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.