A New Sharholder's
Growth opportunities are like sunrises; if you wait too long you missthem.
But the silver lining is that there's always another onecoming.
I hope you and your family are doing well given the times and thecircumstances.
We will always remember 2020 as a year that made the word"unprecedented" a part of our daily dialogue. While the COVID-19 pandemictested and continues to test the limits of human endurance it also underlines the greatpower of human resilience. Communities that we serve and are part of continue to be hithard and recovery is going to be a slow process.
The spread of the virus and the resultant lockdown in March 2020disrupted economic activities and led to the GDP contracting in the first half of 2020.
While the real estate industry started to show signs of recovery in thesecond half of FY21 the pandemic hastened certain trends and transformed certain businesspractices and outlooks. Investor sentiments remain strong even in this environment withfinancial institutions on the lookout for opportunistic deals and income-yielding assets.The signs of rising demand in residential markets returned in the last two quarters ofFY2021 and have given renewed hope and anticipation for the next financial year.
FY2021 was the year that disrupted our real estate industry in manyways. However FY2022 could be the year where we shift to a new normal and use the toolsof survival to move towards unprecedented success in our business. Cities like Bengaluruproved to be resilient in times of adversity while our financial capital Mumbai was hithard especially with regard to residential and commercial office spaces with signs ofrevival towards the end of FY21. The Maharashtra State Government's announcement of areduction in stamp duty and concession in regulatory premiums was a strong move thatgreatly helped the city developers. Mumbai has moved towards consolidation over the pastfew years fast-tracked to an extent by the pandemic. Positive trends in the residentialand commercial spaces have given city developers hope of a better FY22.
As I present to you Ajmera Realty & Infra India Limited's AnnualReport 2020-21 let us appreciate that the year 2020 -2021 is not a year that can bereduced to a bottom-line. It deserves to be remembered as a year when we demonstrated ourstrength and commitment to stand together as one team and deliver on our promises to thebest of our abilities.
Given the global economic down-surge investors and customers havebecome wary of participating in real estate ventures but our legacy and reputationcontinues to make the Ajmera name a preferred choice. During 2021 we saw an 80% increasein sales value from Rs.339 Crs. in FY20 to Rs. 615 Crs."in FY21. 380 units sold inFY21 also indicates a 50% growth over the previous year. This was coupled with a growth insales advances by 35% (Rs. 521 Crs. received) if we are to make a year-on-year comparison.We de-leveraged significantly through the repayment of Rs. 200 Crs. on our constructionloans for the projects and now with a leaner leverage position we can seize growthpropositions likely to come our way due to the consolidation mode prevalent in the market.
Our ongoing projects are at different levels of completion and continueto be on schedule. Even the newly added projects - Ajmera Greenfinity Sikova and NucleusTower C with an estimated sales potential of Rs. 500 Crs. have already clocked a robustsale of Rs. 90 Crs (approx.) since their launches. In launching Ajmera Greenfinity wewere able to cater to a demand for 1 & 2 BHK homes in the mid segment housing whilewith our commercial project Ajmera Sikova we look to meet the demand from individualprofessionals and smaller businesses. Ajmera Sikova Ghatkopar is a mere 10 min walk fromthe railway station and is accessible by all modes of transport in Mumbai. In Bangalorethe newly launched Ajmera Nucleus Tower C which is part of a larger 5.5 acre layout isstrategically located close to key business districts and is well connected to other majorparts of the city.
With an aim to sustain business growth I am delighted to report thatour company has adopted several technological interventions during the lockdown. Ourthrust on lOT in some of our current flagship projects opens up stronger possibilities todeploy cutting-edge technology in our projects going forward. This has also given us anedge in creating effective digital engagement models in areas including CRM ERP &BIM. Our digital communication infrastructure already in place before the lockdown hasbeen aggressively adopted to seamlessly communicate with our existing and potentialcustomers. Our ever-strengthening influencer relations on social media channels continueto support this process.
In a strategic milestone move we completed the de-merger of anundertaking into our wholly owned subsidiary company 'Radha Raman Dev Ventures PrivateLimited' to unlock 6.5 acres of land for a potential commercial t project at Wadala. Thede-merger enables us to focus on acquiring strategic investments and partnerships to helpthe company realize the full value of this project for which we are currently awaiting theNCLT approval.
Given the strong liquidity that our company enjoys the growth strategyfor the future will be focused on optimizing our existing revenue drivers and moving ourcurrently owned land parcels into development. We are also exploring a number of inorganicgrowth avenues by acquiring projects through JV/JDA/DM models with an asset-light quickturnaround approach.
The challenges of the fiscal year 2020-2021 have further augmented therobustness of our business model and has reinforced our confidence to leverageopportunities arising from favourable macro-economic landscapes sustainable demand foraffordable housing and policy initiatives.
As we look forward to a brighter future I would like to acknowledgethose who have stood unwavered in their commitment to the company. All our employeesworked as a team to rise up to every challenge and embody the true spirit of 'evolvingwith the times'. I also express my heartfelt gratitude to our Board of Directors bankerspartners & associates and customers for their steadfast support during this time ofadversity.
I look forward to a future where a new sunrise will illuminate newerrealms of growth better opportunities and prosperity for all.
|Warm regards. |
|Rajnikant S. Ajmera |
|Chairman & Managing Director |