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 the quarter.

• 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, driven by robust demand and strategic project additions.

• The company officially changed its name to Aditya Birla Real Estate Limited, reflecting a strategic focus on expanding its real estate portfolio.

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

Financial highlights

• Birla Estates revenue surged 500% year-on-year 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.

• Q2 FY25 turnover for continuing operations was Rs. 1,121 Cr, up 32% YoY; EBITDA reached Rs. 99 Cr, up 50% YoY; PAT was Rs. 13 Cr, up 218% YoY.

• H1 FY25 turnover was Rs. 2,260 Cr, up 30% YoY; EBITDA at Rs. 223 Cr, up 5% YoY; PAT at Rs. 40 Cr, down 5% YoY.

• 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.

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.

• Indian residential real estate market is projected to maintain robust demand, especially in Tier-1 and emerging Tier-2 cities.