Ashiana had their second best quarter since 2016. Demand seems to be very strong, and management is confident of reaching 1500 cr. presales in FY24. Project pipeline remains strong
FY24Q2
- Current pipeline: 12 lakh sq.ft in ongoing projects + 84 lakh sq.ft in future projects + 21 lakh sq.ft in land (excluding Milakpur and Kolkata) ~ 117 lakh sq.ft
- Annual sales volume run rate should increase from 25 lakh sq.ft (12.45 lakh sq.ft sold in H1FY24)
- Greenfield projects: 6 (3 in Jaipur, 1 in Gurgaon, 2 senior living in Chennai). 4 will be launched in remaining FY24 and 2 in FY25
- Ashiana Amodh (Pune, senior living): Successful launch (27% of Phase 1 inventory sold this quarter)
- Ashiana Shubham (Chennai, senior living): Last phase launched (56% of inventory sold this quarter)
- Ashiana Prakriti (Jamshedpur): Phase 2 launched (76% inventory sold this quarter)
- Jaipur: Acquired new land in Jaisingpura (11 lakh sq.ft). Its near the Ashiana Ekansh project
- Construction: Will do 2-2.2mn sq.ft in FY24 (0.9 mn sq.ft constructed in H1)
- Larger focus will be on increasing prices
- Will not get into horizontal plotted development
- New Gurgaon prices have increased 2-3x over last 5 years (Ashiana Amarah region)
- Channel partners in NCR add a lot of value as there are lots of projects available in this region. This is not the case in Jaipur or smaller cities
- Senior living is gaining a lot of traction
- Economic ROE will cross 15% in FY24 and seem sustainable (and probably higher than 15%)
- FY25-27: Plan to do cumulative delivery of 50 lakh sq.ft (2600-3000 cr. revenues)
- Kid-centric projects: Planned launch of one project in Gurgaon and one in Jaipur. First sign is evident in Ashiana Umang.
Disclosure: Invested (position size here, no transactions in last-30 days)