Key take aways of the call

The company is no more a Mumbai only/ focused realty player but has now realty developments in Pune, Nashik, Bangalore, Hyderabad, Goa, Alibagh etc.

Currently all its ongoing Mumbai projects have almost completed and the company has adequately replenished its land bank for future growth.

Currently the company is sitting on a land bank with a developable area of 30 mln sft. The land bank is fully paid up. The existing land bank is to generate a revenue of Rs 14000-15000 crore over next five years.

Ongoing Mumbai projects which are near completion have significant unsold stocks and the company is confident of liquidating that with in this fiscal.

In Peninsula Business Park (PBP) the company has about another 14 floors to sell. So far only 6 floors have been sold in PBP. Unsold stock in terms of square feet in PBP is 466000 sft, which is approximately valued at Rs 275 crore.

PBP will be major revenue contributor in current fiscal i.e. FY2012-13 given its large unsold stocks.

Will have an area under development of over 6 million sft in another 3-4 quarters.

The company is waiting for approval of its three South Mumbai projects as there is no approval for any projects in last one year in Mumbai. Together all three South Mumbai projects have an developable area of 200000 sft. All the three projects will be launched with in current fiscal.

The company looks to add couple of more projects in Mumbai especially Mumbai Suburbs especially in Joint Development worth Rs 100 crore each. So at max another Rs 200-250 crore of investment in another handful of properties.

Gross debt is Rs 1300 crore and cash is Rs 300 crore. Despite increased borrowing towards acquisition of new properties, the Debt:Equity ratio stood at 0.65.

The company has already made soft launch of Hingewadi (in Pune) project About 15000 sft already sold in Hingewadi Pune project.

Projects currently under construction - Nashik 580000 sft, Kandala 325000 sft, Hingewadi (Pune) 1.5 mln sft.

Consolidated sales for FY2012 was higher by 6% to Rs 532.06 crore but net profit (after Minority Interest) was lower by 22% to Rs 151.44 crore. Fall in profits is due to higher interest burden. Interest (net) was an expense of Rs 0.59 crore compared to an income of Rs 44.50 crore in the corresponding previous period. Since the company has acquired land using surplus cash as well as additional borrowing, that has escalated the interest cost.

Rise in Sundry Debtors is largely on account of cash against sales is yet to be made as far as PBP.