A lot is riding on the 2,500cr revenue projections, but project details provided in Q2 presentation might imply that not all of that revenue belongs to Arvind.
Specifically comparing “Sporcia” and “Electronic City” projects in Bengaluru, both have very similar areas (5 acre, 0.52 msqft), revenue projections (225 cr) and completion year (2017). That makes sense except for the fact that Sporcia is 100% AIL while AIL has 65% stake in Electronic City. There could be couple of explanations
- 225cr in Electronic City is total revenue and AIL will get 65% share
- Electronic city is more expensive, thus 65% share provides for the same revenue as 100% of Sporcia. Considering Sporcia is behind Manyata Tech Park, I would expect Sporcia to be more expensive than Electronic City. So in my view this explanation does not stand
Does that mean that AIL revenue would be ~1400 cr adjusted for their share in properties?
@onliabhishek, as you seemed to be sure of the revenue share, could you take a look.
Disclosure: Not invested, evaluating.
| Subscribe To Our Free Newsletter |
