 "Arkade Developers eyes Rs 4,000 crore topline from ongoing projects")
Arkade Developers is estimating a revenue potential of Rs 4,000 crore from its 10 ongoing projects across the Mumbai metropolitan region (MMR), according to the company’s chairman and managing director, Amit Jain.
“Currently, we have 10 ongoing projects, with eight of them in the western suburbs. The topline estimated from these projects is around Rs 4,000 crore. The projects are expected to be completed in three to four years,” Jain said in an interview.
The company announced the launch of a premium residential and commercial project in Bhandup, MMR, on Monday. The three-acre project is estimated to generate revenue of up to Rs 760 crore. The company had bought the land parcel in September last year for Rs 103 crore.
Speaking on changing consumer preferences and luxury demand, Jain said, “People prefer amenities like gyms, swimming pools, etc. The expectations of people have gone up, unlike earlier. People aim to save travel time in Mumbai by having these amenities at their doorstep. Hence, the sales velocity of such projects is faster, and rates too are higher."
The listed developer is present in the western as well as eastern suburbs, with a few projects in South Mumbai. Jain stated that the company launches three to four projects every year and acquires three to four land parcels too.
Further, Jain mentioned that the company is looking for new opportunities in Thane and has identified a couple of land parcels it intends to acquire soon. “We’ve already formally shaken hands, and the process of acquisition should be completed in a couple of months. The project is big and may be launched in the next financial year, with an estimated revenue potential of about Rs 2,000 crore,” he added.
The company’s project pipeline also includes a few redevelopment projects. Jain believes that redevelopment is a win-win concept for both the residents, as they get a new apartment for themselves, and the developer, who gets to sell some units in the open market.
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Recognising the MMR’s vast redevelopment market, Jain said, “In Mumbai, new land parcels are hardly available. They are available a little bit in the eastern suburbs, but in the western suburbs, there is hardly any land.”
On being asked about business expansion, Jain confirmed that the company’s focus would remain on MMR and the residential segment for now. “As of now, we have enough opportunities in MMR. Sales velocity in MMR is way better than anywhere else, is what we believe. As long as we keep getting projects in MMR, we will prefer this market. We are well-versed in this market and are looking at new opportunities in it,” he said. He also stated that the company doesn’t have any plans yet for exclusively commercial projects.
Additionally, the company’s consolidated revenue for the first quarter of financial year 2025 (Q1 FY25) stood at Rs 125.4 crore, up 103.01 per cent year on year (Y-o-Y). The profit after tax (PAT) for the same period was about Rs 30.22 crore, compared to a PAT of Rs 6.57 crore during Q1 FY24.
Jain is expecting the second quarter to be on similar lines. “Our Q1 FY25 results were fantastic, and the growth is steady and organic; quarter two should be on similar lines,” he said.
Besides, the company’s shares were listed on both major Indian stock exchanges in September 2024. Its total market cap is around Rs 2,625.47 crore.