Ashok Chhajer, Chairman, Arihant Superstructures Ltd., is a young and dynamic entrepreneur with 20 years of varied experience across sectors like Edible Oil Refinery, Textiles and Real Estate. Established in 1994, Arihant Group is one of Navi Mumbai’s premier real estate developers - with bigger, more challenging projects being added year after year. The group provides stylish and comfortable living to more than 3,000 happy families across Navi Mumbai. The group has presence across all residential segments, from low end to premium housing – Rs. 2 million to Rs. 15 million. Synonymous with consistent excellence, Arihant group has transformed the skyline of Navi Mumbai with epitomes of verve since its inception. Arihant Superstructures Ltd. (ASL), the flagship company and a BSE listed company, is ISO 9001:2008 certified.
Established in 1988, the Arihant Superstructures is one of Navi Mumbai’s premier real estate developers - with bigger, more challenging projects being added year after year. The Group provides stylish and comfortable living to more than 2200 happy families across Navi Mumbai. Arihant Group has emerged as one of the largest developers in Navi Mumbai. The Group has presence across all residential segments from low end to premium housing – Rs2 million to Rs15 million. Synonymous with consistent excellence, Arihant group has transformed the skyline of Navi Mumbai with epitomes of verve since its inception in the year 1988. Arihant Superstructures Ltd. (ASL), the flagship company and a BSE listed company, is ISO 9001:2008 certified. Arihant is also a registered member of MCHI & Builder Association of Navi Mumbai for delivering speckless quality time and again.
Replying to Yash Ved of IIFL, Ashok Chhajer says, “We expect the turnover and PAT to increase at a CAGR of 50% and 60%, respectively for the next 6-7 years.”
What will be your focus area going forward?
The major focus area for the development of the Company has been in the category of flats in the range of Rs 18 Lacs to Rs 70 Lacs, which largely falls under the affordable segment. This segment constitutes around 95% of the total developable area under construction planned within next six to seven years.
The Company plans to venture into the Hospitality sector by setting up a Wellness Center at Khopoli for which the land has already been acquired.
What are the new project launches planned in FY13?
The company is planning to launch various projects in FY13.
The company is coming up with Arihant Ayati at Jodhpur, Arihant Aarohi at Padle, Kalyan Shill Road, Thane, Arihant Agrima at Jodhpur, Arihant Akansha at Panvel, and Arihant Arshiya at Khopoli.
The total area of the above-mentioned projects planned to be launched in FY13 is 81.14 lacs sq ft.
What is your land bank?
The current land bank with a construction potential of 12.5mn square ft has been acquired at a very low cost and thereby de-risking the business model.
What is your total area under development?
Currently, the total area under development is 2 mn sq ft.
Brief us about the financials?
The turnover has grown from Rs. 127.4mn in FY10 to Rs. 653.7 mn in FY12 (unaudited).
ASL’s PAT has increased from Rs. 13.1mn in FY10 to Rs. 83.9 mn in FY12 (unaudited).
The return on Net Worth of the company for FY12 was ~ 23% compared to the industry average of less than 15%.
What is your outlook on real estate prices?
I do not expect prices to rise much this year. I expect prices to remain stable for some time in Navi Mumbai region.
What is your revenue and PAT target by FY19?
We expect the turnover and PAT to increase at a CAGR of 50% and 60% respectively for the next 6-7 years.
What is your current debt?
Currently, the outside debt on the Company’s books is Rs. 347.8mn and the unsecured loan from Promoters is Rs. 214.6mn.
Against this, the net worth of ASL as on date is Rs. 615.4mn (without taking into consideration results for quarter ended June 2012).