Deep Vadodaria is the COO of Nila Infrastructures Ltd., an original thinker with an immense reasoning power. With a problem-solving attitude, he addresses complex issues in his own distinctive manner. With his excellent operational and project execution skills; he is driving the Company to new horizons. His idiosyncratic leadership style is structured on a well-define moral code and provides for an excellent teamwork. He has embedded a culture of review, responsibility and shared accountability to achieve high standards for all.
Nila Infrastructures Limited is a progressive infrastructure company that believes in changing the paradigm of the industry by adopting innovative technologies, benchmark quality, robust engineering and uncompromising business ethics. Since its inception, Nila Infrastructures Limited has functioned with marked distinction in the infrastructure and real estate arena and has demonstrated timeless values and transparency in all spheres of business conduct. Every challenge to provide unswerving infrastructure to contribute to the growth of Gujarat and other states has been met with tenacity and unmatched dedication.
Replying to IIFL, Deep Vadodaria said, “GST will create a nationwide-level-playing-field for all organised builders and developers.”
Could you please elaborate your view on RERA, and how it will impact the industry in general and your company in particular?
We welcome RERA as it is the game-changer that the industry needed for quite sometime now. We clearly see the rules-of-the-games being rewritten once RERA is implemented - in letter and spirit. The industry is getting equipped to synchronise with this paradigm shift and should look forward to entering into an interesting phase which promises absolute legitimacy. Foremost characteristics of RERA such as transparency, discipline, compliance, justice, etc., will force consolidation within the industry and only buyer-friendly and sincere entities with appropriate aptitude and attitude towards governance and compliance will prevail. Our company has been listed for 26+ years and has always operated with the highest level of integrity and credibility as an example of the Good Corporate Citizen. We have always delivered whatever we have promised. Hence, with reference to RERA, we can say that we are in 'sweet-spot' today.
Your views on how GST will impact the real estate sector?
GST will create a nationwide-level-playing-field for all organised builders and developers. While we are yet to get sufficient clarity on a few counts, we understand that the actual tax impact under GST would be lower or equivalent than the existing multiple indirect taxes on the real estate sector. A single stable 12% GST rate, inclusive of the value of land and with full Input Tax Credits, would prove beneficial for the sector.
Could you throw light on company’s projected financials for FY18?
As a Company Policy, we do not provide any guidance on the projected financials of the Company. Having said that, it will be very safe to assume that given our order book of Rs 4,076.1 million at March 31, 2017; we are on track to show consistent growth that we have been showing from the last three-to-four years.
Please let us know more about Nila Infrastructure’s business segments?
As per AS-17, the Company has only one primary reportable segment that is Construction and Development of Infrastructure and Real Estate Projects.
The Company is a Specialist in Affordable Housing Infrastructure Projects including Slum Rehabilitation and Redevelopment Projects. We have already satisfactorily delivered more than 2,300 flats, while about 7,300 flats are under construction.
The Company is also engaged in niche Civic Urban Infrastructure Projects such as BRTS Stations, Multilevel Parking, Medical College, Office Complex, Community Hall, etc. as well as Industrial Infrastructure Projects. We take up such projects on EPC, Turnkey, and PPP basis for resourceful government entities as well as high-rated private corporates.
The Company has a long track record of developing and marketing Real Estate Projects with the satisfactory delivery of more than 4,600 homes and that is why Nila Infrastructures has become a Brand with the top-of-the-mind recall.
Could you give us an idea about inventory status of the company?
The standalone total inventory of the Company at March 31, 2017, is Rs 1,421.9 million spread amongst Rs 990.1 million of land, Rs 337.8 million of WIP (work-in-process), Rs 75.4 million of flats, and Rs 18.6 million of materials.
Inventory pile up is a major concern for the real estate sector, how does the industry plan to face this hurdle?
Yes, inventory pile-up has been the major concern of the real estate sector. However, the implementation of RERA, the recent reduction in Rate of Interest, the expectation of normal to above-average monsoon, etc. are collectively catalysing the revival of both residential as well as commercial real estate. In the residential segment, affordable housing, both government and private, will remain the buzzword as there is tremendous traction at the 'bottom-of-the-pyramid'.