Key takeaways of the conference call

Sales volume for Q4FY18 and FY18 stood at 0.49 msf and 2.08 million square feet (msf) respectively translating into a degrowth of 11%yoy and 1% yoy. During FY18 about 72% of sales volume contribution from MIG/Township projects, 24% from 24K/Luxury portfolio and 4% from DMA projects.

Sales momentum for Q4FY18 and FY18 impacted as there were no substantial launches during the year, held back by approval delays. Further, the sale performance has to be view against the backdrop of a challenging market environment where volume growth was impacted on account of the residual impact of demonetisation and the implementation of RERA and GST.

Going into FY19, the company have a significant launch pipeline of existing projects, which will drive sales momentum in H2FY19.

Launch pipeline of the company for current fiscal i.e. FY19 is about 4 msf., which will get launched in H2FY19. Hence presale numbers is expected to jump in FY19.

The company is on track to achieve its vision of diversifying its revenue base with about 25% sales contribution from Mumbai and Bengaluru market by 2020.

Bengaluru market contributed 12.9% of sales volumes in FY18 (as against 3.6% in FY17). The company also expect Mumbai projects to pick up in FY19 with the improving visibility of new launches on the back of government initiatives towards resolution of dumping ground issues, DP2034, etc.

In FY19 about 10-11% of revenue recognition and bottom-line is to come from Mumbai market.

Three project to be launched in FY19 in Mumbai market including Breeze, which will get launched first. Other two projects apart from Breeze are small society redevelopment projects.

The company to launch upscale Koramangala project in Bengaluru in FY19. In Mumbai the company to have 1.4 msf across 14 asset-light society redevelopment projects.

Pune market has been one of the most stable RE market in the country with not much of price volatility in last 10 quarters even though there is little bit of oversupply.

Tree committee which was not there is in place now and started appraisal of the plans. Under the new DP 2034, if road width is more than 30 mtr there is FSI benefits.

In Mumbai market out of the two existing project i.e. Jai Vijay and Link Palace the later is completely sold and the company is in the process of getting out of this project with handover in progress. In case of Jai Vijay the GST has turned out to be negative and it is nearing handing over of possession.

Collections in Q4FY18 saw an uptick of 48%YoY and 35%QoQ on the back of strong thrust on registrations across all projects. Moreover the 15%YoY improvement in collections at Rs 1109 crore for FY18 was utilized to drive reduction of Rs 167 crore in net debt even while the company remain focused on efficient execution.

About 3 msf in subsequent phases of existing projects Life Republic and Ivy Estate likely to get classified under Section 80 IB Affordable Housing Scheme wherein there will be zero tax outgo.

The company is on track to achieve its strategic goals and expect to deliver another year of record performance across all operational parameters in FY19.