Company maintains their presales runrate, however they weren’t able to launch any new project in Q2 as a result of which most sales came from Life Republic. On reported numbers, they are guiding for 1500 cr. revenues in FY24 and 2000 cr. in FY25. Concall notes below
FY24Q2
- No new launches in Q2, as a result sales only came from sustenance inventory (462 cr. from Life Republic out of 632 cr. in Q2)
- Few projects saw realization drop (24K Altura – 8965 vs 9105 in Q1, Little Earth – Kiwale – 4843 vs 4979 in Q1). Is this a cause for worry?
- Ownership in Life Republic reached 100% from 95% post acquisition of 5% stake from minority holders in October 2023, will also need to make some payment to ICICI (125 cr. total payment and then Life Republic township will be 100% owned by them)
- 24k projects: have launched 3 (out of 5 planned in FY24). Have sold out 60%, 20% (in pre-launch stage), and 25% (row house) in these
- Confident of delivering 3mn+ sq.ft in FY24 and book revenues of 1500 cr. (& 2000 cr. in FY25)
- Doing 25-30% EBITDA margin at project level in currently sold projects. This will likely reflect in numbers from FY26. In low rise projects, margins are 40%+
- Construction costs have been locked for next 4-8 quarters for multiple raw materials due to long term construction agreements with vendors
- Exceptional item: Impairment of goodwill (12.4 cr.) on account of merger a subsidiary earlier + reversal of land transaction in Life Republic (6.78 cr.)
Disclosure: Invested (position size here, sold few shares in last-30 days)