Conference Details
• Date: November 10, 2023
• Notification: Transcript shared with BSE and NSE on November 17, 2023
• Participants:
• Managing Director: Jatin Chokshi
• CFO: Ashok Parmar
• Moderator: Sanjay Punjabi (Investor Relations)
Company Overview
• Established: December 2021
• Focus: Development and leasing of industrial and logistics parks
• Assets: 5.5 million square feet developed
• Future Plans: Divestment of certain assets to Blackstone, expected to generate Rs. 400 crores
Market Insights
• Demand Drivers:
• Growth in e-commerce
• Government initiatives to reduce logistics costs
• Expansion Strategy: Targeting Tier-1 and Tier-2 cities with sustainable practices and long-term leases
Financial Highlights
• Q2 FY24 Revenue: Rs. 25 crores (decrease due to lease rental adjustments)
• Net Profit: Rs. 75 crores (one-time gain from business transfer)
• Debt: Reduced to Rs. 68 crores
Q&A Session Insights
• Warehouse Holdings: Confirmation of existing facilities and a 59-acre land acquisition in NCR
• Rental Income:
• CFS properties: Rs. 37 crores
• Logistics park: Rs. 100 crores annually
• Upcoming Projects: Groundwork in Patna complete; land acquisition pending
Financial Strategies
• Rental Yields: Typically 8% to 10%
• Related Party Transactions: Approximately Rs. 30 crores from Allcargo terminals
• Leverage for Growth: Open to leveraging for organic and inorganic growth
Development Strategy
• Build-to-Suit (BTS): All current constructions are BTS, allowing long-term contracts
• Development Yield: 8% to 10%, with potential equity yields of 14% to 15% upon monetization
Competitors and Market Position
• Competitors: IndoSpace and ESR in logistics park development
• Asset Valuation: Enterprise value of a project is Rs. 625 crores, with net cash realization of Rs. 400 crores after liabilities
Conclusion
• Closing Remarks: Jatin Chokshi wished attendees a happy Diwali and a prosperous New Year.