Another good set of nos from Ashiana, they have been able to maintain 400 cr.+ quarterly sales runrate and are guiding for 1500 cr.+ presales in Fy24. In this cycle, they are focusing much more on ROE (than volume growth). Concall notes below.
FY24Q1
- Ashiana Amarah Phase 2 launch was sold for 290 cr. (224 units; 3.77 lakh sq.ft). Will launch Phase 3 in Q4FY24
- FY24 launch: 5 projects to be launched (Ashiana Amodh in Pune was launched in July; 2 in Chennai and 2 in Jaipur)
- Ashiana Malhar: Have sold 1.8 lakh sq.ft (out of 2.6 lakh sq.ft) launched in August 2022. Price increase has been lower than what they wanted (around 200-300/sq.ft); realizations increased from 5200 to 5400-5500/sq.ft
- Ashiana Amodh: Have seen very good traction and were able to get higher realization, given its their first senior housing project in Pune
- Saw very good sales traction in existing projects in July. Have pipeline of 1 cr.+ sq.ft (excluding Kolkata and Milakpur)
- Don’t want to build a huge pipeline of land as focus is on improving ROE
- In last cycle, they did mistake of going for volume and topline growth. In this cycle, they want to optimize ROE and not focus on volume growth
- Economic ROE in FY23 was in low double digit and should achieve high teens in FY24
- Want to reach 10-12% PAT margin, and with benefits of operating leverage to 15% levels in a good cycle
- Aiming for 250-300 cr. pre-tax operating cashflow
- In last 18 months, land prices have appreciated faster than improvement in flat prices. However, all of Ashiana’s deals since 2020 has been at higher margin vs historical margins
Disclosure: Invested (position size here, sold shares through participation in buyback in last-30 days)