Current/ Expected Orderbook/ Pending Orders?

The company has a developable area of approximately 17 million square feet. The total top-line expected from these projects is around ₹9,900 crore to be constructed over the next seven years. Approximately 75% of the sales (around ₹7,425 crore) are expected within the next five years. The remaining 25% will be generated in the subsequent two years (years 6 and 7). The unsold value of ongoing projects is approximately ₹1,117 crore. Collections expected from sold projects over the next 2-3 years amount to around ₹660 crore. The company aims for a CAGR growth of 25-30% year-on-year from current l

Any current/future new fundraising through debt or equity?

The company has an enabling resolution to raise up to ₹500 crores annually, renewed each year, but no specific immediate fundraising is planned. Any new capital raised through this route would be primarily for acquisition of new projects, not for debt repayment. Current debt is considered sustainable, with ₹156 crores secured loan and ₹262 crores unsecured loan as of June 30. Debt reduction is planned through internal accruals and surplus cash flows from ongoing projects rather than fresh fundraising. The company will decide on the timing and amount of equity dilution based on the right opport

Any current/future capex/capital investment/strategic investment?

Arihant Superstructures is planning significant capital investments focused on luxury villa projects, particularly the Arihant World Villa project, which involves a large land parcel of 76 acres at Chowk (25 acres acquired plus additional 51 acres). The company is investing around ₹250 crore in a resort and Gymkhana at Panvel, expected to yield a 15% IRR. There is a focus on developing constructed villas and annuity income assets, designed to provide strong IRR and long-term cash flows. The company expects to raise up to ₹500 crore via equity (enabling resolution renewed annually), with utiliz

Future growth expectations in sales/revenue/volumes?

The company expects a strong CAGR growth of 25% to 30% year-on-year in sales from current levels. FY24 pre-sales target is approximately Rs. 1000 crores, with FY25 expected to reach Rs. 1300-1350 crores. New inventory launches planned total around Rs. 900 crores for FY24. Collections from sold projects expected to be around Rs. 660 crores over 2-3 years. Unsold value of ongoing projects stands at Rs. 1117 crores. Sales velocity in Q1 FY24 was Rs. 245 crores, anticipated to continue throughout the year. Total developable area across projects is ~17 million sq.ft., with a projected t

Future growth expectations in earnings/operating earnings/profits/EPS?

The company expects pre-sales to reach Rs. 1000 crores in FY24 and Rs. 1300-1350 crores in FY25, indicating strong top-line growth. Consolidated revenue for Q1 FY24 grew 35% year-on-year, with EBITDA growing 38.7% and PAT up 45.8%. EBITDA margin slightly improved to 21.8% in Q1 FY24 from 21.3% in Q1 FY23, with PAT margin also rising. New premium projects like Arihant World Villa are expected to deliver EBITDA margins over 40%, higher than the average. The company targets average IRR of 30-35% and PAT margins of 20-25% on new projects, indicating sustainable profitability. Sales and c

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Arihant Superstructures LtdQ2 FY23Realty

Arihant Superstructures Ltd Q2 FY23 Earnings Call Analysis

Revenue, margin, capex, fundraise and order book outlook from management commentary.

Price: ₹255P/E: 25.3Market Cap: ₹1.2K 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 analysis

Revenue guidance

Category 2

→The company expects a strong CAGR growth of 25% to 30% year-on-year in sales from current levels.
→FY24 pre-sales target is approximately Rs. 1000 crores, with FY25 expected to reach Rs. 1300-1350 crores.
→New inventory launches planned total around Rs. 900 crores for FY24.
→Collections from sold projects expected to be around Rs. 660 crores over 2-3 years.
→Unsold value of ongoing projects stands at Rs. 1117 crores.
→Sales velocity in Q1 FY24 was Rs. 245 crores, anticipated to continue throughout the year.
→Total developable area across projects is ~17 million sq.ft., with a projected top-line of Rs. 9900 crores over 7 years.
→Approximately 75% of total sales expected within the first 5 years, balance thereafter.
→Villa segment and premium projects are expected to contribute higher margins and growth.

Margin guidance

Category 3

→The company expects pre-sales to reach Rs. 1000 crores in FY24 and Rs. 1300-1350 crores in FY25, indicating strong top-line growth.
→Consolidated revenue for Q1 FY24 grew 35% year-on-year, with EBITDA growing 38.7% and PAT up 45.8%.
→EBITDA margin slightly improved to 21.8% in Q1 FY24 from 21.3% in Q1 FY23, with PAT margin also rising.
→New premium projects like Arihant World Villa are expected to deliver EBITDA margins over 40%, higher than the average.
→The company targets average IRR of 30-35% and PAT margins of 20-25% on new projects, indicating sustainable profitability.
→Sales and collections velocity are expected to improve post external challenges affecting Q1 collections.
→Overall, the company aims for a CAGR growth of 25-30% in sales, supporting healthy earnings and margin expansion over the medium term.

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Fundraise plans

Yes

→The company has an enabling resolution to raise up to ₹500 crores annually, renewed each year, but no specific immediate fundraising is planned.
→Any new capital raised through this route would be primarily for acquisition of new projects, not for debt repayment.
→Current debt is considered sustainable, with ₹156 crores secured loan and ₹262 crores unsecured loan as of June 30.
→Debt reduction is planned through internal accruals and surplus cash flows from ongoing projects rather than fresh fundraising.
→The company will decide on the timing and amount of equity dilution based on the right opportunity, not on a specific schedule.

Order book

Yes

→The company has a developable area of approximately 17 million square feet.
→The total top-line expected from these projects is around ₹9,900 crore to be constructed over the next seven years.
→Approximately 75% of the sales (around ₹7,425 crore) are expected within the next five years.
→The remaining 25% will be generated in the subsequent two years (years 6 and 7).
→The unsold value of ongoing projects is approximately ₹1,117 crore.
→Collections expected from sold projects over the next 2-3 years amount to around ₹660 crore.
→The company aims for a CAGR growth of 25-30% year-on-year from current levels.
→Pre-sales guidance for FY24 is ₹1,000 crore, with FY25 expected to be ₹1,300-1,350 crore.

Capex plans

Yes

→Arihant Superstructures is planning significant capital investments focused on luxury villa projects, particularly the Arihant World Villa project, which involves a large land parcel of 76 acres at Chowk (25 acres acquired plus additional 51 acres).
→The company is investing around ₹250 crore in a resort and Gymkhana at Panvel, expected to yield a 15% IRR.
→There is a focus on developing constructed villas and annuity income assets, designed to provide strong IRR and long-term cash flows.
→The company expects to raise up to ₹500 crore via equity (enabling resolution renewed annually), with utilization based on opportunities; the villa project requires about ₹250 crore of this.
→New project launches worth ~₹900 crore are planned for FY24, including fresh projects at Shil Phata (Arihant Avanti) and others at Badlapur, Kharjat, Kalyan, and Panvel.
→Expansion of land bank to 217 acres (from 165 acres in March 2023) is complete, with all land planned for active development, not held idle.

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