Any current/future new fundraising through debt or equity?

Eldeco Housing & Industries Limited plans an investment of about ₹200 crores primarily for new projects including "Eldeco Trinity." To support this, the Company plans to raise approximately ₹100 crores of debt in the current fiscal year. The debt is aimed not only for ongoing projects but also for fresh land acquisition and business development. The Company currently holds around ₹140 crores cash on the books but is still opting for debt to maintain a balanced capital structure and support growth. There is no mention of any imminent equity fundraising; focus is on leveraging debt for expansion

Any current/future capex/capital investment/strategic investment?

Eldeco plans an investment of about Rs. 200 crores, which includes the new high-rise luxury project "Eldeco Trinity" (3 acres in a prime Lucknow location with approvals underway). To fund this, the company intends to raise around Rs. 100 crores in debt during the year. Additional land acquisition is targeted, with about 50 acres of new land parcels planned for assembly in the next one to two quarters to fuel business development and launches. The debt raised will not only fund existing projects but will also be used opportunistically for fresh land aggregation. Prepayment options are available

Future growth expectations in sales/revenue/volumes?

The company expects bookings to more than double in FY24 compared to last year's 100-120 crores, indicating strong future sales growth. Despite a muted first quarter, new launches such as Imperia Phase 2 and 3, Latitude 27, and Trinity (about 300 crores potential sales) are expected to drive growth from Q2 onwards. Revenue appears "jumpy" quarter-on-quarter due to the timing of completion certificates and transfer deeds, with a significant revenue increase anticipated once approvals are received. Management refrains from giving precise 5-year revenue guidance but highlights Lucknow as a

Future growth expectations in earnings/operating earnings/profits/EPS?

Revenue and profit can appear volatile quarter-on-quarter due to revenue recognition linked to completion certificates and transfer deeds, but underlying business performance is strong. The company expects bookings to more than double in FY24 compared to previous years, signaling robust sales growth. EBITDA margins are anticipated to normalize around 35%-40%, with volatility primarily due to timing of project completions. Key launches this year: Imperia Phase 2 and 3, Latitude 27, and Eldeco Trinity, enhancing future revenue potential. Land acquisition of approx. 50 acres is planned in next 1-

Current/ Expected Orderbook/ Pending Orders?

Eldeco is actively working on land assembly, targeting at least 50 acres of new land parcels in the pipeline, expected to complete assembly in the next quarter or two. Approvals for these lands typically take 6-9 months post-assembly before projects hit the market. Term sheets for new projects are out, with more concrete information expected in upcoming calls. The Company plans to launch multiple projects including Imperia Phase 2 and 3, Latitude 27, and Trinity (a 3-acre parcel), indicating a growing order book. Booking numbers are expected to more than double this year compared to last year'

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Eldeco Housing & Industries LtdQ2 FY23Realty

Eldeco Housing & Industries Ltd Q2 FY23 Earnings Call Analysis

Revenue, margin, capex, fundraise and order book outlook from management commentary.

Price: ₹805P/E: 36.1Market Cap: ₹818 CrSector: Realty

Management growth scorecard

Revenue

Category 2

Margin

Category 3

Fundraise

Yes

Order

Yes

Capex

Yes

3 of 5 growth signals are positive.

Full analysis

Revenue guidance

Category 2

→The company expects bookings to more than double in FY24 compared to last year's 100-120 crores, indicating strong future sales growth.
→Despite a muted first quarter, new launches such as Imperia Phase 2 and 3, Latitude 27, and Trinity (about 300 crores potential sales) are expected to drive growth from Q2 onwards.
→Revenue appears "jumpy" quarter-on-quarter due to the timing of completion certificates and transfer deeds, with a significant revenue increase anticipated once approvals are received.
→Management refrains from giving precise 5-year revenue guidance but highlights Lucknow as a growing, lucrative market with increasing demand.
→Booking run rate and collections are expected to increase with a lag; bookings drive collections after 2-4 quarters.
→Business development, including land acquisition (targeting 50+ acres), is set to pick up pace, supported by planned debt raising.
→Overall, the company anticipates much higher top-line figures in the near term and beyond.

Margin guidance

Category 3

→Revenue and profit can appear volatile quarter-on-quarter due to revenue recognition linked to completion certificates and transfer deeds, but underlying business performance is strong.
→The company expects bookings to more than double in FY24 compared to previous years, signaling robust sales growth.
→EBITDA margins are anticipated to normalize around 35%-40%, with volatility primarily due to timing of project completions.
→Key launches this year: Imperia Phase 2 and 3, Latitude 27, and Eldeco Trinity, enhancing future revenue potential.
→Land acquisition of approx. 50 acres is planned in next 1-2 quarters to support growth.
→Management is cautiously optimistic about growth but avoids making explicit 5-year revenue or profit predictions.
→Increased debt is being raised strategically to finance expansion and land acquisition, underpinning growth ambitions.
→Overall market demand in Lucknow is strong with supply constraints, providing a favorable growth outlook for Eldeco.

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Fundraise plans

Yes

→Eldeco Housing & Industries Limited plans an investment of about ₹200 crores primarily for new projects including "Eldeco Trinity."
→To support this, the Company plans to raise approximately ₹100 crores of debt in the current fiscal year.
→The debt is aimed not only for ongoing projects but also for fresh land acquisition and business development.
→The Company currently holds around ₹140 crores cash on the books but is still opting for debt to maintain a balanced capital structure and support growth.
→There is no mention of any imminent equity fundraising; focus is on leveraging debt for expansion.
→The Company expects more details on these financing activities in upcoming calls.

Order book

Yes

→Eldeco is actively working on land assembly, targeting at least 50 acres of new land parcels in the pipeline, expected to complete assembly in the next quarter or two.
→Approvals for these lands typically take 6-9 months post-assembly before projects hit the market.
→Term sheets for new projects are out, with more concrete information expected in upcoming calls.
→The Company plans to launch multiple projects including Imperia Phase 2 and 3, Latitude 27, and Trinity (a 3-acre parcel), indicating a growing order book.
→Booking numbers are expected to more than double this year compared to last year's 100-120 crores, reflecting strong demand and expanding order pipeline.
→No specific total order book value was disclosed yet, but visibility on major upcoming projects suggests a healthy and growing order backlog.

Capex plans

Yes

→Eldeco plans an investment of about Rs. 200 crores, which includes the new high-rise luxury project "Eldeco Trinity" (3 acres in a prime Lucknow location with approvals underway).
→To fund this, the company intends to raise around Rs. 100 crores in debt during the year.
→Additional land acquisition is targeted, with about 50 acres of new land parcels planned for assembly in the next one to two quarters to fuel business development and launches.
→The debt raised will not only fund existing projects but will also be used opportunistically for fresh land aggregation.
→Prepayment options are available on the loans, allowing flexibility in financial management as projects progress.
→The company aims to leverage this capital for launching multiple projects including Imperia Phase 2 & 3 and Trinity, boosting booking values more than twofold this fiscal year.

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