Sujay Kalele, Group CEO, Kolte-Patil Developers, says the company is likely to gain Rs 700-800 crore on its topline from the newly announced redevelopment projects in Andheri and Vile Parle.
Kalele says the projects will be launched in Q4FY15 and is likely to attract better margins than the prevailing deals.
Also read: Eyeing Rs 1600cr revenue from Pune project: Kolte-PatilBelow is the edited transcript of the interview to CNBC-TV18.
Ekta: I just wanted to focus on this one piece of news where the company has signed two redevelopment projects in Mumbai. Can you take us through more details, when does work start and how much are these two projects worth?
A: We signed them this month and we are going for various permissions now. Since it requires us to go for environmental clearance we hope to launch these projects in Q4 of financial year 2015.
Latha: One of them is in Vile Parle, where is the other one?
A: In Andheri.
Latha: Both of them will be launched in the Q4 of FY15?
A: Yes.
Latha: What is the total cost?
A: Total investment is expected to be in the range of about Rs 400-450 crore for both the projects together.
Ekta: Both of them would be housing projects?
A: Yes, residential.
Latha: When do you start selling and when does this money hit your P&L, say the recognition will come in FY16?
A: Yes, FY16 because we to spend 25 percent of the cost. The revenue will start getting recognised in FY16.
Latha: At today’s square foot price what is the value you are looking at?
A: We are looking at anywhere about Rs 700-800 crore of topline at today’s going basis.
Latha: What will be the margin?
A: Margin will be more than the current EBITDA levels that we have; more than 35-40 percent EBITDA.
Ekta: How many more projects would you be eyeing in Mumbai which would be redevelopment?
A: We have participated in various bids right now. It is too early to speak because it is a time taking process.
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