Ajmera Realty & Infra India Limited (NSE: AJMERA) Q4 2025 Earnings Call dated May. 14, 2025
Corporate Participants:
Unidentified Speaker
Dhaval Ajmera — Director
Nitin Dineshchandra Bavisi — Chief Financial Officer
Analysts:
Dixit Doshi — Analyst
Saurabh Sadhwani — Analyst
Unidentified Participant
Divyam — Analyst
Yash Golechha — Analyst
Presentation:
Operator
Ladies good day, ladies and gentlemen, good day and welcome to the Ajmera Realty and Infra India Limited Q4 and FY ’25 Earnings Conference Call. As a reminder, 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 the star then zero on your touchstone phone. Please note that this conference is being recorded. I now hand the conference over to Mr Rajiv from Partners. Thank you, and over to you, sir.
Unidentified Speaker
Yes, thank you. Good evening, everyone, and a warm welcome to you all. On behalf of the company, I would like to thank you all for participating in Ajmera Realty and Infra India Limited’s earnings call for the 4th-quarter and financial year 2025.The call will commence with the opening remarks by Ajmera Realty Director, Mr Dhaval and will be followed by business performance discussions by CFO, Mr Nitin. We have already shared the operational updates of the quarter in the second week of April 2025. The earnings presentation and press release based on the financial results adopted by the Board have been uploaded on the stock exchange website and can be downloaded from Ajimera Realty’s company website. Please do note that some of the statement in today’s discussion may be forward-looking in nature, reflecting company’s outlook and may involve certain risks and uncertainties that the company may face.
I would now like — I would like to hand over the call to Realty’s Director, Mr. Thank you, and over to you, sir.
Dhaval Ajmera — Director
Thank you. And thank you for joining us today. I would like to give you — I would like to begin by giving you some discussions about the overall real-estate update and sector updates and thereby — thereafter taking you to our company updates. You know the financial year ’25 has been a very robust year, I would say, obviously for India despite these global tensions and trade tensions are coming across, the economic momentum has been quite robust for India.
We have seen great strategic — strategic tie-ups for India, UK, free-trade, a record-high exports to US obviously, the tariffs has been a challenge, but then it still continues to see a rate as per last year has been relatively good. The overall economic outlook also remains very optimistic with GDP being GDP growth controlled Inflation and RBI rate cuts to further stimulate demand in real-estate sector. In the financial year ’25, India’s real-estate sector saw a strong growth across residential, commercial and alternative segments, fueled by high-demand, policy support and increased investor interest. Companies are expanding beyond traditional markets, luxury housing and ready-to-move-in homes gained popularity while office space and emberging sectors like data centers has also thrived. Government tax incentives towards homeownership has been encouraged and been well taken through, though affordability remained a concern due to rising price, but the market saw innovation in financing, including the launch of residential mortgage-backed securities in India. Now coming to our projects, we’ve had a very, very great year and very happy to share that financial year ’25, where all our projects have been performing well, we are inching towards deliveries of many upcoming projects in our portfolio, which is well-ahead of our rare timelines. I’d like to start-up with our flagship project, Ajmera Manhattan, which is almost 88% sold-off in inventory and the project is also making a substantial progress of 23rd level and 21st level in respective towers. Ajmera Greenfinity also where about two-thirds of the project is being sold, we are about more than 60% of the RCC work done. Our other project, Ajmera Eden and, as you know, it’s almost 90% completed and 90% of the inventory is also being sold. The project is almost ready and we’ve already applied for OC and happy to share that we’ve almost there by getting the OC and we have about very, very little inventory left to sell. Further,, Vihara and Bhandu, which was launched in May 2024 has been sold, about 65% of that inventory has been sold and we are — and where we had just began the work and we are on the first slab of the project. Moving to our Bangalore projects, Lugano and Florenza, which is 90% — 95% sold-off and expected to complete in September ’26 Lugano and Florenza both in this financial year — sorry, September ’25 and both Lugano and Florenza. Ajmera IRIS recently launched project has almost seen a 50% 60% inventory being sold-off and the work is also being successfully going on in this project. I’m very happy to say that we recently launched in the quarter-four a project known as Ajmera Marina in Bangalore. And within this quarter itself, we have sold about 62% of its inventory and we just started with the excavation work. So overall being response has been coming up wherever we have done launches and sustainable sales has been pretty good in all our continued and sustained projects. So we are very happy to say that in the overall portfolio of our sales, 40% of our sales have come through project launches this year, so which just shows and validates that the brand Ajmera has been well-received by the customers and we continue to reap the fruits about getting great launches for our projects. Looking ahead, this year sounds to be very, very exciting. We have nine new projects coming up. We have about 2.2 million square feet of carpet area, which is being launched with a GDP of approximately INR6,500 crores. These projects position us strongly in the upcoming calendar year, which promises exciting growth prospects. So this year has to be — is going to be very, very exciting for us as a company and we are really looking-forward for great launches and great numbers coming for our company this year. For the financial updates and numbers, I would like to hand over to our CFO, Mr Nitin, who will walk you through the performance highlights. Thank you.
Nitin Dineshchandra Bavisi — Chief Financial Officer
Thank you, sir. Very good evening to you all, and thank you for joining us. Before we move on to Q&A session, allow me to summarize the consistent operational and financial performance we have delivered for quarter-four and FY ’25. Our performance for the FY ’25 sales value reached INR1,080 crore, marking 6% Y-o-Y growth. Sales area reaching to INR595,000 plus square feet, which is also a 26% Y-o-Y growth.
Collections stood robust at INR646 crore, which is also a 13% Y-o-Y growth. Revenue for the year stood at INR753 crore, 6% Y-o-Y, EBITDA at INR246 crore, which is also 18% Y-o-Y and EBITDA margin at 33%. Our PAT reached at INR126 crore, increasing by about 22% Y-o-Y, resulting in a PAT margin of 17%. With healthy operating cash-flow and equity raise, the company has successfully reduced its debt by about 15% Y-o-Y, amounting to INR119 crore as compared to FY ’24 closing number.
The equity ratio stands at 0.55x is to-1, the lowest in our recent history and created further headroom to undertake aggressive growth through deep launch pipeline, which just narrated by. The weighted-average cost of debt has remained at 12.2% per annum. Happy to bring the fact that all marginal loans recently, which we have syndicated, which is at much lower rate ROI than this weighted-average cost coupled with repo rate reversal which RBI has given the two rate reversal.
So we are very hopeful that going-forward also, we will have the good headroom for the debt — cost of debt to coming down on our debt portfolio. Let me now briefly mention the improved revenue visibility with the OCE received and ongoing project portfolio estimated to be around INR1,897 crore. Out of this, INR1,200 plus crores is from the where the sales performance has already been achieved and about INR600 plus crore — INR650 plus crores of the revenue to come whereby the inventory to sell.
Additionally, our projects in the launch pipeline are estimated to contribute about INR6,400 plus crores, which is also going to give us a very headroom for the overall revenue visibility of INR8,354 crore. The estimated net cash-flow from our OCL issued and ongoing project is about INR769 crore. With this concise summary of our business highlights and financial performance, I would now — I now invite your questions and look-forward to further interactions. Thank you, everybody.
Questions and Answers:
Operator
Thank you very much. We will now begin the question-and-answer session. Anyone who wishes to ask a question may press star and one on your touchstone telephone. If you wish to withdraw yourself from the question queue, you may press star and 2. Participants are requested to use handset while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles the first question is from the line of Dixit Doshi from Whitestone Financial Advisors. Please go-ahead.
Dixit Doshi
Hello. Yeah, congratulations for a good performance. Sir, my first question is regarding the upcoming launches. So let’s say, if we start with Vodala project, even in this quarter, we have kept it as a Q1 launch timeline. It’s already half the quarter gone. So how confident are you of launching it in this quarter itself?
Dhaval Ajmera
Yes, we are quite confident about launching this project in this quarter. Most of our approvals are already in-place. We’ve got the majority of the things. Final last leg handovers have been happening and we should be able to get through in this quarter.
Dixit Doshi
Okay. Now coming to the other projects, so let’s say,, Bandra or Sova, even Kanjuma. So these were earlier, all of these are planned in Q1. And now some of them we are planning Q2 and some even Q3. So if you can broadly touch upon why we are facing such a delays and could — how confident are you that if more delays won’t happen?
Dhaval Ajmera
So you know the Versova vicroli, these projects have been delayed or probably pushed because of there are certain regulatory issues for all across the area specific and not a project-specific and where not only us, but a lot of other projects have been affected from the recent environment and NGT orders, so which we are very, very hopeful that it should be able to clear soon. And hence, we have pushed back these projects because once we get that, then the other approval processes start automatically. So hence Hence, those have been pushed. As far as the Bandra is concerned, Bandra is on-track. We — and the other projects are also looking on-track. And with these kind of outlines, we’ll definitely be able to launch on the given timelines?
Dixit Doshi
Okay. And is there any specific issue with the Kanjur because if we see in the DCR, there have been no documentation after August ’24.
Dhaval Ajmera
So no, there has been no — right now, we are under the master planning phase and we are also under the internal approval processes, which is to be done and handing over particular because this particular land has a lot of handovers to be done in terms of roads, in terms of amenities, etc. So we are under those phase right now to hand over all these to the government and subsequently launch the launch — put up the project for launch where we have to start doing our sales.
So since this is a larger layout, obviously, there would be complexities in handing over, et-cetera, which we are ironing it out and closing it. So hence we are — we want to ensure that we finish off all the basic approvals so that we are — we can easily launch the project subsequently phase-wise. And but all those, there are collector payments which were made and all of that which was done. So we’ve done all of that in all those projects to let all our things cleared.
And once we start that and once this NGT clearance comes, we just have to put our plans for approvals and take subsequent project approvals.
Dixit Doshi
So these handovers, we have to do it by Q3 so that we can launch in Q3.
Dhaval Ajmera
Well, it’s not completely important, but because of the largeness of the layout, our endeavor is that we want to give away all the handover so that the net crot looks completely clean and everyone has a clear visibility and that is where we are doing. There is no compulsion in us, but we want to make a layout with full amenities, master planning, all those you know, what do you call the layout roads to be done, et-cetera, hence, we are doing it in a longer perspective and not just a short-term perspective.
Dixit Doshi
And in terms of you mentioned about the regulatory issue, the LGT order. So. So is it — so in your potential launches, there are nine projects. So is this LGT order is only for the Vikroli, Versawa and Kanjur or even other projects as well?
Dhaval Ajmera
No, just Vicroli, Versawa and,
Dixit Doshi
Just Vicroli, Versova and. And now in this quarter, we have mentioned boutik office Vadala, it’s INR1,800 crore project. So is it like a commercial project? I think earlier we have moved some land-bank to the subsidiary where we were looking for some partnership. So is this a under partnership or we will be doing the — and is it office and if it’s office, then are we planning for leasing or it will be outright sale?
Dhaval Ajmera
So first number-one, this is not part of that the land which has been demerged and where we are looking for partners that is a separate land. This is part of the larger layout of the other side of the land what we have. And we — in our analysis and thing, we always had boutique office requirement because that was a lot of local requirement which was coming in from the complex as well as the surrounding neighbors.
So we’ve devised this plan and this is a boutique office of about 400 to 600 square feet carpet area each offices, which is going to be on strata sale and not on lease. So which will be like a regular residential sales what we do, this is going to be like that of a Strata sale away.
Dixit Doshi
Okay. And one last question in this round. So there are three more projects — two more projects, Sastrinagar and. So these are redevelopment projects or our own land-bank and what could be the margins over there?
Dhaval Ajmera
So is a redevelopment project and is an outright buy of a smaller piece of land, which is like on the niche area at East. So that’s a smaller piece of land what we have taken. And Shasrinagar is a redevelopment project. So we are looking at least in, we are looking at about 20-odd percent of IRR returns. And in, since this is an outright and we will have at least 30% 35% plus returns coming.
Dixit Doshi
Okay. Fine. That’s it from my side. Thank you.
Dhaval Ajmera
Thank you
Operator
The next question is from the line of Saurabh from Sahasir Capital. Please go-ahead.
Saurabh Sadhwani
Hi, my questions have been answered. Thank you.
Operator
Thank you. Before we take the next question, we would like to remind participants that you may press star and 1 to ask a question. The next question is from the line of Karan. Please go-ahead.
Unidentified Participant
Hello.
Operator
Yes, sir, you’re audible. Please go-ahead.
Unidentified Participant
Thank you for the opportunity. Sir, I just wanted to ask regarding the future projects which we are going to develop. So how do you plan to finance all the new projects in the future.
Nitin Dineshchandra Bavisi
So basically, our plans like as we have internal accruals and as well the part of the equity raise money, which is also going to be utilized as a promoter contribution or the project contribution required from the equity phase kind of a thing. And we have some few projects which are on the closing kind of a thing like Privi, Aden, at the year-end kind of a thing, one or two projects at Bangalore. So operating cash-flow also going to be unlocked out of those projects kind of a thing, which is also going to strengthen our capital infusion into the new projects.
Plus we have given the guidance of debt-equity ratio 0.85, keeping the overall project-level loans going to be there and which is what going to be the supporting for this aggressive launch pipeline. So the mix of the — all three, the balance of the equity money plus operating cash-flow and the debt level at a project-level, construction finance, I meant to say.
Unidentified Participant
Got it, sir. Sir, I wanted to understand the accounting of like how do you recognize the collection which you take like for example, we have INR650 crores collection this year. So what is the accounting and how do we recognize it?
Nitin Dineshchandra Bavisi
So I believe your question is regarding the revenue and not the collection because collection, the physical collection always gets recognized upon the realization of the funds. But just to clarify, the accounting of the revenue is on the percentage-of-completion method and which is the — on the execution and progress of the project.
Unidentified Participant
So, but I could see there is like INR132 crores of current liabilities. So I assume that would be as advanced received from customers if I’m not wrong.
Nitin Dineshchandra Bavisi
So typically like you know, if I want to elaborate you, all the collections gets into the liability side as the advances from the customers. And this is the revenue recognition, it gets allocated to the P&L income side. And then after whatever the balance of the unrecognized revenue kind of a thing, those collections will keep on sitting onto the liability side, which is the number which we are referring.
Unidentified Participant
Got it, got it. So I just wanted to just know about the project details of, Aram in Malad and one in like are we not including that in the presentation any particular reason
Dhaval Ajmera
Why the Aram project is not part of our portfolio over here, well, because there had some complexities of the land, which was inheritant since last 15, 18 years and it continues to have some of the other complexities. Hence, this was not included and it’s not part of this portfolio of us. As far as Azmera Yoginagar is concerned, yes, it is but there has been some legal issues within the society and you know that which is the society is trying to sort it out and once that is sorted-out, we’ll put it across back-in our books here. So we just have to wait till the society clears that.
Unidentified Participant
Got it, got it. Thank you, sir, all the best for the.
Operator
Thank you. Ladies and gentlemen, if you wish to ask a question, you may press star N1. All participants who wish to ask a question to the management may press star N1 on their touchstone telephone participants Who wish to ask a question may press star and 1 at this time our next question is from the line of Divyam from RB. Please go-ahead.
Divyam
Hello I want you to ask what the land-bank is with you idea wise and value-wise hello
Dhaval Ajmera
Can you please repeat your question?
Divyam
What is the land-bank? Area wise and value-wise?
Dhaval Ajmera
So land-bank what we currently have which is not launched and which is we possess in our hand is about 10 million square feet of FSI, primarily divided in Vadala and Kanjumar. Vadala has about 3 million square feet of FSI, sorry, 2.5 and Kanjul Mark is about 8 million square feet of FSI. Plus we have about one — about approximately 1 million square feet-in Bandu which will be coming in.
So the Vadala and Kanjuma put together will be roughly top-line of about INR30 crores INR35,000 crore, INR40,000 crores and Kanjum — our, which is about 8 lakh square feet is about INR1,600 crores. So the land-bank, which has not come into our portfolio right now is about INR40,000 crore INR42,000 crores and approximately about 11 million square feet of FSI.
Divyam
And by when you planning to do on this?
Dhaval Ajmera
Well, or you know as we said that Vadala is an ongoing complex and Kanjuma is going to start getting launches this year, which we are doing one. By next year, we will see more launches coming up in and Vadala as well because those will be parallel launches which will be coming, one will be probably residential, one will be commercial, some will be retail. So there will be two, three parallel. Like in Vadala, this year also we have two parallel launches.
One is a residential and one is a commercial. So that way, again, in Kanjulman, we’ll have different varieties of launches coming. And our endeavor is that in Vadala, we should finish in the next four to five years time and like at least launch them and should be a six, seven-year project.
Divyam
And any planning to add new?
Dhaval Ajmera
Yeah, obviously, as this year also we had given a guidance of about INR3,000 odd crores of project launches or project acquisitions to be done. And we have acquired around INR2,500 crores of project this year. And in this coming financial year, we are looking at INR3,500 crores to INR600 crores of new project acquisitions over and above what we already have.
Divyam
And any addition in leverage for that?
Dhaval Ajmera
Yeah. So leverage will be added, obviously, but that will be mapped to the project-specific. But most important is that we want to keep our debt-to-equity ratio under 0.8 to 8.5 and that’s where we will target to keep it and not go beyond that. So that’s how we will take the respective debts where we want to — where we have to.
Divyam
Any planning for debt fee?
Dhaval Ajmera
Sorry.
Divyam
Any planning for debt fee cost.
Dhaval Ajmera
This is construction business where debt is inevitable part of the project cost and there is a lot of initial funding which is required beyond the land and it is premiums, it is construction, it is the land cost, which is a lot of upfront payment to be done. So I don’t think there will be a debt-free thing because if we do debt-free, then the growth will be sacrificed and we do not want to sacrifice our growth and we want to continue with the growth trajectory.
So we will have debt, but it will be mapped to a particular project and not something which will be, you know which will be hounding as a separate thing. But every debt will be mapped to a project and we will continue with two things. One is launching our own land-bank. Two is constantly getting on to buying new properties or projects, which will help us income — helping our company grow.
Divyam
Okay, thank you very much.
Operator
Thank you. Participants who wish to ask a question may press star and one Ladies and gentlemen, if you wish to ask a question, you may press star and 1 a reminder to all participants that you may press star and 1 to ask a question the next question is from the line of Devank, an Individual Investor. Please go-ahead.
Unidentified Participant
Yeah, hi. Hi. Good evening, everyone. Just want to know what’s the planning for your — this what will be your debt management guideline?
Nitin Dineshchandra Bavisi
So basically, debt-equity ratio, which we have given as a guidance, which is 0.85x. And as you can read-through the slide, like the general corporate loan and the balance sheet loan, which is we have had from INR338 crore in March ’24 to almost INR167 crores and we have a further plan in-place to prepay this loan and bring it down aggressively and endeavor to zero down further. Going-forward, project-level loans, we will not shy away to take the project-level loan because that is something offering the growth to us as explained the concept of trading on equity kind of a thing.
So that is something which we will take and support our aggressive launch pipeline and that’s how the net equity ratio guidance is of 0.85x for FY ’26.
Unidentified Participant
Okay. Thank you.
Operator
Thank you. The next question is from the line of Dixit Doshi. Please go-ahead.
Dixit Doshi
Hello. Yeah, thanks for the opportunity again. Sir, if you can, you know, explain us the regulatory issue which we are facing specific to this NGT order. So what exactly the issue and what they are saying?
Dhaval Ajmera
So fundamentally, and is there has been a stay order which has come from where NGT is a National Green Tribunal which has said that any projects which are in the surrounding area of 5 kilometers of a ecosensitive areas of the city or a town will have to start appraising the environment clearances not at the local level, that is Bombay or Maharashtra, but you have to go to Delhi. Now what that — what does that mean is that in a city of Mumbai, there is — is — there is a Sanjay Gandhi National Park and in, there is that flamingo parks and all of that.Those are called as ecosensitive zones.
So when you do a 5-kilometer radius from Sanjay Gandhi National Park, primarily all these areas of land up until Versova and on the Western side and if you go towards the central side, all these areas and land towards almost comes into this 5 kilometer radius. So a lot of central belt areas and a lot of western belt areas have been affected by this. What this means is affected, meaning the — if your project is now going to be about 20,000 square meters of construction area. You have to go for environment clearances and those environment clearances, instead of doing it in Mumbai, you have to do as per the process you were supposed to do in Mumbai, but now you have to go and do it in Delhi. Now unfortunately or fortunately, the Delhi central government did not want to start this because if they start for one, the entire India projects come in because zones are not only in Mumbai, but it is all across India in every city, every state and every town. So they were not very reluctant. So they are also pushing within the court and this was being challenged by us as developers in the court and it matter was in Supreme Court and it is still in Supreme Court. Hopefully, very soon we feel the matter has been argued right now it is with under a judge and he has heard both the sides of the matter and hopeful to get some orders soon because it is closed for orders
Dixit Doshi
Okay fine that’s it from my side. Thank you.
Operator
Thank you ladies and gentlemen, if you wish to ask a question you may press star and. The next question is from the line of Yash. Please go-ahead hello, Mr Yash, your line has been unmuted. Please go-ahead with your question hello, Mister Yash, your line has been unmuted. Please go-ahead with your question
Yash Golechha
Yeah, sir. Can you hear me now? Hello.
Operator
Yes, sir, we can hear you. Go-ahead.
Yash Golechha
Yeah. Yeah, I’m Yash from Wallford PMS. I just wanted to know the capex plan for next two years.
Nitin Dineshchandra Bavisi
So typically, we have this nine projects, which is 2.2 million square feet having the GDV of 6,457. And as we have been giving the guidance about the — maintaining the EBITDA and the PAT margin. So rest of the component is that of the cost elements and which is what the capex over period of time because all these projects in the timelines of about four to five years and that is over period of time and few of the upfront cost that of the approval cost and such kind of a thing is paid upfront and as well then after an installment basis.
Construction cost is spread over and rest of the other costs are also time-related cost kind of a thing. So these are the like overall capex over these nine projects.
Dhaval Ajmera
So roughly around INR4,500 crores to INR4,800 crores is the cost, which will be spread over the next three to four years, some will be upfront-ended in terms of approvals, etc and some will be consistent over the three, four-year timeline
Operator
Thank you. Ladies and gentlemen, if you wish to ask a question you may press star and 1 thank you. As there are no further questions from the participants, I would now like to hand the conference over to the management for closing comments.
Nitin Dineshchandra Bavisi
Thank you everybody for participating and interactions for the performance and as well the growth plans which the company has. And we look-forward to stay connected with you all. And till then, stay safe, stay happy. Thank you, everybody.
Dhaval Ajmera
Thank you.
Operator
Thank you. On behalf of Ajmera Realty and Infra India Limited, that concludes this conference. Thank you for joining us and you may now disconnect your lines. Thank you