"the road may be rough the journey may be tough and the experience may bebitter but they are stepping stones to our future throne." In our history of 33years omaxe has delivered sustainable growth from a modest start by facing the challengeshead-on with this resolve and philosophy. The last few years have been particularlytesting for the real estate sector and the company due to the seismic shifts inregulations economic conditions and sectoral dynamics. However the company has emergedmuch stronger and performed superlatively vis-a-vis its peers. The main credit goes to itsmantra of "consolidate adapt and transform" in the face of these trials.
The macro-economic environment remained demanding even in fy 2019-20. The industry sawsome pickup in residential sales and launches in the initial part of the financial year.However the subsequent economic slowdown and the impact of pandemic in the last quarteronce again put paid to the hopes of a recovery in the sector's fortunes. The governmentalong with the rbi have been extending full support to the real-estate sector withlegislative administrative and monetary measures including a stimulus package to counterthe impact of covid-19 linked lockdowns. This situation however did not affect theconsistent track record of the company as one of the very few operationally profitablecompanies in the sector.
The company's fy2019-20 turnover was rs. 1160 crore and profit before tax was rs. 44.3crore. The profit after tax for the reported year would have been rs. 25.77 croreexcluding the impact of the deferred tax asset reversal of rs. 122.91 crore due to changein income tax policy for all but three group companies. Hence the company has beensuccessful in sustaining its operating performance even in the face of macro headwinds.Omaxe sold a total of 8.26 million square feet area worth rs 2145 crore in fy 2019-20. Theaverage realization for the financial year was rs 2912 per square feet for residential rs8382 per sq. Ft. For commercial and rs 8919 per sq. Yd. For plotting. The total area underdevelopment touched 48.52 million square feet out of which roughly 8 million square feetis expected to be delivered in fy2020-21. We have invested time and resources indeveloping in-depth local knowledge at the micro-market level which has helped us plan andexecute our projects better than our peers.
On the new launches and fresh bookings in the coming financial year the first quarterwill be challenging due to the lockdown and prolonged persistence of the coronavirus.However a foreseeable recovery led by the pent-up demand in tier 2/3 cities is likely toboost the company's performance in conjunction with its stellar brand reputation strongbalance sheet and quality project pipeline. Also the foresight to understand the marketshift towards the tier ii and tier iii towns would continue to hold us in good stead. Thecentral government's push to develop these alternate urban centers by pushing investmentsin "ease of living" infrastructure such as sanitation water transport andutilities is a significant growth driver. This would be aided by the work-from-home trendand reverse migration to these towns due to pandemic. The lowering of interest rates andsupport to lending growth by the reserve bank of india will amplify the thrust fromsupportive government policies. Our presence across diversified geographies and focus onproduct planning as per local and cultural requirements of the city and the residentshelps us get exceptional response to our launches. On the commercial front while officespaces in metros may take a couple of years to recover the retail segment with 2-3 yearsdelivery timeline continue to be a good investment bet. The pandemic has aided the idea oforganized shopping in an established marketplace. Omaxe chowk in chandni chowk delhi is arecent example of how this commercial redevelopment project in asia's largest wholesaleand retail hub has seen encouraging demand from businesses and brands and enthusiasm fromshoppers. This will set a trend in the times to come!
To conclude we have faith in our abilities to overcome adversities and in the goodnessof what the future holds. And this is primarily due to the dedication and commitment shownby our stakeholders towards omaxe for which we remain indebted. We thank our investorsbankers partners suppliers employees and customers for preserving this trust on us andhope all have a safe healthy and a fruitful year ahead!
|Best regards |
|Rohtas goel |
|Chairman & managing director |