Arvind SmartSpaces Concludes Successful HCARE 1 Fund Partnership with HDFC Capital

Arvind SmartSpaces Limited and HDFC Capital Advisors successfully concluded their first platform through the HCARE 1 fund, delivering strong returns in just two-and-a-half years of operations. The funds invested by HCARE-1 have been repaid in full from the project cash flows driven by strong sales momentum and collections from the project.

The successful conclusion of this platform highlights the execution capabilities and brand equity of Arvind SmartSpaces. It also showcases the company's ability to create value for all stakeholders through strategic partnerships.

This achievement is particularly noteworthy given Arvind SmartSpaces' robust financial performance in FY2023-24. The company added several new projects across Ahmedabad, Bengaluru, and Surat, with a cumulative topline potential of approximately Rs. 4,150 Crore. This includes entering the Surat market with a Rs. 1,100 Crore horizontal multi-asset township project spread over 300 acres.

The successful conclusion of the HCARE 1 fund partnership and the company's strong financial results demonstrate Arvind SmartSpaces' commitment to creating value for its stakeholders and its ability to capitalize on emerging opportunities in the real estate market.

Read the Press Release  

Arvind Smart Spaces Annual Report 

Arvind SmartSpaces' annual report for FY2023-24 highlights a significant year of growth and financial improvement, with notable increases in revenue, net profit, and operational efficiency. The company has maintained strong financial health while expanding its project portfolio and market presence.

Financial Details:

The Annual report highlights key financial strengths know about some of them here. 

• Arvind SmartSpaces reported a 33% growth in consolidated revenue from operations to Rs. 341 Crore in FY2023-24.
• Profit attributable to equity holders increased by 62% to Rs. 41 Crore.
• The company recorded its highest-ever annual collections of Rs. 876 Crore, a 46% year-on-year growth.
• Net operating cash flows stood at Rs. 458 Crore in FY2023-24 compared to Rs. 201 Crore in the previous year.
• The company's net debt-to-equity ratio improved to -0.10 as of March 31, 2024, compared to -0.07 in the previous year.
• The board has recommended a final dividend of Rs. 2.50 per equity share and a special dividend of Rs. 1.00 per equity share, totaling Rs. 3.50 per equity share (35% payout).

Key Strengths:

Arvind SmartSpaces' annual report for FY2023-24 The company has strengthened its market presence with successful project completions and strategic developments.

• Strong brand reputation and credibility of the Arvind group
• Diversified portfolio across horizontal and vertical developments
• Robust project pipeline with a cumulative topline potential of Rs. 4,150 Crore added in FY2023-24
• Efficient execution capabilities leading to high collections and operating cash flows
• Prudent financial management with negative net debt position

Weaknesses:

Due to its small presence in select cities, the company sees it as a weakness but the company is working on increasing its geographic presence across India.

• Geographical concentration in Gujarat and Bengaluru markets, with limited presence in other major cities

Key Metrics:

The key metrics that shareholders look for in the company are given below 

• Bookings grew 38% year-on-year to Rs. 1,107 Crore
• Collections grew 46% year-on-year to Rs. 876 Crore
• EBITDA margin improved to 34.53% from 21.38% in the previous year
• Return on net worth increased to 12% from 9% in the previous year
  Revenue from Operations: Rs. 34,117.72 lakh, up from Rs. 25,591.68 lakh in FY2022-23.
• Net Profit: Rs. 5,109.08 lakh, an increase from Rs. 2,782.71 lakh in the previous year.
• Net Profit Margin: 36%, up from 32% in the previous year.
• Basic Earnings Per Share (EPS): Rs. 9.17, compared to Rs. 5.83 in FY2022-23.
• Diluted EPS: Rs. 9.09, up from Rs. 5.63 in the previous year.
• Current Ratio: 1.24 as of March 31, 2024, compared to 1.55 as of March 31, 2023.
• Debt-Equity Ratio: 0.17 as of March 31, 2024, down from 0.29 as of March 31, 2023.
• Return on Net Worth: 12%, up from 9% in the previous year

New Technology and Successful Project Completions:

The company in its annual report highlighted the use of new-gen techs in the realty sector.

• Arvind SmartSpaces has leveraged digital marketing initiatives, generating 25% of its revenue from online leads.
• The company has set up a state-of-the-art in-house call center with a 15-member dedicated team to enhance customer engagement.
• Key project launches like Uplands 2.0 & 3.0, Forest Trails, Arvind Orchards, and Rhythm of Life have been highly successful, contributing 70% of the company's booking value in FY2023-24.

Sustainability Initiatives:

The sustainability part of the report highlights the ESG  initiative that the company is actively implementing are given for FY2023-24

• The company consumed 47,173 kWh of renewable energy, a 6.25% increase from the previous year.
• Arvind SmartSpaces planted 9,000 trees and spent Rs. 75 Lac on CSR activities.

Future Outlook:

The future outlook that the report highlighted are given below. 

• Arvind SmartSpaces aims to sustain its historic growth rate of 30-35% across operating parameters.
• The company plans to launch new projects and phases valued at Rs. 2,000-2,500 Crore in FY2024-25.
• It intends to expand its presence in Bengaluru and Pune, while also entering the Mumbai Metropolitan Region.

The company will focus on maintaining an equal balance between horizontal and vertical developments, with a higher proportion of outright projects. Arvind SmartSpaces is well-positioned to capitalize on emerging opportunities in the real estate market, backed by its strong brand, execution capabilities, and prudent financial management.

Read the full report of Annual Report 2023 -2024  

Arvind Smart Spaces 

Arvind SmartSpaces is a prominent real estate developer in India, built on the 120-year legacy of the Lalbhai Group. Headquartered in Ahmedabad, the company has developed around 60 million square feet of real estate across the country, focusing on delivering valuable solutions that enhance the lives of its customers.

Backed by the strong Arvind brand and a track record of successful projects, Arvind SmartSpaces is well-positioned to maintain its growth momentum and create value for all stakeholders. The company has a presence in key markets like Ahmedabad, Gandhinagar, Bengaluru, and Pune, and aims to continue expanding its footprint.