Dear Shareholders,
It gives me immense pleasure to present to you Signatureglobal's first annual report
after its successful IPO. FY 2023-24 was indeed a milestone year for the Company, which
made a strong debut on the stock exchanges. I am happy to share that the shares of the
Company listed with 15.5% premium at INR 445 per share on the Bombay Stock Exchange (BSE),
as against the issue price of INR 385 per share. The IPO was subscribed 11.88 times in
total. The retail investors' portion was subscribed 6.82 times, while the
Non-Institutional Investors' (NII) portion booked an impressive 13.54 times, and Qualified
Institutional Buyers' (QIB) quota was subscribed 12.71 times.
This stellar feat would not have been possible without your sustained support and trust
in the Company, and I would like to take this opportunity to thank each one of you on
behalf of the entire Board.
I would also like to take a moment here to underline the importance of this achievement
for the Company's singular focus on nurturing its philosophy of "Apna ghar to apna
hota hai". The IPO has given new wings to our efforts to help millions of Indians
realise their dream of owning a home. We firmly believe that the emotion connected with
owning a house is unparalleled, and that every person should enjoy
the feeling of having a home of their own instead of living in a rented home. We are
continually striving to build independent, more spacious homes for independent
individuals, where they can enjoy life to its fullest. The success of our IPO has
empowered us even better to accomplish our overarching goal of making ‘apna ghar' a
reality for people.
A YEAR OF ROBUST PERFORMANCE
While the IPO marked the biggest success for the year, FY 2023-24 proved to be
remarkable for Signatureglobal in many more ways. Our robust operational and financial
performance was led by a strong momentum in sales, and absorptions also remained positive
in line with our new launches. Our performance manifested our firm commitment to
delivering high-quality products and amenities in the mid-housing and premium segments.
The launch of our first premium project - DE-Luxe DXP, during the last quarter of the
financial year was an iconic achievement, contributing extensively to our sales figures.
The project received a positive response as we had successfully sold most of the inventory
before the end of the quarter. It enabled us to boost our per square foot sales
realisation, which exceeded INR 11,762 a foot during the year under review. The project,
for which we received 5,400 number of applications, was subscribed a stupendous 5.4X,
underscoring our strong quality credentials. The development work on the project has
already started and we are close to appointing a general contractor to take on the bulk of
the development load.
We also launched our first luxury project in Sector 71, Gurugram - an extremely key
micro-market location for the Company, in Q1 FY 2024-25. The project, Titanium SPR, is in
the early stage of development activities and will give us a stronghold in a prime area
and an important development corridor of Gurugram.
Our sustained focus on excellence and innovation drove our growth journey during the
year, enabling us to meet, and even exceed, the expectations of our clients. Coupled with
our strategy of offering the right price, right size and right location real estate
products in each segment, this helped strengthen the Company's market position. Overall,
we have grown at about 62% plus sales CAGR over the last four years, which gives us
confidence that we will achieve our target of 35% plus sales growth in FY 2024-25.
DRIVEN BY CORE CAPABILITIES
Our investments in our core capabilities emerged as a key enabler of our growth and
performance excellence during
FY 2023-24. We focussed extensively on investing in the areas of land inventory, sales
and distribution machinery, along with project development and quality. We further
strengthened our ability to successfully leverage government policies, which, backed by
our standardised development strategy and designs, efficient in-house project execution,
and quick turnaround, continued to lend us the marketing and industry-leading edge as a
reliable player of repute in the realty landscape of northern India.
I am pleased to share that we have consistently been able to leverage our established
brand and quality product offerings to sell units within our projects relatively early in
the project development period, including through pre-sale. This has provided us with cash
flow for our operations and enabled us to maintain low indebtedness, thereby ensuring a
higher return on investment and enhanced stakeholder value creation. It has also powered
our evolution as one of the most reliable players in the real estate industry.
FOCUS ON RESPONSIBLE GROWTH
At Signatureglobal, we believe responsible growth to be the cornerstone of sustained,
long-term progression for the Company and its stakeholders. We have consciously adopted
sustainable best practices and considerations in the design and construction of our
projects. We have implemented environment-friendly building concepts in many of our
projects, and take continuous measures to build on our green edge. I am proud to share
that we are an EDGE Green Building Developer in the affordable housing segment in
Delhi-NCR. To be EDGE certified requires a minimum projected reduction of 20% in energy
use and water use, among other requirements, as benchmarked against a standard local
building. This places us in the top echelons of the Indian realty players focussed on
sustainable development.
Societal development is another area in which we are concertedly progressing to make a
positive impact on lives in underprivileged communities. We have initiated several CSR
projects through the Company's philanthropic arm - the Signature Global Foundation, which
is an initiative close to my heart. The Foundation's emphasis is on quality education,
skill upliftment, and transformative initiatives for the underprivileged, and we remain
committed to driving meaningful change through our programmes to create a better future
for all.
POSITIVE FUTURE OUTLOOK
The real estate sector is geared for a major transformation following the reforms
introduced in the budget for FY 2024-25, and these are likely to create a more favourable
environment for home seekers. Overall, the budget reforms are anticipated to bring
significant changes, influencing both investors and homebuyers in the real estate market.
FY 2024-25 has already kickstarted on a positive note, with the residential real estate
market in Delhi-NCR, particularly in Gurugram, continuing to display impressive growth.
Notably, this growth has been focussed in the territory areas of Delhi-NCR and the
micro-markets of Gurugram, like Sector 71 on the Southern Peripheral Road, Sector 37D at
Dwarka Expressway, and south of Gurugram in the Sohna region. These three areas have
become focal points of development, attracting both developers and homebuyers with their
strategic location and promising infrastructure development.
Capitalising on this growth trend, we plan to invest strongly in FY 2024-25 on the
construction of various housing projects. We are getting ready to launch a fairly large
project in Sohna to target the mid-income strata of society. With our continued focus on
timely project delivery, we are also eyeing expansion into Delhi and Noida markets in the
coming years.
Our efforts will continue to be geared towards delivering unparalleled customer
experience of living and working in landmark Signature properties, through strong
attention to detail, superior quality, maximisation of resources, and elegant aesthetics.
Even though we are still young as a company, we believe our rich and diversified presence
across several core sectors in the real estate arena equip us to make a mark in the annals
of Indian real estate in the years ahead.
Having witnessed a strong subscription trend on our project launches in the past year,
we are now looking at an even more robust trend in FY 2024-25, with an estimated launches
of INR 160 bn. Owing to the generous response, we expect sales growth of >35%, driven
by INR 100 bn in pre-sales. We also anticipate an operating surplus of 45% of collections
(to the tune of INR 60 bn). Our aim will be to focus on completions, yielding higher
revenue recognition for the coming year, with INR 38 bn of revenue recognition.
On this note, I would like to thank all of you, as well as our partners, employees and
clients for reposing faith in the Company's robust credentials and capabilities. I look
forward to scaling new frontiers of growth with your continued support and confidence.
| Pradeep Kumar Aggarwal |
| Founder and Chairman |