Aditya Birla Real Estate (500040) Q2 24/25 earnings summary

Executive summary

• Consolidated turnover from continuing operations grew 32% year-on-year to INR 1,121 crores in Q2 FY25, with EBITDA up 50% year-on-year to INR 99 crores and net profit from continuing operations at INR 13 crores.

• For H1 FY25, consolidated turnover rose 30% year-on-year to INR 2,260 crores, EBITDA increased 5% to INR 223 crores, and net profit from continuing operations was INR 40 crores.

• Real Estate business delivered a 99% YoY increase in booking value and a 157% YoY rise in collections, with major project additions in Mumbai and Gurugram.

• Pulp & Paper segment saw sales volume up 13% year-on-year, but EBITDA declined 22% year-on-year due to lower net sales realization and higher input costs.

• Board approved unaudited standalone and consolidated financial results for the quarter and six months ended 30th September 2024.

Financial highlights

• Q2 FY25 turnover: INR 1,121 crores, up 32% YoY; EBITDA: INR 99 crores, up 50% YoY; PAT: INR 13 crores, up 218% YoY from continuing operations.

• H1 FY25 turnover: INR 2,260 crores, up 30% YoY; EBITDA: INR 223 crores, up 5% YoY; PAT: INR 40 crores, down 5% YoY.

• Birla Estates revenue surged 500% YoY to INR 254 crores in Q2 FY25, with an EBITDA margin of 11%.

• Bookings for launched projects reached INR 1,412 crores, and collections were INR 644 crores in Q2.

• Net debt outstanding as of 30th September 2024: INR 3,874 crores.

Outlook and guidance

• Management remains positive on the real estate sector, expecting robust demand from HNIs, NRIs, and urban elites to continue.

• Pre-sales guidance for FY25 is maintained at INR 7,000–8,000 crores, with confidence in achieving this through new launches in H2.

• Real estate prices are not expected to decline, with further upside anticipated in key markets like Mumbai, Bangalore, and NCR.

• Pulp & Paper outlook remains challenging, with no significant cash flow expected for FY25 and profits likely below 50% of last year.