Eldeco Housing & Industries Ltd

OVERVIEW

It is my pleasure to present the Eldeco Housing & Industries Ltd.’s (EHIL) Annual Report for the fiscal year ending March 31, 2021. This was an unprecedented year in terms of its disruption and uncertainty. The COVID-19 pandemic resulted in a paradigm shift across businesses and industries, and real estate development was no exception. In the aftermath of the deadly second wave, we are trying to regain and rebuild ourselves to emerge stronger than ever. It is this resilience of our people, the very human nature of being able to bounce back from adversity, that has helped us grow from strength to strength.

GRATITUDE - OUR WORKFORCE, OUR STRENGTH!

Before I get into the financial and operational aspects, I would take a pause and express my gratitude to the entire team at Eldeco and our ecosystem of suppliers and vendors for the tremendous resilience they have shown in the face of these tough times. With their continued support we aim to Rebalance and Regain ground in this new normal world. They have truly been our anchor in stormy seas.

WHERE WE STOOD OPERATIONALLY

Two distinct phases characterized the financial year 2020-21: the First Half marked by the First Lockdown and the attendant uncertainty, and the Second Half marked by the faster-than-expected recovery.

In the First Half, both sales and execution suffered. However, in the Second Half the Lucknow real estate market witnessed one of the best periods in terms of sales and enquiries. Monthly sales crossed pre-Covid level during this period. We noticed that demand this time around was from end customers. There was a distinct preference for bigger and better housing in gated communities. Low levels of interest rates on home loans also helped.

On the execution side we managed to keep our sites running through the year with all the necessary, mandated safety protocols. I am happy to share that we did not have any outbreak of Covid at our sites.

Currently, we have a project pipeline of around 13.2 msf saleable area under various stages of planning and construction. In the next two years, ten of our active projects with a total saleable area of around 4 lakh square feet will be completed. We also have a number of projects lined up for fresh launch in the current year. This gives us an adequate revenue visibility for the coming years.

NUMBER-CRUNCHING…

The financials are detailed in various parts of this annual report. During the year under review, we achieved a consolidated revenue of Rs 159.4 crore as compared to Rs 128.5 crore in FY20, representing a growth of 24% YoY. Consolidated EBITDA grew by 37.8% to Rs 74.5 crore against Rs 54.1 crore in FY20. Consolidated Net Profit stood at Rs 54.2 crore reflecting a growth of 38.4% over Rs 39.2 crore in FY20. The Company continued to stay long term debt free in FY21 as well.

We continue with our tradition of sharing the wealth created by the Company with our shareholders through high dividends. The Board has recommended a 400% dividend, i.e., J 40 per share for the financial year ended March 31, 2021.

GROWTH PLANS…

We are already exploring new land parcels around Lucknow to build a robust project pipeline. We also launched a pilot project outside our core market of Lucknow in Bareilly, which has met with considerable success. We are seeking similar suitable opportunities which meet out our investment criteria.

The real estate market is looking buoyant and is expected to benefit from the trend of people looking at upgrading their living spaces. We at Eldeco are uniquely positioned with a healthy Balance Sheet to grow our business. Our Balance Sheet allows us the flexibility to leverage ourselves at an opportune time should there be a need for capital for the next phase of our growth. We will continue to focus on mid to high income housing segment and capitalise on the strong underlying growth trends. We remain committed towards building better, sustainable, and safer living experiences for our customers.

On behalf of the Members of the Board and the Management Team, I take this opportunity to express immense gratitude to our shareholders, vendors, customers, Central and State Government bodies, investors and business associates for their continuous trust, guidance and support. A special mention and gratitude to our customers for their belief and trust in us through this difficult year. On a closing note, I would like to borrow a quote by Albert Camus - "Sometimes, carrying on, just carrying on, is the superhuman achievement."

With this, I continue to pray for the health and safety of you and your loved ones.