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Nimbus Projects Ltd.

BSE: 511714 Sector: Infrastructure
NSE: N.A. ISIN Code: INE875B01015
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NSE 05:30 | 01 Jan Nimbus Projects Ltd
OPEN 27.55
PREVIOUS CLOSE 27.55
VOLUME 351
52-Week high 43.05
52-Week low 15.00
P/E
Mkt Cap.(Rs cr) 30
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 27.55
CLOSE 27.55
VOLUME 351
52-Week high 43.05
52-Week low 15.00
P/E
Mkt Cap.(Rs cr) 30
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Nimbus Projects Ltd. (NIMBUSPROJECTS) - Chairman Speech

Company chairman speech

Dear Shareholders Ladies and Gentlemen

I have great pleasure in welcoming you to the 26th Annual General Meeting of theCompany. I take this opportunity to brief you about the Company's performance in theFinancial Year 2018-19 and also share our plans and goals for the future.

Economic Outlook

Let me start by briefly describing the economic environment that impacts theperformance of your company as well. The Indian economy in contrast to the rest of theworld has been relatively vibrant and stronger emerging as the fastest growing economyin the world. Despite uncertainty on global front India's economy has been able to moveon a steady path recording a GDP of 7.2 per cent during the fiscal year 2018-2019. Thecountry's economic fundamentals are sound and the Government is determined to removeimpediments to economic development and social empowerment.

Real estate sector in India is expected to reach a market size of US$ 1 trillion by2030 from US$ 120 billion in 2017 and contribute 13 per cent of the country's GDP by 2025.Retail hospitality and commercial real estate are also growing significantly providingthe much-needed infrastructure for India's growing needs. The housing sector'scontribution to the Indian GDP is expected to almost double to more than 11 per cent by2020 up from estimated 5-6 per cent.

Government Initiatives

The Central and state Government have taken several initiatives to encourage thedevelopment in the sector. The Smart City Project where there is a plan to build 100smart cities is a prime opportunity for the real estate companies. Below are some of theother major Government Initiatives:

• Under the Pradhan Mantri Awas Yojana (PMAY) Urban more than 6.85 million houseshave been sanctioned up to December 2018.

• In February 2018 creation of National Urban Housing Fund was approved with anoutlay of Rs 60000 crore (US$ 9.27 billion).

• Under the Pradhan Mantri Awas Yojana (PMAY) Urban 1427486 houses have beensanctioned in 2017-18. In March 2018 construction of additional 321567 affordablehouses was sanctioned under the scheme.

The implementation of Real Estate (Regulation and Development) Act 2016 (‘RERA')and GST Act has transformed the real estate sector scenario in the country. Post thesechanges developers are expected to pass on the benefits of absorbed costs on rawmaterials to the end users. The Central Government's decision to allow 100 per cent FDI (Foreign Direct Investment) under automatic route in real estate brokerage service isexpected to boost the real estate industry. The demands of retail housing affordablehousing and hospitality and commercial real estate are expected to grow significantlypost RERA GST and FDI allowing.

Company's performance

The economy did show signs of revival in the financial year 2018-19 but the businessenvironment for industries across sectors remained challenging and the real estate sectorwas no exception. Prices are likely to remain stagnant and developers will continue tofocus on clearing existing inventory rather than launching new projects. The overalldemand continues to be subdued.

I present the following operational performance of the Company:

a) Standalone results of operation: During the financial year under review yourCompany's standalone revenue from operations is Rs. 465.40 Lakh as compared to revenue ofRs. 733.22 Lakh in last year a decrease of 36.53 %.

The standalone loss after tax of your Company is Rs. 1552.57 Lakh compared to loss ofRs. 783.53 Lakh in last year registering an increase of 98.15 % over the last year.

All the above said decrease in revenue and increase in loss after tax are due to lossin partnership firms with which the Company is developing all the projects. The projectsundertaken by the Company are under final stage of development. The Company is expected tocomplete these projects by next year and as a result revenue and profit will be generatedand financial position & ratios are expected be improved.

b) Consolidated Results of operation: During the financial year under review yourCompany has consolidated its Financial Statements w.r.t. to its associate Companies vizCapital Infraprojects Private Limited and Golden Palm Facility Management Private Limited.The Company's consolidated revenue from operations is Rs. 465.40 Lakh as compared torevenue of Rs. 733.22 Lakh in last year a decrease of 36.53 %. The consolidated lossafter tax of your Company is Rs. 2177.72 Lakh compared to loss of Rs. 1136.82 Lakh in lastyear registering an increase of 91.56% over the last year. The individual performance ofthese associates Companies have been discussed under in relevant head of this report.

Progress on projects

On the operational front we have completed/offered possession of the Project TheExpress Park View Located at Sector Chi-V Greater Noida and started giving possession ofProject in Joint Venture "The Hyde Park" "THE EXPRESS PARK VIEW-II"and "The Golden Palms".

I take pleasure in sharing with you that all ongoing projects developed throughSpecial Purpose Vehicles (SPV's) have been registered separately in the name of these SPVswithin timeframe under Uttar Pradesh RERA Authority.

Strategies for growth

Our Company is a value driven organization that has worked towards creating lastingvalue for its stakeholders. To further strengthen the organization's overall performanceand create more value for our stakeholders we would be focusing on faster execution anddelivery of our ongoing projects.

Additionally to enhance operational efficiencies and to reduce debts we wouldcontinue to look out for monetization of our non- core assets. We are optimistic that thiswill help reduce our financial burden and strengthen the balance sheet.

Affordable housing is the only segment where our company can focus in financial year2019-20. The overall the long term outlook of the real estate sector looks positive andyour organization have a rich experience in developing and delivering quality real estateprojects.

Realty outlook

The Government's growth-oriented strategy like ‘Smart Cities' ‘Housing forAll by 2022 Schemes' and eased FDI norms are expected to pace the growth of real estatemarket. RBI could release liquidity in the market thereby enabling banks to lower theirlending rates to cheer home buyers. NBFCs and digital lenders could offer homebuyers tobuy properties at lower EMI and interest rates. Income tax rebates on home loansdiscounts and freebies offered by boulders and developer could boost the sentiment ofhomebuyers.

Concluding note

On behalf of the Board I take this opportunity to thanks all employees whose skillsand capabilities have been instrumental in our growth their steadfast dedication andcommitment. I also wish to thank our shareholders bankers investors and associates fortheir sustained trust and support. As we embark on another fiscal I am hopeful aboutcommunicating robust results and new milestones while we execute coherent cohesivestrategies towards a higher growth trajectory.

Warm Regards
Sincerely
(Bipin Agarwal)
Place: New Delhi Chairman & Managing Director
Date: 12th August 2019 DIN:00001276

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