AURUMNSEQ1 FY2023August 3, 2022

Aurum PropTech Limited

7,940words
100turns
6analyst exchanges
7executives
Management on call
Ashish Deora
FOUNDER AND CHIEF EXECUTIVE
Srirang Athalye
PRESIDENT – AURUM
Onkar Shetye
EXECUTIVE DIRECTOR – AURUM PROPTECH LIMITED
Kunal Karan
CHIEF FINANCIAL OFFICER – AURUM PROPTECH LIMITED
Hiren Ladva
EXECUTIVE VICE PRESIDENT
Asha Gupta
INVESTOR RELATIONS, EY LLP
Hiren Kumar Ladva
EVP – Investment of – Aurum PropTech Limited.
Key numbers — 40 extracted
14%
pTech. Aurum’s shareholding in Aurum PropTech has evolved from acquiring promoter stake of around 14% to around 50% upon successful completion of rights issue in firstquarter. As a group at Aurum,
50%
shareholding in Aurum PropTech has evolved from acquiring promoter stake of around 14% to around 50% upon successful completion of rights issue in firstquarter. As a group at Aurum, we have always
rs,
always focused on value creation through governance for all our stakeholders including our customers, capital allocators, society at large and our team. We believe that we are on the same path at Auru
10%
ted to become US $1 trillion sector by 2032 and PropTech, the tech adaption within that will have 10% market share making it to be a US $100 billion sector. At Aurum PropTech we are a
100 billion
32 and PropTech, the tech adaption within that will have 10% market share making it to be a US $100 billion sector. At Aurum PropTech we are amongst the first mover in this sector and we beli
Rs.50 Crore
expect similar growth rate for next quarter. We are gearing up to achieve our targeted revenue of Rs.50 Crores by 4Q of this year as our very first pit stop. Efficient capital allocation, working closely wit
79%
me of the numbers of this quarter. Our revenue from operations for the quarter has increased by 79% to Rs.1464 lakhs as compared to Rs.818 lakhs in the previous quarter. The company had no revenue
Rs.1464 lakh
he numbers of this quarter. Our revenue from operations for the quarter has increased by 79% to Rs.1464 lakhs as compared to Rs.818 lakhs in the previous quarter. The company had no revenue from operation
Rs.818 lakh
Our revenue from operations for the quarter has increased by 79% to Rs.1464 lakhs as compared to Rs.818 lakhs in the previous quarter. The company had no revenue from operations in the corresponding quarter
64%
nt quarter as compared to the previous quarter. Our total income for the quarter has increased by 64% to Rs. 1,572 lakhs as compared to Rs. 959 lakhs in the previous quarter. We had a negative EBITDA
Rs. 1,572 lakh
ter as compared to the previous quarter. Our total income for the quarter has increased by 64% to Rs. 1,572 lakhs as compared to Rs. 959 lakhs in the previous quarter. We had a negative EBITDA for the quarter a
Rs. 959 lakh
quarter. Our total income for the quarter has increased by 64% to Rs. 1,572 lakhs as compared to Rs. 959 lakhs in the previous quarter. We had a negative EBITDA for the quarter at Rs. 569 lakhs as compared t
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Guidance — 20 items
Ashish Deora
opening
“At Aurum PropTech we are amongst the first mover in this sector and we believe that we will grow in strength quarter-on-quarter, year-on-year.”
Ashish Deora
opening
“We have grown significantly in this quarter and expect similar growth rate for next quarter.”
Onkar Shetye
opening
“They target the real estate purchase value chain and rental management platform TheHouseMonk and co-living company HelloWorld that focuses on rental real estate value chain.”
Onkar Shetye
opening
“With this we have now launched BeyondWalls in Mumbai and Bangalore and we expect the ARR to grow with these additions.”
Onkar Shetye
opening
“Aurum Infinity shall be launched in Q2 and Aurum Live will be launched in Q3.”
Kunal Karan
qa
“100 Crores and we also have some asset in the form of building inherited from Majesco so monetization of those asset is our second priority then we like to go for the next chance of the call money so to answer we do not have plan to call for the next round approximately till end of March 2023.”
Onkar Shetye
qa
“There is another layer of regulation and taxation that the team is working out to close out presently which is with respect in this coming under the SEBI regulation, what is this taxation structure when we are looking at very forms of fractionalization and what is the framework or what is the guidance on the investment firm that we need to take approvals under so this is the present status of the development.”
Faisal Hawa
qa
“So am I right to believe that the product is ready but we are worried about regulations and who our regulator will be itself and whether this is allowed even.”
Faisal Hawa
qa
“Would I be right in making a conclusion that for the next quarter it will contribute almost like Rs.”
Kunal Karan
qa
“Out of the four I think Aurum PropTech will be burning because it has got the product expense which our in house product expense we are not capitalizing.”
Risks & concerns — 10 flagged
Before we start the call, I would like to remind you that anything that has been mentioned in the call which reflects any outlook for the future or which can be construed as forward- looking statements must be viewed in conjunction that the risk we face, this risk and uncertainties are included but not limited to what we have mentioned in the prospect of file with SEBI and subsequent annual report you can find it on our website.
— Asha Gupta
Few years ago, it was difficult to comprehend that finance would be experienced through technology.
— Ashish Deora
A key strategy to our business is governance, risk, and compliance framework.
— Onkar Shetye
I will like to conclude by saying that our businesses are built with an eye for profitable growth rolled with strong governance, risk, and compliance practices creating value for all stake holders of Aurum PropTech.
— Onkar Shetye
We have a comprehensive governance risk and compliance framework that is implanted across all these companies in addition to our company.
— Onkar Shetye
We want to be very cautious in terms of how we navigate the regulation and taxation before we launch the product into the market that is where this product is right now.
— Hiren Ladva
Thanks for your kind words but I totally believe you are actually solving a very difficult problem with what looks the right team members, kudos to you for taking on something which is so difficult.
— Faisal Hawa
Going further it is very difficult to say what quarter we will become EBITDA positive but definitely I can say this is keen eye on growing with profitability and not just growing mindlessly.
— Ashish Deora
The sector is usually unorganized and it is always difficult to find the right data point to get the total adjustable market however we look at the sector has Pan India tier 1 city, you have close to six cities where most of the major inventory sale, primary and secondary happens.
— Onkar Shetye
There have been attempts in the past by other players in terms of getting into service apartment, getting into reverse mortgage and even this co-living space but it is very, very difficult to track so how do you intent to have a unifying business model which will enable you to track these segments.
— Mukesh Kothari
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Q&A — 6 exchanges
Q
Good evening. My name is Vimal Panchal. We have done four or five acquisitions so how is the integration and total how much number of employees in the consolidated basis and we have changed the name from Majesco to Aurum and we have changed the website also and e-mail ID also. Everything we have changed but on the BSE website, our industry segment comes under the old software information and technology and earlier also written but I think nothing has been done to get it changed. Another question is when are we looking for call money rights issue?
Onkar Shetye
I have taken note of four questions. Let me start by answering the first question which is integration of these four acquired companies. One is the acquisition of these four companies has been scanned through a lot of due diligence where we kept primary importance on acquiring mature companies with established products, processes and business in the PropTech segment. To make sure that these companies are integrated into our eco system and also are governed with the right favor. We have a comprehensive governance risk and compliance framework that is implanted across all these companies in addi
Q
So there was this blockchain based solution which you were attempting to really solve the problem of financing as well to have the smaller units which could be leased out or rented out in form of smaller deals, so where do we stand on that have we been able to crack that software or the product.
Onkar Shetye
The blockchain based fraction ownership platform as a technology product has been cracked and has been developed. There are two MVPs in which we have developed this and are rolling it out. The first MVP is rolled out as a listing platform for commercial real estate where the assets that want to be fractionalized and further tokenized are listed on the platform and the second MVP is investor dashboard where investors can actually manage their portfolio of these investments or co ownership is to be pulled out. There is another layer of regulation and taxation that the team is working out to clos
Q
Thank you very much Sir for the opportunity. Sir I just wanted to understand you did mention that by 4Q we are looking at Rs. 50 Crores of revenue targets. Am I correct is that on quarterly basis we are kind of targeting?
Ashish Deora
I will pass on to Kunal to detail this out. The point that we are trying to make here is that as a first pit stop our internal target is to get to quarterly run rate at Rs. 50 Crores by Q4 and that is where we are gearing all our internal products, our services, solutions and investee companies to do that. If you see the current growth and the kind of tail winds that we are seeing in the existing quarter as well that is where we are aiming to take the company. That is where we are targeting to take the company as a first target. As you understand we are acquiring a few companies and those comp
Q
In the opening remarks I heard about the total addressable market to be quite a huge figure. I just want to understand what your attainable market is and what is obtainable market? See given that India is largely unorganized at this space I think the figure that you referred is quite huge and even 1% market share in the 50 is quite huge but I think that is not totally obtainable what do you think about and what is the basis of the 10% of the real estate market to be total addressable market.
Onkar Shetye
Very key question here. The sector is usually unorganized and it is always difficult to find the right data point to get the total adjustable market however we look at the sector has Pan India tier 1 city, you have close to six cities where most of the major inventory sale, primary and secondary happens. The total size of the real estate industry is supposed to grow to US $1 trillion by 2030 as per a report published IBEF and the real estate industry itself will be contributing from 13% to the entire GDP. If we look at the residential real estate market, there is a report published by Knight F
Q
Good evening. I had a question that we had acquired two buildings from Majesco limited so how well we have mobilized that.
Kunal Karan
We have not acquired. The buildings are in the books of Majesco Limited so we have just got it so when the current management got it both the buildings were vacant. One was under progress, its construction was under progress. We had just completed construction of that building. We have got OC and everything is there. The building is still unoccupied. The bigger building was unoccupied at the beginning of the current calendar year January, so as on date 40% of the building is already put on rent and maybe by the end of this fiscal year 100% of it will be occupied. To add to Kunal when we acquir
Q
We thank you all for your continued interest in Aurum PropTech. We intend to build up a very robust integrated ecosystem for the real estate industry and as part of that we will make sure that all the right moves have been done in the last year and we further intend to consolidate and build on this further. We will look forward to hear from you and build this further together with you.
Management
Speaking time
Faisal Hawa
23
Onkar Shetye
21
Kunal Karan
19
Moderator
8
Deepak Poddar
8
Mukesh Kothari
8
Ashish Deora
5
Hiren Ladva
3
Vimal Panchal
2
Devang Chokani
2
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Opening remarks
Asha Gupta
Thank you Nirav. Welcome to the Aurum PropTech Limited Q1 FY2023 earnings call. It gives me great pleasure to welcome the management of the company represented by Mr. Ashish Deora – Founder and CEO of Aurum Ventures, Mr. Srirang Athalye – President – Aurum Ventures and Director – Aurum PropTech Limited; Mr. Onkar Shetye – Executive Director of Aurum PropTech Limited; Mr. Kunal Karan – CFO of Aurum PropTech Limited; Mr. Hiren Kumar Ladva – EVP – Investment of – Aurum PropTech Limited. Before we start the call, I would like to remind you that anything that has been mentioned in the call which reflects any outlook for the future or which can be construed as forward- looking statements must be viewed in conjunction that the risk we face, this risk and uncertainties are included but not limited to what we have mentioned in the prospect of file with SEBI and subsequent annual report you can find it on our website. With that said, I now hand over the call to Mr. Ashish. Over to you Ashish!
Ashish Deora
Thank you, Asha. I am pleased to talk to the investor community in this fifth quarterly call under Aurum management. I am glad to state that within a period of 13 months Aurum has given a new purpose and management to Majesco which of course is now Aurum PropTech. Aurum’s shareholding in Aurum PropTech has evolved from acquiring promoter stake of around 14% to around 50% upon successful completion of rights issue in firstquarter. As a group at Aurum, we have always focused on value creation through governance for all our stakeholders including our customers, capital allocators, society at large and our team. We believe that we are on the same path at Aurum PropTech here as well. I would like to briefly talk about real estate and PropTech as a sector which is going through one of its best phase into my mind. We believe that these tailwinds that the sector is facing currently will continue for multiple years to come. I have tried to articulate this earlier as well that real estate is exp
Kunal Karan
Thank you everyone for joining this call. Yesterday the board has approved the results for the quarter ended June 30, 2022. I will take this opportunity to take you through some of the numbers of this quarter. Our revenue from operations for the quarter has increased by 79% to Rs.1464 lakhs as compared to Rs.818 lakhs in the previous quarter. The company had no revenue from operations in the corresponding quarter of the previous year. The growth in revenue is mainly attributable to performance of all our subsidiaries performing better under the umbrella of Aurum PropTech. We are hopeful for similar growth percentage of revenue performance in Q2 also. Revenue from both our SaaS and RaaS business has seen growth in the current quarter as compared to the previous quarter. Our total income for the quarter has increased by 64% to Rs. 1,572 lakhs as compared to Rs. 959 lakhs in the previous quarter. We had a negative EBITDA for the quarter at Rs. 569 lakhs as compared to negative Rs. 622 lak
Onkar Shetye
Thank you Kunal. Welcome everyone and thank you for your continued interest and commitment to Aurum PropTech. Talking about Aurum PropTech our focus areas for PropTech are four business segments, invest and finance, enterprise efficiency, customer experience and connected living that shadowed the real estate value chain. We continue to build SaaS and RaaS products and businesses with a mix of inorganic and organic strategy. As a part of our inorganic strategy we have acquired and consolidated four companies over the past 13 months. The product portfolio now includes real estate CRM Sell.do and broker aggregation platform BeyondWalls. They target the real estate purchase value chain and rental management platform TheHouseMonk and co-living company HelloWorld that focuses on rental real estate value chain. Sell.Do continues to provide PropTech solution in the enterprise efficiency segment. When we acquired K2V2 their ARR from Sell.Do was Rs. 13 Crores post acquisition we have added a new
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