Jaypee Infratech targets revenue of Rs 4,000 crore in FY14

Jaypee Infratech , which has been reeling under huge debts, is aiming to raise its revenue to Rs 4, 000 crore in 2013-14 on the back of two three projects that company plans to launch in the next fiscal, Executive Chairman Manoj Gaur told CNBC TV18 in an interview.

The company hopes to clock revenue of Rs 3,300 crore in the current fiscal. One of Jaypee Group's most ambitious projects has been the construction of the 165 kilometre long six lane Yamuna Expressway connecting Noida with Agra. Besides getting nearly 4,000 acres from the Uttar Pradesh Government for building this expressway the company also got around 6,000 acres divided in five land parcels all for real estate development. All of this was hived off and listed as Jaypee Infratech in 2010.

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So, far Jaypee has launched one of these parcels, the one in Noida which goes by the name of Jaypee Wish Town. However there had been several delays in launching this project and the company had received lot of flak from consumers.

The company now plans to launch Wish Town project at Agra very soon. The company hopes to get an average realisation of Rs 3,800-4,000 per square feet for different products in this township project. The company is aiming a ticket size of about Rs 35 lakhs to Rs 55 lakhs.

The Jaypee group company is also developing a Sports City near Formula One race tracks near Noida. "We have been able to successfully launch Bougainvilleas, the farm houses which are in the range of about Rs 8-10 crore, then there are studio apartments about Rs 40 lakhs, then there are going to be very iconic apartments overseeing the F1 track, their ticket-size maybe about Rs1 crore," Gaur said. 

The company's current debt stand at Rs 6800 crore and its plans to bring it down to Rs 4800 crore by 2013-14 end. Through its several debt refinancing initiatives, Jaypee Infratech has now managed to get a longer moratorium and repayment cycle. The company's interest payment has come down to about 12.5 percent from a high of about 15.5 percent. "There is going to be net saving of three percent to Jaypee Infratech and entire debt has been refinanced to a 15 year instrument, partially 15-year and partially 18 years," Gaur said.

Catch the full interview transcript on next page.