While we are pleased with the year gone by the current year is sure to throw in newchallenges along with opportunities. Our resilience and agility will critically help usemerge stronger from this crisis.
Even as I write this the world is facing the brunt of the social distancing lockdownand economic disruption. The outbreak of Covid-19 has brought the world to an unthinkablecrossroad. These unprecedented times are not just changing the way we live our lives rightnow but also the future. I am hoping for your and your family's safety right now and inthe times to come.
On the economy front the sluggish global economy of 2019 rubbed off its effect inIndia along with the homegrown cyclical economic issues. The country's GDP growth sharplyskimmed down from 6.8% in FY19 to below 5% in FY20. The last quarter of the financial yearwas disrupted by the outbreak of Coronavirus pandemic. The complete lockdown as enforcedby the Government to contain the spread of the virusdragged down economic activitiesacross India in March 2020. This impacted our demand severely as we felt the recessionaryaftermath. With the extended lockdown significantly plaguing the overall growth in thenext fiscal across sectors the first quarter is expected to be gravely weighed down.There is also an anticipation of a gradual easing of the impact during the second quarter.However normalcy may not fully restore before the second half of 2020-21. We areanticipating recovery during this same period largely be driven by our presence andofferings in the affordability segment.
During the year under review total income on consolidated basis increased toRs.27733.11 lakhs from Rs. 26720.57 lakhs in the Previous Year. Total expenditureincreasedfrom19011.92lakhinthePrevious Year to Rs.32773.40 lakhs on consolidated basis.After providing for finance cost and depreciation the consolidated loss before tax stoodat Rs.13236.12 lakhs and loss after tax was Rs.11962.63 lakhs.
Highlights for the year
While we are pleased with the year gone by the current year is sure to throw in newchallenges along with opportunities. Our resilience and agility will critically help usemerge stronger from this crisis. FY21 is likely to be the first financial year in therecent times where India's GDP growth is anticipated to be negative. With the crisisleading to significant job cuts and salary reductions already it is sure to have demandramifications on high value purchases such as residential real estate. However ourbiggest strength lies in Affordable Housing Segment and with the current scenario we arehoping this to prove as a boon for the Company in the post-Covidworld. Additionallyvarious norms relating to redevelopment of existing societiesas declared by theauthorities are also expected to work in our favour.
As on March 31 2020 our group land bank stood at 27.83 mn sq. ft. (639.13 acres)
We hold around 60 acres of land near the Nirma University at Chharodi and Tragad. TheGovernment recently announced the preliminary town planning scheme no. 36 and 64 forChharodi Tragad and Tragad Land respectively.
In the new emerging market driven by the
Prime Minister's thrust on Housing for All we have pivoted towards the AffordableHousing Segment by foraying into the sector.
We have a strong belief in Ahmedabad's future especially the city's emerging areas. Weare planning to launch new residential projects that qualify under the Affordable HousingSegment as per the new guidelines. Given the city's potential and our belief in itsredevelopment prospects we are planning to tap the opportunities in Ahmedabad forassisting co-operative housing societies in redevelopment.
Navigating through Covid-19
We are facing this crisis with great strength a result of years of prudent andproactive management of the business. We lay our full focus on our business today and theyear ahead. Given the challenging external environment enveloping the global and Indianmarketswe foresee a change in customer preference and the trend towards rented housing.With the pandemic causing disruptions right from the grass root levels it is questioninga layman's ability to continue living in a rented house.
We anticipate a high demand for residential properties in the times to come as thesituation gradually returns to normal. Being rightly placed in the Affordable HousingSegment we expect to be benefitted from these supporting tailwinds.
The team at Ganesh Housing is truly exceptional and passionate about the opportunitieslying ahead. As a part of Ahmedabad's leading real estate developer our team is driven byour Company's commitment to excellence sustainability and diversity. I am grateful toeach of my team members for their exceptional commitment and ambition I would also like tothank our customers and business associates for their continued support. Finally we owea heartfelt thanks to our shareholders for their undying support and belief in GaneshHousing.
|Dipakkumar G. Patel |