See strong FY16 on projs' revenue recognition: DB Realty

In this quarter of October to December, while we have recognised the revenues from Dahisar, Gokuldham project which has received the OC in December month has looked with double the revenues that it had recognised for the last several quarters. In this current quarter it has recognised about Rs 50 crore plus while it was stable revenues at Rs 25 crore. TDR has not seen any revenue recognition this quarter because we are awaiting for the release of the defect liability period -- TDR which we hope that in this quarter it will come and in the next two quarters that should show us about Rs 70 crore revenues.

The other company’s projects which are yet to recognise revenues are Prabhadevi, Mahalaxmi and Chandivali projects which we should receive the revenue recognition from the next financial year.

Ekta: For Q4 what are the projects that you would generate revenue from and which will show?

A: Dahisar project, Gokuldham project as well as the TDR project. So, these three projects should give us revenues. In this quarter of September to December, TDR will not be contributing in topline.

Sonia: You said that Prabhadevi, Mahalakshmi and Chandivali projects will start showing you revenue next financial year onwards, what could that quantum of revenue recognition be?

A: Total project revenues of these three projects is about Rs 7000 crore. However, depending on the percentage completion, how the completion happens and how mathematically it comes into, we should be having it but I guess it should be about Rs 100 crore contribution to the topline quarter-to-quarter.

Ekta: What are your other projects besides the ones that will begin execution or revenue recognition in FY16, something that would be on the anvil which you are contemplating at this point in time?

A: In the press releases we mentioned about our survey number 92 project which has received the clearances from the authorities with regards to the private forest tag. It is about 16 acre project where it is a clean land parcel but it was not receiving the approvals because of private forest tag. So, that should get unlocked very soon as well. As you have just mentioned about the profits, if you see that the legal and professional expenses has gone 40-folds from the normative QoQ expenses that is primarily because of all these unlocking that we have been doing in the last one quarter.

Sonia: You did mention that the Gokuldham project recogniaed about Rs 50 crore in this quarter. Can you tell me on an average what has the blended realisations been in this quarter and what is a sustainable realisation that you can see in Q4?

A: This project has been stable at around Rs 25 crore because 97 percent of this project has been completed. So, because the OC has been received and the last possession monies have been started coming in, which is 5 percent over the project has been locked up. So, that is how you see that revenues have doubled this quarter and further two quarters also we should see about Rs 50 crore topline from this project as well. After two quarters, this project will stop contributing to the topline.