Keystone Realtors to Pump ₹900 Crore into Housing Projects this Fiscal, CMD Boman Irani Reveals Ambitious Plans

Keystone Realtors plans to significantly increase its investment in building residential projects this fiscal year, aiming to spend around ₹800-900 crore on construction. This move is part of the company’s strategy to boost its execution capabilities. Keystone Realtors, known for selling properties under the Rustomjee brand, is a major real estate developer, particularly in the Mumbai Metropolitan Region (MMR).

In an interview with PTI, Boman Irani, the company’s Chairman and Managing Director (CMD) and also the president of the real estate association CREDAI, mentioned that the company will invest heavily in construction and land purchases to expand its business this year.

“We plan to invest around ₹800-900 crore purely in construction this fiscal year. Last year, we invested about ₹400 crore,” Irani said.

Qualified Institutional Placement (QIP)

He added that the company has surplus liquidity of about ₹3,000 crore available for growth investments. “We raised ₹800 crore through Qualified Institutional Placement (QIP), along with our internal cash flow,” he explained.

Irani also noted that demand in the housing market remains strong. As a result, the company has set a target to increase its sales bookings by 32% this fiscal year, aiming for ₹3,000 crore. “We hope to exceed that number,” he added.

Pre-Sales

In the first quarter of this fiscal year, Keystone Realtors achieved pre-sales of ₹611 crore, a 22% increase from ₹502 crore in the same period last year. During the entire 2023-24 fiscal year, the company sold properties worth ₹2,266 crore.

However, earlier this month, Keystone Realtors reported a 45% drop in its consolidated net profit, which stood at ₹25.82 crore for the June quarter of this fiscal year, mainly due to higher expenses. The company had posted a net profit of ₹46.97 crore for the same period last year.

Total Income

Total income during the April-June period of this fiscal year increased to ₹437.20 crore, compared to ₹282.82 crore in the same period last year. Meanwhile, total expenses, including construction costs, rose to ₹398.16 crore from ₹216.54 crore.

In the June quarter, the company launched two new projects with an estimated gross development value (GDV) of ₹2,017 crore, as per its goal of launching two projects per quarter. Keystone Realtors also acquired another project in the first quarter, with an estimated GDV of ₹984 crore.

Keystone Realtors has completed 34 projects, has 15 ongoing projects, and 27 upcoming ones. So far, the company has delivered over 25 million square feet of construction area, with a pipeline of more than 43 million square feet currently under development.