Arkade Developers Limited , a prominent real estate developer in Mumbai, has reported a strong start to the fiscal year with significant growth in revenue and an ambitious expansion plan. The company's financial results for the first quarter reveal robust performance and strategic moves to capitalize on the growing demand in the luxury housing segment.

Financial Highlights

Arkade Developers posted a 31.6% year-on-year increase in revenue, reaching ₹165.00 crore for Q1. The company's profit before tax (PBT) stood at ₹38.00 crore, while net profit was reported at ₹29.00 crore. The PBT margin for the quarter was 23.1%, with a net profit margin of 17.4%.

Key operational metrics also showed positive momentum:

Expansion Plans and Project Pipeline

In a significant announcement, Arkade Developers revealed plans for a ₹11,145.00 crore project pipeline as part of its multi-year expansion strategy. The company is focusing on debt-free growth and targeting the upscale segment for its development projects.

Key aspects of the expansion plan include:

1. Entry into the Thane micro-market with a projected Gross Development Value (GDV) of ₹2,000.00 crore.
2. Acquisition of Filmistan Pvt. Ltd., a 4-acre land parcel in Goregaon with a projected GDV of ₹3,216.00 crore.
3. Cumulative acquisition of 13.5 acres in western suburbs with a GDV of ₹4,790.00 crore.

Strategic Focus on Luxury Segment

Amit Jain, Chairman and Managing Director of Arkade Developers, commented on the results: "Homebuyer sentiment remains upbeat, particularly in the luxury segment, where demand is witnessing remarkable momentum. This trend aligns seamlessly with our strategic vision, enabling us to harness emerging opportunities and deliver sustained value to our stakeholders."

Maiden Interim Dividend

In a move that underscores the company's strong financial health and investor-focused approach, Arkade Developers declared its first interim dividend of ₹1.00 per equity share (10% of face value). Notably, the company's promoter, Mr. Amit Mangilal Jain, and executive directors Mr. Arpit Vikram Jain and Mr. Sandeep Ummedmal Jain have decided to forego their rights to receive this dividend to enhance shareholder value.

Outlook

With a supportive policy environment and recent repo rate revisions signaling favorable conditions for the real estate sector, Arkade Developers appears well-positioned to capitalize on the growing demand for luxury housing in Mumbai Metropolitan Region (MMR). The company's debt-free growth strategy and focus on high-potential micro-markets are expected to drive its expansion in the coming years.

As the Indian economy continues to show resilience and growth, Arkade Developers' strong project pipeline and strategic land acquisitions place it in a favorable position to benefit from the increasing demand for upscale residential properties in MMR's most promising corridors.

Arkade Developers , a prominent real estate developer, has announced its unaudited financial results for the first quarter, ending June 30. The company has reported robust performance and declared an interim dividend, showcasing its commitment to shareholder value.

Financial Highlights

Arkade Developers reported impressive standalone financial results for Q1:

The company's revenue from operations stood at Rs. 15,944.58 lakhs, while the total income, including other income of Rs. 610.14 lakhs, reached Rs. 16,554.72 lakhs. Arkade Developers achieved a profit before tax of Rs. 3,820.15 lakhs and a profit after tax of Rs. 2,875.53 lakhs for the quarter.

Dividend Declaration

The Board of Directors has declared a first interim dividend of Re. 1 per equity share (10% of the face value). The record date for determining shareholder eligibility is set for August 1, with the dividend payment to be made on or before August 12.

Management's Commitment to Shareholder Value

Promoter Amit Mangilal Jain and Executive Directors Arpit Vikram Jain and Sandeep Ummedmal Jain have decided to forgo their rights to receive the interim dividend. This decision aims to enhance shareholder value and demonstrates the management's confidence in the company's future prospects.

Utilization of IPO Proceeds

Arkade Developers completed its Initial Public Offering (IPO) in the previous fiscal year, raising Rs. 38,106.50 lakhs (net of share issue expenses). As of June 30, the company has utilized Rs. 30,394.98 lakhs of the IPO proceeds, with Rs. 7,711.52 lakhs remaining unutilized. The funds have been allocated as follows:

1. Funding Development Expenses: Rs. 17,492.18 lakhs utilized out of Rs. 25,000 lakhs allocated.
2. Funding acquisition of land for real estate projects and general corporate purposes: Rs. 12,902.80 lakhs utilized out of Rs. 13,106.50 lakhs allocated.

Consolidated Performance

On a consolidated basis, Arkade Developers, along with its subsidiaries and associates, reported a total income of Rs. 16,522.68 lakhs and a profit after tax of Rs. 2,875.54 lakhs for Q1.

Outlook

With a strong start to the fiscal year, Arkade Developers continues to focus on its core business of real estate development. The company's robust financial performance, strategic use of IPO proceeds, and shareholder-friendly dividend policy position it well for sustained growth in the real estate sector.

Investors and stakeholders are advised to consult the detailed financial results and disclosures made by the company for a comprehensive understanding of its performance and future prospects.