Govt. to invest Rs 10,000 crore in an AIF for providing debt financing to stalled housing projects.
by Suman Gupta
BSE And NSE listed, Real Estate Giant, Karda Constructions Ltd., with Presence across all segments – Low, Medium and Premium, has achieved a turnover of Rs114.12cr in FY20 as compared to a turnover of Rs105.30cr in FY19, thereby achieving growth in turnover by 8.37% over the last Fiscal Year. The company has successfully delivered over 1 mn. sq. ft. Carpet Area.
Karda Constructions Limited posted good income, sales volume and collections during FY20 despite challenges thrown by Covid-19 during last fortnight of the fourth quarter.
Despite lockdown, disrupted demand outlook and complete washout of economic activities in the real estate sector, the company announced recently, that they we were able to achieve 80% of sales turnover during Q4FY20 as compared to Q4FY19. Also, we have achieved turnover of Rs114.12cr in FY20 as compared to a turnover of Rs105.30cr in FY19, thereby achieved growth in turnover by 8.37% over the last Fiscal Year, said Mr. Naresh Karda, CMD.
“Demand has remained consistent where we operate in spite of uncertainties of the Pandemic. We continue to enjoy sufficient liquidity from banks/ Fl to meet our obligations. With our continuous focus on efficient cash flow management, we were able to improve our Debt Equity Ratio to 0.96 for FY20 as compared to 1.36 for FY19 by reducing our net debt and average interest cost of borrowing,” company said in its filing for exchanges.
The pandemic has opened a new era of selling real estate. Priorities of people have also changed, and they now have realized the importance of owning a home, especially the ones that can guarantee safety and security.
The company said that its focus would be on improvising the processes, adaptable approach in business, use of technology & online and digital platforms and cost optimization for better performance and for reaching out to the millennial that constitute the larger part of buyers.
Recently, FM Sitharaman says she has already spoken to State Bank of India and Life Insurance Corp. The total size of the fund, after investment from SBI and LIC to be Rs 25,000 Cr, says FM Sitharaman.
Relief is not limited to Rs 10,000-crore or Rs 25,000-crore support. It’s a window we have opened for support until such time as stalled projects come out of distress, says FM Sitharaman.
The Union Cabinet has cleared Rs 10,000-cr investment in an alternative investment fund (AIF) to enable delivery of 1,600 stuck real estate projects (with 458,000 housing units) in the middle and low-income housing categories.
Karda has its business model similar to Listed NBCC and is expected to bag several Govt. Projects under priority housing including Police Housing, PMAY, etc., whereby profitability of the company will go up substantially.
Importantly, Projects under NPA, NCLT proceedings can also get funding. This is a new development as the earlier announcement of Rs. 20000 Cr stressed realty fund for stalled projects (announced in Sep 2019) was only for non-NPA and Non-NCLT projects.
First Generation Construction Company in Nashik with a disciplined and professional approach:
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Founded by promoter Mr. Naresh Karda in year 1994
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Incorporated in 2007 as Karda Constructions Private Limited
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Promoter has experience of more than 2 decades in construction industry
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Establish and strengthen brand name as “Hari” brand”
Core Business Activities
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Real Estate Development – Residential Projects and Residential Projects cum office space
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Construction Contracts
