Ashiana Housing - Banking on Tier II and III towns!

Another good set of booking nos from Ashiana, they have been able to increase realizations and get volume growth. Reported nos look muted due to lower deliveries. They are doing very well as shown in sales of all 224 flats in Ashiana Amarah project in Gurgaon at launch (243 cr.). Concall notes below.

FY23Q2 concall:

  • Will have 1-1.5mn sq.ft launch in H2FY23. Have four more projects in pipeline for FY24
  • Malhar + Anmol: Low margin projects. Other projects are at significantly higher margins
  • Ashiana Amarah: Launched Phase I (224 units) and sold all of it (243 cr.). Will be booked in Q3FY23. This kind of sales implies investors are back in the market
  • Negative cashflows this quarter was due to front ending of expenses and pre sales happening towards end of quarter. It’s a QoQ issue
  • On economic basis (not reported basis), will reach double digit ROEs in FY23
  • Gurgaon realizations have now crossed Rs. 6000/sq.ft
  • Current land and projects is for 4-5 years of inventory

Disclosure: Invested (position size here, no transactions in last-30 days)

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