I present our performance for the year under review. Your Company recorded a 500%growth in pre sales value against the backdrop of a slowdown in the Indian economy andreal estate sector.
The latter part of the year under review was marked by a liquidity crunch affectingthe prospects of the country's real estate sector. During the last quarter India's growthslowed down to a 44-quarter low of 3.1% resulting in a 11-year low growth rate of 4.2%for the full year of 2019-20.
The last quarter of the year 2019-20 was also marked by the spread of the COVID-19virus resulting in a nationwide lockdown. The pandemic deepened the economic slowdownaffecting incomes and livelihoods. The result was an unprecedented decline in consumersentiment affecting most businesses.
Even as the country's real estate sector was affected the pandemic has opened up newopportunities for the affordable residential segment. We believe that the enforcedlockdown and the mandated need to stay indoors have increased attention towards better andlarger homes to accommodate the need to work from home. This requirement is in addition tothe secular need for people to live better in gated societies with lifestyle supports.
At Poddar Housing we laid the foundation for our next round of growth through acomplement of cost moderation process improvements and the rollout of new projects knowsas Poddar Wondercity and Poddar Riviera during the year under review.
The Company launched two new projects and sold more than 700 units which is more than50% of the launched phase of these projects on offer.
We believe that this pipeline of saleable apartments in the first phase and room togrow these projects seamlessly into their subsequent phases provides your Company with arevenue visibility for the next few years. Besides our first project launch in two yearsreturns our Company to a multi-year growth phase expected to enhance for ourstakeholders.
Poddar Wondercity was launched in April 2019 at Badlapur East (adjoining PoddarEvergreens) with 1863 apartments. In the first phase 671 apartments were offered ofwhich 390 apartments were booked with a total pre-sales realisable value of H102.15crores.
The Company also launched Poddar Riviera in January 2020 at Kalyan a project having apotential of more than 3400 apartments and a potential sales area of 24 lakh sq ft. Thefirst phase of the project comprised 720 apartments and even as the project was launchedin the challenging last quarter the Company achieved a booking for more than 350 unitswith a pre-sale realisable value of H124.02 crores.
Stability in uncertainty
During the last few years India's real estate sector has been sluggish. This phase hasbeen marked by a decline in realisations on the one hand and a decline in the cost ofmortgage cum increased government incentives on the other enhancing the value propositionfor buyers.
At Poddar Housing we did not wait in anticipation of a recovery; we utilised theslowdown to strengthen our business instead. We strengthened the management and leadershipteams; we trained our employees; we invested in technologies and strengthened ourprocesses. We invested in a new ERP known as Farvision during the year under review areal-estate specific solution that will enhance our process transparency and build theefficiency in various process. The result is even as the slowdown continues we haveemerged stronger. Besides the long-term attractiveness of the MMR Region's residentialmarket stays protected; the affordable segment within these markets continues to enjoyrobust demand partly on account of a longstanding demand from this segment and partly dueto selective down-trading which makes our segment increasingly attractive.
I must assure our stakeholders that the long-term outlook of our business continues toremain optimistic. The COVID-19 pandemic propagated a cumulative rate cut of 115 bps sinceFebruary 2020 of which banks have already transmitted 70-90 bps in their home loanportfolio making this transmission the fastest. To protect liquidity it was important toallow the financial institutions to transmit RBI's rate cut benefits with reduced loaninterest rates to the borrower. To address this specific need RBI provided an AdditionalSpecialty Liquidity Facility (ASLF) of H5000 crores to National Housing Bank which isexpected to provide a cushion for the housing finance companies to reduce home interestrates. This in turn is expected to translate into an upsurge in demand with a lower costof credit to the home buyer ensuring a likely upsurge in residential inventory offtake.
The Company expects to sustain positive sales momentum generated from the launch ofaffordable housing project known as Poddar Wondercity and Poddar Riviera in Kalyan Westinto 2020-21. The Company possesses an adequate land bank that can be progressivelymonetised in response to market opportunities. The acquisition of this land bank at lowhistorical rates provides us with an attractive long-term arbitrage opportunity. The factthat we possess this land bank with no high-leveraged debt on our books makes us acontrarian real estate player in a challenging capital-intensive business. We believe thatthe outlook of our business will remain attractive as the relevance of the affordablehousing segment will only grow across the coming years following enhanced focus by theGovernment in terms of policies and incentives.
We believe that the complement of these initiatives should generate business stabilityfor your Company at a time of economic and sectorial uncertainty which should enhancevalue for its stakeholders.