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    Ashiana Housing

    ASHIANA
    Realty·12 Feb 2025
    Management Summary

    Ashiana Housing delivered a strong Q3 FY25 with significant growth in area booked and pre-sales, alongside a substantial increase in revenue and operating cash flow. The company also expanded its portfolio with new project launches. However, construction faced headwinds from regulatory restrictions, and the outlook for Q4 FY25 margins is cautious due to the current project mix. The Gurgaon market has also shown signs of softening.

    Highlights

    5
    • Area booked in Q3 FY25 was 6.77 lakh sq ft, a 102.09% increase from 3.35 lakh sq ft in Q3 last year.

    • Value of area booked in Q3 FY25 stood at ₹454.16 crores.

    • Total pre-sales for 9M FY25 reached ₹1,362.02 crores, an upside of 45.56% compared to ₹935.68 crores in the previous year.

    • Pre-tax operating cash flow recorded at ₹120.42 crores in Q3 FY25, a 54.02% increase from ₹78.18 crores in Q2 FY25, driven by higher collections and better sales.

    • Three new senior living projects were launched: Ashiana Swarang (Chennai), Ashiana Ekansh (Jaipur), and Ashiana Amodh (Pune).

    Concerns

    4
    • Construction activity declined 13.64% QoQ to 5.19 lakh sq ft in Q3 FY25, primarily due to GRAP related restrictions in Delhi-NCR.

    • Q4 FY25 margins are expected to be 'very muted' due to the delivery of low-margin projects like Ashiana Anmol Phase-2 and Ashiana Amantran.

    • The Gurgaon market is described as 'softer' or 'more normal' compared to 8-9 months ago, with lower closing rates and visits.

    • Launch of Ashiana Aaroham (Gurgaon) has been delayed to Q2 or Q3 FY26 due to last-minute regulatory changes.

    What Changed1

    vs Q4 FY25

    Guidance items11 → 10 (-1)
    Key financials

    Metrics

    7

    Periods

    2

    Headline

    6
    • Area Booked
      6.77 lakh sq ft
      YoY+102.1%QoQ-7.1%
    • Value of Area Booked
      ₹454.16 Cr
      QoQ-32.5%
    • Construction
      5.19 lakh sq ft
      QoQ-13.6%
    • Total Revenues
      ₹139.93 Cr
      QoQ+135.0%
    • PAT
      ₹10.88 Cr

    9M FY25

    1
    • Total Pre-sales
      ₹1,362.02 Cr
      YoY+45.6%

    Order Book

    high confidence

    Total Value

    ₹ 454.16 crores

    as of 2024-12-31

    quantified
    102.1% YoY-7.1% QoQ

    Inflow this qtr

    ₹ 454.16 crores

    Composition

    Chennai(geography)
    Jaipur(geography)
    Pune(geography)

    Pipeline

    other

    Existing projects stock, land bank, and new land agreements in Jaipur and Bangalore.

    "We had very good bookings across projects this quarter."

    Source:
    Prepared remarks

    Capital allocation

    5
    high confidence
    CategoryHeadline
    Capex

    Capex disclosed

    M&A

    Land parcel in Jaipur

    acquisition · signed

    M&A

    Land parcel in Bangalore

    acquisition · pending regulatory

    M&A

    Another land parcel (7-8 lakh sq ft)

    acquisition · announced

    Liquidity

    Liquidity disclosed

    Cash flows continue to be healthy due to higher collections driven by better sales across projects.

    Guidance & targets

    10
    CategoryTargetPriority
    Pre-sales
    Pre-sales value
    ₹2,000 crores
    Medium
    Revenue
    Total Revenues
    ₹550-575 crores
    High
    Revenue
    Q4 FY25 Revenue
    ₹300 crores
    High
    Revenue
    Future Revenue/Delivery Revenue
    ₹1,300+ crores (next year), ₹1,700+ crores (year after)
    High
    Profitability
    PAT Margins
    High teen margins
    Medium
    Land Bank
    Land bank consumption
    All current stock (11 lakh sq ft unsold, 48 lakh sq ft future phases, 25 lakh sq ft land bank)
    High
    Launches
    New project launches
    Aaroham (Gurgaon), Jaisingpura (Jaipur), Jamshedpur, plus one BD pipeline project (Bangalore/Jaipur)
    High
    Launches
    Ashiana Aaroham launch
    Q2 or Q3 FY26
    High
    Sales
    Umang project sales completion
    H1 or full FY of next financial year
    Medium
    Sales
    Surbhi project sales completion
    Next financial year (contingent on Q1 FY26 strategy)
    Low

    Bangalore Land Deal Closure

    this quarter or next quarter
    CurrentMoving forward, pending regulatory approvals from landlords
    TargetDeal closure

    Why it matters

    Successful closure will add 10-12 lakh sq ft to the land bank, crucial for future growth.

    I am hoping this quarter, but you know, they have issues, they are regulatory in nature issues. So, sometimes it's not just on the landlord, it's also on the government. But I am hoping this quarter we should be able to get through. If not this quarter, the next quarter.

    How to verify

    capital_allocation.m_and_a

    Risks & concerns

    5
    RiskSeverity

    GRAP related restrictions in Delhi-NCR

    Caused a 13.64% QoQ decline in construction and delayed delivery of high-margin projects.Management acknowledged

    high

    Softening market conditions in Gurgaon

    Markets are 'softer' or 'more normal' with lower closing rates and visits compared to 8-9 months ago.Management acknowledged

    medium

    Muted Q4 FY25 margins

    Expected due to the delivery of low-margin projects like Ashiana Anmol Phase-2 and Ashiana Amantran.Management acknowledged

    high

    Regulatory delays for new project launches

    Ashiana Aaroham launch delayed to Q2/Q3 FY26 due to last-minute regulatory changes affecting building plans.Management acknowledged

    medium

    Conditions precedent for Bangalore land deal

    Deal is dependent on landlords obtaining land approval and resolving regulatory issues.Management acknowledged

    medium

    Q&A highlights

    8

    “I am hoping this quarter, but you know, they have issues, they are regulatory in nature issues. So, sometimes it's not just on the landlord, it's also on the government. But I am hoping this quarter we should be able to get through. If not this quarter, the next quarter.”

    Analyst sought clarity on a significant land acquisition, but management indicated ongoing regulatory hurdles, making the timeline uncertain.

    asked by Rohit

    2 min read5 chapters

    Detailed Narrative

    01

    Strong Q3 FY25 Bookings and Revenue Growth

    Ashiana Housing reported robust performance in Q3 FY25, with area booked increasing by 102.09% YoY to 6.77 lakh square feet. The value of area booked stood at ₹454.16 crores for the quarter. Cumulatively, total pre-sales for the first nine months of FY25 reached ₹1,362.02 crores, marking a significant 45.56% increase over the previous year. This strong booking performance translated into a substantial 135.04% QoQ growth in total revenues, which reached ₹139.93 crores in Q3 FY25.

    02

    Healthy Cash Flow and New Project Launches

    The company maintained healthy cash flows, with pre-tax operating cash flow rising 54.02% QoQ to ₹120.42 crores in Q3 FY25, and ₹273.53 crores for the nine-month period, driven by improved collections and sales. Ashiana expanded its project portfolio by launching three new senior living projects during the quarter: Ashiana Swarang in Chennai, Ashiana Ekansh (Phase-4) in Jaipur, and Ashiana Amodh (Phase-2) in Pune, indicating continued focus on this specialized segment.

    03

    Construction Headwinds and Muted Q4 Margin Outlook

    Despite strong bookings, construction activity saw a 13.64% QoQ decline to 5.19 lakh square feet in Q3 FY25, primarily due to the imposition of GRAP related restrictions in Delhi-NCR. This also led to the delay of a high-margin project, Ashiana Advik Phase-1, from Q4 FY25 to Q1 FY26. Consequently, Q4 FY25 margins are expected to be 'very muted' as the company delivers lower-margin projects like Ashiana Anmol Phase-2 and Ashiana Amantran.

    04

    Strategic Land Bank Expansion and Market Dynamics

    Ashiana is actively expanding its land bank, with an agreement executed for a 20-acre parcel in Jaipur (adding ~20 lakh sq ft) and ongoing talks for another 7-8 lakh sq ft parcel. A significant Bangalore land deal, potentially adding 10-12 lakh sq ft, is progressing but faces regulatory hurdles. Management noted a softening in the Gurgaon market, describing it as 'more normal' compared to the 'extraordinary exuberance' seen 8-9 months prior, with lower closing rates and visits.

    05

    FY25 Guidance and FY26 Launch Pipeline

    The company reiterated its FY25 pre-sales guidance of ₹2,000 crores, contingent on the velocity of bookings for Ashiana Amarah Phase-5, expected to launch in Q4 FY25. Total revenues for FY25 are projected to be around ₹550-575 crores, with approximately ₹300 crores expected in Q4. For FY26, Ashiana aims to launch three key projects (Aaroham, Jaisingpura, Jamshedpur) along with at least one of the new land deals, though Ashiana Aaroham's launch has been delayed to Q2/Q3 FY26 due to regulatory changes.

    This is an AI-generated summary of a publicly available earnings call transcript. It is for informational purposes only and does not constitute investment advice, a recommendation, or an endorsement. inve.money is not a SEBI-registered investment advisor. Please consult a qualified financial advisor before making any investment decisions.