Real estate company Mahindra Lifespace Developers Ltd is targeting a 2.5-fold increase in its annual sales bookings to Rs 2,500 crore over the next three years on better housing demand, its managing director and CEO Arvind Subramanian said.
Mumbai based Mahindra Lifespace had recorded sales bookings of Rs 1,028 crore in the last financial year.
In an interview with PTI, Arvind Subramanian, the company’s Managing Director (MD) and Chief Executive Officer (CEO), said, “We started the first quarter with an extremely strong performance on all fronts.”
The company achieved Rs 600 crore in residential property sales in the April-June quarter of fiscal 2022-23, up from Rs 1,000 crore for all of the previous year, he highlighted.
Collections from customers were also good at around Rs 270 crore while industrial leasing was worth Rs 118 crore in the June quarter.
“The first quarter has positioned us very well for the year. We expect very strong continued growth in the second quarter and for the remainder of the year. We will certainly be above our FY22 numbers. The question is how much about which, time will tell, but we’re extremely positive,” he said.
When asked about the target of sales bookings for FY23, Subramanian said the company isn’t providing full-year guidance, but it will be significant growth over the previous fiscal year.
The target is to reach Rs. 2,500 crore in sales bookings in FY 2024-25 against Rs. 1,000 crore in 2021-22, he outlined.
The company achieved sales bookings of Rs 600 crore in the first quarter of this fiscal year due to the successful launch of two residential developments, but does not expect similar performances every quarter.
“We have proven over the last few years that we know how to make strong starts. So now it’s all about land acquisition, permits and preparations for launch. As long as we’re able to address that and continue to move this pipeline forward, I think the numbers will happen,” Subramanian noted.
In terms of new launches, Subramanian said that so far this fiscal year, three new projects/new phases of existing projects have been launched in Bengaluru, Pune and Gurugram.
The company plans to launch new projects or new phases in Chennai, Pune and Mumbai this fiscal year.
Subramanian said the company will focus on the Mumbai, Pune and Bengaluru metropolitan area housing markets for new land acquisitions, either directly or in partnerships with landowners.
Mahindra Lifespace is also developing residential projects in its industrial communities in Chennai and Jaipur.
When asked about the impact on the company’s sales bookings due to the increase in home loan interest rates, Subramanian said, “Not for two reasons, thankfully.”
He noted that the entire 140 basis point increase in the repo rate has not yet been submitted.
But more importantly, Subramanian said customers are trying to maintain their EMIs by either reducing their loan amount or extending the loan term.
“So so far we’ve found that this hasn’t impacted demand yet. But if rate hikes continue to take place, and are likely to continue to take place at some point, it will obviously dampen demand,” he warned.
Mahindra Lifespace Developers is one of the leading real estate companies in the country.
The Company’s development space comprises 32.14 million square feet of completed, ongoing and upcoming residential developments in seven Indian cities.
The Company also has over 5,000 acres of ongoing and upcoming projects under development/management at its integrated industrial parks in four locations.
Mahindra Lifespace Developers reported a consolidated net profit of Rs 75.70 crore for the first quarter of this fiscal year.
The company had posted a net loss of Rs 14.04 crore in the same period last year.
Total revenue fell to Rs.117.34 crore in the April-June quarter of FY2022-23 from Rs.154.20 crore in the same period last year.
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