
Buy Qty 99430.00
Sell Price 0.00
Sell Qty 0.00
OPEN 22.00
CLOSE 21.75
VOLUME 42040
52-Week high 25.94
52-Week low 10.90
P/E
Mkt Cap.(Rs cr) 984
Buy Price 22.80
Buy Qty 99430.00
Sell Price 0.00
Sell Qty 0.00

Parsvnath Developers Ltd. (PARSVNATH) - Chairman Speech

Company chairman speech

From

The Chairman's Desk

The financial year 2015-16 was a rebuilding year for the Indian economy when it becameone of the fastest growing world economies with a GDP growth rate of 7.5%. Variouslegislative and policy reforms initiated by the Government and the central bank during theyear led to this very positive trend. The real estate sector however continued to facechallenging times. Most of the real estate players in the country were directly affectedby the sluggish fund availability. The commercial real estate sector across the countrydid witness an uptick in office absorption space but the demand for residential realestate continued to be subdued across all the major markets owing to delayed constructionand stalled projects.

Company's performance

During the year under review our consolidated revenues declined by 48% to `396.16crore as compared to `762.52 crore in the previous year. During FY 2015-16 we incurred anet loss of `48.35 crore as against net loss of `112.68 crore in the previous year. On theoperational front during FY 2015-16 'Focus on Execution of projects' has been the mainstrategy hence the Company did not aggressively launch any new projects except for Floorsin Parsvnath Aakanksha within the integrated township Parsvnath City Jodhpur. We offeredpossession of 1190 units across the residential commercial retail and integratedtownship segments comprising of 2.73 mn. sq. ft. of space.

Growth strategy

The real estate sector has been facing difficult times since the past few years becauseof issues ranging from delay in completion of projects fund crunch declining sales andhigh inventory pile up drop in new project launches and resultant delay in handing overpossession. The factors put together led to a lack of trust and confidence in customerstowards real estate. The biggest challenge of the industry is to regain the lost faith andwin the trust of the consumers. Keeping this in mind we at Parsvnath have identified"execution of the projects" as the strategy for our growth. Our strategy forgrowth is to focus on timely execution of on-going projects and handing over possession toour esteemed customers in order to win back their trust and lay down the foundation of amore mature market. During the year 2015-16 we had set a target of offering the possessionof 1200 units and we have successfully achieved the same. Looking forward we areconfident about our future growth and we will focus strongly on our execution capabilityto deliver more than double of what we have delivered in FY 2015-16. With faster deliveryof projects we are optimistic that our reliance on debt will reduce which in turn willhelp us to improve our liquidity to develop and launch more new projects.

Outlook

One of the biggest developments in the real estate sector during the year was thepassage of the Real Estate (Regulation and Development) Act 2016 (RERA) with the focusto streamline the operations of real estate companies by bringing in better governancetransparency discipline and professionalism. We strongly believe that this will safeguardthe interests of customers as well as investors and help them regain their lost trust onbuilders.

Looking ahead the outlook for the real estate sector looks very optimistic with theGovernment's renewed focus and thrust on the housing sector through several initiativessuch as the Smart Cities mission Atal Mission for Rejuvenation and Urban Transformation(AMRUT) Housing for All development of 100 Smart Cities relaxation of Foreign DirectInvestment policy and tax benefits on small housing units among other things. Furtherthe favorable interest rate cuts by the Reserve Bank of India and the implementation ofthe much anticipated Seventh Pay Commission could result in an improvement of demand forreal estate which in turn could bring down unsold inventories and trigger recovery of thesector. Further we anticipate that the implementation of the Goods and Services Tax (GST)will help customers as well as developers in avoiding payment of multiple taxes andminimize the tax impact. All these factors have infused renewed positive sentiment in themarket and will ultimately result in boosting demand for residential properties.

Overall the outlook for the real estate sector looks positive and with theorganization's successful track record of 26 years in executing and delivering qualityreal estate and infrastructure projects we are confident about our future growthtrajectory.

In conclusion

On behalf of the Board I would like to take this opportunity to thank all ouremployees whose skills and capabilities have been instrumental for our growth for theircontinuous dedication and commitment. Also I would like to thank all our shareholdersfinancial institutions bankers investors esteemed customers and associates for theircontinued trust and support. As we embark on another fiscal I look forward tocommunicating our results and accomplishments as we execute our coherent and cohesivestrategies towards a higher growth trajectory.

Warm regards

Sincerely

Pradeep Jain

Chairman