Overall turning positive on recovering demand
• Volumes to remain stable to positive: Given the growth visibility in IT sector & general buoyancy in the domestic
economy the end sales of real estate is expected to increase. Wage hikes across sectors and particularly in the IT
Industry are beginning to have an effect on built up residential sales. The commercial & office space segment of the
market still continues to face oversupply though it will take 3-4 quarters more for this positive trend to accentuate. For
2QFY11 the increase in volumes in expected to be in the range of 3 to 6% on a QoQ basis.
• EBIDTA margins to vary: Given that prices increases have been varied across different geographic regions with markets
like Mumbai, South India recovering in price terms to 5-15% discount to there 2007 peak and NCR region still seeing only
a muted price recovery. We believe that EBIDTA margins will vary sharply across players. Also, cost pressures will now
begin to show up in margins.
• Bottom-line performance and outlook mildly positive: On a QoQ basis we expect that net profit will show single digits
growth across the sector. Overall the recovery in prices and mildly positive increase in sales will keep the sector outlook
positive.
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