Keystone Realtors the brand which runs their business under the brand of Rustomjee Group, which is one of the leading real estate developers in the country having a significant presence in and around the Mumbai Metropolitan Region (MMR).
The Keystone Realtors has set a target of 32% growth in its sale bookings this fiscal to Rs. 3,000 crore on strong housing demand and is hopeful of crossing this number, Chairman Boman Irani mentioned.
Boman Irani, also the president of the realtors' apex body CREDAI, highlighted that strong demand in the housing market is prompting the company to increase its investments in land acquisition and construction activities.
He further added, "We have a dry powder of around Rs.3,000 crore to make investments for growth. We raised Rs.800 crore from qualified institutional placement (QIP) plus our internal cash flow."
When asked about the sale bookings outlook Irani commented, "We are targeting to achieve Rs. 3,000 crore pre-sales this fiscal. We will cross that number."
Regarding land acquisition, Irani stated that the company plans to acquire multiple land parcels with the potential to generate Rs. 4,000 crore in revenue.
The company has already secured pre-sales of Rs. 611 crore in the first quarter of this fiscal, marking a 22% increase from Rs. 502 crore in the same period last year. For the entire fiscal year 2023-24, the company recorded property sales totaling Rs. 2,266 crore.
He said, "We have added Rs 1,000 crore worth of project in the June quarter. We will cross the target. The pipeline of land deals is very strong."
Regarding the redevelopment of housing societies in Mumbai region Irani said that his company is the most preferred developer.
Earlier this month, Keystone Realtors reported a 45% drop in consolidated net profit, totaling Rs 25.82 crore for the June 2024 quarter, due to increased expenses. This compares to a net profit of Rs 46.97 crore in the same quarter last year.
Total income rose to Rs.437.20 crore for the April-June period of this fiscal year, up from Rs 282.82 crore in the corresponding period of the previous year. However, total expenses, including construction costs, surged to Rs. 398.16 crore from Rs. 216.54 crore during the same period.
In the June quarter, the company launched two new projects with an estimated gross development value (GDV) of Rs. 2,017 crore, adhering to its guidance of launching two projects per quarter. Additionally, the company acquired another project in the first quarter with an estimated GDV of Rs. 984 crore.
Irani said that the successful Rs.800 crore equity raise through QIP will be crucial in advancing the company's growth strategy, enabling the acquisition of new projects and facilitating new launches.
Keystone Realtors has completed 34 projects, has 15 ongoing projects, and 27 more in the pipeline. To date, the company has delivered over 25 million square feet of construction area and has a pipeline of over 43 million square feet in development.
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