New launch in B'lore to earn Rs200cr income: Nitesh Estates

Ashwini Kumar, chief operating officer, Nitesh Estates speaking to CNBC-TV18 said, "This particular project is going to get us revenues of about Rs 200 crore spread over the next three years. We should be able to get around 42% EBITDA margin from this."

Below is the edited transcript of Kumar’s interview with CNBC-TV18. Also watch the accompanying video.

Q: How do you fund this Rs 200 crore?

A: As far as the residential projects are concerned, they largely funded by customer collections. However, the initial equity is put in by the company itself so we have done that from internal accruals.

Q: Is there some role that JP Morgan has in this?

A: No, they do not have any role in this. This particular project is going to get us revenues of about Rs 200 crore spread over the next three years. Typically, in high end apartments and this is among the highest in Bangalore. The EBITDA margins are also pretty high. We should be able to get around 42% EBITDA margin that’s what the plan is.

The location is most sort after address in Bangalore High Grounds on Sankey Road. The property overlooks the golf course and has very stunning view all around. In terms of architecture and design we have got KPF from New York, an iconic design firm to do the design this particular property.

We want to make it something very iconic and unique in terms of elevation, finish, interiors and experience which the customer can get in terms of amenities and services.

Q: You also had fund infusion into one of your SPV from JP Morgan about Rs 200 crore that I believe was also for residential projects. If this is not included in that what kind of projects are you looking under that stable in the tie-up with JP Morgan?

A: There is no such announcement that we have made. I do understand that there have been some media reports. But there is nothing that I can confirm or deny in this regard.

Q: Are you looking for private equity investments?

A: There are quite a few opportunities that one is looking at but nothing that we are close to announcing right now. The debt on our books is around Rs 45 crore and that’s about 10% of the net worth.

We do have the capability of raising more debt for future growth and that’s something which we will do. But there is nothing that is there on which we can make any announcement now.