It has been yet another challenging year for the real estate sector in India with fewsigns of revival in demand particularly for the residential property which is themainstay of most developers. This extended phase of slowdown is a cause for concern notjust for those directly associated with the sector but for the wider economy given thestrong multiple linkages that the sector has with various other sectors of the economy. Inmy view joint efforts of both the industry and the government are required to revive thesector. On the one hand industry should work towards increased transparency and improvedproject execution and timely delivery while on the other hand the government mustfacilitate flow of funds to the sector and further streamline approval and sanctionprocesses.
Indian economy has registered 7.6% growth during the last financial year and thisgrowth is expected to further accelerate in the coming years with various measures beingtaken by the government to boost the economy. RBI has also been gradually reducing theinterest rates. Though these positive macro economic developments are yet to percolate tothe real estate sector I am quite sanguine about the prospects for the sector given thefact that the basic drivers of demand for property viz. existing housing shortageincreasing urbanisation more nuclear families aspirational society are all intact.
Enactment of Real Estate Regulatory Act (RERA) is a significant milestone in thetransformational journey of the Indian real estate sector. Once the necessary regulatoryframework is set up as per the Act and it takes full effect it will bring aboutfundamental changes in the real estate sector ushering in a much higher degree oftransparency and creating a favourable environment for developers buyers and investorsto operate in the coming years.
During the year your Companys principal focus was on scaling up constructionactivity at the project sites and thereby speeding up the delivery of finished product.Accordingly all its actions were directed towards this objective. These actions resultedin an increase in delivery volume during the year to 3.99 million sq.ft. as against 3.16million sq.ft. during the previous year. However much more needs to be done given thelarge delivery backlog. Company is continuously engaging with all the concerned partiesviz. customer groups banks local authorities contractors etc. to put in placemechanisms to ensure unhindered progress of projects and reassure them of its commitmentto delivery. As I mentioned earlier ongoing projects of the company have the potential togenerate more cash flows than required for completion of those projects. I am confidentthat the overall liquidity situation of the Company will also improve soon with variousother measures that the Company has been taking expected to start yielding positiveresults.
Your Company takes pride in being a responsible corporate citizen and continuouslycontributes to various activities involving labour welfare safety environmentalprotection education etc.
I sincerely thank all stakeholders for continuing to repose their faith and trust inthe Company.