Page 19 - Arvind 2024

the need to live better emerged during the lockdown and after,
the Company pivoted with speed to the horizontal development format, now generating a majority of its work-in-progress from this differentiated offering. We are again seeing a shift in consumer sentiment and a potential reversal of this trend, a reality for which the Company proactively prepared by being able to see ahead of the curve.
The stronger brand at our Company has had an eco- system effect. We are now not just attracting more customers willing to pay better; we are also attracting landowners seeking to enter into joint development projects with our Company.
By the virtue of being able to bring properties to market quicker and market them quicker as
well, we have set into motion a
sustainable momentum where
our brand is translating into superior cash flows and higher capital efficiency. This was visible during the last financial year: the Company stayed zero debt while net operating cash flows more than doubled. We believe that
we are among select real estate development companies in the country to possess net cash on the books despite an increasing size
of the gross development value of our portfolio by 3X in the last year.
Conservation over construction
The commitment to ESG is perhaps more relevant to our sector than most. The real estate development sector needs to consistently engage with nature; we build in nature, we build on nature and we build around nature. The extent to which we can moderate our impact on nature represents an overarching priority. The result is an ongoing interplay between construction and conservation.
At Arvind SmartSpaces, we have ensured that in this interplay, conservation has won each time. I have no doubt that because
of this consistent outcome, we have grown in our business and outperformed our sector. Much
as it may appear to most that we performed creditably on the basis of what we built, I have no doubt that it was the other way around; we performed creditably and built a brand on the basis of what we consciously selected not to build. The result is that ‘Designed to Inspire’ is not a reference to the brick and mortar dimension of our existence; it is a reference to the way we have treated nature instead.
At Arvind SmartSpaces, we designed our real estate properties by seeking minimal biodiversity disturbance. Our designs were directed towards retaining or planting local tree species; our properties were designed around floral sequences and patterns that enhanced our project and inspired stakeholders. By committing to
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inspire – the bottomline of all that we were or are engaged in – we created properties that would not just qualify as the flavour of the day but remain evergreen and enduring. Our properties have been built around eco-friendly products, designed around natural daylight, low on environment
load, enhancing value for all those who live within. I have no doubt that by building such homes, we are playing a responsible role
in enhancing the lives of our customers.
Outlook
The outlook of the Company remains optimistic. India appears to have entered a new economic phase with growth in some quarters during the year under review being higher than 8%, making it the fastest growing global economy. The Company is engaged in the execution of 27 mn sq ft of projects with a pipeline
of 44 mn sq ft. We estimate an unrealised operating cash flow exceeding Rs. 2,563 Cr coming from the current pipeline of projects.
The Company is optimistic on account of strategic business- strengthening initiatives likely
to enhance value across the foreseeable future. We believe that during the last couple of years, we strengthened a platform for sustainable growth; we are optimistic that this platform
will empower our next round
of growth that enhances value for all those associated with our Company.
Sanjay Lalbhai
Chairman
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