Key take aways of conference call

Q1FY15 witnessed a pre-sales of 0.61 msf. (up 38% YoY) at a significant price appreciation of 16% to Rs 5616/sft. In terms of number of units the company sold 569 units in Q1FY15.

Three Jewels' project in Kondhwa (Pune) got overwhelming response. After the soft launch of the project in Q4FY14 (last quarter), the company undertook a pan Maharashtra launch in June 2014 and till date have successfully sold half the inventory in phase I of the project. The company has also received an encouraging response to the soft launch of our Bavdhan project in Pune during the quarter.

Revenue growth and profitability for Q1FY15 suffered as some of ongoing projects reached maturing stage and some other not yet hit the revenue recognition threshold. The company expect revenue trajectory to improve going forward as projects, launched earlier during the year, are expected to hit the revenue recognition threshold in second half of FY2015.

The company received ‘Location Clearance' for the ‘Sanjivani Integrated Township' at Urse. Earlier in Q4FY14 the second phase of Life Republic got ‘Location Clearance'. Expect both these projects to significantly contribute to the growth of the company in coming years.

Sanjivani Integrated Township project is on 275 acres of land of which about 110 acres is for golf course and in balance the company will develop 6 mln sft including common amenities area of 1 mln sft. So residential saleable area will be 4.5-5 mln sft and of which 1/3 rd will be villas and low rises and balance will be high rise apartments.

Sanjivani Integrated Township project – The company is yet to get Letter of Intent, environment clearance and Master Plan approval. The efforts are on for getting LoI which will happen in next couple of months. Once LoI and forest clearance is obtained infra development can be taken up. Once master plan approval happens the company can start sales booking. Internal target for launch of this project is Q4FY15.

The company is confident of its strategic vision of 12 msf. of new sales bookings over the next three years given robust launch pipeline with all key approvals in place.

Customer decision making cycle has improved with the time period come down.

Commenced sales for link road project at Mumbai.

Compared to Pune and Bombay, doing business is easy in Bangalore as the approval cycle is very less not more than 12 months.

Life Republic Phase II, Down Town, Bavdhan, Kondhwa (Three Jewels' project) and Botanica are some of the project that will come up for revenue recognition in H2FY15.

Already the approval process is slow so no further slowdown is possible. During Loksabha elections there is no impact on approvals.