Ajmera Realty Q1 2023 Concall Highlights

Operational Highlights:

• Sales stood at INR 400 cr which included around 354 cr from Ajmera Manhattan.
• The collections stood at INR 210 cr. 
• Company record revenue of INR 55 cr, with EBITDA of INR 18 cr. EBITDA margins stood at 33%.
• PAT of INR 12 cr and 21% PAT margins.
• Average realizations increased from Rs.17,734 to Rs.25,411.
• Good demand despite challenges in macro markets, despite challenges and higher input costs.
• Greenfinity and Sikova Project contributed to this quarter’s revenue which includes first time revenue recognised from Greenfinity.
• Debt reduced by INR 25 cr in this quarter from INR 825 cr to INR 805 cr, Debt ratio stood at 1.12x.
• Juhu and Codename Ghatkoper will be launched in the next few quarters.
• Management will look after inorganic growth through JV and JDA projects. Some stress projects are under discussion form various financial institutions and also looking for redevelopment projects.

Project updates:

Ajmera Greenfinity, Wadala:

• Affordable Housing project with around 20% EBITDA margins.
• Revenue of Rs.7 cr recognised for the first time from Greenfinity project under POCM(Percentage of Completion Method).
• Area of 3,592 sq. ft sold with sales value of INR 9 crores. Greenfinity will be completed by December 2022.

Ajmera Sikova:

• Commercial project at Ghatkopar with around 50% sold units. EBITDA margins for this project stands at 20%
• Sales and collection for this quarter stood at INR 20 cr and INR 33 cr, with area sold of around 10,977 sq, ft.

Ajmera Manhattan:

• Launch of Manhattan saw a great response from buyers, with sales in INR 354 cr in  Q1 FY23 with sold carpet area of 125,565 sq. ft. Collections for the project were at INR 79 cr.
• Realization for this project stood at  INR 28,169 per sq. ft.
• EBITDA margin for this project stands at 40% as the project is being developed on Ajmera’s own land and also its premium of around INR 180 cr being paid during concession period by Maharashtra Government.
• The project is partly funded by debt of around INR 350 cr.

Redevelopment project of Fairyland Co-operative Housing Society, located at Juhu :

• This project primarily focuses on 3 & 4 BHK apartments.Old buildings are demolished, CC is received for this project and would soon apply for RERA.
• Sale value: 150 cr
• Cost of project: 110 cr
• Number of units: 39 (Only 15 saleable to new buyers)
• Total  area:  30,482 square feet.

Codename Ghatkopar:

• Shree Yogi Realcon, a 100% subsidiary of Ajmera Realty & Infra India (ARIIL), has acquired property from Tata Communications. The plot is owned by MHADA by executing the tripartite agreement.
• The acquired land is spread across 1,721 sq.mt., where a residential property is to be constructed with a potential carpet area of ~95,000 sq ft and estimated to generate a sales value of Rs 250 Cr over three 3 years with conservative price points.
• The superstructure will constitute two wings in the configuration of 2, 3 and 4 BHK, having ~100 units with all the modern lifestyle amenities. The company has applied for permissions and the project will be launched in the next 2- 3 months.

Bahrain Project:

• The Bahrain project is sold and will be developed by Grnata Real Estate WLL ,and will get an area against the sales money due. Will get 10,000 square meters of area against that which will be valued at INR 200+ crores.
• The RCC and superstructure of the project is completed and finishing work is going on. Will soon be receiving the sales proceedings.
• Ajmera Realty & Infra India Ltd and Mayfair Housing have sold their 50% stake in the Golden Gate Project to Bahrain-based Grnata Real Estate WLL for a total of Rs 240 crore ($33 million).
• This comprises Rs 40 crore in cash and an allotment of constructed apartments with an estimated value of about Rs 200 crore. The project is estimated to be completed by December 2022.
• This JV owned a 50% stake in GG Developers WLL, which is building the project. Bahrain-based Kooheji Golden Gate, owned by the Al Kooheji family, held the balance. Located in the heart of Bahrain Bay, the project comprises 746 luxury apartments spread across two towers of 45 and 53 levels.
• The project was announced in late 2018 and construction work was to be finished within three years. However, the project suffered a jolt late last year when Bahrain’s Real Estate Regulatory Authority suspended its license, saying the developer violated rules and failed to fulfill its legal obligations towards the buyers.

London:

• Projects are completed, some projects are being sold. Time lapse between sales finalization and closure thus will receiveINR 80 cr in Fy 23

Demerger:

NCLT approvals are left to proceed with the demerger. 3 million development potential at wadala. Land is already owned by ajmera