In an interview to CNBC-TV18, Pirojsha Godrej, the company's MD & CEO, said though the EBITDA margins have got affected, yet it was a good quarter for the company operationally.
Below is the interview of Pirojsha Godrej with CNBC-TV18's Manasvi Ghelani.
Q: About the Q4 results…
A: We have had a great quarter for the company operationally. The reason that the margins this quarter have dropped is that we had a large amount space that we sold in one of our old commercial projects which is a loss making project for us but which had also been a project where selling the inventory had proved quite difficult and was taking much more time than we would have liked. It is a substantial accomplishment we feel that we have been able to sell as much spaces we have in that project but the in quarter impact of that is a much lower EBITDA margin. However, if you take that one project out, both year-on-year (YoY) and quarter-on-quarter (QoQ) EBITDA margin is actually improved.
Manasvi: Which one was this and since when are you looking at this particular project to be on sale?
A: This project has been with us for sometime. It is called as Godrej Waterside. It is located in Kolkata and we sold over 400,000 square feet of space in that project in Q4 and with a little bit of additional sales in Q1 we have now completely exited that project. As I said the impact in quarter on EBITDA margins is a negative one but overall for the company it is a very positive development.
Manasvi: In terms of your revenue recognitions, which were the projects that have seen in this particular quarter?
A: We had a couple of new projects entering the recognition threshold. One is a project called Godrej Platinum which is very high-end residential project we are doing in Kolkata. The other one is a project in Chembur called Godrej Serenity.
Manasvi: In terms of realisations that the company has seen what has been the substantial rate for the FY15?
A: Each project is quite different. The blended rate for the year was about Rs 8000 a square foot.
Manasvi: Do you see this continuing through the year and what is the project pipeline for FY15?
A: The realisation is largely an effect of which particular projects are contributing in any given quarter, any given year. The projects that are located in Mumbai particularly in high-end locations like BKC will pull those realisations up. The blended rate to us isn't of much of interest. We do look at it quite closely at the project by project level.
I think one of the best things that we have had going for the company over the last few years is that we have been adding projects at a very regular basis. We added another eight projects to the company last financial year including as many as four in the Q4. So, all of these projects are projects we will hope to launch in the current financial year. We have already launched two new projects in April.
One in Pune called Godrej Prana and another one just last weekend in Gurgaon called Godrej Oasis. Both those launches have gone well. We have several new projects that we are launching along the year. If you look at the year as a whole and combine both new project launches as well as new phase launches we expect about 15 launches this year.
via Business - Google News http://ift.tt/PWSzs5
Put the internet to work for you.
0 comments:
Post a Comment