Nitesh Estates has inked a joint development agreement project in Bengaluru, in which the company has two-third economic interest. In an interview to CNBC-TV18, ED & COO Ashwini Kumar spoke about this project and the road ahead.
The company hopes to fetch total revenue of Rs 375 crore from this project. Hence it expects significant improvement in profitability over next 36 months.
At 12:10 hrs Nitesh Estates was quoting at Rs 16.80, up Rs 0.40, or 2.44 percent.
Below is the verbatim transcript of Ashwini Kumar's interview with CNBC-TV18's Nigel D'Souza and Reema Tendulkar.
Reema: With respect to this joint development, can you tell us what will be the contribution of Nitesh Estates, what is it as a percentage that you hold in this joint development and what will be the revenues that will accrue to you?
A: We own about two-thirds of the economic interest. This is a 12 acre project, so in terms of revenue to the company, it will be Rs 375 crore.
Reema: In one year or this is the total revenue?
A: No, this is the total revenue for the project and since the construction will take another three years, therefore by the time that we recognize the entire revenue, it will be three to three and a half years.
Reema: Rs 375 crore spread over three years, so how much are you looking to get in the first year, in second year or most of it will come through in the third year, how are you expecting revenues to flow in the next three years from this particular project?
A: In the first year it will be barely about 10 percent, in the second year it will be roughly about 40 percent and about 50 percent gets recognized in the third year. That is the rough math which you would get out of the normal revenue recognition arithmetic.
Nigel: For this year itself what will be the revenue recognition?
A: This particular project we may not be able to start recognising any revenue from this year.
Nigel: What is your total revenue recognition you are aiming at in this year?
A: This year it should be double what we did last year.
Nigel: Rs 600 crore?
A: Yes.
Nigel: And what about your margins?
A: Our EBITDA margins are in the region of about 21-24 percent, which gives a profit after tax (PAT) of about 11-15 percent.
Reema: Any more launches?
A: Yes, at least 6 launches will definitely be there in this fiscal year and one of them should happen in the coming week itself at the most in the coming week. This very project, we are ready with everything else so we should be able to do a pre-launch on this. Apart from that another 5 projects are on the anvil, so this year we should be able to bring in another - in terms of revenue potential - another Rs 1,200 crore.
Nigel: Given that the outlook is looking so good as per what we have been speaking about in the last few minutes, last year itself promoters increased their stake by a percent and a half odd. Could we look out for some more increase in this year or is there any kind of a promoter uptick that we could see with regard to the shareholding?
A: I don't think there is anything currently that I can speak of about this.
Nitesh Estates stock price
On June 16, 2014, at 14:14 hrs Nitesh Estates was quoting at Rs 17.10, up Rs 0.70, or 4.27 percent. The 52-week high of the share was Rs 18.70 and the 52-week low was Rs 8.70.
The company's trailing 12-month (TTM) EPS was at Rs 0.53 per share as per the quarter ended March 2014. The stock's price-to-earnings (P/E) ratio was 32.26. The latest book value of the company is Rs 29.80 per share. At current value, the price-to-book value of the company is 0.57.
Anda sedang membaca artikel tentang
Eye Rs 375cr revenue from Bengaluru project: Nitesh Estates
Dengan url
https://kesehatanda.blogspot.com/2014/06/eye-rs-375cr-revenue-from-bengaluru.html
Anda boleh menyebar luaskannya atau mengcopy paste-nya
Eye Rs 375cr revenue from Bengaluru project: Nitesh Estates
namun jangan lupa untuk meletakkan link
Eye Rs 375cr revenue from Bengaluru project: Nitesh Estates
sebagai sumbernya
0 komentar:
Posting Komentar