Irfan Razack, CMD, Prestige Estates says that business in Bangalore and Chennai is very strong with excess supply getting consumed effortlessly. He expects the momentum in Q4 to be as strong as in Q3 and does not see significant improvement in profits, going forward.
Irfan Razack, CMD, Prestige Estates says the firm's business in Bangalore and Chennai is very strong with excess supply getting consumed effortlessly. He expects the momentum in Q4 to be as strong as in Q3 and does not see significant improvement in profits going forward. "I expect sales in Q4 to be same as in Q3, at around Rs 500 crore, and FY14 sales to be 10-15 percent higher than FY13," he told CNBC-TV18.
Below is the edited transcript of the interview on CNBC-TV18
Q: How is the business environment in South India?
A: The realty business in South India especially in Bangalore and Chennai is quite strong, stable and the demand is robust. Though there is supply, it is quickly consumed.
Q: Have you been able to hike prices?
A: Prices have increased steadily enough to retain consumer interest and we are not looking to make high levels of profit.
Q: What is your target for sales and what are launches that you have planned for Q4?
A: In this quarter, we estimate to clock over-Rs 800 crore in sales and there are a couple of good launches in the pipeline for this quarter.
Q: What is your guidance for FY13?
A: We expect to record the same level of sales as before in this quarter which is a one-fourth increase against overall guidance. Even collections in this quarter will be at the same level of Rs 500 crore. We do not expect the momentum to remain steady.
Q: What is your expectation for FY14?
A: For FY13, we have announced a guidance of recording Rs 2,500 crore in sales. I would like to be conservative and announce the guidance for sales in FY13-FY14 at 10-15 percent more than what we previously guided for the current year and not get too overoptimistic.
Q: Will there be a 5 percent fall in sales?
A: There will be no fall in sales. I am just guiding for more than what was recorded last year.