Thread by @Maaachaaa69

Deepak Parekh’s ( HDFC Chairman) adressed around 8500 construction/ Real estate player on Webinar zoom on line system. All the big names from the industry were present.

Current Scenario – Business Analysis by Deepak parekh was as under.
He advised all Developers : -

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1. To Conserve, Cash at all Costs, you will need it for unforeseen circumstances, including another lock down

2. Make Team A & B. Team A studies prepares current response, and Team B works on situation after two years.

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3. You will have to increase wages for some workers to incentivize them to come back. Getting people back will be a problem

4. Travel sector will be hit for a very long time. 2 years plus.

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5. 9 Months of this year will be gone in recovery in normalcy in terms of Operations coming back
to normal. If there is no other pandemic.

6. Cut Costs, Reduce Salaries, Prune Manpower if needed.

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7 Increase equity in the company. Better to be over capitalized is better than to be over leveraged
Being Over leveraged will be a disaster, avoid the debt trap at all costs. Give a discount, let investors make money. Get Private Equity.Singapore Airlines is doing a Rights issue

8. Micro finance will be worst hit, amongst NBFCs.

9. Build relationship and trust with the banks. Don’t move relationships for a quarter or half a
percent.

10. Await announcement for MSME. More incentives and support expected.

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11.Real Estate: Land is a state subject, Real Estate Prices will come down by 20% at least
Developers who have bought land at high prices will to take a hit on the projects. Many companies will go bankrupt.Industry must talk to Govt for a one time restructuring like in 2008
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It will take 8-9 months for things to normalize for Real Estate.

12. Payments from Govt is a big issue. Lot of litigation Macroeconomic Factors & Risks,

For those who could not listen or join webinar..