New Delhi Based Ashiana Housing Plans Strategic Investments for 2024

New Delhi based real estate development company, Ashiana Housing has announced its intention to invest between Rs 650-700 crore in land and construction in the financial year 2023-24. The company aims to achieve an area booking of Rs 1,500 crore in FY24 and plans to expand its footprint by an additional 7-8 million sq ft in the next three years.

Vishal Gupta, the managing director of Ashiana Housing outlined the company's performance in the last financial year, noting an area booking of Rs 1,313 crore and setting a target of Rs 1,500 crore for FY24.

Gupta expressed optimism about meeting these targets given the current market response.

Project Launches and Deliveries

Ashiana Housing has a robust lineup of project launches, including two in Chennai, three in Jaipur, and additional phase launches in Gurugram, Bhiwadi, and other cities. The company launched around 1.5 million sq ft in the first half of FY24 and plans to launch another 1.5 million sq ft in the second half.

Regarding project completion, the company intends to hand over about 2.4 million sq ft this financial year, having already delivered 1.2 million sq ft and recognized revenue of Rs 423 crore in H1 FY24.

Revenue Growth and Financial Strategy

In the coming 5-5.5 years, Ashiana Housing targets selling over Rs 12,000 crore of inventory. Gupta explained that most of this growth would be self-financed through internal accruals and customer advances. As of September 30, 2023, the company's financial health was strong, with a notable debt-equity ratio and healthy operating margins.

Investment Plans and Land Holdings

For the current financial year, the company plans to invest in land and construction, amounting to Rs 650-700 crore. In the next three years, about Rs 500 crore of the company's funds will be invested in acquiring land. Ashiana Housing has also secured funding of Rs 225 crore from IFC. The company currently has a sellable inventory of about 10 million sq ft and plans to add another 7-8 million sq ft over the next three years.

Price Realization and Market Segmentation

Gupta noted that the company's average price realization last financial year was Rs 5,080 per sq ft, which has increased to around Rs 6,100 per sq ft this year. The company's real estate portfolio is segmented into premium homes, senior living, and kid-centric homes, with a focus on expanding the senior living segment due to its higher growth potential and margins.