Signature Global's sales soar 38% on high demand for affordable housing

Signature Global, a real estate company, reported a 38 per cent growth, with sales bookings totalling Rs 1,861.39 crore. This growth can be attributed to the strong demand for their affordable and mid-income residential projects. In comparison, their sales bookings in the same period last year were Rs 1,353 crore.

Notably, Signature Global recently launched its Initial Public Offering (IPO) with the aim of raising Rs 730 crore. The IPO was well-received, being subscribed 11.88 times. It consisted of a fresh issue of shares worth Rs 603 crore and an offer-for-sale (OFS) of Rs 127 crore.

Sales volume growth

In terms of sales volume, Signature Global's sales bookings increased from 1.82 million square feet in the April-September period of the previous year to 1.90 million square feet in the same period this year.

During the first six months of this fiscal year, Signature Global collected Rs 1,327.45 crore, a substantial increase from the Rs 804.89 crore collected in the corresponding period of the previous fiscal year.

Pradeep Kumar Aggarwal, Chairperson and Whole-Time Director of Signature Global, expressed satisfaction with the company's performance, noting a 37 per cent growth in pre-sales and a sales realisation of Rs 9,800 per square foot in H1FY24. This performance is expected to have a positive impact on the financial results of the second quarter.

Profit turns negative

However, Signature Global reported a consolidated net loss of Rs 7.18 crore in the first quarter of this fiscal year, primarily due to increased expenses, whereas they had a net profit of Rs 32.78 crore in the same period last year. Total income also decreased to Rs 178.9 crore in April-June 2023-24, down from Rs 559.01 crore in the corresponding period of the previous year.

Project portfolio

Signature Global, with backing from prominent equity investors such as HDFC and IFC, has delivered over 6 million square feet of projects and has ongoing projects covering 17.21 million square feet. Additionally, they have a robust upcoming pipeline with 21.29 million square feet of saleable area. Their portfolio currently includes 60 projects, with nearly 28,000 units sold and about 21 forthcoming projects.