Ashiana Housing – Banking on Tier II and III towns!

Q1FY25 concall notes

FY25Q1

• Bhiwadi sales has picked up this quarter , prices have also increased

• Momentum in price increase is slowing down

• Ashiana Shubham (Chennai, senior living): Phase IV delivery – lower margin project and paid 1 cr. interest to customers due to late delivery. This is an older project (signed in 2015), they had given very high revenue share to partner as they were just starting up in Chennai in 2015. Additionally, they had unexpected cost overruns. This problem will be lesser in Phase IVB and in Phase V due to price increases (6000+ sales realization in Phase V vs 5200 in Phase 4B and 4700 in Phase 4A)

• Expect lower delivery in Q2 and will report losses, deliveries will pickup in H2

• Amarah Phase IV launch in Q2, 25% higher realization than Phase III (4.7 lakh sq.ft). Not looking to sell at launch, want to maximize revenue potential. Phase V is planned to be launched in FY25

• Ashiana Surbhi and One44 (Jaipur): sales were negative (-22,000 sq.ft). Saw cancellations in One44. Ashiana Surbhi: lot of old investors who had bought in the last boom cycle were not paying. Ashiana allotted these investors flats in other projects using proceeds earlier collected resulting in negative sales in Surbhi. Believe its one-time

• Elite homes will be launched in One44 brand name (1.5 cr.+)

• Phase II launch of One44 on Sunday, have left a lot of value for money

• Maintain 2000 cr. presales guidance in FY25

• Focusing more on business development in senior living housing

• One termsheet in Bangalore fell through

Disclosure: Invested (no transactions in last-30 days)