Dear Fellow Shareholders
I am pleased to report that our Company has once again delivered strong results inFinancial Year (FY) 2018 - 19 despite a volatile external environment. This has beenaccomplished by timely delivery and excellent performance across all our projects.
India is projected to remain one of the fastest growing economies in the world due tofavourable demographics and inherent potential. Indian economy is projected to grow by7.0% in FY 2019-20 as against 6.8% in FY 2018- 19 The Indian real estate industry is oneof the major contributors and is expected to contribute 13% of the total GDP of thecountry by 2030.
Indian Real Estate industry has been struggling for about 7 years now due to variousreasons such as high land prices high lending rates liquidity crisis trust deficit ondevelopers and delay in getting approvals to name the few. The real estate sector outputhas weakened over the past few years despite the government's numerous policy changes andamendments to pull the sector out of a crisis. Absorption of new homes has declined at 5%CAGR over the last three years across key metros like Mumbai Delhi Bangalore etc. whilea marginal increase of around 5% to 7% has been witnessed in prices of residential sales.The onset of the Non-Banking Financial Company (NBFC) crisis in September 2018 worsenedthe situation and impacted the funding availability and cost for many real estatedevelopers. With access to funding becoming challenging and end-user demand remainingmuted developers have stayed away from launching new projects.
Our Company is a leading real estate developer in Lucknow the capital city of UttarPradesh. Lucknow is growing rapidly. Large numbers of construction activities have beenundertaken in the city including the deployment of metro network the Agra expressway andupgradation of the Airport. Additionally the employment-driven inward migration fromtowns of eastern UP is driving the demand for housing. Contrary to the weak housing demandin metro cities the housing sale in Lucknow grew by 19% in 2018 as compared to 2017 andit surpassed supply for the first time in the last six years. Being an establisheddeveloper our Company is well placed to participate in and contribute to the growth inLucknow residential market.
Our Company has always remained firm and focused on project delivery risk mitigationcustomer satisfaction and fiscal prudence. We have established a strong track record oftimely project delivery in Lucknow over the past several decades. Our brand stands fortrusted delivery which is a distinct advantage in these undertain times.
Our Company has projects in multiple formats including townships group housingprojects local shopping centres and office buildings. Eldeco City an integrated townshipspread across 133 acres is our flagship project currently. We have completed 80% of EldecoSaubhagyam a group housing project and 100% of Eldeco Samridhi which comprises of plotsand villas. Eldeco Elegante our commercial project has also received completioncertificate. We have recently launched Eldeco Luxa which is a part of Eldeco Eternia onSitapur Road. Within this year we hope to launch our new townhip project Eldeco Imperia.We have already received the approvals and site work is going to commence soon.
I am delighted to inform you that on Consolidated basis our Company has achievedrevenue growth of 54% EBITDA growth of 45% and Net Profit growth of 41% in FY 2018-19from 2017-18. Our Company has maintained a strong balance sheet by staying long term debtfree. Financial conservatism will be our stratagy in the coming times as well. Our Companyhas a consistent track record of paying dividend. For the year 2018-19 board of directorshas approved final dividend of 175% i.e.Rs 17.50 per share.
With our strong leadership position in Lucknow prudent financial management and timetested execution capabilities we are confident of achieving consistent results for theCompany in the coming years.
I would like to take this opportunity to thank all our stakeholders including ourvendors customers investors business associates and most of all our employees for thetrust and confidence they have shown in the Company over the years.
We look forward to your continued support in our effort to reach new milestones.
Chairman cum Managing Director