Key takeaways of the call

The company successfully closed issues of 24 million equity shares at Rs 500/equity share to QIPs raising an aggregate amount of Rs 1200 crore. This is a reflection of the faith reposed by investors in the company.

The company book an area of 0.25 million sft or 124 units with a sales value of Rs 457.04 crore in Q1FY19. In the last 6 months the company has delivered over 23 lakh sft area and in the last quarter itself we have handed over possession of two residential projects - Esquire and Prisma in time much to the delight of our customers.

The company has introduced innovative financial terms for our projects in OGC and Mulund. The subvention scheme for Goregoan (Exquisite and Esquire) and for Mulund (Eternia and Enigma) has received great response. With customer centricity at the core of its operations, the company will continue to innovate and create value for all stakeholders.

Full Occupation certificate received for Prisma on June 28, 2018.

Commenced the leasing activity at Borivali Mall by pre-leasing of about 1 lakh sft.

The company will reach more than 90% occupancy level in case of Commerz 2.

IND AS 115 (Revenue from Contracts from Customers) applicable from April 01, 2018. The Company is eligible to follow the percentage completion method of accounting and is continue to follow % completion method.

The threshold will remain same for existing projects but there is change in two aspects. Firstly, till achieving a level of certainty (threshold), the recognition will be only to the extent of cost incurred. Secondly, earlier the land cost is included as part of % completion, but now the company moved to exclude land cost to arrive at % revenue collection.

The company is recognizing revenue to the extent of cost in case of Skycity and Mulund projects. Net impact of retained earnings is nil in case of Mulund project but the company's revenue recognition in case of Skycity include margin.

Eternia is smaller apartments they seem to be doing better than enigma, which are bigger apartments.

Whatever the company can sell in under construction project it sells. The price increases once it becomes ready to occupy. The customers prefers Ready to occupy apartments in case of bigger apartments

As far as contract has voluntary termination contract (especially in south and north) then the revenue can be reversed only at the end of the project. Most of Bombay developers have not such clause so following revenue recognition method.

Work already started for Thane and Goregaon Phase 3. The launch will happen once the dust on project on hand get settle. JDLR residential project will also get launched within end of current fiscal.

Mulund recognized revenue equal to cost. That is contributing to topline but not margin.

Historically our margin on Goregoan is higher when ever its contribution to topline increase the margin will be higher.

Occupancy coming down in case of Oberoi mall is a temporary phenomenon and there is nothing to worry.

Continue to look for land for acquisition.