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Dhanuka Realty Ltd.

BSE: 538380 Sector: Infrastructure
NSE: DRL ISIN Code: INE704V01015
BSE 05:30 | 01 Jan Dhanuka Realty Ltd
NSE 05:30 | 01 Jan Dhanuka Realty Ltd

Dhanuka Realty Ltd. (DRL) - Chairman Speech

Company chairman speech

Letter to Shareholders

Dear Shareholders

It give me immense pleasure to communicate with you the 12th Annual report of the Company.

In the Financial year 2018-2019 your company completed its 12 successful years and this success would not have been possible without the unstinted support and cooperation of all stakeholders and our satisfied customers.

In Financial year 2018-2019 the wholly owned subsidiary of our company Triveni Kripa Buildhome Pvt Ltd continued fast track construction of its first commercial project Sunshine Bhagat at Main Sikar Road Jaipur. Construction progress on residential project Sunshine Aditya at Vaishali Nagar Extension locality of Jaipur was satisfying though sales from the project are slow and expected to pick pace only near the completion of the Project.

The affordable housing project Araddhya by another subsidiary Dhanuka Affordable Housing Private Limited now being reworked as per new local byelaws and amended income tax exemptions as announced in Budget for FY 2019-2020. The affordable housing project is expected to come under construction in progress category by the end of current financial year.

Financial Year ending March 2019 was very challenging for the sector as a whole and your company in specific. The Real estate sector has been bruised badly by burgeoning NBFC crisis declining sales volume declining prices per square feet increased finance cost due to heightened risk aversion by lending companies and overall downfall in sentiments around real estate industry.

With ever slowing economic growth no concrete reforms in real estate sector in reference to statutory approvals and controls ever changing GST rules and regulations regime further fall in customer and investor sentiments increased cost specially finance costs and no credible pick up in sales financial year 2020 is going to very tough and challenging for the company.

Hard earned experience of real estate sector of last 17 years well known reputed real estate brand name experienced hardworking and committed team expected fall in overhead costs due to various planned reduction in expenses it is expected that the challenges as mentioned above will be faced successfully by the company and it will be ready to again start growing and make profits once the working environment and overall economic growth improves.

The performance of the company in FY 2018-2019 turned negative with declining sales at both standalone and consolidated level. With lower sales increase in expenses and interest cost high fixed overhead costs increased cost of statutory compliance transition losses from earlier tax regime to GST and slump in margins company suffered high financial losses in current financial year as compared to profits in previous year. : 

 Our total revenue (Consolidated) for the year 2018-2019 is Rs. 163388777/- as compared to the previous year 2017-2018 of Rs. 244143235/-.

Our Loss before tax (Consolidated) for the year 2018-2019 is Rs. 15235399/- as compared to the previous year 2017-2018 Profit of Rs. 5069990/-.

Before I conclude I am thankful to all our Stakeholders our Bankers our Investors our vendors and most importantly our customers for their trust and faith and looking forward to your continued support and best wishes.

(Girish Chandra Dhanuka)