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The founder and chairman of Signatureglobal (India), Pradeep Kumar Aggarwal, has disclosed to Gurugram that the business intends to invest between Rs 50 and 60 crores towards the development of two land parcels in Sector 71, measuring 16.12 acres and 4.26 acres, respectively.
For 16.12 acres of property in the village of Fazilpur, sector 71, the company signed a joint development agreement (JDA), and for 4.26 acres of land, there is a land collaboration.
For the 16.12-acre land deal, we will adhere to a profit-sharing arrangement while keeping a 30% profit margin. According to Aggarwal, both of these land lots would be built as mixed-use projects in accordance with the New Integrated Licensing Policy (NILP) 2022.
The company’s quarter ending September 30, 2023, saw a net consolidated loss after tax of Rs 19.92 crore. Speaking about the company’s performance in the first two quarters, Aggarwal stated, “First off, the real estate industry operates on a year-over-year basis rather than a quarter-to-quarter one.
Even if the past two quarters have not gone well for us, we will complete this fiscal year with more finishing than the previous one.”
Signatureglobal Future Projections And Launch Plans In NCR
Our pre-sales figure in H1 FY23 was Rs 1,353 crore, but in H1 FY24, pre-sales increased by 38% to Rs 1,861 crore. The average realisation in H1 FY24 was Rs 9,800 per sq ft, compared to Rs 7,425 per sq ft in H1 FY23. “This was mainly due to surge in raw material, land prices, construction cost but there was also a growth in property prices,” Aggarwal stated.
Revenues in the first half of FY23 were Rs 804 crore, up 65% from Rs 1,327 crore in the first half of FY24. We typically have an operating surplus of 35–36%.
We had an operating surplus of Rs 467 crore in H1 FY24. Aggarwal stated, “In FY24, collections are anticipated to be over Rs 1,000 crore, with an operating surplus of Rs 2,900 crore.
In H1 FY24, its net debt was Rs 362 crore. Beyond its operating surplus, the corporation has no intention of increasing its net debt.
Signatureglobal Intends To Start Rs 8500 Crore Projects In Gurugram
In its presentation to investors, the business stated that it anticipates revenue recognition of over Rs 11,000 crore and collections from current projects of roughly Rs 7,000 crore in FY24–FY26.
In this fiscal year, the company intends to start projects in Gurugram with a projected sales potential of more than Rs 8,500 crore.
“In the next six months about three million square feet of space will be launched in our existing projects in Gurugram while a new group housing project will be launched in Sector 71, where we recently acquired over 25.75 acres of land,” he stated. The entire development potential of the 25.75-acre plot of land is over 3.25 million square feet.
Signatureglobal Plans To Develop Mixed-Use Project
For Rs 495 crore, it also purchased an another 25.14-acre land tract in sector 71. The property tract will be developed as a mixed-use project with residential and commercial elements, with a possible development area of about 5.49 million square feet.
In addition to the acquisition cost, the corporation will spend roughly Rs 250 crore on approval fees and other expenses. In the upcoming 12 to 18 months, the project will be launched.
Prior to this, Signatureglobal (India) planned to raise over Rs 1,000 crore through primary markets; however, it reduced the size of its offering by roughly 28%, to Rs 730 crore. Aggarwal stated that the cutting was necessary because of the shifting market conditions.
The market environment was entirely different when we filed for an IPO in July 2022 as compared to the year 2023. It was cut since we didn’t want to significantly reduce the equity.
Regarding the structural assessment that DTCP is conducting in Gurugram, Aggarwal stated that we employ Mivan building technology, which makes our structures relatively strong. One society within the company is undergoing a structural audit.
Source-ET
