Ajmera Realty & Infra India LtdQ3 FY24
Ajmera Realty & Infra India Ltd Q3 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 1
Margin
Category 3
Fundraise
Yes
Order
Yes
Capex
Yes
4 of 5 growth signals are positive — a strong management growth story.
Full analysisRevenue guidance
Category 1- →Ajmera Realty targets significant growth with a vision to achieve a 5x increase.
- →Sales value for H1 FY25 reached ₹560 crore, marking 18% YoY growth with strong sales momentum.
- →Launch pipeline projects have a Gross Development Value (GDV) of about ₹4,270 crore, expected to be executed over 2-3 years.
- →Ongoing projects contribute revenue visibility of about ₹17,000 crore.
- →Cash generation estimated at around ₹2,300 crore over the next 3-3.5 years supports the growth plans.
- →Future launches include large projects like Wadala (₹1,550 crore) and Kanjurmarg (₹800 crore).
- →Margins for own land bank projects are targeted at 35%-45% EBITDA; redevelopment/JV projects target 20%-30%.
- →Strategic partnerships are being explored for commercial, retail, and hospitality segments to enhance value and sales potential.
- →The company expects continuous and robust collections to support aggressive project launches through FY25 and beyond.
Margin guidance
Category 3- →Ajmera Realty aims for a significant growth leap in FY25, supported by strong project performances and sales momentum.
- →Sales value for H1 FY25 was ₹560 crore, showing 18% YoY growth; revenue increased 51% YoY to ₹400 crore.
- →EBITDA grew 67% YoY to ₹131 crore, with a margin of 33%; PAT rose 55% YoY to ₹69 crore (17% margin).
- →Future launch pipeline GDV of ₹4,270 crore expected to be executed over 2-3 years, with sales growth targeted at roughly 50%.
- →Ongoing projects and upcoming launches provide robust revenue visibility of about ₹17,000 crore.
- →Margins expected to remain healthy: 35%-45% EBITDA for own land projects; 20%-30% for redevelopment/JVs.
- →Company plans to remain well-capitalized with equity raises and project-level debt, supporting fast growth and potential partnerships.
- →Overall outlook optimistic for 5x growth in strategic vision, with sustained profitability and cash flows.
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Fundraise plans
Yes- →Ajmera Realty has completed a preferential equity allotment of ₹225 crore to marquee strategic investors.
- →The proceeds from this equity raise are earmarked for multiple debt repayments, project launches, promoter contributions, and general corporate purposes.
- →Company is open to project-level partnerships especially for capital-intensive commercial developments, like Wadala and Kanjurmarg.
- →Debt funding at the project level (working capital loans) will continue, supported by operating cash flow from ongoing projects.
- →Weighted average cost of debt rose slightly to 12.22% due to a recent project-level private equity deal.
- →No explicit mention of imminent large-scale future fundraises, but the company remains well capitalized with equity and operating cash flows to fund growth.
- →Possibility of future fundraises exists if opportunities to grow fast or acquire new projects arise, as mentioned in response to investor queries.
Order book
Yes- →Ajmera Realty has a strong revenue visibility of Rs. 1780 crore from OC received and ongoing projects.
- →The launch pipeline projects have an estimated GDV of about Rs. 4270 crore to be executed over the next 2-3 years.
- →The total launch pipeline is planned over approximately three and a half years.
- →Potential launches include 17 lakh square feet with a gross development value of over Rs. 4200 crore.
- →The company expects to generate cash flows of around Rs. 2300 crore over the next 3-3.5 years combining ongoing projects, new launches, and asset monetization.
- →Ongoing projects will contribute cash inflows of approximately Rs. 760 crore from completions.
- →Asset monetization is expected to yield about Rs. 330 crore.
- →The company continues to explore partnerships and funding options to support the launch and development pipeline.
Capex plans
Yes- →Ajmera Realty is planning significant project launches with a gross development value (GDV) of approximately ₹4,270 crores over the next 2-3 years.
- →Capital expenditure for these projects includes construction costs estimated around ₹800 to ₹1,000 crores.
- →The company plans to fund these via a mix of equity raise (recent preferential allotment of ₹225 crores), project-level debt, and operating cash flows.
- →Asset-light strategies like redevelopment and joint ventures will spread costs over the project lifecycle, reducing upfront capital pressure.
- →Strategic partnerships are being considered, especially for commercial, retail, or hospitality segments, to bring in capital, brand value, and expertise.
- →Ajmera has also closed a private equity deal for part funding the acquisition and approval costs of a Vikhroli project.
- →Additionally, asset monetization is expected to contribute ₹330 crores in cash flows over the next few years.
- →The company aims to remain well-capitalized and liquid to support growth and future investments.
How does Ajmera Realty & Infra India Ltd rank vs peers in Realty?
Pro feature1Ajmera Realty & Infra India Ltd
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