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AHPL is promoted and managed by Mr. Chandra Mouli Yarra, Managing director and Mr.Nageswara Rao Aluri, Chairman. Mr. Chandra Mouli Yarra has a decade of experience as a real estate developer through projects executed under AHPL's associate entities like 'Aaditri Developers private limited', 'CMD properties Private Limited' which are also into real estate business since 2010. The promoter's association with Tejas Constructions (engaged in civil construction activities mainly constructing government buildings) as a managing director since 2010 and being part of Margdarshi Chits Pvt Ltd for more than 25 years is an accompaniment to his industrial experience. Mr.Nageswara Rao Aluri, Chairman, hailing from Guntur, started his career as a civil contractor for roads and buildings department with an aim to become a real estate entrepreneur; showcasing two decades of experience in the civil construction segment. The promoters have successfully completed RERA approved 9 projects in the past through its associate entities covering a cumulative area of ~3 lakh square feet with a project cost of Rs.113 crores and around 5.7 lakh square feet with a project cost of Rs.162 crores under AHPL.
Alongside, the brand equity of 'AADITRI' was well ingested in the AP and Hyderabad (Telangana) region. Succeeding in past projects, AHPL was incorporated with the intent of executing sizeable projects. This is unveiled through the execution of its 5 ongoing projects which are ~4x bigger the 13 completed projects in terms of area covered and ~3.5x higher in terms of total project cost incurred. AHPL, with its strategic positioning has created brand equity and is now among the top 10 real estate developers in Guntur, Andhra Pradesh. Acuité believes that the promoters have demonstrated strong execution capabilities with a reputation for quality and timely completion. Promoters industry and strong brand presence are expected to support in a successful sale of the units in existing and upcoming projects, and timely completion of the projects.
AHPL is presently developing 5 projects - 1 in Guntur (Aaditri Evoca), 1 in Tirupathi (Aaditri Empress),1 in Hyderabad (Telangana) and 2 new projects – 1 in Guntur (Aaditri Elite) and 1 in Vizag (Aaditri Embassy). The total saleable area of the aforesaid projects is ~24 lakh square feet with a total project cost of ~Rs.743 crores. It is being funded through ~30-35 percent of debt (provisionary), ~10 percent of equity (in form of equity and unsecured loans) and remaining through customer advances. Cumulatively, AHPL has completed an average of 68 percent of construction and incurred Rs.324 crores as on November 30, 2022. The no. of flats booked were ~1,415 units as on November 30, 2022 taking booking status at ~ 86 per cent and customer advances received as a percentage of sales value at 60 per cent. This leads to low moderate risk. Moreover, funding has been tied up for all projects and reasonable amount of the loan drawn down has been swept out and prepaid against the outstanding debt. Acuité believes that timely receipt of customer advances will provide a larger scope of financial flexibility over the medium term.
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AHPL has majorly executed its past projects in Andhra Pradesh (Guntur and Tirupati). AHPL has demonstrated its ability to diversify its geographical presence by constructing one of its biggest project in Hyderabad (Telangana) with total saleable area of 13.50 lakh sq ft covering 320 flats. AHPL’s plan to diversify in Telangana, through its project in Velimela (Hyderabad) is 1.5-2x times bigger than the past and on-going project at AHPL level. Telangana region is explored by AHPL with the brand presence of 'AADITRI' through past projects completed under the company name 'Siri homes infra India private limited'. The promoters have completed 5 projects covering an area of 96,916 square feet with a project cost of Rs.54 crores in Hyderabad. Acuité believes that AHPL would remain geographically concentrated until the successful completion of 'Aaditri Empire' in Hyderabad and receipt of healthy customer advances through the sale of entire units. Furthermore, AHPL would continue to remain exposed to intense competition from larger players in Telangana like Jayabheri group, Aparna Constructions and estates Pvt Ltd, Prestige Group, My Home group, Kalpataru Group, mantra Group, Lodha group, etc.
The real estate industry in India is highly fragmented with most of the real estate developers, having a city-specific or region-specific presence. The risks associated with the real estate industry are cyclical in nature of business (drop in property prices) and interest rate risk, among others, which could affect the operations.
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