Keystone Realtors reported a 45% drop in consolidated net profit for Q1 FY25, to INR 25.82 crore, due to increasing expenses, while total income increased to INR 437.20 crore. Despite the earnings dip, pre-sales increased by 22% year on year to INR 611 crore. The company launched two new projects with a combined gross development value (GDV) of INR 2,017 crore and purchased another with a GDV of INR 984 crore. Chairman Boman Irani highlighted the successful INR 800 crore equity issue via QIP to support growth objectives, emphasizing a solid project pipeline and strategic efforts for future expansion.
Keystone Realtors, which operates under the Rustomjee brand, reported a 45% reduction in combined net profit for the first quarter of FY25, totaling INR 25.82 crore, compared to INR 46.97 crore in the same period last year. The decrease in profit is due to increasing expenses, particularly development costs, which jumped to INR 398.16 crore from INR 216.54 crore. However, total income increased, hitting INR 437.20 crore from INR 282.82 crore the previous year.
Despite the profit reduction, the corporation demonstrated great operational success. Pre-sales for the quarter totaled INR 611 crore, representing a solid 22% year-on-year increase. Keystone Realtors Chairman and Managing Director, Boman Irani, announced that the business has launched two new projects with a gross development value (GDV) of INR 2,017 crore and bought another property with a forecasted GDV of INR 984 crore. These initiatives are consistent with the company's objective of introducing two projects per quarter.
Irani highlighted that the company's recent equity raise of INR 800 crore via a qualified institutional placement (QIP) would significantly strengthen its growth strategy, facilitating the acquisition of new projects and new launches. He stated that they had a promising pipeline of launches and their strategic foray into plotted development in Kasara. He felt that they were at an expression point to enter an era of high growth. He said they were composed for an exciting journey ahead, generating value for their stakeholders and enriching the urban living experience.
Keystone Realtors has a large project portfolio, including 34 finished projects, 15 active projects, and 27 upcoming projects. To date, the company has delivered approximately 25 million square feet of construction area and is now working on another 43 million square feet. The company's Q1FY25 financial highlights include a total revenue of INR 422 crore, an EBITDA of INR 58 crore, and a profit after tax (PAT) of INR 26 crore. During this quarter, the company added one project with an estimated GDV of INR 984 crore and launched two projects with a GDV of INR 2,017 crore. Operationally, the company reported collections of INR 485 crore and operating cash flows of INR 108 crore for the quarter. Irani expressed gratitude to the stakeholders for their continued support, emphasizing that the growth in pre-sales is a testament to the company's strategic vision and the unshakable trust of its customers.
The positive outlook for the company is underpinned by its successful project launches and acquisitions. Irani remarked that after a robust performance in FY24, the Rustomjee Group had continued its impressive performance in Q1FY25. The group had recorded pre-sales of INR 611 crore, reflecting a robust 22% year-on-year growth. Irani stated that this growth was a testament to the group's strategic vision and the unshakable trust of its customers. In the current quarter, the company launched two new projects with an estimated Gross Development Value (GDV) of INR 2,017 crores, which was perfectly aligned with their guidance of launching two projects per quarter. Additionally, the company added one more project with an estimated GDV of INR 984 crores, further strengthening their already robust project portfolio across the Mumbai Metropolitan Region (MMR). Furthermore, the successful raise of Rs. 800 crores in equity through a Qualified Institutional Placement (QIP) will play a pivotal role in driving the company's growth strategy, facilitating the acquisition of new projects and new launches, thereby accelerating growth in pre-sales.
Despite a 45% reduction in net profit due to rising expenses, Keystone Realtors demonstrated strong operational performance, with a 22% increase in pre-sales. The company's strategic project launches, acquisitions, and successful equity raise position it for continued growth and value creation for stakeholders.
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