Signatureglobal , a leading real estate developer in the Delhi-NCR region, has reported a stellar performance for the first quarter, with net profit soaring 386% year-on-year and revenue more than doubling. The company has also set an ambitious target to achieve ₹10,000 crore in sales by FY27.

Financial Highlights

The company's revenue from operations surged to ₹870.00 crore in Q1, marking a significant 118% increase from ₹400.00 crore in the same quarter last year. This substantial growth was primarily attributed to higher project completions during the period.

Profit after tax (PAT) witnessed an impressive jump of 386%, reaching ₹34.00 crore compared to ₹7.00 crore in the previous year's Q1. This remarkable growth in profitability was driven by the increased revenue recognition.

Operational Performance

Signatureglobal achieved robust pre-sales of ₹2,640.00 crore in Q1, compared to ₹3,120.00 crore in the same quarter of the previous year. The company's average sales realization improved significantly to ₹16,296 per square foot, up from ₹12,457 per square foot in the previous fiscal year. This improvement was largely driven by the launch of 'Cloverdale SPR', a premium residential project located on Southern Peripheral Road in Gurugram.

Collections for the quarter stood at ₹930.00 crore, compared to ₹1,210.00 crore in the previous year's Q1. The company's net debt remained stable at ₹890.00 crore.

Profitability Metrics

In terms of profitability ratios, Signatureglobal reported an adjusted gross profit margin of 27% in Q1, slightly lower than the 28% recorded in the same quarter of the previous year. The adjusted EBITDA margin stood at 12%, compared to 13% in the previous year.

Strategic Developments and Future Plans

As part of its long-term growth strategy, Signatureglobal acquired 9.96 acres of land in its key micro-market of Sohna during Q1. This land parcel offers a development potential of approximately 0.53 million square feet.

The company is transitioning towards premium housing and strategically acquiring land while increasing construction activities. Signatureglobal aims to achieve a 25% compound annual growth rate (CAGR) as it capitalizes on the affordable housing surge in the NCR region.

Management Commentary

Pradeep Kumar Aggarwal, Chairman and Whole-Time Director of Signatureglobal, commented on the company's performance: "Building on the strong momentum of the previous fiscal year, we delivered a robust performance in the first quarter, with our operational revenue doubling year-on-year. This growth reflects our continued focus on customer satisfaction and the timely delivery of quality homes. Our consistent financial and operational progress has further strengthened stakeholder confidence."

He added, "The successful launch of our premium project Cloverdale SPR in Sector 71, located on Southern Peripheral Road, contributed meaningfully to this quarter's performance. With several new project launches planned in the coming quarters, we are well-positioned to sustain this growth trajectory and further strengthen our market presence."

Company Overview

Signatureglobal has established itself as a prominent player in the Delhi-NCR real estate market, with a focus on mid and premium housing categories. The company has cumulatively delivered 15.70 million square feet of real estate development as of Q1.

With a robust project pipeline comprising 17.10 million square feet of recently launched projects, 24.50 million square feet of forthcoming developments, and 9.20 million square feet of ongoing construction, Signatureglobal is poised for continued growth in the coming years.

The company's strong market position is evident from its 13% market share in the National Capital Region (NCR) and 20% share in Gurugram within the price range of ₹2.00 crore to ₹5.00 crore.

As Signatureglobal continues to execute its growth strategy and capitalize on the strong demand in the Delhi-NCR real estate market, investors and industry observers will be keenly watching its performance in the upcoming quarters and its progress towards the ambitious ₹10,000 crore sales target by FY27.

Signatureglobal (India) Limited, a prominent player in the Indian real estate sector, has taken a significant step to enhance its corporate governance structure. The company recently announced the approval of an amendment to its Articles of Association, allowing for the appointment of Nominee Directors upon request from Debenture Trustees.

Key Amendment Details

The alteration, approved through a special resolution passed by postal ballot, introduces Article 98A to the company's Articles of Association. This new provision empowers the Board of Directors to appoint a Nominee Director when requested by Debenture Trustees, aligning with the Securities and Exchange Board of India (Debenture Trustees) Regulations, 1993.

Voting Results

The resolution to alter the Articles of Association received overwhelming support from shareholders. According to the scrutinizer's report:

This strong endorsement demonstrates shareholders' confidence in the company's decision to enhance its governance framework.

Implications for Corporate Governance

The inclusion of Article 98A is a strategic move that could potentially strengthen Signatureglobal's relationship with its debenture holders. By allowing for the appointment of Nominee Directors, the company is providing an additional layer of oversight and representation for debenture trustees, which may enhance transparency and trust in its financial operations.

Additional Resolutions Passed

In addition to the Articles of Association amendment, Signatureglobal's shareholders also approved three other special resolutions through the same postal ballot process:

1. An increase in the company's borrowing limit under Section 180(1)(c) of the Companies Act, 2013
2. Approval for the creation of charges on the company's movable and immovable properties in respect of borrowings
3. Authorization to raise funds through the issuance of Secured Listed Redeemable Non-Convertible Debentures (NCDs)

These resolutions suggest that Signatureglobal is positioning itself for potential expansion or refinancing activities in the future.

Conclusion

The amendment to Signatureglobal's Articles of Association, along with the other approved resolutions, indicates the company's commitment to robust corporate governance and financial flexibility. As the real estate sector continues to evolve, such measures may help Signatureglobal maintain investor confidence and adapt to changing market conditions.

Investors and stakeholders can access the updated Articles of Association on the company's official website at www.signatureglobal.in .