CHAIRMAN & MANAGING DIRECTOR
Fire is the test of gold; adversity is the test of character. The year2017-18 was a 'trial by re' for the real estate industry. After the monumental regulatorychanges and reforms rolled out in the previous year implementation of RERA and GST wasparticularly impactful for the real estate industry. These developments led to a declinein sentiment and sales traction for the sector during the initial quarters continuing thedeclining trend due to impact of demonetisation. Slowdown in the economic growth of thecountry during this period exacerbated the hit on the sector making it a particularlytough year. However the industry has responded admirably and adapted itself to the newenvironment of transparency accountability and ef ciency ushered in by these reforms.This has bene tted the sector especially credible names in the industry as they haveregained the trust and business of customers. Increased footfalls accelerated salesvelocity and positive sentiments especially in the residential sector in the lastquarter of thefinancial year are a demonstrable proof.
It is the same with the Indian economy which has regained its momentum and outpacedall the major countries in the world with a 7.7 per cent GDP growth in the last quarter of2017-18. With the consumption and public investment continuing to swell and privateinvestment showing signs of revival prospects for the economy are shining. The Governmenthas continued its determined march to plug the infrastructure de cit by consistentlyincreasing the fund allocations and maintaining focus on speedy implementation.Exemplifying this resolve of the Government are the two projects of Eastern PeripheralExpressway (EPE) and Phase 1 of Delhi-Meerut Expressway (DME) recently inaugurated by theGovernment. EPE is the rst smart and green highway whereas the Phase 1 of DME wascompleted in record time of 18 months as against scheduled period of 30 months. Thisaction-oriented governance is being replicated across all the key infrastructure sectorsincluding Rail Shipping & Ports Power etc. and is sure to increase the economicgrowth and improve Ease of Living bene tting the real estate sector.
Consolidate Adapt and Transform is the mantra that we adopted during theyear to align Omaxe with the changing environment. The ride was rough however pastpractices of keeping customer interests at the core of our business and fulfilling allpromises on quality and timeline held us in good stead during this turmoil.
Consolidate Adapt and Transform is the mantra that we adopted during theyear to align Omaxe with the changing environment. The ride was rough however pastpractices of keeping customer interests at the core of our business and ful lling allpromises on quality and timeline held us in good stead during this turmoil. Our turnoverexpanded by 12.6 per cent to reach Rs. 18391 million in FY2017-18 in an extremely difcult year and the Company delivered a total of 3.3 million square feet area in FY2017-18.
Our presence in 8 states across 27 cities has given us scale and our focused strategyto penetrate Tier II and Tier III cities has given us an early mover advantage in marketsthat have seen lower volatility vis-a-vis the larger markets. We have further consolidatedour presence in these markets by launching new projects only in the Tier II and Tier IIIcities. With increasing urbanisation growing incomes and government investments inimproving administration capacity of Tier II and Tier III cities these markets are poisedfor further growth. Omaxe with its lead is well positioned to leverage this opportunity.Projects in Tier II and Tier III cities which are our prime focus area in real estatecontributed 61.45 million square feet (78 per cent) of the total delivered area. Newprojects were launched in 6 cities across 4 states during the year and were all in TierII and III cities in line with our strategy. Overall development potential of these newlaunches was 2.70 million square feet.
Overall sector is also going to bene t from Government's initiatives on AffordableHousing to achieve 'Housing for All by 2022' and multiplier effects of improvedinfrastructure. With the dampening effects of reforms out of the way a positive demandenvironment is likely to greatly rally the industry's nancial performance. Increase ininterest rates and input in ation may however pose some challenges in the coming year.Your Company is however well prepared to capitalize on the opportunities and address thechallenges.
Trust and support of all our stakeholders is of utmost importance to us and we aregrateful and thankful to our investors bankers partners suppliers employees andcustomers for extending it to us during our journey. May we all reach glory and success onour chosen path have a great year ahead!