Ashiana Housing Limited — Investor Meet, 22-11-2024: Analysts/Institutional Investor Meet/Con. Call Updates

1. **Financial Performance**: Ashiana Housing reported a significant increase in area booked during Q2 FY25, reaching 7.29 lakh square feet, up from 4.43 lakh square feet in Q1. Pre-sales for the first half of FY25 amounted to ₹907.86 crore, with a value of area booked at ₹672.54 crore in Q2 versus ₹235.32 crore in Q1. However, total revenues for the quarter decreased to ₹59.53 crore, down from ₹128.51 crore in Q1, primarily due to delays in project deliveries. The PAT for Q2 FY25 was a loss of ₹7.55 crore, attributed to minimal phase deliveries except for Ashiana Shubham in Chennai. Management maintains a pre-sales guidance of ₹2,000 crore for FY25.

2. **Future Outlook and Growth Drivers**: Management highlighted optimism for the second half of FY25 with multiple key project deliveries expected. They plan to launch Phase-5 of Amarah in Q4 and remain focused on enhancing pre-sales through various upcoming projects.

3. **Order Book and Operational Updates**: The company anticipates delivering approximately ₹657 crore in revenue for FY25, with around ₹480 crore expected in H2. They are also working on new land acquisitions and hope to finalize deals shortly.

4. **Analyst Q&A Insights**:

- **Revenue and Profitability**: Analysts sought clarity on profitability expectations. Management projected that profit margins would remain steady at around 9% for FY25 but expect improvements from FY26 with anticipated higher-margin projects.

- **Market Position**: Concerns were raised regarding pricing strategies in competitive markets like Gurgaon. Management indicated a cautious approach toward high land costs.

- **Operational Risks**: Analysts questioned potential cost overruns. Management acknowledged rising costs but expressed confidence in maintaining profit margins despite these challenges.

- **Capex and Capital Allocation**: Plans for financing expansion involve secured debentures and utilization of cash flows. Management will prioritize funding for land acquisitions.

- **Strategic Priorities**: Emerging interest in markets with potential demand, like Jaipur and Bangalore, will guide future launches.

5. **Market or Regulatory Updates**: Market sentiments indicate a cautious approach due to high land prices and potential project delays affecting overall growth.

6. **Strategic Focus Areas**: Management's focus on maintaining flexibility in capital allocation reflects a strategic balance in managing risks related to land price fluctuations and market expansions.

7. **Investor Insight**: The firm's ongoing project pipeline and strong sales performance in Q2 reflect a robust strategy, warranting a positive outlook. Given the potential for margin improvement and strategic land acquisitions, this positions Ashiana Housing favorably for long-term growth, aligning with a 'buy' position for cautious investors looking for growth opportunities.