Mumbai-based Keystone Realtors Ltd., under its Rustomjee brand, is focusing on the mid-mass residential segment for FY25, with homes priced between INR 1 crore and INR 3 crore. Chairman Boman Irani stated that 75% of Rustomjee's supply will target mid-mass and aspirational buyers. Key launches include a Thane project with a revenue potential of INR 1,700 crore and a Kasara development worth INR 300 crore. Despite a drop in Q1 FY25 profit to INR 25.53 crore, pre-sales rose 22% year-on-year to INR 611 crore. The company remains focused on redevelopment projects in Mumbai and is cautiously considering expansion into Pune.
Mumbai based Keystone Realtors Ltd, plans to focus its FY25 residential launches on the mid-mass segment, with homes priced between INR 1 crore to INR 3 crore. Chairman and Managing Director Boman Irani revealed this strategy following the announcement of the company's Q1 FY25 financial results.
Irani highlighted that approximately 75% of Rustomjee's supply will target the mid-mass and aspirational segments, priced between INR 3 crore and INR 7 crore. This focus is evident in the current quarter's launches, including a group housing project in Thane and a plotted development in Kasara. The Thane project is expected to generate around INR 1,700 crore in revenue, while the Kasara development, featuring 88 acres in the first phase, holds a revenue potential of about INR 300 crore.
Despite reporting a consolidated net profit of INR 25.53 crore for the April-June quarter, down from INR 46.50 crore the previous year due to increased construction costs, Irani remains optimistic. The company reported collections of INR 485 crore for the quarter, slightly lower year-on-year and 28% lower than the previous quarter. However, pre-sales were a bright spot, rising 22% year-on-year to INR 611 crore.
Rustomjee launched two redevelopment projects during the quarter in Matunga and Versova, with a combined revenue potential of around INR 2,000 crore. The company has provided a guidance of INR 4,000 crore in business development for FY25, with INR 1,000 crore already achieved in the first quarter, and it maintains zero net debt.
Redevelopment projects will continue to be a major focus, particularly in the western suburbs, the island city, and a pipeline project in the eastern suburbs. The company is also eyeing state government tenders for redevelopment, especially under the Maharashtra Housing and Area Development Authority (MHADA).
While Rustomjee's projects are currently concentrated in the Mumbai metropolitan region, Irani mentioned that the company is open to exploring other markets, with Pune as a potential future target. However, any expansion beyond the Mumbai metropolitan region is unlikely to occur within the current financial year.
Overall, Rustomjee aims to balance premium segment sales with meeting the needs of mid-mass and aspirational buyers in the Mumbai metropolitan region, driving its growth strategy for FY25.
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