Category: Real Estate

Capacite Infraprojects maintains ₹2,000 crore order inflow guidance for FY24

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Mumbai-based civil constructions company Capacite Infraprojects is confident of achieving its order inflow guidance of ₹2,000 crore for the current financial year, said Subir Malhotra, Executive Director, and Chief Financial Officer in a conversation with CNBC-TV18.

Malhotra said the Capacite has already clocked order inflows totaling nearly ₹1,750 crore so far this year. The solid bid pipeline and the need for working capital are the reasons why the company chose to raise funds recently, he noted . 

The company successfully concluded a ₹200-crore Qualified Institutional Placement (QIP) issue on January 11. It approved the allotment of 79.47 lakh equity shares to eligible qualified institutional buyers at the issue price of ₹251.65 apiece.

Also Read | eMudhra launches QIP to raise up to ₹200 crore, floor price set at ₹422 per share

“The main purpose of the QIP is the growth in the market that we foresee. There is a very strong momentum that we see in the business,” Malhotra stated, adding that “Most of the money that is coming in from QIP is going to be used for growth, to improve the executions of the projects at the moment that we already have at hand. And to strongly bid and execute the strong bid pipeline that we have with us.”

Capacite shares have risen nearly 82% over the past year and close to 7% year to date. The company’s market capitalisation is at ₹2,092 crore.

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Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Cement Q3FY24 outlook: What experts anticipate on demand and pricing

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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There are some key factors at play for cement companies in the third quarter of the current financial year 2024. There has been a decline in costs, and the October-December quarterly earnings will come on a low base on a year-on-year (YoY) basis.

Cement prices were raised in the northern, southern and western India at the start of the quarter while in the eastern parts, the price hikes were done in September 2023. A part of these prices increases were reversed in November due to lower demand during festivals, and a labor shortage.

The third quarter will also see the benefits of the fall in energy prices, resulting in lower costs and improved earnings before interest, tax, depreciation, and amortisation (EBITDA). In fact, the costs are expected to be the lowest in seven quarters.

Jefferies estimates that companies in the cement universe could report a 50% YoY growth in EBITDA, with the per tonne EBITDA increasing to four digits. That’s an increase of more than ₹1,000 after nearly eight quarters.

On a regional basis, north-based companies are likely to outperform. That’s going to be driven by higher YoY growth, both in volumes as well as in prices.

After double-digit growth in the first two quarters of the year, expectations are that the cement industry demand will slow down to mid-single digits in the third quarter three of FY24. The state elections, the festival season, and bad weather in South India impacted the construction activity during the past quarter.

Ultratech also reported a 5% growth in India volumes in quarter three. And that’s likely to be in line with industry growth unlike what was seen in the previous few quarters when they led industry growth and in fact, outperformed in the previous quarters as well.

Also Read | FMCG Q3FY24 outlook: Experts weigh in on likely outperformers amid challenges

Jefferies expects ACC and Ambuja to report higher EBITDA growth due to a low base and Shree Cement may benefit from higher pricing in north India.

From the midcap space, JK Cement and Birla Corp could outperform on the growth front.

In a recent analysis of the cement industry on CNBC-TV18, Navin Sahadeo, an analyst at ICICI Securities, pointed out that a combination of price hikes, cost declines, and anticipated operating leverage benefits could contribute to an estimated EBITDA per tonne rise of about 15% to 17% quarter on quarter (QoQ) or around 30-35% year on year (YoY).

Also Read | IT Earnings Preview: Four of India’s top six IT companies may see revenue decline

However, Sahadeo’s optimistic view on the sector seems to be at odds with recent market sentiments. He expressed skepticism about the industry’s actual growth, stating, “If UltraTech Cement has posted a 5% kind of growth YoY, I would like to believe the industry is more in the 3-4% range. So clearly demand has seen a knock because the first half we are growing at 11.5-12%.”

Contrary to Sahadeo’s perspective, Goldman Sachs has downgraded its position on the cement sector from overweight to neutral. In a recent interview with CNBC-TV18, Sunil Koul, Equity Strategist-APAC at Goldman Sachs, shed light on the rationale behind the decision. Koul acknowledged the longer-term potential of the cement industry, citing its connection to both real estate recovery and infrastructure. However, he noted that recent stock surges, exceeding 15%, and anticipated muted volumes over the next couple of quarters led to the downgrade.

“We do think that the absolute upside on a more tactical basis is not going to be there, so that is why we neutralized it,” explained Koul, emphasizing the cautious stance taken by Goldman Sachs in response to the industry’s recent developments.

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Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Meet Vratika Gupta, business woman who bought ₹116 crore luxury house in Mumbai

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Vratika Gupta, a fashion designer and founder of luxury home decor store Maison Sia, has bought a sea-view luxury home in the super-luxury tower ‘Three Sixty West’ in Mumbai’s Lower Parel for a staggering ₹116.42 crore.

As per the real estate data analytics firm IndexTap.com, Gupta’s deal marks 2024’s first single residential deal surpassing the ₹100 crore mark.

The 12,138 square feet luxury house, which offers a stunning view of the sea, comes with eight parking slots and offers substantial living space.

As per official records, the property was registered on January 7.

Several housing projects in Mumbai have seen huge deals, of ₹100 crore and above, in recent months.

Three Sixty West, a twin-tower complex, was in the news last year for recording the biggest property deal in the country — 28 units were bought by family members and associates of D’Mart founder Radhakrishna Damani for ₹1,238 crore.

The promoter of Everest Food Products Private Limited had in October 2023 purchased an apartment worth ₹73.50 crore. Also, in March 2023, a duplex in the complex was bought for around ₹100 crore by Avener Capital and Bajaj Consultants.

Three Sixty West, situated in Lower Parel, offers opulent four and five-BHK apartments in the city. Out of the two towers, one is the Ritz-Carlton Hotel, while the other one houses luxury apartments.

Who is Vratika Gupta?

Gupta is an alumna of the Pearl Academy of Fashion and the National Institute of Fashion Technology (NIFT).

She started her career as an Apparel Designer at Anjuman Fashions Ltd and later worked as a designer for Anju Modi from 2009 to 2011.

From 2011 to 2016, she worked as the Design Director at Two White Birds. The brand blends rich Indian heritage with Western sensibilities. Gupta’s creations featured vibrant colours, classic textiles, and detailing, which gave the brand recognition for style and comfort.

Later, Gupta ventured into entrepreneurship and founded ‘Vratika & Nakul’ in 2017. She is married to Nakul Aggarwal.

Maison Sia, a luxury home decor brand, was founded by Gupta in 2022. It is known for artistically upscale products.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

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Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Trans Harbour Link will have minimal immediate impact on Mumbai real estate: Knight Frank India

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Real estate consultancy firm Knight Frank India believes the ambitious infrastructure endeavour of Mumbai Trans Harbour Link may not have a substantial impact on Mumbai’s real estate landscape.

In an interview with CNBC-TV18, Gulam Zia, Senior Executive Director at Knight Frank India, said he is not convinced that real estate will be changing because of this one bridge happening because a lot of connectors etc., also have to fall in place.

“In due course of time, it will happen. But that said, most of the real estate has already developed and evolved,” he said.

Also Read | Mumbai Trans Harbour Link: Check how much toll vehicles will have to pay on India’s longest sea bridge

While discussing Navi Mumbai real estate prices, Zia remained hopeful about the new bridge attracting the upper crust of society. He anticipates that this development may spark interest in super-luxury projects, particularly along Palm Beach Road or its extension. However, any significant changes may take time to materialise.

Also Read | Mumbai Trans Harbour Link to be inaugurated on January 12, Panvel may see rise in housing demand

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Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Solid demand for homes across all segments, from affordable to uber premium: Keystone Realtors

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Mumbai-based Keystone Realtors, which operates the Rustomjee brand, is seeing solid demand across the board from affordable to luxury homes.

Boman Rustom Irani, CMD, said while Rustomjee caters to every segment from affordable to uber premium, the mid-mass and aspirational segments — priced between ₹1 crore and ₹3 crore, and ₹3 crore to ₹7 crore, respectively  — will continue to be the mainstay all the sales that take place in the Mumbai Metropolitan Region (MMR). 

Irani believes that the younger population of the country is highly aspirational and that is driving up the sales of premium homes. He said while homes over ₹1.5 crore are considered premium across the country, it would be a misnomer for a city like Mumbai, where premium is over ₹7 crore and up to ₹15 crore and super premium beyond that.

“I am happy to state have done extremely well. And we see a great amount of demand coming from these quarters as well,” he said.

Read Here | Ajmera Realty soars over 10% to hit 52-week high on 98% jump in sales in December quarter

On the business development side alone, Rustomjee had clocked about ₹3,400 plus crore projects last year, across the year, Irani said, adding that for the first nine months of this year, the company has done about ₹5,100 crore, or almost 50% higher and there’s still three months for the year to end.

Irani highlighted that Mumbai Trans Harbour Link (MTHL) will also aid real estate demand in Navi Mumbai

MTHL’s proximity to the new airport will drive demand in areas at both its ends. Those areas will also see new industries coming up leading to additional jobs getting added. The airport also brings with its entire logistics hub and major commercial developments. That will boost volumes.

Keystone Realtors has a market capitalisation of around ₹8,074 crore. The company’s shares have gained over 11% year to date and close to 32% in the past year. 

Also Read | Nuvama, Cushman & Wakefield plan to raise ₹3,000 crore to invest in commercial real estate market

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Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Nuvama, Cushman & Wakefield plan to raise ₹3,000 crore to invest in commercial real estate market

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Nuvama Asset Management, the alternatives-focused asset management arm of Nuvama Wealth Management and Cushman & Wakefield, a global commercial real estate services firm, has announced the formation of a new 50:50 joint venture entity, Nuvama and Cushman & Wakefield Management (NCW).

The new entity will act as a platform offering full suite of capabilities for investing in commercial real estate, the companies said.

The joint venture will initially focus on providing investment opportunities to domestic investors in the Indian commercial real estate market, a space which has traditionally been dominated by global investors, they said.

The NCW is planning to launch its first real estate fund – PRIME Offices Fund (PRIME) and aims to raise ₹3,000 crore to invest in prime commercial offices across India’s high-growth markets.

The PRIME Offices fund aims to invest in Grade A+ “Offices of the future” across micro markets in the top 6 cities of Bengaluru, NCR, Pune, Mumbai, Chennai, and Hyderabad that account for 70%+ of the leasing activity within India.

The fund will look at investments across new builds, completed and leased assets.

Commenting on the announcement, Ashish Kehair, Managing Director & CEO, Nuvama Group said. “The Indian economy and financial markets are showing remarkable resilience and remain as one of the only bright spots in a global economy that is still largely recovering. Commercial real estate is a direct beneficiary of India’s growth and has attracted high quality institutional global capital. Through this partnership, we will enable our investors, access to global best practices, fund management by top-notch investing professionals and more importantly, demonstrate alignment of interests through ‘skin-in-the-game’ from both partners.”

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Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Housing demand in India expected to surge to 93 million by 2036: Report

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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The housing demand within India is estimated to surge to a mammoth requirement of 93 million houses by the year 2036. This is according to a report by the Collaborative Real Estate Development Association of India (CREDAI), in conjunction with Liases Foras. The report was unveiled during the New India Summit in Varanasi, Uttar Pradesh.

The projected exponential growth stems from various pivotal factors, such as the increasing population in both urban and rural landscapes, robust macroeconomic indicators, and favorable demographics. Key indicators suggest that Tier II and III cities are poised to take the lead in both driving and meeting this escalating demand. This surge aligns with government initiatives aimed at establishing Smart Ccities and the burgeoning commercialisation activities in emerging regions.

According to the report, 2023 witnessed a substantial influx of registrations and heightened interest from prospective homebuyers. Notably, over 19,050 Real Estate Regulatory Authority (RERA) registrations were recorded nationwide, predominantly in the residential segment, indicating a significant uptick in the housing market.

ALSO READ | Why this real estate company expects property prices to rise further

Furthermore, the report provided insights into the existing housing inventory dynamics. At a pan-India level, the inventory currently stands at 10,42,195 units, showcasing a 3% decline on a quarterly basis but a 2% increase year-on-year.

Cities like Mumbai Metropolitan Region (MMR) and Ahmedabad notably experienced a considerable decline in inventory during the quarter ended September 2023. Tier II cities, buoyed by robust demand, also witnessed a drop in inventory, now averaging a 20-month supply as of the quarter ended September 2023.

Pricing trends revealed a 6% compound annual growth rate (CAGR) in apartment prices, reaching ₹11,660 per square foot, with the National Capital Region (NCR) observing the most substantial spike at 22%. Additionally, the report offered detailed insights into sales figures and carpet prices across major emerging cities such as Nagpur, Bhopal, Surat, and others, outlining the changing real estate landscape across India’s diverse regions.

ALSO READ | Brigade sees potential for further price hikes in residential property

Boman Irani, President, CREDAI, said, “The rapidly growing Indian population and economy has resulted in accelerated demand and supply of homes, while also improving home buyers’ purchasing power and inclining them to buy bigger houses. The country is set to develop manifold in the next 10–15 years, and hence, through this report we look towards setting a new precedent with the emergence of Tier II, III regions and their contribution towards the sector and economy. Housing in such cities will witness a sharper trajectory as crucial Government Programs and increasing commercial commercialization activities come to the fore to create a strong pipeline of projects across all segments.”

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Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Brigade sees potential for further price hikes in residential property

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Despite the recent spike in property prices, Pradyumna Krishna Kumar, Executive Director at Bengaluru-based Brigade Group believes there is headroom for further hikes in residential real estate.

“We are increasing prices in certain projects. Price hikes will continue in all our projects, considering the sales momentum and growth opportunities,” he said, adding the quantum of increases may be different depending on the demand for a particular project.

The company recently signed Memorandums of Understanding (MoUs) with the government of Tamil Nadu, outlining an investment of over ₹3,400 crore for the development of both residential and commercial projects in the state.

Kumar said the residential part of the project will be funded through internal accruals. For the commercial development, the construction will be part funded through debt, he said.

Brigade Group’s commitment to expanding its footprint beyond Bengaluru includes a significant focus on key markets like Hyderabad and Chennai. Kumar is confident of launching and completing these projects, citing a positive market outlook for the next three to four years.

Currently, around 30% of all new projects are in Chennai, 60% in Bengaluru, and 10% in Hyderabad. The plan over the next few years is to reduce the share of Bengaluru to 50% and the balance split equally between Chennai and Hyderabad, he said.

Also Read | Brigade Enterprises leases north-west Bengaluru office space to Sidvin Core-Tech

The company plans to launch around two million sq ft of commercial space in the next three to four quarters.

The market capitalisation of Brigade Enterprises is around ₹21,713 crore. Its shares have gained close to 110% in the past year.

For more, watch the accompanying video

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

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Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Why this real estate company expects property prices to rise further

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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M Murali, Chairman and Managing Director of Bengaluru-based Shriram Properties anticipates that property prices will continue to rise in tandem with the increasing cost of construction.

However, Murali does not see any impact on the demand. He believes the demand in the second half will be much stronger than the first half of the current financial year.

The realty company is targeting 25% compound annual growth rate (CAGR) in revenues over the next two years. “There is a clear visibility of a lineup of projects today in the markets where we operate already, hence there is a clear visibility of growth of a minimum of 25% CAGR,” he said.

The real estate sector has seen significant developments, especially in the context of the Tamil Nadu Investment Summit. Other companies, such as Brigade Enterprises, have announced substantial investments, with plans to inject ₹3,400 crore into Tamil Nadu through the signing of two Memorandums of Understanding (MoUs).

Read Here | Signature Global shares hit 52-week high on best ever pre-sales performance in 9 months of FY24

The market cap of Shriram Properties is ₹2,255 crore and it competes with industry rivals such as Brigade Enterprises, DLF, and Godrej Properties.

Also Read | Top Nifty Realty performers of 2024 get a downgrade from Jefferies after 30% rally

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Macrotech Developers assures 20% bookings growth, citing robust demand across all sectors

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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In an exclusive interview with CNBC-TV18, Abhishek Lodha, MD & CEO of Macrotech Developers, expressed confidence in the real estate market’s resilience, emphasizing, “Demand across the board is quite strong”.

Despite economic fluctuations, Macrotech Developers is poised to achieve its guidance of a 20% growth in bookings.

“We look and guide our investors on a full-year basis. On a full-year basis, we had guided to 20% growth and we feel pretty good about delivering on that 20% growth,” he said.

Reflecting on the overall performance in 2023, Lodha remarked, “Generally 2023 has been a good strong year for the housing market.”

However, Lodha acknowledged variations in growth across segments, noting, “The affordable entry segment, which are homes between ₹30 lakhs and ₹75 lakhs, are the ones which have performed the least well.”

Shedding light on this, he explained that buyers in the affordable segment are adopting a wait-and-see approach, anticipating a decline in interest rates before making substantial investments.

“Interest rates suddenly spiked by 200-300 basis points (bps). That puts a load on the entry home buyer because they are very constrained and it also reduces their loan eligibility. So as interest rates have now started flattening and hopefully will come down in the next 12-18 months, we will start that segment because there is a lot of pent-up demand there,” he added.

Also Read | Affordable housing buyers face over 20% EMI increase in last 2 years

Despite this challenge, Macrotech Developers remains optimistic about the broader market and is actively working on innovative strategies to address the specific needs of the affordable housing segment. Abhishek Lodha assured stakeholders that the company is well-prepared to adapt and capitalise on emerging opportunities in the dynamic real estate landscape.

“Generally there has been a price growth of 6-8%. We like that level of price growth because it is good for the existing buyers but it is below wage growth and therefore improves affordability,” he said.

“On an annualized basis data we had guided at the start of the year to price growth of between 6% and 8%. We like price growth to be a little south of wage growth. Because India story is a volume story, there is a lot of growth in housing volume that can happen and should happen as India moves from a low-income country to a mid-income country. The way that happens is if affordability keeps getting better. Interest rates are going to perform and help affordability over the next two years,” he explained.

While sharing his expectations from Union Budget 2024, he said, “Housing has such a huge multiplier effect on the economy. So to sustain our growth, it’s very important that the volume of housing keeps increasing and growing. And therefore today, when the affordable segment, as we discussed, has been hit by interest rate increases, which they had nothing to contribute to. We need to support them in getting onto the housing ladder as soon as possible. So whatever the government can do to put more money in the hands of entry-level buyers, those who make between ₹5 lakhs and ₹15 lakhs a year and are entry-level buyers, would really have a cascading multiplier effect on the economy. And I hope that the honorable Prime Minister and the honorable Finance Minister can think about this and support the homebuyer, getting on the housing ladder as early as possible.”

With a market capitalization of ₹1,05,388 crore, Macrotech Developers, formerly known as Lodha Developers, stands as an Indian multinational real estate firm based in Mumbai, India. Established in 1980, the company was founded by Mangal Prabhat Lodha.

For more, watch the accompanying video

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow