What are your expectations from upcoming budget?
We expect the upcoming Budget to kick start the pending reforms in infrastructure and real estate. While these two have multiplier effect on dependent sectors like cement, steel etc, its surge will reflect in the overall GDP growth. As for the real estate sector, we expect the Budget to grant infrastructure status to real estate sector with single window clearance, tax incentive for affordable housing, removing roadblocks in land acquisition bill, faster approvals, interest subvention for affordable housing upto Rs 40 lakh etc are some of the short-term measures that can be taken. In the Government’s agenda of building 100 smart cities, the private developers can be expected to play a greater role.
Brief us about your current and upcoming projects in residential, commercial, retail space?
We are currently executing 42 real estate projects – 14 group housing, 18 integrated township including 2 hi-tech township and 10 commercial malls, office spaces/SCOs and hotels. These projects are spread across 30 cities in 9 States and in some of the most strategic locations of Faridabad, Bahadurgarh, Indore, New Chandigarh, Lucknow, Rohtak etc. We are developing an integrated township in New Chandigarh “Omaxe New Chandigarh”, a mixed-land use project “Omaxe City Centre, Faridabad”, entertainment zone in Omaxe Connaught Place, Greater Noida, residential projects in Lucknow, Bahadurgarh among others.
What is the outlook for the real estate industry?
The outlook looks positive post the formation of a stable government. The reforms spelled out by the Government towards boosting infrastructure and industrial development and building 100 smart cities have given rise to this optimism. While the macroeconomic indicators will see some improvement gradually but the mood of the investors already looks upbeat. Rising income coupled with employment generation will push demand for housing in India in the coming days. The promotion of industrial development and manufacturing will give a boost to tier ii cities, lead to improvement in urban infrastructure and create more avenues for employment, income and lifestyle.
What is the total area under development?
125 million sq. ft.
What price scenario do you see in Delhi and other cities?
Price increase will be subject to government’s infrastructure and industrial promotion policies. Identification of smart cities will also play a key role.
Brief us about your Financials?
The company clocked a consolidated income from operations of Rs 1623 cr. in FY14 and a consolidated PAT at Rs 79 crore. The company has taken its total delivery in real estate to approx. 58 million sq. ft. as of March 2014; a quantum jump from 11 million sq. ft. till 2009-10.
What is your sales booking target for FY15?
The company has clocked sales bookings of Rs 2107 cr. in FY14 and is expected to increase by 20% in FY15.
What is your current debt?
Gross debt stands at Rs 1049 cr. Omaxe has seen consistent reduction in its debt on account of increased cash flows as a result of continuous construction, delivery and new launches. Increased cash flow is also on account of the right product mix that caters to the demand of specific cities propelling the company’s desirability among end-users. In the last 5 years, the company has seen its debt-equity ratio come down by close to 60%; from 1.15 in 2009-10 to 0.48 in 2013-14.
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