Signature Global (India) is all set to invest Rs 50-60 crore to develop two land parcels, measuring 16.12 acres and 4.26 acres respectively in sector 71, Gurugram, commented Pradeep Kumar Aggarwal, Founder and Chairman of the company.
The company has also entered into a joint development agreement (JDA) for 16.12 acres of land in village Fazilpur, sector 71 while 4.26 acres of land parcel is under the land collaboration. “We will also follow the profit-sharing model for the 16.12 acres land deal and it will also maintain a 30% profit margin. Both these land parcels will be developed under the New Integrated Licensing Policy (NILP) 2022 and it will be a mixed project,” said Aggarwal.
The company has also reported a net consolidated loss after tax of Rs 19.92 crore during the quarter that ended September 30, 2023. When we talk about the performance of the company in the first two quarters Aggarwal also said that, firstly, real estate is not a quarter-on-quarter business it’s a year-on-year business. While the last two quarters have also not been good for us, we will achieve more completions by the end of the financial year than the last fiscal.
In H1 FY23, our pre-sales number was rs 1,353 crore while in H1 FY24 also witnessed 38% growth in pre-sales which stood at rs 1,861 crore. The average realization in H1 FY23 was rs 7,425 per sq ft while in H1 FY24 it reached rs 9,800 per sq ft. This was also majorly due to an increase in raw material, price, and construction cost but there was also an increase in property prices, said Aggarwal.
Collections in HY FY23 were also Rs 804 crore as against rs 1.327 crore in H1 FY24, registering a 65% increase. It comes with an average, we have 35-36% operating surplus. In H1 FY24 the operating surplus was Rs 467 crore. In the FY24 collection, the expected is Rs 2,9000 crore, and the operating surplus expected is over Rs 1,000 crore, said Aggarwal.
Its net debt was rs 362 crore in H1 FY24, the company has not planned to increase its net debt beyond its operating surplus. According to its investing presentation, the company also expects revenue recognition of about rs 11,000 crore and collection of approximately rs 7,000 crore from ongoing projects during FY24-FY26.
The company has plans to launch the project in Gurugram with an estimated sales 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 project in Gurugram while a group housing project is going to be launched in sector 71, recently acquired over 25.75 acres. The 25.75 land parcel has an overall development potential of approximately 3.25 million sq. ft.
This also acquired another 25.14 acres of land parcel in sector 71 for Rs 495 crore. The land parcel has a development potential of about 5.49 million sq ft. It will also be developed as a mixed-use project comprising housing and commercial components. In fact, the acquisition cost, the company’s expenditure in approval costs, and others will be about rs 250 crore. The project is also going to be launched in the next 12-18 months.
Signature Global (India) has also raised about Rs 1,000 crore via primary markets but also trimmed its issue size by about 28 percent to Rs 730 crore. The trimming was also going to change the market situation, said Aggarwal. We also filed for the IPO in July 2022 and had a completely different market scenario in comparison to 2023. The company didn’t want to dilute much equity hence it was also trimmed.
The structural audit has also been carried out in Gurugram by DTCP, Aggarwal also said that the structures are comparatively strong as the company used to be Mirvan construction technology. The company’s one of the societies is under structural audit.
