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Signature Global to exceed FY24 pre-sale guidance of Rs 4,500 crore

Realty developer Signature Global expects to surpass its pre-sale guidance of Rs 4,500 crore this financial year buoyed by the launch of two new projects by March-end with total sales potential of Rs 8,500 crore, said Pradeep Kumar Aggarwal, chairman and wholetime director.

The Gurugram-focused company has also inked three joint development agreements (JDAs) with total sales potential of more than Rs 9,000 crore, which it plans to launch in the next 12-18 months, Aggarwal told ET. The company recorded Rs 3,100 crore pre-sales in the first nine months of FY24.

Signature Global has acquired a land parcel each in Sector 71 and Sector 37D, Gurugram, where it plans to launch projects by March-end.

“We will continue to expand in these three micromarkets of Gurgaon – Sector 71, Sector 37D and Sohna as we already have a sizeable presence here. The performance so far has been satisfactory and for the first time we have turned profitable. The kind of launches we have in the pipeline, the profitability will continue,” said Aggarwal.

Signature Global has signed three separate JDAs to develop a residential project at Sector 71, Gurugram spanning 21.38 acres with potential developable area of 3.22 million sq ft.

“Over the last few quarters, we are witnessing growing demand from the mid-housing segment, along with better realisations. As we embark on the journey post listing, we are working on improving the sales trajectory in the mid-housing segment that would help us in bettering our blended Ebitda margins,” Aggarwal said.The company aims to launch these projects within the next 12-24 months.Signature Global has a 19% market share in the affordable and mid-housing segment. Backed by equity investors like HDFC and IFC, Signature Global has delivered over 6 million sq ft so far. Itn has ongoing projects of 17.21 million sq ft and 21.29 million sq ft of saleable area in the pipeline.

The total portfolio currently comprises 60 projects, with nearly 28,000 units sold and about 21 forthcoming projects. It has unsold inventory of 30 mn sq. ft, comprising ongoing projects of 2.6 mn sq. ft with Rs2,300 crore gross development value (GDV) and forthcoming projects aggregating 27.4 mn sq. ft (Rs30,000 crore GDV).

Given the robust pipeline, the company expects to clock annual pre-sales of Rs 10,000 crore in the next two to three years, Aggarwal said.

The company expects to post a 26% compound annual growth rate (CAGR) in revenues over FY23-26 with embedded margins rising to 20% as it focuses more on higher-margin yielding mid-income projects, he added.

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