NEWSLETTER

HIGH QUALITY ORDER BOOK !

Capacit'e has ensured new Orders booked are of top quality :

Prestige Kochi Saifee Burhani Mumbai

Sunshine Goregaon Mumbai Wadhwa Prabhadevi Mumbai

Bharti Worldmark Gurgaon Brookfield NOIDA SEZ The Order Book to Gross Revenue ratio (annualised) is over 3 as on 30th June 2016, reflecting a strong visibility for sales over the next three years. The Order from Prestige Group for Kochi project is registered with the Real Estate Regulatory Authority (RERA), signifying the beginning of a new era in building construction that emphasises on timely completion and premium for durable quality of construction.

NEWSLETTER, AUGUST 2016

DESIGN & BUILD CAPABILITY

Capacit'e has developed the capability to successfully undertake Design & Build projects in residential, commercial and institutional buildings sector, in a timely and cost effective manner. The experience gained in use of state-of-the-art formwork systems enables Capacit'e to add value in the design phase, focusing on speed and constructability.

ALLIANCE MODEL OF CONTRACTS

Capacit'e offers to partner with Investors, Developers, General Contractors and Consultants in Alliance model of contracting on a gain-share-and-pain-share basis, as it will align the objectives of all stakeholders for timely completion within budgeted cost, ensuring quality.

LOCK & KEY SOLUTIONS

Capacit'e Infraprojects, together with the proven expertise of Capacit'e Engineering in MEP, Finishing, Interiors etc. provides lock and key solutions for construction of residential, commercial and institutional building projects covering the entire scope of services enabling delivery in a ready to occupy condition.

COMPOSITE STEEL STRUCTURES

Capacit'e Infraprojects is one of the top three construction companies in India that have the experience and expertise in construction of composite concrete and steel structures. The strategic tie-up with Capacite Structures for manufacture of steel structures enables quick engineering, procurement, manufacture, erection and construction of composite steel structures by Capacit'e Infraprojects. The ongoing Lodha Altamount Road Project and Four Seasons Residence Project are shining examples of the composite steel structures undertaken by Capacit'e Infraprojects.

NEWSLETTER

CAPACIT'E @ WORK !

Lodha Park Worli Mumbai

Hiranandani Walk Thane

Lodha Splendora Thane

T Bhimjyani Neelkanth Woods Thane

RR Elite Mulund Mumbai

POSITIVE GROWTH OUTLOOK Real estate and construction sector in India is expected to be the third largest globally by 2030, contributing over 15 per cent to Indian GDP and emerging as the largest employer in India providing employment opportunities to over 75 million people, a background paper by consultancy firm KPMG in India and the National Real Estate Development Council (NAREDCO) said. "India's urban population is forecasted to increase by about 40 percent from 420 million in 2015 to over 580 million by 2030. The government has launched several large programmes such as Smart Cities, Housing for All, AMRUT, HRIDAY along with policy support Real Estate Act to accommodate such a vast population base," the paper said. According to the paper, nearly 110 million houses would be required by 2022 alone in urban as well as rural India to provide housing to all citizens. This includes the current shortage of over 60 million houses, out of which around 20 million exist in urban areas. The paper attempts to analyse the construction development sector as a whole. The sector has attracted over $24 billion Foreign Direct Investment (FDI) between 2000 and 2015. India will need to construct 43,000 houses every day until 2022 to achieve the vision of 'Housing for All' by 2022, the report said.

NEWSLETTER

GOAL SETTING @ CAPACIT'E Capacit'e has focused in construction of residential, commercial and institutional building projects in major Indian metro cities. It is imperative that the business is profitable and sustainable, so as to generate enhanced value for all stakeholders including investors, bankers and employees. The organizational objectives have been established accordingly, targeting financial excellence and customer satisfaction. The concept of Management by Objectives has been adopted to set individual objectives for Team Capacit'e:

In setting organizational objectives and establishing individual objectives, the principle of Edwin Locke’s goal setting theory has been considered to set the bar high :

Team Capacit'e is inspired by Paul J Meyer’s quotes in setting Specific, Measurable, Achievable, Relevant and Time-bound (SMART) goals for the individuals in alignment with the organizational objectives for positive achievement, as they benefit the individuals as well as the organization:

FINANCIAL EXCELLENCE @ CAPACIT'E

Capacit'e has adopted the Survey of Work Done method of revenue recognition pursuant to AS-7. Thus, the net revenue for FY 2015-16 is fully backed by certified bills and is NOT derived as Cost of Goods Sold plus estimated Profit Margin as is the established practice in the construction industry.

Profit After Tax is over 5% and EBIDTA is over 14%. Interest cost is much less for Capacit'e in comparison to most construction companies listed in the stock markets. The payment receivables (excluding retention) is less than 60 days’ of average revenue during the quarter. The inventory including material stock, work in progress and site establishment cost deferred is also less than 60 days’ of average revenue during the quarter.

The revenue : asset ratio is 4 (annualised). The immovable assets too are bare minimum, just sufficient to meet the collateral needs. These signify successful ‘Asset Light, Asset Right’ strategy that is sought to be adopted by industry majors now. The net debt is significantly less than net worth and is at par with annualised EBIDTA. The cash credit limit availed by Capacit'e is much less than the drawing power. Thus the working capital is well in control with best in class ratios. Capacit'e is shoring up its capital base besides enhancing the credit limits to meet the growing working capital requirement that is commensurate with the increasing sales Revenue. Capacit'e has grown exponentially in the past three years since incorporation in FY13 thanks to the faith and confidence reposed on it by the consortium of PSU Banks led by Corporation Bank.

Set Organizational

Objectives

Establish Individual Objectives

Monitor Performance

Evaluate Performance

Reward Achievement

Individual Objectives

Self Belief

"Yes I can"

Specific and difficult goals, with proper feedback, lead to

higher performance

"Success is the progressive realization of predetermined, worthwhile, personal goals"

"Productivity is always the result of a commitment to excellence, intelligent planning, and focused effort"

"Whatever you vividly imagine, ardently desire, sincerely believe, and enthusiastically act upon ...

must inevitably come to pass !"

PAT > 5%

EBIDTA > 14%

[Order Backog / Revenue] > 3

Receivables < 2 months' Revenue

Inventory < 2 months' Revenue

[Revenue / Assets] > 4

Net Debt < Net Worth

Net Debt = EBIDTA

Management

by Objectives

NEWSLETTER

EPC SERVICES BY CAPACIT'E Capacit'e is driven by the passion to excel, delivering value to its customers at minimum cost and time, in its field of specialisation and focus i.e. in construction of residential, commercial and institutional buildings in major Indian metros.

PROJECT COMPLETION PHASE A number of projects being executed by Capacite are nearing completion – including the T-Series Corporate Office @ Andheri, Lodha Splendora @ Thane, Wadhwa W54 @ Dadar, Lodha Altamount Road (Concrete), Ph 1 of Neelkanth Woods etc.

PARAGON PARTNERS Private Equity Investment For Growth

Paragon Partners Growth Fund, an AIF promoted by Mr. Siddharth Parekh and Mr. Sumeet Nindrajog has made Private Equity investment in Capacit'e Infraprojects to meet its growth capital needs. Paragon is committed to stay invested for the long term, adding value to the business of Capacit'e.

CORPORATE SOCIAL RESPONSIBILITY

TRANSFORMING VISION INTO REALITY

Capacit'e is engaged in transforming the skyline of top Indian building construction markets, having created more than 10,000 jobs in quick time with focus on sustainable growth.

www.capacite.in

CAPACIT'E INFRAPROJECTS LIMITED

605-607, Shrikant Chambers, Phase 1, Adjacent to R K Studios,

Sion-Trombay Road, Chembur, Mumbai 400071, India

Phone : +91 22 717 33 717 | Email : info@capacite.in

Capacit'e Foundation

has been established

to fulfil the Corporate

Social Responsibility

obligations effectively,

with emphasis on

contribution to skill

development