Even after many challenging years and with a depressed outlook at the cusp of 2020 dueto the slowing economy the real estate sector was not prepared for the damage that theCOVID-19 pandemic effected on the sector in the first half of the financial year. Moreimportantly the wider adverse impact on life and wellbeing of people and the world andIndian economy has been unparalleled. In such times survival itself is a blessing formany. We fervently hope you and your loved onesare safe and healthy in such testing times.
Tire tests gold and adversity tests the brave". The same can be said of thecompanies that are resilient Omaxe has proven its mettle over the years by outperformingits peers even during tough times. It has consistently focused on its mantra of"Consolidate. Adapt and Transform" to counter the trying external environment.Our performance in the reported financialyearwas no different even while facing anextraordinary and unmatched challenge.
The lockdown imposed by the Indian government due to the pandemic brought nearly alleconomic activities to a complete halt for a greater part of the first haLf of FY2020-21.The gradual opening up of the economy declining COVID case numbers and stimulus measuresannounced by the Indian government and the Reserve Bank saw an uptick In the businesssentiment and release of pent-up demand during the second half. This is reflected in theoverall economic performance where the GDP growth was negative in Qi and Q2 FY2020-21 at-244% and -7.3% respectively which then turned positive to 0.4% in Q3 and 1.6% in Q4. Theperformance trend in the Residential real estate segment also mirrored the GDP growth withthe unit sales falling by 70% in Hi FY2020-2land surging by 60% in H2 FY 2020-21.Similarly unit launches were curtailed by 73% in the first half and increased by 52% inthe second. Overall performance forthe year was a 22% decline in unit sales and a 24% dropin unit launches.
The Office real estate segment faced some additional challenges due to the new normalof ubiquitous Work From Home CWFH) and minimaloffice attendance norms.
In this business environment your Company delivered 2.71 million sq. feet of the areaduring the year. Similarly it booked sales of 2.73 million sq. ft in the same periodvalued at Rs. 2051 crore. Tier-ll and III cities such as New Chandigarh. LudhianaIndore and Lucknow were the Company's top performers in sales during the reportedfinancial year. The Company continued to launch projects in these cities despite thepandemic thereby showing its commitment to launch and deliver projects. The key highlightsof the financial performance of the Company were an income from operations of Rs. 514-59crore and the net loss for the period at Rs. 235.21 crore. The last quarter contributedthe most to the annual performance in terms of revenue and profits as the sector was onthe path to normalcy. However the second wave of COVID that started in April 2021 andlasted till June 2021 soured the prospects for the new financialyear especially the firstquarter. The growth forecasts for the Indian economy were also cut across the board due tothe severity of the second wave of the pandemic and the consequent lockdowns. The Companyis however cautiously optimistic of the business environment beyond the first quarter.
Our performance over the years can be attributed to the committed efforts of ouremployees suppliers and associates. This toil has been the underlying reason for yourCompany's position as a trustworthy and reputed name in the realestate sector. During thepandemic the company took several customer-centric steps to ease its burden and alsoextended a helping hand to society through its CSR initiatives. At Omaxe fulfilling ourcommitments and meeting timelines is nonnegotiable. Through operational excellence andcost leadership we have shown the way to achieving great results forthe company. Over andabove our strengths the market factors and dynamics that are likely to work in our favourgoing ahead are the shift of demanding customers to Tier-11 and Tier-Ill towns due to theWork From Home model infrastructure push by the governments continued liberal monetarypolicy and high momentum in the economy after a pause due to the second wave.
To conclude I wouLd like to extend my warm wishes and thank our investors bankerspartners suppliers employees and customers for theirtrust and support Your continuedtrust reposed in us overthe years is the fuel that will power our efforts to achieve ourtargets going ahead. May we allsucceed in fulfilling these goals and have a greatyearahead!
Chairman & Managing Director.