Key takeaway of the conference call

Revenues for the quarter ended Dec 2013 was down by 17% to Rs 188.1 crore impacted by delay in receiving Occupancy certificates (OC) at some projects of the company. As EBITDA margin expanded by 250 bps to 30.4%, the de-growth at EBITDA level moderated to 9% to Rs 57.3 crore. Eventually the PAT (after minority interest) was down 33% to Rs 20.4 crore.

The OC has been delayed for two of the projects and the impact of the delay in getting OC at PAT level was about Rs 6-8 crore. Shortfall to be covered in Q4FY14 – already received majority of the OC's In January 2014.

The company has divested about 7 acres at Yavat for Rs 5.5 crore at a profit of Rs 1 crore during Q3FY14.

New sales booking recorded in Q3FY14 is 0.44 msf of which about 93% is residential and 7% commercial projects. The sales value was worth Rs 253 crore. The Average price realization (APR) for the quarter stood at Rs 5730/sft with average price for residential project stood at Rs 5421/sft and that for commercial project at Rs 9932/sft.

The ongoing projects as end of Dec 2013 have a saleable area is 14.1 msf (KPDL's share is 9.3 msf) and of which the company already sold about 7.8 msf with a sale value of Rs 3157.7 crore. Cumulative collection as end of Dec 2013 in case of ongoing projects is about Rs 2442.7 crore and the collection in Q3FY14 stood at Rs 230 crore.

In January 2014 launched 0.2 msf (of total saleable area of 0.9 msf) of Jazz Phase I at Aundh. Jan 2, 2014 the company obtained final approval and started pre launch activity and made 34 units as far as 0.6 msf Mirabilis, Horamavu, Bengaluru project.

Gross debt excluding compulsory convertible debentures (CCD) is Rs 205 crore and the net debt is Rs 127 crore.

The regulatory environment is improving and should translate into a series of new approvals. Excluding township project for which the approval to come from CM's office the company expects approval for 8-9 msf over the next twelve months. Clearance committee appointed in Dec 2013 for non township projects and first stage clearance were obtained for 2 projects and 2 more projects are expected to go through approval process.

In Q3FY14 recorded its first sale in Mumbai of 2,200 sft. at an APR of Rs 34375/sft.

The company is looking at divestment of 3 agricultural land parcel aggregating to about 85 acres all in Pune.

Sanjivani Township at Urse in Pune has got IGBC certificate. The company also starts site mobilization and development of water body and greening. Once the approval from CM's office comes the company will launch the project.

No correction in land prices expected. The price of land has gone up significantly depending on location in both Pune and Bengaluru.

The company expects new area sales booking of 1.8 - 2 msf for FY2014 with average price realization of Rs 5300/sft.