Key takeaways of the call

Sales, collections and execution has seen continued momentum in Q3FY19. Clocked a sale of 0.35 msft valued at Rs 215 crore in Q3FY19 and that lead to a sale of 1.04 msft, valued at Rs 616 crore in 9M FY19. Collection at Q3FY19 was Rs 195 crore, leading to a collection of Rs 662 crore in 9MFY19.

Total land tie-up during 9mFY19 was 1.58 msft. In addition the company has signed MoU for land with a development potential of 3.5 msft for which the agreement will be signed post due diligence. Apart from this there are 10 deals are under negotiations.

The land tieup of 1.58 msft in 9mFY19 include the 8 acre land parcel at Bangaluru with a development potential of 0.74 msft for which it has executed a purchase agreement. This 0.74 msft of development will be in the mid-premium segment.

The company has launched only 3 projects in 9mFY19 as not much traction in launches in Mumbai with pending notification of Mumbai DP2034 transition policy. The expected notification of Mumbai DP2034 transition policy soon will pave way to launch of the Mumbai projects of the company in next few months. The company is gracing for launch of Pune Project soon as much of approvals are in place for it.

Integrated Cities & Industrial Clusters - Origins Chennai signed its first customer, Yanmar Group, a leading manufacturer of diesel engines, leasing 22.8 acres. Having concluded the first anchor client the company expects traction in further investment deals in Origins Chennai. Mahindra World City, Jaipur leased 16.2 acres to 3 customers for Rs 34.0 crore.

Consolidated total income for Q3FY19 was Rs 137.4 crore (up from Rs 93.9 crore in Q2FY19) and PAT (post minority interest) stood lower at Rs 20.6 crore (from Rs 41.2 crore in Q2FY19). Lower completion in residential business as well as non consolidation of JV contribution lead to lower profits/margin. Further adoption of completed contract method is impacting the financial performance of the company.

Approvals though not in the company's ambit but expects the second Bangalore project get launched next fiscal with the company expect to kick start the designing of the project soon.

HappyNest at Kalyan is getting ready with approvals in final stages.

South Bangalore MoU is an outright purchase with deferred payment. Expect to sign agreement this month for Pune MoU. And expect approvals to be in place within 15 month and get launched.

BD team is in double digit and micro market across geographies. The team is headed by ex Sandeep Singh, a Cushman &Wakefield vetran.

The company is trying to reduce land to launch time. Formed a team to identify distressed assets especially those having approval but could not progress for want of funds etc and acquire to accelerate growth.

Ongoing projects of the company currently stand at 4 msft and in addition the company has secured land with a development potential of 1.5 msft. This along continued lookout for proper deals with handful of deals under due diligence are expected to assure growth for the company.