We attended the conference call hosted by Arihant Superstructures Ltd (ASL), on 14th August, to discuss their Q1FY19 results.
Arihant Superstructures Ltd., is one of the renowned affordable housing real estate developer, with significant presence in Navi Mumbai Metropolitan Region (NMMR) & Jodhpur.
While you may want to refer to the attached note for more details, hereunder is the gist of the call:
- IND AS effective this year onwards, leading to consistency in reporting
- Changes in revenue recognition method is welcome, helping shorten the time to recognise revenues
- GST implementation not key hurdle for affordable housing players like ASL, on account of reduced GST rates (8%) as compared to regular developers and the relatively smaller GST component
- Business model diversified: from land aquisition model earlier to JV/JDA model (2 years back) and now to development management (DM) model, thereby making it asset light while boosting revenues
- Several internal developments to strengthen the organisation
Read the attached note for more details: