Q: Walk us through the highlights of this quarter because there has been too much talk about how the industry is seeing pressure right now. In the coming few months do you think that the prices in the real estate market will come off?

A: We have declared a topline of Rs 74 crore with a Profit After Tax, or PAT of Rs 13 crore, which is against the PAT of Rs 18 crore in Q1. So this resulted in an EPS of Rs 3.79 for this quarter against Rs 5 in the previous one. The cumulative EPS for the first half is Rs 8.81.

Q: Given the pressure seen in this quarter, what is the outlook - is there more to come by way of decline in profitability?

A: There would be a decline in profitability, if sales don’t take place in the next six months. However, having said that the main thing is that the festive season has already begun. Also, we are seeing some silver lining which the market is beginning to show; the signs of stability in the financial markets and therefore the liquidity is coming back into the system. This would result in some liquidity in the hands of consumers and they will come and buy property, but at lower prices. The property is not going to be sold at higher prices. But the developers who are willing to sell it at lower the prices, the property will fly off the shelf.

Q: How much do you expect the prices to come off post the festive season?

A: It should come down in the festive season itself; people those who are ready to reduce it in the festive season itself it is where it will sell. If they don’t reduce the prices during that period, then it will not sell. There should be a correction of at least 15-20% from the top.

Q: You have strong pre-sell numbers and you sold properties worth about Rs 1,575 crore out of Rs 979 crore was to be recognized. What is the status on that chunk of money?

A: Out of Rs 1,575 crore that has been sold, Rs 975 crore has been recognized and out of Rs 975 crore about Rs 1,000 crore has already been received by us as advances from sales. So over the next may be four-six quarters we still have about Rs 600 crore of revenue recognition, which will come in, even if we don’t sell anything, which is out of the question. We would continue to sell. But assume that we were not able to sell anything then there is still Rs 600 crore of topline, which is available for us to cash in, in terms of revenue recognition.

Q: Any new projects?

A: Whatever projects which we had acquired over the last two years those projects are showing visibility. Therefore there are about two projects at Lower Parel another project in South Bombay and one project which is across the harbour in Alibaug district, which will be breaking ground in the next four to six weeks.

Q: Are you adequately capitalized?

A: We are liquid in a relative sort of way. We have cash of about Rs 50-60 crore still available with us and our receipt from sales etc. So we are relatively alright.  Moreover, we have limits from banks for these project level finances. Therefore, those would see us through for at least another three quarters without any problems, if the sales don’t take place.

Q: What is the status of the Hafeez Contractor house? Have you found any buyers yet?