Eldeco Housing And Industries Limited — Investor Meet, 18-11-2024: Analysts/Institutional Investor Meet/Con. Call Updates

**Financial Performance:** Eldeco Housing reported a robust financial performance for Q2 FY25 with consolidated total income rising to INR 36.4 crore, reflecting a 95% year-on-year growth from INR 18.7 crore in Q2 FY24. For the half-year period, total income was INR 68 crore, up 47% from INR 46.2 crore in H1 FY24. The company posted a consolidated profit after tax of INR 4.5 crore for Q2 FY25, compared to INR 6.4 crore in the prior year. While EBITDA for the quarter stood at INR 7.9 crore with a margin of 21.8%, it decreased from previous highs due to revenue mix changes, primarily impacted by the lower margins of the Imperia Phase 1 project.

**Future Outlook and Growth Drivers:** Management emphasized confidence in the Lucknow real estate market's strength, citing a sustained demand for projects. With a focus on timely project delivery and continuing strong pre-sales, Eldeco plans to capitalize on a robust land pipeline projected for launch next year, aiming for fresh revenue potential exceeding INR 600 crore.

**Order Book and Operational Updates:** The company reported notable pre-sales growth, achieving a 316% increase in booking value to INR 103 crore, driven by the luxury Eldeco Trinity project. Additionally, approximately 61,000 square feet of area was handed over during the quarter, up from 38,000 square feet year-on-year.

**Analyst Q&A Insights (Detailed):** Analysts questioned about potential challenges amid increased competition and market slowdowns, especially in the luxury segment. Management acknowledged market cooling but remained optimistic about the company's established reputation and customer base in the upper-middle segment driving consistent demand. Concerns over declining EBITDA margins were addressed, clarifying this was a result of lower-margin project revenue recognition which is expected to stabilize moving forward. Analysts inquired about expansion and land acquisition outside Lucknow; however, management reiterated the focus on consolidating growth within the Lucknow market.

**Strategic Focus Areas:** Themes of operational excellence and enhancing project delivery reflect Eldeco’s commitment to maintaining a competitive edge within its local market.

**Investor Insight:** The positive reception of recent sales metrics set against a backdrop of expanding operations within the Lucknow market indicates a favorable position for Eldeco, suggesting a 'buy' perspective emerges supported by strong demand and healthy operational metrics. Continued monitoring will be essential, particularly in response to external economic factors.