Ashiana Housing Q3FY17 Concall Summary

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Quarterly Operations Data

Ashiana Housing Q3FY17 Operational Data

FInancial Highlights

Ashiana Housing Q3FY17 FInancial Summary
  • PAT was at 15.93 crores in Q3 as compared to 0.04 crores in Q2
  • Pre tax operating cash flow of Q3 were negative at 5.61 crores due to lower collect
  • Equivalent area constructed increased to 4.94 sq. feet in Q3 as compared 4.81 sq Feet in Q2

Quarterly Sales Trend

Ashiana HOusing Quarterly Sales Trend

Project Wise Cash Flow Position in Ongoing Projects

Ashiana Housing Ongoing Projects Q3FY17

Ongoing Projects Update

Ashiana Housing Ongoing Projects Update
  • Project from Ashiana Navrang is completed & has got decent occupancy in the rentals.
  • Project Ashiana Nirmay may have some bookings which could not be concluded in October
  • Project Anantara had very negligible stock in the beginning but have completely sold out.
  • The projects in Jaipur have house 1140 with carpet area of around 950 super built up

Cashflow Position of Ongoing Projects

Ashiaha Housing ONgoing Project Cashflow Q3FY17
  • Out of total saleable area of 39.21 lacs sqft, 24.49 lacs sq ft(62%) has been already constructed
  • Out of the total area booked so far, an amount of RS 200 Cr is to be received in due course in future

Saleable Area vs Constructed Area

Future Projects Summary

Ashiana Housing Q3FY17 Future Projects

Demonetization effect

  • The Bookings for the months of Oct, November, December were 92000 sqft, 36000 sqft, 11000 sqft. This was mainly due to demonetization
  • Booking area dropped to 1.39 lac sq feet as compared to 2.63 lac sq feet last year
  • Handed over 4.46 lac sq feet in Q3 as compared to 3.76 lac sq feet last Q2
  • Numbers in November & December are particularly weak. Only in next Quarter momentum might pick up

Regulatory Update

  • RERA regulation applicability from May 1. The applicability is 3 months from the date of notification. It might be deferred by a month or 2 month 
  • RERA will not have substantial impact because the company is equity funded & does not divert customer advances to new projects. Therefore there wont be any large structural cost angle to the company.   
  • The government has announced housing project scheme & there is still clarity needed on the provisions like when it will be applicable i.e from January 1. Only after the state elections there will be clarity
  • The JDA taxation provisions have been subject to much litigation, how capital gains will be charged when it will be charged, and this was subject to much drafting in the agreement. It kept away some risk averse owners from going around a JDA route which would go you know, we just rather sell we do not want to take this you know taxation charge. Alternatively if tax structuring route is not taken then there will be many incidence of capital gains. The capital gains is exempt only for individuals & HUF. It does not apply for companies & Partnership
  • The 60 sq meter limit has been set by the recent budget will affect the existing inventories as some tweaking has to be done only from the point of view of 80IB
  • The government decision to restrict loss on the buying of second home is negative. It does not impact as the amount of rent & the amount of interest will be around 2 lac maybe 2.5 lacs & 1.5 lacs in some case. But if the property is expensive then it definitely has the impact
  • The interest subvention scheme will have positive impact. No specific details on the same. General expectations are positive because it should subsidize their purchasing of homes and therefore the increase in affordability
  • The state has not kept the growth of the country. The state capacity has not kept paced with both the scale of the economy. The legal & regulatory hurdles have become more challenging over the last 10 years

Business Update

  • A project cycle is usually about 7 years from acquisition to approvals to complete executions of the project.
  •  The prices are down 10-25% particularly in the higher price market. Also depending on the location the prices have come down
  • MAT will apply to the company as a whole. A project can have full taxation & one project exempt under 80IB, MAT will be payable on the combination of the two.
  • Construction costs are on the rise. It varies between 1250 to 1850 to 1900 sq feet in case of Lavasa were the costs are significantly higher, but otherwise it would be around 1500 sqfeet
  • Supply has been reducing over the last 6-7 quarters. Launches have been lower. Supply has been crunched in many ways given the cyclical nature of the industry plus there are delays. RERA hopefully checks reduction & supply
  • In kolkata there are issues due to township approvals. Need more Bengal shriram to do the activities