Key takeaways of the conference call

Aggregate saleable area of ongoing projects of the company is about 9.5 million square feet (msft) of which 5.4 msft is the share of the company. Of the total saleable area of 9.5 msft the company has already sold about 6.8 msft. The aggregate sales value of area sold out of ongoing projects was Rs 2612.2 crore and of which about 1935.5 crore

The company started off well with a sales volume of 0.44 msft in Q1FY14. Expects sales momentum to continue and the company expects to close the current fiscal with a sales volume of 2.5 msft.

The Average realization per sft was about Rs 4831/sft in FY13 compared to Pune market rates of around Rs 3900-4000/sft. The company expects the realization per sft is expected to reach Rs 5000-5500/sft.

Launch guidance will be about 4 msft during for the year and of which about 0.7 msft in Bangalore and 3.3 msft in Pune. Sales volume for the year will be about 1.5 msft

Elongated approval cycle is a major growth concern for the industry. The company already has approvals in place for about 2 msft (including 1.3 msft in Pune and 0.7 msft in Bangalore)out of the area under launch pipeline.

Expects to make a delivery of 5.6 msft in current fiscal.

The company is increasing organizational competences, creating robust knowledge management mechanisms, expanding top/middle management layer to support the next level of growth opportunity. The company have streamlined internal processes and controls to maintain construction quality across projects, reduce cost inefficiencies and adhere to strict delivery timelines. Investment in construction technology has enabled the company to halve slab time using the Alu-Form system. The investment in construction equipments will be about Rs 65 crore two years ago.

Of the incremental debt of Rs 75 crore about Rs 25 crore is towards premium payment and balance Rs 50 crore is drawn for potential land acquisition opportunities in Pune.

The company is also committed to uphold the highest levels of corporate governance and have recently appointed Deloitte and KPMG as our statutory and internal auditors respectively .

Phase II of Margosa Heights, a residential project was launched during the quarter. We also had a soft launch of our project at Wakad which received an overwhelming response at attractive price realizations. We expect to launch the project once final approvals have been sought over the next two quarters. Further, we secured approvals aggregating to 0.5 msf. area in three projects, Jazz, Tuscan Phase II as well as Giga Residency, during the quarter. Further approvals are expected over the next few quarters and will translate into an uptick in sales volume.

Demand for the offerings of the company is attributed to its strong brand name and a function of delivering the right product in the right place with the right positioning and at the right price point. The company is known for its timely deliveries of a quality product and that's its key USP.

May end with a net debt of Rs 225 crore

Life Republic phase - august end or fist week of September

Construction cost for township projects is about Rs 2400/sft as the tower height is 70 meters. Of which core construction cost is Rs 1800/sft (of which Rs 900-1000 is RCC cost, 40% is labour cost), Rs 200 is infra development cost, balance are marketing cost.