Earnings Call Transcript Q3 9M FY 25

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SEC/ARIIL/BSE-NSE/2024-25 Date: February 10, 2025

To, To,

The Manager, The Manager – Listing,

BSE Limited National Stock Exchange of India Limited

Phiroze Jeejeebhoy Towers, 5th Floor, Exchange Plaza,

Dalal Street, Bandra Kurla Complex, Bandra (East)

Mumbai – 400 001 Mumbai - 400051

Script Code

513349 Script Code: AJMERA

Sub

Transcript of the Earnings Call

Dear Sir/ Madam,

Pursuant to Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure

Requirements) Regulations, 2015, enclosed herewith a copy of the Transcript of Earnings Call held on

February 4, 2025 on the Unaudited Standalone & Consolidated Financial Results of the Company for the

Quarter and Nine Months ended December 31, 2024.

The audio / video recording and transcript of the presentation are available on the website of the Company viz. www.ajmera.com.

Kindly take the same on record.

Thanking You,

Yours faithfully,

For AJMERA REALTY & INFRA INDIA LIMITED

Encl

As above

MANAGEMENT

MR. DHAVAL AJMERA — DIRECTOR — AJMERA REALTY &

Moderator

and 9 Months FY 125 Eamings Conference Call. We have with us today M. Dhaval Ajmera, the

Dircctor of the company; Mr. Nitin Bavisi, the Chicf Financial Officer; and Ms. Sonia Agarwal, the Senior Manager for Investor Relations.

Please note all participant lines will be in the listen-only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star then zero on your touchtone phone.

Please note that this conference is being recorded.

I now hand the conference over to Ms. Sonia Agarwal. Thak you, and over to you, ma'am.

Sonia Agarwal

Thank you. Good vening, everyone, and a very warm welcome to you all. On behalf of the company, I would like to thank you all for participating in Ajmera Realty & Infra India Limited

Eamnings call for the third quarter of FY '25. The call will commence with the opening remarks by Dircctor, Mr. Dhaval Ajmera and will be followed by the business performance discussion by our CFO, Mr. Nitin Bavisi.

We have already shared the operational updates of the quarter in the second week of January

2025. The investor presentation and the press release based on the financial results adopted by the Board have been uploaded on the stock exchange website and can be downloaded from our company website.

Please do note that some of the statements in today's discussion may be forward-looking in nature, reflecting the company's outlook and may involve certain risks and uncertaintics that the company may face. I would now like to hand over the call to our Dircctor, Mr. Dhaval Ajmera.

Thank you, and over to you, sir.

Dhaval Ajmer Very good evening, everyone. Thank you, and welcome to our imvestors carnings calls. I would just begin the discussion by sharing the overall scotor updates and thereby taking over to you for our company updates as well.

Just to give you an overall feel about the current residential and the real estate sector and especially the residential seotor, itis looking resilient. Market s being very favorable. Economic conditions are fine, and there has been an increased preference what we have seen, at least especially in citics like Mumbai, Delhi to have larger spaces of homes, and that has been seen a great robust response in many of the projects of different developers.

And obviously, the govemment initiatives of- - are aiming to boosting homeownership and plus now this year's budget which is looking positive in temms of the liquidity coming in the market with the enhanced capacity for the income tax and ofher bencfits over and above that of the increased allocation of money for the PMAY schemes, which further sets a solid foundation for a long-term growth in the housing sector.

Mumbai has been one of the witness for the largest property registrations happening over the last 13 years -- has been a very positive trend. And despite being modsrate in certain regions, T

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Ajmera Realty & Infia India Limited

Imee” February 04, 2025 think the overall segment -- overall market remains very buoyant and positive. And we are also looking positive in terms of with this current market scenario and looking to attract more customers and buyers with our new projeets, which will be coming our way.

There has been a significant reduction if we see in the unsold inventory overall in the market, which has been a healthy balance between supply and demand, while the stable interest rates continue to make home loans more accessible to buyers. These factors position cstablished real estate players such as oursclves to capitalize on the momentum of the market.

Additionally, technological innovations are transforming the sector with developers increasingly leveraging digital tools for enhanced customer engagement, sales processes, construction and every other projects reports, ctestera. With these promising trends and well positions are well positioned to scize upeoming opportunitics and continuing delivering sustainable valuc to our stakeholders.

Coming to our project updates and our company updates, I must say I'm very happy that during the 9 months period, all our projects have been performing really well. We are increasingly closer to our deliveries of many of our projects in the upcoming quarters and which is significantly ahead of the RERA timelines given. Manhattan, our flagship project, Ajmera

Manhattan in Wadala. We are very proud to say that we are 90% of its inventory sold out. And as a result of this, we are very soon going to launch anew projeet. The approvals are already on its place, and we are hoping to get that soon.

The project s also progressing substantially with both the towers, which is Tower A and Tower

B at somawhere around 14 and 15 levels of construction after finishing the basements and the podiums. The next one is Ajmera Greenfinity, which is also two third sold from its inventory and the construction is also progressing well ahead, where we are atabout the seventh level, and we have another 22 -- tofal 22 to go.

Our premium segment, Ajmera Eden in Ghatkopar has been completed with the RCC structure and 85% of its inventory is sold. Ajmera Prive, our redevelopment project in Jubu huxury redevelopment is progressing rapidly, hoping to complete this project in the couple of quarters

- next couple of quarters, and we are looking at an advanced delivery of the project and where we are already two third of the inventory sold over there.

Furthermore, our project, Ajmera Vihara in Bhandup which was launched in May 2024, has successfully sold more than haloff i ts inventory and currently at an encouraging stage to start construction and have progressing in construction also significantly well.

Moving on to Bangalore, our segments of Lugano and Florenza, where the projects are almost sold out with a very, very less inventory left. It is expected to be delivered over the next 2 quarters by quarter 2 of next fiscal year, we are hoping o give the deliveries for the project.

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Ajmera Realty & Infia India Limited

Imee” February 04, 2025

Ajmera Iris in Bangalore, our recently launched project, where we have sold more than 50% of our inventory within 2 months of its launch, and we have also started construction. And we are hoping by the time we reach ground level, we should be almost sold out. So that's where we arc heading towards the sales in all our projects.

The first 9 months were very, very promising for us in FY 25, and our recent launches has demonstrated strong market acoeptance, underscorintghe success of our strategies. coupled with our business development ficled by heavy cash flow from the recent concluded preferential issuc have enabled us to pursuc aggressively growth initiatives and reduce debt in a significant way.

As a result of which we have added about a few projects, which is giving a total GDV of

INR2,450 crores with an expected sales velocity of one million. This is what has been added over the last 9 months.

Looking ahead, we are well prepared with the launch of our six projects in the next 2 quasters, collectively giving us about 1.7 million square feet with a GDV of INR 4,300 crores. These initiatives position us strongly in the upcoming calendar year, which promises existing growth prospects. This is some of our highlights of our company and the scctor.

Now I would like to hand over to our CFO, who will walk you through the performance highlights of the company. Thank you.

Thank you, everybody, for joining us. Before we move on to the Q&A session, allow me to

Nitin Bavisi

summarize the compelling operational and financial performance we have delivered for quarter

3 and 9 months FY '25.

Starting with operational performance for the quarter, our sale arca increased by significant 59%

Y-o-Y basis, reaching to 165,000 plus square feet. Our sales value saw almost 7% Y-0-Y growih totaling to INR 270 crores. Our collections reached INR 167 crores, which is also a 10% Y-o-Y inerease, primarily driven by the sustained sales momentum and fast track excoution of the projects.

Adheringt o the financial numbers, our total revenue stood at INR199 crores. Our EBITDA at

INR69 crores, reflecting 11% Y-o-Y increase, resulting in EBITDA margin of 35%. Our PAT stood at INR33 crores, marking an 11% Y-0-Y increase with PAT margin at 17%. Ajmera

Greenfinity became the revenue cligible project in this particular quarter 3 FY '25.

Moving on to our performance for the 9 months ending December 2024. Our sales value reached

INR830 crores, marking 14% Y-o-Y growth with the sales area touching 4,09,000 plus square feet, also up by 14% Y-o-Y basis. Collections stood at INR464 crores, up by 25% Y-o-Y.

Revenue for this period was INR599 crores, representing 27% increase Y-o-Y basis.

Our EBITDA was INR200 crores, up by 42% Y-o-Y and an EBITDA margin of 33%. Our PAT stood at INR102 crores, increasing 37% Y-o-Y, resulting a PAT margin of 17% and happy to

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Ajmera Realty & Infia India Limited

Imee” February 04, 2025 bring the fact that during this 9 months, our PAT has almost equalized that of the entire financial year of FY 24,

I'm also pleased to inform you that following our equity raise, the company has successfully reduced its debt by about 14% in the last 9 months, amounting to INR107 crores, thercby improving the debt-equity ratio to 0.57x:1.

The weighted average cost of the debt remains stable at about 12.22%. With the OC reccived and ongoing project ~ ongoing portfolio, we have now revenue visibility of INR1,700-plus crores, Additionally, our projects in launch pipeline are estimated to contribute about INR4,300 crores.

So as a result, the total revenue visibility stands stronger than ever at about INR6,000-plus crores, The estimated net cash flow pretax post debt from OC received and ongoing projects is expected about INR7 14 crores.

‘With this concise summary of business highlights and financial performance, I now invite your questions and look forward to further interactions. Thank you.

Moderator

First question comes from the line of Dixit Doshi from Whitestone Financial Advisors Private

Limited.

Diit Doshi

My first question is regarding the Wadala launch. So by when you are expecting because in opening remarks, you mentioned that we are still awaiting some approvals?

Dhaval Ajmera

Yes. So approvals are already in place. We've got some approvals. We've already started because there are a long list of approvals and some things arc underway. So hopefilly, in the next few months, we should be able to launch this project.

Dixit Doshi

So you expect it in Q4 or it might slip into Q12

Dhaval Ajmer Well, our endeavor is definitely to launch in Q4, and thatis what we are pushing to, just crossing fingers that approvals don't take a litfle further away, but we should be able to launch. Right now, our all endeavor is to launch this in Q4.

Dixit Doshi

Okay. My second question is regarding our Kanjurmarg project. So there are 2, 3 questions. So firstly, I understand that we have to build the police housing also on that 11 acre where we are starting our projects. So how much square feet we will have to build? And what will be the cost of that?

Dhaval Ajmer So we have to build around 1.5 lakh square fect roughly, give or take, we have to build and give it to them. And that project, overall, our estimation is about INRS0 crores to INRG0 crores on construction and ofher approval processes. Plus there will be other costs for infrastructure and cverything, which will -- this I'm particularly talking only for the police housing. As far as approvals are concemed, we've already got the necessary approvals and construction. We are

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Ajmera Realty & Infia India Limited

Imee” February 04, 2025 awaiting a few final last log of approvals to come in, and we should be able to start that construction very soon.

Okay. Andso inthis 11 acre, we have planned, I think, 4 lakh square fect of our projeet. So apart

Dixit Doshi

from this police housing, this 4 lakh square fet will be the only project or this will be just Phase

1? Imean, how much would be available for us to sell in this 11 acre?

Dhaval Ajmer So firstly, it is 7 acres and not 11 acres. That is our thing. We have 11-acre parcel over this side, out of which 7 acres we are doing this thing. Andin that 7 acres, we have about 1 million square fect of sales coming in overall, out of which the first phase is 4 lakh square fect. And this entire

1 million square feet is exclusively for us o sell.

Just to add to your question regarding the cost aspects kind of a thing, it is a 1 million square

Nitin Bavisi

fect and 4 lakh square fect, which is we are endeavoring as a first phase kind of a thing. And overall, like we arc looking at a project level retum kind of a thing, almost on the upwards of

35%. And it will encompass on both the phases, the layout and as well infra and as well the police housing, which is the obligations of that particular land parcel is going to be absorbed within this 7 acres land parcel.

Okay. So all the -- after considering you are saying all the cost willb e upwards of 35% what?

Dixit Doshi

Yes. That is the project level return, yes.

Nitin Bavisi

Okay. So that 35% you are saying EBITDA margin, right?

Yes.

Okay. And so just wanted to understand one thing. So we do track Kanjurmarg's approvals on

Mumbai DCR website. So I think the last update was on August 2024. Sohow confident we are of getting the approvals by Q12 And just wanted to understand, is this the right place o track the project?

Dhaval Ajmer So yes, number one, itis the rightplace to track the project. Number fwo, we - see, what happens is if you look at the online approval, we will probably see a police housing approval also in place and where we got the CC of the project for the police housing seetor per sc.

Now as far as all our other approvals for our free sale components are concemed, we arc finalizing the plan. And also recently, the approvals in terms of the NGT orders and theapprovals related to that is which is hindering the progress in terms of approvals, Where we are awaiting some clearances to come, and then we can immediately get on to this process. So we are very confident that over the next few months, we shall be through with this and we'll get the approvals.

And one last clarification on this. So in respect - so like this police housing, we have to build,

Dixit Doshi

but the approvals will not wait for us to complete the police housing project, right?

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Dhaval Ajmer No. Wewill getthe entire approval. Only our OC and a worst-case seenario, if I have not finished the police housing, then my OC for the building, that the completion certificate, last occupation certificate will be stuck. Otherwise, cverything will be in order.

Okay. Both things can work parallelly.

Dixit Doshi

Dhaval Ajmer Yes, absolutely.

Okay. One last question, I think in our upcoming project slide, we have removed Yogi Nagar

Dixit Doshi

project from Q2. So if you can just update on that.

Dhaval Ajmera

So we -- there are certain internal hurdles which are coming for that project with related to the consensus coming from all the socistics, stestera. So we just thought that till the time everyone is in one order and place where they are -~ majority of them are - soWwe are not -- we've removed it right now, but we will - we are very confident in the next few quarters, it will come back.

The next question comes from the line of Saurabh Sadhwani from Sahasrar Capital.

Moderator

So continuing on the Kanjurmarg project. So we have any update on the launch. You said that

Saurabh Sadhwani

you would be able to do it in a few months. So why - not why, butis there any ofher hindrance apart from the approvals?

Dhaval Ajmera

No, absolutely not. If you see the approval process is also not in hindrance. There is a process which we need to follow. As I said that there is a reservation of police housing in that plot and we've already got the CC for that - the commencement certificate for that police housing. So that one stage of approval is done.

Now the next stage of approval is the approvals of our plans in terms of for which we require fo gt environment clearances and stcetera, where we've already applied. We've got the first level cleared. Now we have to o the second level clearances and all the other minor, minor processes.

Soit's - what do you call, if's a process which we've started. And usually, this takes about 5, 6 months to complete, and that's where we ar.

Okay. So we could expect a launch in Q1 of FY 26, right?

Saurabh Sadhwani

Dhaval Ajmer We arc envisaging that.

Okay. And sir, about the land deal in South Murmbai,is there any update on that?

Saurabh Sadhwani

Dhaval Ajmer Nothing as of now. We are still working on that process to get some offers on the table, while discussions are on, but nothing very concrcte.

Somay Lask why the progress isa little slow on that front?

Saurabh Sadhwani

Dhaval Ajmera

Well, we've not honestly pushed out to complete because if we don't get the kind of offer what we want, we do not want to just go ahead and sell it. But we are progressinga little slow. Imean,

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Ajmera Realty & Infia India Limited

Imee” February 04, 2025 not slow, but we are not pushing it because our cash flows are not dependent on that sale, but we have other --we have been able to leverage our cash flows in terms of our loans being diluted to a great cxtent. So we are not like heavily dependent on this. If we get the right value, we scll.

Otherwise, we'll hold it.

And sir, for the whole year, I think the launch that you had expected were around INR4,200

Saurabh Sadhwani

e es.

Dhaval Ajmer

Yes.

So what is the update? And what is next in that?

Saurabh Sadhwani

Dhaval Ajmer So that launch pipeline remains the same. We have, in fact, increased now to INR4,300 crores as an overall thing. And the progress for these launches are currently underway, where, as Isaid, a lot of approvals are under process. In the next few months, maybe this quarter and the coming quarter, we'll have all these launches coming in what you call the system.

Sossis, for clarity, this INR4,300 crores were -- was the plan for FY 125 or calendar 25

Saurabh Sadhwani

Sowe have given the quarter of the guidance kind of a thing, quarter 4 FY 25, which is the 2 projects and happy to bring the fact that Lakeside Paradise being thenew entrant in this particular launch list and for which we have already receivetdh e RERA certificate and which is going to be the event of this current quarter, March '25. And Wadala, we are very aggressively working to bring it within the March timelines. And rest of the 4 projects are very much within the quarter

1 FY 26, which is by June 25.

So given all this, you maintain the INR1,350 crores presales guideline for FY 257

Saurabh Sadhwani

Dhaval Ajmera

Yes.

The next question comes from the line of Darshil Jhaveri with Crown Capital.

Moderator

Darshil Jhaveri

Sir, just wanted to know that right now, like we are near our FY 25 guidance. So I just want to know any guidance you want to give for FY 126 in terms of presales or sales volume that we are planning?

Dhaval Ajmer Well, not so soon. We are working on those numbers right now. And we arc as excited as you are, but we will come back to you towards the end of the financial year, and we'll give you the exact numbers.

Okay. Fair cnough, sir. And just wanted to also ask a bit about how do you sec the Mumbai real

Darshil Jhaveri cstate market currently, like just any sort of challenges that we sce or slowdown? Or how do we just see the market currently in the near term?

Dhaval Ajmer Sce, personally, if you ask me, if you look at our projects where we have launched in the Mumbai market, we are not secing slowdown. If T have to just give you an overall perspective, we have

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Ajmera Realty & Infia India Limited

Imee” February 04, 2025 seen numbers in terms of sales velocity being good, decent enough for us to continue with our sales progress.

Number two, if I have to give you an overall perspective also, maybe people over the last probably December, mid to now were a little cautious in terms of the way the stock market was also behaving and also overall sentiments of the market. That's why they were cautious. But still, we were secing volumes happening. Thatis why it is evident from the registration number, which has come out by the government, highest cver in January.

And now what I se is with the budget and the liquidity of the income tax availability now, which is up to INR12 lakhs, I think this will be a great boost in liquidity. And hoping the new RBI policy or the rates should be - there should be a dip in that. This will also bring in a better liquidity in the market.

So I think overall, sentiments are positive. People were a lttle bit cautious, but my sense s that it's just a temporary thing. But otherwise, with all these factors coming in, I think the market wil still continue to have good numbers.

Moderator

The next question comes from the line of TT Patel, who is an investor.

Congrats on the set of mmbers you've achieved for the preceding months. The focus of my

TT Patel

question is on the redevelopment project you are undertaking jointly with Rustomiee. I fust wanted to know if the launch for that project is on track as committed in the last mesting.

Dhaval Ajmera

Yes. We are underway of the basic approval for the project. Partly, we've already got, part is under progress right now and our endeavour is to launch this by the first quarter of next financial year, that is FY '26. So between, let's say, April to June is what we endeavour to launch this project.

The next question comes from the line of Raji Pathak from GeeCee Holdings.

Moderator

Rajiv Pathak

Just one follow-up on the presales guidance that you reiterated. So this INR1,350 crores of FY

25 presales, how much could that translate into the top line revenue and the EBITDA for the full year, if you can just guide us for that?

So typically, our sense that the presale numbers having achieved the 25% progress on the project

Nitin Bavisi

on the cost spending basis and all other critical approvals and other conditionalities for the project to become revenue cligible. So typically, like it takes almost 4 to 5 quarters and then after it becomes cligible.

And depends on the specific nature of the cost spending kind of a thing, if there is too much of the cost spending on the approvals and something of that, which is front-loaded kind of a thing, this process becomes very accelerated one kind of thing. So having those conditionalities met and the project becomes cligible for the revenue recognition.

Rajiv Pathak

Okay. And we'll be able to maintain this 33%, 34% kind of the EBITDA margins, right?

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Yes, because like we have been having the good sales run-up kind of a thing, faster exceution of

Nitin Bavisi

the projects, plus the recent equity, which is raised kind of a thing on which we have delevered our balance sheet kind of a thing. Those factors are like helping us to go further more cfficient.

And we expect that on a going forward basis also, margin is sustainable.

The next question comes from the line of Saurabh Sadhwani from Sahasrar Capital.

Moderator

Sir, just one clarity on the Kanjurmarg project. So I believe you started working on that project

Saurabh Sadhwani

2 quarters ago. Is that correct?

Dhaval Ajmer So we are doing all the infra-related work, and that is what we've started, not linked with the construction per se of the buildings, thats not what we started, but related to land where some roads arc to be laid or boundaries are to be fixated, all those basic preparations of the work because the land being so large, you need at least 6 to 8 months for it to come to some basic thing.

So that's what we've already started, and we've reached to a significant level. I think those will be ongoing processes for the land to have proper layouts and roads, ctectera, which we are doing currently.

Sir, was it not possible to apply for the approvals while doing that infrastructure?

Saurabh Sadhwani

Dhaval Ajmera

Of course, it is possible, and that is what we've done. But there were certain hindrances in the approvals related to the authority like the recent - there was, if you know, the NGT order, which had stayed the approvals related to the environment clcarances.

And that is why we were not able to put up the processes - put up the files for approvals in any of these projects because somewhere it was in their definition, we would not be able to apply.

So it's a little technical work. Thankfully, that has just got resolved recently as of 2 days ago, and we will now put up for our environment clearances.

Moderator

The next question comes from the line of Dixit Doshi from Whitestone Financial Advisors

Private Limited.

Sir, any update you want to share on the land which we have demerged for the Wadala where

Dixit Doshi

we arc planning something commercial?

Dhaval Ajmer So our planning on the back end is already on, and we should be able to finalize all our planning for those projects now. But at the same time, we arc also speaking to a few partners who are interested into joint hands. So we arc just waiting some tic-ups to happen soon, and then we'll take this up.

As far as the approvals and all those are concerned, it is a matter of time. If's not something which is going to - I mean, obviously, it will take its requisitc time, which is required about 5,

6 months but that's a matter of process. But at the same time, there are a few partners with whom

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Ajmera Realty & Infia India Limited

Imee” February 04, 2025 we are speaking to are interested in doing a JV, all that process. If we get something in hand, we'll o it. Otherwise, we'll take this up in our own hand and start the construction.

Okay. But there is nothing like since we arc launching aresidential in Wadala, so we'll not wait

Dixit Doshi

for that project to get success, like this is a different thing.

Dhaval Ajmer No. This is absolutely different than that, We will be having 2, 3 projects parallelly working. So that has got no relation with residential or this.

Okay. And I think we have started some soft calls to the customers for the upcoming Wadala

Dixit Doshi

project. So if you can just broadly mention how s the response we are getting for a prelaunch?

Dhaval Ajmer Well, we're just calling our customers right now to have - because with the kind of databasc what we have and people inquiring, we just tell them that we are coming up with an upcoming project very soon, if you wouldb e interested. Imean, we can't officially - we can't do it because we don't have RERA. But what we try to do is just get their interest in align for the project. And once we know that these are very list of hot customers, which we can immediately target the moment I have RERA. So that's something what we are doing currently.

And how is the response?

Dixit Doshi

Dhaval Ajmera

Response has been fairly good. We are hoping to -~ our endeavour is to clock good numbers when we have RERA in hand. They have been pretty strong and looking at having bookings done the moment we have all the requisite approvals. So we are also awaiting. But overall, there has been a good demand, and it looks great in the coming quarters.

Ladics and gentlemen, as there arc no further questions from the participants, I now hand the

Moderator

conference over to Mr. Nitin Bavisi for closing comments.

Thank you, everybody, for your very active participation, and we look forward to interactions further with one of you. Until then, stay safe, stay healthy. Thank you.

Thank you. On behoaf lAjfmer a Realty & Infra India Limited, that concludes this conference.

Moderator

Thank you for joining us, and you may now disconnect your lines.

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