Eldeco Housing and Industries

FY23Q3 concall notes

• In 9M FY23, have purchased additional land of 16.52 acres (for Imperia Phase III) + raised beneficial share in Bareilly project from 40 to 50%
• FY23 Launches: Only one small project was launched so far in FY23 (Twin tower; 1.57 lakh sq.ft out of which 0.95 lakh sq.ft was sold worth 38.8 cr.). Plan to launch two additional projects in Q4 FY23. All other pre-sales were from sustenance inventory
• Near term launch pipeline: Eldeco Imperia Phase II + Eldeco Latitude 27 (9 lakh sq.ft with 400 cr. revenue potential). Will take 4-6 months to launch (rera + environmental clearance required)
• Within next 12 months, will launch projects worth 800 cr. Booking value at launch is around 50%
• Only 25-30% of homes are sold on loans
• Should be able to do presales of 300 cr.+ in FY24 (~1mn sq.ft)
• 40% EBITDA margins are only possible in plotted development and not in group housing. Currently EBITDA margins are higher due to higher contribution of plotted development. Going forward with increasing contribution from group housing (50% contribution), blended EBITDA margins will reduce

Disclosure: Not invested (no transactions in last-30 days)