Ashiana Housing, a leading player in the real estate sector, is gearing up for substantial investments in the fiscal year 2023-24. With a targeted investment range of Rs 650-700 crore in both land and construction, the company is poised to reinforce its position in the market. The goal for FY24 includes achieving an area booking of Rs 1,500 crore, signaling the company’s commitment to robust growth.
FY24 Targets and Launch Plans
In a conversation with ETRealty, Vishal Gupta, the Managing Director of Ashiana Housing, discussed the company’s future plans. Gupta revealed that in H1 FY24, they accomplished an area booking of approximately Rs 752 crore, positioning them optimistically to meet their annual targets.
The market’s positive response, coupled with strategic launches in cities like Chennai, Jaipur, Gurugram, Bhiwadi, and others, further strengthens Ashiana Housing’s growth prospects.
The company launched around 1.5 million sq ft in H1 FY24, with plans to introduce an additional 1.5 million sq ft in the second half of the financial year.
Ashiana Housing aims to complete approximately 2.4 million sq ft of projects by the end of FY24, having already delivered 1.2 million sq ft in H1 FY24, resulting in a revenue recognition of Rs 423 crore.
Revenue Goals and Financial Health
Looking ahead, Ashiana Housing has set ambitious revenue targets, aiming to sell over Rs 12,000 crore of inventory in the next 5-5.5 years. Gupta emphasized that internal accruals and customer advances would primarily fund this growth. The company has already secured funding of Rs 225 crore from IFC, demonstrating external confidence in its plans.
As of September 30, 2023, Ashiana Housing’s financial health appears robust, with a net worth of Rs 729.70 crore, a debt-equity ratio of 0.20, and impressive operating and net profit margins.
The investment focus for FY24 includes allocating Rs 650-700 crore for both land and construction. Over the next three years, the company plans to invest Rs 500 crore from its own funds in acquiring land.
Ashiana Housing aims to expand its sellable inventory from the current 10 million sq ft to an additional 7-8 million sq ft. With a strategic focus on cities where it already has a presence, including Gurugram, Pune, Chennai, Jaipur, Jodhpur, Jamshedpur, and Bhiwadi.
Notably, Ashiana Housing is eyeing growth in the senior living segment and plans to extend its presence in cities like Bengaluru, Mumbai, Pune, and Hyderabad.
Gupta highlighted the company’s expertise in the senior living segment and the potential for higher margins, with senior living expected to contribute around 33% to overall revenue in the next five years.
Market Dynamics and Pricing
The average price realization has seen positive growth, with an increase from Rs 5,080 per sq ft in the last financial year to approximately Rs 6,100 per sq ft in the current financial year.
This growth is attributed to the market dynamics and the company’s ability to enhance product offerings, allowing it to command higher prices in various projects.
In conclusion, Ashiana Housing’s strategic investments and growth plans for FY24 position the company as a key player in the real estate landscape.
With a focus on diverse segments and strategic expansions, the company aims to not only meet its immediate targets. But also pave the way for sustained growth in the coming years.
