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Moderator:
Abhijit Diwan:
Mohit Goel:
Page 1 of 9
Om
maxe Limited
d Q4 & FY 16
1 conf-call ttranscript
May 25, 2016
0.64 mn
n sq. ft. of residentia
al development and 0.68 mn sq. ft. of
comme
ercial dev
velopment. Total sales value of this are
ea was
around
d Rs. 313
3 crores with an average
e realizattion of
approxximately Rss. 2368 per sq. ft. Grroup Housiing in Allahabad,
Luckno
ow and floors
f
at New Cha
andigarh were the major
contrib
butors to sa
ales this qua
arter.
For the
e year ended March 2016 we sold
s
a tota
al of 4.89 m
mn sq.ft
consistiing of 3.74
4 mn sq.ftt of reside
ential spac
ces and 1..15 mn.
Sq.ft off commerc
cial space
es with a to
otal sales value
v
of Rs. 1,648
crores. The avera
age realiza
ation for th
he year is Rs.
R 3,372 per sq.ft.
Group Housing in New Ch
handigarh, Allahaba
ad and Lu
ucknow
were th
he major contributors
c
s to sales fo
or full year period.
During the quartter gone b
by we dellivered ~ 0.80
0
mn. Sq.ft.
S
of
space at variou
us projectts includin
ng New Chandigar
C
rh and
Greate
er Noida. For
F the yea
ar ended we delivered a tota
al of 6.0
mn sq
q.ft of spa
ace at various
v
pro
ojects inc
cluding Lu
ucknow,
Faridab
bad, Indore, New Ch
handigarh and Noida taking th
he total
area delivered in real estate to 69.29 mn sq.ft. Overall
O
dellivery of
the gro
oup stands at 101 mn
n sq.ft.
I will no
ow brief you on cassh flow po
osition for the
t
quarte
er. Total
inflows from ope
erations were
w
Rs. 380
3
crores. The sam
me was
utilized towards Constructio
C
on, and ap
pproval charges to th
he tune
of Rs. 214
2 crores, Selling, HR
R & Admin expenses of Rs. 174
4 crores,
Interestt paymentt and inte
erest expe
enses of Rs. 49 crores. Net
borrow
wings for the
e quarter were
w
Rs. 46
6 crores.
e year end
ded March 2016 Total inflowss from ope
erations
For the
were Rs. 1406 cro
ores. The sa
ame was utilized towards Consttruction
and ap
pproval charges to th
he tune of Rs. 847 cro
ores, Selling, HR &
Admin expenses of Rs. 569 crores, Intterest paym
ment and interest
expensses of Rs. 180
1
crores and Divid
dend payo
out of Rs.9 crores.
Net borrowings fo
or the yearr were Rs.210 crores.
The co
ompany ha
as declare
ed 7% dividend for the year 2016
2
as
compa
ared to 5% in the prec
ceding yea
ar.
ompany has won special jury award for exxcellent
The co
contrib
bution to re
eal estate in Tier 2 & Tier 3 citie
es at the property
p
Page 2 of 9
Om
maxe Limited
d Q4 & FY 16
1 conf-call ttranscript
May 25, 2016
awardss 2015 wh
hich was presented by Hono
orable Min
nister of
State fo
or Housing & Urban Poverty
P
Alle
eviation.
Our Ne
et Worth as
a on Marc
ch 31, 2016
6 stands at
a Rs. 2290 crores.
Gross Debt
D
as on
n March 31, 2016 stan
nds at Rs. 1306 crore
es, while
the Ne
et Debt sto
ood at Rs. 1070 crorres. As on March 20
016, the
gross debt
d
equity
y ratio of the compa
any stood at 0.57, while the
net deb
bt equity ra
atio for the
e company
y stood at 0.46
Now w
we are ope
en for all the
e question
ns.
Modera
ator:
Thank you
y
very much.
m
Ladies and ge
entlemen, we
w will now
w begin
the qu
uestion and
d answer session.
s
We
e will take the first question
q
from th
he line of S. Sharma frrom CRISILL. Please go
o ahead.
S. Sharma:
Mohit G
Goel:
Around
d 77 crores.
Mohit G
Goel:
All the
ese are ne
ew launch
hes only mostly be
ecause we
e have
launched a proje
ect in Bhattinda and one comm
mercial pro
oject in
Faridab
bad and another
a
floo
or project in
i Vrindava
an. So basically in
all thesse cities we
w have townships.. So in township we
e keep
launching new projects. So we dont
d
con
nsider the newly
cts as a part of the
t
old project.
p
All these
launched projec
ation which
h we are giving
g
is completely new
n
launch
hes.
informa
S. Sharma:
Was the
ere any plo
otted saless this quartter?
Mohit G
Goel:
We did
d plotted sales in Indore and Bhatinda of around
d 40-50
crores.
S. Sharma:
Mohit G
Goel:
Page 3 of 9
Om
maxe Limited
d Q4 & FY 16
1 conf-call ttranscript
May 25, 2016
S. Sharma:
Mohit G
Goel:
So whe
erever we are present we are not witne
essing, at le
east for
our pro
ojects. Yes, if you talk about the areas, if you talk
k about
Luckno
ow or Chandigarh, or
o Ludhiana where we
w are pre
esent in
terms of
o the who
ole industry
y so there is a correction of prices of
10-15%. Now it is
i not affe
ecting ourr projects because I have
always been tellling if you are the #1
# player of that ciity your
rates will
w go up and you will be ab
ble to sell because all the
buyers they shift to
t your com
mpany.
S. Sharma:
Mohit G
Goel:
S. Sharma:
Will it be
b possible for you to
o share figu
ure in termss of million square
feet ho
ow much we
w are loo
oking at in FY17? I understand that in
terms of
o sales it is around 10
000 crores for
f that plo
ot?
Mohit G
Goel:
Page 4 of 9
Om
maxe Limited
d Q4 & FY 16
1 conf-call ttranscript
May 25, 2016
In terms of square
e feet sir is it possible to share a number fo
or you?
Mohit G
Goel:
I will no
ot be able to give yo
ou any num
mber in terms of squa
are feet
but my
y team will provide you
y
a number. It is go
oing to be
e a very
approxximate num
mber.
Modera
ator:
Next qu
uestion from the line of Nilesh Karani
K
from
m Magnum
m Equity.
Please go ahead
d.
Nilesh Karani:
Goel:
Mohit G
Nilesh Karani:
And on
n your lau
unch in Lucknow Hi-Tech, wha
at timefram
me you
are loo
oking at?
Mohit G
Goel:
I think we
w will be
e launching
g in next quarter.
q
W are waiiting for
We
the approvals. Th
hey have sent
s
an ap
pproval right now, we
w have
got one
e major ap
pproval an
nd we are just waitin
ng for the building
b
plan off the grou
up housing which we
e are think
king of lau
unching
and we
e will be launching it in the next quarter.
Nilesh Karani:
Page 5 of 9
Om
maxe Limited
d Q4 & FY 16
1 conf-call ttranscript
May 25, 2016
Mohit G
Goel:
Nilesh Karani:
What ty
ype of realization we
e are lookin
ng there?
Mohit G
Goel:
Realiza
ation will be
b low. It will be arround Rs.2
2200 to 23
300 per
square feet.
Modera
ator:
Siddha
arth Khemk
ka: Just wanted
w
to understand the overall
o
rea
al estate market
especia
ally in the regions tha
at we are and the im
mpact of the new
real esttate regula
ation bill on
n our business?
Mohit G
Goel:
I would
d say it is fantastic markets
m
fo
or people who
w
are doing
d
a
good jo
ob, who are
a deliveriing and who are de
elivering wh
hatever
they prromise. No
o problem in terms of
o market because
b
the end
user is coming
c
an
nd end use
er is buying
g so it is a bonanza for end
user to come and
d to buy ho
ome right now so tha
ats where we are
concen
ntrating on
n. And if w
we talk ab
bout RERA, RERA I think was
suppossed to com
me since la
ast two to three years and I am
m really
happy that it ha
as come a
at least no
ow people
e know who
w
is a
good developer
d
and bad developer. For them
m five years back
everybody was good. You
u market yourself well
w
and you
y
are
good but he can diffe
erentiate between the two. RERA
differen
ntiated furtther and itt is a good thing thatt it will flush
h out all
bad fisshes of a pond an
nd overall the industry respect and
industry
y trust will go up. It iis a very good
g
move
e and I am
m really
happy with the move.
m
Modera
ator:
The ne
ext question is from the
t
line off Abhishek
k Anand frrom JM
Financiials. Please
e go ahead
d.
Abhishek Anand::
Just a couple of
o things, firstly
f
we had some
e announc
cement
during the budge
et regardin
ng the tax waiver forr particular size of
apartm
ments. So ju
ust wanted
d to underrstand is Omaxe specifically
targetin
ng that se
egment? Do
D we ha
ave the fo
ormal notiffication
from th
he governm
ment, are we
w working towards it? And se
econdly
also go
overnmentt had ann
nounced in
nterest sub
bvention scheme
s
where I think a fixx percent for a partiicular loan
n amount?
? So are
Page 6 of 9
Om
maxe Limited
d Q4 & FY 16
1 conf-call ttranscript
May 25, 2016
we see
eing tractio
on in those
e schemes for the pro
ojects we have
h
or
ent there?
there iss a limited developm
d
?
Mohit G
Goel:
Whatev
ver knowle
edge I hav
ve Abhishek I dont th
hink this is a single
develo
oper who has a launched the projec
ct in that space
becausse of vario
ous reason
ns lets not go into th
he reasonss but in
our tow
wnships we
e have EW
WS flats an
nd LIG flats and the
ere is a
possibility that EW
WS flats ca
an come under
u
this scheme and
a
we
g in this scheme for
f
those EWS flats but we are
a
not
may go
concen
ntrating on
n this partticular segment because it is just
j
not
viable as
a of now.
Abhishek Anand::
Becausse I though
ht that the tax break which the governme
ent had
given itt is lucrativ
ve enough
h. Three ye
ears I think
k the consttruction
time ho
orizon plus tax waiverr and all made
m
it a bit
b more atttractive
for both buyers as
a well as sellers?
s
So just wante
ed to understand
whats the conce
ern? Why iss not taking
g off?
Mohit G
Goel:
I will giv
ve you thre
ee points #1. FSI co
ost, #2. De
ensity of an
ny state
govern
nment. They dont allo
ow us morre than 60 houses in an
a acre
so you
u cannot make a house
h
lesser than 1000 squarre feet.
Otherw
wise you ma
ake house
e of 500 squ
uare feet but
b now yo
ou have
to mak
ke house of 5000 squa
are feet jusst to be in that density ratio.
And #3
3, is the exe
ecution. Th
hese three reasons I dont
d
think
k so any
develo
oper is able
e to explo
oit this parrticular opportunity. People
are tryiing to go into say not even tier-2, tier-3 going into
o tier-4,
and try
y to do this but it is jusst an exec
cution play
y. It becom
mes very
difficultt for any national de
eveloper to
o go into tier-4 and execute
e
this very well. Be
ecause th
he profit margins
m
are not hug
ge and
executtion is just trremendou
us.
Abhishek Anand::
Is the fo
ormal notiffication out yet?
Mohit G
Goel:
Notifica
ation for th
his policy ha
as been ou
ut.
Modera
ator:
Sayan Sharma:
Page 7 of 9
Om
maxe Limited
d Q4 & FY 16
1 conf-call ttranscript
May 25, 2016
expand
ded why your
y
emplo
oyee cost come down a little bit just
wanted
d to understand the reason?
Mohit G
Goel:
The ma
ajor reaso
on is beca
ause we have
h
been
n automizing our
constru
uction divission and in
n fact man
ny places we
w have re
educed
our cosst and you
u know real estate margins is no
ot going to
o go up
our cost ve
and we
e are just optimizing
o
ery well an
nd in consttruction
we hav
ve reduced
d our cost very well.
Modera
ator:
Next qu
uestion is frrom Surbhii Lohiya fro
om Dynamic Equities.. Please
go ahe
ead.
Surbhi Lohiya:
We hav
ve been se
eeing realtty sector fa
acing a lott of stress but
b post
budget we are seeing
s
som
me buying coming in
n that secttor and
are prices reflect
r
that. So I just wanted
w
to
o understan
nd your
the sha
future prospects as in how
w you place yourself because
e I was
seeing that yourr debt-equ
uity ratio iss low com
mpare to in
ndustry,
your prrofitability numbers are good.. What are
e your exp
pansion
plans? How do you place yourselff in the coming
c
years like
probab
bly a year or
o two?
Mohit G
Goel:
I am no
ot going to be too aggressive
e in giving the answe
er. I will
just say
y that we will
w be exp
panding an
nd we will be improv
ving our
numbe
ers by 10-15
5%. It migh
ht bump up to 20% in
n the next one to
two ye
ears becau
use of thesse two launches whiich we are
e doing
this yea
ar.
Surbhi Lohiya:
Mohit G
Goel:
See the
e commerrcial projec
ct is majorrly is a by-p
product because
we do a township and in a township you gen
nerally sell houses
first, re
esidential first
f
and once
o
therre are 100
00 families, 2000
familiess staying in
n township
p and then
n there is a requirem
ment of
comme
ercial and that is goiing to be time
t
to sell commerc
cial. But
in this year
y
and coming
c
ye
ears we will be conc
centrating majorly
on com
mmercial as well only
o
in on
ne area th
hat is Farridabad
becausse over there we
e are do
oing a 50
5
acres mixed
develo
opment prroject so there we
e will be launching
g more
comme
ercial proje
ect.
Page 8 of 9
Om
maxe Limited
d Q4 & FY 16
1 conf-call ttranscript
May 25, 2016
Modera
ator:
Abhijit Diwan:
Modera
ator:
Page 9 of 9