Aurum PropTech Limited Q2 FY23 Earnings Conference Call Insights

Key highlights from Aurum PropTech Limited (AURUM) Q2 FY23 Earnings Concall

Q&A Highlights:

• [00:16:23] Darshil Zaveri of Crown Capital asked about cost going forward with respect to revenue increasing. Kunal Karan CFO replied that INR50 crore of revenue in 4Q23 will not breakeven as AURUM will not be PBT positive at that revenue level.

• [00:27:35] Vipul Arora asked if CareerSocially is not part of Aurum. Onkar Shetye ED answered that the company has concluded the acquisition of CareerSocially in October and it’s fully onboarded.

• [00:28:56] Ajinkya Pingale with MetaWorks Equity enquired how AURUM’s business strategy has changed pre and post Ukraine war. Onkar Shetye ED replied that global scenarios do impact most economies and businesses. However, the India growth is led by urbanization growth and changing consumer behavior led by digital adoption. In the long term, AURUM is pleased about the strong real estate and tech adoption story.

• [00:30:36] Ajinkya Pingale from MetaWorks Equity asked how the company is planning for recession. Hirenkumar Ladva EVP replied that in the interim, AURUM is not witnessing immediate impact on the real estate sector. Additionally, the buy-sell transactions could be the most immediately impacted due to recession. However, the rental economy will continue.

• [00:33:24] Mukesh Kothari asked about AURUM’s investment evaluation for acquisitions. Onkar Shetye ED replied that AURUM has two stages to any investment; one is running the opportunity through an extensive buy framework to understand the opportunity. And if risks are found with the team, operational metrics, scalability or tech stack, AURUM prudently takes a call in the best interest of the company.

• [00:39:37] Mukesh Kothari asked if the company is into providing solutions to housing finance companies. Hirenkumar Ladva EVP replied that the company is not providing any housing financing services from a tech point of view.

• [00:44:58] Darshil Zaveri of Crown Capital asked if the INR80 crores of cash would be used for further acquisitions. Kunal Karan CFO answered that the entire amount will not go for acquisition. AURUM will need money for working capital and product development. Also some of the money has been committed to the investments made already.

• [01:01:02] Nitin Siddamsetty asked if there are any REITs that are actively investing in student housing and co-living currently in India. Onkar Shetye ED said that co-living from a built to suit point of view it’s a developing space. So the quality of supply and the interest level of REITs is what AURUM is looking forward to in coming years.