Eldeco Housing & Industries LtdQ3 FY23
Eldeco Housing & Industries Ltd Q3 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 4
Fundraise
Yes
Order
Yes
Capex
Yes
3 of 5 growth signals are positive.
Full analysisRevenue guidance
Category 2- →Eldeco expects to more than double sales bookings in the current year compared to last year (from ~100 crores in last year to approximately 200-220 crores).
- →Significant contribution to sales will come from Imperia Phase-2 and Eldeco Trinity, accounting for around 50-60% of bookings.
- →New projects like Latitude 27 have shown strong booking performance, with around 50% units already allotted and more pre-commitments expected to convert in H2 FY24.
- →Revenue recognition and reported revenues reflect projects launched 3-4 years ago; upcoming deliveries of Twin Tower and Imperia Phase-1 expected to positively impact reported revenues in Q4 FY24 or Q1 FY25.
- →Larger project deliveries (Imperia 2, Trinity, Latitude) are expected over the next 3-5 years, supporting top-line growth and revenue recognition.
- →EBITDA margins are expected to moderate to 25-35% (from historical 35-40%) due to higher land costs on new projects.
Margin guidance
Category 4- →Eldeco expects more than doubling sales bookings in the current year compared to last year (approx. doubling from around ₹100 crore last year).
- →New project launches such as Imperia Phase-2 and Eldeco Trinity (total inventory ~11 lakh sq ft) are expected to contribute significantly over the next 3-4 years.
- →Revenue recognition will gradually improve as Twin Tower and Imperia Phase-1 complete by Q4 FY24 or Q1 FY25.
- →EBITDA margins for new projects are expected to be lower than historical highs of 35-40%, likely in the range of 25-35%.
- →Plotted horizontal development projects like Imperia Phase-2 may yield higher margins than group housing projects.
- →Reported revenues may remain muted in FY24 and FY25 due to project delivery timelines but expected to grow as newer projects are delivered starting FY25.
- →Collections and bookings from new launches (e.g., Latitude 27) indicate robust operating performance and growth potential in the medium term.
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Fundraise plans
Yes- →Eldeco Housing & Industries Limited secured substantial funding of around Rs. 160 crores in Q2 FY24 from two lenders, Piramal and ICICI Bank.
- →Out of this Rs. 160 crores, around Rs. 80 crores has already been allocated and deployed to support development initiatives.
- →The company currently has enough dry powder (internal cash/funds) for planned land acquisitions in H2 FY24 and does not require immediate fresh debt.
- →However, the company remains open to taking more debt if attractive land acquisition opportunities arise, as acquisition is opportunistic in nature.
- →No specific mention of any planned equity fundraising was made in the call.
Order book
Yes- →Eldeco aims to more than double its sales bookings this year compared to last year (from around ₹100 crore to roughly ₹200-220 crore).
- →Approximately 50-60% of this booking value is expected from Imperia Phase-2 and Eldeco Trinity projects.
- →The inventory being released includes 11 lakh sq.ft from Imperia Phase-2 (6.3 lakh sq.ft) and Trinity.
- →Recent project launch Latitude 27 has already seen around 50% sales allotment (~40-41 units).
- →Future deliveries from Twin Tower and Imperia Phase-1 are expected in Q4 FY24 or Q1 FY25, contributing positively to revenue.
- →Land acquisitions are ongoing with about 20 acres purchased recently, of which around 3.2-3.5 acres are for Eldeco Trinity.
- →The company also has subsidiaries acquiring land in other cities like Gurugram, Sonipat, Ludhiana, but primary focus remains Lucknow.
Capex plans
Yes- →Eldeco Housing & Industries Limited has acquired approximately 20.6 acres of land in H1 FY24 as part of ongoing land aggregation, with plans to continue expanding the land portfolio in coming months.
- →The Company has secured substantial funding of around ₹160 crores from Piramal and ICICI Bank in Q2 FY24, with ₹80 crores already deployed to support development initiatives.
- →Land acquisition is ongoing, with plans to acquire more land parcels in H2 FY24.
- →The Company remains open to strategic tie-ups and partnership deals for land acquisition and development, provided the opportunities meet their criteria on location, IRR, approval and aggregation risks.
- →The funding and capital raised will be utilized to support new project launches like Imperia Phase-2, Eldeco Trinity, and Latitude 27 in Lucknow.
- →The Company has headroom in its balance sheet and is open to taking additional debt if required for opportunistic land acquisitions.
How does Eldeco Housing & Industries Ltd rank vs peers in Realty?
Pro feature1Eldeco Housing & Industries Ltd
Rev 2Mar 4
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