During the entire period 2023-24, the company sold properties worth Rs 2,266 crore. | Source: www.rustomjee.com
Keystone Realtors has set a target of 32 per cent growth in its sales bookings for this fiscal to Rs 3,000 crore on strong demand for housing and is hopeful of surpassing this figure, its chairman and managing director Boman Irani said.
Keystone Realtors, which sells its properties under the Rustomjee brand, is one of the country’s leading real estate developers with a significant presence in the Mumbai Metropolitan Region (MMR).
In an interview with PTI, Irani, who is also the chairman of the apex body of realtors CREDAI, said that demand in the real estate market remains strong, which is encouraging the company to invest more in land acquisition and construction activities.
“We have outstanding capital of around Rs 3,000 crore for growth investments. We have raised Rs 800 crore from qualified institutional placements (QIP) plus our internal cash flow,” he said.
Asked about the sales bookings prospects, Irani said, “We are targeting Rs 3,000 crore in pre-sales this fiscal. We will surpass that figure.”
The company has already achieved advance sales of Rs 611 crore in the first quarter of this fiscal year, up 22 per cent from Rs 502 crore in the same period last year.
During the entire period 2023-24, the company sold properties worth Rs 2,266 crore.
On land acquisition, Irani said the company has given guidance to purchase multiple land parcels that can generate revenue worth Rs 4,000 crore.
“We have added Rs 1,000 crore worth of projects in the June quarter. We will exceed the target. The land deal pipeline is very strong,” he said.
For the redevelopment of housing societies in the Mumbai region, Irani said his company is the preferred developer.
Earlier this month, Keystone Realtors reported a 45 per cent decline in its consolidated net profit at Rs 25.82 crore in the June 2024 quarter due to higher expenses.
The company had posted a net profit of Rs 46.97 crore for the year-ago period.
Total revenue rose to Rs 437.20 crore during the April-June period this fiscal from Rs 282.82 crore in the corresponding period last year.
Total expenses, including construction expenses, increased to Rs 398.16 crore from Rs 216.54 crore during the period under review.
In the June quarter, the company launched two new projects with an estimated GDV (gross development value) of Rs 2,017 crore as per its guidance of launching two projects per quarter.
The company acquired one more project in the first quarter with an estimated GDV of Rs 984 crore.
The successful fundraising of Rs 800 crore in equity through QIP will play a pivotal role in driving the company’s growth strategy, facilitating acquisition of new projects and new launches, Irani said.
Keystone Realtors has 34 completed projects, 15 projects in progress, and 27 upcoming projects. To date, the company has delivered over 25 million square feet of construction area, with a pipeline of over 43 million square feet of construction area in progress.
(Only the headline and image of this report may have been reworked by Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
First published: August 19, 2024 | 15:42 IS
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