Aditya Birla Real Estate Ltd has delivered a strong financial performance in Q2 FY25, with notable gains in total income and expansion in the real estate business. The company, formerly known as Century Textiles and Industries Limited, continues its focus on growth and strategic investments across key regions.
Income and Profit Overview
The company reported a total income of ₹1,130 crore for Q2 FY25, representing a 30% year-on-year (YoY) growth compared to the same period last year. Net profit for the quarter reached ₹2.82 crore, a significant improvement from the loss of ₹32.87 crore in Q2 FY24. However, profits experienced a quarter-on-quarter (QoQ) decline of 83.8%.
Rising Expenditures
Aditya Birla Real Estate’s expenditures increased by 27.81% during the quarter, totalling ₹1,111.62 crore. This surge was largely driven by higher costs related to land acquisition, construction, and other real estate development activities. The company also reported a negative operating cash flow of ₹1,254 crore from its ongoing operations. The company’s earnings before interest, taxes, depreciation, and amortisation (Ebitda) rose by 50% YoY, reaching ₹99 crore. As of September 30, 2024, the company had a net debt of ₹3,874 crore, highlighting its significant investment in growth and development.
Growth in Real Estate
The real estate arm, Birla Estates, saw a substantial rise in its contribution to total income, with sales reaching ₹253.56 crore in Q2 FY25. Real estate now accounts for 23% of total revenue, up from 5% in the previous year. Additionally, bookings for the real estate business surged to ₹1,412 crore, almost doubling compared to Q2 FY24.
Strategic Expansion Plans
The company is aggressively expanding its real estate portfolio with new projects in the Mumbai Metropolitan Region (MMR) and Gurugram. Key developments include:
- Acquisition of a 10-acre land parcel in Worli, MMR, valued at ₹14,000 crore.
- Acquisition of a 5-acre land parcel in Gurugram, NCR, with a gross development value (GDV) of ₹1,400 crore.
- Upcoming projects across MMR, NCR, Bengaluru, and Pune, covering 25.4 million square feet (MSF), with an estimated GDV of ₹53,101 crore.
The company aims to add ₹8,550 crore to its GDV in FY25 through strategic projects.
Aditya Birla Real Estate continues to strengthen its presence in India’s key real estate markets, focusing on long-term growth. With robust expansion plans, the company is well-positioned for further income and profit growth in the coming quarters.
