To a large degree, all three key segments of the real estate sector get influenced by the macroeconomic environment. There have been a few indications lately; both at domestic and global level that make the Company believe that the economy has moved the worst phase of the current economic slowdown. Globally, the stability of Euro region, continued recovery in US and improvement in Japanese growth outlook are expected to maintain the interest of global companies and investors in India.

Since January 2012, RBI has already reduced CRR by 150 bps and repo rate by 125 bps. The banks are yet to pass the complete benefits of these reductions to the end user and generally the positive impact of such reductions become evident only after a period. Additionally, the momentum and direction of inflation appears to have moved down. The declining inflation provides additional headroom to RBI to reduce rates. Reduction in interest rates has much more positive impact on the profitability of the real estate sector as it helps to increase top-line through pick-up in demand and also improves profit margin due to reduction of the interest burden.
The speed of recovery is expected to be gradual and not as robust as was in FY’10, immediately after the year 2008 financial crisis. In line with same, the Company expects that the recovery in the first half of the FY’14 to be driven by sentiments rather than any on-ground changes, while it expects to see perceptible improvement in the real economy in the second half of the FY’14.

Leveraging its strong understanding of the real estate market backed by strong brand in each of its business segment, well-established track record, proven design capabilities, execution skill-set and large pool of highly satisfied customer base, the Company is gradually expanding its footprints outside Mumbai as well. The key focus markets are located in southern and western India. The Company has moved into the cities which are established or upcoming IT hubs like Pune, Hyderabad and Bengaluru and in cities where there is already an established second home market like Alibaug, Lonavala and Nasik.

While in near future, the projects in south and central Mumbai would continue to drive bulk of the revenues, the Company expects projects outside Mumbai to gradually increase their contribution to the overall revenues and growth. The Management would also continue to closely monitor the business environment and evaluate opportunities for optimizing its land holdings to derive the best potential.
Management Discussion & Analysis
Economic Overview
Real Estate Sector
Business Overview
Risk Management
Internal Control Systems
Human Resource
Cautionary Statement
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