Another very quarter from Kolte, with pre-sales exceeding 700 cr. and their new business development plans going well. Concall notes below
FY24Q1
- Quarterly pre-sales have been maintained at 700 cr.+ levels
- Maintain guidance of 2800 cr. pre-sales in FY24 and 3500 cr. in FY25. Expect deliveries of 1700 cr.+ in FY24
- Business development: acquired projects worth 3450 cr. (out of planned 8000 cr.)
- New project launches accounted for 43% of pre-sales in Q1FY24
- New project launches was ~2000 cr. (guidance: 5200 cr. in FY24)
- 24k Baner project was launched in June (800 cr. potential). Within the launch week, sold 50% of inventory which was available on sale (sold 242 cr. in Q1FY24). There is strong demand in premium and luxury housing
- Have delivered 5 24k projects so far, will launch 5 more in FY24. EBITDA margins are 4-5% higher vs MIG housing
- Life Republic will cross 1.5mn+ sq.ft pre-sales in FY24 (vs 1.7 mn sq.ft in FY23) at higher realizations
- Sold 200 units in R22 on a weekend (launched in July 2023). Demand is very strong in Life Republic
- Currently evaluating 10 redevelopment projects in Mumbai, a couple of them are in advanced stage
- Doing 20%+ EBITDA margins on a project level, corporate level will be lower due to investments in new projects
- Equa / Wagholi project: waiting for some further approvals, sales velocity is not a problem
- Business development costs will be higher than previously guided 500-550 cr. because they acquired JV stake in Baner project. Confident of funding most of this expansion from internal accruals
- Life Republic surrounding areas is a no development zone, their FSI gives them advantage to develop a township
- Ready unsold inventory is very low (20-30 cr.)
Disclosure: Invested (position size here, no transactions in last-30 days)