Phase I of the 'Ashiana Anmol' residential project will be completed by 40-odd months, said Ankur Gupta of Ashiana Housing.
Ankur Gupta, joint managing director of Ashiana Housing speaking about the launch of its new residential project 'Ashiana Anmol' located at Sohna in Gurgaon said the company expects revenue of Rs 600 crore from this project.
The project is spread across 13.37 acres of land with total saleable area of the project is 11.50 lakh square feet. The timeline of the project would be around 4-5 years, said Gupta
He expects to complete phase I of the project in about 40 months and realisations will start post that.
For the third quarter ended December, 2014, the company’s consolidated revenues were up 161 percent at Rs 35.84 crore versus Rs 13.73 crore for the corresponding quarter of last fiscal. It reported EBITDA at Rs 3.43 crore versul Rs 80 lakh Y-o-Y.
Below is the transcript of Ankur Gupta’s interview with Reema Tendulkar and Ekta Batra on CNBC-TV18.
Reema: Can you give us some details, what will be the total revenues that you are expecting from this project, when will it accrue, what are the realisations? Are the realisations higher compared to say a year back?
A: Basically, we will launch it right now. We are looking at about eleven and a half lakh square feet with revenues of Rs 600 crore and the project timelines we are looking at about four to five years.
Our revenue recognition happens on completion, so phase I we are looking at completing in about 40 odd months and we will see realisation happen then.
Ekta: Can you tell us more about the project? Isn’t an affordable housing project that you have launched and maybe the pricing and the preliminary demand assessment?
A: It is very difficult to define affordable housing but we basically cater to the middle income segment and we think that this will cater to the Gurgaon market in the middle income.
Our property prices for a two bedroom will start in the range of about Rs 65 lakh and for a three bedroom with a servant’s quarter will up at around Rs one crore ten lakh. So, that is the kind of range which we are catering to.
Ekta: Any sort of assessment of presales ?
A: We have gotten very decent response from the market, almost done 90 registrations out of which we have got very good employees from lots of good corporates like Google, Honda, Hero Motocorp, Ericsson, Pepsico and these are basically people who are working nearby our project.
Reema: The Company very recently raised money via qualified institutional placement (QIP), close to about Rs 200 crore. Can you walk us thorough will any of this money be used for Ashiana Anmol as well as how you are planning to utilise that 200 crore?
A: Our idea is to do more growth with that and we will be looking at more projects, that means more land so, Ashiana Anmol is not included in it. It will be used more for our growth.
Ekta: Can you tell us what led to this 161 percent jump in your Q3 numbers in revenue? Any projects that accrued in this quarter specifically that helped in terms of the numbers?
A: Basically, we did our realisations in our Lavasa project as well as in Rangoli Gardens in Jaipur and that is why there was an increase but we have not still delivered substantial numbers which would come next year.
Reema: With regards to this Rs 200 crore raised, will you be acquiring land; if yes have you shortlisted anything? What can we expect?
A: We are looking at using this money for land and mostly in our existing locations like Pune, Jaipur, Neemrana and (interrupted)
Reema: So, buy new land?
A: Buy new land. And our growth is we are trying to keep it simple, not be too aggressive. We are looking at anywhere between 20-25 percent of growth which we believe is sustainable.
Ekta: So, tell us besides this Anmol launch today, what other launches are lined up or what the pipeline would look like and what type of housing or project it would be?
A: So, in the next year we are looking at three more launches. One, we are looking at is Chennai which is senior living, Calcutta which is senior living and we are looking at another launch of a project in Bhiwadi which will be regular housing and hopefully we will be able to open phase two of Ashiana aangan in Neemrana.
Ekta: We have the Budget coming up and there is expected to be a lot of impetus on affordable housing or mid-level housing, something that you said you focus on. Anything specific that you are expecting from the Budget, your thoughts?
A: Basically if we look at getting more infrastructure spends on to the table, we see that will bring a lot of impetus on middle income housing because one of the challenges is lands outside need to be connected to main cities to make housing possible otherwise there is always a disconnect where people work and where housing is available affordably. So, the challenge will be to get the right infrastructure for transportation going.