Key takeaways of the conference call

Revenues for the quarter ended Dec 2014 was up 17% to Rs 220 crore. With EBITDA margin stand contracted by marginal 40 bps (at 30%) the growth at EBITDA moderated to 15% to Rs 66 crore. Eventually the PAT (after minority interest) was down by 3% to Rs 19.8 crore with higher minority payout as well as no contribution from sale of land parcel as in corresponding previous period.

The company continues to sustain sales momentum. New sales bookings in Q3FY15 and 9mFY15 increased by 46% and 38% respectively to 0.64 msf and 1.9 msf compared to corresponding previous period. Value of area sold in Q3FY15 and 9mFY15 increased by 54% and 48% respectively to Rs 390 crore and Rs 1077 crore compared to corresponding previous period. Collections have also improved a healthy 30% on sequential basis to Rs 260 crore.

Pune Market: Performance of projects launched earlier this year in Pune continue to be good, especially Three Jewels at Kondhwa, where sales have been strong and significant price appreciation was achieved within a short time period.

Mumbai Market: In line with the guidance, the company commenced the execution of Link Palace project on Khar-Linking road in Mumbai during December 2014. Further, the company won three more projects in the Western suburbs of Mumbai in Khar (W), Malad (W) and Goregaon (W), taking the total tally to six redevelopment projects in Mumbai with a saleable area of about 0.6 million sft. This establishes the company as one of the largest listed real estate developers in the society redevelopment space. The company will continue to expand in Mumbai through suitable redevelopment projects.

The revenue to see gradual recovery going forward drove by contribution from recently launched projects i.e. Jazz, Kondhwa, Bavdhan, Giga Residency.

The RBI's recent rate cut signals turn of the economic cycle and bodes well for the sector going forward. The company expect to see a significant uptick in its revenue and profit trajectory going forward as it continue to execute to the strategic vision as it have laid out.

Average price realization (APR) in Q3FY15 stood at Rs 6090/sft with the Pune APR stand at Rs 6034/sft and Mumbai APR stand at Rs 21671/sft.

Sold 40000 sft commercial project (Alyssa) on Richmond road for a consideration of Rs 36 crore in Q3FY15.

In Q3FY15 construction cost incurred were Rs 140 crore and the company spend about Rs 70 crore towards premium payment across projects for additional FSI.

Talwalkar deal is Rs 56 crore for 850000 sft. The deal is inked as land sale plus construction contract to save stamp duty for client. So the consideration towards land amounting Rs 13 crore is already received by the company.

Building brand presence in Bengaluru increased contribution through activation of all projects in pipeline

Of the gross sale value of Rs 4589 crore as end of Dec 2014, the company recognized revenue to the tune of Rs 3207 crore and unrecognized revenue was about Rs 1382 crore giving strong revenue visibility.

In next two quarters the company looks to launch about 5-6 msf. Some key projects to be launched are Down Town Phase II, which is expected to be launched next month. Life Republic Phase II is scheduled to be launched in March 2015. Sanjivini township project is also expected to be launched in Q1FY16. Some other key projects are, Ega, Kondhwa Project, Ivy and Baghdhan. If environment committee meets the company expects launch of couple of more project in H1FY16.

Life Republic the company got additional FSI for 9 lakh sft of which 3 lalh sft is under execution as part of Phase I. But the balance 6 lakh sft is clubbed with Phase II.

No land acquisition is planned in next couple of quarters.