No stress in demand in Bangalore, Chennai or Hyderabad

Pradyumna Krishnakumar, Executive Director, Brigade Group, says they are dynamically pricing projects. “We keep looking at demand literally on a daily, weekly basis to price our products. We need to be careful about costs. While we are selling very fast, we need to be very mindful of the cost pressures that are there. Therefore, the pricing is something that plays a key part and it is something that we focus on on a very minute detail perspective. I want to first talk about your new JDA in Chennai. You said that the revenue potential of the residential project alone is about Rs 2,000 odd crore. But when do you think you will be able to deliver this project and when can we start the revenue recognition for this particular project to trickle in? Pradyumna Krishnakumar: We have signed a JDA yesterday for a property in Chennai. It is about six to seven kilometres from the city centre. It is a very well-located development. It is a Rs 2,000-crore project. From a timeline perspective, it should take us about four to five years from now to complete the project. As far as revenue recognition goes, the way Ind AS recognises revenue for real estate is upon project completion and transfer of the property to the end customer. Therefore, we will see the revenue recognition for this project come at the very end, so about four-and-a-half to five years from now.