Prime Urban Development India Limited has a varied portfolio with its main focus on Real Estate Development and export of cotton yarns. The company is positive on the real estate industry, especially for affordable housing, on back of structural reforms, favorable interest rate regime and getting organized.
Replying to Yash Ved of NewsBarons, Manoj Kumar Patodia – Vice Chairman and Managing Director, Prime Urban Development India Limited stated “We believe the sector will witness more end buyer related activity positively impacting all stakeholders in the industry.”
NB: What impact have you seen in respect of GST and RERA act?
Manoj: The impact has been limited so far, however, its sets the tone for the industry to move towards an organized manner of functioning. These regulations will bring in transparency and are likely to get back end-users which is the need of the hour.
NB: What is your mix in terms of residential and commercial?
Manoj: Our projects are largely residential with a very small portion of commercial which is built to serve the residents.
NB: Brief us about your expansion plans?
Manoj: We are in an investment phase. We continue to scan for land parcels in Tamil Nadu on basis of a JV or JDA model.
NB: Brief us about your Textile segment?
Manoj: We have a textile trading business which is our legacy business. We export yarn/fabric to international customers. Our current focus is expansion of the Realty business.
NB: Give us the overview on the financials?
Manoj: For March 2017, we clocked revenues of INR 57crore with EBITDA of INR 12.20 crore and PAT of INR 9.71 crore. The revenues were boosted by sale of stock in our Tirupur project.
In H1FY18, we were under project execution mode, Real estate division, for which sales will commence in 2018. The revenues were largely from Textiles segment. We clocked revenues of approximately INR. 29 crore with PAT of INR 433 lakh.