AR21 notes
- Has ~9.13 mn sq.ft under execution (sold and unsold), 170 cr. of RTM inventory
- Realizations increased by 9% to 5’785 due to increased contribution from Mumbai
- Digital capabilities: 180 homes were sold during March 15 - April 30, 2020
- Mumbai + Bangalore sales contribution increased to 300 cr. (~25% of FY21 sales)
-
Pune:
o Launched Universe at Life Republic and sold substantial volumes at a higher realization compared to the other sectors within the project
o Completed final tranche payment of 81cr. for buyout of ICICI Venture’s 50% stake in Life Republic (first tranche of 70cr. was paid in March 2019 and the second tranche of 70cr. was paid in November 2019). Company’s economic interest in its entire portfolio grew from ~60% to ~90%.
o Signed 3 projects with a combined saleable area of ~2.2 msf in Pune under capital-light models; (Projected topline of 1500 cr., projected KPDL PBT ~220cr.) -
Mumbai:
o Mumbai portfolio reported sales value of 180cr. (vs 19.8cr. in FY20)
o Launched Evara at Q3 end (the first new launch in Mumbai in 4 years) and sold 54 units (75% of inventory)
o Launches of Verve (Goregaon) and Vaayu (Dahisar) in Q1FY22 should increase Mumbai sales proportion to ~25% in foreseeable future
o Redevelopment projects: Evara, Verve and Vaayu (expected topline of 1000 cr.)
o Will focus on large redevelopment properties that present possibility of generating at least 50 cr. in profit before tax. - Net debt declined by 124 cr. to 310 cr.
- Availed 3-month debt repayment and interest servicing moratorium
- Reduced marketing from a peak of 3.7% of sales in last few years to 2.6% in FY21
-
Partnerships:
o KKR committed 193cr. in R1 sector of Life Republic
o Entered into 120cr. agreement with an affiliate of J.P. Morgan Asset Management for its Mumbai redevelopment project Jay-Vijay Society in Vile Parle (E)
o Planet Smart City bought 10.4 acres of land at Sector R10 at Life Republic for 172 cr. and partnered KPDL to launch the project at Sector R10 in a profit-sharing agreement (1.42 mn sq.ft)
o The real estate investment firm ASK is a profit-sharing (70%) partner in the Three Jewels project -
Brands:
o Kolte-Patil (addressing the mid-priced and affordable residential segment)
o 24K (addressing the premium luxury segment). - Planned launches: 8 in Pune, 3 in Mumbai, 1 in Bangalore. Total saleable area ~ 6.5 mn sq.ft, revenue potential: 5300 cr.
- Shareholder: 37’665, Share price: low (110), high (281.95)
- Number of employees: 558
- Aim: To reach 5mn sq.ft annual pre-sales run-rate in 3 years
- FY22: Signed 2 new projects with a combined saleable area of ~1.3 msf in Pune (Hinjewadi and Tathawade) under the DM model. Expected DM fees of ~80 cr.
Disclosure: Invested (position size here)