As we enter a new financial year we are grateful for the unwaveringtrust bestowed upon us. The FY 2017-18 marked successful completion of 31 years for theCompany and 50 golden years for the entire Ajmera Group. From a humble beginning 50 yearsago to an exciting juncture today the Ajmera Group stands strong mapped by severalsuccess milestones. Today the Group is strategically placed to scale the next level ofgrowth. Economic scenario
The Indian economy remains largely encouraging with GDP of 6.7% duringthe year. It is steadily heading towards the path of macro-economic stability aswitnessed by controlled inflation and lowered fiscal deficit. The real estate sectorwitnessed two major reforms come into force - the Real Estate Regulatory Authority (RERA)and the Goods and Services Tax (GST) - which we believe are important steps towards makingthe economy more organised and consolidated.
Growing with India: Various
The real estate industry being the second largest employer after theagriculture there are several reforms planned by the Government to increase investment inthis sector. This is the right time for the organised developers to capitalise on theopportunities and lead the industry.
RERA Act implementation will protect the interests of home buyers andalso boost transparency in the real estate sector. Besides there has been a rise in jointventures between unorganised builders and tier-1 developers to manage risk and improvereturns. Not to forget the landmark GST implementation has further improved logisticssupply chain efficiencies availability of input credit thereby decreasing the projectcost.
The Pradhan Mantri Awas Yojana (PMAY) has recently expanded its scopeto cater to the
Housing needs of the Mid-Income Group (MIG) along with EconomicallyWeaker Sections (EWS) and Low-Income Group (LIG). MIG has been classified into MIG-Ihaving household income from Rs.6 Lakhs to 12 Lakhs and MIG-II having household incomefrom Rs.12 Lakhs to Rs.18 Lakhs with an additional increase in the carpet area ofaffordable units from 120 sq.mt to 160 sq.mt and from 150 sq.mt to 200 sq.mt for MIG-I andMIG-II respectively. The Pradhan Mantri Rojgar Yojana (PMRY) further aims at providinghigher employment opportunities to the unemployed youth of the country. This scheme willlead to a rise in the disposable income and the demand for low cost housing. The Interestrate Subvention Scheme will result in easy payment options for buyers enhanced customerbase for banks and steady flow of fund for developers. This will subsequently boost thedemand for housing.
Towards a steady growth
The Company reported strong numbers in FY 2017-18. The revenueincreased 13.71% from Rs 26575.56 Lakhs in FY 2016-17 to Rs 30221.21 Lakhs in FY2017-18. Also the EBIDTA grew 20.66% from Rs 11334.16 Lakhs in FY 2016-17 to Rs13676.17 Lakhs in FY 2017- 18 and PAT increased 23.62% from Rs 6153.67 Lakhs in FY2016-17 to Rs 7607.12 Lakhs in FY 2017-18. Further we have tried to maintain a balancebetween high-end and affordable housing by offering superior quality on time delivery andbetter living experience. The total saleable area till date is approx. 34.39 Lakhs sq.ft.In Mumbai Bengaluru and Ahmedabad projects.
Our landmark residential projects - Aeon Zeon and Treon in Ajmerai-Land Bhakti Park spell style luxury and power. Ajmera Stone Park at Bengaluru alongwith Ajmera Enigma and Casa Vyoma at Ahmedabad are undeniably phenomenal ref i ecting ourskills in recognising the underlying potential of the location. We also plan to construct14 complex houses at Kingston London by collaborating with local developers. We havealso marked an entry into Bahrain where the projects will be launched soon.
Leveraging on the opportunity frontiers
Consider this fact: the real estate market is estimated to be at US$180 Bln in size by FY 2019-20. This translates into a huge opportunity as we are makingsignificant investments to prepare ourselves to grab a larger portion of the opportunitypie. At the same time we aim to construct affordable houses as a part of the Governmentof India's Housing for All'.mission by 2022.
We have a vision to create benchmarks that are aspirational and in tunewith the evolving needs of the market. We are looking ahead to enter into hi-end mid-endand low-cost housing segments across all the Mumbai Metropolitan Region DevelopmentAuthority (MMRDA) region in the coming years. Also we are enthusiastic to broaden ourhorizons by expanding in the high potential commercial space. We are focused on fixedincome segment which is insulated from the cyclical nature of the real estate industry. Weaim to provide a blend of residential rental commercial assets in Bhakti Park Kanjurmargand Bengaluru. We continuously strive to contribute to the communities around us andprovide them a better quality of life. The Company has taken initiatives through AjmeraShiksha Yojana Ajmera selfdevelopment Programme and Ajmera Swaastha Yojana.
We believe in creating a nurturing environment for the employees andtheir families through health aids. On the occasion of 50th year celebration of the Groupwe have declared corporate benefits by sponsoring education for our employee'schildren.
On this note I would like to thank everyone for continued faith andsupport in our organisation. This enables us to excel in our performance therebyencouraging us to grow in the future.
|Rajnikant S. Ajmera |
|Chairman and Managing Director |