Company sold a lot of premium projects (24k) which has caused a huge jump in realizations. Reported nos will be subdued until FY26, and management expects current projects to start getting recognized in FY27/28 when the real economics should be reflected on P&L statement. Concall notes below
FY24Q3
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Volume declined by (-13%) in Q3, realization increased by 20% due to higher sales of 24k projects. Price realization has increased by 5-15% across projects
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In next 2 project launches in Life Republic, realizations will be 6,500/sq.ft (vs 4,800/sq.ft 2 years back)
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Will reach 20-25% EBITDA margins by Q4FY26
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Construction scaleup will not be a problem, they were earlier doing 2.5-3mn sq.ft which has now increased to 4mn sq.ft. Can handle 1.5-2x of earlier volumes (material procurement is centralized, labor for construction is outsourced)
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Life Republic minority stake buyout (stake increase from 95% to 100%) - paid 60 cr.
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In low margin projects, gross margin is 25%. For projects sold in last 2-years, are making 25-27% EBITDA margin
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Make 18-20% EBITDA margins in redevelopment projects but much higher IRRs
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9MFY24
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Business development of 4,000 cr. (guidance of 8,000 cr.)
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Launched 3,200 cr. projects (guidance of 5,200 cr.)
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Presales of 2,080 cr. (guidance of 2,800 cr.)
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Will launch 1,800 cr. (2 mn sq.ft) of projects in Q4FY24 of which Life Republic will be 1,000 cr.
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Will launch 7,000 cr. projects in FY25 (8mn sq.ft)
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Business development of 3,000-4,000 cr. over next 3-4 months and 8,000-10,000 cr. in FY25
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Reported revenues guidance: 1,500 crore in FY24, 1,600-1,700 cr. in FY25 & FY26
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FY25 guidance: Presales of 3,500 cr. & launches of 7,000 cr.
Disclosure: Invested (position size here, no transactions in last-30 days)