I welcome all Shareholders and Board of Directors to the 20th Annual General Meeting of your Company for the financial year ("F.Y.") 2015-16. F.Y. 2015-16 saw the global economy tumble on account of weak European and Chinese cues and various other factors. But India stood its ground to become the fastest growing economy in the world with a GDP growth of 7.6%. Reserve Bank of India''''s inflation focus supported by benign global commodity prices has come to fruition through combined efforts of strong Government reforms. In addition to all this, the Government was able to control the fiscal deficit to its budgetary target of 3.9%.
The Indian Real Estate sector which is 2nd largest employment generator in India after agriculture is showing signs of revival with increase in sales and reduction of unsold inventory. There is also a significant increase in new launches in the residential space.
The Government has been focusing on clearing major Infrastructure projects which has resulted in considerable increase in speed of construction of highways which is at the highest this year. Infrastructural development is proving vital for real estate sector. Government has started shaping previously launched housing for all schemes and has come up with the list of smart cities which will be developed. Sardar Patel Urban Housing scheme, Atal Mission for Rejuvenation & Urban Transformation ("AMRUT") and Heritage City Development & Augmentation Yojana ("HRIDAY") will drive growth in the sector.
The Real Estate (Regulation and Development) Act, 2016 ("the Act") is passed by the Parliament and has received the assent of the President of India on March 25, 2016. Different provisions of the Act may be brought into force on different dates as may be specified by the Government of India. The Act contains several provisions to address the lacunae in the real estate market, principally by way of establishing a disclosure framework and setting strict liabilities for promoter irregularities. This will bring regularities and uniformity in the sector.
Mumbai over a period of last few years has improved its commute facilities with new modes of transit like monorail, metro rail and the connectivity across the city has improved considerably. Allotment of ''''Metro-III Rail'''' contracts has already boosted the sentiments among commuters. These developments will have bearing on growth of your Company. The proposed Development Control Regulation 2034, Coastal Road Policy, elevated suburban rail corridor will develop the connectivity between business districts and suburbs of Mumbai Metropolitan Region.
Your Company has been a major player in residential, commercial, affordable housing and redevelopment spaces. Relaxation of policies with regards to affordable housing and redevelopment and market''''s sign of regaining momentum will boost the Company in terms of new project launch and Floor Space Index ("FSI") sale.
Private Equity Real Estate ("PERE") firms deployed over $5 billion in Indian real estate companies and projects - the highest since the financial crisis of 2008. PERE firms made around 90 investments in India during 2015. All this in aggregate comes as a great positive for the sector which is looking for revival.
- The turnover of the Company for the year ended March 31, 2016, increased by 9.18% and stood at Rs. 1,19,109.46 lacs as against Rs. 1,09,093.36 lacs in the previous year;
- The profit after tax for the year ended March 31, 2016, increased by 17.07% to Rs. 26,496.25 lacs as against Rs. 22,633.35 lacs in the previous year;
- Earnings per share increased by 48.82% to Rs. 8.17 as against Rs. 5.49 in the previous year;
- Net cash flow from operational activities is Rs. 39,860.29 lacs and
- During the year under review, the Company''''s Debt has been reduced by 7.70%.
In last 24 months, your Company has handed over approx. 2,500 residential units. In next 12-18 months company will handover around 4,500 residential units.
I wish to express sincere thanks to all my shareholders, Board of Directors, bankers, business partners, Government agencies, contractors and customers for their continued support and faith reposed in the Company. I also place on record my deep appreciation to all employees for their hard-work and dedication.
I would also take this opportunity to acknowledge that your Company is upholding responsibility for the environment and promoting well-being of all stakeholders including employees, customers and society at large.
rakesh Kumar Wadhawan