Signature global (India) entered into a joint development agreement (JDA) for 16.12 acres land in village Fazilpur, sector 71 while 4.26 acres land parcel is under land collaboration.
Signature global (India) plans to invest Rs 50-60 crore to develop two land parcels admeasuring 16.12 acres and 4.26 acres respectively in Sector 71, Gurugram, informed Pradeep Kumar Aggarwal, founder and chairman of the company.
The company entered into a joint development agreement (JDA) for 16.12 acres land in village Fazilpur, sector 71 while 4.26 acres land parcel is under land collaboration. “We will follow profit-sharing model for the 16.12 acres land deal and will maintain 30% profit margin. Both these land parcels will be developed under New integrated Licensing Policy (NILP) 2022 and will be mixed-use project,” said Aggarwal.
The company reported net consolidated loss after tax of Rs 19.92 crore during the quarter ended September 30, 2023. Talking about the performance of company in the first two quarters, Aggarwal said, “Firstly, real estate is not a quarter-on-quarter business its a year-on-year business. While the last two quarters have not been good for us, we will achieve more completions by the end of this financial year than the last fiscal.”
In H1 FY23, our pre-sales number was Rs 1,353 crore while in H1 FY24 we have witnessed 38% growth in pre-sales which stood at Rs 1,861 crore. Average realisation in H1 FY23 was Rs 7,425 per sq ft while in H1 FY24 it reached Rs 9,800 per sq ft. “This was majorly due to increase in raw material, land prices, construction cost but there was also an increase in property prices,” said Aggarwal.
Collections in H1 FY23 was Rs 804 crore as against Rs 1,327 crore in H1 FY24, registering 65% increase. “On an average we have 35-36% operating surplus. In H1 FY24 our operating surplus was Rs 467 crore. In FY24 collections expected is Rs 2,900 crore and operating surplus expected is over Rs 1,000 crore,” said Aggarwal.
Its net debt was Rs 362 crore in H1 FY24. The company does not plan to increase its net debt beyond its operating surplus.
According to its investors presentation, the company expects revenue recognition of about Rs 11,000 crore and collections of approximately Rs 7,000 crore from ongoing projects during FY24–FY26.
The company plans to launch projects in Gurugram with estimated sale potential of over Rs 8,500 crore in this financial year. “In the next six months about three million sq ft will be launched in our existing projects in Gurugram while a group housing project will be launched in Sector 71, where we recently acquired over 25.75 acres,” he said. The 25.75 land parcel has the overall development potential of approximately 3.25 million sq ft.
It also acquired another 25.14 acres land parcel in sector 71 for Rs 495 crore. The land parcel has a development potential of about 5.49 million sq ft and will be developed as a mixed use project comprising of housing and commercial components. Apart from the acquisition cost, company’s expenditure in approval costs and others will be about Rs 250 crore. The project will be launched in the next 12-18 months.
Signature global (India) was earlier intending to raise about Rs 1,000 crore via primary markets but trimmed its issue size by about 28 per cent to Rs 730 crore. The trimming was due to difference in the market situation said Aggarwal. “We filed IPO in July 2022, which had a completely different market scenario in comparison to 2023. We didn’t want to dilute much equity hence it was trimmed.”
On the structural audit being carried out in Gurugram by DTCP, Aggarwal said our structures are comparitively strong because we use mivan construction technology. Company’s one society is under structural audit.
Source : ET