Here are my notes from FY20 annual report
- Will start measuring net promoter score to understand how happy their clients are across projects
- Ranked #1 brand in North India, #5 in India, #1 senior living brand (third consecutive time) by Track2Realty
- Launched 4 greenfield projects (2 in Jaipur, 2 in Jamshedpur). No further greenfield projects in FY21
- Debt as on FY20: 104.97 cr. (excluding IFC funding of 18.74cr.), Out of this 20.2 cr. is working capital debt. Cost of borrowing: 10.5%
- Cash as on FY20: 154 cr. (4-5 cr. monthly expense)
- Generated positive operational cashflow at 34.22 cr. in FY20 vs 16.41 cr. in FY19
- 90% of customer loans are from top 2 housing finance companies in India
- Land bank: 86.82 acre, looking for land acquisition opportunities in Jaipur, Gurgaon, Pune, Chennai and Bhiwadi
- Jaipur market is doing well, there was never oversupply problem here
- Gurgaon and Bhiwadi markets are facing challenges, with sales in Sohna (Gurgaon) slow. Bhiwadi senior citizen living project is doing well
- Ongoing projects: 31.17 lakh sq.ft saleable area out of which 19.35 lakh sq.ft has been booked
- Lavasa (Pune) phase IV has been constructed, however sales is yet to be commenced pending OC approval
- Projects launched in 2013 and 2015 have seen pricing impact, where they have unable to pass on inflation in construction costs to customers due to oversupply in market
- Enquiries and site visits are back to pre-COVID levels, expect normalcy return in 2nd half of this fiscal
- Number of permanent Employees: 524; Median salary: 3.47 lakhs; 9.18% increase in salary of employees other than managerial personnel; 7.1% including managerial personnel
- Internship program from leading management institutes went well and has now been institutionalized.
- Sold 1505 flats against a sales target of 1600
- Advertising and business promotion expense: 28.28 cr. (vs 25.59 cr. in FY19)
- Had to writedown 17.39 cr. selling expense whose corresponding revenue were not similar to the costs was incurred
- Gross profits was lower at 23.51% vs 30%+ in previous years because of Sohna project (accounting for 47% revenues recognized) which had much lower gross margins
- Partnership profit: 300/sq.ft (vs 331/sq.ft in FY19)
- Total collection: 353.1 cr. vs 292.36 cr. in FY19
- COVID impact:
o Project delays
o Demand contraction
o Supply contraction
o Continued consolidation towards reliable real-estate players with balance sheet strength
o Trying to manage cashflows properly
Disclosure: Invested (position size here)