Ahmedabad-based Arvind SmartSpaces on Friday posted a 190% year-on-year (y-o-y) increase in its consolidated profit after tax (PAT) to Rs 7.2 crore in the first quarter of the current financial year. It had posted a PAT of Rs 2.5 crore during the same period of FY22.
The Lalbhai group company also announced plans to create a Rs 900-crore residential development platform in association with HDFC Capital Advisors.
As per the company’s regulatory filing, its revenue from operations grew by 124 % y-o-y to Rs 60 crore compared with Rs 27 crore last year. Ebitda grew by 31% and touched Rs 11 crore against Rs 8 crore last year. Bookings grew by 8% y-o-y at Rs 118 crore from Rs 110 crore.
The company said its board has approved the creation of a Rs 900-crore residential development platform with HDFC Capital Advisors as investment manager of HDFC Capital Affordable Real Estate Fund – 3 (HCARE-3). The proposed investments by Arvind SmartSpaces and HCARE-3 for the platform are Rs 300 crore and Rs 600 crore, respectively. The funds will be utilised for acquisition of new projects for residential development in Ahmedabad, Bengaluru, Pune and MMR.
The company will set up a separate SPV to house the projects under this platform. The platform will create an overall revenue potential of Rs 4,000-5,000 crore, excluding reinvestment potential, it said.
“We are constantly exploring innovative sources of capital to augment project pipeline and overall growth. The proposed platform with HDFC Capital will help exponentially grow our footprints in targeted geographies and in turn expected to create significant value for stakeholders,” Kulin Lalbhai, director, Arvind SmartSpaces, said.
MD and CEO Kamal Singhal said Arvind SmartSpaces is already in advanced stages of finalisation of two projects and it further expects 4-5 more such projects within the platform over the next 12 months. The platform is expected to generate significant upside to the firm’s project pipeline while efficiently managing the risk profile of the balance sheet.