We now have the momentum and the critical mass required to accelerate growth and valuecreation in the business.
It's my pleasure to share with you our annual review and highlight the key fundamentalsof our business plan that I believe will optimize the valuation of Prozone Intu PropertiesLtd. In the 10 years of our joint venture with our UK partner Intu Properties plc wehave carefully put in place a solid asset base and have timed our project launches to bealigned with the right market conditions.
The combined effects of three key policy initiatives namely RERA Demonetisation andthe introduction of GST has left a positive impression on the global community. India isnow better placed for efficient physical movement of goods and overall businesstransparency which will encourage further investment and fuel general businessdevelopment.
During the year we made significant progress across all our projects. The launch ofthe Coimbatore mall in July 2017 is a landmark and we have received impressive response toleasing of the retail space and are confident of its future operating performance. We nowhave the momentum and the critical mass required to accelerate growth and value creationin the business.
Our focus remains clearly on timely execution of the existing asset base. Moreover afavourable market backdrop is presenting additional opportunities for growth especiallyof our retail portfolio. I look forward to an exciting year ahead defined by monetizationof our remaining projects and additions to our asset base that will build an even strongerbusiness portfolio.
Strategy aligned with market conditions
Within the retail space the organised sector is increasing its market share andcontinues expansion at around 20% per annum fueled further by the high growth onlinemarket place. It is clear that omni channel retailing is the way forward and that qualityshopping malls will play a key role in the expansion plans of brands and retailers.
As a result demand for high quality organised retail space continues to exceed thesupply fuelled further by the in_ux of international players vying for market share inIndia due to its growing consumption story and strong demand for brands from youngerconsumers.
Against this scenario we will begin construction of our 3rd mall in Nagpur this year.We will also be examining select opportunities for inorganic growth in retail assetswhere our global experience can leverage value in cities such as Mumbai and other majormarkets.
Residential & Commercial
In the residential sector the introduction of the Real Estate Regulatory Act (RERA) isseen as an initiative that will increase confidence of home buyers and clear out a numberof marginal projects. Following the past few years of depressed demand delayed start-upsand squeezed prices in the residential sector when we were well funded and able to ridethe down cycle we are now poised to embrace a more confident market and ramp up executionphases of our projects.
We have aligned the Company with RERA are fully compliant and execution is geared upat our residential township projects in Coimbatore and Nagpur. We expect to see a muchstronger o_-take and financial performance in the coming year.
We will complete our commercial project in Aurangabad this year. Demand for completedcommercial spaces remains strong so we will also expect to initiate further opportunitiesfor office complexes on our existing land banks.
Global confidence in India continues to be high spurred by a pro growth Government withfavourable investment policy incentives. India's strong economic fundamentals over thelong term primarily rapid urbanization a high youth population driving consumption and asavings-driven economy are encouraging inward investments and the financial marketscontinue to surge.
We are therefore examining additional investment opportunities into the Company at thisin_ection point in our growth trajectory.
Our mall management experience not just in India but importantly from the more than35 years of global operational experience of our partner Intu Properties Limited isproving invaluable as we leverage efficiencies now that we have two malls open forbusiness.
Development is in full swing across the rest of our portfolio. The focus is on timelyexecution and cash flow management. We are now at the point where monetization of ourassets will begin to flow and I'm optimistic of delivering strong financial results in thecoming year.
In 2016-17 the Company achieved total consolidated operational revenue of Rs. 628million EBITDA of Rs. 297 million and PAT of Rs. 75 million. The overall growth was lowerthan expected owning to the short term impact of demonetization and general softening ofthe residential real estate market. The Company however maintained a healthy balancesheet with low leverage at Debt/Equity ratio of 0.45x on a consolidated basis.
The Future a year of additions
In the coming year we are expecting strong asset realisations and potential additionsand I feel we're well positioned for an exciting future. Our cautious approach to time ourdevelopments aligned to market conditions has put us in a position of strength and we arepoised to reap the benefits as we go forward.
My sincere thanks go to our Board and our strategic investors the Triangle Fund andthe Lewis Trust Group who share a common vision for the business and whose continuedsupport is greatly appreciated. I'm also proud of our employees throughout the company fortheir consistent teamwork to achieve our goals.