Realty firm Mahindra Lifespace Developers Ltd is targeting a 2.5-fold jump in its annual sales bookings to Rs 2,500 crore in the next three years on better housing demand, its MD and CEO Arvind Subramanian has said.
Mumbai-based Mahindra Lifespace had achieved sales bookings of Rs 1,028 crore in the last financial year.
In an interview with PTI, the company’s Managing Director (MD) and Chief Executive Officer (CEO) Arvind Subramanian said: “We have started the first quarter with an extremely strong performance on all fronts”.
The company clocked Rs 600 crore of residential sales during the April-June quarter of the 2022-23 fiscal year against Rs 1,000 crore in the full previous year, he highlighted.
The collections from customers were also healthy at about Rs 270 crore, while industrial leasing was worth Rs 118 crore in the June quarter.
“The first quarter has set us up very well for the year. We are expecting very strong continued growth in quarter two and the rest of the year as well. We will certainly be above our FY22 numbers. The question is how much above, which time will tell, but we are extremely positive,” he said.
Asked about the FY23 target of sales bookings, Subramanian said the company does not give annual guidance but it will be significant growth over the previous fiscal.
The target is to achieve Rs 2,500 crore sales bookings in 2024-25 fiscal 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 on successful launches of two housing projects, but it does not expect similar performances in every quarter.
“We have demonstrated over the past several years that we know how to do strong launches. So, now it is a question of land acquisition, approvals and getting ready for launch. As long as we are able to address that and keep moving that pipeline, I think the numbers will happen,” Subramanian observed.
On new launches, Subramanian said three new projects/new phases of existing projects have been launched so far this fiscal in Bengaluru, Pune and Gurugram.
The company has plans to launch new projects or new phases in Chennai, Pune and Mumbai this fiscal year.
Subramanian said the company will focus on Mumbai Metropolitan Region, Pune and Bengaluru residential markets for new land acquisitions, either outright or in partnerships with land owners.
Mahindra Lifespace also develops housing projects in its industrial townships in Chennai and Jaipur.
Asked about the impact on the company’s sales bookings due to hike in interest rates on home loans, Subramanian said: “So far, thankfully not for two reasons”.
He noted that the entire hike of 140 basis points in repo rate has not been transmitted yet.
But more importantly, Subramanian said the customers are trying to maintain their EMIs by either reducing their loan amount or increasing the tenure of the loan.
“So, so far we are finding, it has not yet affected demand. But, of course, if the rate hikes keep happening and they are expected to keep happening at a certain stage, it will act as a dampener on demand,” he cautioned.
Mahindra Lifespace Developers is one of the leading real estate firms in the country.
The company’s development footprint spans 32.14 million square feet of completed, ongoing and forthcoming residential projects across seven Indian cities.
The company also has over 5,000 acres of ongoing and forthcoming projects under development/management at its integrated industrial parks across four locations.
Mahindra Lifespace Developers reported a consolidated net profit of Rs 75.70 crore in the first quarter of this fiscal year.
The company had posted a net loss of Rs 14.04 crore in the year-ago period.
The total income fell to Rs 117.34 crore during the April-June quarter of the 2022-23 fiscal from Rs 154.20 crore in the year-ago period.