38Th-Annual-Report-2
Total Page:16
File Type:pdf, Size:1020Kb
www.poddarhousing.com 2019-20 ANNUAL REPORT stability in uncertainty Poddar Housing and Development Limited Forward-looking statement In this Annual Report, we have We cannot guarantee that these presented forward-looking information forward-looking statements will be to enable investors to comprehend realised, although we believe we have our prospects and take informed been prudent in our assumptions. investment decisions. This report The achievement of results is subject and other statements - written and to risks, uncertainties and even oral - that we periodically make, inaccurate assumptions. Should known contain forward-looking statements or unknown risks or uncertainties that set out anticipated results based materialise, or should underlying on the management’s plans and assumptions prove inaccurate, assumptions. We have tried wherever actual results could vary materially possible to identify such statements from those anticipated, estimated or by using words such as ‘anticipates’, projected. Readers should bear this in ‘estimates’, ‘expects’, ‘projects’, ‘intends’, mind. We undertake no obligation to ‘plans’, ‘believes’ and words of similar publicly update any forward-looking substance in connection with any statements, whether as a result of new discussion of future performance. information, future events or otherwise. Contents 02 04 08 10 Corporate New Financial Chairman’s Snapshot Launches Highlights Message 12 16 22 31 Management Integrated Management Notice of Review Report Discussion Annual General and Analysis Meeting 43 77 122 Director’s Standalone Consolidated Report Financial Financial Statements Statements Stability in Uncertainty At Poddar Housing and Development Limited, we have selected to be present in a business underlined by a core human need and consistent demand. The Company made a decisive break through the launch of two projects with multi-year revenue possibilities in the last financial year. A complement of the right brand, prudent pricing and right locational offering and the sector in which company is operating translated into relative stability of our business at a time of economic and sectorial uncertainty. Poddar Housing. An organised proxy for the affordable homes sector in Mumbai and the hinterland. Distinctive business model. Differentiated approach. Pedigree Leadership Geographies The Poddar Group embarked The Company is spearheaded The Company has a strong on its decades old journey by Mr. Dipak Kumar Poddar, a presence in the residential in 1982. Banking on a rich first-generation entrepreneur, sector of MMR Region, which family legacy and business who is aided by a senior accounts for 100% of its experience, the Company management possessing a revenues. has emerged as a strong real cumulative experience of more estate player in the Mumbai than 300 years. Metropolitan Region (MMR). The Company focuses on serving the housing needs of mid and lower-income segment of the society and has delivered ~5,000 apartments in the last ten years. Quality Property brands Listing The Company strives to The Company possesses the The Company is listed on service its customers with vision of fulfilling the housing National Stock Exchange unmatched home quality and needs of all sections of society, (NSE) and Bombay Stock design, validated by the ISO which entails launching homes Exchange (BSE) with a market 9001:2008 accreditation of addressing specific income capitalisation of H142.57 crores Poddar Housing. Further, the profiles of customers. The as on 31st March, 2020. Company also uses the latest Company’s various launches construction technology to are centred on the following build low maintenance and brands: high durability homes. Poddar Wondercity – Badlapur East Poddar Riviera – Kalyan Poddar Spraha Diamond Poddar Evergreens 2 | Poddar Housing and Development Limited Our ethical pedigree Vision Mission To be the leading affordable To enhance the quality of life housing development of our customers, by providing company in its geographical high quality, holistic spaces, presence and being the most through a relentless focus on trusted brand in the industry. execution and innovation, at We shall deliver superior value affordable prices. to all stakeholders through extraordinary and imaginative spaces created out of a deep customer focus and insight. Values Honesty and Communication Customer Quality integrity We share satisfaction We strive for We do what is appropriate We strive to professional right, fair and information in an exceed the excellence to the ethical. honest and open expectations of highest standards manner. our customers possible (internally and consistent with externally) by the goals of the anticipating, project. understanding and responding appropriately to their needs. Entrepreneurial Attitude Teamwork Leadership/ We encourage We are positive, We encourage Initiative agility of enthusiastic, and and reward We lead by thought and have a vibrant teamwork. example. Our action, creativity, spirit. actions speak flexibility, and louder than an innovative words. approach to our work. Professional to their fullest Accountability understand their development potential (as and impact on others, and personal individuals, as environment including the skills professionals and We are environment and We advance our as managers of responsible for our footprint. talents and skills others). our actions and Annual Report 2019-20 | 3 Our new launches *The project is registered with MAHARERA having registration no. P51700023508, P51700023181 and P51700023296. 4 | Poddar Housing and Development Limited Launched 3412 720 Sold Pre-sales in January apartments; apartments 354 units value of 2020 at saleable area offered in in the first H124.02 Poddar Kalyan ~24 lakh the first phase crores square feet phase (5.3 Riviera lakh sq ft) Annual Report 2019-20 | 5 Our new launches Launched 1863 671 Sold Pre-sales in April 2019 apartments; apartments more value of at Badlapur saleable area offered in than 50% Rs. 102.15 cr >12 lakh the first apartments Poddar square feet phase (>4 in the first Wondercity lakh square phase feet) *The project is registered with MAHARERA having registration no. P51700020032, P51700020028, P51700020038, P51700020041, P51700020067 and P51700020027. 6 | Poddar Housing and Development Limited Launched 132 118 Sold Pre-sales in 2018 at apartments; apartments 86 value of H103 Chembur saleable area offered in units in the crores Poddar of ~1 lakh the first first phase Spraha square feet phase (1 lakh Diamond sq ft) *The project is registered with MAHARERA having registration no. P51900002986. Annual Report 2019-20 | 7 How we have grown over the years Rs. in lacs Rs. in lacs Rs. in lacs 5,322.33 222.11 28,657.00 4,755.57 4,795.52 (748.10) (724.80) (1,958.85) 3,312.76 5,551.50 2,600.00 FY18 FY19 FY20 FY17 FY18 FY19 FY20 FY17 FY18 FY19 FY20 Revenue as per the accounting Pre-sales value / Booking value Profit after tax policy of the Company Performance Performance Performance The Company recorded a pre-sales The Company’s revenues as per the Profit after tax decreased during the value of Rs. 28,657 lacs in 2019-20 accounting policy was Rs. 4,795.52 lacs year to (Rs. 1,958.85) lacs mainly on compared to Rs. 5,551.50 lacs in the in 2019-20 compared to Rs. 4,755.57 lacs account of expenses incurred for new previous fiscal. in the previous fiscal despite economic launches during the year. headwinds. 8 | Poddar Housing and Development Limited % x % 6.19 1.37 1.61 (22.88) (5.43) (36.78) 1.00 (2.34) (0.70) (4.73) 0.74 0.22 FY17 FY18 FY19 FY20 FY17 FY18 FY19 FY20 FY17 FY18 FY19 FY20 EBITDA Debt-equity ratio RoCE Performance Performance Performance The Company’s EBITDA decreased The Company has raised funds for The Company’s RoCE stood negative by 3,135 bps to (36.78%) in 2019-20 financial closure of its projects as well mainly due to sales and marketing compared to the previous fiscal. as to initiate the construction activities expenses incurred for the launch of new of the projects, which increased the projects in 2019-20. debt-equity ratio of the Company to 1.37x in 2019-20 compared to 1x in the previous fiscal. Annual Report 2019-20 | 9 Chairman’s message 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 and real estate sector. The latter part of the year under review was marked by a liquidity crunch, affecting the prospects of the country’s real estate sector. During the last quarter, India’s growth slowed 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-19 virus, resulting in a nation- wide lockdown. The pandemic deepened the economic slowdown, affecting incomes and livelihoods. The result was an unprecedented decline in consumer sentiment affecting most businesses. Even as the country’s real estate sector was affected, the pandemic has opened up new opportunities for the affordable residential segment. We believe that the enforced lockdown and the mandated need to stay Stability in Uncertainty 10 | Poddar Housing and Development Limited indoors have increased attention towards incentives on the other, enhancing the known as Poddar Wondercity and Poddar better and larger homes to accommodate value proposition for buyers. Riviera in Kalyan West into 2020-21. the need to work from home. This At Poddar Housing, we did not wait in The Company possesses an adequate land requirement is in addition to the secular anticipation of a recovery; we utilised bank that can be progressively monetised need for people to live better in gated the slowdown to strengthen our in response to market opportunities. societies with lifestyle supports. business instead. We strengthened the The acquisition of this land bank at Our performance management and leadership teams; low historical rates provides us with an we trained our employees; we invested attractive long-term arbitrage opportunity.