As we enter a new financial year, we are grateful for the unwavering trust bestowed upon us. The FY 2017-18 marked successful completion of 31 years for the Company and 50 golden years for the entire Ajmera Group. From a humble beginning 50 years ago to an exciting juncture today, the Ajmera Group stands strong, mapped by several success milestones. Today, the Group is strategically placed to scale the next level of growth. Economic scenario
The Indian economy remains largely encouraging with GDP of 6.7% during the year. It is steadily heading towards the path of macro-economic stability, as witnessed by controlled inflation and lowered fiscal deficit. The real estate sector witnessed two major reforms come into force - the Real Estate Regulatory Authority (RERA) and the Goods and Services Tax (GST) - which we believe are important steps towards making the economy more organised and consolidated.
Growing with India: Various Government initiatives
The real estate industry being the second largest employer after the agriculture, there are several reforms planned by the Government to increase investment in this sector. This is the right time for the organised developers to capitalise on the opportunities and lead the industry.
RERA Act implementation will protect the interests of home buyers and also boost transparency in the real estate sector. Besides, there has been a rise in joint ventures between unorganised builders and tier-1 developers to manage risk and improve returns. Not to forget, the landmark GST implementation has further improved logistics supply chain efficiencies, availability of input credit, thereby decreasing the project cost.
The Pradhan Mantri Awas Yojana (PMAY) has recently expanded its scope to cater to the housing needs of the Mid-Income Group (MIG), along with Economically Weaker Sections (EWS) and Low-Income Group (LIG). MIG has been classified into MIG-I having household income from Rs. 6 Lakhs to 12 Lakhs and MIG-II having household income from Rs. 12 Lakhs to Rs. 18 Lakhs, with an additional increase in the carpet area of affordable units from 120 sq.mt to 160 sq.mt and from 150 sq.mt to 200 sq.mt for MIG-I and MIG-II respectively. The Pradhan Mantri Rojgar Yojana (PMRY) further aims at providing higher employment opportunities to the unemployed youth of the country. This scheme will lead to a rise in the disposable income and the demand for low cost housing. The Interest rate Subvention Scheme will result in easy payment options for buyers, enhanced customer base for banks and steady flow of fund for developers. This will subsequently boost the demand for housing.
Towards a steady growth
The Company reported strong numbers in FY 2017-18. The revenue increased 13.71% from Rs. 26,575.56 Lakhs in FY 2016-17 to Rs. 30,221.21 Lakhs in FY 2017-18. Also, the EBIDTA grew 20.66% from Rs. 11,334.16 Lakhs in FY 2016-17 to Rs. 13,676.17 Lakhs in FY 2017- 18 and PAT increased 23.62% from Rs. 6,153.67 Lakhs in FY 2016-17 to Rs. 7,607.12 Lakhs in FY 2017-18. Further, we have tried to maintain a balance between high-end and affordable housing by offering superior quality, on time delivery and better living experience. The total saleable area till date is approx. 34.39 Lakhs sq.ft. in Mumbai, Bengaluru and Ahmedabad projects.
Our landmark residential projects - Aeon, Zeon and Treon in Ajmera i-Land, Bhakti Park spell style, luxury and power. Ajmera Stone Park at Bengaluru along with Ajmera Enigma and Casa Vyoma at Ahmedabad are undeniably phenomenal, ref i ecting our skills in recognising the underlying potential of the location. We also plan to construct 14 complex houses at Kingston, London, by collaborating with local developers. We have also marked an entry into Bahrain, where the projects will be launched soon.
Leveraging on the opportunity frontiers
Consider this fact: the real estate market is estimated to be at US$ 180 Bln in size by FY 2019-20. This translates into a huge opportunity as we are making significant investments to prepare ourselves to grab a larger portion of the opportunity pie. At the same time, we aim to construct affordable houses as a part of the Government of India’s ‘Housing for All’ mission by 2022.
We have a vision to create benchmarks that are aspirational and in tune with the evolving needs of the market. We are looking ahead to enter into hi-end, mid-end and low-cost housing segments across all the Mumbai Metropolitan Region Development Authority (MMRDA) region in the coming years. Also, we are enthusiastic to broaden our horizons by expanding in the high potential commercial space. We are focused on fixed income segment which is insulated from the cyclical nature of the real estate industry. We aim to provide a blend of residential, rental commercial assets in Bhakti Park, Kanjurmarg and Bengaluru. We continuously strive to contribute to the communities around us and provide them a better quality of life. The Company has taken initiatives through Ajmera Shiksha Yojana, Ajmera SelfDevelopment Programme and Ajmera Swaastha Yojana.
We believe in creating a nurturing environment for the employees and their families through health aids. On the occasion of 50th year celebration of the Group, we have declared corporate benefits by sponsoring education for our employee’s children.
On this note, I would like to thank everyone for continued faith and support in our organisation. This enables us to excel in our performance, thereby encouraging us to grow in the future.
Rajnikant S. Ajmera
Chairman and Managing Director