Arvind SmartSpaces Ltd reported a strong growth in fresh sales at Rs. 158 Cr 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 Rs. 154 Cr for 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 has now forayed 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 2nd project for the Company in Pune.
Commenting on the developments Kamal Singal, Managing Director and CEO, Arvind SmartSpaces said, “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.”
Sharing his views on the company’s performance Singal 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 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.”
Expressing his thoughts on the sector Singal stated, “The markets continue to perform strongly with volumes in the second half of the last calendar year equalling 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.”
