Highlights
Isprava Group Reports Significant Revenue Growth
Isprava Group, a luxury residential development and rental company, experienced a remarkable increase in its revenue for the fiscal year ending March 2024. The Mumbai-based firm achieved profitability, showcasing a significant turnaround.
According to consolidated financial statements from the Registrar of Companies (RoC), Isprava’s gross revenue from operations surged by 2.3 times, reaching Rs 452 crore in FY24 compared to Rs 196 crore in FY23.
Business Model and Revenue Breakdown
Isprava Group specializes in constructing and renting luxury homes situated in sought-after locations such as Goa, Alibaug, and the Nilgiris. In addition to selling properties, the company offers high-end vacation rentals featuring services such as:
- Housekeeping
- Private chefs
The revenue derived from the real estate sector constituted 81.86% of the total operating revenue, which increased by 89%, amounting to Rs 370 crore in FY24, compared to Rs 195 crore in FY23. Additionally, the hospitality segment provided Rs 74.5 crore in FY23.
The firm also earned an extra Rs 7 crore from interest on investments, elevating total revenue to Rs 458.5 crore in FY24.
Cost Structure and Expenditure
For the home development company, procurement costs, which encompass land acquisition, material consumption, and other construction expenses, accounted for 72% of total costs. This expenditure surged 94% to Rs 299 crore in FY24, compared to Rs 154 crore in FY23.
Employee benefit expenses rose threefold to Rs 61.7 crore, while advertising expenses doubled to Rs 14 crore. Additional expenses amounted to Rs 37.3 crore, resulting in total expenditures escalating to Rs 412 crore in FY24 from Rs 206 crore in FY23.
Profitability and Financial Metrics
This impressive growth enabled Isprava to achieve profitability, reporting Rs 63 crore in profit for FY24, in contrast to a loss of Rs 7.5 crore in FY23. Key financial metrics improved significantly, with return on capital employed (ROCE) and EBITDA margin climbing to 22.64% and 12.45% respectively, alongside an expense-to-earning ratio of Rs 0.91. By the end of FY24, Isprava possessed current assets amounting to Rs 446 crore, including Rs 119 crore in cash and bank balances.
Investment and Stakeholders
Isprava has attracted substantial investment, securing Rs 1,216.95 crore (over $150 million), which includes a Rs 160 crore funding round in January of the previous year. The Darshan Shah Family Trust holds nearly a 40% share in the company. Notable investors include the Nadir Godrej Family Office, Burman Family Office, and Symphony International Holdings.