The dynamism infused by various Government schemes into the Real Estate sectorparticularly affordable housing has catalysed new possibilities for enabling growth inthe residential segment which is seeing a massive surge in demand at the back ofincreased urbanisation and rising household incomes. India stands tall today among the top10 price appreciating housing markets internationally.
With the intensive push by the Government in the affordable housing segment I see newpossibilities emerging for translating the dream of home ownership for millions ofhomeless people. The recent budget announcement by the Government to set up a dedicatedaffordable housing fund out of fully serviced government bonds will help in bridging thefunding gap to give a further boost to construction activities in this niche segment.
The Commercial segment is also looking up with the growth in the Indian economydriving demand for commercial and retail space. Mumbai and Bengaluru both geographies inwhich your Company has extensive presence have been rated as a top real estate investmentdestination in Asia.
Further the implementation of RERA has triggered the much-needed consolidation in thesector auguring well for organised and reputed players like Capacit'e which has amarquee client base to lead its growth and expansion. The GST impact is also expected toturn positive for the sector from the next financial year giving additional impetus toour growth plans.
On the right track
That we are on the right track to capitalise on the opportunities unfolding in thisscenario is evident from the recent order wins from clients underlining the trust theyrepose in Brand Capacit'e which is distinguished by high standards of quality and timelydelivery of projects.
With an order book of Rs 5682 crore as on March 312018 your Company remains at theforefront of the transformation of India's vision in this sector into a tangible reality.Increased order size coupled with several repeat orders secured during the yeardemonstrate the credibility established by your Company within such a short span.
Currently we have 57 ongoing projects which we have strategically aligned to theopportunities unfolding in the residential sector which contributes 85% to our orderbook as well as commercial and institutional buildings in which we have an order bookshare of 15%. The opportunity matrix in these segments is expanding at a phenomenal rateand we are effectively poised to leverage it at the back of our operational efficienciesand execution excellence.
The recent upgradation of our long-term Credit Rating from IND A-' to INDA' with a stable outlook endorses the inherent strengths and stability of theorganisation which we shall continue to augment with our concentrated focus andtechnology-led approach to building construction.
Numbers underline excellence
The success of our strategy is also clearly manifest in our financial performance. Weexpect our continued focus on a strong balance sheet and operational cash flows alongwith our thrust on strengthening our technological edge to enable our sustained healthygrowth in the coming years.
The growth momentum as I can see is extremely strong and as a technology-ledspecialisation focussed construction Company Capacit'e is ideally positioned to capturethis growth across the segments and regions of its presence.
Our efforts going forward shall be aligned to improving efficiency. It shall also beour endeavour to enhance working capital efficiency and improved core assets turnoverratio.
While we shall continue to bid for projects in the Factory and Building (F&B)segment with private players we shall also explore opportunity in the institutional andhousing segments by bidding for certain specific government projects. We intend to retainour focus on building construction in order to sustain profitable growth. We believe thisfocus will enable us to utilise advanced technologies including system formworks andinformation technology-based tools to increase
productivity and maximise asset utilisation in our construction activities. This inturn will allow lb to continue to grow our Order Book and improve our asset turnoverratio.
In line with our strategic approach we will also continue to invest in Core Assetsmanpower resources process strengthening and training to improve our ability to executeour projects with quality and efficiency while at the same time strengthen our abilityto bid for new projects.
From where we stand today I see the future beckoning us with exciting potentialitiesand possibilities for exceptional growth. I am confident that with the continued trustand support of all our stakeholders we shall continue to leverage these opportunities todeliver growth and value year on year.
Rahul R. Katyal