Ajmera Realty & Infra India Ltd

Building for the future, progressing sustainably

I am pleased to present the performance overview of ARIIL for the FY 2024. Consistent with our established tradition, this year has seen continued enhancement of our rich legacy, marked by firm commitment to excellence in all our endeavours.

Dear Shareholders,

Since our inception, our dedication to build unmatched commercial and residential structures has garnered substantial market traction. Today, we stand as one of India's foremost real estate companies, having successfully delivered more than 46,000 homes. Our reputation for excellence in execution and strict adherence to timelines has fostered deep trust among our customers, inspiring us to constantly enhance our quality and services. Our commitment to robust governance and construction practices are propelling us towards a future, characterised by enriched experiences and unparalleled homes and spaces.

Macroeconomic landscape evolution in India

The Indian economy remains on the path of remarkable progress, fuelled by the combined strength of robust domestic demand, strategic investments, and comprehensive Government reforms. Rising aspirations, increasing urbanisation, and surging young working population continue to play key roles in driving India's upward growth trajectory. Moreover, private consumption and investments are also driving the positive momentum, reflecting the resilience of domestic demand. Additionally, the supply side is boosted by substantial investments in both physical and digital infrastructure, coupled with initiatives aimed at enhancing manufacturing capabilities, thereby significantly stimulating economic activity across the country.

Promising outlook for the Indian real estate sector

The Indian real estate sector is characterised by steady growth and strong sales volumes, instilling confidence in homebuyers. Continuously adapting to the evolving market demands and changing stakeholder aspirations enable the sector to retain its dynamism in the face of challenges. With the same sense of enthusiasm, we step into 2024, which is expected to be a transformative year for our industry. In such thriving landscape, it is important to anticipate the potential pathways shaping the sector's next phase of evolution.

According to Knight Frank Research, the sector is expected to grow to US$ 1.02 trillion by 2030, contributing 7.3% to the total economic output, driven by favourable market conditions, shifting consumer sentiments, and innovative strategies.

Opportunities in our core markets

Our core operating regions, namely Mumbai and Bengaluru, a myriad of opportunities awaits us. The infrastructure development initiatives in and around Mumbai have their own ripple effect in terms of enhanced scope for real estate sector. The recent inauguration of the Mumbai Trans Harbour Link and the Atal Setu bridge, coupled with the imminent opening of the coastal road and ongoing metro expansions, are catalysing substantial growth within the sector across various regions. We are witnessing this momentum firsthand in our projects, contributing to the overall vibrancy and dynamism of the real estate market.

Meanwhile, a sustained surge is observed in the real estate scene in Bengaluru, stimulated by a wide gamut of factors, including the thriving IT sector, burgeoning start-up ecosystem, persisting remote work trends, and ongoing infrastructure development.

The city is seeing a surge in the construction of high-end office spaces and expansive residential units to accommodate the demands of multinational corporations. Add to that the ongoing infrastructure upgradation, including new roads and metro lines, enhancing connectivity and elevating property values. With such positive developments, the Bengaluru market is well-poised for sustained growth in the future.

Maintaining a track record of steady growth

The FY 2024 marked robust growth across various financial indicators, as we achieved remarkable milestones in sales, revenue, and collections.

During the year under review, we demonstrated remarkable progress across several projects, reaching significant milestones. Potential launch of 8 projects and its quick turnaround time symbolise the efficiency and dedication of our Company.

Moreover, we have a portfolio of six projects, aligning with our low capex strategy through JV/JDA/DM/ redevelopment models.

Our sales soared to '1,017 crore in FY 2024 compared to '842 crore in FY 2023, clocking an impressive growth of 21%. This momentum in sales is primarily driven by our key projects, Ajmera Manhattan in Wadala and Ajmera Eden in Ghatkopar.

Collections for the year under review surged by 7% to '570 crore in FY 2024 as opposed to '532 crore in FY 2023, propelled by our unshakable focus on revenue realisation.

Meanwhile, our revenue generation witnessed significant upsurge, climbing up by a stupendous 61% from '441 crore in FY 2023 to reach '708 crore in FY 2024. Furthermore, our EBITDA increased by 56% from '134 crore in FY 2023 to '209 crore in FY 2024. Moreover, our

Profit After Tax (PAT) witnessed a substantial 44% increase to '103 crore in FY 2024 as opposed to '72 crore in FY 2023. Encouraging is our EBITDA and PAT margins, that stood at 30% and 15%, respectively.

We continue to prioritise the delivery of high-quality ongoing projects ahead of RERA timelines, ensuring timely launches, and expanding our portfolio.

Driving execution excellence across projects

During the year under review, we demonstrated remarkable progress across several projects, reaching significant milestones. Potential launch of 8 projects and its quick turnaround time symbolise the efficiency and dedication of our Company. Moreover, we have a portfolio of six projects, aligning with our low capex strategy through JV/J DA/ DM/ redevelopment models. This has expanded our launch pipeline to 1.9 million sq. ft., with a Gross Development Value (GDV) of '4,570 crore.

Building a portfolio for future growth

I am thrilled to announce that we are making rapid strides to attain our 5x growth milestone, and are confident of surpassing our target sooner than expected, buoyed by the progress of our current projects and the launch of 8 new ones.

We are strategically building a robust pipeline for future growth, harnessing a balanced and sustainable approach, combining organic and inorganic strategies.

Through an organic approach, we are unlocking the potential of our owned land bank in Mumbai, having the capacity for 11.1 million sq. ft. of development. Furthermore, we streamlined the development process to introduce phases according to market dynamics, ensuring greater agility and responsiveness.

On the other hand, the inorganic approach allows us to aggressively expand in established markets with strong brand recognition.

This includes actively evaluating asset-light joint venture (JV) and joint development agreement (JDA) structures, alongside pursuing attractive acquisition opportunities.

The strategic locations of our properties and land banks offer a significant advantage in today's world where access to mobility is the key to enhanced quality of life. Our diverse offerings across premium, compact luxury, and affordable residential segments, as well as boutique commercial developments, empower us to serve a wide cross-section of customers, thereby maximising our overall customer base.

Broadening our ESG commitments

We stand out in the real estate market for our commitment to innovation, quality, and sustainability. We infuse excellence in design, functionality, and environmental stewardship within the homes and commercial spaces we craft, leveraging cutting-edge technologies and industry best practices. Deeply dedicated to sustainability and green living, we are firm on continuously reducing our environmental footprint through responsible operations.

Projects launched recently are the embodiment of our commitment to environmental stewardship, as we aim for their Green Building status. In FY 2024, we became a founding member of the Indian Green Building Council (IGBC) and initiated the green building certification process for our ongoing projects. Moreover, our growing adoption of comprehensive policies, encompassing sustainability, procurement, cybersecurity, human resources, and administration symbolise our sharp focus on holistic development.

Moreover, we cultivate a people- centric culture that prioritises the well-being and continuous growth of our personnel. Various training and development opportunities are tailored for our employees, as we continue to emphasise on people engagement programmes to foster a motivated workforce. Additionally, our commitment to community development is evident in initiatives such as building Mumbai Mobile Creches, supporting dam construction, aiding tribal youth education, reducing blindness among poor tribals, and providing financial aid for healthcare. Furthermore, we strive to embed a culture of integrity, fairness, and long-term sustainability across our organisation by deploying robust governance frameworks and policies.

Acknowledgment

As we conclude another successful year, I take this opportunity to express my heartfelt gratitude to all our esteemed customers, employees, shareholders and other key stakeholders for your association in our journey. Your unflinching trust and support remain instrumental behind our success, inspiring us to aim higher.

As we progress forward, our commitment to deliver excellence, embrace sustainability, and generate greater value for all remains resolute. Together, we are on our course to shape a brighter and more prosperous future for ARIIL and all our stakeholders.