Keystone Realtors Limited , a prominent player in the real estate sector, has announced its unaudited financial results for the quarter and half-year ended September 30. The company's Board of Directors approved both consolidated and standalone financial results at their meeting held on November 12.

Pre-Sales and Project Launches

Keystone Realtors reported pre-sales of INR 772 crores in Q2, marking a 10% growth over the same quarter in the previous year. For the first half of the fiscal year, pre-sales reached INR 1,839 crores, representing a 40% growth over the same period last year. The company launched one project with a Gross Development Value (GDV) of INR 949 crores in Q2, bringing total launches for the first half to four projects worth INR 4,916 crores, achieving 70% of full-year guidance.

Financial Performance

The company's financial performance for Q2 shows a decline in revenue compared to the previous quarter. Here's a breakdown of the key financial metrics:

Keystone Realtors experienced a decrease in revenue, dropping from ₹642.20 crore in Q1 to ₹499.00 crore in Q2, representing a 22.30% decline. Net profit also saw a significant reduction, falling by 85.05% to ₹10.00 crore from ₹66.90 crore in the previous quarter.

Project Additions and Debt Position

The company added three new projects in the first half with a combined GDV of INR 7,727 crores, surpassing the full-year guidance of INR 6,000 crores. Gross debt stands at INR 588 crores with a debt-to-equity ratio of 0.21, while net debt is nil. India Ratings assigned a credit rating of A+ with a positive outlook.

Non-Convertible Debentures (NCDs) Issuance

During the quarter, Keystone Realtors allotted 33,500 fully paid-up, senior, secured, redeemable, listed, rated non-convertible debentures (NCDs). These NCDs have a face value of ₹100,000 each, amounting to a total of ₹335.00 crore. The company has listed these NCDs on the BSE Limited.

The NCDs are secured against:

1. First ranking exclusive charge on unsold units
2. Outstanding cash flows from sold units
3. Related rights

Operational Overview

Keystone Realtors operates exclusively in the real estate and allied activities business. The company's financial results encompass operations from:

• 56 subsidiaries
• 2 associates
• 5 joint ventures
• 2 jointly controlled entities

Audit Review

PriceWaterhouseCoopers Chartered Accountants LLP conducted a limited review of the unaudited financial results and issued a report with an unmodified opinion.

Market Implications

While the company experienced a decline in revenue and profitability in Q2, the growth in pre-sales and successful project launches indicate positive momentum in the company's core business. The issuance of NCDs and the strong credit rating suggest that Keystone Realtors is taking steps to secure funding, which could be used for ongoing projects or new developments in the real estate sector.

Keystone Realtors Limited , known for its Rustomjee brand, has taken a significant step in enhancing employee engagement by allotting equity shares under its Employee Stock Option Plan (ESOP). This move underscores the company's commitment to aligning employee interests with corporate growth.

ESOP Allotment Details

The company's Stakeholders Relationship Committee has approved the allotment of new equity shares as part of the Rustomjee Employee Stock Option Plan 2022. Here are the key details of the allotment:

Implications of the Allotment

This equity share allotment carries several implications for both the company and its employees:

1. Employee Ownership: The ESOP allotment increases employee stake in the company, potentially boosting motivation and alignment with company goals.

2. Talent Retention: By offering equity ownership, Keystone Realtors aims to retain valuable talent in the competitive real estate sector.

3. Long-term Commitment: ESOPs typically come with vesting periods, encouraging employees to contribute to the company's long-term success.

4. Market Perception: Such initiatives often signal positive company culture and employee-centric policies to the market.

Corporate Governance

The allotment process adhered to proper corporate governance procedures:

• The Stakeholders Relationship Committee approved the allotment, ensuring oversight and compliance.
• The company promptly informed the stock exchanges about the allotment, maintaining transparency with investors and regulatory bodies.

Conclusion

Keystone Realtors' decision to allot shares under its ESOP scheme reflects a strategic approach to human resource management in the real estate sector. This move may contribute to fostering a sense of ownership among employees and potentially drive enhanced performance and loyalty.

Investors and market watchers may view this development as a positive indicator of the company's internal policies and its focus on aligning employee interests with overall corporate objectives.