Keystone Realtors, a prominent player in India’s real estate sector, is eyeing an ambitious 32% growth in its sale bookings for the current fiscal year, aiming to reach Rs 3,000 crore. This strategic target reflects strong market demand and the company’s robust investment strategy, according to Chairman and Managing Director.
The company, operating under the Rustomjee brand, has firmly established itself in the Mumbai Metropolitan Region (MMR) as a leading real estate developer. In an exclusive interview, Irani, who also serves as the president of the Confederation of Real Estate Developers’ Associations of India (CREDAI), expressed confidence in surpassing the sales target, bolstered by a substantial cash reserve and recent fund-raising efforts.
Irani highlighted that Keystone Realtors has a financial cushion of approximately Rs 3,000 crore for growth investments, including Rs 800 crore raised through a Qualified Institutional Placement (QIP) and additional internal cash flow. “Our goal is to achieve Rs 3,000 crore in pre-sales this fiscal year, and we are optimistic about exceeding this number,” Irani stated.
The company’s performance in the first quarter of this fiscal year has been promising, with pre-sales reaching Rs 611 crore—a 22% increase from Rs 502 crore in the corresponding period last year. Keystone Realtors reported total sales of Rs 2,266 crore for the entire fiscal year 2023-24.
Regarding land acquisition, Irani indicated that the company plans to invest in several land parcels projected to generate revenue of up to Rs 4,000 crore. The company added projects worth Rs 1,000 crore during the June quarter, with a strong pipeline of land deals expected to continue this trend.
In the redevelopment segment, Keystone Realtors has solidified its position as a preferred developer for housing societies in the Mumbai region. Despite a 45% decline in consolidated net profit to Rs 25.82 crore for the June 2024 quarter—down from Rs 46.97 crore in the previous year—total income surged to Rs 437.20 crore from Rs 282.82 crore. Increased expenses, including construction costs, contributed to the profit dip.
The company launched two new projects in the June quarter, with an estimated Gross Development Value (GDV) of Rs 2,017 crore, adhering to its target of introducing two projects per quarter. Additionally, Keystone acquired a project with a GDV of Rs 984 crore in the first quarter.
The recent successful equity raise of Rs 800 crore through QIP is expected to be instrumental in Keystone Realtors’ growth strategy, facilitating further project acquisitions and new launches. With a portfolio that includes 34 completed projects, 15 ongoing, and 27 forthcoming, Keystone has delivered over 25 million square feet of construction area, with an additional 43 million square feet in the pipeline. This extensive portfolio underscores the company’s commitment to scaling its operations and meeting market demand head-on.
