Alpine Housing Development Corporation Ltd Management Discussions.

The year 2019-20 has been a challenging year. It is challenging not only for Alpine but for the real estate sector in particular and overall economy in general.

Indias GDP growth has been 4.2% , in the year 2019-20 , lowest in 11 years as against 6.1% growth in 2018-19 and 7.2 in 2017-18.

The World has been hit by the Covid -19 pandemic. Though it started in November 2019 in China, it had its impact in India in March and the country went into lockdown on 25-03-2020. This has impacted the economy to great extent.

As the country went into lockdown on 25-03-2020 the impact on the GDP growth for the year 2019-20 is not much but its impact is going to be substantial in the year 2020-21.

The lesser GDP growth of 4.2% in the year 2019-20 has been more due to economic factors in the country than the pandemic in the year 2019-20.

Though the economic factors were not favorable , particularly for the real estate business, your company went into aggressive marketing and also it was decided to give discounts , to liquidate the stock , instead of paying high interest on borrowed funds, or to risk the issue of non payment of any installment.

Thereby our sales have gone up from 32.19 crores to 42.08 crores. Profit before tax for 2019-20 has been 3.87 crores as against 3.76 crores in 2018-19 and net profit after tax has been 3.79 crores for the year 2019-20.

Our EPS has gone up from 1.71 to 1.90 in the year 2019-20

We have substantially improved our equity to debt ratio. In the year 2018-29 it was 1: 0.89 and in the year 2019-20 it has come down to 1: 0.65 and we expect this to go down substantially in the current year.

FINANCIAL REVIEW ( PY figures have been regrouped in line with IND AS)

Equity including reserves

The equity of the company as on March 31 2020 is Rs.68.64 Crores as compared with Rs.65.34 Crores on 31.03.2019.

Debt Equity

The debt equity ratio of the company for FY 19-20 was 1:0.65 as compared with 1:0.89 in the previous year.

Revenue

The total revenue of the Company increased by 23.5% to Rs.42.08 Cr. in the financial year 2019-20 as compared with Rs.32.20 in 2018-19

EBIDTA

EBIDTA Increased by 17.53% in FY 2019-20 compared to 21.74% in the previous financial year.

Finance Costs

Interest and Finance costs during the year FY 2019-20 stood at Rs.2.71 Cr compared to Rs.2.44 Cr in the previous financial year.

Net Profit

Net Profit Increased to Rs.3.29 Cr. for the year 2019-20 compared to 2.96 Cr. In 2018-19.

Earnings per share

The companys EPS (Diluted) increased to Rs.1.90 FY 2019-20 from Rs.1.71 in the previous year.