Arihant Superstructures spurts 2.5% on FY22 business update

6 Apr 2022 , 02:58 PM

Arihant Superstructures Limited updated the exchanges on Tuesday that Financial Year 2022 started with flying numbers consistently in terms of sales despite withdrawal of stamp duty. This momentum continued throughout the year as it got fuelled with prices increasing gradually upto 10% yoy. The price rise was happened due to increase in raw material cost.

The cost of price rise effectively at Arihant and its project design in material cost works out to be Rs300/- per sq.ft and average increase in sales price was upto the extent of Rs500/- per sq.ft protecting and safe guarding the margins.

“For our internal project workings we do factor unforeseen circumstances thus remain conservative on the selling price whereas we build in aggressive cost price,” company said in a filing.

The company said, its numbers across most verticals have witnessed a CAGR of more than 50% in the last 3 years. The reported sales numbers for FY22 are approximately 1,650 units aggregating to ~14 lakh sft with a booking value of -Rs780 crore as compared to 934 units aggregating to 8.7 lakh sft with a booking value of Rs400 crore in FY21 as compared to Rs287 crore in FY22 marking strong footprint in affordable housing segment and income tax 80 I.B project benefiting the holding company.

The collections across projects touched Rs415 crore (unaudited). The engineering spends targeted at Rs240 crore were also achieved. The year showed results beyond our expectations.

The budgets across all business verticals for the ensuing year are planned and awaiting board approvals with very aggressive targeted growth of 50% for FY23 in terms of operational parameters towards sales, engineering, collections, HR & Advertisements spends moving up the EBIDTA.

The company successfully received approvals for 2 Mega projects, Arihant Akarshan at Taloja on 10 acres and Arihant Aaradhaya at Kalyan extension on 7 acres with a total revenue potential of Rs1,000 crore and both projets benefiting from Sec 80-1B resulting in income tax exemption for the projects.

At around 3.00 pm, Arihant Superstructures Ltd was trading at Rs140.40 per piece up by Rs3.45 or 2.52% from its previous closing of Rs136.95 per piece on the BSE.

The employees were highly motivated & charged, contributing towards the growth of company’s vision and objectives. The employee’s strength was increased from 332 to 380 in this financial year. Efficiency and speed were the key goals for each employee.

The company postponed its fund-raising program through dilution of equity and plans for the same after achieving the visible exponential business growth at higher valuations. The BRAND ‘ARIHANT’ is the undisputed leader in the micro market of “NAVI-MUMBAI” which incidentally is among the fastest growing in India having achieved greater heights in FY 21-22.