Q4 FY22 Results of Ajmera Realty and Infra India Ltd

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Ajmera Realty

Mumbai, 21 May 2022: Ajmera Realty & Infra India Ltd (BSE: 513349 & NSE: AJMERA), a leading real estate company with pan India and international presence, announced its quarter & year ended 31st March 2022 financial results today.

Commenting on the Q4 & FY22 performance, Mr. Dhaval Ajmera, Director – Ajmera Realty & Infra India Limited said:

“India’s real estate sector has shown significant improvement in every quarter of FY22, reinforcing growth momentum.  As the pandemic begins to wane across the country, we expect the real estate sector to continue positive growth over the next few years.

Today’s millennial homebuyer decisions are influenced by their need to upgrade to modern larger living spaces furthered by an upsurge in quality projects, lucrative offers from real estate companies and low interest rates on home loans. These, along with a significant change in work culture driven by hybrid working, enhanced hiring data led by tech companies and rising disposable incomes are some important factors that have improved the outlook for the sector. The Union Budget 2022-23 announcements such as digitisation of land records, increased allocation under PM Awas Yojna, PM Gati Shakti, are further expected to boost investments in this sector.

With a stronger demand for quality housing quarter on quarter, Ajmera Realty has delivered a strong performance in FY222. In line with the current demand during the year, Ajmera Realty has projected strong execution in its projects, coupled with greater revenue visibility.

All our advanced stage projects have been brought to OC stage with significant inventory being sold. Our project Greenfinity, has showcased ahead of schedule execution with a 22-storey superstructure completed in a short span of ~14 months. This is a self-funded project through sales subvention at a competitive interest rate. Our project Sikova, a boutique office development in Ghatkopar, Mumbai witnessed 50% of sales during the Covid-19 pandemic period, is now eligible for revenue recognition. We also strategically moved one of our commercial project Nucleus in Bangalore, from a cash flow generating revenue model to an outright sale model. We expect to accrue revenue of ~INR 800 crores from our existing projects in Mumbai and Bengaluru.

With a robust launch pipeline, we maintain sustained momentum towards our 5x growth plan, as we look forward to building on this momentum in next 3- 5 years. In line with our objective to grow exponentially, we plan to launch five projects in Mumbai and one project in Bangalore, during the FY23 & FY24, with a total revenue potential of ~INR 4,000 Cr and an estimated saleable area of ~2.8 msf. Of these, we have already launched Ajmera Manhattan, Wadala during the month of April 2022. This brings the total estimated revenue of ~INR 4,800 crores in the next 3-5 years from our future launches as well as existing projects.

In the coming years, the company also plans to integrate inorganic growth, through low capex acquisition in the form of JV / JDA / DA Model. Despite rising prices and the current geopolitical situation, we foresee the residential and commercial real estate outlook to remain optimistic with strong sales activity supported by continued dynamic policy support, high vaccination coverage, improving infrastructure and positive business environment.

Mumbai, 19 May 2022: Ajmera Realty & Infra India Ltd (BSE: 513349 & NSE: AJMERA), a leading real estate company with pan India and international presence, announced its quarter & year ended 31st March 2022 financial results today.

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Commenting on the Q4 & FY22 performance, Mr. Dhaval Ajmera, Director – Ajmera Realty & Infra India Limited said:

“India’s real estate sector has shown significant improvement in every quarter of FY22, reinforcing growth momentum.  As the pandemic begins to wane across the country, we expect the real estate sector to continue positive growth over the next few years.

Today’s millennial homebuyer decisions are influenced by their need to upgrade to modern larger living spaces furthered by an upsurge in quality projects, lucrative offers from real estate companies and low interest rates on home loans. These, along with a significant change in work culture driven by hybrid working, enhanced hiring data led by tech companies and rising disposable incomes are some important factors that have improved the outlook for the sector. The Union Budget 2022-23 announcements such as digitisation of land records, increased allocation under PM Awas Yojna, PM Gati Shakti, are further expected to boost investments in this sector.

With a stronger demand for quality housing quarter on quarter, Ajmera Realty has delivered a strong performance in FY222. In line with the current demand during the year, Ajmera Realty has projected strong execution in its projects, coupled with greater revenue visibility.

All our advanced stage projects have been brought to OC stage with significant inventory being sold. Our project Greenfinity, has showcased ahead of schedule execution with a 22-storey superstructure completed in a short span of ~14 months. This is a self-funded project through sales subvention at a competitive interest rate. Our project Sikova, a boutique office development in Ghatkopar, Mumbai witnessed 50% of sales during the Covid-19 pandemic period, is now eligible for revenue recognition. We also strategically moved one of our commercial project Nucleus in Bangalore, from a cash flow generating revenue model to an outright sale model. We expect to accrue revenue of ~INR 800 crores from our existing projects in Mumbai and Bengaluru.

With a robust launch pipeline, we maintain sustained momentum towards our 5x growth plan, as we look forward to building on this momentum in next 3- 5 years. In line with our objective to grow exponentially, we plan to launch five projects in Mumbai and one project in Bangalore, during the FY23 & FY24, with a total revenue potential of ~INR 4,000 Cr and an estimated saleable area of ~2.8 msf. Of these, we have already launched Ajmera Manhattan, Wadala during the month of April 2022. This brings the total estimated revenue of ~INR 4,800 crores in the next 3-5 years from our future launches as well as existing projects.

In the coming years, the company also plans to integrate inorganic growth, through low capex acquisition in the form of JV / JDA / DA Model. Despite rising prices and the current geopolitical situation, we foresee the residential and commercial real estate outlook to remain optimistic with strong sales activity supported by continued dynamic policy support, high vaccination coverage, improving infrastructure and positive business environment.