In picture ( Kamal Singal, MD & CEO, Arvind Smartspaces Limited.)
Arvind SmartSpaces, a listed real-estate company focusing on affordable housing, plans to invest Rs 1,000 crore in the next two-three quarters in Ahmedabad, Bengaluru, the Mumbai Metropolitan Region (MMR) and Pune.
Out of this, 70 percent will be invested in the company’s strongholds of Ahmedabad and Bengaluru and the remaining in MMR and Pune.
The company plans to construct residential homes, ranging from 1 BHK to 3 BHK, and plans to remain focused on the residential real-estate market in the four cities, at least for the next two years.
"In the next two-three quarters, we are looking to invest Rs 1,000 crore. Of this, Rs 300 crore has already been deployed in acquiring projects in Ahmedabad and Bengaluru,” Kamal Singal, Managing Director and CEO, Arvind SmartSpaces, told Moneycontrol.
Singal added that the company is debt-free and “broadly focused on Ahmedabad and Bengaluru. Now, we want to make an entry into MMR and expand around Pune. The focus is on horizontal construction between Lonavala and Pune".
“In MMR, we are open to the redevelopment of old buildings in some micro-markets outside Mumbai limits -- near Thane or even inside Mumbai in areas like Kandivli, Dahisar, etc. However, we are not looking at slum rehabilitation projects. But this ratio of investment demographics depends on a case-to-case basis,” he said
50:50 for holiday homes, residential housing projects
The company, which is into the construction of holiday homes and private villas, said its plans to remain focused on the construction of such spaces by balancing it out with the construction of residential projects in the markets they are active in.
Also read: Arvind SmartSpaces buys 35-acre land parcel in Pune for Rs 100 crore to set up luxury villas
According to Singal, 50 percent construction will be horizontal residential plots of second homes, holiday homes and villas and the remaining 50 percent will be vertical residential housing projects (some bit of commercial, only if needed in a large residential project)."
Arvind SmartSpaces is developing over 25 million sq ft real estate, spread across Ahmedabad, Gandhinagar, Bengaluru, and Pune. In Q3FY23, the company reported a profit after tax (PAT) of Rs 16 crore – up 47 percent from the corresponding quarter a year ago.
Its bookings grew by 24 percent YoY to Rs 558 crore, from Rs 451 crore last year.
Collections stood at Rs 412 crore compared to Rs 434 crore, and revenue from operations grew to Rs 163 crore, compared to Rs 96 crore last year. EBITDA (Earnings before interest, tax, depreciation and amortisation) grew by 6 percent to Rs 29 crore.
On January 30, Arvind Smartspaces was trading at Rs 291.40 at 12.36 pm on the National Stock Exchange, down 0.63 percent from the previous close.
