Strategic vision. Enduring achievement.
Dear Shareholders,
This year has showcased our growth, strategic foresight, and commitment
to excellence, solidifying our position as one of the leading real estate developers in
the Mumbai Metropolitan Region (MMR).
The global economic landscape presents a mixed bag for the real estate
sector. While developed economies are experiencing moderate growth and shifts in market
dynamics, emerging markets like India offer significant growth potential. Strategic
investments, regulatory support, and innovative practices are key to navigating these
changes and capitalising on the opportunities in the market.
Amidst global dynamics, India stands out with a revised upward growth
forecast. This impressive performance is driven by robust private consumption and improved
rural prospects. Our economy has demonstrated remarkable resilience, consolidating its
post-covid recovery with strong fiscal and monetary policies ensuring economic and
financial stability. Policymakers have effectively managed inflation, stabilised interest
rates, and maintained a conducive environment for business growth. The government's focus
on infrastructure development, digitalisation, and regulatory reforms has further
strengthened the foundation for sustainable growth.
Our robust performance
Marathon NextGen Realty Limited has delivered a robust financial
performance this year. Our Revenue from Operations for FY24 stood at H705 Crores, a
marginal decline of 2% from H717 Crores last year. EBITDA increased from H293 Crores to
H309 Crores, with healthy EBITDA margins of 41.4% in FY24 as compared to 38.6% in the
previous year. Profit after Tax (PAT) rose to H169 Crores as compared to H124 Crores in
the previous year.
The healthy collections and cash flows were used to reduce our Net Debt
from H838 Crores to H 751 Crores, improving our debt-to-equity ratio to 0.75 from 1.07 in
the previous year. This financial prudence ensures that we remain well-positioned to
capitalise on future opportunities and navigate any unforeseen uncertainties.
In terms of volumes, this year, we sold 5.6 lakh square feet thus
registering a remarkable 24% growth over the previous year, and achieving a record booking
value of H817 Crores and collections of H695 Crores. These figures underscore our strong
market position and the trust our customers place in us. Our average realisation per
square foot for commercial spaces was approx H 19,000, a marginal decline, while
residential spaces averaged H12,200, a substantial increase. These robust figures reflect
the high demand for our projects.
Our strategic advantages
The Indian economy has become a prime destination for incremental
capital inflows, particularly within the real estate sector. This sector is attracting
significant investment due to its potential for high returns and the robust demand for
residential and commercial properties. Within the real estate landscape, the Mumbai
Metropolitan Region (MMR) stands out as a convergence point for investors and developers,
driven by its strategic location, well-developed infrastructure, and economic vibrancy.
Property prices in MMR have increased by 5-10% over the previous year, reflecting strong
market fundamentals.
With our strategic positioning in MMR, we are uniquely poised to
capitalise on these favourable market dynamics, leveraging prime locations, strong brand
recognition, and innovative projects.
Additionally, the shift towards trusted brands is gaining ground in the
real estate market, which points to our advantage. Demand continues to exceed supply,
leading to surging realisations and the consumption of surplus unsold inventory, resulting
in the lowest inventory levels in recent times. Despite a lot of planned supply, demand
remains robust, fuelled by higher disposable incomes and a growing preference for
high-luxury and high-amenity projects.
Trusted brands like us command a premium due to the trust deficit among
buyers. As more buyers gravitate towards transparent & listed developers, our strong
brand and reputation further solidify our market position.
Moreover, regulatory reforms such as RERA and GST have significantly
enhanced transparency and accountability in the real estate sector. These reforms have
effectively eliminated fly-by-night players, ensuring that only committed and compliant
developers remain in the market. The increased disclosure and compliance requirements have
bolstered trust in branded and listed developers.
We benefit immensely from these reforms, as our commitment to
compliance and transparency from day one aligns with the enhanced regulatory standards,
reinforcing our position as a reliable name in the industry.
Our strategy focuses on expanding our footprint through innovative
projects that cater to various market segments. We aim to leverage our extensive land bank
and ongoing projects to drive sustained growth. We are proud of our ongoing projects,
including Monte South, Marathon Futurex, and Marathon Millennium. Additionally, we have
plans for new launches in Byculla, Bhandup-Ne Homes, Panvel-Nexzone in FY25.
Our land banks, including 100+ acres in Panvel, Thane, and Bhandup,
each and 80+ acres in Dombivli, provide us with a robust pipeline for future development.
Our upcoming projects are designed to cater to various market segments, from luxury
residential to affordable housing and townships to commercial spaces. We are dedicated to
delivering projects that meet the highest standards of quality and sustainability.
Our strong governance
Our governance practices are rooted in transparency, integrity, and
accountability. We are committed to maintaining the highest standards of corporate
governance to protect and enhance stakeholder value. Our board comprises experienced
professionals who bring diverse perspectives and expertise to guide our strategic
direction. We are dedicated to fostering a culture of ethical conduct, compliance, and
social responsibility throughout our organisation.
We are pleased to welcome the next generation of leaders to our Board.
Kaivalya Shah and Samyag Shah have joined us, bringing fresh perspectives and a commitment
to drive future growth. Their inclusion reflects our commitment to nurturing leadership
talent and ensuring continuity in our strategic vision. We believe their contributions
will be instrumental in achieving our long-term goals and sustaining our legacy of
excellence.
Our future stance
We expect booking value to grow by double digit rate. We remain
focussed on maintaining a balance between significant growth and financial prudence. Our
focus will be on enhancing operational efficiencies, optimising resource utilisation, and
implementing cutting-edge technologies to deliver superior value to our stakeholders. We
are confident in our ability to deliver a strong performance while adhering to our
principles of sustainability and responsible growth.
I extend my heartfelt thanks to our shareholders, customers, employees,
and partners for their support and trust. Together, we will continue to build a brighter
and more prosperous future. Your confidence in us drives our commitment to excellence and
innovation. We look forward to your continued support as we embark on this exciting
journey of growth and transformation.
Warm regards,
Chetan R. Shah
CHAIRMAN AND MANAGING DIRECTOR
B.Tech (IIT) & M.S., USA