Ashiana Housing Limited (523716) Earnings Call Transcript & Summary

Ladies and gentlemen, good day, and welcome to Ashiana Housing Limited Q1 FY '26 Earnings Conference Call. [Operator Instructions] Please note that this conference is being recorded. I now hand the conference over to Mr. Kanav Khanna from E&Y. Thank you, and over to you, sir.

Thanks. Thanks, Palak, and welcome, everyone, and thank you for joining the Q1 FY '26 earnings call for Ashiana Housing Limited. The results and the investor presentation has been mailed to you, and it is also available on the stock exchanges. In case you have not received the same, kindly write to us, we'll be happy to send it over. Now to take us through the results of the quarter and answer to all of your queries, we have with us Mr. Varun Gupta, Whole-Time Director; and Mr. Vikash Dugar, CFO. We will start the call with a brief overview of the company's performance for the quarter and then follow it up with Q&A. I would like to remind you that everything said on this call that reflects an outlook for the future or which may contain a forward-looking statement must be viewed in conjunction with the uncertainties and risks as they face. These uncertainties and risks are included, but not limited to what we have mentioned in the prospectus filed with SEBI and subsequent annual reports, which you will find on our website. With that being said, I would like to hand over the call to Mr. Dugar. Over to you, sir.

Thank you, Kanav. Good afternoon, everyone. I hope you and your loved ones are keeping well. I welcome you all to our Q1 FY '26 earnings call, and thank you for taking the time to join us today. Q1 FY '26 has been a quarter of steady operational progress for Ashiana, marked by consistent sales performance and strong cash flow generation. We achieved value of area booked of INR 430.97 crores for the quarter, up 83.14% from Q1 FY '25, to INR 35.32 crores. This growth was driven primarily by higher volume of sales and also better price realization due to both product mix change and also general upward price revisions. We continue to expand our portfolio across regions with launches during the quarter, including Ashiana Tarang Phase 6 in Bhiwadi and Ashiana Aravali in Jaipur. Equivalent area constructed for Q1 FY '26 was at 6.15 lakh square foot, higher by 25% vis-a-vis 4.91 lakh square feet in Q1 FY '25. Total revenue for Q1 FY '26 came in at INR 302.72 crores, higher from INR 128.51 crores in Q1 FY '25. Profit after tax for Q1 FY '26 stood at INR 12.72 crores compared to loss of INR 5.45 crores in Q1 FY '25, higher revenue and profit attributable to higher deliveries. The company posted its pretax operating cash flows at INR 108.1 crores during the quarter. We also initiated handovers for Ashiana Anmol Phase 2 in Gurugram and Ashiana Shubham Phase IV B in Chennai during the quarter. With this, I conclude my opening remarks and look forward to your questions and suggestions. Thank you.

[Operator Instructions] The first question is from the line of [ Abhishek ] from [ SNS ] Capital.

Sir, my first question is regarding, actually there were a few questions which I dropped out into the mailbox, which is Investor Relations mail ID, that was almost a month back. I have given like multiple follow-ups, but I don't think it's being checked out. Like is it possible I can get a response on them? I have sent one more follow-up yesterday.

Yes. Abhishek, thank you for sharing. Can you also share your e-mail address right now on the call? So in case you don't have it for some reason, we will write to you to send it to us. What's your e-mail address, please?

Sure. That goes by the name [ charlieabhishek97@gmail.com ].

Okay, charliebhishek97@gmail.com. Somebody will get back to you, Abhishek. You can ask whatever questions you would like to ask here as well. Please go ahead.

Sure, sure. There was actually just one question specifically, which I want to check. What are we doing to increase the visibility of our brand? And the question -- the background about the question is like it's coming from a brand like Antara, which is showcasing their project on a global scale by participating in events like Ageing Asia, World Ageing Festival, I believe. So -- and they have won quite a few awards over there. I've even sent out the link over the e-mail. But yes, that's what I wanted to check that what exactly are we doing to increase the visibility of our brand on a global scale rather than just on the national level as of now?

Can I ask what's the context of it, Abhishek, as well? Why do you ask this?

So I was going through this particular website for the Ageing Asia, and I found out about Antara brand. And they're also in the senior living. So because I know that we also have an ambition of going full throttle on the Ageing Asia, the senior living vertical. So that's where my question was coming from.

Okay. So 2 things, we were also there at Ageing Asia. I don't know why you can't see it at the website. My brother was a speaker there, who leads that. So one of the things that we are doing visibly there is we do speak at a few conferences. We being my -- basically my middle brother, Ankur Gupta, who represents us at these forums and who speaks around. And we go ahead and do that. That said, I think nationally, we have been rated #1 senior living brand for 9 times in a row by one of the leading real estate magazine called Track2Realty. And they do independent research without calling for any invitations or any sponsorship. So it's sort of a very independent rating of the brand. And second, as a senior living brand, in whichever market we are in, as a brand, we stick out and we resonate well with the branding. So overall, senior living branding in the markets we are present in is actually quite strong and a positive feature for us to be able to drive sales volume and sales prices as well.

The second question what I had is specifically about from a geography perspective is which all states do we have right now or where we are scouting for an opportunity? I know that from the last con call, you said Bangalore, we are doing something, we're in process. But apart from Bangalore and Chennai, do we have an aspiration to be…

So right now, there are 4 focused senior living markets, the NCR, the Bombay-Pune area, trying to cover both those regions into one, but -- or if you want to tap that as 2 markets, both of those, Chennai and Bangalore. We have active projects in NCR. We have active projects in Chennai and Talegaon. We have entered into an agreement to purchase a land in Panvel as well for senior living to service Bombay a little bit more from a closer perspective. And Bangalore, we have an MOU for a potential JDA. So those are the markets where we see potential for this product and a bigger potential for this product going forward. And that's what we are aiming to do.

Nothing as of now in the Hyderabad area, right?

Nothing in the -- as of now in the Hyderabad area. We have just started exploring the market. We have not even started quoting. We have not figured out micro markets. The process of exploration of Hyderabad has started. And so if the next market we'll go to is probably going to be Hyderabad, if we go there. Fair enough. So it will fit in our list. So now we have started exploring.

[Operator Instructions] The next question is from the line of Viraj from SiMPL. Sorry to interrupt you, sir. Your voice is breaking and you're not audible also, sir. Sir, can you please use your handset?

Yes, I'm using the handset only. So am I audible now?

Yes, sir, please go ahead.

Yes. So first question is, so have we -- if you can just give some perspective, are the low-margin projects now out of the system? Or should we see some impact of those still continuing in coming quarter?

So we have one phase of Ashiana Anmol left and we have Ashiana Malhar. Ashiana Malhar, all phases are left to be delivered. So those 2 -- so Phase 3 of Anmol and Malhar, which are the low-margin projects which remain. But the percentage issues now next financial year onwards, annually, the impact will be very, very small because you'll just see Malhar from next year financial year onwards, will be done with Anmol. So we expect to see margin profile to improve in this financial year on a full year basis significantly and then continue to improve in the next year as well, the margin profile.

Second question is, see, in terms of unsold inventory, it's now almost INR 1,300 crores. So it could be recently launched projects, but still I just want to understand how should we view that? And how is the management looking at this?

What are you talking about? The INR 1,308 crores, you said, I couldn't hear that figure. You're talking about the unsold inventory of under construction.

No, finished unsold inventory.

Finished unsold inventory. Okay. And what number did you say again, please?