Ajmera Realty & Infra India LtdQ2 FY24
Ajmera Realty & Infra India Ltd Q2 FY24 Earnings Call Analysis
Revenue, margin, capex, fundraise and order book outlook from management commentary.
Price: ₹139P/E: 20.8Market Cap: ₹2.5K CrSector: Realty
Management growth scorecard
Revenue
Category 2
Margin
Category 3
Fundraise
Yes
Order
Yes
Capex
Yes
3 of 5 growth signals are positive.
Full analysisRevenue guidance
Category 2- →Ajmera Realty targets presales of INR 1,350 crore for FY25, with INR 306 crore already achieved in Q1, indicating confidence in meeting annual guidance.
- →Launch pipeline includes 7 projects with a GDV of INR 4,270 crore spanning approximately 1.7 million sq ft, set for launch mainly within the next 3-4 years.
- →Total land bank is about 11.1 million sq ft, primarily in Mumbai areas like Wadala and Kanjurmarg, with plans to increase yearly development run rate.
- →Sales momentum is strong in flagship projects: Ajmera Manhattan (80% sold), Ajmera Greenfinity (51% sold), Ajmera Eden (60% sold), and new Ajmera Vihara (24% sold after launch).
- →Revenue visibility stands at INR 6,243 crore from existing, ongoing, and upcoming projects; with expected revenue inflows over 27-30 months.
- →Company expects healthy volume growth supported by ongoing launches, approvals, and festivity-season demand.
Margin guidance
Category 3- →Q1 FY25 showed strong growth: sales value up 36%, revenue up 67%, EBITDA up 72%, PAT up 52% YoY.
- →Presales guidance for FY25 is INR 1,350 crore, with INR 306 crore already secured in Q1.
- →Pipeline includes 7 projects totaling 1.7 million sq.ft with GDV around INR 4,270 crores.
- →Estimated revenue visibility of approx INR 6,243 crore from existing, ongoing, and upcoming projects.
- →Cash flow from ongoing projects estimated at about INR 850 crore; launch pipeline expected to generate INR 1,200 crore cash.
- →Average IRR targeted around 30%+ across different project types.
- →Company aims for 5x growth and continued debt reduction.
- →Asset-light and JV models emphasized to expand project pipeline of INR 3,500 crores over next few years.
- →Confident in maintaining strong financial momentum and improving credit ratings (CRISIL A- stable outlook).
- →Earnings growth expected to continue driven by project launches, completions, and monetization.
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Fundraise plans
Yes- →Ajmera Realty plans to acquire INR 3,500 crores worth of projects through a mix of organic growth and inorganic acquisitions.
- →Funding will involve a combination of asset-light models, Joint Developments (JDs), Joint Ventures (JVs), and use of company-owned land parcels.
- →The company currently has about INR 800 crores of debt and aims to manage new funding without fully leveraging upfront capital.
- →There is a strategic focus on minimizing capital commitment with asset-light and non-capital intensive projects.
- →No explicit mention of fresh equity fundraising was made; emphasis is on strategic acquisition and launch of new projects primarily via debt and JV models.
- →The company is aggressively working on debt reduction and improving its debt profile, as reflected in recent repayment of INR 58 crores and a reduction in weighted average cost of debt to 11.6%.
Order book
Yes- →Ajmera Realty & Infra India Limited has total revenue visibility of approximately INR 6,243 crores from existing, ongoing, and upcoming projects.
- →Upcoming launches this financial year include 7 projects totaling 1.7 million square feet with a Gross Development Value (GDV) of around INR 4,270 crores.
- →The company expects around INR 87 crores revenue from projects at an advanced stage or with Occupation Certificate (OC) in the next 6 months.
- →Revenue from mid-stage ongoing projects is expected to contribute approximately INR 1,886 crores over the next 27-30 months.
- →Estimated net cash flow from OC received and ongoing projects is about INR 850 crores moving forward.
- →The launch pipeline includes MHADA redevelopment, SRA redevelopment, and society redevelopment projects.
- →The company is targeting presales of INR 1,350 crores for FY25 and has plans to acquire projects worth INR 3,500 crores to deepen the launch pipeline.
Capex plans
Yes- →Ajmera Realty plans to acquire projects worth INR 3,500 crores to deepen its launch pipeline in FY25 and FY26, comprising a mix of joint development (JD), joint ventures (JV), and asset-light, non-capital-intensive projects.
- →The company is incurring business development and CapEx expenses related to these acquisitions and new launches, with a focus on MHADA redevelopment, SRA redevelopment, and society redevelopment projects.
- →Seven new projects, totaling about 1.7 million sq. ft. with a GDV of INR 4,270 crores, are under various approval and planning stages, targeted for launches primarily in the last quarter of FY25 and extending over the next 3-4 years.
- →Cash flow from ongoing and new projects is expected to be significant, with estimated INR 850 crores from existing projects and about INR 1,200 crores from the new pipeline.
- →The Wadala commercial land parcel, demerged to a subsidiary, is planned for phased commercial development starting next year, with construction beginning when market demand suits.
How does Ajmera Realty & Infra India Ltd rank vs peers in Realty?
Pro feature1Ajmera Realty & Infra India Ltd
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