He says the company's sales momentum has been very strong and it may exceed its FY14 sales guidance on the back of its largest residential project Lakeside Habitat, which is getting a good response in its pre-launch booking.
Also Read: Have cut borrowing costs by 1% this fiscal: Prestige Est
The realty company is launching a farm house project in Goa for which the approval process is on. It also has two major projects under approval in Hyderabad.
The company sold 904 units (area of 1.55 million square feet) worth Rs 940.2 crore in the quarter gone by, a growth of 24.69 percent compared to a year ago period. In December quarter of 2012, it has sold 682 units aggregating 1.44 million square feet.
Collections during the same period jumped 16.69 percent year-on-year to Rs 592.3 crore from Rs 507.6 crore.
In the last nine months of the current financial year 2013-14, Prestige sold 3,141 units and 0.15 million square feet area of commercial space, totaling to 5.15 million square feet amounting to Rs 3,031.6 crore, according its filing to the exchange.
Below is the edited transcript of Irfan Razack on CNBC-TV 18
Q: You came out with nine months sales data and it looks like you are set to meet the guidance or would there be any change in the current guidance. First of all, would you meet the guidance and would there be any change in the guidance?
A: If you look at what we have done in nine months, we are on course, on target to meet our guidance. I do not want to give any revised guidance upwards, but it looks like we may exceed that and meet it with the way things are going on. So, we are pretty upbeat about the way things are happening.
Q: We have spoken about your guidance in the past so wanted to get a couple of parameters out of the way for Q4. Can you give us a sense in terms of whether the realisations as well as the collections are looking as robust as they were looking in the previous quarter which is up over 15 percent, if I am not mistaken?
A: Our collection for the last quarter was almost Rs 600 crore, which was inline with what was happening and the same track record of collection will happen in this current quarter which is the last quarter of the year. If you look at it, if you compare it year on year, nine months of last year, nine months to this year, we are Rs 1,000 crore up on sales value and we are up on even on number of units sold, quite a lot in terms of number of units also from 3,000 to 3,600.
So all in all it has been very positive, the whole strategy to see that we get our numbers, get out sales, has worked, the entire team is putting effort to get to that goal which we have set and we may easily exceed the goal that we have set for ourselves.
Q: The stock is down 2.5 percent today and while the number itself looks good, the quality might be a bit of a problem. There is an analyst report which talks about a lot of this growth coming from selling inventory and going slow on fresh launches in Bangalore in particular. How valid would that concern be and going forward would you slowdown further in terms of new launches in Bangalore?
A: We have just done the prelaunch of on of our largest projects which is the Prestige Lakeside Habitat. The project is a total developable area of eight million square feet out of which now we have opened 2.4 million sq ft for marketing just now. And since the project is approved and since also the response has been pretty good, in fact on January 19 we have the official launch of Prestige Lakeside Habitat and looking at the momentum we will start opening up phases and we have got 8 million sq ft.
Even if you look at launches we had guided for 14 million sq ft of launches in the current fiscal out of which we have almost reached 13 million sq ft already. So what needs to be launched in this fiscal is only one million sq ft which is as per our guidance. Whoever has written the press report really hasn't understood the overall math of this whole thing. If I say the entire Prestige Lakeside Habitat is opened for launch and if it meets that huge momentum that we are expecting then we have exceeded our guidance quite a lot but we don't want to do that because we also want to open up in phases and get an upside even on price and valuation.
Q: There have been some of your peers within the Bangalore market who have reported a slowdown. In that sense do you think it is more isolated and more company specific or project specific and it is not an overall demand slowdown that you are seeing in the market as a whole?
A: We cannot pin point reasons. Main reason probably is the product that you have to sell so you cannot just say if A company does more and B company does less, that doesn't mean that the market is bad or good. It is just that certain times you have a certain proper location, you have a better product and that is were the momentum we get from.
So the other company may just get something better and then the momentum may increase. So we have to create that excitement in the market. Collectively we are doing that but at the same time we have a strategy in our company and we are pretty well succeeding in our strategy. And we have to give an offering to the buyers and excite the market and it is working as far as we are concerned.
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