Ansal Properties hopes to sell 18-19 million sq ft in FY12

Ansal Properties shares were up 3.9% by Friday afternoon triggered by the announcement of a good set of quarterly numbers. Apart from sales of 22 million sq ft in FY11, the company also recorded realizations of about Rs 1000 a sq ft. Dinesh Gupta, chief operating officer of the company tells CNBC-TV18 that he expects sales to the tune of 18-19 million sq ft during FY12. No new projects will be undertaken in the coming year, but focus will be on the extension of the 19 township projects under execution, he says. 

Below is the verbatim transcript. Also watch the accompanying video Q: Could you tell us what your FY12 sales target would be in million square feet and also you have managed to see a pretty smart improvement in your realizations, where would they go in FY12 any indication?
A: Continuing on the good trajectory that we witnessed in FY11, the management is expecting from an operational point of view, sales of close to about 18-19 million square feet during FY12 as against 22 million that we did in FY11. Our expectation is much higher but we will keep on revising the guidance as the year goes by. The realization for FY11 stood at close to about Rs 1000 a square foot on various asset classes which would improve close to about Rs 1300 a square foot as the year goes by. This is primarily on account of built up sales and vertical sales that will be taken up during the year across various township projects that we have across North India. Q: Could you tell us what the balance sheet situation currently is? How much of your debt comes up for repayment in FY12 and how much are you planning to repay in FY12?
A: Our debt book looks close to about Rs 1550 in 2011 and the expectation for the management for reduction of debt is somewhere around Rs 350 crore during FY12. It would bring our loan book down to Rs 1200 crore, a comfortable range. We expect to meet all the debt reduction or debt repayments that are envisaged during the year from our operational cash flows. That will be based on the sales monetization and the sales achievement that we are targeting for the year. Did you read: Where to buy real estate? Q: For FY11 in particular could you just tell us or breakup what sort of geographical regions actually contributed to your revenues because I understand Haryana and Uttar Pradesh were the key contributors?
A: Typically, Haryana and UP are the largest in terms of our operational mapping. Though we have Rajasthan and Punjab in our development map, in terms of realizations, they are much lower as compared to UP and Haryana. Haryana, being part of an NCR has a much better realization. We are looking at close to about 79-80% topline being contributed from Haryana and UP. The primary projects being Gurgaon, Lucknow and the NH1 belt where we have Panipat, Kundli and other townships which are at the maturity level. Q: How many projects are you currently executing and what would come up for sale in FY12?
A: We have currently 19 townships under execution across North India. Though we keep on releasing stocks across various asset classes as the township matures, we improve the construction activity. We are looking at no new projects to be added during the year except the extension of these townships where the management expects to realize a higher realization. This gives us better benefits on account of creation of brand value across these projects and by virtue of our operations for the last 5 to 6 years in these cities.