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Ajmera Realty & Infra India (ARIIL) has reported a significant decline in its net consolidated profit for the quarter ending September 30, 2023. The company's profit after tax plummeted by 34.08%, reaching Rs 22.53 crore in Q2 FY24, compared to the Rs 34.18 crore it had achieved in the corresponding quarter of the previous fiscal year, according to a BSE filing.
This decline in profit is accompanied by a 21.13% drop in net consolidated total income. In Q2 FY24, ARIIL's total income was recorded at Rs 147.59 crore, down from Rs 187.14 crore in the same quarter the previous year.
Dhaval Ajmera, the director of ARIIL, expressed that despite this decline, the company has been able to maintain a stable debt-to-equity ratio of 0.97x for Q2 FY24, which is consistent with the previous quarter. This has kept the ratio below the critical 1x ratio of net worth. Additionally, the weighted average cost of debt was noted at 12.1% by the end of the quarter.
The board of directors has given their approval for the re-appointment of K. G. Krishnamurthy as an independent director of the company for a second term, extending from November 5, 2023, to November 4, 2028.
Dhaval Ajmera also highlighted the company's future prospects, stating that they have a substantial launch pipeline with a Gross Development Value (GDV) of approximately Rs 2,750 crore. Their sales development potential encompasses around 1.3 million square feet, significantly expanding their revenue outlook to approximately Rs 4,750 crore from both ongoing projects and future launches.
Despite the challenging financial figures, there are some positive signs within the report. During the quarter, ARIIL achieved a 52% year-on-year increase in sales value, totaling Rs 252 crore. Sales volume also saw a substantial 51% year-on-year increase, reaching 1,20,787 square feet. As of September 30, 2023, the company's net worth remained at Rs 807.40 crore.
In summary, ARIIL is navigating a period of decreased profitability and income, yet they are actively pursuing business development opportunities and maintaining financial stability through prudent management of debt. The future holds promise with a robust project pipeline and increasing sales figures, suggesting potential for a recovery in the coming quarters.
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