Key take away of the call

Sales in Q3FY17 were adversely impacted post demonetisation with customers going into wait and watch mode deferring their buying decisions and a few of them cancelling their earlier booking decisions. While October 2016 was a better month with booking to the tune of 92000 sft, November 2016 and December 2016 sales dipped to 36000 sft and 11000 sft respectively. Likewise there is significant decline in site visits post demonetization. January booking too was weak with impact of demonetization. But expect that to gradually disappear by end of Q4FY17.

Land bank of the company stands at 56.67 acres with a developable area of 46.50 lakh sft. The company continue to scout for new opportunities.

Saleable area of ongoing projects is 39.21 lakh sft and of which area constructed is about 24.49 lakh sft (62%) and sold/booked is about 23.39 lakh sft(or Rs 701.52 crore). Out of the total area booked so far in ongoing projects, an amount of around Rs 200 crore is to be received in due course in future.

Unsold inventory in the completed projects as end of Dec 2016 is at 6.19 lakh sft.

Area constructed in Q3FY17 decreased to 4.94 Lakh sft from 6.14 Lakh sft in Q3FY16. However the area constructed increased by 3% from 4.81 lakh sft in Q2FY17. Thus the company has maintained construction pace on sequential pace.

Area booked/sold in Q3FY17 declined by 47% to 1.39 Lakh sft from 2.63 Lakh sft in Q3FY16 and down 34% from Q2FY17 sales figures of 2.11 Lakh sft.

Revenue recognized from completed projects in Q3FY17 increased to Rs 24.88 crore from Rs 21.37 crore in Q3FY16 due to higher area delivered (0.79 Lakh Sft vs 0.51 Lakh Sft). Partnership Income of Q3FY17 increased to Rs 16.29 crore from Rs 1.28 crore in Q3FY16 due to higher area delivered (3.68 Lakh Sft vs 0.62 Lakh Sft)

Deliveries commenced in Vrinda Gardens Phase 1. Deliveries continued in Ashiana Navrang - Phase1 (Halol), Ashiana Surbhi –Phase 1 (Partial), Ashiana Utsav - Lavasa Phase 2 and Ashiana Dwarka Phase 1 in Jodhpur

Improvement in bookings for Navrang and Nirmay: In Navrang, the Phase I got completed and there was already decent occupancy and this has reflected in sales. In Nirmay there were lot of fence sitters. This pent up demand were converted into bookings in Oct 2016.

The company is pushing for approvals for Ashiana Ananda in Jamshedpur and this will happen in next 3-6 months and this project will be launched soon.

RERA comes to effect from May 1, 2017 but the act comes to implementation from 3 months from notification of Rules. The Rules has not yet been notified in multiple states.

Exploring 60 sqmtr of carpet in case of newer projects thus making it eligible for U/s 80IB tax benefits. None of older projects will be qualified for tax benefits announced in Union Budget.

Infrastructure state for affordable housing will means lower cost of financing.

Interest subvention scheme – exact details not announced yet. General expectation is positive as it save significant amount for the buyers.

Chennai project, which the city entered newly has got good response.

Despite challenges in the form of demonetization, RERA and GST, the company remain optimistic in long run. The sector got boost in the recent Union Budget with various sops.