MESSAGE TO SHAREHOLDER
Dear Shareholders,
India's economy is undeniably basking in a golden era, solidifying its position as the
world's fifth-largest economy in 2023 and poised to claim the coveted spot of the
third-largest economy by 2027-28, as projected by the esteemed International Monetary Fund
(IMF). This exceptional growth trajectory is underpinned by a surge in government-led
capital expenditure, particularly in the thriving infrastructure sector. With the easing
of retail inflation levels, the Reserve Bank of India (RBI) can maintain a pause on policy
rates, which have experienced a substantial increase of 250 basis points since May 2022.
Additionally, the recent relaxation in steel prices has provided a much-needed respite for
the construction and real estate industry, ensuring stability in input prices. This
confluence of favourable factors paints a compelling picture of India's economic prowess
and beckons investors to partake in its boundless opportunities. India's growth has
outperformed the rest of the world and has emerged stronger post the pandemic and ongoing
geopolitical conflict mainly due to the sustenance of strong domestic demand and
government policies. MICL group has been beneficiary of such momentum in demand which
could be witnessed through our financial performance.
The financial year 2023 has been one of the most eventful years in the history of MICL
Group, where the company has achieved a significant number of milestones, in a single
year. MICL has achieved record growth in reporting nearly a two-fold jump year-on-year in
consolidated revenue from operations of Rs. 1,890 crores in FY 2023. MICL's net profit for
FY23 rose by 20% year-on-year to Rs. 259 crore. Without the BOT claim income from FY22,
the net profit increased by 137% year-on-year.
We have recorded one of the strongest collections this year of Rs. 1,448 crores. This
year, our company has set the bar higher again by delivering not only one or two projects
but five, in an attempt to break the records in the real estate industry. We have
delivered three residential projects and two commercial projects in the year 2022-2023.
First, ‘Aaradhya High Park', located near Dahisar check-naka, was delivered on
November 2022, where we handed over four residential towers, out of a total of six.
Secondly, we delivered a commercial tower named ‘Aaradhya Primus' at the same
location near Dahisar check-naka.
We delivered the tallest tower of Vikroli ‘Aaradhya Eastwind', measuring 34
storeys, 17 months before the timeline. We have also delivered another residential
project, ‘Aaradhya One Earth', which is located at Ghatkopar East, in January of the
year 2023, where we completed and delivered two residential towers out of seven and one
commercial tower named ‘Aaradhya Square'. Our latest completion also included a
luxury collection project, ‘Insignia', which is located at Vile Parle West.
At the heart of our endeavors lies our steadfast commitment to delivering the finest
quality of construction, encapsulating the essence of our company's legacy. Guided by our
motto of "live better," we continuously strive to create an unparalleled
uber-luxury real estate experience that places our customers at the forefront. Embracing
this philosophy, we take immense pride in our accomplishment of delivering not just one,
but five remarkable projects. This milestone stands as a testament to our unwavering
dedication and sets a new record for our company, having seamlessly delivered
approximately 7.1 lakh square feet of carpet area, all ahead of schedule by a minimum of
12 months. Rest assured, our relentless pursuit of excellence remains unwavering, ensuring
that you, our esteemed customers, continue to enjoy a truly extraordinary living
experience.
Our in-house construction team, with over 50 years of experience, helps us in shaping
our ideas into reality. This integrated business model of in-house EPC and real estate
development, not just enhances our productivity of delivering projects ahead of the time
schedule, but helps us in crafting spaces with e_iciency and excellent quality of
construction. This in turn adds us, in improvising our cash flows and getting robust
collections.
During the financial year of 2023, we have launched three new projects across different
categories, with a carpet area measuring 7.2 lakh square feet breaking our own records of
new launches in a single year. We launched the ‘Aaradhya Parkwood' project measuring
around 3 lakh square feet of carpet area, which is located near the Dahisar check-naka,
where we are targeting the middle-income and the upper-income segment. MICL Group has also
launched an ultra-luxury project in the vicinity of Juhu called ‘Aaradhya Evoq'
targeting higher-income group.
In our other ongoing project at Mulund, naming ‘Atmosphere O2', we have recently
launched a new tower measuring approximately 3.2 lakh sq.ft. targeting premium segment.
During the financial year, we sold 4.3 lakh square feet of carpet area, across all our
ongoing projects, with a sales value of INR992 crores. In this approximately 60%, of the
sales were contributed by our new projects launched during the year. Among our upcoming
real estate projects is 'Aaradhya Avaan,' our upcoming ultra-luxury residential project in
the esteemed Tardeo region of South Mumbai. Spanning an impressive 6.5 lakh square feet of
carpet area, this remarkable endeavor is poised to make history as India's tallest tower.
Designed to be an architectural icon, it promises to redefine the global skyline. With
our unwavering commitment to excellence and a track record of delivering projects ahead of
schedule, we are confident in achieving this visionary feat. Having obtained the necessary
height approvals, which exceed 300 meters, we are proud to announce that the launch of
this prestigious project is imminent. We are creating a landmark development that will
captivate discerning buyers and set new standards of luxury living. We have acquired most
of the approval for the launch of this project and we shall hit the market soon.
MICL Group recently announced to development of a luxury residential project at
Ghatkopar East, Mumbai under cluster development having saleable carpet area of approx. 4
lakh sq. ft. Currently, our real estate portfolio comprises around 2.0 million square feet
of carpet area for ongoing projects and 2.6 million square feet of carpet area for
upcoming projects and those in the pipeline, catering to diversified customer groups,
locations and categories, ranging from the mid-income segment to the uber-luxury. The
company's EPC order book as on 31st March 2023 stands at Rs. 980 crore
comprising 110 hectares of ports and 4.2 million square feet of ongoing residential,
Government & commercial projects.
Recently, in June, 2023 Company bagged another EPC order worth Rs. 680 crore (inclusive
of GST) as a part of phase 2 infrastructure works from Bharat Mumbai Container Terminal
Private Limited (BMCTPL) a subsidiary of PSA group, for pavement works on reclaimed earth
on fourth container terminal at JNPT, Navi Mumbai. In addition to the current order book,
the construction work for any new real estate development projects will also be executed
in-house. Going forward, this would strengthen the order book.
In our international realty portfolio, in the last fiscal year, our subsidiary company
MICL Global, in a joint venture launched ‘Edition Residences', the first branded
project by ‘Marriott International' at the location of Fort Lauderdale. The project
measures 1,75,000 square feet of saleable area and is seeing excellent response from
customers and seeing a very good footfall, at our sales office. Our other projects such as
Urbin at Miami Beach and Ponce at Coral Gables are in the initial stages of approval.
The company consistently focused to reduce debt and improve liquidity, which has helped
in maintaining balance sheet strength. In FY 2023, there has been consistent debt
reduction in each of the four quarters mainly through internal accruals with good
profitability and strong collections, which have resulted in a significant secured debt
reduction of INR313 crores in FY 2023. The company continues to be net cash positive and
has liquidity of INR300 crores plus, as on March 2023. Going forward, we will continue to
undertake projects with a sharp focus in further improving profitability and maintaining
balance sheet strength. We will continue to work on the asset light model of capital
conservation. Many of our ongoing projects are expected to be delivered this year which
will add to cash flows. We also have a promising launch pipeline for FY 2023-24 that will
strengthen the real estate vertical and also the in-house real estate EPC order book. The
government capex cycle in infrastructure and continued demand momentum in real estate is
likely to have a robust growth trajectory.
As we reflect upon a year filled with accomplishments and milestones, I am honored to
express my deepest appreciation to our dedicated employees. Your unwavering commitment and
tireless efforts have been the driving force behind our success. It is through your hard
work and unwavering dedication that we have achieved remarkable results and surpassed
expectations. To our esteemed shareholders and valued stakeholders, I extend my heartfelt
gratitude for your enduring trust and support. Your confidence in our vision and
unwavering support have been instrumental in our growth and prosperity. Together, we have
forged a powerful alliance, and I look forward to embarking on another successful journey
in the years to come.
Warm Regards,
Manan Shah
Managing Director.