Arihant Superstructures Limited (506194) Earnings Call Transcript & Summary

Dear members, very good morning. I Govind Rao, Company Secretary and Compliance Officer of your company, delighted to welcome all of you to the 37th Annual General Meeting of our company, Arihant Superstructures Limited, which is being held through audio/video conference and other audio/video visuals as [ recommended ] by Ministry of Corporate Affairs [Technical Difficulty] It is a great honor and privilege to welcome all of you on behalf of the Board of Directors of the company. On behalf of the Board members and the company, I would like to take this opportunity to thank all of you for becoming a part of this important meeting. Before we process the AGM, further, I may like to introduce Board of Directors of our company. Mr. Ashok Chhajer, Chairman and Managing Director of the company, is personally present here. I request Mr. Ashok Chhajer to provide the confirmation that we are audible.

Yes. You're audible.

Thank you, sir. Next is Mr. Nimish Shah, the Whole-time Executive Director of the company is also personally present here. I request Mr. Nimish Shah to provide the confirmation that we are audible to him. Nimish?

Yes.

Okay. Next is Mr. Deepak Lohia, Chief Financial Officer of the company, is personally present here. I request Mr. Deepak Lohia to provide the confirmation that we are audible.

Yes. We are -- you are audible.

Thank you, sir. Next is Mr. D. A. Kamat, representating D. A. Kamat & Co., the secretary of the company. He's also personally present here. I request Mr. Kamat sir to provide the confirmation that we are audible to him.

Yes.

Thank you, sir. Now I would like to give you an overview of the process to participate through video conferencing. The AGM has been conducted through video conferencing or either with audio/video visuals only without the presence of state quorum at a common venue as per the MCA circular issued in this respect along with the provisions of the Companies Act 2013 and SEBI Regulation 2015. The registered office of the company is due to be the venue for the AGM. The company has facilitated for e-voting. Hello? Am I audible?

Yes. You're audible.

The company has facilitated for e-voting on the agenda items, along with the facility for participation at the AGM through NSDL's website and e-voting platform and the proceeding of the meeting can be viewed by nonvoting and ordinary members through the company's website via a one-way live webcast. The detail for e-voting and participation in the AGM through video conferencing are already circulated to all the members, along with the notice of the AGM. The members who have not cast their vote on the agenda items may cast their vote electronically. E-voting is now open from the start of the AGM and will be now kept open for the 30 minutes for the conclusion of the AGM. Members who have registered themselves as a speaker for asking questions during the AGM will be called upon to speak. Members joining through video are requested to ensure sufficient bandwidth and keep their cameras on when asking their questions. Members may state their names, customer ID, folio number before asking the questions. Only who have registered themselves as a speaker shall be permitted to ask question and speak in. The Chairman shall at their discretion rely to the queries put forth by the members and [Technical Difficulty] of the meeting. The company shall [indiscernible] in case of any audio lag due to poor condition. The company shall proceed with the next question or speaker member. Every speaker will be given maximum of 2 minutes each to ask their question or state their comments. Please note that the participants connecting from mobile devices or tablets, or through laptop connecting via [Technical Difficulty] may have fluctuation in their side. So therefore recommended to use stable Wi-Fi or LAN connection to mitigate any kind of unfortunate glitches. All resolutions at the AGM are for members approval through e-voting and remote e-voting. Remote e-voting on these resolutions have already concluded, there is no requirement to propose and second the resolution at the AGM. Ms. Divya Momaya ma'am, the Independent Woman Director of the company, is also present here. Ma'am, can you provide the confirmation that we are audible to you?

Yes. We are -- I mean, you all are audible, and I hope I'm also audible.

Yes, ma'am. Thank you, ma'am. All resolutions at the AGM are proposed for members approval through e-voting and remote e-voting as remote e-voting on these resolutions have already concluded, there is no requirement to propose and second the resolution at the AGM. Now I request Mr. Ashok Chhajer [Technical Difficulty] speech for the shareholders. Ashok, sir?

Welcome, everybody, to the AGM. And we wish and hope that you all keep safe with your families and have passed through the era of COVID. And as the economy is spinning back, everybody is in the momentum of that have the businesses, wish you all good luck. And the annual results for the past year, it was only the 15 days which is affected by the COVID and has been complementing to achieve its sales figures of the past year also, and we have been able to get to set -- secure that down by marginally INR 8 crores. Of note, in this COVID period, though everybody was very much feared about the -- and our whole workforce has been at the front foot, and they could see that they produced good results, a time when we have seen that major of the people are -- major of the companies had cut their costs by reducing their workforce by giving pink slips. This was the time when we recruited a good number of people around 20 to 25 people that we recruited in this last 4 months, and going forward also, we are increasing our workforce. There's a good business opportunity for us and for our company going forward. The company's business development team is carefully powering around the opportunities in the market. And by the year -- next financial year, we should be able to get new projects on the platter. The past year, we did a few launches. And this year also with the approvals if it comes in place in time, we would be able to do the 3 to 4 launches in the existing land parcels where it is being done piece-on-piece basis. And what we look forward is that the team has given a very good response. And the sales figures have been astonishing. It would reflect up in the Q2 numbers. These are good, pretty high than the normal. Though our labors have started coming back in this month, September, and we think that by October, all the projects, all the sites will be functioning at its full speed and normal speed. Substantial decision has been taken by the managing committee to have good efficiency in the subsidiary companies as well as in the main company. And for the -- this year, this quarter, we have tried to bring in efficiency in construction by setting up the construction division for one of the largest project Arihant Aspire, and some foreclosure agreements with the earlier contractors have been done. We feel that it would be, and we will be able to achieve the same numbers and figures near to it in the end of this financial year. Great support from all the markets and from all the shareholders also. Looking forward for sustainable and continuing stability in the current years. Over to you, Govind.

You are on mute, Govind?

Yes. I would like to inform our shareholders that our Independent Director, Mr. Virendra Mital has also joined the meeting from his residence situated at Navi Mumbai through video conference. Mr. Virendra Mital, sir, I request you to please provide your confirmation that we are audible to you. Hello?

Hello? Yes. I can hear you.

Yes, sir. Yes, sir. Okay. Thank you, sir. Next is Mr. Saurabh Chouhan, the Statutory Auditor of the company, is also joining the meeting through video conference from his residence situated at Mumbai. I request Mr. Saurabh Chouhan to provide the confirmation that we are audible to him. Saurabh, sir. Sir, can you hear us, sir? Hello? Saurabh, sir?

Yes.

Yes. Can you hear us, sir?

Yes, yes.

Okay. Thank you, sir. Okay. Thank you, Ashok sir. And please note that the requisite quorum for the meeting is present. So the meeting is in order. And now I invite Mr. Deepak Lohia, the Chief Financial Officer of the company to please provide some highlights on the financial aspects of the company.

Hello, everyone. Am I audible to you?

One minute, sir.

Hello, everybody. Am I audible to you?

Yes, sir.

Thank you. Dear shareholders, I welcome all of you for this 37th AGM of Arihant Superstructures Limited for the financial year ended March 31, 2020, and take this opportunity to thank you for your support and faith you have in Arihant Superstructures Limited. I took over as CFO of the company from February 2020, and it is my privilege to address you today. The present scenario of real estate market. Indian real estate market has been passing through the toughest environment in recent history, after demonetization, which catch everyone by surprise than RERA and GST, which introduced in 2017. All are pathbreaking and good for long term, but created changes in short term. All these changes were advantage to large organization player like us. But when there is a flow in market overall. We do get affected to the action as the market started to look up. Early in 2020, we were hit by pandemic, which created an unprecedented shutdown and company disruption of business for everybody. Since June 2020, we have been able to bounce back well and the credit goes to our visionary CMD Sri Ashokji Chhajer and our dedicated employees as well as without their support, we would not have [Technical Difficulty]. Our reading is that affordable housing segment would be the first to bounce back well and the customer inquiry at our end also prove that point. After being confined to their home during the pandemic and many still continuing to work from home, the need for bigger house with modern amenity within the home as well as within the complex will ensure quicker conversion. Important thing to note here is that distance from work place is no longer a priority factor compared to living condition, amenity and space. On positive note, recently, there is announcement by state government of Maharashtra for reduction in stamp duty by 2%, which saved a significant amount for prospective customers who earlier postponed to buy flat now can take quick decision to save significant amount toward stamp duty to stable. With this, let me give overview of the financial of Arihant Superstructures Limited for the FY 2019/'20. During the year under review, the revenue from operations of the company for the year ended 2019/'20 is INR 237.62 crore as against INR 242.84 crore on consol basis. The profit after tax for FY '19/'20 on consol basis is INR 11.05 crore as against profit after tax for the '18/'19 was INR 18.3 crores. The revenue from operations on a stand-alone basis for the year '19/'20 is INR 61.19 crore as against INR 70.62 crore for the previous year. The profit after tax for the FY '19/'20 on a stand-alone basis, loss of INR 1.41 crore as against profit after tax is INR 2.42 crore for the previous year '18/'19. Thank you for your patience. And with this, I hand over the proceedings to our Company Secretary, Mr. Govind Rao.

Thank you, Deepakji. Dear members, the annual report for the financial year ended on March 31, 2020, along with the notice of AGM has been already circulated to you. Now with the permission of the members, I take the notice and financial statement as I read out the resolutions for the benefit of the members. Resolution #1 is for adoption of financial statement for the financial year 2019/'20. Resolution #2 is to appoint Nimish Shah as a Whole-time Executive director liable to retire by rotation and to fix his remuneration. Resolution #3 is for appointment of Mrs. Divya Sameer Momaya as an Independent Woman Director of the company. Resolution #4 is for appointment of Mrs. Sangeeta Chhajer as an Executive Woman Director liable to retire by rotation and to fix her remuneration. Resolution #5 is to raise funds to issue of securities up to an amount not exceeding INR 300 crores, including premium, if any. Resolution #6 is to approve the proposed material-related party transaction for the financial year 2020 and '21. Now with the permission of the Chairman, I would like to call out the names of the members who have registered themselves as a speaker at the AGM. Is there any speaker available?

Did you say something to me, Govind?

No, sir. No, sir.

Okay.

Sir, we are checking for the speakers.

Okay.

Just hold for 2 minutes.

I would wish the senior directors and the Board of Directors to express themselves and address the forum and the shareholders of Arihant Superstructures Limited. Over to you, Mital, sir.

You're on mute, sir. Mital, sir.

Hello. Can you hear me?

Yes.

What was it that you said last?

Mital sir, you can address the stakeholders on behalf of the company.

Okay. What happened -- let me just put it on record that the efforts that have been made by the team and the systems which are already put in place, they are going to see that company's stake through. We have absolutely a great cracking team. I think the Chairman might have mentioned that last -- in 1 month itself, last month, though we just -- we are still in the COVID that we have done 113 sales of flats, which is very, very commendable. I would like everybody to give a round of applause here. So all of you, dear residents, shareholders, that there is a -- there are very, very good times to come. And as you might believe, the company is growing under the stewardship of Mr. Ashok Chhajer, who's a very, very able leader, who has proved again and again. In the past so many years that I've been on the Board that he has shown new horizons, new opportunities and being able to see the company sail through very difficult time. So we are very, very -- the Board is very confident, and we are sure that there are better days ahead. So please do believe in us and the Arihant team, and we'll definitely show a much better results and better rates probably very soon in the next year. Thank you.

Hello? Am I audible?

Over to Divya ma'am.

Sir, some of the shareholders -- sir, we have 3 shareholders who are registered as a speaker to speak at the AGM and ask any query. So they are facing some technical issues. We are solving their technical issue. Once they log in, I'll inform you. So the Chairman or CFO may add their description, answer their queries.

I would request our senior Mr. Raj Narayan Bhardwajji to address the forum. And then Divya ma'am also -- Divya Momaya ma'am to address after that. Bhardwajji?

Hello? Bhardwajji?