The realty division may still be in a slump, but big developers are positive on demand for residential property in the nation.
They are going ahead with plans to roll out various projects in the existing financial year as they expect sales to be better than the last year.
While Godrej Properties proposes to introduce around 15 projects during this fiscal, Oberoi Realty anticipates developing almost 33 lakh sq ft.
The nation's biggest developer DLF is making plans to set up about 10-12 million sq ft during the same financial year.
They all expect that the repo rate cut of 50 bps by the central banking institution during April is expected to improve demand.
But, equity analysts chasing the section are not so confident.
Mr. Surojit Pal, an analyst at Elara Capital, stated, "While Oberoi Realty has enough cash, Godrej Properties has an asset light model and are mainly doing projects through joint development. DLF is in a tight position and the company is planning to reduce its high debt. At present, sales are low and going forward, I don't see any quick revival in the near future."
Mr. Pirojsha Godrej, managing director and chief executive officer, Godrej Properties, stated, "Last year, we had launched five projects but this year, we plan to launch around 15 projects in the existing 12 cities we are already present as we are bullish about the residential demand." Most of them are residential and will be funded through internal accruals and partly through debt. At present, the company has debt-equity ratio of 1.06."
Mr. Godrej stated that during January-March period, the firm's Earnings Before Interest Taxes Depreciation and Amortization (EBITDA) margins declined to 25.4% from 27.3% year-on-year.
The rate of labour, steel as well as cement increased, he said, adding that the increase in input cost is hurting firm's margins.
A senior representative from DLF stated that the firm proposes to build up around 10-12 million sq ft of space in the existing financial year.
Oberoi Realty is also gearing up to roll out about 33 lakh sq ft of proposed development space in 2012-13 as it eyes for a home for its surplus cash.
Vikas Oberoi, CMD of Oberoi Realty stated that the firm proposes to launch a project each in Mulund, Worli and the third stage of Oberoi Exquisite in Goregaon-east.
Presently, Oberoi Realty has no plans to lift up funds and would utilize its cash balance for building properties.