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Karda Construction Ltd.

BSE: 541161 Sector: Infrastructure
NSE: KARDA ISIN Code: INE278R01018
BSE 00:00 | 10 Dec 168.20 -7.65
(-4.35%)
OPEN

174.00

HIGH

174.00

LOW

165.55

NSE 00:00 | 10 Dec 166.10 -8.55
(-4.90%)
OPEN

173.70

HIGH

173.70

LOW

165.25

OPEN 174.00
PREVIOUS CLOSE 175.85
VOLUME 1574
52-Week high 236.85
52-Week low 124.35
P/E 18.09
Mkt Cap.(Rs cr) 207
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 174.00
CLOSE 175.85
VOLUME 1574
52-Week high 236.85
52-Week low 124.35
P/E 18.09
Mkt Cap.(Rs cr) 207
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Karda Construction Ltd. (KARDA) - Chairman Speech

Company chairman speech

Dear Shareholders

On behalf of the Board of Directors of Karda Constructions Limited I am happy towelcome you to the 11th Annual General Meeting of your company. Thank you for yourcontinued support and goodwill that is crucial to the success of our company.

This being our first Annual General Meeting after the listing let me brief you aboutthe Karda Constructions Limited. We are a real estate company from Nasik. The groupstarted its real estate business in 1994 and since then in the journey of the last 25years we have proved ourselves as a prominent brand in the real estate in and aroundNasik. The company is primarily focused in the residential real estate which forms a majorchunk of our portfolio that is almost more than95%.

The strength of Karda Constructions Limited has been our geographical spread in Nasik.Our projects cover almost 70% of Nasik area. We are almost present across all segmentsthat is Capsule Homes Classic Homes and Crysta Homes and some commercial areas giving usa wide range of real estate to offer our customers.

The real estate industry has been feeing challenges due to changing environment be itthe implementation of RERA introduction of GST changes in DCR rules etc. These changesare expected to bring in positive changes to the industry in long term but the industry isyet to adjust itself to these changes. In spite of the challenges your company has beenable to deliver an excellent performance in the quarter gone by.

We have realised that the only way to overcome this challenging environment is to havea strong marketing and selling ability. We have carried out a lot of promotionalactivities at corporate offices in industrial areas and towns including presentationloan mela's real estate awareness programs etc. and this has started yielding goodresults. We already have the bookings for 75 units in the quarter ending June 2018 and weexpect the momentum to continue into nextquarter.

We have also launched a new project named as Hari Aakruti Phase-II at Bhabha Nagar inthe month of April 2018.

Our total revenue in the quarter has been Rs. 30.4 crore as against yearly sale of Rs.134.55 crore in the last financial year. Our profit EBITDA margin for the quarter has been31.21% against 28.89%. The PAT margin has increased from 9.67% to 13.88% of the revenue.

We have been able to reduce the financial cost for the quarter which is Rs. 4.04 croreas compared to Rs. 19.71 crore for the toll year in the last financial year. Our revenuefrom contracting segment for the quarter has been Rs. 3.11 crore which is approximately11% of the total revenue. In the way ahead we are expecting the sale to pick up in thecoming quarter with the festive events coming up like Ganesh Chatorthi Diwali Navaratriwhich generally generate good sales. Thank you.

I would also like to express that out of our total inventory we are going to construct40% affordable units. These units are getting the benefit of Pradhan Mantri Awas Yojanaand Income Tax 80-IB(10) schemes. So around 40-50% inventory is affordable and 20%inventory is in medium segment and around 10-15% is the premium segment. These are themarketing strategies and with this we are spread in different areas like all the locationof Nasik Nasik Road Deolali so we are getting the customers from all these area.Further Rs. 625 crore construction area is under construction. And the total sales yet tobe booked from this projects is Rs 300 crore. All the projects are at different level.Some projects are completed some are under construction and we have started some ofthem. We can say 60% units completion is done and it will take another 2-2.5 years tocomplete.

Our Largest project is Hari Sanskruti-I. It is the affordable project which is of about600 units 458000 square feet is the area of that project. We have almost recentlycompleted all our major projects. So hardly there will be 1-2 projects which are underconstruction WIP of which we have recognized revenue till 31st March 2018. Soapproximately 15-20 crore of the revenue will be reversed in this current financial year2019. We have already received the completion certificate for major of our projects.

Before I conclude I would also like to thank other stakeholders - our clients vendorsand partners - for their trust and support. I thank the governments ministries anddepartments of various countries and states that we operate in for their continuedsupport. And of course I look forward to your continued support and best wishes.

Thank you

With best wishes

SD/-

Naresh Karda

Chairman & Managing Director