Key takeaways of the conference call

Booking in Q1FY16 stood lower by 53% at 1.65 lakh square feet (lsf) compared to 4.51 lsf in Q1FY15 . Booking in Q4FY15 stood at 3.52 lsf. Sharp decline in area booking compared to previous quarter due to sluggish market condition. Decline in booking for the company is lower than the industry. The company expects sluggishness to continue.

Unsold inventory in completed projects as end of June 2015 was 94539 sft.

Deliveries or area handed over in Q1FY16 increased to 2.36 lsf compared to 0.07 lsf in Q1 FY15 due to higher area being handed over in partnerships (2.34 lsf in Rangoli Garden)

Area constructed in Q1FY16 stood higher at 5.33 lsf compared to 5.16 lsf in Q1FY15. But that was lower by 16% compared to 6.31 lsf in Q4FY15. Area constructed though declined on sequential basis, the company is generally on track for execution and achieving the construction target. Construction will lead to achievement of overall delivery schedule.

As the company follows the project completion method of accounting, the profits varies with project completion. FY16 will see improvement in profit recognition as the company expects more deliveries in Ashiana Town Beta, Rangoli Gardens, Ashiana Anantara, Ashiana Navrang, Ashiana Utsav (Lavasa) and Gulmohar Gardens.

Entered into a JDA with Bengal Shriram for development of senior living/regular housing project on land measuring 19.72 acres. Entire project to have a saleable area of 18 lakhs square feet (approx) . Submit plan for approvals in 6 months.

Lavasa - Change of guard has caused delay in issuing occupancy certificate.

The company looks at delivery of 1800 units this fiscal.

Market behavior is not on expected lines. For FY16 area booking of 2.2 msf (up from 1.812 msf in FY15) is incredible difficult.

Lavasa phase I, Gulmahor phase I, anatara one tower will get completed.

Chennai project is on late stage of approval and expect the launch will happen in next 2-3 months. Kolkata project will get launched in next fiscal.

Enquiries dip by 25%, there is also delay in conversion of site visits to bookings as well as the customers are deferring their decisions even though affordability is not an issue.

Market has to improve for the booking numbers to turn robust. However the company expects the foray into Chennai market with launch of a new project and another new project in Bhiwadi during this fiscal will bring in additional volumes in case of new bookings.

FY16 will be challenging in terms of Cash flows. However, given the receivable from total booked units, we do not see execution (area to be constructed) challenges.