Aditya Birla Real Estate (500040) Q1 24/25 earnings summary

Executive summary

• Q1 FY25 consolidated turnover rose 28% year-on-year to INR 1,140 crore, driven by strong real estate performance, but profitability was impacted by rising input costs and global supply chain issues.

• EBITDA declined 15% year-on-year to INR 125 crore, with an EBITDA margin of 11%.

• Net profit from continuing operations was INR 28 crore for the quarter.

• Board approved unaudited standalone and consolidated financial results for Q1 FY25 and a fund raise of up to ₹1,000 crore via NCDs.

• Strategic land acquisitions in Gurugram and Pune expanded the Real Estate portfolio with significant development potential.

Financial highlights

• Real estate segment revenue surged over 800% year-on-year to INR 338 crore, with bookings of INR 262 crore (up 27% year-on-year) and collections of INR 488 crore.

• Pulp and paper segment sales turnover decreased 6% year-on-year to INR 786 crore, with EBITDA at INR 55 crore and margin at 8.3%.

• Average net sales realization in paper, board, and tissue fell 14% year-on-year.

• Net debt stood at ₹2,906 crore as of June 30, 2024.

• Free cash flow for Q1 FY25 was negative at ₹-751 crore, reflecting high project development costs.

Outlook and guidance

• Anticipates significant growth in residential real estate, supported by stable economic conditions and robust investment.

• Plans to launch INR 12,000 crore of GDV in FY25, with annual GDV additions of INR 15,000-16,000 crore targeted.

• Real estate collections target for FY25 is INR 2,900 crore.

• Paper segment expects moderate demand revival in Q2, with board demand likely to improve during the festive season.

• Board approved fund raising up to ₹1,000 crore through NCDs to support growth and operations.