Release Date: May 27, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Arihant Superstructures Ltd (BOM:506194, Financial) achieved sales bookings of 272 units, equivalent to 2.49 lakh square feet, amounting to INR186 crore in value for Q4 FY25.
- The average price per square foot increased by 20% year-on-year, reaching INR7,462 per square foot during the quarter.
- The company has a substantial land bank of over 307 acres, positioning it well for future growth and market share expansion in the Navi Mumbai MMR region.
- Arihant Superstructures Ltd (BOM:506194) received an occupancy certificate for Arihant Aloki Phase 3, indicating progress in project completions.
- The company plans to maintain a 20% to 25% growth guidance for FY26, with expectations of improved performance as new projects contribute to revenue.
Negative Points
- Consolidated operating revenue for Q4 FY25 decreased by 5% year-on-year, from INR161 crore in Q4 FY24 to INR153 crore.
- EBITDA for Q4 FY25 declined by 37% year-on-year, from INR35 crore in Q4 FY24 to INR22 crore, with a reduced EBITDA margin of 14.55%.
- Environmental clearance issues have delayed the start of construction for several projects, impacting revenue recognition and growth.
- Increased interest costs and employee expenses have contributed to a decline in profit margins.
- The company's debt has risen due to land acquisitions funded through internal accruals and debt, with a current net debt of INR685 crore.
Q & A Highlights
Q: Can you explain the slowdown in World Villas sales during Q4 and the outlook for future sales?
A: Parth Chhajer, Whole-Time Director, noted that Q4 sales for World Villas were impacted by external factors, including fluctuations in equity markets. However, momentum has picked up in Q1, and they expect to recover in Q2 due to increased client interest in the project's unique environmental features.
Q: Is there any competition for World Villas in terms of similar projects in the area?
A: Parth Chhajer stated that there is no direct competition at their product level. The unique configuration of World Villas, which includes 390 villas, a Gymkhana, and a five-star hotel, sets it apart from other projects.
Q: What factors contributed to the increase in average price per square foot to INR7,462?
A: The increase was driven by better sales at Arihant Advika, which contributed significantly to the higher average price. The company expects more contributions from premium projects, which will raise the average pricing in future quarters.
Q: Will the company maintain its 20% CAGR guidance for FY26 despite not achieving it this year?
A: Parth Chhajer confirmed the company aims to maintain a 20-25% growth rate. Delays in environmental clearances and increased costs, including land investments and employee expenses, impacted this year's growth. However, they are confident in achieving the target in the coming years.
Q: What are the key projects expected to drive sales in FY26?
A: Key projects include Arihant Advika, World Villas, Arihant Aalishan, Arihant Aspire, and Arihant Avanti. These projects are expected to contribute significantly to presales and revenue in the coming financial year.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
