Apeejay Surrendra Park Hotels Limited — Q3 FY26

Apeejay Surrendra Park Hotels Ltd Q3 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=MZLFcCGG-f0 Published: 3 months ago

0:01 1 second Ladies and gentlemen, good day and welcome to the APJ Surendra Park Hotels Limited earnings conference call. 0:09 9 seconds As a reminder, all participant lines will be in the listenonly mode and there will be an opportunity for you to ask questions after the presentation 0:16 16 seconds concludes. Should you need assistance during the call, please signal an operator by pressing star then zero on your touchstone phone. I now hand the 0:25 25 seconds conference over to Mr. Anu Pujari from CDR. Thank you and over to you sir. 0:33 33 seconds Thank you. Good afternoon everyone and thank you for joining us on APJ Surendra Park Hotels Q3 and 9M FI 2026 earnings conference call. We have with us Mr. 0:45 45 seconds Vijay Dwan managing director and Mr. 0:48 48 seconds Atul Kosla SP finance and CFO of the company. We'll begin the call with opening remarks from the management 0:56 56 seconds following which we'll have an interactive question and answer session. 1:00 1 minute Before we start, I would like to point out that some statements made in today's call may be forward-looking in nature and a disclaimer to this effect has been 1:08 1 minute, 8 seconds included in the earnings presentation shared with you earlier. 1:12 1 minute, 12 seconds I would now like to invite Mr. Vijay Devan to make his opening remarks. Thank you Anub. 1:20 1 minute, 20 seconds Uh good afternoon everyone. 1:23 1 minute, 23 seconds A warm welcome to our Q3 FY26 earnings call and thank you all for joining us today. 1:33 1 minute, 33 seconds On behalf of the entire leadership team at APJ Shendra Park Hotels, I appreciate your continued interest, engagement and support. 1:46 1 minute, 46 seconds Firstly, a new chapter begins this month with the project launch of the park unison 1:54 1 minute, 54 seconds service residences and the park at EM bypass Kolkata. 2:01 2 minutes, 1 second This signature project is designed to shape the future of luxury living and hospitality in the country. 2:10 2 minutes, 10 seconds The park unison brings together two iconic brands of Kolkata, the park and 2:17 2 minutes, 17 seconds Ambuja Nutia. The park unison will be an iconic brand and at an iconic location providing iconic luxury living. 2:31 2 minutes, 31 seconds The sale of these service residences over the next three years will add 300 2:37 2 minutes, 37 seconds to 350 crores in cash flow and will further strengthen the balance sheet of APJs in the park hotels. 2:48 2 minutes, 48 seconds The third quarter was a positive and defining one for the company marked by steady operating momentum and consistent outcomes across our portfolio. 3:00 3 minutes We delivered our best Q3 performance with consolidated revenues crossing 200 3:09 3 minutes, 9 seconds crores for the first time reflecting disciplined execution across the markets in which we operate. 3:18 3 minutes, 18 seconds This is our best ever and first ever Q3 at 200 crores. 3:25 3 minutes, 25 seconds We recorded healthy growth across key financial and operating parameters during the quarter supported by positive 3:34 3 minutes, 34 seconds trends across both business and leisure segments. Our hotels continue to outperform the market maintaining 3:42 3 minutes, 42 seconds leadership occupancy and repar in the upper upscale segment. 3:51 3 minutes, 51 seconds During Q3 FI26, consolidated revenue stood at 200 crores while Evida was at 3:58 3 minutes, 58 seconds 71 crores translating into an IBIDA margin of 35.3%. 4:06 4 minutes, 6 seconds This performance was supported by industry-leading occupancy levels of 90% along with yearon-year improvement in 4:15 4 minutes, 15 seconds ARR and repar of 11% and 9% respectively. 4:22 4 minutes, 22 seconds These trends reflect sustained pricing discipline, resilient demand across our core markets and the strength of our 4:30 4 minutes, 30 seconds brands and operating model. A healthy mix of corporate travel, weddings, and leisure demands supported performance 4:38 4 minutes, 38 seconds during the quarter. Our continued focus on differentiated guest experiences, strong FnB offerings and consistent 4:47 4 minutes, 47 seconds service trans standards translated into robust operating outcomes. 4:53 4 minutes, 53 seconds Our flagship hotels continue to deliver strong operating performance during the quarter. The park Kolkata once again 5:02 5 minutes, 2 seconds achieved 100% occupancy which is a world benchmark followed by the park Chennai 5:10 5 minutes, 10 seconds at 96% and properties at Bangalore and Na'vi Mumbai recording over 90% occupancy. 5:20 5 minutes, 20 seconds In addition, hotels across Delhi, Hyderabad, Goa, Wizak and Indor outperformed their respective markets. 5:29 5 minutes, 29 seconds reporting occupancy premiums of close to 25% compared to competitors, underscoring the strength of our brands. 5:40 5 minutes, 40 seconds We continue to invest selectively across our portfolio through ongoing refurbishments and targeted FNB enhancements. 5:49 5 minutes, 49 seconds During the period, several key properties including New Delhi and Chennai underwent room and venue upgrades, 5:57 5 minutes, 57 seconds ensuring that our hotels remain contemporary, competitive, and well positioned to capture evolving guest preferences. 6:07 6 minutes, 7 seconds During quarter 4 this year, we plan to add six hotels totaling to 234 keys with 6:15 6 minutes, 15 seconds properties opening at Weisac, Dariling, Katra, Kochi, Ka, and Dham Shala. Out of 6:23 6 minutes, 23 seconds the 234 keys opening this quarter, 57 keys would be on lease, 14 under 6:30 6 minutes, 30 seconds ownership, and 163 keys under management contracts. 6:36 6 minutes, 36 seconds During 2627, we plan to add 438 keys. In total, we will add 17 hotels totaling to 6:46 6 minutes, 46 seconds 672 keys over the next 14 months, taking our overall room count to 20 in 2627 to 6:56 6 minutes, 56 seconds 56 to 3,219 keys with 56 hotels. 7:03 7 minutes, 3 seconds Alongside expansion, we continue to maintain a strong and prudent financial position. Our balance sheet remains 7:11 7 minutes, 11 seconds comfortable, supported by healthy cash flows, a net worth of about 1,329 7:18 7 minutes, 18 seconds crores and mutual fund investments of nearly 58 crores. The financial flexibility backed by disciplined 7:26 7 minutes, 26 seconds capital allocation enables us to pursue growth opportunities both at the inorganic and organic levels. 7:36 7 minutes, 36 seconds During the quarter, we made meaningful progress on our inorganic growth road map with a series of strategic developments. 7:46 7 minutes, 46 seconds We completed the acquisition of 50 76% stake at Juu Mumbai. 7:53 7 minutes, 53 seconds This stake will go to 90% in 2627 with the property expected to open towards the end of March 2027. 8:03 8 minutes, 3 seconds We also marked our entry into Kerala through the acquisition of the Malavar House and Fort Co at Fort Kochi and 8:11 8 minutes, 11 seconds Purity at Wemanard Lake strengthening our presence in the luxury and leisure segment under the park collection. 8:20 8 minutes, 20 seconds The acquisition of both Purity and Malawar House are being done in a staggered manner at a cost of 64 crores. 8:29 8 minutes, 29 seconds These acquisitions completed in Q3 of 2025 are well aligned with our strategy 8:35 8 minutes, 35 seconds of adding high quality experience-led properties in high demand business and leisure destinations. 8:45 8 minutes, 45 seconds Our two heritage palace hotels launched last year continue to gain traction in the luxury segment with Ranbas 8:53 8 minutes, 53 seconds completing its first anniversary during the year. The Lotus Palace Chettinad recorded an average room rate of close 9:01 9 minutes, 1 second to 3,00,376 while Ranbasa Palace Patiala achieved an 9:10 9 minutes, 10 seconds AR of around 31,967 reflecting growing brand recognition and demand in the experiential luxury space. 9:23 9 minutes, 23 seconds Ranbas the palace was awarded the one Michelin key a high honor in October 25 9:30 9 minutes, 30 seconds and preasai featured Randbas in its global list of world architecture and divine design award in December 25. 9:40 9 minutes, 40 seconds Our iconic brand Furies continues his journey of reinvention and growth with 9:46 9 minutes, 46 seconds 104 operational outlets across flagship cafes, kiosk and t-room formats. 9:56 9 minutes, 56 seconds During the quarter, Flurries recorded a healthy topline growth of 19% supported by sea steady traction across both existing stores and newly opened cafes. 10:09 10 minutes, 9 seconds The brand also delivered record high single day sales with 1 cr at flurries 10:16 10 minutes, 16 seconds on December 24th highlighting strong consumer resonance during peak festive periods. 10:25 10 minutes, 25 seconds In Q426, we plan to add 14 new stores, while 27 is expected to mark a phase of 10:32 10 minutes, 32 seconds accelerated store additions as the brand continues to expand its national footprint. 10:41 10 minutes, 41 seconds Turning to our performance on a 9-month basis, consolidated net revenue for 9-month ending FYI26 grew by 15.3% 10:51 10 minutes, 51 seconds to 524 crores compared to 5 454 crores in 9 month ending FY25. 11:01 11 minutes, 1 second EIDA stood at 165 crores up 12.8% 8% while profit after tax was at 54 crores 11:09 11 minutes, 9 seconds during the period. This performance reflects the strength of a diversified portfolio supported by sustained demand across key segments. 11:23 11 minutes, 23 seconds Innovation and digital adoption remains central to how we enhance guest experience and monetization. 11:32 11 minutes, 32 seconds During quarter 3, we launched N1, the industry's most widely applied and profitable profitable AI based upselling 11:41 11 minutes, 41 seconds platform across our portfolio. In addition, we continue to deploy AIE solutions such as digital check-ins, 11:50 11 minutes, 50 seconds intelligent guest engagement tools, and automationdriven back-end processes to maintain our superiority in the 11:58 11 minutes, 58 seconds business. Equally important, our growth remains anchored in a strong people 12:04 12 minutes, 4 seconds first and now AI first culture. We continue to leverage technology and AI, 12:11 12 minutes, 11 seconds not to replace people, but to enable them to perform better and grow alongside in the organization. 12:21 12 minutes, 21 seconds As we move ahead, our focus remains on sustaining growth, deepening guest engagement, and creating long-term value for our shareholders. 12:32 12 minutes, 32 seconds With a clear growth road map, a robust financial position, and a and a committed team, we are well placed to 12:40 12 minutes, 40 seconds carry forward the momentum in the periods ahead. 12:47 12 minutes, 47 seconds I would like to thank our shareholders, our customers, our team members and our 12:53 12 minutes, 53 seconds business partners for their continued trust and support in us. Thank you. 13:02 13 minutes, 2 seconds I will now request the moderator to open the line for question and answers. 13:09 13 minutes, 9 seconds Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask questions may press star and one on the touchstone 13:17 13 minutes, 17 seconds telephones. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking questions. 13:27 13 minutes, 27 seconds Ladies and gentlemen, we will wait for a moment while the question Q assembles. 13:33 13 minutes, 33 seconds To ask questions, please press star and one. 13:38 13 minutes, 38 seconds The first question is from Arja Gur from IDBI capital. Please go ahead. 13:44 13 minutes, 44 seconds Hi sir, good afternoon. Thank you for the opportunity. I have a few questions. 13:48 13 minutes, 48 seconds So firstly on the back uh with this increase FSI uh how that would translate into increased number of rooms. 13:59 13 minutes, 59 seconds So Acha thank you for the question. uh Park Pune. We we have we are we are 14:06 14 minutes, 6 seconds really excited about it now because the FSI has increased uh due to us falling 14:12 14 minutes, 12 seconds into the metro corridor and new concessions have been given because uh 14:20 14 minutes, 20 seconds of other reasons. So our FSI today has increased from 2.5 lakhs to 6 lakhs 72 14:29 14 minutes, 29 seconds uh,000 square ft. So currently at the moment we are going ahead with the with 14:36 14 minutes, 36 seconds the project uh of 250 rooms and uh at the same time we are reassessing in 14:45 14 minutes, 45 seconds terms of how do we we would like to to monetize this asset and uh bring in 14:52 14 minutes, 52 seconds additional value to our shareholders. It could happen that it could become uh a 15:00 15 minutes residential come hotel. It could also happen that it could become a commercial 15:06 15 minutes, 6 seconds or an IT park come hotel. Now should it become an IT park come hotel, the FSI is 15:13 15 minutes, 13 seconds even more for your information. We would be entitled to over 8 lakh square ft of 15:20 15 minutes, 20 seconds of FSI. So this addition firstly of FSI is going to over a period of time add 15:27 15 minutes, 27 seconds enormous shareholder value. Uh so at the moment uh we are uh assessing various 15:34 15 minutes, 34 seconds opportunities but let me assure you at this stage there is a substantial gain and we will ensure that uh maximum 15:43 15 minutes, 43 seconds shareholder value gets uh created uh because of uh the the new uh situation 15:51 15 minutes, 51 seconds in Punea because us falling into the metro corridor and being entitled to additional FSI. Sure 16:00 16 minutes sir. So on this uh acquisition of Malabar house at Fort Kochia and purity at Vanard. So like what kind of ADR can 16:10 16 minutes, 10 seconds be expected there? Some guidance on uh that front would be helpful. 16:17 16 minutes, 17 seconds So these uh both these properties they are in the uh luxury space in these 16:24 16 minutes, 24 seconds powerful in this in this powerful uh resort uh destinations of the country. 16:31 16 minutes, 31 seconds The Malabar House uh is in Fort Kochi. 16:35 16 minutes, 35 seconds It is once again a rally and shadow hotel enjoying currently eras of close 16:42 16 minutes, 42 seconds to 15,000 and uh and then purity which is even at 16:49 16 minutes, 49 seconds a higher luxury level uh which is 17 rooms and abort at women lake. Uh this 16:57 16 minutes, 57 seconds property is currently enjoying ARS of around 14,000 but has a much higher potential 17:04 17 minutes, 4 seconds uh of adding additional rooms. So the AR the IRS are currently at 14,000 and 17:14 17 minutes, 14 seconds 15,000 in these properties but the big opportunity is also on the side of 17:21 17 minutes, 21 seconds occupancy because there lies our biggest strength uh without compromising 17:29 17 minutes, 29 seconds on uh on ARR we expect the occupancy at these properties to significantly 17:36 17 minutes, 36 seconds improve. move from where they are at the moment. 17:41 17 minutes, 41 seconds Okay. And so on lastly maybe you know I'll again come back in the queue on this flurry is uh the number of addition of uh new outlets has been slightly 17:51 17 minutes, 51 seconds subdued though the slate for Q4 looks pretty promising. So what really has uh gone there sir? Why why were we slow in adding the new outlets in flies in Q3? 18:03 18 minutes, 3 seconds Uh two three uh reasons for it. Firstly, the uh revenue allocation uh the sorry the uh capital allocation during this 18:12 18 minutes, 12 seconds quarter uh has been more towards the acquisition of the uh of Brazilian hotel 18:20 18 minutes, 20 seconds and resort uh at uh Juu Mumbai and then the uh 18:26 18 minutes, 26 seconds acquisition of purity and women at uh at Coin. So uh we are known for prudent uh 18:36 18 minutes, 36 seconds capital allocation. So one reason is that uh allocation of capital has significantly grown grown towards the 18:46 18 minutes, 46 seconds side of the hotel expansion also at the same time uh because of India's growth 18:53 18 minutes, 53 seconds story has slightly slowed down and particularly you would know that uh the FnB 19:00 19 minutes retail space is uh is experiencing uh a slight slowdown 19:08 19 minutes, 8 seconds Particularly many of the competitor stores of even international brands as you are based in Mumbai you would know 19:16 19 minutes, 16 seconds that they have been shutting down. So our focus uh during this quarter and as well as in quarter 4 has been more on 19:25 19 minutes, 25 seconds revenue growth rather than on store growth and revenue profitability. 19:32 19 minutes, 32 seconds uh this will uh this has during the 9-month ending our uh our our growth business on the top line has been 33%. 19:44 19 minutes, 44 seconds It has been 19% during the quarter. The 19% looks a little bit less compared to 19:51 19 minutes, 51 seconds 33% but that is largely for the reason because quarter 3 falls in the high festive season of flurries and this has a higher base. 20:02 20 minutes, 2 seconds So our objective would be definitely to open more stores on one side but also ensure that we have we are able to 20:10 20 minutes, 10 seconds maintain uh the kind of uh revenue growth which uh which we are giving to 20:18 20 minutes, 18 seconds our investors. Uh so there is a little bit of uh rec uh recalc calibration at 20:25 20 minutes, 25 seconds the moment but uh the there will be a very high focus on revenue growth of a similar kind 20:34 20 minutes, 34 seconds uh which uh which we have delivered for for 9 month ending and of course there will be increased focus on opening more 20:42 20 minutes, 42 seconds stores. So during uh quarter 4 now we plan to open uh 16 uh stores to take the 20:50 20 minutes, 50 seconds number to about 120 stores with high revenue growth and then uh go on a 20:58 20 minutes, 58 seconds faster and an accelerated pace as India's uh story improves. Uh the story 21:05 21 minutes, 5 seconds is likely to improve as you know because of various changes which have happened particularly now in the last uh in this 21:13 21 minutes, 13 seconds month or the last month itself with the improved relations with the United States in particular uh with the signing 21:21 21 minutes, 21 seconds in of uh the India U EU trade. So the economy is uh which is going to be back 21:29 21 minutes, 29 seconds on a faster growth track and with improved economic conditions we would also put uh we will also uh grow at an accelerated pace in in flu. 21:43 21 minutes, 43 seconds Sure sir. Say any updated numbers you would like to give us for number of flurry stores by like for 27 and 28. 21:53 21 minutes, 53 seconds Number of stores we plan to take uh the number of stores from current which will we will conclude at 120 stores. We plan 22:02 22 minutes, 2 seconds to take it to aboutund anywhere between 150 to 160 stores. All these new stores 22:10 22 minutes, 10 seconds that also recalaborate calibration has been done. In terms of earlier our 22:16 22 minutes, 16 seconds expansion was a mix of uh kiosks and uh cafes but now the focus is going to be 22:25 22 minutes, 25 seconds very heavy on opening more cafes. So expect uh uh 30 to 40 u cafes opening uh in uh 26 27. 22:41 22 minutes, 41 seconds So you said 30 to 40. 22:44 22 minutes, 44 seconds I'm really sorry to interrupt you. Thank you. 22:52 22 minutes, 52 seconds Uh the next question is from Janesh Jooshi from PL Capital. Please go ahead. 22:57 22 minutes, 57 seconds Uh thanks for the opportunity. Uh sir on EM bypass uh Kolkata uh earlier the plan 23:04 23 minutes, 4 seconds was to open 250 rooms and uh uh construct 100 apartments. Uh but now we 23:10 23 minutes, 10 seconds are saying that uh uh there will be 218 rooms and uh 69 apartments. Uh so can 23:17 23 minutes, 17 seconds you please explain what has changed in the plan? 23:23 23 minutes, 23 seconds So there is uh firstly uh simply to first explain the hotels there is uh no 23:29 23 minutes, 29 seconds change uh in the FSI which is being allocated to the hotel which is roughly 23:36 23 minutes, 36 seconds about 3 lakh 10,000 square ft and what is being allocated to uh to these uh 23:46 23 minutes, 46 seconds service branded residences uh which is a little short of three lakh square ft. So the overall development continues to be six lakh square ft. 23:59 23 minutes, 59 seconds So in the hotel what has happened that we looking at the market we have given more allocation to to banqueting and 24:08 24 minutes, 8 seconds conferencing facilities rather than just uh to the rooms and it's a function of 24:14 24 minutes, 14 seconds design and planning. So in the final because the Kolkata market is also very 24:21 24 minutes, 21 seconds strong in both weddings and on the mice side. So we have sort of allocated more 24:29 24 minutes, 29 seconds at this point of time uh to banqueting and conference facilities which will actually significantly help uh the 24:38 24 minutes, 38 seconds revenue model of the hotel going forward. The good thing about uh the residences is that we are still 24:46 24 minutes, 46 seconds constructing in the residences at to be exact now because we are exact we to be exact now we are 24:55 24 minutes, 55 seconds constructing two lakh 93,000 square ft. 25:00 25 minutes So what is uh uh it it's it's a marginal reduction. In fact uh the original plan 25:08 25 minutes, 8 seconds was three lakhs as the design got implemented with the various kinds of rules and regulation. Finally the 25:16 25 minutes, 16 seconds salable area has come to two lakh 93,000 square ft which and what we have done is 25:23 25 minutes, 23 seconds that we have again reconfigured uh the the apartments. Earlier there was 25:29 25 minutes, 29 seconds a mix of apartments of two sizes of 3 and a half,000 square ft and 4,000 25:36 25 minutes, 36 seconds square ft². Now all the apartments are going to be of 4,000 square ft and it's 25:43 25 minutes, 43 seconds now a combination of apartments and uh and and duplex. So as a result of 25:52 25 minutes, 52 seconds that the the the the number may look uh to be reduced from 100 to about 70 71 26:00 26 minutes apartments or 69 as appearing in the document but that is all related the the 26:07 26 minutes, 7 seconds entire salable area has has not reduced the marketing plan has uh has has gone 26:15 26 minutes, 15 seconds through a change uh because of market conditions so that we are able to maximize ize on the revenue for for the 26:23 26 minutes, 23 seconds promoters as well as for our shareholders. 26:29 26 minutes, 29 seconds Sure sir. And uh in in response to previous participants uh question uh you mentioned that uh we are slightly slow 26:37 26 minutes, 37 seconds on flurries because the capital allocation is more towards uh Zeldian and some of the other acquisitions that 26:44 26 minutes, 44 seconds we did. uh but if my understanding is correct uh flurries is typically a a rental model and where where not much of 26:52 26 minutes, 52 seconds capex is required also for uh furniture etc. I think for T- room uh the maximum capex that we spend is about 1 cr. So 27:01 27 minutes, 1 second effectively the model is not that capital intensive. Uh so just wanted to get some sense uh as to as to why are we 27:09 27 minutes, 9 seconds slow if not much capital is required much capital is required. No, it's it's at the end of the day if I am opening uh 27:18 27 minutes, 18 seconds 50 stores it's an allocation of 50 crores in a year and during particularly only in this quarter that there has been 27:26 27 minutes, 26 seconds a very high allocation on acquisition towards uh the on the hotel side because of the 27:34 27 minutes, 34 seconds choo home property as well as the properties in women. So the allocation has moved more towards quarter 4 and 27:43 27 minutes, 43 seconds into the next year uh to actually ensure that our balance sheet remains uh 27:51 27 minutes, 51 seconds significantly strong. So that is one and on the other hand as I did explain that there is a general 27:59 27 minutes, 59 seconds uh you know slowing down on the FNB retail restaurant business in India with 28:05 28 minutes, 5 seconds uh many of our competitors shutting down their stores. So we are not in that situation. We are in the business of 28:14 28 minutes, 14 seconds giving providing to our customers high growth in flurries which we are providing and also ensuring at the end 28:22 28 minutes, 22 seconds of the day that we have industryleading margins in our flurries business. So we 28:29 28 minutes, 29 seconds continue to be on track. So it's a combination of how the market is and uh it's a combination of fund allocation 28:38 28 minutes, 38 seconds and how the market is behaving. I strongly feel obviously that the market is uh going to become stronger now here 28:46 28 minutes, 46 seconds on uh with uh with the uh relations improving with the United States and the 28:54 28 minutes, 54 seconds new trade agreement hopefully to be in place uh by the end of March. We are 29:01 29 minutes, 1 second seeing that of uh also uh in the markets o over the last week that things have started changing and 29:10 29 minutes, 10 seconds more uh war is coming into our own capital markets. So with increased uh 29:17 29 minutes, 17 seconds improvement in markets all along and a higher growth uh in India's economy we 29:24 29 minutes, 24 seconds feel that we will be once again on a much faster growth track for flies. It's it's going to be absolutely there. We 29:32 29 minutes, 32 seconds won't uh you know fall short uh in our growth plans for fluies in 26 27 as the market improves. 29:42 29 minutes, 42 seconds One last question from my side. Uh in the opening remarks you mentioned that Delhi and Chenning have undergone some 29:49 29 minutes, 49 seconds kind of a renovation. So if you can uh just share what kind of ARR uptick uh can we see because of that and also if 29:57 29 minutes, 57 seconds you can uh give some indication as to out of the 1100 keys that we own uh how many require uh renovation how many 30:06 30 minutes, 6 seconds rooms require renovation and what will be the renovation keepings. 30:12 30 minutes, 12 seconds So renovation firstly to answer your last question firstly uh as you know that we have uh about 30:22 30 minutes, 22 seconds 1100 now 115 keys now uh without of course adding uh uh the property in Ju 30:31 30 minutes, 31 seconds because it'll get operational uh during the course of the next financial year. 30:37 30 minutes, 37 seconds Typically what we do is that we uh renovate about uh 10% 30:44 30 minutes, 44 seconds uh or try to renovate about uh 10% of of our inventory because uh we 30:53 30 minutes, 53 seconds would like to refurbish and renovate more but we don't have that kind of bandwidth because we are operating at uh 31:03 31 minutes, 3 seconds 90 plus% occupancy across all our property. properties. Typically the 31:10 31 minutes, 10 seconds uh renovation cost is roughly about uh 25 lakhs per room. So that that that 31:18 31 minutes, 18 seconds remains uh that will remain we will stay in that limit of 25 lakhs per room as 31:24 31 minutes, 24 seconds far as the capex is gone and uh adding uh doing about 100 propert uh peranom. 31:33 31 minutes, 33 seconds uh during the course. Last year at Park Delhi, we had renovated uh 28 uh rooms and this year 31:43 31 minutes, 43 seconds this year during the uh financial year renovating uh some of the public spaces 31:52 31 minutes, 52 seconds which includes two restaurants and one bar. So the focus in Delhi uh this year 31:59 31 minutes, 59 seconds has been on F and we expect that Delhi revenues will definitely improve on the 32:07 32 minutes, 7 seconds whole on the FN FNB side. Delhi is a 100 plus cr hotel we expect at least 32:15 32 minutes, 15 seconds 10% improvement on account of renovations at the Delhi hotel. 32:24 32 minutes, 24 seconds So we will have a 10% in the rental on account of the in daily hotel also as 32:31 32 minutes, 31 seconds you mentioned uh Chennai as such is performing very well in the month in the Q3 the Chennai had an increment of uh 32:41 32 minutes, 41 seconds did have a incremental revenue of about 8 to 10%. 32:46 32 minutes, 46 seconds Chennai at the moment because of the renovation being carried out uh in uh in that hotel uh during the course of the 32:55 32 minutes, 55 seconds year the previous year and this year has now emerged as one of our second u sort 33:01 33 minutes, 1 second of best performing hotel with ARR on a YTD basis during the course of the year increasing by 15%. 33:11 33 minutes, 11 seconds and the FMP re the food revenue increasing by 12% and uh the uh the beverage revenue 33:20 33 minutes, 20 seconds increasing by uh about 21% give at March Chennai the growth rate uh during the 33:28 33 minutes, 28 seconds course of this year has been up to December has been close to 18%. 33:34 33 minutes, 34 seconds and Q3 was 20 plus 20 plus. So that is the renovation impact. 33:43 33 minutes, 43 seconds Okay. Any more questions Mr. Jooshi and thank you very much. 33:51 33 minutes, 51 seconds Thank you Anu. Uh we are getting some disturbance you know from uh some of the you know 33:58 33 minutes, 58 seconds participants. So I don't know what the procedure is. So if some uh maybe two or three lines are open at the same time. 34:08 34 minutes, 8 seconds If people can switch off after asking the question that will sort of make a big difference. 34:16 34 minutes, 16 seconds Uh actually right that that was from the participant who's asking the question. Uh we'll move to the next question. 34:23 34 minutes, 23 seconds The next question is from Weber Mule from H Highong Securities. Please go ahead. 34:30 34 minutes, 30 seconds Hi sir, thank you for the opportunity and congratulations on a good set of numbers. My first question was on our expansion pipeline. Uh for last two 34:38 34 minutes, 38 seconds quarters sir, we have actually consistently seen delays uh in our timelines. Uh now M bypass has been delayed from Jan 2029 to uh Jan 2030. 34:48 34 minutes, 48 seconds Pune has seen 6 months delay. I can understand for Pune due to change in the FSI but uh for again Ju we have seen 3 34:55 34 minutes, 55 seconds month delay. Even Na'vi Mumbai is now from 2029 has moved to 2030. So uh 35:02 35 minutes, 2 seconds question is how since now the pipeline seems more backended uh how do you 35:09 35 minutes, 9 seconds manage to uh how do you plan to manage uh you know growth for FI27 and 28 uh especially given our key projects are 35:16 35 minutes, 16 seconds now uh looks slightly backended for operationalization and uh along with that if you can provide for Q4 and FI27 35:24 35 minutes, 24 seconds the 672 keys that we plan to uh open the breakup in terms of managed and own keys and also the brand uh brand wise uh uh 35:34 35 minutes, 34 seconds segmentation. Thank you. That's my first question. 35:39 35 minutes, 39 seconds So thank you web. uh you know first thing of course is that if we were to uh 35:46 35 minutes, 46 seconds look at Punea Pune what has happened is that as you yourself said that there is uh you know 35:54 35 minutes, 54 seconds the change in FSI and this this is by itself going to create uh value as we go 36:01 36 minutes, 1 second forward. When we look at our project in uh Juu, when we had acquired Juu, we had 36:11 36 minutes, 11 seconds 60,000 square ft of development and we were having just 66 36:18 36 minutes, 18 seconds uh 60 keys. So now the good news again for Juu is which is pushing it back uh 36:25 36 minutes, 25 seconds by a few months that we are actually uh we have been able to take out more 36:32 36 minutes, 32 seconds area for customer use and as a result of this we are actually going to get 88 36:39 36 minutes, 39 seconds keys. So the designers and architects and all other things are in pro are 36:46 36 minutes, 46 seconds being are are being are appointed and they are doing the work. So as of now uh 36:53 36 minutes, 53 seconds the the work is about to to begin and there is a good chance that the uh uh 37:00 37 minutes work may finish uh within this calendar year itself. But on the safer side, we have said that we will be able to launch 37:09 37 minutes, 9 seconds it towards the end of the financial year. We would be happy to launch it uh during the peak season. But the good 37:17 37 minutes, 17 seconds news on Mumbai is that the number of rooms are going up and not only that the number of rooms are going up, we have 37:24 37 minutes, 24 seconds been able to create uh new spaces also for FNB. It now with still the things are under finalization. 37:34 37 minutes, 34 seconds It looks that uh we will have a front-facing Flores restaurant and we will have an exciting 37:43 37 minutes, 43 seconds uh restaurant on the rooftop along with that we will have with a retractable roof. Uh we will have one of the best 37:52 37 minutes, 52 seconds bars opening in the Ju area. So the revenue model will be what was envisaged 38:00 38 minutes at the big at the time of the acquisition. The revenue model by the time we open is going to be 38:06 38 minutes, 6 seconds significantly higher because of uh of the changes which we are which we are able to make with our with our expertise 38:16 38 minutes, 16 seconds and of course with the uh help of the architects and designers. So this is going to be an ultra luxury boutique 38:25 38 minutes, 25 seconds hotel where you will actually arrive uh into into a area of of entertainment. 38:36 38 minutes, 36 seconds what we are uh conceptualizing it and what is going to get finally for you to 38:43 38 minutes, 43 seconds see is is going to be a great boutique hotel, a super luxury boutique hotel uh 38:49 38 minutes, 49 seconds with with everything getting highly differentiated, your arrival experience being differentiated, your FNB 38:58 38 minutes, 58 seconds experience getting totally differentiated. 39:02 39 minutes, 2 seconds So coming to your question on uh Na'vi Mumbai. 39:08 39 minutes, 8 seconds Na'vi Mumbai again because a good thing about uh uh the governments at the 39:14 39 minutes, 14 seconds moment across uh India is that they are giving significant importance to 39:21 39 minutes, 21 seconds tourism. So there is FSI changes virtually every year. 39:26 39 minutes, 26 seconds So now it looks that not only 250 room hotel uh at at Na'vi Mumbai, it'll be a 39:34 39 minutes, 34 seconds 300 plus room hotel at Na'vi Mumbai as we go and start construction. So again 39:42 39 minutes, 42 seconds greater value will be added. On the other hand, in our project in Vishaka Patnam, the permissions are almost done. 39:50 39 minutes, 50 seconds It is going to be uh within the next this month or early next month or by next month we should be able to do the 39:59 39 minutes, 59 seconds groundbreaking and start the construction at uh at the hotel in uh 40:05 40 minutes, 5 seconds Wisac. We are fully in in control of of the development and uh uh we will uh 40:15 40 minutes, 15 seconds deliver as we go along. We will uh deliver iconic properties the new ones and uh refurbish and uh renovate our 40:24 40 minutes, 24 seconds existing existing properties to give enormous value uh to to our promoters and shareholders. 40:33 40 minutes, 33 seconds Uh the the room uh breakup uh is uh in terms of our expansion as we mentioned 40:42 40 minutes, 42 seconds 434 keys are uh coming up right away and uh we are going to have about uh 104 40:51 40 minutes, 51 seconds keys and the lease and key u uh are going to be under 40:59 40 minutes, 59 seconds uh under management contract. So this is how the distribution of so of the keys 41:06 41 minutes, 6 seconds are are going to be. So 57 keys are going to be on lease, 14 are under under 41:15 41 minutes, 15 seconds ownership as I mentioned in my opening statement and 163 keys are going to be under management contracts. 41:26 41 minutes, 26 seconds out of the 254 we open now uh during uh the course of 41:34 41 minutes, 34 seconds this financial year and out of the 438 which we open in the next financial year 41:42 41 minutes, 42 seconds that is 26 27 the keys are entirely under management 41:48 41 minutes, 48 seconds contract plus 85 keys of the Mumbai property Okay, 41:58 41 minutes, 58 seconds understood sir that was very helpful. Uh my second question was on uh floodies. 42:02 42 minutes, 2 seconds Uh we have now uh reduced our store guidance uh to 130 stores for FI26 and 42:09 42 minutes, 9 seconds 150 to 160 stores uh for FI27. So uh when do you expect the target of uh taking the store count 200 to be achieved now? 42:24 42 minutes, 24 seconds 28 we should be not should be we will be at the 200 mark and we remain committed to our overall 42:32 42 minutes, 32 seconds uh plan of having 500 stores 450 to 500 stores to be precise by 2930. So there is no change in plan uh on that front. 42:45 42 minutes, 45 seconds So the on the other hand there is no change in the revenue uh growth plan. Uh 42:53 42 minutes, 53 seconds as I mentioned we more than uh the store growth we are absolutely focused on revenue growth and 43:02 43 minutes, 2 seconds ensuring high profitability in our stores. the same store growth uh where 43:08 43 minutes, 8 seconds the bulk of the uh properties are the flurries outlets are they are 43:15 43 minutes, 15 seconds experiencing 9% same store growth which is truly remarkable in this in this in 43:23 43 minutes, 23 seconds this market and the success of flurries as I mentioned again in my opening statement comes from the fact that people believe 43:32 43 minutes, 32 seconds in flurries by the fact that on the 24th of December we clock in on the whole one 43:40 43 minutes, 40 seconds core of revenue. So this uh demonstrates the strength of our brand and also the 43:48 43 minutes, 48 seconds commitment of our share to our customers our loyal customers of Louisise. So we really thank them for that. 43:59 43 minutes, 59 seconds So we are going to same revenue target 500 500 course up to three by 3 to four years. So 500 C target remains the same. 44:09 44 minutes, 9 seconds That's where concentration has been done to improve the revenue. 44:15 44 minutes, 15 seconds Thank you. Unless you have the margin for flies for 44:25 44 minutes, 25 seconds it was in the range of uh 12 Q3. This is pre-index. 44:33 44 minutes, 33 seconds Pre-index post index is if you want pre-index is this is pre-index. Yes. 44:43 44 minutes, 43 seconds All right sir. Thank you so much sir and all the best. Thank you so much sir and all the best. 44:49 44 minutes, 49 seconds Thank you. The next question is from Vinit Bajage from Nirmalbang Institutional Equities. Please go ahead. 44:58 44 minutes, 58 seconds Hello sir, my question is regarding Kolkata market. The company has reported close to full occupancy along with 45:05 45 minutes, 5 seconds levels that are marginally higher than industry. Could you please help understand the key three key drivers behind performance versus the market? 45:15 45 minutes, 15 seconds Additionally, could you please provide some color on how room rate in the Kolkata market currently? 45:25 45 minutes, 25 seconds So, Kolkata for the last 10 years have been uh our flagship performing hotel. It's 45:33 45 minutes, 33 seconds always been our flagship hotel but has been doing 100% occupancy. 45:40 45 minutes, 40 seconds You know over the last 10 years except in the two co years even in those two co 45:46 45 minutes, 46 seconds years it had India's highest occupancy of close to 70%. 45:52 45 minutes, 52 seconds The large part of this success in Kolkata firstly goes to the team which is uh 46:00 46 minutes managing this hotel both on the room side of the business as well as on the FNB side of the business. 46:08 46 minutes, 8 seconds In terms of AR growth up to YTD level, this hotel has recorded an 11% growth in ARR. 46:18 46 minutes, 18 seconds Uh which is in line with the market as per the HS report of 11 to 13% growth in ARR. 46:27 46 minutes, 27 seconds But since occupancy is 100% this could be the only hotel in India and possibly in the world where the repar growth is also 11%. 46:39 46 minutes, 39 seconds Because if occupancy is 100% then repar and arr they come together. 46:46 46 minutes, 46 seconds So this is the highest repar growth in the Kolkata market whereas per the HBS report the growth is only in the range 46:54 46 minutes, 54 seconds of uh uh 6 to 9%. Because Kolkata's occupancy 47:02 47 minutes, 2 seconds uh in in the branded hotels is somewhere between 70 to 71%. 47:09 47 minutes, 9 seconds So this hotel has always outperformed the market and it'll continue to do so 47:16 47 minutes, 16 seconds because it it has of course a highly committed and motivated team. 47:24 47 minutes, 24 seconds Second most important thing why occupancy and performance is high is because this hotel is at a great 47:32 47 minutes, 32 seconds location like being present. If it was to be taken somewhere else, it could be on 47:39 47 minutes, 39 seconds Oxford Street or on Time Square. So, it has a great location. It is in the heart of the central business 47:48 47 minutes, 48 seconds and uh entertainment district. It is the number one street of Kolkata. 47:55 47 minutes, 55 seconds Third is that we have not only a unique revenue management system. Now we have 48:03 48 minutes, 3 seconds Norwan which is an AI based system attached to revenue management which helps us in. 48:16 48 minutes, 16 seconds Lastly, why occupancy is high or at the highest level in Kolkata is that it has 48:24 48 minutes, 24 seconds typically in business hotels what tends to happen is that business travelers they are there during the weekdays from 48:32 48 minutes, 32 seconds Monday to Thursday and the weekends they generally the occupancy depths that is why you see in Kolkata the overall city 48:41 48 minutes, 41 seconds occupancy is around the 70% mark but this hotel is unique It has great FMB. It has great 48:50 48 minutes, 50 seconds nightclubs and bars. It uses entertainment as a source of creating customer value. And that key 48:59 48 minutes, 59 seconds differentiator of creating customer value through entertainment has a 49:05 49 minutes, 5 seconds magnetic impact on customers to come and stay at this hotel on the weekends. So generally in this hotel what tends to 49:14 49 minutes, 14 seconds happen because of high level of entertainment, fashion shows, bands, various other DJs playing at this hotel, 49:23 49 minutes, 23 seconds the occupancy tends to be the demand on this property is higher on the weekends 49:30 49 minutes, 30 seconds than even on the week days. So the higher demand on the property itself creates higher AR. 49:38 49 minutes, 38 seconds So not only the occupancy is 100% because of the higher demand on the property itself, it amazingly creates a 49:47 49 minutes, 47 seconds higher AR for this property purely because of this unique entertainment 49:53 49 minutes, 53 seconds position which again uh very few hotels or no hotels have it in India. 50:01 50 minutes, 1 second Occupancy management is is a is an art by itself. One has to look at not only 50:08 50 minutes, 8 seconds the demand in the city then you have to look at the demand on in terms of demand 50:16 50 minutes, 16 seconds on on in the micro market. The micro market in Kolkata will be the central business district and lastly one has to 50:25 50 minutes, 25 seconds carefully manage the demand on the property itself. So it's demand is not just demand supply is demand on the city 50:35 50 minutes, 35 seconds demand in the micro market and finally managing the demand on your property itself so as to der arrive at a 50:44 50 minutes, 44 seconds significant ARR or one of the best ARR performances. 50:53 50 minutes, 53 seconds I hope that answers all your questions. Yes. 51:00 51 minutes Any other question Vene? 51:07 51 minutes, 7 seconds Okay, we can Anu, I'm sure move on to next. 51:10 51 minutes, 10 seconds The the next question is from Madavarwal from SKP Securities. Please go ahead. Yes. Hi, thank you for the opportunity. 51:18 51 minutes, 18 seconds Uh I wanted to know which are the hotels are planning the renovation work. Uh as you mentioned Delhi, in Delhi it is uh like complete in Delhi in Chennai. 51:28 51 minutes, 28 seconds Chennai is ongoing right and apart from that which other hotels. 51:34 51 minutes, 34 seconds So the planning is uh as as we said that we will be looking at uh always looking at as far as renovation is concerned. 51:46 51 minutes, 46 seconds Renovation is is a process where a the rooms go in for a larger period of 51:53 51 minutes, 53 seconds shutdown which could be about uh a period of uh 52:00 52 minutes uh 6 months or so. So what we are doing this year is that we are going to undertake a 52:07 52 minutes, 7 seconds renovation of roughly about uh 52:14 52 minutes, 14 seconds 80 keys or 90 keys on the whole. 28 keys are going to be further renovated at New Delhi. 52:22 52 minutes, 22 seconds uh 30 keys are getting renovated in Chennai and 20 keys are going to be renovated in Bangalore. 52:32 52 minutes, 32 seconds On top of that there are going to be 60 rooms which will be refurbished in Kolkata. 52:39 52 minutes, 39 seconds So it'll be in Kolkata there is going to be a a mixture of renovation and and uh 52:48 52 minutes, 48 seconds refurbishment. So at one given time we would have not more than 100 rooms under 52:55 52 minutes, 55 seconds renovation plus uh refurbishment which will continue at Kolkata. 53:01 53 minutes, 1 second The the challenge of course would be the challenge is that we cannot give we would love to renovate and upgrade more 53:10 53 minutes, 10 seconds rooms but uh because of very high occupancy experienced uh in our hotels. 53:17 53 minutes, 17 seconds It's virtually impossible to to renovate more than 10% of the inventory. We have we are committed to give you India's 53:26 53 minutes, 26 seconds leading occupancy. We are committed to give you uh the best repar or market leading repar in the upper upscale 53:35 53 minutes, 35 seconds segment and of course high ARR so as to lead the market on a continuous basis 53:41 53 minutes, 41 seconds that we have been doing for the last 10 years and there is no reason why we would not be able to do that in the next decade as well. 53:53 53 minutes, 53 seconds All right. Very helpful sir. Uh just one last question. Uh what is the estimated payex like year wise payex what your 54:01 54 minutes, 1 second planned for next 3 years if you can share because now as you mentioned the FSI for several properties have 54:08 54 minutes, 8 seconds increased. So there is uh so if you can share the like the breakup uh the year wise break up estimated capex and like 54:16 54 minutes, 16 seconds yeah see as you said earlier also 54:23 54 minutes, 23 seconds the inventory coming is expected pune 200 room Mumbai 250 room visc 100 em 54:30 54 minutes, 30 seconds papas 250 and japur 150 so roughly at 1.245 245 it's a 950 core capex out of 54:38 54 minutes, 38 seconds which EM pipers now 300 may become 350 as the uh receiver from the sales proceeds so 54:47 54 minutes, 47 seconds that OG is around 60 64 and Zillian is 210 with 60 renovation C30 54:55 54 minutes, 55 seconds plus which is 334 so 8 uh roughly 8 800 plus 330 is this uh acquisition cost 55:04 55 minutes, 4 seconds Average capex per year which we do is 40 to 40 go for operation capex which is like 100 rooms going every year and fl 55:12 55 minutes, 12 seconds is about 180 to 200 course who repeated top five so around 400 total capex of 55:18 55 minutes, 18 seconds this become 1570 out of which if we see what the addition is coming is coming 55:27 55 minutes, 27 seconds from one aspect one is the proceed of emasing which was early estimated 300 is now to rupees. Second is what we are 55:35 55 minutes, 35 seconds reimagining Pune will be above 2 and a half lakh square ft of FS which is going to 55:43 55 minutes, 43 seconds I think be monetized and will be generate a cash in in flow rather than cash outflow as it is going into the new 55:51 55 minutes, 51 seconds model. So for that it should help you in further cash flow. Thus you may take an average inhibitor of your 250 to 60 for 55:59 55 minutes, 59 seconds 5 years. So I do have a 1,300 cash and the balance remains funded through the lines of credit which already is there 56:07 56 minutes, 7 seconds about 250 to 300 but is basic. So this new pony is also going to lead to some 56:15 56 minutes, 15 seconds monetization substantial monetization like EMI. So that will help in my acquisition further cash flow available 56:25 56 minutes, 25 seconds for inaugur acquisition. 56:30 56 minutes, 30 seconds Okay. Uh why this answer? Uh why as this question was see as you mentioned that 56:37 56 minutes, 37 seconds the monetization of this Pune whichever way you will you will be monetizing it the commercial or the residential and 56:44 56 minutes, 44 seconds this EM bypass both of these will be like uh the EM bypass you mentioned in 56:51 56 minutes, 51 seconds early 2030 and Pune also early 2030. So my question is like before that like is 56:58 56 minutes, 58 seconds it uh like is it going to happen that your uh net debt is going to like rise significantly or is it any capping you 57:06 57 minutes, 6 seconds have thought in your mind uh because before that before these monetization starts to acrew in your financials 57:13 57 minutes, 13 seconds before that I assume that uh now your net debt is expected to rise uh in the next two years. 57:24 57 minutes, 24 seconds So firstly even without this the net is not going to increase because in case of em bypass also the money is going to 57:32 57 minutes, 32 seconds start coming out. Now the money which I getting from the share of apartment is already reducing my net debt. So that is going to come over a 3ear period 350 cr. 57:44 57 minutes, 44 seconds So it's not going to it only is building up the construction of park. So it's not uh so in a way the money is coming even before the construction starts. 57:55 57 minutes, 55 seconds In case of Pune we are still reimagining but whether you say commercial or other that will actually start funding the 58:04 58 minutes, 4 seconds hotel portion also which let's say you reimagine one model of uh 58:12 58 minutes, 12 seconds now is one so that the how it will be monetized will also come in picture. So it will give some advance or some other 58:20 58 minutes, 20 seconds cash flow that options will be worked out. So that will add to the in terms of construction help even in 58:27 58 minutes, 27 seconds the construction of the Pune hotel. So in a way it will help in increasing reducing the entry. 58:37 58 minutes, 37 seconds So business resilience building business uh resil resilience is also part part of 58:44 58 minutes, 44 seconds our our our strategy and it is also part of our strength. So currently as you 58:50 58 minutes, 50 seconds know the gross debt is 236 crores but the net debt is only 150 58:58 58 minutes, 58 seconds crores 54 crores because there is large uh mutual fund investment of close to 60 59:05 59 minutes, 5 seconds crores with the funds coming in and as Evida continues to improve hopefully by the end of this financial year itself 59:14 59 minutes, 14 seconds the investment in mutual fund should be closer to 100 crores. 59:19 59 minutes, 19 seconds So our focus is to keep on of course continue on the path of growth both in 59:25 59 minutes, 25 seconds organic and organic but at the same time you know keep a focus on correct capital 59:32 59 minutes, 32 seconds allocation and building business resilience which is hard to do but if a company has 59:40 59 minutes, 40 seconds business resilience it is able to overcome any kind of downside in the market. So that continues to be our our 59:49 59 minutes, 49 seconds game plan and our strategy. So uh we will continue to ensure that the net debt to equity is is on the lower side 59:59 59 minutes, 59 seconds and always much much much lower than than that of our competitors. Currently it is as.11 1:00:07 1 hour, 7 seconds and we would like to be in these kind of range only from 0.1 to 2 and in our 1:00:16 1 hour, 16 seconds entire cycle of of this growth uh more and more importantly 1:00:23 1 hour, 23 seconds uh we are very focused in terms of the return on capital employed as well and 1:00:30 1 hour, 30 seconds as these land parcels uh you know they get monetized particularly beginning of uh the EM 1:00:39 1 hour, 39 seconds bypass expect the return on capital to be significantly higher than our 1:00:46 1 hour, 46 seconds competitors once EM bypass is sort of uh capitaliz uh monetized or ready more 1:00:54 1 hour, 54 seconds importantly uh in EM bypass the as as we are now just about to launch the project in this 1:01:03 1 hour, 1 minute, 3 seconds month which is uh which we are all excited about uh the the cash flows have been uh completely worked out. 1:01:13 1 hour, 1 minute, 13 seconds So in the first year itself which means now this calendar year we would be expecting 30% cash flow in the second 1:01:23 1 hour, 1 minute, 23 seconds year we would expect out of these 350 crores uh as estimated by the two 1:01:30 1 hour, 1 minute, 30 seconds powerful brands it will be 20% in the second uh followed by 30% in the third 1:01:37 1 hour, 1 minute, 37 seconds year and the remaining in the in the final fourth year of of the handover. So 1:01:45 1 hour, 1 minute, 45 seconds this cash flow is also being worked out to the last detail now as the project is 1:01:51 1 hour, 1 minute, 51 seconds about to to get launched. So 30 20 30 and 10. So very strong cash flows are 1:01:59 1 hour, 1 minute, 59 seconds expected over the next 3 years which will help in maintaining our our debt to 1:02:06 1 hour, 2 minutes, 6 seconds equity position strong. It will propel both organic and inorganic growth. 1:02:13 1 hour, 2 minutes, 13 seconds And further to add on that our internal target is always to give that per beta below two. 1:02:21 1 hour, 2 minutes, 21 seconds So that we have a sufficient question. So we will not be exceeding that. 1:02:27 1 hour, 2 minutes, 27 seconds Very helpful sir. Uh just patiala as per my calculations I believe in the third 1:02:35 1 hour, 2 minutes, 35 seconds quarter the revenue drop is somewhere around 6. Good. Can you confirm or give some directional if not exact number? 1:02:48 1 hour, 2 minutes, 48 seconds So this uh Runbas palace uh patiala uh got launched in January uh this year. Uh 1:02:57 1 hour, 2 minutes, 57 seconds this your numbers are close to to to being absolutely correct and uh we hope 1:03:05 1 hour, 3 minutes, 5 seconds uh to actually further improve on these numbers of uh six crores which we have mentioned as we go forward because it is 1:03:14 1 hour, 3 minutes, 14 seconds getting not only uh recognition domestically it is getting widespread 1:03:21 1 hour, 3 minutes, 21 seconds uh international uh exposure and branding. Today it has got covered in all the top magazines 1:03:30 1 hour, 3 minutes, 30 seconds whether it is the Condas Traveler India or whether it's Condest International is 1:03:37 1 hour, 3 minutes, 37 seconds features in the hot list of the Condinast Traveler for the year 2025. 1:03:45 1 hour, 3 minutes, 45 seconds More importantly, it is a one Michelin star. There were 24 hotels uh in India which have got classified in the one 1:03:53 1 hour, 3 minutes, 53 seconds Michelin key uh hotel by Michelin which uh you know is 1:04:00 1 hour, 4 minutes uh reflecting uh reflects on its high quality of product as well as very high 1:04:07 1 hour, 4 minutes, 7 seconds quality of food and beverage services and offering unique service experiences. 1:04:15 1 hour, 4 minutes, 15 seconds only then you can get a Michelin key or a Michelin you've become a Michelin star. So Michelin has started 1:04:24 1 hour, 4 minutes, 24 seconds classifying Indian hotels for their product quality and service excellence and food excellence. So we expect 1:04:33 1 hour, 4 minutes, 33 seconds because of all this recognition this hotel to significantly outperform 1:04:40 1 hour, 4 minutes, 40 seconds in in this quarter itself in quarter 4 as well as in the quarters ahead. More 1:04:47 1 hour, 4 minutes, 47 seconds importantly since we have acquired Malavar House we have acquired Malavar House because it's also a high quality 1:04:55 1 hour, 4 minutes, 55 seconds hotel. It's a running hotel. The full benefits of Maharabar House are going to come again in the next financial year 1:05:04 1 hour, 5 minutes, 4 seconds because uh this this year it has sort of just uh got acquired. A higher hotel with good 1:05:14 1 hour, 5 minutes, 14 seconds international support and now with domestic support. More importantly again a rally and chat hotel which is uh a mark of quality and service excellence. 1:05:25 1 hour, 5 minutes, 25 seconds So with all these properties which we have acquired and with the opening of Bombay uh we expect uh 1:05:34 1 hour, 5 minutes, 34 seconds excellent results and uh the growth momentum to continue in the in the years ahead. 1:05:43 1 hour, 5 minutes, 43 seconds Thank you. Thank you. Thank you so much. Thank you very much. 1:05:50 1 hour, 5 minutes, 50 seconds Uh that was the last question in Q. I would now like to hand the conference over to the management team for any closing comments. 1:05:58 1 hour, 5 minutes, 58 seconds So as we move ahead um our focus would remain on sustaining growth, 1:06:06 1 hour, 6 minutes, 6 seconds strengthening margins and creating long-term value for 1:06:14 1 hour, 6 minutes, 14 seconds our shareholders through a balanced mix of expansion, asset optimization, and innovation. 1:06:23 1 hour, 6 minutes, 23 seconds So at the end I would like to thank everyone for attending this call and for showing interest in APJ. 1:06:31 1 hour, 6 minutes, 31 seconds I hope we have been able to answer all your questions and should you need any further clarification or would like to 1:06:39 1 hour, 6 minutes, 39 seconds know more about the company, please feel free to reach out to us directly or to CDR India. 1:06:49 1 hour, 6 minutes, 49 seconds Thank you once again for taking the time to join the call and we look forward to engaging with you again in the next quarter. 1:06:58 1 hour, 6 minutes, 58 seconds Over to you Anuk. 1:07:01 1 hour, 7 minutes, 1 second Thank you very much. With that we conclude today's conference. Thank you for joining us ladies and gentlemen. You may now disconnect your lines.