Mahindra Lifespaces eyes ₹2,500 crore annual sales booking by FY25 | Tech US News


Mahindra Lifespace Developers is looking at booking annual sales of ₹ 2,500 crore by FY25, nearly 2.5 times the ₹ 1,000 crore reported last fiscal.

The company saw over 30 percent year-on-year sales bookings in the second quarter of FY23 (ended September 30), reaching nearly ₹400 crore.

According to Mahindra Lifespaces MD and CEO Arvind Subramaniam, half-yearly sales were ₹1,001 crore – almost double from H1FY22 – and are indicative of continued growth in housing demand. Collections for the six-month period were ₹550 crore, “before projections.”

The listed company will launch new residential projects in Bengaluru, Chennai, and Kalyan (Mumbai), among others, in H2FY23.

According to Subramaniam, the strong booking pipeline and increased demand in residential projects has led to preponing of launches, especially for its Bengaluru project.

“So far, mortgage rate hikes have had little impact on demand. Post-Covid, the residential sales market continues to be consumer friendly. Now, after the rate hike, people have started increasing the down payment for their homes. have done so that the EMI amount remains within their budget or plans. Business line.

Price increase

Mahindra Lifespace will see a sequential price increase of 1.5–2 percent in Q3. However, in some popular or premium projects, the increase can be as high as 8-10 percent.

“Our strategy has been to increase in the range of 1.5-2 – 2 per cent every quarter. In certain projects, the increase could be 8-10 per cent. And we will continue to do so, except in certain quarters. In Mahi, due to increase in input cost, the increase was higher,” explained Subramaniam.

Input costs of steel, copper, cement have been “stable” for the past few quarters, but remain at high levels on a two-year basis. Apart from the price hike, the company was working on streamlining its procurement process to mitigate the impact of higher commodity prices.

Industrial leasing

“In a seasonally weak quarter for residential real estate, sales bookings increased year-on-year. Industrial leasing also maintained a strong pace, reaching ₹ 68 crore,” he said. For H1, the value of industrial leases was ₹186 crore, and the company plans to “double” the number by the end of the financial year.

In addition to production-linked incentive schemes, policy support for manufacturing activities, and provision of state-level benefits to investors, industrial parks have seen an increase in leasing activities over the last 4-5 years.

Subramaniam said, “Leasing activity has good forward-looking visibility.


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