Arvind SmartSpaces Q3 net takes 75% hit on Covid-induced disruption

The firm's consolidated total revenue dipped 53% to Rs 45 cr

The Covid-19 pandemic-induced disruption in the real estate market saw Arvind SmartSpaces Ltd took take a 75 per cent hit on its consolidated net profit for the third quarter of financial year 2020-21 at Rs 5.33 crore. Last year, the real estate company of Arvind Group had a consolidated net profit of Rs 20.84 crore in the third quarter.

The company's consolidated total revenue dipped by 53 per cent to Rs 44.68 crore in Q3 of FY21 as compared to Rs 94.54 crore in the said quarter last year.

However, the company recorded a 138 per cent growth in fresh MIS sales for the quarter which stood at Rs 144 crore, as against Rs 61 crore in the corresponding period last year. According to the company's filing with stock exchanges, while financial performance was based on project completion as per applicable accounting standards, there was a strong momentum in sales with fresh bookings and healthy pipeline.

Commenting on the results and outlook of the company, Kamal Singal, Managing Director and CEO, Arvind SmartSpaces said that the industry had picked up well in the past few months both in terms of new launches and sales on a sequential basis. 

"While, post Covid, sales has picked up sequentially, it is still a few months away to come back to pre-Covid levels. We expect that the sales momentum will continue in near future too. Several key initiatives by the government like incentives on affordable housing, effective reduction in interest rates etc. are expected to fuel a fresh cycle of growth in the industry. We believe that despite several macro-economic and post Covid challenges, Arvind SmartSpaces is well positioned to take advantage of available opportunities and in turn deliver value to its customers and stakeholders," said Singal.

The company has nine ongoing projects totaling more than 14 million square feet (msf) under various stages of development which would be completed over the next 3-5 years. 

"Currently, we are operating out of Ahmedabad, Gandhinagar, Bangalore and Pune. We intend to further consolidate project pipeline across these cities and are well poised to take advantage of opportunities which are expected to come under the current business environment while cautiously treading through the challenges," Singal further stated.

To date completed and handed over 10 projects measuring total developed area of 4.24 msf include those like Alcove, Megatrade, Parishkaar, Trade square, Expansia, Citadel, SporciaMegapark, Megaestate and Skylands,

Meanwhile, Arvind SmartSpaces Ltd. also saw its net debt revise from Rs 217 crore as on March 31, 2020 to Rs 202 crore by September 30, 2020 and Rs 197 crore by December 31, 2020.