Expecting 50% growth in FY12: Ashiana Housing

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Expecting 50% growth in FY12: Ashiana Housing

Om Prakash Gupta, Managing Director of the company told CNBC-TV 18 that the company is expecting sales of Rs 300 crore in FY12, which will propel the company to grow at the rate 50%.

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Ashiana Housing and Finance Limited  recently acquired 40 acres of land worth approximately Rs 25 crore in Rajasthan, adding to its land bank of over 100 acres of land.

Om Prakash Gupta, Managing Director of the company told CNBC-TV 18 that the company is expecting sales of Rs 300 crore in FY12, which will propel the company to grow at the rate 50%.

Below is a verbatim transcript of his interview with Ekta Batra and Reema Tendulkar on CNBC-TV 18. Also watch the accompanying video.

Q: We understand that your arm has acquired about 40 acre land in Rajasthan. Could you tell us how much you paid for it and what is the plan with respect to developing it, when can we expect money from this coming into the company?

A: W have spent around Rs 25 crore to buy this land. We will be doing residential housing there and it will take initially another 4-5 months till we are able to organize the whole thing. Hopefully the money should start coming in at that time.

Q: How have you funded this Rs 25 -30 crore?

A: This has been through internal accruals only.

Q: What does your land bank now stand at and what are your projects under development currently?

A: Land bank in Bhiwadi is 100 acres and rest of the places we don't have any land bank. All the land which we have are projects which are going on those lands.

Q: Could you highlight what would possible come on stream in terms of sale of properties in FY12?

A: FY11-12 the properties sale we are expecting should be about 14 lakh square feet. So that would be about Rs 300 crore at present price.

Q: So what would your growth like in FY12 given this land sale?

A: We don't sell lands; we only sell projects after construction. So we expect growth should be roundabout 50% than this year

Q: You have a property in Lavasa as well. Can you give us an update on how that is doing and what the property stands at it terms of sales and construction, etc, considering all the problems that Lavasa is currently going through?

A: We will be constructing there almost about 6 lakh sq ft and the sale price is approximately about Rs 3500 sq ft. So I think it will work out to around Rs 200 crore sale from that project. We have sold already 150 units, but right now there is not work going on site because of the environment problems. The Environment Pollution department has stopped all the work in Lavasa. So our project has also right now stopped.