Century Textiles & Industries Ltd, which is pivoting to become a full fledged real estate player, said that it is planning to launch residential projects with a revenue potential of up to Rs 12,000 crores in the ongoing financial year.
In an investor call after its April-June financial results, the company also reiterated its plans to focus on its four key real estate markets for at least the next two years, namely the Mumbai metropolitan region, Bengaluru, the National Capital Region, and Pune.
Currently, the company has a pipeline of residential projects across the four markets that carry a revenue potential of around Rs 54,000 crores. Century Textiles is also planning to demolish and redevelop its Worli headquarters in Mumbai, a prime piece of real estate in the city, which may add Rs 2,000 crores to the company's revenue.
During the call, K T Jithendran, Managing Director and Chief Executive Officer of Birla Estates, the wholly-owned subsidiary of Century Textiles which manages its real estate operations, said that while the company is seeking private equity and other investments, it will be on a per-project basis, rather than plans to going public.
Jithendran added that in the ongoing quarter, the company plans to launch its planned project in Walkeshwar in Mumbai, with approval from the Maharashtra Real Estate Regulatory Authority expected "within a few days". Other launches planned for the July-September quarter include two projects in Bengaluru, which includes a new phase of an existing project, and a new project at Raja Rajeshwari Nagar.
In the quarters following, Birla Estates is expected to launch two projects in its new market of Pune, in Sangamwadi and Manjri, as well as in Thane, and new phases at existing projects in Bengaluru, Jithendran added during the call. Over the next few years, Jithendran said that the company aims to launch projects worth Rs 15,000 crores to Rs 16,000 crores every financial year.
While the company's revenues from its real estate business declined significantly on a sequential basis to Rs 3,38.17 crores for April-June, the company said that with the unique nature of revenue recognition in the real estate business, year-on-year growth holds more significance. In the corresponding quarter for FY24, the company earned just Rs 37.39 crores from its real estate operations, as it was in the process of building up its nascent business.
On Tuesday, shares of Century Textiles & Industries closed 5 percent higher on the National Stock Exchange at Rs 2,207 rupees.
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