I am delighted to present the Annual Report for the year 2016-17 - a year that willsurely stand out as one of the more eventful years in recent times. The events thatdominated headlines during the year happened on the global stage as well as in India.Globally the UK's decision to exit the EU popularly referred to as BREXIT as well asthe election of the Republican candidate as the President of the United States of Americacreated ripples whose effect will be felt for years to come in the socio-economic andgeo-political spaces. In India the unexpected move by the government to demonetisecurrency by banning ' 500 and ' 1000 notes sent shockwaves affecting every industry andevery sector.
However in a bold move forward the government successfully passed the Goods andServices Tax (GST) Bill in the Parliament. GST is the single-most important tax reform inthe history of the country and is widely expected to level the playing field by creatinga one-nation one-tax unified market. Of course there are the initial teething problemsbut in the long-run I believe it will be a catalyst in unlocking the true potential ofthe country.
While these are macro events the real-estate also witnessed two key events that willhave a far-reaching impact on the industry. The Real Estate Regulation Act (RERA) and thepositive changes in Real Estate Investment Trust (REIT) rules both augur well for theindustry.
RERA proposes to usher in a new era of transparency and accountability outliningdeliverables for the developers and promoters. Also it lays down strict framework ofrules to protect the interest of the buyers including a clear structure of penalty incase of delays or non-compliance of any form on part of the developer. RERA approvals fromthe state RERA authorities is made compulsory ensuring a massive shift in protection infavour of the buyers. The positive effects of RERA are already quite visible with buyersnow experiencing a boost in confidence which in turn is expected to translate intohigher demand in the coming years.
With changes in the REIT rules financing in real-estate projects has been made easier.The lowering of minimum project-size is
The Company owns 9 Theatres all of which are leased on a long-term basis to PVRCinemas. This ensures an assured and uninterrupted cash-flow in the form of rental incomefor the Company.
also expected to attract more international funds to invest in the real-estate space inIndia.
It is against this backdrop that I would now like to update you about the financialperformance of the Company:
Total Revenues for the year was ' 3310.74 lacs compared to ' 3134.12 lacs anincrease of 5.64%
EBITDA for the year stood at ' 2580.87 lacs against ' 2375.73 lacs up by8.63%
Rental income for the year was ' 1846.74 lacs against ' 1817.46 lacs risingby 1.61%
What underpins this CONFIDENT PERFORMANCE of the Company is its real-estate assets andits long-term strategy. The Company owns 9 Theatres all of which are leased on along-term basis to PVR Cinemas. This ensures an assured and uninterrupted cash-flow in theform of rental income for the Company. In addition the Company also owns Eternity Mall atNagpur. It is one of the most successful retail destination in Nagpur due to its locationas well as its well-thought tenant mix. The mall has 100% occupancy with some of theleading national and international brands present in the mall. The Company has alsoinvested in the commercial property - Kanakia Wall Street in Andheri Mumbai. We continuewith our renewable energy business with two windmills at Viswada in Gujarat and Revangaonin Maharashtra. The total capacity of these two windmills is 2.2 MWA.
While the Company remains CONFIDENT ABOUT PERFORMANCE what excites us today is themassive
opportunity set to unfold on the horizon. As India powers ahead as the fastest growingmajor economy in the world and with a determined focus of the government on key sectorslike manufacture infrastructure and housing we firmly believe that the future holdsimmense prospects for growth and it is this opportunity on the horizon that is making usCONFIDENT ABOUT PROSPECTS. I remain positive and confident about the outlook for theCompany.
I thank you for your sustained trust and faith in the Company and assure you we willcontinue to focus on creating long-term value for all our stakeholders.
(DIN : 00015857)