Ajmera Realty & Infra India Ltd Q2 FY2025 Concall Summary

Key Takeaways

• H1 sales of ₹560 crore, equity raise closed: The ₹225 crore preferential allotment to marquee investors is complete, proceeds earmarked for debt reduction and growth, while the Vikhroli PE deal adds non-dilutive project funding.
• Launch pipeline is large but structured to protect cash: ₹4,270 crore GDV of potential launches this year, with the two biggest own-land projects designed as mixed-use to multiply sales velocity 3x and avoid upfront cash strain.
• Litigation overhang on Kanjurmarg removed: A court order confirmed the company's 66-acre land was wrongly demarcated in a PIL, clearing the path for approvals and a targeted March-April 2025 launch.
• Margin ranges disclosed, but no blended portfolio number: Own-land IRRs at 35–45%, redevelopment at 25–30%, JVs at ~30%, and slum/society redevelopment at 20–25%, yet management did not provide a weighted average margin for the portfolio.
• What to watch next quarter: Whether the Kanjurmarg and Rustomjee JV launches actually hit their March 2025 targets, progress on the South Mumbai land sale that has been in discussion for multiple quarters, and any concrete partnership or timeline for the Wadala SPV land.

Launch Pipeline & Project Execution

• 17 lakh sq ft readying for launch: The potential launch slate carries a gross development value of ₹4,200+ crore, headlined by the next phase of Ajmera Manhattan (85% of current inventory already sold) and the newly cleared Kanjurmarg project.
• Mixed-use design is the cash-flow engine: For large own-land projects at Wadala (₹1,550 crore) and Kanjurmarg (first phase ₹800 crore), management plans to develop residential, commercial and retail simultaneously, arguing this triples sales velocity versus a sequential build-out and reduces upfront capital pressure.
• Construction milestones advancing: Ajmera Manhattan Towers A and B reached the 8th and 9th levels, Ajmera Eden's 14th-floor slab is nearly the last, and Ajmera Vihara is in excavation with piling underway. Bangalore affordable projects Lugano and Florenza are ~90% sold and on fast-track execution.
• Handover commitment: Management committed to handing over all projects within a couple of quarters and delivering well ahead of RERA timelines.

Dhaval Ajmera: "If I do all three things simultaneously, my sales value or my sales potential becomes 3x rather than 1x so that is the whole game plan."

Capital & Funding

• ₹225 crore preferential allotment closed: The equity raise from marquee strategic investors is complete, with proceeds committed to debt reduction and growth funding. Management says the company remains well capitalized for its growth plans.
• Vikhroli PE deal structured without equity dilution: The Motilal Oswal transaction for the Tata Communications land parcel (3 lakh sq ft saleable area, ~₹650 crore top line expectation, ~₹250–300 crore project cost) carries a committed IRR cap, so there is no equity-level dilution.
• Cash generation estimated at ~₹2,300 crore over 3–3.5 years: Ongoing project completions contribute ~₹760 crore, launch project cash flows add to the pool, and other avenues including asset monetization bring ~₹330 crore. Management did not provide a total cash requirement figure for the pipeline.
• Debt cost edged up, but leverage improved: Weighted average cost of debt rose marginally to 12.22% due to project-level PE funding for acquisition and approval costs, while the debt-equity ratio improved to 0.85:1 despite aggressive business development.
• Partnerships open for capital-intensive commercial work: Management is open to project-level partners for Wadala commercial development and similar projects, seeking those who bring leasing support and credentials in retail, commercial or hospitality.

Nitin Bavisi: "It is a structured deal with a committed IRR. So, there is no, equity level dilution if I have read the question, and it is completely with the cap of the IRR as such."

Land Bank & Litigation

• Kanjurmarg litigation resolved: A PIL had wrongly demarcated the company's land, and the court has now issued an order clarifying the property is not part of any litigation. The approvals process has started and planning is nearly frozen, with a launch targeted for March-April 2025.
• Wadala SPV formalities complete: All NCLT-related steps for the 6.5-acre Wadala land SPV are done, and shares on demerger have been allotted to shareholders. The land is under master planning, with approval processes to start in the next few months, and management is open to partnerships for value addition.
• Land bank spans prime Mumbai micromarkets: Management listed owned or planned land banks at Kanjurmarg (66 acres), Wadala (100-acre layout with ~15–20 acres balance, 30 lakh sq ft sellable FSI), plus Vikhroli, Ghatkopar, Juhu, Versova, Borivali, Bandra, and Bhandup (8.3 lakh sq ft balance phase).
• South Mumbai land sale still in discussion: An analyst noted the land has been under discussion for 2–3 quarters as a debt-reduction lever. Management said a few offers have been received, some not to satisfaction and some still under evaluation, with high-ticket HNI transactions taking time for legal review. No timeline was given.

Dhaval Ajmera: "This property of ours did not have any litigation number one. Well, there was a PIL file, but our land was wrongly demarcated or earmarked in that suit, or the PIL, which we have already clarified in the court has given us the order to that effect accordingly."

Margins & Project Economics

• Portfolio margin guidance reiterated: Management expects ~30%+ EBITDA and sub-20% PAT margin across the portfolio, with cost models varying by project type.
• IRR ranges disclosed by project type: Own-land projects target 35–45% IRRs, redevelopment projects 25–30%, joint ventures ~30%, and slum/society redevelopment 20–25%. Management did not provide a weighted average or blended portfolio-level margin estimate when asked.
• No specific cost figure for the ₹4,270 crore pipeline: When an analyst asked for the estimated cost to complete the launch pipeline, management pointed to the general margin trajectory and said cost models vary project-to-project, without quantifying a total cost number.

Dhaval Ajmera: "For our own land banks... we are expecting, IRRs over there in the range of 35% to 45%... And when we look at redevelopment projects, we look at anywhere between 25% to 30%, if it's a joint venture also it's the range of 30% ish and outright is in the range of 25% to 30%."

Joint Ventures & Repatriation

• Rustomjee JV launch targeted for March 2025: The site has been vacated, permissions have been applied for and are expected in 2–3 months, with MahaRERA registration anticipated by February-March 2025.
• London repatriation underway: Some money has already been received, with ₹40–50 crore plus expected in the next few quarters.
• Bahrain recovery tied to building completion: The deal is structured to receive area against money due, and the company expects to sell that area once the building is ready, with money likely in late 2025 or early 2026.

Guidance & Commitments

Key Metrics