Aditya Birla Real Estate Limited — Q3 FY26

Aditya Birla Real Estate Ltd Q3 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=be2UlqxRD8I Published: 3 months ago

0:00 Ladies and gentlemen, good day and welcome to Adita Real Estate Limited Q3 0:07 7 seconds FY26 earnings conference call hosted by BNK Securities India Private Limited. As 0:15 15 seconds a reminder, all participant lines will be in the listenon mode and there will be an opportunity for you to ask 0:22 22 seconds questions after the present presentation concludes. Should you need assistance during this conference call, please 0:29 29 seconds signal an operator by pressing star then zero on your touchstone phone. Please note that this conference is being 0:36 36 seconds recorded. I now hand the conference over to Mr. Amit Shivas. Thank you and over to you sir. 0:46 46 seconds Hi good morning everyone. On behalf of BNK secretary, I would like to welcome you all to the CTF April 26 earning conference call of AIA real estate. 0:57 57 seconds Joining us today from the management are Mr. Arid Army MD Aritila Real Estate, Mr. Katy Jen, MD and CEO Bill Estate, Mrs. Sa CFO Arisa Real Estate and Mrs. 1:10 1 minute, 10 seconds Kusha CFO BA Estate. We will begin the call with the opening remarks from top of management following which we'll open 1:18 1 minute, 18 seconds the floor for question and answer session. I would like to hand over the call to management for the opening remarks. Thank you and over to you sir. 1:28 1 minute, 28 seconds Thank you. 1:29 1 minute, 29 seconds Good morning everyone and thank you for joining us for Q3 FI26 earnings call. 1:37 1 minute, 37 seconds India's growth momentum remained strong during the quarter with real GDP at 8.2% 1:44 1 minute, 44 seconds 2% the fastest in five quarters supported by resilient domestic demand 1:50 1 minute, 50 seconds steady service services activity and continued public capital expenditure the 1:56 1 minute, 56 seconds RBI revises FI26 growth forecast to 7.3% this backdrop continue to be 2:05 2 minutes, 5 seconds constructive for housing demand in residential real estate Q3 FI26 saw 2:13 2 minutes, 13 seconds units Sales moderate across major cities even an overall sales volume increased 2:21 2 minutes, 21 seconds driven by continued appetite of premium luxury and entra luxury house. The LMR market remained a key anchor for 2:30 2 minutes, 30 seconds high-end demand with NCR Bangaluru and Pune also showing healthy traction. 2:37 2 minutes, 37 seconds Prices continued to appreciate across key micro markets, reflecting a clear shift toward higher value qual higher value quality housing. 2:48 2 minutes, 48 seconds Against this context, we are delighted to share robust momentum across our launches and ongoing portfolio. We 2:58 2 minutes, 58 seconds successfully lost bilah praha in sector 71 Guruga achieving complete sellout 3:05 3 minutes, 5 seconds within 24 hours and and delivering over rupees 1,850 3:12 3 minutes, 12 seconds crores in free sales an outcome that strongly validate customer confidence in our execution capabilities. 3:22 3 minutes, 22 seconds We also launched Bila Awam in Manger Pune expanding into new market micro 3:28 3 minutes, 28 seconds market and reinforcing our strategy to build more diversified futures ready portfolio. 3:37 3 minutes, 37 seconds Equally encouraging is a strength of sustainance pre-sales which continue to provide a solid dependable base 3:45 3 minutes, 45 seconds throughout the quarter. Demand across our advancing inventory remain healthy supported by consistent consumer 3:53 3 minutes, 53 seconds inquiry, strong site visits and steady convergence. Bilanara and Bilaara 4:00 4 minutes continue to lead this momentum reflecting the enduring appeal of our design offering, quality of education 4:08 4 minutes, 8 seconds and grant trust. Our operating performance was exceptional this quarter. In Q3 FI26 we deliver pre- 4:18 4 minutes, 18 seconds sales of rupees 2576 crores a sharp 27 276% year on increase and collection 4:28 4 minutes, 28 seconds rupees 1,290 crores up 157 year on year for 9 month 4:35 4 minutes, 35 seconds FI26 pre-sales sales to Indian rupees 3,848 crores up 64% year on year and 4:44 4 minutes, 44 seconds collection rose to 2,347 cr up 44 years on year on year 4:51 4 minutes, 51 seconds underscoring the strength of our execution and considered momentum in our business. 4:58 4 minutes, 58 seconds We are excited about the quarter ahead with multiple launches planned across key region strengthening our purchase in 5:06 5 minutes, 6 seconds core markets and keeping our growth momentum firmly on track. Operationally, 5:13 5 minutes, 13 seconds construction progress remain on track across projects. Safety and sustainability continue to be a core to 5:21 5 minutes, 21 seconds how we build. Our sites have achieved approximately 58 million safe man hours. 5:27 5 minutes, 27 seconds Bilanara was recognized with national safety council safety seal award reinforcing our stringent on-site safety 5:36 5 minutes, 36 seconds standard. It has also received BREM certification a UK based sustainability standard and is the only project in 5:44 5 minutes, 44 seconds India to receive this recognition. On the development we are in advanced state discussion with few society and we are 5:53 5 minutes, 53 seconds optimistic about concluding these engagements soon to further strengthen brand visibility and considering our key 6:01 6 minutes, 1 second market. We have also elevated marketing presence by becoming the principal sponsor of Gujarat Titan in the IPL. 6:11 6 minutes, 11 seconds We remain focused on design excellence, customer centricity while upholding the highest standards of safety and quality, 6:20 6 minutes, 20 seconds delivering superior living experiences and creating long-term value for all our stakeholders. Thank you. 6:43 6 minutes, 43 seconds Hello. So, can we start with the Q&A session? You can. 6:50 6 minutes, 50 seconds Okay, sir. Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a 6:57 6 minutes, 57 seconds question may please press star and one on their touchstone telephone. If you wish to remove yourself from the question queue, you may press star and 7:06 7 minutes, 6 seconds two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, they will wait for a moment while the question cue assembles. 7:28 7 minutes, 28 seconds The first question is from the line of Karan Kana from Ambbit Capital. Please go ahead. 7:35 7 minutes, 35 seconds Yeah, thanks for the opportunity. Um, just a couple of questions from my end. 7:39 7 minutes, 39 seconds Uh, Katy, in the last call you spoke about uh maintaining the FI26 sales guidance of 8,000 crores. Uh given that 7:46 7 minutes, 46 seconds Miara phase 3 is now pushed to SI27 uh do you still maintain that outlook also on Miara uh you were expecting Tawati 7:55 7 minutes, 55 seconds launch in March but now given that it's delayed uh can you talk about the market outlook overall especially worldly given 8:02 8 minutes, 2 seconds the plethora of luxury and ultra luxury launches that were introduced recently. Hi Karan, good morning. 8:11 8 minutes, 11 seconds Yeah. So, uh we continue with our uh optimism for the current year and we have confidence about exceeding uh our 8:20 8 minutes, 20 seconds last year's pre-sales target. Uh we are on track for that. We are uh queuing up for several launches this quarter. Uh 8:29 8 minutes, 29 seconds primarily uh the Tane Verilla uh the Hindalfo land um uh which is going to be 8:37 8 minutes, 37 seconds a major launch for us. that will be followed by new phase of Ara uh the one project in Bisa 8:45 8 minutes, 45 seconds um a new phase at Pune Puna. So there are lots of launches we are also 8:52 8 minutes, 52 seconds planning to launch uh the balance phase of Iara in Bangalore because we have had a very strong run on sustenance in Iara 9:01 9 minutes, 1 second so we don't have enough inventory we are going to launch the new phase in Iara too. So I think we have plenty of inventory and we are quite confident 9:09 9 minutes, 9 seconds that we should be able to go by the target that uh we have planned despite the delay in nara tower C because 9:19 9 minutes, 19 seconds obvious reasons of delay in approvals because of that uh legal you know that's the Supreme Court case we have to 9:26 9 minutes, 26 seconds extricate that part of the land outside of the full layout uh it took a little more time than what we had anticipated we got the layout approvals now we are 9:35 9 minutes, 35 seconds waiting the MOEF and the other uh balance approvals including RA. So therefore it has got pushed into the new 9:43 9 minutes, 43 seconds year. Uh but uh we remain very optimistic about the worldly market given our product uh pricing location 9:52 9 minutes, 52 seconds size brand etc. I think we're pretty confident that we'll be able to do very well in this uh in our Villa Nara Tower C launch. 10:02 10 minutes, 2 seconds Sure. So just to follow up Katy on the launches that are slated for fourth quarter uh is it possible to share the exact timelines or are there any uh 10:10 10 minutes, 10 seconds chances of let's say a spill over in launches of these projects as well? Uh see as far as Pune Pune is concerned we 10:18 10 minutes, 18 seconds already have the um the RAA for Iara we already have the RAA we are awaiting the RAA for Sane and Aika new phase as well 10:28 10 minutes, 28 seconds as uh uh for Boiser uh which we're pretty confident that all these RAS should come to us in the first week of 10:35 10 minutes, 35 seconds February. So there is a little chance of uh not these launches not happening. 10:41 10 minutes, 41 seconds Sure. And then secondly uh uh you know we were hopeful of new BD announcements in third quarter. Um so can you update 10:48 10 minutes, 48 seconds us on on status of the same and we still maintain the 10 15,000 cr BD guidance uh for for the year. 10:56 10 minutes, 56 seconds Yeah as we have you know always maintained uh to this group that you know we are very careful about what we do. We are we are not taking any risk 11:04 11 minutes, 4 seconds other than in the market risk uh which has actually proven uh if you see our performance for the last several years 11:11 11 minutes, 11 seconds and quarters each of our BD launches of project launch has been very successful because we have chosen the markets very carefully and we have prayed a very 11:20 11 minutes, 20 seconds prudent price for the land so uh that is and touchwood we have not had any issues with any of the park projects in terms 11:27 11 minutes, 27 seconds of legal zoning or or approvals etc. Uh so so so we continue with that principle 11:35 11 minutes, 35 seconds of ours. We are very confident uh that we will we have several u um uh term sheets done and proposals uh at a very 11:44 11 minutes, 44 seconds advanced stage. Uh but it has so happened that sometimes some of the things which you are on the verge of signing we find out something uh and fails in due diligence. Therefore we couldn't um launch anything this year. 11:55 11 minutes, 55 seconds But we're still hoping and pretty confident that we should be able to conclude on the lines that I have previously confirmed in the region of 12:03 12 minutes, 3 seconds about 10 to 15,000 crores this year before March. We are trying for that. Uh but we also wanted to remind you that we 12:10 12 minutes, 10 seconds had a wonderful uh uh you know BD u success rate. Last year we uh finalized 12:17 12 minutes, 17 seconds 25,000 crores of projects. uh so this year um I know the the process remain the same but I've always maintained that 12:25 12 minutes, 25 seconds we can't assure that every quarter we'll sign something it depends on the quality of the deal and the depth of due diligence that we do for each project uh 12:34 12 minutes, 34 seconds so I would like to maintain that we are very close to signing some deals both the uh open lands and redevelopment um and we're hoping that before March 31st 12:43 12 minutes, 43 seconds we should be able to conclude deals worth at least about 10,000 crores sure and this lastly on the broader macro outlook for Thank you sir. 12:52 12 minutes, 52 seconds Yeah. May I request? Sure. I'll come back in the Yeah, sure. Thank you. Thank you sir. Thanks sir. 12:59 12 minutes, 59 seconds Ladies and gentlemen, in order to ensure that the management is able to address questions from all the participants in the conference call, please limit your question to three per participant. 13:11 13 minutes, 11 seconds The next question is from the line of Akash Gupta from Namura. Please go ahead. Uh sorry am I audible? 13:20 13 minutes, 20 seconds Yes. Yes. 13:22 13 minutes, 22 seconds Hi sir. Uh good morning. Congratulations on the good performance. So I just wanted to follow on from the B side like 13:30 13 minutes, 30 seconds like uh uh how are we thinking uh on this FY27 growth I think we the way we had direct 13:40 13 minutes, 40 seconds the market is like we'll take up from 80 billion to 150 billion in 3 years and then uh we have not done any BB so uh 13:49 13 minutes, 49 seconds even if we do this BB right now how confident are we that we'll be able to launch that in FI27 and and uh we do not have any projects. 13:58 13 minutes, 58 seconds So what kind of growth do we think in FY97? 14:04 14 minutes, 4 seconds Hi Akash. Yeah, as I mentioned, you know, we have a very strong BD pipeline. Um and and of course you're very right. 14:12 14 minutes, 12 seconds It's a challenging to for us to launch I mean finalize these projects and launch in the same financial year uh or you 14:20 14 minutes, 20 seconds know within 12 months unless we have a project which is ready for launch. So we are on the lookout for all sorts of projects provided the the title the 14:28 14 minutes, 28 seconds legal issues uh the location the size everything is okay. Uh but however 14:35 14 minutes, 35 seconds having said that we also have no strong series of projects lined up for next year. Uh projects where new faces of 14:44 14 minutes, 44 seconds these projects uh for example you know niara itself which will come up next year. I should that should give us a good filip. Then we have you know projects of Sriaya new phase coming up. 14:55 14 minutes, 55 seconds Uh we will have um Puna a new phase coming up. This year we are doing phase two maybe phase three. Uh Navia will 15:04 15 minutes, 4 seconds also in NCR will come up. Even in Kane I think a new phase we can launch. 15:10 15 minutes, 10 seconds Similarly NAM in Pune we can launch a new phase. we may attempt to you know uh put all our efforts to launch the India 15:18 15 minutes, 18 seconds Humpai project in um in NCR uh in Delhi. 15:23 15 minutes, 23 seconds So we have enough of projects um uh and we haven't firmed up what kind of growth or what is that but I think uh we have 15:31 15 minutes, 31 seconds enough projects uh for us to launch in the next year which keep us busy and we'll also focus a lot on business development. 15:39 15 minutes, 39 seconds Okay. any development in the India fume project? Uh is there any like progress there? 15:49 15 minutes, 49 seconds Uh yeah. So I'm we are hoping that we'll be able to resolve the uh the the the approval issue now. We've got some hold 15:57 15 minutes, 57 seconds on it. Um and we are in the process of doing that and we're trying to launch it in the next financial year. 16:04 16 minutes, 4 seconds Okay. And then my final question is on the living income. uh that leasing income is down 11% on a year-over-year basis. What's the reason behind that? 16:16 16 minutes, 16 seconds There's some mathematics. Yeah, the properties are 100% occupied. If you see 9 months, there's a small reduction 16:23 16 minutes, 23 seconds because some of the space which has been occupied by our own company gets eliminated in the consolidation. We have expanded some of our office space. So 16:31 16 minutes, 31 seconds that's why the leaving income is slightly lower. 16:35 16 minutes, 35 seconds 100%. Thank you so much. I'm done with you. Sure. Thank you, sir. 16:42 16 minutes, 42 seconds The next question is from the line of Hush Patak from MK Global. Please go ahead. 16:48 16 minutes, 48 seconds Yeah. Hi, good morning team and first of all congratulations for the strong operational performance. Uh so KT my first question was on the commercial 16:56 16 minutes, 56 seconds portfolio. So how are we thinking of the ramp up there? I understand we have planned a 1 million square ft of commercial development at the Niara 17:03 17 minutes, 3 seconds site. uh what are the other uh developments that you are thinking of and if you can touch on uh some 17:10 17 minutes, 10 seconds geographic uh view and the kind of development maybe whether it's an office or a retail or a mix of both please 17:19 17 minutes, 19 seconds yeah uh hi hush um uh so yeah we are uh as I mentioned we were because of the in intensive capital required for 17:28 17 minutes, 28 seconds commercial I've mentioned that you're on the lookout for a partner so that is still work in progress However, we are progressing with the 17:36 17 minutes, 36 seconds design for our project in Niara, the commercial project of approximate a million square feet. We have started progressing on that. We're also on the 17:44 17 minutes, 44 seconds lookout for similar parcels of lands in prime um commercial areas uh districts of Mumbai and NCR. 17:53 17 minutes, 53 seconds Once we have a strong partner, we further move ahead with it. But uh on on other areas like progressing on the design and you know planning etc. we are we are already moving ahead. 18:05 18 minutes, 5 seconds Uh sure. So do we have any uh yeah rental target in mind that uh you know uh some rental income we are looking to 18:13 18 minutes, 13 seconds achieve maybe in the next uh 5 years or so. 18:16 18 minutes, 16 seconds So as I mentioned we are looking at at least in about a,000 crores you know right now we have about 144 crores of growth rentals coming up from a current 18:24 18 minutes, 24 seconds projects annually would like to expand it to at least 1,000 crores in the next four years four to five years. 18:32 18 minutes, 32 seconds So and that thing should very much easily be possible right and any uh plans of uh expanding 18:40 18 minutes, 40 seconds the team or onboarding management personnel to grow this commercial business. 18:44 18 minutes, 44 seconds Yeah. So already we have a team we have a very core team which is focused on you know uh managing the commercial uh portfolio design etc. At the appropriate time we will expand that team. 18:56 18 minutes, 56 seconds Okay. And my last question is on the ITC deal. What is the progress there? uh when can we expect conclusion and uh reset of the cash flows? 19:05 19 minutes, 5 seconds Yeah, so we would probably we are already got the CCI approval near and we are now awaiting the transfer of the lease of the land on which the plant is. 19:18 19 minutes, 18 seconds So part of the requirement of the lease uh transfer is a MOF of approval fresh MOF of approval. Uh so we are pursuing 19:26 19 minutes, 26 seconds both the MO approval and thereafter the lease would be transferred. We are uh very hopeful that in the next two months 19:35 19 minutes, 35 seconds uh we should be able to close both uh both these issues. So we are very uh hopeful of receiving the money before the end of this year. 19:47 19 minutes, 47 seconds Okay. So that answers my question. Thanks a lot. 19:50 19 minutes, 50 seconds Thank you sir. The next question is from the line of Rishit Sha from Access Capital. Please go ahead. 19:59 19 minutes, 59 seconds Uh yeah, thanks for the opportunity and congrats on good set of numbers sir. Uh so two questions. So firstly on the tan 20:06 20 minutes, 6 seconds if we see the project launch so we have increased the GDB from about 1,700 2700 uh cr. So is it more related to maybe RA 20:15 20 minutes, 15 seconds or are you seeing a better demand expectation over there? Uh sorry what is that? Uh Rishab I didn't understand about Tane. 20:25 20 minutes, 25 seconds So Tane we had initially kind of uh we looking at the launch of about 1,700 crores but now in uh this time presentation we 20:34 20 minutes, 34 seconds have increased the GDV to about 2700 crores the launch GDV. Yeah. 20:40 20 minutes, 40 seconds Yeah. So, so, so, so we are seeing good, you know, prospects for Tany and therefore we feel we can consider a 20:50 20 minutes, 50 seconds higher launch area considering the, you know, prospects which we are expecting for 20:57 20 minutes, 57 seconds I think it's a very strong market. It's a very strong demand market and we're pretty excited about this launch and the product has also come out fine. We're 21:05 21 minutes, 5 seconds waiting for the radar clearance and I think the the the feedback is that we need to launch much more because there's so much demand. So that is probably the 21:14 21 minutes, 14 seconds you know as for the planning we decided to go ahead with a larger inventory. 21:18 21 minutes, 18 seconds Sure. Makes sense. Makes sense. And just to follow up to on the previous uh launches that you said uh so the next phara also which we are looking to 21:26 21 minutes, 26 seconds launch what kind of GDP are we looking at? Uh that's about 1,600 crores. 21:32 21 minutes, 32 seconds 1,600 crores the new the the balance phase which we already have that area. 21:37 21 minutes, 37 seconds So I mean we have almost run out of inventory because we sold more than 1400 crores uh from the first phase. So I think it's the right time for us to open up the new phase. 21:47 21 minutes, 47 seconds Perfect. Perfect. And uh just can you if you can place any timelines for the near and next hour maybe maybe you can give a quarter wise. 21:58 21 minutes, 58 seconds Yeah, just to be know prudent, I think considering all the approvals and the preparation required, I think H1 is a 22:05 22 minutes, 5 seconds reasonable assumption for us for for the launch of Tawasi. Perfect. Thank you. Thank you. Thanks. 22:15 22 minutes, 15 seconds Thank you, sir. The next question is from the line of Dshit Dhi from Whilestone Financial Advisors Private Limited. Please go ahead. 22:24 22 minutes, 24 seconds Uh yeah, thanks for the opportunity. So some of my questions have been answered. 22:28 22 minutes, 28 seconds Uh one uh thing so you mentioned that why we have increased the GDV of Tan. Uh but if uh there are couple of projects 22:37 22 minutes, 37 seconds the Birla Ara and uh Birla Puna we where we have scaled down the uh GDB uh which 22:44 22 minutes, 44 seconds was mentioned in Q2. So why we have uh you know reduced the size of uh those two projects? Uh that's my first question. 22:54 22 minutes, 54 seconds Okay. 22:55 22 minutes, 55 seconds Ara you know as you know in the first phase we had a complete sellout uh we have this is the this is the last phase 23:03 23 minutes, 3 seconds I mean the second phase so we thought we'll divide into two parts because the project is so well placed so well located I think there's a huge 23:10 23 minutes, 10 seconds opportunity for us to you know redesign and create a huge margin on this project uh for the balance inventory so we wanted to actually keep one tower for 23:19 23 minutes, 19 seconds redesigning and get an exceptional uh you know return on that uh because in that market that location in that size 23:26 23 minutes, 26 seconds of a project there is nothing nearby anywhere no land availability so I a huge opportunity for us to create huge value tremendous upside value so that's 23:35 23 minutes, 35 seconds why we kept one projects aside one tower aside which we can launch at a much later date because financially we have 23:43 23 minutes, 43 seconds done very well the returns are very healthy cash flow is very strong so I thought we can do with this two uh towers and wait for you know for 23:51 23 minutes, 51 seconds exceptional value creation for the last tower uh which is the other one we mentioned. 23:56 23 minutes, 56 seconds The second one is Funa. Uh Puna which is what we have done is that we want to kind of launch the particular phase and 24:05 24 minutes, 5 seconds thereafter we want to launch the subsequent phase. We want to break it into phases. Our earlier plan was to you know work together but we want to phase it out. 24:12 24 minutes, 12 seconds But is it because you are seeing a uh you know the demand pressure in Pune? 24:19 24 minutes, 19 seconds No. our launch at Biram in 1 month we've sold over 35% of the inventory so we not 24:26 24 minutes, 26 seconds seeing that we just want to uh not to kind of uh you know have two multiple launches going on at the same time so we want to complete one and thereafter 24:34 24 minutes, 34 seconds launch the second okay uh my second question is uh regarding the progress on tower uh one 24:41 24 minutes, 41 seconds and two in nara so uh by when we are uh targeting delivery and revenue recognition in which 24:51 24 minutes, 51 seconds Yeah. So that is as per our plans. FI28 is FI28 is when we'll recognize revenue for tower one and a year later in tower two. 25:01 25 minutes, 1 second Okay. And my last question is uh you know uh last year uh if we see uh we have done whatever launches we have done 25:09 25 minutes, 9 seconds most of the launches were done in Q4. Uh even this year uh you know most of the launches are skewed toward Q4. So will 25:18 25 minutes, 18 seconds this be the kind of trend or from next year onwards you know we can divide the uh launches uh more in every quarter? 25:28 25 minutes, 28 seconds Ideally you know uh we would like to do it in launches in every quarter evenly spread nicely sliced out but the reality 25:37 25 minutes, 37 seconds is much different. We were planning to launch uh the Tani project in Q3. uh however because of the NGT ban and all 25:45 25 minutes, 45 seconds other situation it got pushed to Q4 similarly we had designs to launch uh tower C of Nana also much earlier but it 25:53 25 minutes, 53 seconds didn't happen it so happened that all of them got clubbed in Q4 uh and the pattern looks like know it 26:01 26 minutes, 1 second will take some time for us to break out of it as we do more BDS and spread this thing out we hopefully we'll have you 26:08 26 minutes, 8 seconds know equated launches in all quarters our attempt is to reach there but I think it will take a few more quarters to achieve that balance. 26:16 26 minutes, 16 seconds And have we finalized the specifications for tower C? 26:23 26 minutes, 23 seconds Yeah. So in terms of size per flight or we have a fair idea know on what we're going to do. If not uh I think we would 26:32 26 minutes, 32 seconds like to talk about it more closer to the launch. 26:36 26 minutes, 36 seconds Okay fine that's it from my side. Thank you. Thank you. 26:42 26 minutes, 42 seconds The next question is from the line of Taran Agraal from Old Bridge. Please go ahead. 26:51 26 minutes, 51 seconds Questions. 26:52 26 minutes, 52 seconds Sorry to interrupt you sir. Your voice is not audible. Is it audible now? 26:57 26 minutes, 57 seconds No sir, it is very low. Can you please use your handset? Yes sir. Hello. Is it audible now? Yes sir. Yes. Okay. 27:06 27 minutes, 6 seconds Yeah, we can hear you. 27:08 27 minutes, 8 seconds Good morning and thanks for the opportunity. 27:11 27 minutes, 11 seconds Three questions for me. Um if I look at your GDV of 70,000 crores uh for your ongoing projects, uh what is the margin 27:19 27 minutes, 19 seconds that you're working with and for your upcoming projects? How would the margin profile work and how much cash has 27:26 27 minutes, 26 seconds already been invested between land approvals, designs and all the other activities around them? 27:34 27 minutes, 34 seconds So hi Karan. uh so as the margins uh we had mentioned is always in the range over 25 to 30%. Some of the projects which are our own projects are clocking 27:43 27 minutes, 43 seconds more than 40%. Some of these projects which we had signed earlier which are JV projects again we have very healthy margins north to 30 35%. 27:53 27 minutes, 53 seconds Uh as far as cash is concerned you know most of our projects are working at negative working capital uh because of 28:00 28 minutes very strong sales and very strong collections. Um so hardly we have taken any construction loans so from that 28:08 28 minutes, 8 seconds point of view we're in a very very healthy position cash wise but given that given that uh you have uh 28:16 28 minutes, 16 seconds some projects uh which are yet to be launched uh while I understand that the overall business is working with a negative working capital uh it's really 28:25 28 minutes, 25 seconds specifically for those 44,000 crores worth of launches uh between the entire background work how much would have been 28:32 28 minutes, 32 seconds invested till So broadly uh some of the land is the historic land which we have and overall 28:40 28 minutes, 40 seconds would be we would have invested approximately 4 and a half th000 to 5,000 crores in the land acquisitions and 28:48 28 minutes, 48 seconds everything yeah all put together and as yeah as we stand all the land payments 28:56 28 minutes, 56 seconds have been made we have some small amount of land payments due for two of our projects which is the Tana project and the Puna project but both are in SPVS 29:05 29 minutes, 5 seconds and the SPVS are fully funded because that is joint venture with IFC. So both the SPVS are fully funded. So uh the balance line payments which are to be 29:13 29 minutes, 13 seconds made are only already provided for. So as we stand there's no further commitment uh required for land payments. 29:21 29 minutes, 21 seconds Got it. The second question is how are you seeing the health of the South Bombay real estate market particularly in the areas you're focusing because 29:28 29 minutes, 28 seconds it's almost 55% of your overall GDP and more importantly almost twothird of your upcoming GDB. 29:37 29 minutes, 37 seconds Um so Karan um you know so far we had a wonderful run for our project Nara we have a wonderful run for a project 29:44 29 minutes, 44 seconds Anayou in Waleshwar. uh depending on the sort of locations that we pursuing the kind of sizing and pricing and backed by 29:52 29 minutes, 52 seconds a very strong brand I think we have no cost to worry if the product is right pricing is right and we understand the consumers uh I think we'll have uh you 30:01 30 minutes, 1 second know we'll have a healthy sales uh velocity uh we have experienced that and we and I think the market continues to be robust and in good demand so we're 30:10 30 minutes, 10 seconds not uh too much worried about that okay and the last question uh slightly basic but you know typically how does 30:20 30 minutes, 20 seconds the developable is to salailable is to carpet area uh split work for your projects 30:28 30 minutes, 28 seconds it's varies from region to region project to project so largely to the consumer we go by carpet areas and the developable area 30:37 30 minutes, 37 seconds what you're talking about we mentioned here these are all salvailable areas but typically for example for in Mumbai uh 30:45 30 minutes, 45 seconds it is about uh um uh 60% or 60 60% on carpet 30:53 30 minutes, 53 seconds 60% available is carpet is it no uh 60 yeah 60% on carpet isable 1.6 Six times carpet is available. 31:07 31 minutes, 7 seconds Thanks. Thank you sir. 31:11 31 minutes, 11 seconds Ladies and gentlemen, to ask a question, please press star and one. Now participants who wish to ask questions 31:19 31 minutes, 19 seconds may please press star and one at this time. The next question is from the line of Akash Gupta from Numura. Please go 31:28 31 minutes, 28 seconds ahead. Uh hi uh thank you for taking my question once again. Sir I just wanted to uh just revisit the 25% growth 31:37 31 minutes, 37 seconds guidance I mean the guidance of 150 billion by 28 uh and my question is that 31:45 31 minutes, 45 seconds balancing between risk and growth uh and uh we are being too conservative on the 31:52 31 minutes, 52 seconds BDH that we trying to minimize the risk itself. So should we still hold that guidance that you have of 150 billion by FI28? That's my fourth question. 32:04 32 minutes, 4 seconds Yeah Akash I think um given our current pipeline current you know GDB what we have balance to launch uh and also that 32:13 32 minutes, 13 seconds confidence on continuing to do strong BD for the rest of the you know uh period of this year and next year and the year 32:21 32 minutes, 21 seconds following that I think we are reasonably confident that we'll be able to achieve that target. 32:27 32 minutes, 27 seconds Okay. And uh my second question is uh I think in this quarter presentation we did not put in the cash flow 32:34 32 minutes, 34 seconds uh the cash flow slide. Uh so what was the operating cash flow generation uh this quarter and how are we thinking about operating cash flow in FI27? 32:47 32 minutes, 47 seconds We we've got around two 2300 2 3 47 of collections as we mentioned and our overall uh project development uh related costs around uh you know 1,300. 32:59 32 minutes, 59 seconds So uh we have a very strong cash positive cash flow in the 9 months and December 25. 33:09 33 minutes, 9 seconds Yeah. Uh I think that's all the question I had. Thank you so much. Thank you. Thank you sir. 33:16 33 minutes, 16 seconds The next question is from the line of Priti Raj from Unifi Capital. Please go ahead. Yeah. Uh thanks for taking my question. 33:24 33 minutes, 24 seconds I said this is more on macro. While you looking at the demand side, you know which are the markets where the demand is resilient and which are the markets 33:33 33 minutes, 33 seconds where there is stress and also the price points where you are seeing pressure in the demand. It's more from a market not just for your company. 33:43 33 minutes, 43 seconds Just for our company. No, it's not just for your company. It's more from a macro. 33:48 33 minutes, 48 seconds Yeah. Yeah. Absolutely. So, I think these four markets that we are currently operating and we are reasonably confident of very very confident of you 33:57 33 minutes, 57 seconds know uh the resilience in all these markets they're all doing well. Keep be it Mumbai be it PH suburb Mumbai a very 34:05 34 minutes, 5 seconds knowable market in Pune Bangalore is doing very well. All our projects have shown good uh traction. Uh NCR has done 34:14 34 minutes, 14 seconds exceptionally well. Uh one market Guram has done very well for us and I we have continued to have very positive feelings 34:21 34 minutes, 21 seconds about this market. Um Delhi of course there is no supply. So I think we're looking at you know eagerly at launching at our Delhi project. I'm sure we'll do 34:30 34 minutes, 30 seconds very well. No is one market we'd love to have. There's so much demand. There's lack of supply there. It's a great market growth market. Uh we're trying 34:38 34 minutes, 38 seconds very hard to get into that market. So all of these markets and we are there today uh these four markets we are very 34:45 34 minutes, 45 seconds bullish about it in general not just uh uh for us but as a you know feature if we as I mentioned um if you do your 34:53 34 minutes, 53 seconds product well design well understand the consumer um requirements and design according to that um I think um and 35:02 35 minutes, 2 seconds price it accordingly I think we have very good opportunities in all these markets. I think the India story is very strong. Um as mentioned in our you know 35:12 35 minutes, 12 seconds speech by Mr. Dalmi the the economy is growing well. Infrastructure is growing very well. Airports are coming up um in 35:19 35 minutes, 19 seconds in very strong locations. Uh connectivity is improving in all cities. 35:24 35 minutes, 24 seconds Uh so on the back of which real estate I am very very confident that it'll grow very strongly. Um and as now even with 35:32 35 minutes, 32 seconds the the uh the mortgage rates coming down I think the story which was largely concentrated in the uh in the luxury 35:39 35 minutes, 39 seconds segment now will also expand to the mid segment. So I think uh we are very positive about the whole real estate 35:46 35 minutes, 46 seconds market expanding not only in the real in the luxury segment but also in the mid premium and the mid segment. 35:54 35 minutes, 54 seconds Okay, I just a bookkeeping question. 35:57 35 minutes, 57 seconds Will there be any revenue recognition next year or bulk of the revenue recognition will start running from 28? 36:03 36 minutes, 3 seconds Uh there will be uh some kind of revenue recognition. Our project in Bangalore, Deralat, Titia, we'll definitely hand over next year. We expecting a top line 36:12 36 minutes, 12 seconds about 650 crores from there. We also uh will be handing over in uh in Navia near a new phase in Navia. So I think uh that 36:22 36 minutes, 22 seconds much will be there next year and after that it will be when when NRA gets uh completed. 36:29 36 minutes, 29 seconds That's all from my s. Thanks. Thank you. 36:32 36 minutes, 32 seconds Thank you sir. Ladies and gentlemen to ask a question please press star and one now. 36:40 36 minutes, 40 seconds Participants who wish to ask questions may please press star and one at this time. 36:46 36 minutes, 46 seconds The next question is from the line of Taran Agraal from Old Bridge. Please go ahead. 36:54 36 minutes, 54 seconds I uh just wanted to check for your upcoming launches. uh how would you segment I mean what percentage would you 37:00 37 minutes segment as luxury projects and what percentage would you segment as so to say slightly midm marketish and second 37:10 37 minutes, 10 seconds uh as you uh replenish your pipeline is there a uh conscious effort uh to sort 37:17 37 minutes, 17 seconds of move away from luxury going forward hi karan um yeah so we have always 37:25 37 minutes, 25 seconds maintained a certain price threshold below which we are not willing to look at because it also to make sure that whatever we deliver we deliver to the 37:34 37 minutes, 34 seconds best of quality within the know requisite time. So we need to work with the best of contractors and consultants. 37:39 37 minutes, 39 seconds So we had said that below I don't know 9,000 rupees per square foot we'll be reluctant to look at in markets uh any 37:46 37 minutes, 46 seconds market u maybe Bombay could be slightly higher but I think when we choose luxury also we'll be very careful about which 37:55 37 minutes, 55 seconds micro markets which product which location and what's the kind of supply and demand in those markets but I think 38:02 38 minutes, 2 seconds given uh right locations real estate is all about you know micro markets being location that region the competition is 38:10 38 minutes, 10 seconds very localized. So in every location even in the higher agree segment there will be enough and more locations where you know the the right circumstances are 38:19 38 minutes, 19 seconds there the right uh characteristics are there we can really do good project and can have very super demand. So we would 38:26 38 minutes, 26 seconds not consciously kind of decouple from that uh area. I think we'll continue to look at micro markets with high potential. It could be in the high 38:35 38 minutes, 35 seconds luxury segment. that could be in the mass premium segment but I think we'll continue to look at the right micro markets 38:43 38 minutes, 43 seconds got it and typically when you look at micro markets how do you define micro markets I mean is there a certain fixed radius certain fixed 38:51 38 minutes, 51 seconds time that it takes to navigate how does it work yeah so that so some micro markets are large for example tane itself there are 38:59 38 minutes, 59 seconds several micro markets in the city in the district of tani there within tane west there are several micro markets 39:06 39 minutes, 6 seconds So each it changes from each region to region um uh you know mostly about 39:14 39 minutes, 14 seconds addresses locations is largely the address so uh so between worldly prabhaadvi 39:22 39 minutes, 22 seconds lower parail I mean it's not one single micro market these markets change uh worldly cface could be another micro market I'm just trying to tell you 39:30 39 minutes, 30 seconds nuance of how micro market works so there is no very clear definition it's largely the address and where people likes to belong. 39:38 39 minutes, 38 seconds Right. And got it. Got it. Thanks. Thank you. Thank you. 39:43 39 minutes, 43 seconds Thank you, sir. The next question is from the line of Aush from Choice Institutional Equities. Please go ahead. 39:58 39 minutes, 58 seconds Hello, Mr. Aayush. Your line has been unmuted. Please go ahead. 40:06 40 minutes, 6 seconds Hello Mr. Aayush, your line has been unmuted. Please go ahead. Please move to the next one. 40:14 40 minutes, 14 seconds Okay, sir. The next question is from the line of Janvi Sha from Share India Securities. Please go ahead. 40:23 40 minutes, 23 seconds Hello. 40:24 40 minutes, 24 seconds Thank you so much for letting me ask a question. Hello. Hi. Uh, sorry. Just have like one question on the debt side. 40:30 40 minutes, 30 seconds if you can give us some look on how the debt situation is going to look moving forward and also like uh second question 40:38 40 minutes, 38 seconds is for the next year's launches we have a lot of pipeline but uh all of them is and post that we don't have much I think 40:46 40 minutes, 46 seconds someone else also asked the same question for FI27 how are we looking at the cash flows in equity if you can just 40:53 40 minutes, 53 seconds give some guidance on the same so our net debt has come down substantially 41:00 41 minutes uh Q1 Q. So our net debt currently is 3,500 41:07 41 minutes, 7 seconds and it's around 0.8 take is the broadly the net debt and uh led to equity and uh 41:14 41 minutes, 14 seconds we have significant capacity to take on more but our cash flows are strong so our net debt will remain uh very very 41:21 41 minutes, 21 seconds comfortable and also uh out of the net debt which I mentioned this includes uh some of the uh construction finance and 41:29 41 minutes, 29 seconds the LRD which we have taken for the uh rental assets which are 100% uh leased out so the debt position is very 41:38 41 minutes, 38 seconds comfortable Well, and we have additional uh dry powder to kind of uh take on more debt in January. We are also not 41:47 41 minutes, 47 seconds considering right now the money to be coming from the sale of paper business. 41:52 41 minutes, 52 seconds That's an additional that when it comes it will be extremely competitive. Okay. So that will help our cash flows. 41:59 41 minutes, 59 seconds Thank you so much. uh also uh I know you answer the question but in when I was looking at other people's calls in this 42:07 42 minutes, 7 seconds quarter uh there was some slowdown in the sales we had a very good uh sales velocity I feel uh moving forward uh 42:17 42 minutes, 17 seconds what do we think is going to happen uh it is a very mixed opinion in the industry as to LCD will work or what 42:24 42 minutes, 24 seconds segment will work uh uh on our end what do we will not to happen. Second, any 42:31 42 minutes, 31 seconds more approval delays which are uh unseen or that we think is going to happen. 42:39 42 minutes, 39 seconds Um so uh uh Jani we don't we're not expecting anymore. We are awaiting some RAS clearances. I think the rest is uh 42:48 42 minutes, 48 seconds on track. Tower C there is a few approvals to come but that's we have kind of you know pushed it to the next 42:55 42 minutes, 55 seconds year. Um um and as I mentioned earlier also we are extremely confident about the market in the micro markets we are 43:04 43 minutes, 4 seconds launching uh we have to be very you know prudent about uh the product designing of the product you know sizing etc 43:12 43 minutes, 12 seconds pricing all of that so we have done a lot of work on that and we are hoping that we should be hoping to deliver a very good performance in Q4. 43:23 43 minutes, 23 seconds Thank you. Thank you so much. Thank you ma'am. 43:28 43 minutes, 28 seconds Ladies and gentlemen, to ask a question, please press star and one. Now participants who wish to ask questions 43:36 43 minutes, 36 seconds may please press star and one at this time. 43:41 43 minutes, 41 seconds The next question is from the line of Dshit Dhi from Wildstone Financial Advisor Private Limited. Please go ahead. 43:49 43 minutes, 49 seconds Yeah, thank you for the opportunity sir. 43:52 43 minutes, 52 seconds uh many projects were you know stalled because of this EC clearance issue which is now uh you know uh which is now 43:59 43 minutes, 59 seconds behind us so because there were many projects which were stuck. So do you think there will be lot of supply coming uh coming in Bombay going forward 44:08 44 minutes, 8 seconds because all of these projects will get easy clearance and they can come you know simultaneously. So how do you see that supply pressure uh in Bombay? 44:19 44 minutes, 19 seconds Um hi diction as I mentioned you know largely these launches uh and the success of launches remains on the 44:26 44 minutes, 26 seconds concentration of supply in that micro market. Uh so I think largely these projects which you are mentioning must 44:34 44 minutes, 34 seconds be all spread all over I don't know of any uh project launches in our micro market in pane or in our 44:43 44 minutes, 43 seconds micro market in in Gura. So we are not really too much bothered about that. I 44:50 44 minutes, 50 seconds think we have a good product, we have good demand uh you know and with the right pricing and we should be able to perform very well. 44:59 44 minutes, 59 seconds Okay. And uh any uh specific reason for this uh deal because we did not anticipate it earlier because you were guiding for Q4 launch of Nihara 3 and 45:08 45 minutes, 8 seconds now we have u I just mentioned yeah I just mentioned you know this was because of that Supreme Court order 45:17 45 minutes, 17 seconds which is not anticipated. We it was we thought it will be the the case will be in our favor. How it went the other way. 45:24 45 minutes, 24 seconds There was some time some standoff between us and BLC. We had to extricate that land out of our approval system. It was all combined and there were some 45:33 45 minutes, 33 seconds challenges around that. Then it took some time for us to resolve it. So as always it takes so that was unanticipated. Okay. Thank you. 45:41 45 minutes, 41 seconds Yeah. 45:43 45 minutes, 43 seconds Thank you sir. The next question is from the line of love from antic stock broking. Please go ahead. 45:53 45 minutes, 53 seconds Yeah, thank you. Good afternoon everyone. Uh sir, uh my first question. 45:59 45 minutes, 59 seconds Yes sir. Uh sir, my first question I saw some uh some news article on BMC land that BMC land uh that they floated a 46:07 46 minutes, 7 seconds tender to auction that land parcel 30-year lease. Uh so they also put a base price. Uh any comment on that? uh 46:17 46 minutes, 17 seconds are we going for that land parcel, bidding for that land parcel or uh what is the uh what is the what is what is your view on that? 46:26 46 minutes, 26 seconds Yeah, I mean yeah so that the same parcel that you know that we we that the Supreme Court had decided to go in favor of the BMC BMC has come out of the 46:34 46 minutes, 34 seconds tender now they extended the tender dates. Uh we are also exploring uh you know participating in that either directly or through uh know through part 46:43 46 minutes, 43 seconds because currently as we stand they uh we are not qualifying as per the tender conditions to participate in that. uh 46:50 46 minutes, 50 seconds they asked for very very high uh level of uh no completed projects which we as a young company are not qualifying. So 46:59 46 minutes, 59 seconds we are looking at it you know whether it's constructively whether we can participate in that. Oh okay. 47:06 47 minutes, 6 seconds As of now we're not qualifying technically for that. 47:08 47 minutes, 8 seconds Okay. Okay. Okay. Okay. And uh my second question is you know um you mentioned 47:15 47 minutes, 15 seconds sir that uh you uh expect to close uh you're hopeful to close some deals 47:21 47 minutes, 21 seconds before March amounting to GDP of 10,000 or 15,000 cr. Just wondering uh how many 47:28 47 minutes, 28 seconds deals uh and uh uh in which um the markets uh if this get closed uh how 47:36 47 minutes, 36 seconds many deals do you think would amount to this 10 15,000 core GDP and in which market? 47:44 47 minutes, 44 seconds Yeah. So you know uh I've been kind of guiding uh the whole of this year. So to tell you any specific number I wouldn't 47:52 47 minutes, 52 seconds I wouldn't be doing justice. uh it could be I'm sure it's not just one deal it could be more than a deal and it'll be 47:59 47 minutes, 59 seconds largely in NCR, Mumbai, Pune, Bangalore these four markets within these markets only. Uh I don't want to guide you 48:07 48 minutes, 7 seconds beyond that uh because uh we are chasing quite a few number of deals. It could be a combination of any of this but just 48:15 48 minutes, 15 seconds keep our fingers crossed and hope that we kind of you know conclude it. I'll be very happy and it will not before March it be before March 31st. 48:23 48 minutes, 23 seconds That's what you're aiming for. 48:24 48 minutes, 24 seconds Oh yes yes yes. No no no sir we are hopeful that you'll be able to close. Uh thank you sir. Thank you sir. 48:31 48 minutes, 31 seconds Thank you sir. The next question is from the line of Amit Shivast from BNK securities. Please go ahead. 48:40 48 minutes, 40 seconds Yeah thank you for the opportunity and congratulation on good operational performance sir. So my question is more 48:47 48 minutes, 47 seconds towards the numbers. Uh one is uh sir what will be the construction has been during the 26 and if we look at 48:58 48 minutes, 58 seconds construction what construction expenditure hello now the line for the amit sir is 49:06 49 minutes, 6 seconds disconnected so give me a moment the next question is from the line of 49:14 49 minutes, 14 seconds taran agarwal from old bridge please go ahead hi Hi uh just wanted to understand for the sale of paper business what's the post tax cash that you'll receive. 49:27 49 minutes, 27 seconds So uh basically uh we have a lot of u m credit available to us. So technically 49:36 49 minutes, 36 seconds there won't be a significant impact of cash flow uh due to the tax uh element. 49:42 49 minutes, 42 seconds So we expect the entire amount to be uh a cash flow event. 49:50 49 minutes, 50 seconds Okay. And uh when I look at your leverage uh you call out the 420 crores of IFC funding separately. Um is the 49:58 49 minutes, 58 seconds structure slightly different from your other um um sources of uh debt. So this is just to clarify that uh this includes 50:07 50 minutes, 7 seconds the IFC funding that that's why we've just uh put it in the in the note that's why we've called it out. 50:14 50 minutes, 14 seconds Okay. Thanks. 50:18 50 minutes, 18 seconds Thank you sir. The next question is from the line of Akash Gupta from Namura. Please go ahead. 50:25 50 minutes, 25 seconds Uh hi uh sorry for interruption actually just on the BMC land uh I mean the land which BMC has supported uh do you think 50:35 50 minutes, 35 seconds that any other developer will likely bid for that one because you already have a 50:42 50 minutes, 42 seconds lot of power projects coming in. So don't you think we already have some competitive advantage there? Um and like 50:50 50 minutes, 50 seconds would it be uh like uh disadvant any other competitors because it's just a small land parcel? 50:59 50 minutes, 59 seconds Yeah, it's six acres of land. So yeah, so I mean uh there is there about seven 51:08 51 minutes, 8 seconds six 500 tenants on that land. to reaccommodate them and the balance land is available for exploitation. 51:15 51 minutes, 15 seconds Yeah. So I mean if we have we definitely if we get it great competitive advantage for us that's why we would like to uh 51:22 51 minutes, 22 seconds explore all legal means of you know from tying up for a land like that. 51:30 51 minutes, 30 seconds Okay. Thank you sir. Thank you sir. 51:35 51 minutes, 35 seconds Ladies and gentlemen that was the last question for today. I now hand the conference over to management for closing comments. 51:47 51 minutes, 47 seconds Thank you everyone for taking out time to attend today's call. We are very excited for the times to come and hope 51:55 51 minutes, 55 seconds to come to you with a lot of news in the next call. Thank you very much for an interest in our company. Thank you. 52:05 52 minutes, 5 seconds Thank you sir. On behalf of BNK Securities India Private Limited, that concludes this conference call. Thank 52:14 52 minutes, 14 seconds you for joining us and you may now disconnect your lines.