Key takeaways of the call

Booking area improved to 1.51 lakh square feet (sft) in Q1FY18 with significant reduction in impact of demonetization up from 1.05 lakh sft in quarter ended March 2017. The sales in Q1FY17 were 2.41 lakh sft.

Area constructed in Q1FY18 was at 2.46 lakh sft, a fall of 59% compared to 4.15 lakh sft in Q1FY17.

Revenue recognized from completed project of Rs 62.69 crore in Q1FY18 (compared to Rs 9.27 crore in corresponding previous period) as result of higher deliveries.

Out of a total saleable area of 1.769 million square feet (msft) about 1.050 msft (or 59.35%) has already been constructed. Out of the total area booked worth Rs 339.12 crore so far, an amount of around Rs 94.34 crore is to be received in due course in future.

The impact of GST on margin of the company is close to negative 1-2%. So there is nothing to pass on.

In Bhiwadi the company caters to premium segment. Start tracking the competitors.

Chennai project continues to do well. Next launch is 6 month away. Chennai is a market where the company wants to grow and the company is studying the market further. The company has got a wonderful local partner in Chennai and would like to continue partner with them for newer projects.

Gurgaon market – ready to move in stocks are doing well. Under construction property market is still facing tough times. Deliveries of Ashiana Gurgaon are expected to start in April of 2019.

Launch of Jaipur and Jamshedpur land parcel is expected in next 4-9 months. But regarding Kolkata and Milakpur (Bhiwadi) is not in immediate future. Milakpur Land is under acquisition and company's writ petition is pending before the Hon'ble High Court of Rajasthan against acquisition.

RERA: In Rajasthan market the company has registered all its ongoing projects except Gulmohar Gardens and Ashiana Dwarka for which registration is pending. In Tamil Nadu market RERA is notified but the company's project falls out of the ambit of RERA. In Gujarat the Ashiana Navrang is completed and the company has applied with RERA for the new phase III of Ashiana Navrang. The registration for the same is not yet completed and thus the project is not yet launched. In Haryana Ashiana Anmol is registered. In Maharashtra market while the project upto Phase II in LAvasa are out of RERA ambit and the company is yet to register the Phase IV. In Jharkhand there is no under construction projects but the company has one project under approval stage and for which the company yet to start registration process under RERA.

Transactions making sense now and the company may announce new project some time soon.

Sales & Other Income lower by 61% compared to previous quarter due to lower deliveries. As a result Profit after tax lower vs. previous quarter.

Ashiana Town at Bhiwadi is fully completed and significantly occupied by about 300 families. This along with Interest subvention scheme for five years offered by the company has also aided traction in sales in Q1FY18. Interest subvention costs about 8% of sale value and thus hurts the margin.

The market condition in Bhiwadi is tough and slow but the company start outperforming the market.