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Man Infraconstruction Ltd.

BSE: 533169 Sector: Infrastructure
NSE: MANINFRA ISIN Code: INE949H01023
BSE 00:00 | 28 Jan 30.15 -0.45
(-1.47%)
OPEN

32.00

HIGH

32.00

LOW

30.00

NSE 00:00 | 28 Jan 30.30 -0.40
(-1.30%)
OPEN

30.65

HIGH

31.25

LOW

30.25

OPEN 32.00
PREVIOUS CLOSE 30.60
VOLUME 18389
52-Week high 41.85
52-Week low 18.00
P/E 12.11
Mkt Cap.(Rs cr) 746
Buy Price 30.10
Buy Qty 1000.00
Sell Price 30.80
Sell Qty 50.00
OPEN 32.00
CLOSE 30.60
VOLUME 18389
52-Week high 41.85
52-Week low 18.00
P/E 12.11
Mkt Cap.(Rs cr) 746
Buy Price 30.10
Buy Qty 1000.00
Sell Price 30.80
Sell Qty 50.00

Man Infraconstruction Ltd. (MANINFRA) - Chairman Speech

Company chairman speech

Industry Scenario:

The Indian realty sector has undergone a huge transformation over past few years as theGovernment introduced several regulatory reforms. The Interim Budget presented in February2019 addressed several long-standing issues of the real estate sector. The Government'sproposal to extend the period of exemption from levy of tax on notional rent on unsoldinventory from one year to two years will give a much-needed relief to the developers. Thebudget gives more disposable income in the hands of the buyer while also providing taxincentives for investing in a second home. The RBI recently lowered the benchmark lendingrate by 25 basis point second time in a row to 6% the lowest level in one year. The ratecut augurs well for the Indian real estate industry as it boosts the sentiments of enduser. In February 2019 the GST Council reduced the GST rates on under-construction flatsto 5% on non-affordable and 1% on affordable homes without input tax credit. Thesemeasures are likely to give a timely boost to home sales especially in the affordablehousing segment.

The Government in its sustained efforts has been pushing uniformity and transparency inthe real estate sector through reforms such as GST and RERA. While these reforms havehelped boost homebuyer sentiment they have changed the business of real estate for thedeveloper permanently. The industry was beginning to stabilize gradually accepting the newnorms when the liquidity crisis that stirred NBFCs (non-banking finance companies) andHFCs (housing finance companies) led to difficulties in accessing capital from lendersbreaking the back of the sector. Banks have become increasingly cautious of lending todevelopers in backdrop of rising NPAs and delay in completion of real estate projectsfurther adding to the woes of the developer. Amidst the crisis India witnessed thesuccessful listing of its first Real Estate Investment Trust (REIT) by Blackstone andEmbassy in March 2019 marking the opening of a fresh investment avenue for the realestate sector. The year 2020 is expected to bring a marked increase in Private Equityfunding to the sector.

The Government has been focusing on development of infrastructure to drive strongsustainable economic growth. For the financial year 2019-20 Rs.4.56 lakh crore has beenallocated under the Interim Union Budget for the infrastructure sector which includesroadways railways shipping and aviation. Government initiatives like Housing for allSmart Cities etc. are fuelling the growth for urban infrastructure and constructiondevelopment. Construction companies with proven execution capabilities are likely tobenefit from sustained Government initiatives and large investments in the infra structuresector.

Business Operations:

The Company reported total income of Rs. 402.78 crore for the year ended 31st March2019. The consolidated Profit after tax stood at Rs. 41.79 crore for FY2018-19. Executionof port infrastructure works at Nhava Sheva for development of the 4th container terminal- Phase 1 at Jawaharlal Nehru Port (JNPT) Navi Mumbai was successfully completed in July2018. Your Company executed Rs. 850 crore worth value of work in a tight schedule of 25months. As on March 31 2019 the Company has a balance EPC order book of Rs. 636 crore.We will increasingly look for opportunities to strengthen our EPC order book by takingprojects that align with our growth strategies.

During the year we successfully completed construction and received OccupationCertificate for 'Atmosphere' project in Mulund Mumbai. Our focus on quality and timelyexecution of projects has helped us in enhancing our goodwill as a Developer. I am happyto share that despite challenging environment over the past year our project 'AaradhyaHighPark1 launched in October 2018 near Dahisar Thane received anoverwhelming response with 50% inventory being booked at launch. All our ongoing projectsare moving at a steady pace making us confident about the timely delivery of theprojects.

This year your Company is planning to launch a large-size Residential project inGhatkopar East Mumbai where a cluster of 14 MHADA Societies will be redeveloped Theproject is being designed by eminent architect Hafeez Contractor and will havestate-of-the-art amenities for the recreation of the residents. We expect to get a goodresponse for this project as there are very few residential layouts with such amenities inthe vicinity.

Way forward:

As we move forward our aim will be to monetize our real estate projects in a way thatwill maximize value for the shareholders and stakeholders. With existing liquidity in handand financial tie-ups your Company is well positioned to cater to the constructionfinance requirements of a 11 the ongoing projects. Your Company wi 11 continue to explorenew growth opportunities within the real estate business with a cautious approach. Whilethe industry continues to be weighed down by low absorption rates and excess inventorybusiness is gradually improving. Accelerated by the Government measures and other pivotalfactors we expect Indian real estate sector to progress with increasing demand in theyear 2019-20.

Asa Company we a re committed to maintain quality ensure timely completion ofprojects and focus on customer satisfaction. Our vision is to create spaces that setbenchmarks for the industry. With various projects under execution and the real estatesector showing signs of recovery we believe that your Company holds a bright future.

As always I would like to thank you for your continuing confidence and support. Ithank ail the employees for their sustained endeavours in meeting the challenges posedbefore the organization. I would also like to extend my sincere gratitude to ail thestakeholders including customers vendors partners banks and Government institutions fortheir consistent cooperation and support.

Warm Regards

ParagShah