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Ashiana Housing hosted a conference call on November 15, 2017 to discuss the performance of the company for the quarter and half ended Sep 2017. In the conference call the company was represented by Varun Gupta, WTD and Vikas Swarup, CFO.
Key takeaways of conference call
Bookings in Q2FY18 were higher at 1.57 lakh Sft in Q2FY18 compared to 1.51 lakh sft in Q1FY18 but lower than 2.11 lakh sft in Q2FY17. With significant reduction in impact of demonetization the bookings have improved sequentially.
Out of a total saleable area of 19.10 lakh sft about 63.57% or 12.14 lakh sft has already been constructed. Out of the total area booked so far of 10.84 lakh sft (or Rs 353.09 crore sale value) the amount to be received was about Rs 82.23 crore.
Revenue recognized from completed projects in Q2FY18 was Rs 97.72 crore higher compared to Rs 62.69 crore in Q1FY18 but lower than RS 107.15 crore in Q1FY17. Higher revenue in Q2FY18 on sequential basis was largely due to higher deliveries.
Area constructed lower at 1.71 lakh sft in Q2FY18 as against 4.40 lakh sft in Q2FY17. Area Constructed was 2.46 lakh sft in Q1FY18. Construction is in line with the commitments of the company.
Unsold inventory in completed projects is about 10.01 lakh sft out of 60.83 lakh sft of saleable area. Area booked but revenue not yet recognized out of the booked area of completed project is about 2.68 lakh sft.
Signed Memorandum of Understanding with a Pune based developer for development of a ‘Group Housing Project' for a land parcel of about 19 acres situated near Hinjwadi near Pune. Expected saleable area would be 12.5- 15 lakh sft and the project will be developed on revenue sharing basis.
Realizations were impacted by GST. The steady realization of the company is largely due to project mix and share of ready to move unit sales. Average realization going ahead will be about Rs 3100-3200/sft.
Land prices are finally conducive for deals. Believe to increase area bookings by diversify projects/launches across locations and price points.
Supply in the market is reduced as launches are lower than sales due to RERA. Able to improve the its market share in certain markets.
Focus market for the company continues to be Jaipur, Pune and Chennai. The company will be launching the Jamshedpur project soon albeit at scaled down size initially.
RERA registration will be done in next quarter for Chennai Subham Phase II in Q3FY18.
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