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Ajmera Realty & Infra India Limited — Q2 FY25 earnings call

Call held 28 Oct 2024

Management summary

Ajmera Realty reported a strong Q2 and H1 FY25, driven by robust sales and collections across its projects. The company achieved significant year-on-year growth in revenue, EBITDA, and PAT, while maintaining stable debt levels and improving its debt-equity ratio. Management highlighted a substantial future launch pipeline and strategic partnerships to fund upcoming commercial developments, reinforcing a positive outlook for sustained growth.

Highlights

Q2 FY25 Sales Value: ₹254 crores.
Q2 FY25 Total Revenue: ₹204 crores, up 38% Y-o-Y.
Q2 FY25 PAT: ₹36 crores, up 58% Y-o-Y.
H1 FY25 Sales Value: ₹560 crores, an 18% Y-o-Y growth.
H1 FY25 Total Revenue: ₹400 crores, a 51% Y-o-Y increase.
H1 FY25 EBITDA: ₹131 crores, up 67% Y-o-Y, with a 33% margin.
Net Debt: Stable at ₹793 crores, with an improved Debt-Equity Ratio of 0.85:1.
Future Launch Pipeline: Potential GDV of +₹4200 crores from 17 lakh sq ft.

Key financials

3 periods

Headline

Net Debt
₹793 Cr
Debt-Equity Ratio
0.85
Weighted Average Cost of Debt
12.2%
Revenue Visibility (OC & ongoing)
₹1,780 Cr
Total Revenue Visibility
₹6,050 Cr
Estimated Net Cash Flow (OC & ongoing)
₹760 Cr

Q2

Sales Value
₹254 Cr
Sales Area
1,14,000 sq ft
Collections
₹133 Cr
YoY +20%
Revenue
₹204 Cr
YoY +38%
EBITDA
₹65 Cr
YoY +62%
PAT
₹36 Cr
YoY +58%

H1

Sales Value
₹560 Cr
YoY +18%
Sales Area
2,44,000 sq ft
Collections
₹298 Cr
YoY +34%
Revenue
₹400 Cr
YoY +51%
EBITDA
₹131 Cr
YoY +67%
EBITDA Margin
33%
PAT
₹69 Cr
YoY +55%
PAT Margin
17%

What they filed

Q1 FY27: revenue up 22.9%, net profit up 15.4% against the same quarter last year.

₹ Cr · quarterly

Line item	Q2 FY25	Q3 FY25	Q4 FY25	Q1 FY26	Q2 FY26	Q3 FY26	Q4 FY26	Q1 FY27
Revenue	200	193	151	258	219 +10%	182 −6%	431 +185%	317 +23%
Expenses	140	130	108	180	161	127	324	226
EBITDA	60	63	43	78	58 −3%	55 −13%	107 +149%	91 +17%
Margin	30%	32%	29%	30%	26%	30%	25%	29%
Other income	4	6	2	1	2	2	3	3
Interest	18	24	12	21	17	14	22	30
Depreciation	1	1	1	1	1	1	1	2
Profit before tax	47	45	33	57	43 −9%	42 −7%	87 +164%	62 +9%
Tax rate	22%	26%	27%	31%	27%	33%	33%	28%
Net profit	36	33	24	39	31 −14%	28 −15%	59 +146%	45 +15%
EPS	1.95	1.72	1.28	1.95	1.54	1.30	2.83	2.19

How to read this

₹ crore, as filed. The percentage beside a figure is the change against the same quarter a year earlier — never the quarter before, which would make every seasonal business look like it collapses and booms each year.

Guidance & targets

Sales

Sales Value Sales · H1 FY25 · High confidence 560 crores

I am delighted to inform you that we have achieved a 560 crores of sales during the half year of FY25

— Dhaval Ajmera, Director

Launch Pipeline

Gross Development Value (GDV) Launch Pipeline · next 3-3.5 years · High confidence +4200 crores

We have exciting year ahead with the potential launches of worth 17 lakh square feet, with a gross development of +4200 crores.

— Dhaval Ajmera, Director
Saleable Area Launch Pipeline · next 3-3.5 years · High confidence 17 lakh square feet

— Dhaval Ajmera, Director
GDV Execution Timeline Launch Pipeline · next 3-3.5 years · High confidence 3-3.5 years

In our estimate given the give and take, it is three and a half up to three years, which we are targeting for the entire portfolio, and yes, in that particular time we estimate to consume the entire project cash flows.

— Nitin Bavisi, Chief Financial Officer

Debt

Debt Reduction Debt · near term · High confidence 225 crores (portion)

we have successfully done a preferential allotment of equity shares amounting to 225 crores to some marquee strategic investors and plan to utilize these proceeds, which have been committed for debt reduction and for our growth purposes in the business.

— Dhaval Ajmera, Director

Other Income

Repatriation from London Other Income · next few quarters · Medium confidence 40, 50 crores plus

While the London part, some part have already started getting money in our books, and we have already got, we have got about 40, 50 crores plus of money to be coming in more and we are expecting that to come in the next few quarters.

— Dhaval Ajmera, Director
Repatriation from Bahrain Other Income · late 2025, early 2026 · Medium confidence —

our sense is late part of 25, early part of 26 is where Bahrain money should be expected.

— Dhaval Ajmera, Director

Project Launch

Kanjurmarg Launch Project Launch · March, April 2025 · Medium confidence —

We are hopeful to have this by March, April, this year next 25.

— Dhaval Ajmera, Director
Rustomjee JV Project Launch Project Launch · March 2025 · Medium confidence —

sometime in March 25 for which the site has already been vacated over there... and by March, we should be able to launch this project.

— Dhaval Ajmera, Director

Project Topline

Vikhroli Project Topline Project Topline · project lifecycle · Medium confidence 650ish crores

the total saleable area over there is roughly about three lakh square feet, with a top line expectation of 650ish crores from the project.

— Dhaval Ajmera, Director
Wadala Topline Potential Project Topline · High confidence 11,000 crore

So, the current price is around 35,000 to 37,000 square feet. So, this becomes a potential 11,000 crore top line for us? Yes.

— Vinay Nagori (confirmed by Dhaval Ajmera)

Project Cost

Vikhroli Project Cost Project Cost · project lifecycle · Medium confidence 250 to 300 crores

And the project cost is roughly in about 250 to 300 crores

— Dhaval Ajmera, Director

Project Type

Rustomjee JV Project Type Project Type · High confidence purely commercial

No, our plan, is to do commercial over there, and we would be doing purely commercial.

— Dhaval Ajmera, Director

Regulatory

Maha RERA Registration Regulatory · February and March · Medium confidence —

Launch of March by, we are expecting that to happen by February and March only

— Dhaval Ajmera, Director

Profitability

EBITDA Margin (Own Land Banks) Profitability · project lifecycle · High confidence 35% to 45%

for our own land banks where we have already paid off for the land and mainly the premiums and the construction cost and all that is to be done. We are expecting, IRRs over there in the range of 35% to 45% depending upon the cost of construction, et cetera. And these are our EBITDA margin sorry.

— Dhaval Ajmera, Director
EBITDA Margin (Redevelopment/JV) Profitability · project lifecycle · High confidence 25% to 30%

when we look at redevelopment projects, we look at anywhere between 25% to 30%, if it's a joint venture also it's the range of 30% ish and outright is in the range of 25% to 30%.

— Dhaval Ajmera, Director
EBITDA Margin (Slum/Society Redevelopment) Profitability · project lifecycle · High confidence 20% to 25%

Some slum redevelopment or society redevelopment projects, if the location is very good, we are okay to look at a little lower margin, between 20% to 25%

— Dhaval Ajmera, Director

Land Bank

Wadala Sellable Area Land Bank · High confidence 30 lakh square feet

FSI point of view, we have about 30 lakh square feet of sellable area, area to be sold and revenue to be generated from there.

— Dhaval Ajmera, Director
Kanjurmarg Sellable Area Land Bank · High confidence 80 lakh square feet

Yes, and 80 lakhs in Kanjurmarg.

— Dhaval Ajmera, Director

Realization

Kanjurmarg Residential Price Realization · today · High confidence 27,000-28,000 Rs/sq ft

See ideally over there, the prices today are around 27,000, 28,000, for residential

— Dhaval Ajmera, Director
Kanjurmarg Commercial Price Realization · High confidence 30,000 Rs/sq ft

about 30ish for commercial.

— Dhaval Ajmera, Director

Cash Flow

Cash Generation (from +4200 crores GDV projects) Cash Flow · project lifecycle · High confidence 1200 crores

the cash rather the cash generation out of this particular projects to launch, which is having the GDV of +4200 crores, is about 1200 crores.

— Nitin Bavisi, Chief Financial Officer
Cash Generation (from ongoing projects) Cash Flow · maximum two and a half to three years · High confidence 760 crore

Ongoing projects is going to contribute about 760 crore of the cash from the completion and where we are looking at a life cycle of about maximum two and a half to three years

— Nitin Bavisi, Chief Financial Officer
Cash Generation (from other avenues/asset monetization) Cash Flow · High confidence 330 crore

cash generation from other avenues and asset monetization which is 330 crore

— Nitin Bavisi, Chief Financial Officer
Total Cash Generation Cash Flow · next about three to three and a half years · High confidence 2300 crores

all these three pieces together, is going to generate a cash of about 2300 crores estimation.

— Nitin Bavisi, Chief Financial Officer

Risks & concerns

Delays in asset monetization (South Mumbai land sale)
medium

High-ticket HNI buyers require time for evaluation, impacting the timeline for debt reduction.

Analyst acknowledged
Capital requirements for large-scale commercial developments
medium

Commercial projects like Wadala and Kanjurmarg will require significant capital, which the company plans to address through partnerships and project-level debt.

Management acknowledged
Market demand for mixed-use developments in specific micro-markets
low

Management plans a mix of residential, commercial, and retail in large projects to diversify sales potential and mitigate limited demand in any single segment.

Management acknowledged

Areas of evasion (1)

Specific timeline for South Mumbai land sale

Q&A highlights

2 direct

Details on the ₹88 crore private equity deal for a new project. Direct

This project, what we have done, we have done a deal with Motilal Oswal. It is a project which we have acquired from Tata Communications... the total saleable area over there is roughly about three lakh square feet, with a top line expectation of 650ish crores from the project. And the project cost is roughly in about 250 to 300 crores... it is a structured deal with a committed IRR. So, there is no, equity level dilution.

Provides specific financial and operational details of a significant funding deal, clarifying its structure and impact on a new project.

Asked by Jeevan from Sahasrar Capital

Update on the sale of South Mumbai land to reduce debt. Partial

Well, we are, to be honest with you, we are still under discussions. There are few offers which have come in. Some are not to our satisfaction... One, two are looking positive, but they are taking time to evaluate in terms of the legalities and all, so which we are respecting and moving ahead accordingly.

Addresses a key investor concern regarding debt reduction and asset monetization, indicating progress but also acknowledging delays due to evaluation processes.

Asked by Jeevan from Sahasrar Capital

Clarity on Wadala and Kanjurmarg land bank development potential and funding strategy. Direct

Kanjurmarg is a 66 acre land parcel, and Wadala is a layout of 100 acres... we have about 30 lakh square feet of sellable area... and 80 lakhs in Kanjurmarg... out of this entire 4270 crore of the launch pipeline, two projects which is almost about 50% of this total, which is Wadala 1550 crore and the Kanjurmarg first phase which is 800 crores... we are looking at a project level debt requirement and debt funding.

Provides granular details on the company's largest land banks, their development potential, estimated value, and the strategy for funding these significant future projects.

Asked by Pavandeep Bhatia from NV Alpha

2 min read 5 chapters

Detailed narrative

Q2 & H1 FY25 Financial and Operational Performance

Ajmera Realty reported strong financial results for Q2 and H1 FY25. For Q2, sales value stood at ₹254 crores, with collections growing 20% to ₹133 crores. Total revenue increased by 38% Y-o-Y to ₹204 crores, while PAT grew 58% Y-o-Y to ₹36 crores. For the first half, sales value reached ₹560 crores (up 18% Y-o-Y), collections were ₹298 crores (up 34% Y-o-Y), and revenue hit ₹400 crores (up 51% Y-o-Y). H1 EBITDA was ₹131 crores (up 67% Y-o-Y) with a 33% margin, and PAT was ₹69 crores (up 55% Y-o-Y) with a 17% margin.

Project Updates and Sales Momentum

The company's flagship project, Ajmera Manhattan, has seen 85% of its inventory sold out, with Tower B completed up to the ninth level and Tower A up to the eighth level. Ajmera Greenfinity has sold 59% of its inventory, with construction up to the second level. Ajmera Eden in Ghatkopar has 69% of its inventory sold, with the 14th floor slab completed. The newly launched Ajmera Vihara at Bhandup has successfully sold 49% of its opened inventory and is currently under excavation. Bangalore projects like Lugano and Florenza have sold approximately 90% of their inventory.

Land Bank and Future Launch Pipeline

Ajmera Realty has a robust launch pipeline with potential GDV of +₹4200 crores from 17 lakh square feet, expected to be executed over the next 3 to 3.5 years. Key land banks include Kanjurmarg (66 acres, 80 lakh sq ft sellable area) and Wadala (100-acre layout, 30 lakh sq ft sellable area). The Wadala land has a potential topline of ₹11,000 crores, while Kanjurmarg is estimated at ₹27,000-₹28,000/sq ft for residential and ₹30,000/sq ft for commercial. The Kanjurmarg project is targeted for launch by March-April 2025, and the Rustomjee JV commercial project by March 2025.

Funding and Debt Management

The company successfully completed a preferential allotment of equity shares amounting to ₹225 crores, earmarked for debt reduction and growth. Net debt remains stable at ₹793 crores, and the debt-equity ratio improved to 0.85:1, below the 1x benchmark. The weighted average cost of debt is 12.22%. Management is actively pursuing repatriation of funds, with ₹40-50 crores expected from London in the next few quarters and Bahrain funds anticipated in late 2025/early 2026.

Margin Expectations and Cash Flow Outlook

Ajmera Realty anticipates strong EBITDA margins, ranging from 35-45% for projects on its own land banks. Redevelopment and joint venture projects are expected to yield 25-30% EBITDA margins, while slum/society redevelopment projects could be 20-25%. The company projects significant cash generation: approximately ₹1200 crores from the +₹4200 crores GDV launch pipeline, ₹760 crores from OC received and ongoing projects, and ₹330 crores from other avenues/asset monetization, totaling an estimated ₹2300 crores over the next 3 to 3.5 years.

This is an AI-generated summary of a publicly available earnings call transcript.

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