Omaxe's gross debt reduced by 42 pc in 5 years since FY10

Realty firm Omaxe today said its debt has reduced by nearly 42 per cent in FY'14 compared to the 2009-10 levels on the back of continuous construction, delivery and new launches.
The company's gross debt which stood at Rs 1,814 crore in FY'10 reduced to Rs 1,049 crore in FY14, registering a decline of nearly 42 per cent, a company release said.
"Despite a slow economy and high interest-rate regime, many companies have of late struggled with huge debt levels. But Omaxe has seen consistent reduction in its debt on account of increased cash flows as a result of continuous construction, delivery and new launches," its chief executive officer Mohit Goel said.

He said the increased cash flow was also on the account of the right product mix that caters to the demand of specific cities, propelling the company's desirability among end-users.
"Catering to such needs have helped us create a bouquet of products that is both taste and income specific. From plots to floors, villas and group housing offerings such as these have helped Omaxe maintain an edge over peers and generate internal accruals," Goel said.
In the last 5 years, the company has seen its debt-equity ratio coming down by close to 60 per cent from 1.15 in FY'10 to 0.48 in FY'14.

The networth of the company grew by 38 per cent from 2009-10 level of Rs 1,582 crore to Rs 2,179 crore as on March 31, 2014.
The company's strategic move to diversify into these markets has seen presence increase to 30 cities across nine states that are substantially end-user driven and contribute to consistent cash flows, he said.
"Low margin but end user driven markets like Bahadurgarh, Rohtak, Vrindavan, Faridabad, Bhiwadi, New Chandigarh, Ludhiana and Jaipur have been driving the sales over the past few years," Goel added.