Eldeco Housing & Industries , a prominent player in the real estate sector, has reported a remarkable surge in its operational performance for the second quarter. The company's booking value skyrocketed by 316% year-on-year, reaching ₹103 crore, marking a significant milestone in its growth trajectory.

Strong Operational Performance

The company witnessed substantial growth across key metrics:

• Booking Value: Increased by 316% year-on-year to ₹103 crore
• Area Booked: Grew by 193% to 1,56,335 square feet
• Average Realization: Achieved ₹6,500 per square foot
• Area Delivered: 61,000 square feet, up from 38,000 square feet in the same quarter of the previous year

The impressive growth in booking value and area booked was primarily driven by the company's luxury project, Eldeco Trinity, showcasing strong demand for high-end residential properties.

Financial Highlights

Eldeco Housing reported robust financial performance for the quarter:

Net Profit stood at ₹4.50 crore, compared to ₹6.40 crore in the previous year.

Strategic Land Acquisition and Future Projects

The company has made significant strides in expanding its land bank:

• Acquired an additional 3.84 acres of land
• Total land aggregation now stands at 63 acres for township projects
• Estimated revenue potential exceeding ₹600 crore from these land parcels

Management has outlined plans to apply for approvals on 45 acres and launch new projects early next year, indicating a robust pipeline for future growth.

Focus on Lucknow Market

Eldeco Housing continues to maintain a strong focus on the Lucknow real estate market:

• Current unsold inventory: 10 lakh square feet
• Projects under approval: 6.5 lakh square feet

This strategic concentration in Lucknow demonstrates the company's commitment to capitalizing on the city's growing real estate demand.

Outlook

With a substantial increase in booking value and area booked, coupled with strategic land acquisitions, Eldeco Housing & Industries appears well-positioned for continued growth. The company's focus on luxury projects like Eldeco Trinity and its strong presence in the Lucknow market are likely to be key drivers of its performance in the coming quarters.

Eldeco Housing & Industries , a prominent real estate developer, has reported a remarkable surge in its operational performance for the first quarter. The company's booking value skyrocketed to ₹221.00 crore, marking an impressive 274% year-on-year growth. This substantial increase in bookings underscores the strong market response to Eldeco's recent project launches and its continued execution strength across ongoing developments.

Key Highlights

• Booking Value: Reached ₹221.00 crore, up 274% year-on-year
• Collections: Improved to ₹78.00 crore, representing a 41% YoY increase
• Deliveries: Handed over 101 homes, totaling 85,000 sq ft
• Construction Expenditure: Rose to ₹39.30 crore, up 10% YoY

Project Milestones and Launches

Eldeco Housing achieved significant milestones with the successful launches of two key projects:

1. Eldeco Hanging Gardens: Launched after securing RERA registration. The project saw an overwhelming response, with nearly 84% of the inventory sold within a week of launch.

2. Eldeco Skywalk: Launched following RERA registration. The project continues to experience strong sales momentum.

Upcoming Flagship Project

The company is gearing up to launch its ambitious flagship integrated township, Eldeco Solano Garden, on New Jail Road. This expansive 50-acre project will offer a mix of plots, villas, and multi-storied apartments. With a gross development value exceeding ₹1,000.00 crore, Eldeco Solano Garden is poised to become the company's cornerstone project for the coming years.

Financial Performance and Outlook

Despite the strong operational performance, Eldeco Housing reported a decline in EBITDA margin to 17.6% for the quarter. The company attributed this to revenue recognition from low-margin affordable housing units and upfront marketing costs associated with new launches. However, management expects EBITDA margins to revert to the 30-40% range in the coming quarters.

Pankaj Bajaj, Chairman and Managing Director of Eldeco Housing, commented on the results: "We have commenced with strong sales performance, underscoring positive market response to our new launches and continued execution strength across projects. With the successful launches of Eldeco Hanging Gardens and Skywalk, and the upcoming launch of Eldeco Solano Garden, we are well-positioned for accelerated growth and improved financial performance."

Future Prospects

Eldeco Housing remains optimistic about its future, backed by a strong launch pipeline, robust customer demand, and healthy execution progress. The company anticipates accelerated growth as recent bookings translate into completions.

Key points for the future include:

• Expected increase in construction spend from ₹30.00 crore to ₹50.00-60.00 crore per quarter by year-end
• Launch of the first phase of Eldeco Solano Garden, expected to generate ₹300.00-400.00 crore in gross development value
• Continued focus on the Lucknow market, with potential expansion into other cities like Gorakhpur

As Eldeco Housing & Industries continues to capitalize on the growing demand in the real estate sector, investors and stakeholders will be keenly watching the company's ability to maintain its sales momentum and improve profitability in the coming quarters.