Arvind SmartSpaces logs strong Q3 numbers led by robust growth in fresh sales at Rs158cr; Stock surges 5%

Arvind SmartSpaces

Arvind SmartSpaces Limited (ASL), one of India’s leading real estate development company hass announced its financial results for the quarter and nine months ended on December 31, 2021. The Company reported a strong growth in fresh sales at Rs158cr for the quarter aided by a set of successful launches of new phases in its existing projects in Ahmedabad.

The Company also reported a jump of 47% in its net collections of Rs154crfor the quarter versus the same quarter of the previous year. Net Interest bearing funds to equity ratio of the Company stands at (0.21) as on Dec-21 vis-à-vis 0.68 as at Dec-20.

The Company also reported its entry into the Bhugaon micro-market in Pune through the signing of a binding agreement for 35 acre parcel of land on outright purchase basis. This would be the 2 nd project for the Company in Pune.

At around 9:19 AM, Arvind SmartSpaces was trading at Rs246.20 per share higher by 4.97% on the BSE.

Key Highlights of Consolidated Financial Results for YTD Dec FY22 and Q3FY22:

  • Fresh Sales: 40% Growth at Rs451cr for YTD Dec FY22 & 10% Growth at Rs158cr for Q3FY22

  • Revenue: 13% Growth at Rs95.6cr for YTD Dec FY22 & 3% decline yoy at Rs42.9cr for Q3FY22

  • PAT: Rs11.1crs Up by Rs8.9cr vs LY for YTD Dec FY22 & 18% Growth yoy at Rs5.9cr for Q3FY22

  • Collections: 126% Growth at Rs434cr for YTD Dec FY22 & 47% Growth at Rs154cr for Q3FY22

  • Unrecognised Revenue: Rs1035cr as on Dec 31, 2021 vs. Rs641cr as on Dec 31, 2020
Commenting on the outcome of the Board Meeting, Kamal Singal, Managing Director and CEO, Arvind SmartSpaces commented, “We are extremely delighted to announce our second project in Pune market as we recently finalized a binding agreement for an outright purchase of 35 acres of land. This will be our first large horizontal residential development project in the city. After Bangalore and Ahmedabad, Pune and MMR are our new growth markets and we intend to increase our footprint in these markets by investing aggressively as part of our current investment cycle.”

Director Singal further added, “The real estate segment has seen a strong revival with double digit growth in sales volume and launches during the quarter. Driven by strong product portfolio and some very successful recent launches, our fresh sales have continued to show a strong momentum with a growth of 10% yoy during Q3FY22 and 40% yoy during YTD Dec FY22.

Our strong performance on collections coupled with proceeds from equity issuance on preferential basis to HDFC Capital Advisors and Promoters has enabled us to bring down our Net debt levels to negative at (0.21) which gives us a strong headroom to fund our next wave of growth. The Company is well poised to enter into next cycle of investments in new projects owing to very strong internal accruals, increased equity base and significant headroom available to raise fresh debt.”

“The markets continue to perform strongly with volumes in the second half of the last calendar year equaling the highs last seen in the beginning of 2016. Developers with strong brand, corporate governance frameworks and strong execution track record will stand to benefit greatly from this resurgence in demand. The company is well poised to take advantage of such positive tailwinds and currently focused on investing in medium and large scale projects with state of the art designs and solutions.

The recent addition of three new large-scale projects, the one at Devanahalli under HDFC Platform, another large residential villa project at Sarjapur, Bangalore and now at Bhugaon, Pune, indicate the beginning of our post pandemic fresh investment cycle. This is in line with our strategy of investing heavily in Pune and MMR markets besides deepening our penetration in our key geographies of Bangalore and Ahmedabad.” Singal said.

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