Key takeaways of conference call

Residential sales volume for Q1FY17 stood at 361000 sft, a fall of 23% compared to 568000 sft in corresponding previous period. Commercial sales volume for the quarter ended June 2016 stood at 10000 sft compared to 48000 sft in the corresponding previous period.

Of the ongoing project the company's share is 15.16 msf (estimated value is Rs 7985.7 crore) and of which sold till date is 7.52 msf (Rs 3829.1 crore) and unsold inventory is 7.64 msf (Rs 4156.5 crore). Collection till date on sold units is Rs 2541.8 crore. Collectable (including unsold units) as far as ongoing project is Rs 5443.8 crore.

Revenue recognized on ongoing project till date is Rs 2084.6 crore. And unrecognized revenue on ongoing real estate projects including unsold is Rs 5901.1 crore. Cost incurred till date on ongoing project is Rs 3060 crore and balance cost to be incurred to finish the project is Rs 2627.2 crore. Profit yet to be recognized including unsold units is Rs 1819.2 crore.

Q1FY17 sales are sale of existing project and no pre launch sales or new sales. Drop in sales volume even on sequential basis is largely due to no new launches by the company in Q1FY17. The company has lost out buyers who are looking for new launches. The company has strong pipeline of new launches and this will help the company to improve sales volume. There is strong interest in real estate.

The planned launch for FY2016-17 is about 3.21 msft (BEL Share is 2.06 msft) of residential space and 0.62 msft of commercial space. Launches for current fiscal are not back ended and the company has significantly part of planned launches lined up in Q2FY17 and Q3FY17 as well. The company expects a pre sale of 3-3.5 msft in FY17.

Of the total leasable area of 2146000 sft the company has leased out 1961000 sft as of now. To be leased space is about 185000 sft and of which 140000 sft is office space and balance 45000 sft is retail. Majority of the to be leased office space in WTC Kochi. There is robust demand for commercial space in Bangalore market.

Land bank of the company stand at 530 acres with developable space of 60 million square feet of which the company's hare is 37 mln sft. The land bank is largely in Bangalore followed by Chennai.

To mark its 30^th anniversary the company targeted to complete 30 projects during Oct2015-Oct 2016 period and of which about 22 projects already completed so far.

The company capitalized about 14 million in Orion East mall 14 and Rs 13 mln in Grand Mercure, Mysore and this has resulted in higher depreciation as well.

Expect 15-20% jump in top-line in current fiscal ending March 2017. Bottom-line substantial improvement is expected but 40-50% growth will not be a surprise.

NGT ruling affects some of the projects of the company and that has delayed in obtaining approvals.

Ground breaking for Brigade Seven Gardens (700 apartment) in next 2-3 weeks. The company is ground breaking for 250000 sft gift city project in next couple of days. The work on 3msft Brookfield commercial office project will also commences soon.

Realization is looking up as projects are getting completed. The buyer is ready to offer premium for ready to occupy flats.

The company's board decided to hive off the hospitality business to 100% subsidiary. Mysore hotel has commenced operational and it is currently in stabilization phase. The operation of Mysore Hotel is expected to get stabilized by Q3FY17. The company has 3 hospitality projects under execution and 3 projects under pipeline. The projects under execution are Holiday Inn (at Chennai), Four Points by Sheraton (at Kochi) and Holiday Inn Express. The projects under pipeline are at Kochi, Mysore and GIFT City (in Gujarat). As of now the company has 230 rooms/keys and in next 15 months the company will have 1000 rooms. The Chennai Hotel is expected to commence operation in Q3FY17. The hospitality STO is expected to cross Rs 500 crore in next 36 months.