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

Executive summary

• Consolidated turnover grew 28% year-on-year in Q1 FY25, reaching up to ₹1,542 crore, driven by strong real estate performance, but margins declined due to rising input costs and global supply chain issues.

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

• Net profit from continuing operations was ₹28 crore for the quarter, while consolidated net profit reached ₹17.35 crore.

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

• Strategic land acquisitions in Gurugram and Pune added significant GDV to the portfolio.

Financial highlights

• Real estate segment revenue surged over 800% year-on-year to ₹338 crore, with bookings up 27% and collections up 32% YoY.

• Paper segment sales turnover declined 6% year-on-year to ₹786 crore, with EBITDA 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 continuing operations was negative at ₹-739 crore in Q1 FY25.

Outlook and guidance

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

• Plans to launch ₹12,000 crore of GDV in FY25, with annual additions of ₹15,000-20,000 crore GDV targeted.

• 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.