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Prime Urban Development India Ltd.

BSE: 521149 Sector: Industrials
NSE: N.A. ISIN Code: INE419E01024
BSE 00:00 | 27 Feb 5.45 0
(0.00%)
OPEN

5.45

HIGH

5.45

LOW

5.45

NSE 05:30 | 01 Jan Prime Urban Development India Ltd
OPEN 5.45
PREVIOUS CLOSE 5.45
VOLUME 104
52-Week high 11.99
52-Week low 4.14
P/E
Mkt Cap.(Rs cr) 15
Buy Price 5.45
Buy Qty 1.00
Sell Price 5.45
Sell Qty 104.00
OPEN 5.45
CLOSE 5.45
VOLUME 104
52-Week high 11.99
52-Week low 4.14
P/E
Mkt Cap.(Rs cr) 15
Buy Price 5.45
Buy Qty 1.00
Sell Price 5.45
Sell Qty 104.00

Prime Urban Development India Ltd. (PRIMEURBAN) - Chairman Speech

Company chairman speech

Dear Shareholders

I am very happy to share with you the performance of your Company for the financialyear 2017-18.

Indian economy at the start of 2017-18 felt the continuing effects of demonetizationwhich were further compounded by the implementation of GST in the 2nd quarter. Thiscoupled with high Non-Performing Assets accumulated with Public sector banks worsened theliquidity in the economy. However in October the government announced a mammothrecapitalization plan of Rs 2.11 lakh crore for public-sector banks. This is expected toimprove the liquidity position going ahead. Despite these issues India's GDP recovered andis estimated to have increased at 6.6% in 2017-18 and is expected to grow 7.3% in 2018-19.

During the year the Indian residential market has breached new lows in terms of supplyand sales for every successive year of this decade. Despite the massive need for housingthat India is facing huge unsold inventories caused by a prolonged focus of thedevelopers on the wrong apartment ticket sizes have resulted in the poor performance ofthe residential real estate industry. The government aggressively tried to push a cultureof transparency through measures such as demonetizations Goods and Services Tax (GST) andthe Real Estate (Regulation and Development) Act 2017 (RERA) which are expected to alterthe course of the industry in the long term.

A robust establishment of skill-based manufacturing industries has led to fast pacedurbanization in south India housing around 102.8mn people in just urban areas (27.3% ofIndia's total urban population). Tamil Nadu Andhra Pradesh Karnataka and Kerala houseclose to 50% of the total number of SEZs in the country. Together with industrial growthIT remains the dominant driver for the real estate market.

The growth potential in southern India is humongous. Tamil Nadu contributesapproximately 10.93% to India's overall GDP and ranks 2nd among the 36 Indian States &Union Territories in terms of GDP contribution. Contribution of the southern states ofIndia is nearly 31% of the GDP of India. The Real Estate sector in the South is alsopicking up on account of growth in sectors like Auto Consumer goods Power consumption& Cement in the recent past.

Your Company is mainly engaged in the Real Estate sector in South India. Your Companyis mainly focused in the Tirupur city of the state of Tamil Nadu and with the opening upof the Affordable Housing segment due to Government push your Company is exploringopportunities in the same. Your Company is also aggressively seeking out opportunities invarious parts of the country.

Your Company's consolidated revenue for FY18 was Rs. 97.73 Cr. with EBITDA of Rs. 8.33Cr. In the Textile division our revenues in FY18 were Rs. 56.32 Cr with an EBIT of Rs.0.46 Cr.

Best regards

P.D. Patodia

Chairman and Managing Director