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00:00Ajmera Realty, they came out with their business update for Q1 yesterday.
00:04They've seen a 36% rise in sales year-on-year.
00:10So, we're talking to the management today, Nitin Bhavisi, Group CFO is joining us
00:14to just give us a sense of whether they're on track for their annual guidance.
00:19Mr. Bhavisi, great to speak with you.
00:22I just want to understand that Q on Q, have you seen a bit of softness
00:28in the pickup of pre-sales growth and other valuations?
00:32Or is everything on track?
00:33Because I know you have a lofty target of a 5x growth number.
00:39Sure, very good morning.
00:42As we plot the number of 306 crore for this particular quarter, quarter 1 FY25,
00:48so we feel that we are absolutely on course of our annual guidance of 1350 for FY25
00:55and that too on the higher base of life.
00:58Last year FY24, we clocked 1017 crore of the sales.
01:03We see a good fraction on our ongoing projects and as well from the launches.
01:10So, there is a good response and the cycle looks very promising and deep from here on as well.
01:19What is the guidance outlook for FY25 that you're looking at overall in terms of sales and launches?
01:28So, for FY25, the sales guidance is 1350 crores.
01:34And for the launches, we have given the guidance of 8 projects to come,
01:401 in Bangalore and 8 in Mumbai location, having 1.9 million carpet area to sell
01:47and having the GDP of 4570 crore.
01:51So, that's more on the business side.
01:54As well, we have provided first time our guidance in terms of debt management also
01:59from 0.9x of the debt equity ratio, we aim to come down to 0.8x kind of a thing
02:08and that too despite having this aggressive business development activities.
02:13So, we feel very buoyant on our performances.
02:17Give us a sense of what is the strategic vision for FY25?
02:24Are you going to look at new geographies?
02:28Are you focusing more on redevelopment?
02:31What is the big picture there?
02:34So, as I said that 8 projects to come.
02:37So, that is the composition of our own land bank kind of a thing.
02:41And as well, the different nature of redevelopment like MADA redevelopment,
02:46society redevelopment and as well SRA redevelopment.
02:50The first launch which we did in quarter 1, this June quarter,
02:56was the SRA project which is at Pandup and we have seen a very buoyant response.
03:02Almost one-third of the sales book has come from the launch
03:05and 27% of the inventory of that particular project has been sold in this particular launch
03:12velocity.
03:13So, that's something which is very satisfying feeling as far as the performance is concerned.
03:23As regards to the overall business development guidance,
03:28we further gave the guidance of 3,500 worth of the projects to acquire in this FY25.
03:35And we are shortlisting the proposals on the table.
03:40And shortly we will come back once we have the proposal sealed in our favor.
03:46Mr. Bhavishi, good morning.
03:48Would you spend amounts of money to acquire land bank or would these large portion of your
04:00newer projects essentially be redevelopment projects or out of your existing land bank?
04:06Very good morning.
04:07And I would say that we know out of these eight projects,
04:12one project which is the MADA redevelopment, which is the outright buy
04:16from the Tata communication and on which we are going to spend
04:20the investment upfront kind of a thing.
04:22Rest of the projects either on our own land bank where we do not have to
04:27work out any investment and as well the redevelopment like
04:32society redevelopment and as well the Cesare, where there is, I would say the
04:38investment is spread over on the life cycle of the project.
04:41It is not upfront.
04:42So that is not putting any much of the capex pressure on us kind of a thing.
04:50Is there any risk, Mr. Bhavishi, of missing the guidance that you put out for, let us say,
04:57while you have put out an overall target over the number of years for FI25, is there a risk at all,
05:05do you reckon, in the MMR region or you think you will comfortably meet and exceed your guidance?
05:11In fact, post-COVID, we have been providing the guidance and we have been
05:17outbidding ourselves kind of a thing.
05:19Like in FY25, we had the sales of about 430.
05:23It doubled in FY23.
05:25Then after on that higher base, we had the 1017 crore in FY24 and now we are,
05:33we have provided 1350 as a guidance and we feel very, very confident.
05:38Given the sustenance sales, which is like the project like Manhattan, which is almost 80% sold
05:46and the good part is that in this particular quarter, out of the inventory available,
05:53almost 20% of that inventory sold in Manhattan.
05:56So on our sustenance sales also, we see good numbers coming to our books
06:02and as well on the launch side.
06:05We feel very, very confident that we will be achieving our guidance or we will surpass it.
06:11Just one last point, Mr. Bhavishi.
06:13Are you planning to raise any funds this year?
06:17So cycle is very, very promising and as well as our numbers unfold,
06:22it is definitely on a very, very, I would say exponential growth trajectory.
06:28So definitely that possibility is also on the table kind of a thing to raise equity as well.
06:35Okay.
06:35Any details you can add to that?
06:38The possibilities on the table, but a timeline to what extent, to what end, anything that you can add?
06:45I would say that would be a pretty ahead of time kind of a thing,
06:49but we are keeping our preparedness to that effect and we'll keep you updated.
06:54Okay.
06:54Okay.
06:54So fundraise is definitely on the table.
06:56Thank you so much, Mr. Bhavishi for speaking with us.
06:59We're speaking to the CFO of Ashmera Reality and there as we speak,
07:03Keystone Realtors has given their Q1 business update as well.