FLATS NEW Supply Chennai 7,060 in of H1 2019


FLATS NEW Supply Chennai 7,060 in of H1 2019

Only 29% of H1 2019 Housing Supply Qualifies for Govt. Sops in top 7 Cities - ANAROCK

  Anuj Puri, Chairman - ANAROCK Property Consultants

  • Of total 1,39,490 units launched across top 7 cities in H1 2019, only 39,840 units fall within Govt-defined affordable category criteria (60 sq. mt. carpet area & priced <INR 45 lakhs)
  • MMR saw maximum launches at 17,700 units, followed by Pune with 9,350 units; urban housing shortage in Maharashtra alone pegged at 19.7 lakh units
  • Bangalore, Chennai, Hyderabad & Kolkata together comprise just 15% share (approx. 5,820 new units) of total affordable supply
  • Nearly 2.40 lakh unsold units across the top 7 cities as on Q2 2019 are affordable but many fall outside the government's narrow 'affordable' definition – see an increase of nearly 3% against Q2 2018

Only a paltry number of developers have built housing that meets the Government’s criteria for incentivized affordable housing in 2019. ANAROCK data reveals that of the total housing supply of 1,39,490 units in the top 7 cities H1 2019, merely 39,840 units meet these criteria. The Government's recent Budget ‘bonanza’ of an additional INR 1.5 lakh tax deduction on interest repayment of home loans availed till March 2020 will benefit very few people in urban India.

To avail credit subsidy benefits along with the new Budget sops for affordable housing, a home must be priced <INR 45 lakhs and not exceed 60 sq. mt. carpet area or approx. 850 sq. ft. built-up area, including overall loading. Of the 1,39,490 units launched in H1 2019 in the top 7 cities, merely 29% of units qualify under the government-stipulated affordable category.

Of the housing shortage of 19 million units in urban India, nearly 96% pertains to the EWS and LIG categories - the target of the government's affordable housing push. As per ANAROCK research, nearly 2.40 lakh units that are unsold across the top 7 cities as on Q2 2019 are in the affordable category but many of these do not comply with the government's narrow 'affordable' definition. This unsold stock has increased by nearly 3% against the corresponding period in 2018.


City
Total New Supply in H1 2019
New Supply in H1 2019 <INR 45 lakh & <60 sq. m.
NCR
21,600
6,970
MMR
49,890
17,700
Bangalore
20,080
2,520
Pune
28,220
9,350
Hyderabad
9,000
880
Chennai
7,060
2,070
Kolkata
3,640
350
Total
1,39,490
39,840
Source: ANAROCK Research


  • MMR topped the list with the maximum launches of 17,700 units in this category. Pune came in a distant second with 9,350 units. The urban housing shortage in Maharashtra is pegged at 19.7 lakh homes.
  • NCR saw the launch of 6,950 units in this category in H1 2019
  • Bangalore, Chennai, Hyderabad and Kolkata together accounted for a mere 15% share at approx. 5,820 new units in this category in H1 2019. 
Hurdles

Unlike earlier, developers are quite keen on affordable housing, despite the lower profit margins when compared to the luxury or ultra-luxury segments. Supply follows demand - to illustrate, prominent developer Puravankara’s affordable brand Provident Housing jacked up its new supply in Q4 2018 jump to 10.59 mn sq. ft. as against 6.63 mn sq. ft. a year earlier, while Puravankara's premium housing supply saw a 5% decline over the same period.

Nevertheless, there are 'natural' barriers to deploying more supply in the government-stipulated affordable category:

  • High input costs in urban areas - High land prices in the municipal limits of the major cities (where urban affordable housing is most needed) make it unfeasible for developers to launch affordable housing projects there
  • Low buyer interest in peripheries - Lack of basic infrastructure in the peripheral areas (where housing within INR 45 lakh is feasible) discourages buyer interest, which curtails supply
  • Scarcity of land – The main ingredient for housing development is scarce in the main cities
  • Restrictive affordable housing criteria - The government has put an excessively limiting cap on what kind of housing qualifies for incentives and sops.
Solutions

Unlock government-held land for development:

Across cities, some portions of land falling under the departments of Heavy Industries, Indian Railways, Port Trusts, etc. can be released by the respective government bodies. The infusion of low-cost land will also help curtail property prices.

Revise the price definition of affordable homes in top cities:

The government must seriously consider revising the pricing of homes that fall within the affordable housing price band, city-wise. While the prescribed unit size of 60 sq. m. carpet area is fairly appropriate, the prescribed pricing restrictions are not viable across most cities except in the far-flung peripheries which lack liveability and accessibility.

If this price restriction is widened, many more homes will fall within the affordable price tag and qualify. As a result, many more aspiring property buyers can avail the multiple benefits such as lower GST rates at 1% without ITC, government subsidies and the most recent tax deduction of total INR 3.5 lakh on interest repayment of home loans. Such a boost to housing sales cannot come soon enough.



Head – Media Relations
ANAROCK Property Consultants Pvt. Ltd.
Office No. - 901 A, 9th Floor, Onyx, next to Westin Hotel, Koregaon Park,
Pune, Maharashtra - 411001
+91 9657129999


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Puravankara Net Profit for Q1 FY20 at Rs. 43 Crore, up 63%




Total Consolidated Revenue for Q1FY20 at INR 646 Crore, up 64% YoY
Profit After Tax for Q1FY20 at INR 43 Crore, up 63% YoY
Group sales up 33% YoY to INR 493 Crore
                                          

Commenting on the company’s performance, Mr. Ashish R Puravankara, Managing Director, Puravankara Limited, said, “We have begun the new fiscal on a strong note with robust sales, cashflows and net profits. The recent Union budget has provided further impetus to the real estate sector and we, at Puravankara Group, will continue to capitalize on our strong execution capabilities, trusted brand reputation and further cement our established foothold in the sector.  Our focused efforts towards sales of ‘ready to move’ inventory are reaping results.

Bringing delightful customer experience is embedded in the very DNA of our organization and with our USP of constant adaptation to changing customer demands, we have recently launched a new line of homes ‘BluNex’, which brings the smart features of home automation that redefines the home living experience.

As part of our strategy to keep bettering sustainable construction methodologies and leveraging proptech to accelerate delivery cycles and minimize wastage, this quarter saw the opening of our pre-cast production workshop at Bangalore, intended for captive consumption. 

Our new launch pipeline is on track and we are confident that each passing quarter will see better results and sustain our robust balance sheet. We look forward to the fiscal year with renewed vigor”. 


  
Operational Highlights for Q1FY20

During the quarter, the group sold 638 units, averaging almost 10 units per day. More than half of the area sold came from ready-to-move-in inventory. This is in line with the Group’s resolve of accelerating ready-to-move-in sales and paring debt levels.

Q1FY20 witnessed a total booking value of INR 493 crores compared to a total booking value of INR 370 crores in Q1FY19, an increase of 33% yoy.

In Q1FY20, brand Puravankara’s Ready-to-Move-in inventory witnessed a total booking value of INR 181 crores, as compared to a total booking value of INR 63 crores in Q1FY19, up 187% YoY. 




Consolidated Financial Performance (As per IND-AS 115) for the quarter ended 30th June 2019

• Revenues at INR 646 crores; up 64% YoY 
• EBITDA at INR 160 crores, up 49% YoY
• EBITDA Margin stood at 25% 
• Profit before Tax (PBT) at INR 65 crores, up 85% YoY 
• Profit after Tax (PAT) at INR 43 crores; up 63% YoY

Cash Flows

Customer Collections for the quarter ended June 30, 2019, were INR 441 crores; up 75% YoY.

The balance collections from sold units in all launched projects stands at INR 2,045 crores as of June 30, 2019 and compares favourably against the balance cost to go of INR 1,897 crores. Combined with the unsold receivables from launched projects of INR 4,074 crores, the projected operating surplus of INR 4,222 crores on the launched portfolio compares favourably against the current outstanding net debt of INR 2,687 crores as on June 30, 2019. 

Debt

Debt- Equity Ratio of 1.42

The weighted average cost of debt is 11.22 % as of June 30, 2019


Investor Relations
Kuldeep Chawla 
Chief Financial Officer
+91-80-4343-9999

Media Relations
Minol Ajekar 
Head - Corporate Communications
+91-80-4343-9710

DISCLAIMER:
Some of the statements in this communication may be ‘forward looking statements’, within the meaning of applicable laws and regulations. Actual results might differ substantially from those expressed or implied. Important developments that could affect the company’s operations include changes in the industry structure, significant changes in the political and economic environment in India and overseas, tax laws, duties, litigation and labour relations.


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Apprenticeship is a powerful tool to skill people and build talent.



Boosting apprenticeship is imperative to leverage the demographic dividend in the state: India Apprenticeship Forum
Chennai, 27th July, 2019:

India Apprenticeship Forum in collaboration with NETAP [National Employability through Apprenticeship Programme, India’s fastest growing apprenticeship programme offered by TeamLease Skills University in a Public Private Partnership Ministry with Human Resource Development and Ministry of Skill Development & Entrepreneurship hosted a dialogue on ‘Leveraging the power of apprenticeship for creating human capital” in Chennai today. The event witnessed corporate emphasizing the need for strengthening the apprenticeship eco-system in the state.

Held at Taj Coromandel, the discussion was graced by eminent dignitaries from the Ministry of Skill Development and Entrepreneurship - Government of India, National Skill Development Corporation, TeamLease Skills University as well as leading corporates. The key note address was delivered by Ms. Anita Srivastava, Joint Director, Ministry of Skill Development and Entrepreneurship, Government of India. The session opened with case presentations by Dr. C. Jayakumar, Vice President & Head Human Resources - Divisional Corporate, L&T Construction and Mr. M. Mohan, DGM, Rane TRW Steering Systems Private Limited.

Sharing her views on apprenticeship in India, Ms. Anita Srivastava, Joint Director, Ministry of Skill Development And Entrepreneurship, Government of India, said;Apprenticeship is a powerful tool to skill people and build talent. The government has undertaken many initiatives over the last few years to make the ecosystem more conducive for employers to adopt and execute apprenticeships. Recently many additional amendments have been made to benefit small and medium enterprises. We would urge more and more employers to come forward and take up apprenticeships to fulfil their skill requirements. India Apprenticeship Forum is good platform which is generating awareness about apprenticeship and we are hopeful that this will all lead to a positive adoption of the model by employers in the state.”

Addressing the session, Mr. Sumit Kumar, Vice President, TeamLease Skills University said, “Employability is a far greater problem than unemployment. While skill development initiatives in Tamil Nadu have been doing their bit, it is far from desirable.  Addressing the employability gap and aiding corporate to take advantage of the demographic dividend will require encouraging employers to adopt the on-the-job training module. Policy makers across the world have recognized ‘learning by doing’ and ‘learning while earning’ as a very important vehicle for tackling the skill crisis. Apprenticeships can assist employers to combat high attrition issues in the state, especially in industries like manufacturing, automotive and industrial infrastructure. It will also significantly address the skill deficit by training candidates as per industry requirements.”

The event witnessed a panel discussion moderated by Mr. Surajit Roy, Senior Head at Apprenticeship Division at National Skill Development Corporation, wherein industry leaders discussed the everyday challenges that they face. The panel comprised of Dr. Jude Xavier, Vice President & Head HR, Technosoft Global; Mr.​Sumeet Kharbanda,​Deputy General Manager, Hyundai Motor India Pvt. Ltd and Dr. A.V. Sivarama Prasad, Executive President (HRD & Services), The KCP Ltd.

The platform also had deliberations on the current state of apprenticeship as well as how the situation can be improved. According to experts apprenticeship has been a fundamental sub part of skill development across the globe. However in India, only 4% of the labor force is formally trained unlike in China which has 84% apprentices. While the government has been making efforts to make the environment conducive it’s still a work in progress. A holistic interaction, the session also witnessed corporate urging the need to bring about a shift in the way apprenticeship is practised. They called for ‘ease of doing apprenticeships’. The session also urged the need for consolidating all work based learning programs and employability schemes under one jurisdiction, and recognizing them under Apprentices ACT as well as providing monetary rewards to employers to absorb apprentices are pivotal requirements for the industry. India has 71 million registered enterprises and even if 10% of these enterprises start deploying apprentices, 7 million enterprises will make a huge impact to apprentices head count.

ABOUT TEAMLEASE SKILLS UNIVERSITY (TLSU)

TeamLease Skills University (TLSU) located in Vadodara, Gujarat, is India’s first “Skills University” established under Public–Private Partnership between the Government of Gujarat and TeamLease Services - India's largest manpower, recruitment & staffing solutions Company that has placed more than 1.7+ million people in India over the last few years. It is notified as a Private University by Govt. of Gujarat by Gazette Notification under the Gujarat Private Universities (Amendment) Act w.e.f. 22nd April’ 2013 and is promoted by TeamLease Education Foundation. In FY2015, TeamLease rolled out NETAP (National Employability through Apprenticeship Program) to provide on-the-job training to unemployed youth. TLSU aims to provide a holistic education through traditional & non-traditional programs focusing on academic, vocational, professional, technical and life skills – all aimed at making graduates “job-ready” from day-1. TLSU vision is to contribute to workforce productivity, socio-economic development and social harmony through well rounded and industry relevant educational programs with employment at the heart of academic offerings, technology at the heart of operation and academic mobility as the focus deploying inclusive, distributed and low cost delivery methodology.

ABOUT INDIAN APPRENTICESHIP FORUM

India Apprenticeship Forum is the first and the only, online, independent , nonprofit platform created to deliver the much needed clarity on apprenticeships and vocational skills training as crucial pathways to address the country’s skills challenges. The IAF has its finger on the pulse of skill building and its many facets across sectors such as manufacturing, Retail, e commerce, Logistics, Hospitality, Health Care to name a few.  IAF mission is to become a change agent in the way employers perceive apprenticeships. IAF is one-stop repository of comprehensive, impartial and industry relevant material to engage, educate, debate and discuss the latest in apprenticeships and vocational skills.

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YES BANK's Smart Edge : MSMEs Now avail Loan from Rs. 1 Cr to Rs. 3 Crore, based GST Returns & Bank Statements only..!


YES BANK launches Smart Edge, an industry first surrogate lending program for MSMEs

MSMEs can now avail secured loanfrom Rs. 1 Cr to Rs.  3 crore, based on their GST Returns and Bank Statements only

·       No financial statements required
·       Collateral security as low as 85% of the loan amount
·       Quick Access to Incremental Funding upto Rs. 3 crore

 YES BANK, India’s fourth largest private sector Bank,announced the launch ofits lending program, Smart Edge for Micro, Small and Medium Enterprises (MSMEs). Through this first-of-its-kind, industry first program, an MSME can avail secured working capital limits from Rs. 1 - 3 crore in form of Overdraft (OD), Letter of Credit (LC) andFinancial Bank Guarantees.

Smart Edge,a YES GST initiative is a first of its kind surrogate lendingmodel wherein no financial statements will be required and credit appraisal will be done basis data-points pulled from GST returns and operative Bank accounts of the MSME. A scorecard running in the background will analyze credit indicators from both the sources individually and willfactor in the interplaybetween the two as well.Basis the score generated, the collateral cover requirement will be ascertained which will start from 85%.

Commenting on the launch, Mr. Rajan Pental, Senior Group President and Head, Branch and Retail Banking, YES BANK, said,“Understanding the significant role of MSMEs in the growth and development of the country, YES BANK has been at the fore front of providing financial solutions to the MSME sector. We are committed to harnessing the power of data & technology to create easy access to finance for the MSMEs and the Smart Edge program will enable simple and faster processing of credit for our customers.”

MSMEs can apply through any of the Bank’s branches, following which a YES BANK representative will get in touch with the applicant. In terms of essential documentation, MSMEs need to submit GST returns, operative bank account statements for last 12 months for assessment along with hygiene documents such as KYC in order to avail this facility. Collateral acceptable to the Bank will be taken as security for the loan.

YES BANK had launched ‘YES GST program’ in 2018 to help MSMEs understand the impact of the changes and prepare them for migration to the new GST system.



YES BANK in line with its Responsible Banking ethos is committed to supporting the MSME sector and giving it the much needed thrust to put it on a sustainable growth path. Early this year in January, the Bank had also conducted an in-depth five months survey covering over 2,700 MSMEs across 20 industries from all over the country, to analyse the impact of digitization on Indian MSMEs. 

The study, titled Impact of Digitization on MSMEs – the first large survey of its kind, identified key drivers for digital adoption by MSMEs, as well as barriers and recommended measures for greater adoption of digital technology.

YES BANK has been playing a pivotal role in strengthening the MSME sector, testimony to which is the recent recognition as the ‘Best Bank for Small and Medium Enterprises (SMEs) - India’ at the Asiamoney Country Awards 2018 and 2019,organized by Asiamoney, one of the leading global financial institutions as well as ‘SME Bank of the Year – India’ at the Asian Banking & Finance Retail Banking Awards, 2018 and 2019.

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SEBI’s New rules for Debt Mutual Funds: What does it mean for Investors..!


SEBI’s New rules for Debt Mutual Funds: What does it mean for Investors..!
 By Mr. Raghav Iyengar,  CEO, Indiabulls AMC

The recent credit events had led to an increase in liquidity risk of mutual funds.
Till recent times, investors had been considering debt mutual funds to be a proxy to traditional investment products. 
However, certain market developments, including corporate defaults, hurt investors’ trust and confidence on mutual funds as an investment product. 
Mr. Raghav Iyengar,  CEO, Indiabulls AMC
In a bid to sustain investors’ trust and to further safeguard the investor interest, SEBI in its board meeting held on June 27, 2019, had taken several decisions with respect of risk management framework of liquid funds, including prudential  ..



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