Ajmera Realty & Infra India Limited — Q3 FY25 earnings call

Call held 4 Feb 2025

Management summary

Ajmera Realty reported a robust Q3 and 9 Months FY25, driven by strong sales momentum and project execution. The company saw significant growth in sales value, area, and collections, alongside healthy profit margins. Strategic debt reduction and a substantial launch pipeline position Ajmera Realty for continued growth, despite some project approval delays being actively managed.

Highlights

  • Q3 FY25 Sales Value reached ₹270 crores, up 7% YoY, with sales area increasing 59% YoY to 165,000+ sq ft.

  • Q3 FY25 Revenue stood at ₹199 crores, while EBITDA was ₹69 crores, reflecting an 11% YoY increase and a 35% margin.

  • PAT for Q3 FY25 was ₹33 crores, also up 11% YoY, with a PAT margin of 17%.

  • For the 9 Months FY25, Sales Value grew 14% YoY to ₹830 crores, and Collections increased 25% YoY to ₹464 crores.

  • 9 Months FY25 Revenue was ₹599 crores (up 27% YoY), with EBITDA at ₹200 crores (up 42% YoY) and a 33% margin.

  • Net debt reduced by approximately 14% in the last 9 months, amounting to ₹107 crores, improving the debt-equity ratio to 0.57x:1.

  • The company has a strong launch pipeline of six projects in the next two quarters, with an estimated Gross Development Value (GDV) of ₹4,300 crores and 1.7 million sq ft.

  • Total revenue visibility, including OC received, ongoing projects, and the launch pipeline, stands at over ₹6,000 crores.

Key financials

4 periods

Headline

  • Debt-Equity Ratio
    0.57×

Q3 FY25

  • Sales Value
    ₹270 Cr
    YoY +7%
  • Sales Area
    1,65,000 sq ft
    YoY +59%
  • Collections
    ₹167 Cr
    YoY +10%
  • Revenue
    ₹199 Cr
  • EBITDA
    ₹69 Cr
    YoY +11%
  • EBITDA Margin
    35%
  • PAT
    ₹33 Cr
    YoY +11%
  • PAT Margin
    17%

9M

  • FY25 Sales Value
    ₹830 Cr
    YoY +14%
  • FY25 Sales Area
    4,09,000 sq ft
    YoY +14%
  • FY25 Collections
    ₹464 Cr
    YoY +25%
  • FY25 Revenue
    ₹599 Cr
    YoY +27%
  • FY25 EBITDA
    ₹200 Cr
    YoY +42%
  • FY25 EBITDA Margin
    33%
  • FY25 PAT
    ₹102 Cr
    YoY +37%
  • FY25 PAT Margin
    17%

9M FY25

  • Net Debt Reduction
    ₹107 Cr

What they filed

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

₹ Cr · quarterly
Line itemQ2 FY25Q3 FY25Q4 FY25Q1 FY26Q2 FY26Q3 FY26Q4 FY26Q1 FY27
Revenue200 193 151 258 219 +10%182 −6%431 +185%317 +23%
EBITDA60 63 43 78 58 −3%55 −13%107 +149%91 +17%
Net profit36 33 24 39 31 −14%28 −15%59 +146%45 +15%
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

Launch Pipeline

  • GDV of new projects Launch Pipeline · next 2 quarters · High confidence ₹4,300 crores
    Looking ahead, we are well prepared with the launch of our six projects in the next 2 quarters, collectively giving us about 1.7 million square feet with a GDV of INR 4,300 crores.

    — Mr. Dhaval Ajmera, Director

Pre-sales

  • Presales guideline Pre-sales · FY '25 · High confidence ₹1,350 crores
    Yes.

    — Mr. Dhaval Ajmera, Director

Project Launch

  • Lakeside Paradise launch Project Launch · March '25 · High confidence Q4 FY25
    Lakeside Paradise being the new entrant in this particular launch list and for which we have already received the RERA certificate and which is going to be the event of this current quarter, March '25.

    — Mr. Nitin Bavisi, Chief Financial Officer

  • Wadala project launch Project Launch · March timelines · Medium confidence Q4 FY25
    And Wadala, we are very aggressively working to bring it within the March timelines.

    — Mr. Nitin Bavisi, Chief Financial Officer

  • Remaining 4 projects launch Project Launch · by June '25 · High confidence Q1 FY26
    And rest of the 4 projects are very much within the quarter 1 FY '26, which is by June '25.

    — Mr. Nitin Bavisi, Chief Financial Officer

Profitability

  • EBITDA Margin Profitability · going forward basis · High confidence Sustainable (implied 33-34%)
    And we expect that on a going forward basis also, margin is sustainable.

    — Mr. Nitin Bavisi, Chief Financial Officer

Risks & concerns

  • Project approval delays (Wadala, Kanjurmarg)

    medium

    Management acknowledged 'last leg of approvals' for Kanjurmarg and 'some things are underway' for Wadala, with NGT orders having previously hindered progress for free sale components.

    Management acknowledged

  • Temporary market caution

    low

    Management noted a period of caution in December due to stock market and overall sentiments but believes it's temporary, offset by budget liquidity and potential RBI policy changes.

    Management downplayed

Areas of evasion (2)

  • Specifics on the 'last leg of approvals' for Wadala and Kanjurmarg beyond the NGT order explanation.
  • A clear path forward/timeline for the South Mumbai land deal.

Q&A highlights

1 direct
Wadala project launch timeline and approvals Partial
Yes. So approvals are already in place. We've got some approvals. We've already started because there are a long list of approvals and some things are underway. So hopefully, in the next few months, we should be able to launch this project.

The analyst pressed for a specific timeline for the Wadala launch, and management's response indicated some ongoing approval processes despite stating approvals are 'in place', suggesting potential for minor delays.

Asked by Dixit Doshi

Kanjurmarg project details, costs, and approval status Direct
So we have to build around 1.5 lakh square feet roughly, give or take, we have to build and give it to them. And that project, overall, our estimation is about INR50 crores to INR60 crores on construction and other approval processes. Plus there will be other costs for infrastructure and everything, which will -- this I'm particularly talking only for the police housing. As far as approvals are concerned, we've already got the necessary approvals and construction.

This question elicited specific financial and operational details for a significant upcoming project, including police housing obligations, estimated costs, and expected project-level returns (35% EBITDA margin), along with an explanation of approval hurdles due to NGT orders.

Asked by Dixit Doshi

Slow progress on South Mumbai land deal Partial
Well, we've not honestly pushed out to complete because if we don't get the kind of offer what we want, we do not want to just go ahead and sell it. But we are progressing a little slow. I mean, not slow, but we are not pushing it because our cash flows are not dependent on that sale, but we have other -- we have been able to leverage our cash flows in terms of our loans being diluted to a great extent. So we are not like heavily dependent on this. If we get the right value, we sell. Otherwise, we'll hold it.

The analyst questioned the slow progress on a potential land sale, and management clarified that they are not under pressure to sell due to strong cash flows and debt reduction, indicating a strategic hold for optimal value rather than a lack of interest.

Asked by Saurabh Sadhwani

3 min read 6 chapters

Detailed narrative

Strong Q3 and 9M FY25 Financial Performance

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.

Strategic Debt Reduction and Enhanced Revenue Visibility

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.

Project Updates and Sales Momentum

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.

Aggressive Launch Pipeline for FY25-FY26

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.

Kanjurmarg Project Development and Approvals

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.

Market Outlook and Margin Sustainability

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.

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