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The scrip of HDIL, the company which mired in controversies such as promoters pledging most of their shares, stock crash last year, bounced back over 50% since the March this year. Raghavendra Kamath talks to Sarang Wadhawan, Vice-Chairman and Managing Director, about the company's plans and strategy.
You talked about four launches in Fy 2015. What is the status of new launches?
We re-launched two projects and launching a huge affordable project within the next one month. We are planning a slew of new launches over the next one year.
What is the status of your arbitration with Mumbai International Airport (MIAL)?
It is still under under arbitration. Both the parties have put in their claims.
HDIL planned to cut its debt by Rs 600-Rs 800 crore by the end of this financial year. What is the status of that?
We have reduced certain amount of debt. We want to cut debt by 20-25% compared to last financial year. We are on track.
With the new government coming in the state, what are the changes you expect in the real estate segment in the city and the state?
The new government at the centre has shown that they are inclined towards reforms and growth. If the same is applied to the state, nothing will stop the real estate sector from revival.
What is your focus for the next one year?
The focus for the next one year is to launch affordable projects, execution of current projects and get sales into the system.
How is the real estate market now?
Mumbai has intense demand for homes. People are buying homes in suburbs. They are saving to buy homes for the last four years. We believe that money to come into the markets now. Government says we should reduce prices. If we reduce prices, we will incur losses because everyday we face new taxes. People say there is a high inventory lying with developers. But it is under construction and not ready inventory.
What is you outlook for next year?
We believe pent up demand in 2011, 2012, 2013 will come into the market in 2015.
