BSEL Infrastructure Realty has raised USD 35.30 million via GDR issue. Speaking to CNBC-TV18, Dharmendra Raichura, MD, BSEL Infrastructure Realty said that they see around Rs 450 crore of sales and Rs 150 crore of profit, by the year-end. For FY09, they are seeing around Rs 650 crore of sales and around Rs 250 crore of profit.

Excerpts from CNBC-TV18’s exclusive interview with Dharmendra Raichura:

Q: Can you give us an idea of the SPV you have formed, for BSEL Infrastructure Realty? What are the plans with the money that you have raised?

A: We have now moved to the next level of progress. In this year, we have tied up for the funding. In the current year, we have raised around Rs 450 crore through debts and equity for the funding of the projects, which we have taken in the last year.    

Q: What is the promoter holding currently at? Do you need to go through any more fundraising over the next 18-months?

A: Over the next 24-months there won’t be any dilution in the promoters holding. There won’t be dilution from the equity point of view. The promoters’ holding, as of today, is around 38%.

Q: What are the plans with these projects? How long would be the gestation period? When would you complete your projects and what kind of growth rate can you offer to your investors?

A: In the last three years, we are offering margins above 50% over the last three years. In the future also, we are expecting the same level of margins to be maintained.

We take very selective projects, with a very good land pricing. With 1.5 million land already tied up, we are expecting to give very good returns to the investors.

Q: Given your half yearly performance, would it be safe to say, that you would do about Rs 400 crore in sales and nearly Rs 120 crore in profits for this year?

A: We see around Rs 450 crore of sales and nearly Rs 150 crore of profit, for the year ending.

Q: What is your target for FY09?

A: For FY09, we are seeing around Rs 650 crore of sales and around Rs 250 crore of profit.

Q: Where will the growth come from?

A: In international projects, we have 8 million sq feet of residential area at Ajman, in which the construction is going on in full swing. We have had a very good response from the customers and are flooded with bookings. Apart from that, the simultaneous start of all the 13 projects in India also gives us a good boost.

Q: How much revenue do you expect from the Dubai project over ’08-’09? There is a belief that almost 60% of your earnings, in maybe FY09-10, would come from this Dubai project. Is that right?

A: I can say that there will be almost 50-50 balance between the UAE market and the Indian market.

Q: In FY09?

A: Yes.