Ashiana Housing Limited (NSE: ASHIANA) Q3 2025 Earnings Call dated Feb. 12, 2025
Corporate Participants:
Vikash Dugar — Chief Financial Officer
Varun Gupta — Director
Analysts:
Binay Sarda — Analyst
Unidentified Participant
Himanshu Upadhyay — Analyst
Rahul — Analyst
Presentation:
Operator
Ladies and gentlemen, good day and welcome to Housing Limited Q3 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 during the conference call, please signal an operator by pressing Sero on a phone. Please note that this conference is being recorded. I now hand the conference over to Mr Binay Sergar from ENY. Thank you, and over to you, sir.
Binay Sarda — Analyst
Thanks, Muskan. Welcome, everyone, and thanks for joining this Q3 FY ’25 earnings call for Ashiana Housing Limited. The results and the investor presentation have been mailed to you, and it is also available on the stock exchange. In case if you have not received the same, please write to us, and we’ll be happy to send it over to you. To take us through the results for this quarter and answer your questions, we have today with us Mr. Varun Gupta, Whole-Time Director; and Mr. Vikash Dugar, CFO. We’ll be starting the call with a brief overview of the company’s performance of the quarter, and then we’ll follow it up with Q&A session. I would like to remind you that everything said on this call that reflects any outlook for the future, which may be construed as a forward-looking statement must be viewed in conjunction with uncertainties and risks that they face. These uncertainties and risks are included, but not limited to what we have mentioned in the prospectus filed with SEBI and subsequent annual reports, which you’ll find on our website. With that said, I’ll now hand over the call to Mr. Vikash Dugar. Over to you, sir.
Vikash Dugar — Chief Financial Officer
Thank you, Binay. Good afternoon, everyone. I hope all of you and your families are keeping healthy. I welcome you to discuss the performance of the third quarter of FY ’25 for Ashiana Limited. Thank you for joining us today. Area booked in the quarter 6.77 lakh square feet in third quarter of FY ’25, vis-a-vis 3.5 lakh square feet in third quarter last year and 7.29 lakh square in the second quarter of FY ’25. Area booked in second quarter was higher due to launch of Ashiana Amarah Phase 4 in Gurugram. We had very good bookings across projects this quarter. Value of area booked at INR454.16 crores in the third quarter vis-a-vis INR672.4 crores in the second quarter FY ’25. Total presales for nine months of FY ’25 around INR1,362.02 crores vis-a-vis INR935.69 crores from nine months previous year and upside of 45.56%. 19 lakh square feet in the third quarter vis-a-vis 4.77 lakh square feet in Q3 FY ’24 vis-a-vis 6.01 lakh square feet in second quarter of current year. Quarter-on-quarter decline of 13.6% majorly due to a position of graph-related restrictions. Total construction for nine-month FY ’25 was INR16.11 lakh square foot vis-a-vis 13.7 lakh square feet in the same period last year. We continue to maintain our guidance of INR2,000 crores of presales in FY ’25. However, this will depend on the velocity of bookings since the launch of Ashiana Amarah Phase site in the last quarter. On financials, as anticipated, our total revenues were higher for the quarter at INR139.93 crores vis-a-vis INR59.53 crores in second quarter, reflecting project deliveries in the third quarter. Likewise, our PAT for Q3 FY ’25 stood at positive INR10.88 crores. It was mainly driven by 2 new phase deliveries, Tarang Phase IV in Phase VI in Jaipur. PAT also had a onetime impact of INR5 crores payout with respect to the GST Metro Trios hotel. It has been shown as an exceptional line item in P&L. But delivery is expected in a more Phase 2 and Phase 3 in the last quarter, we are expecting a profitable Q4 FY ’25. Pretax operating cash flow recorded at INR120.42 crores in Q3 FY ’25 vis-a-vis INR818 crores in Q2 FY ’25. Pretax operating cash flow for 9 months ended FY ’25 at INR273.83 crores. Cash flows continue to be healthy due to higher collections, driven by better sales across projects. Third senior project launched in Chennai by the name of Ashiana Sourabh located. Apart from that, Ashiana Ekansh Phase IV in Jaipur and Ashiana Amodh Phase II in Pune will also launch in Q3 FY ’25. On this note, I would like to conclude my remarks. We will now be happy to discuss any questions or suggestions that you may have. Thank you.
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 R&1 on the touched on telephone. If you wish to remove yourself from question queue, you may press RN2. All participants are requested to use handset for asking a question. Ladies and gentlemen, we wait for a moment while the question queue assembles participants left press star and one to ask question is from the line of Rohit from PMS. Please go-ahead.
Unidentified Participant
Good afternoon or good afternoon. So sir, just a couple of questions. So sir, we had in the last talked about potential somewhere in Bangalore. So any update on that sir? That was my first question.
Varun Gupta
Okay. So we have the deal is moving forward in Bangalore. There is, in fact there are some conditions CPs that the landlords need to get done on the lag in terms of land approval. So once those are true, I think the deal through.
Unidentified Participant
Any time line on this, sir? I mean.
Varun Gupta
I’m hoping this quarter, but there they have issues their regulatory nature issue. So sometimes it’s not just on the landlord, it’s also on the government. But I’m hoping this quarter, we should be able to get through if not this quarter then next quarter for sure.
Unidentified Participant
And sir, generally BD point of view, I mean this so I mean, we’ve been saying that we will go slow given the elevated nature of the land prices land available. So it’s down to around 85 lakh square feet now if I’m removing so this is, of course, does not include Bangalore but just generally, if you can give us a sense on what is supposed to happen probably in this year? Are there anything that can sort of fill it up back to, let’s say, 40, 50 lakh that we were sort of saying that we I mean we feel whatever we are selling every year sort of that kind of run rate. So if you can probably help us on that point.
Varun Gupta
So we have also disclosed an agreement that we have executed for a 20-acre parcel in Jaipur, okay? So that agreement has been done, it would be another 20 lakhs-plus square foot overall.
Unidentified Participant
So that’s not there in this, right?
Varun Gupta
That is not there in this because, again, it’s only in an agreement stage and we have not concluded and there are cities for the landlord to perform. This was disclosed probably in the last quarter, sometime you would have given us a special announcement to the stock exchange that this is happening. We are waiting for the landlords to get some regulatory clearances there for us to move forward. And so that will add. And we are in talks for one more partial of about 7 to 8 lakh square foot and those stocks are also ongoing. So there is and over and above that we have about 50-odd lakhs square foot to launch in existing projects as well. Yes, INR48 lakhs. So there is some we still have three years of the stock. It’s not completely off, right? So I thought I’ll just clarify that as well.
Unidentified Participant
No, fair. No, I mean, I was just trying to say that, I mean, and then another so I will not Jaipur and Bangalore implemented 20 lakh each?
Varun Gupta
No. So Bangalore would be incremental probably between 10 and 12 lakh and Jaipur would be about 20 plus lakh only.
Unidentified Participant
And the 78 lakhs, which you said is also we are pursuing, that’s also in Jaipur or?
Varun Gupta
No, this is elsewhere. This is a senior living project as well. But again, very early stages. I’m hoping that we could do it.
Unidentified Participant
And sir, Amarah has been launched this quarter?
Varun Gupta
Amarah is five years, has not been launched. We have we should be launching in two weeks two weekends.
Unidentified Participant
And sir, any I mean, what are you hearing on the ground in the micro market that you are in there.
Varun Gupta
And so the markets are softer than what we were probably eight, nine months ago, okay? But that said, we’re not it is so we are positive that we should get a good launch. And to me, let me put this, markets are more normal, they’re not weak that extraordinary exuberance that the market had probably nine months ago, that is not there anymore and which is fair. Normal markets are probably the best place to be. Exuberance on either not very good. So I think the market is in a good space. But we’ll get to know how the launch goes in seven, eight days, yes, we start and then probably in a month, we’ll know how things are actually with real evidence.
Unidentified Participant
Right, right. So INR2,000 crores is fairly contingent on that, right, I mean Amarah.
Varun Gupta
It is contingent on that. It is contingent on how that goes. Yes, absolutely.
Unidentified Participant
And just one last question. I mean, any early thoughts on how the next year would be in terms of launches? And anything on presales that you would like to sort of share?
Varun Gupta
So we do our planning in early March. So that’s mid-March, that’s where we will exactly plan. What I hope to do is get some new projects going. So we have, we have another land in and Jaipur, we have this Jamshedpur parcel. The objective of the company would be to get all these 3 projects launched in the residential year. And maybe at least one of the three that we hope to take up this year that we are in talks of it we have spoken Bangalore, Jaipur in one more. I’ll try and get one more of those launched in the next.
Operator
Operator
Thank you. The next question is from the line of Himanshu Upadhyay of PMS. Please go ahead.
Himanshu Upadhyay
I had a question about what we have written in the annual report on Page 46, we have spoken about acquiring 7 million to 8 million within next five years and expect in sales of INR1,100 crores to INR2,000 crores and profit of INR2,000 crores. What it effectively lead to 18%, 19% of PAT margins and nearly 30% of EBITDA margin, okay? Generally, we have seen some of such high margins are only when price of land has increased sales value per square feet improving, okay? We believe are we assuming there are such prices are continuing or will continue to rise in near future and the sales velocity will remain good?
Varun Gupta
Okay. assumptions are that we will consume the entire stock that we have right now within the next five years. So this is about we have 11 lakh square foot of unsold stock in the ongoing projects, about 48 lakh square foot in future phases of and about 25 lakh square foot of land bank. And we are assuming by 2030, we should consume all of this. And that consumption is what we will report as revenue is probably including the ongoing projects. Two things have happened. One, operating leverage is kicking in. So margins are improving. If you can see, we are giving a sense of also how future revenue delivery revenue would look like. And we see an increasing trend next year, 1,300 plus. We are after that 1,700 plus and the year after that, again 1700-plus as compared to the revenues now. And will not improve increase so an operating leverage will kick in internal margin improvement. And second thing is a lot of that increasing land prices, apartment prices have already happened. Some of the projects that we have, we picked up in great times in 2021, in 2022. Those projects as and when they kick in, we will have good margins on those projects as they are expected. So I think that that increase in margin profile should happen in that because of that. So we are not factoring in significant price increases going forward in the future projects. We are assuming that now prices maybe will probably inch up as per inflation and not anything more than inflation at this point in time. But in these projects, we have already seen that kind of change, like Ashiana Amarah, we had assumed when we picked up the land price and what we are selling at is very different, which is a large kicker, similarly in Ashiana in all of these projects, we have seen price increases. We have also improved our mix to moving more and more to senior we expect to enjoy better margins in senior living because it’s a more specialized product, which has taken a lot of time for us to refine. So we have suffered earlier, but now we see improvement there. So there is a whole host of things that is playing out. And I expect to average high-teen margins on the PAT level over the next 5 years. And that is that we definitely expect to happen.
Himanshu Upadhyay
What the price depreciation, which has happened that in the traditional lens, what we had, okay, so that is giving us the confidence that we should get that much money. And that is the we think what we are we seeing in portfolios or leads getting generated reviews or the conversion of leads is taking more time and or the prices are people are more negotiated in the market when you say that the market is much more stable, at least in and Northern India, okay? Can you give us some.
Varun Gupta
Not in Northern India, in Gurgaon, across the world, otherwise, if you look at the last quarter, we had secular sales across projects. This was a quarter, which is not very heavily like if you look at Gurgaon’s contribution in Q2. Excluding Gurgaon, we had done probably about 430,000 odd square foot, 435,000 square foot. This year excluding Gurgaon, we have done 5.5 lakh square foot. And that 5.5 lakh square is more than all of Q1, which is 450,000 square foot and no Gurgaon in Q1. And so if you look at what is happening, I think, in general, markets are robust and continue to do well. Only in Gurgaon, where I think the markets are a little bit more stable, clothing rates are a little lower, visits are a little lower. But it isn’t a weak market. We are seeing that in Gurgaon, it’s more normal because it Gurgaon was in a different exuberance nine months ago, which none of the other parts of the country we’re in, okay? So I think Gurgaon is normalized to how other parts of the country are living in general, whichever way we see. So that is what I make.
Himanshu Upadhyay
And this Ashiana, can we expect launch in Q1 FY ’26?
Varun Gupta
No, it will go to Q2 or Q3 of the next financial year. So last-minute regulatory changes happened by which we have gone back on the drawing board of our building plans. And therefore, we’ll take some more time to get regulatory expected.
Himanshu Upadhyay
So has there been change in FSI loans?
Varun Gupta
It doesn’t impact oil projects, but we had designed the project in a certain form of fashion and regulation around that specific design change. So there are no changes in FSI.
Operator
Thank you. The next question is from the line of Shah from RBS Advisors. Please go ahead.
Unidentified Participant
I wanted to ask what would be the quarter three numbers you for Q3 FY ’25 be?
Vikash Dugar
Can you repeat that?
Unidentified Participant
For the January, February, March 2025 numbers so we can fully see in terms of revenue and EBITDA margin.
Vikash Dugar
So we don’t give out the EBITDA margins.
Unidentified Participant
Yes. Roughly revenue expecting a rough quarter four.
Varun Gupta
Those expected revenues in Slide 15 of our deck, if you have a look at that. And we should end up around INR550-odd crores for the year maybe including other income, INR575 crores for the year. So you’re looking at about a INR300 crore revenue to be reported for the.
Unidentified Participant
That’s a INR300 crores would be repeat for the last quarter of the business.
Varun Gupta
Yes, that’s what we’re expecting. We need to deliver a couple of projects. They are in OC stages, the 2 big projects are being delivered Gurgaon and in Jaipur and Ashiana Amarah Gurgaon we are going to be are in stages of OC. So OC should come in back complete in terms of development and construction as soon as OC deliver we are waiting on that Amarah even I think we are eager all stock. So that’s what we’re expecting. However, Q4 is going to be very, very largely because Ashiana Phase 2 is effectively selling costs effectively very low margin or no margin at all kind of a project which has hangover from the over or last cycle high is, I think it’s one of the few projects that we are still left with which still have some drag on the balance sheet for us, right? So that and Ashiana also are not very heavy in margins. So we expect margins to be very muted in FY ’25. However, with FY ’26, as I was talking to earlier, FY ’26 onwards, we expect the game to start changing significantly as we have better margin projects getting delivered FY ’26 onwards.
Operator
Thank you. The next question is from the line of Rohit. Please go ahead.
Unidentified Participant
Just again, two questions. sir, I think I mean we had in the last call and I mentioned that I think this was all discussed just a while back about this INR2,000 crores cumulative profit that you are kind of hopeful of over the next five years over FY ’25. So if I see in your slides that you’ve already sold, like you have inventory I mean you launched projects worth INR5,500 crores, and of which you like sold close to INR4,400 only to get over the next three years. including this year, right? So next four years later, including FY ’25. So sir, from here on, right, so to get the incremental like INR5,000 crores, INR6,000 crores of projects to be launched. I mean, to sell them and then recognize them in the ensuing 4 years, I mean wouldn’t FY ’26 be very heavy in terms of launches?
Varun Gupta
Well, so To me, we led to launch all the three projects outside of that is in our project list, which is Jaipur, Pura and will need to get one of the three projects that we are in talks With if we get those in, in the next financial year, I think we’ll be on track.
Unidentified Participant
So existing fee plus one of the ones that you Jaipur or Bangalore.
Varun Gupta
If we get that, we’ll win.
Unidentified Participant
Okay. This year, that should be one thing we should keep tracking in terms of launches. So the existing 3 ones that you said, right, excluding so any time line on the launches? Will it be H1 or H2 like any thoughts?
Varun Gupta
They should be early H2. So then we’ll get about 4.5 years to get them in. So we’ll have enough time to get them.
Unidentified Participant
And sir just the other question in terms of like last quarter, I think you mentioned that this year, profitability on a reported basis will be very similar to what last year was. So I mean, which would essentially make
Varun Gupta
Yes. Sorry, I’ll just cut you we did guide on that. And so one particular project, which is Ashiana is one, which was to deliver bulk of the profit, even with low on revenue, it’s a very high GP margin project. Historically, we are missing the delivery period by a quarter there. So it was in Q4, it’s gone to Q1 of next year. So some of the things were under power control, we executed. But this year, the graph regulation in NCR were heightened basically the threshold of pollution where they stop construction was reduced, and we lost probably 2025 strategies the construction period delivered this year, the estimates. And that which was we were expecting in March has now gone to me. So that’s, unfortunately, that’s what happened.
Unidentified Participant
So basically, next year, in terms of delivery revenue, one thing that will happen, maybe not so much on the revenue side, but more on the profitability front?
Varun Gupta
Yes, there would be a little bit of yes.
Unidentified Participant
And sir, I mean, we don’t have any anything major in terms of unsold inventory? Here, I can see these two projects which out of the 2.5 lakh square feet, one in Jaipur. So in terms of the sample rate, when do you think these two will get over? I’m saying I’m talking about, the Phase 2, V And VI. It’s not very high, but just wanted to get because it goes to like 50% inventory looking very low, but just wanted to get your sense.
Varun Gupta
So, we continue I think will be done in the first half of the next financial year, maybe the full financial year. That’s the large context, I don’t have any comment on. And the third one being so the way we have set up a sort of a crack team in Bhiwadi to get going with a lot of ready unsold stock, and they were targeting Ashiana Town. Ashiana Town has now basically now we’ve cleared it was our heaviest piece. So they have gone after that first. Now with that done, that team will move to as it probably want to get active. So first quarter of next year is when we start getting to get a sense of whether you’re able to get results. You see, if our strategy works in in the first quarter next year, then we’ll be done in the next financial year, if the strategy does not go up, we go back to the drawing board and try something else in the quarter after that. I think that’s where we are at in
Operator
The next question is from the line of Rahul an individual investor. Hello, Mr. Rahul? You may proceed with the question, please. The next question is from the line of, an individual investor.
Rahul
Sir I just wondered to ask deliver area in Amarah increased by around this quarter’s renovation or is it commercial?
Varun Gupta
No, just there was a calculation there in the way was done. Some parts of the area were missed out in our trading chart, which we so to review internally. And so that was correct because our plans were revised.
Rahul
Okay. So it was 5.3 times.
Varun Gupta
Yes.
Operator
As there are no further questions from the participants, I now hand the conference over to the management for closing comments. Over to you, sir.
Varun Gupta
We’d like to thank all of you for being on this call and being so patient with all the questions and answers. If we were unable to take any questions, please feel to write to us directly or reach out to us directly. And with that, we would like to conclude the call. A lot of the materials we have spoken about is posted on our website. And you can also e-mail your queries for any further clarification. Thank you once again for taking the time to join us on this call. Thank you.
Operator
On behalf of Ashiana Housing Limited, that concludes this conference. Thank you for joining us, and you may now disconnect your lines. Thank you.