FY23Q2 concall notes
- Demand in Lucknow is strong, market is undersupplied
- 3 land parcels have reached term sheet stage in Lucknow, 2 are in primary land aggregation and 1 is prime group housing
- Total inventory: 4.68 lakh sq.ft (in on-going projects) + 14.12 lakh sq.ft (in upcoming projects; 700 cr. potential sales) + 3 term sheets (500-600 cr. potential sales)
- Drop in EBITDA margins was due to reversal in GST credit (5-6 cr. impact)
- Group housing projects are lower margins vs plotted large township projects which are based on land aggregation model
- Will launch 2 projects in FY23: Imperia Phase-2 (4.55 lakh sq.ft), 1 group housing project in Eldeco city. These two should contribute 450 cr. in topline in next 3 years
- Will increase beneficial share in Bareilly project to 50% from current 40% due secondary purchase of shares
- Currently focus in on getting more projects in Lucknow rather than venturing out to other cities
- Average realizations have improved to 4500/sq.ft
- Bareilly: 40 acres of land, have approvals for 35 acres and for the remaining 5 acres, will apply for approvals. For the 35 acres, presales have done very well (sold 5.83 lakh sq.ft of 8.74 lakh sq.ft available). Currently prices are around 4000/sq.ft (vs 2500 at time of transaction)
Disclosure: Not invested (no transactions in last-30 days)
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