Ajmera Realty

Ajmera Realty delivered robust financial results for Q3 FY25, with sales value growing 7% YoY to ₹270 crores and sales area increasing significantly by 59% YoY to over 165,000 sq ft. Revenue for the quarter was ₹199 crores, contributing to an EBITDA of ₹69 crores (up 11% YoY) and a PAT of ₹33 crores (up 11% YoY), maintaining healthy margins of 35% and 17% respectively. For the nine months ended December 2024, sales value reached ₹830 crores (up 14% YoY), with collections at ₹464 crores (up 25% YoY), demonstrating strong cash flow generation.

The company successfully reduced its net debt by approximately 14% in the last nine months, amounting to ₹107 crores, which improved the debt-equity ratio to a healthy 0.57x:1. This deleveraging was attributed to strong cash flows and a recent equity raise. Ajmera Realty now boasts a total revenue visibility exceeding ₹6,000 crores, comprising ₹1,700+ crores from OC-received and ongoing projects, and an additional ₹4,300 crores from its robust launch pipeline.

Several projects showed strong progress and sales. Ajmera Manhattan in Wadala is 90% sold out, with construction progressing well. Ajmera Greenfinity is two-thirds sold, and Ajmera Eden in Ghatkopar has 85% of its inventory sold. The recently launched Ajmera Vihara in Bhandup (May 2024) has sold over half its inventory, and Ajmera Iris in Bangalore, launched two months ago, has already sold over 50% of its inventory. These projects are contributing to the sustained sales momentum.

Ajmera Realty is poised for significant growth with a planned launch of six new projects in the next two quarters (Q4 FY25 and Q1 FY26), collectively offering 1.7 million sq ft and an estimated GDV of ₹4,300 crores. Key launches include Lakeside Paradise, which has already received RERA certification and is expected in March '25, and the Wadala project, which management is aggressively working to launch within the March timelines. The remaining four projects are targeted for launch by June '25.

The Kanjurmarg project, spanning 7 acres, is planned to have 1 million sq ft of sales area, with the first phase comprising 4 lakh sq ft. Management estimates a project-level return of approximately 35% EBITDA margin. The project includes an obligation to build 1.5 lakh sq ft of police housing, estimated to cost ₹50-60 crores. While necessary approvals for police housing are in place, approvals for the free sale components were temporarily hindered by NGT orders, which have recently been resolved, allowing the company to proceed with environment clearances.

Management expressed a bullish outlook on the real estate sector, citing resilience, favorable economic conditions, and increased preference for larger homes. Government initiatives like PMAY schemes and increased liquidity from the budget are expected to boost homeownership. Despite a brief period of market caution in December, the overall sentiment remains positive. The company expects to maintain its EBITDA margins at 33-34% on a going-forward basis, driven by efficient project execution and strong sales.