D ear Shareholders
I warmly welcome you to the 34th Annual General Meeting of your Companywhich is being held virtually as necessitated by todays circumstances.The world has been witnessing an unprecedented crisis for over a year-and- a-half nowwhich has severely impacted our health our economic condition and our very way of life. Ido hope all of you are exercising adequate care at your end and diligently following allCOVID protocols.
Operational Performance Review
The Second Wave of COVID-19 was particularly severe on our countryincluding your company. All our employees shareholders and stakeholders bore the bruntresulting in a rather sedate performance in Financial Year 2020-21:
Revenue from operations standalone basis decreased to 3132.25 Lakhs as againstRs. 9690.81 Lakhs in the previous year-a decline of 67.68%.
Cost of goods sold as a percentage to revenue from operations Increased to 14%as against 12.53% decrease in the previous year.
Employee cost as percentage to revenue from operations increased to 5.27% (Rs.165.05 Lakhs) as against 3.00% in the previous year (Rs. 291.18 Lakhs). The employee costincrease as a percentage has resulted mainly on account of drop in the total revenue inspite of the fact the employee cost has come down in absolute terms from Rs.291.18 Lakhsduring 201920 to Rs.165.05 Lakhs during 2020-21.
The Profit/(Loss) after Tax for the current year is (Rs.763.94) Lakhs as againstRs. 12.90 Lakhs in the previous year. The decrease in profit is mainly due to decrease inSales and Other income (Interest and other Income) to the extent of Rs. 6674.02 Lakhs andalso due to increase in Finance cost to the extent of Rs.466.84 Lakhs.
On a consolidated basis the Company its subsidiaries and associate Companiesachieved operating revenue of Rs. 6354.65 Lakhs as against Rs. 23497.02 Lakhs - a declineof 72.96%.
By derailing the positive momentum of our core sector in the beginning of FY 2020-21the Second Wave has given a challenging start to our operations in FY 2021-22as well. We have proactively put out a crisis management plan - at bothBusiness and Corporate levels - to deal with the new risks triggered in our businessoperations. We have also put in place stringent safety protocols for the wellbeing of ouremployees and set up teams to ensure adequate risk-mitigation measures at every stage.Protective equipment is provided to everyone supplemented with suitable training andcommunication at workplaces. Where feasible work from home option is alsogiven. We are cautiously optimistic that the worst is behind us now and the way forwardwill be encouraging.
I am happy to share that your company successfully acquired 2.92 acres inKhanamet (near Hitech City Hyderabad) through an online auction conducted by theTelangana Government. We intend to develop a residential complex there and are completingall the formalities related to land acquisition and requisite approvals for the project.
Your company is also pursuing the Ongole project (villas / apartments) with newvigour and confidence.
Your company has also obtained all requisite approvals from authorities todevelop the New York apartments complex at Allasandra (nearYelahanka Bengaluru). We shall tentatively develop 5.61 Lakh sft of total area (includingthe landowners share). Work will start soon after achieving the financial closure.
Meanwhile work on the Lake City project at Hafeezpet Hyderabad -through our associates Vasavi Realtors LLP - has picked up good momentum. We aredeveloping 30 Lakhs sft of residential apartments in this project.
Manjeeras unwavering focus on technology sustainability quality and aninclusive work culture has enabled us to embrace every challenge and capitalize on it.
Our projects are always aligned with our customers needs and our ability toforesee opportunities across market segments helps us to strategically scale-up ourbusiness and thereby create strong and enduring value for all our stakeholders.
Safety Health and Environment
Complying with these three cardinal principles is at the very heart of our businessphilosophy.
Manjeera has always looked well beyond its business concerns when it comes to servingsociety. In difficult and testing times like these it is all the more an importantpriority for us. Our community outreach efforts include various philanthropic programs.
Through Vasavi Foundation for Empowerment your company is working onempowering people through education employment and entrepreneurship by providingfinancial support for education employment skill development and talent development.
Manjeeras real strength lies in the commitment and quality of its people. Withthat in view your company continues to engage in various employee welfare initiatives toboost their morale and keep them committed to their work in a positive frame of mind.Manjeeras HR philosophy seeks to establish build and retain a strong performanceand competency-driven culture with a high degree of accountability and responsibility.
We focus on creating an environment that enhance our employees sense of pride inwhat they are doing thereby leading to higher efficiency and productivity.Manjeeras HR policies and systems are designed to motivate its workers to innovateand apply new ideas so as to achieve significant improvements in both size and scale ofits operations. They are given every opportunity to grow and prosper in their lives. Yourcompanys Industrial Relations remained stable throughout FY 2020-21.
Along with my Leadership team I sincerely thank our Board Members customersshareholders business associates suppliers and all other stakeholders for the trust theyhave reposed in us all the way. It is they who will inspire us to face our futurechallenges and live up to their trust. Let us look at tomorrow with confidence and takeManjeera to greater heights
With my best wishes to all of you
Chairman and MD