Arihant Superstructures Limited — Q3 FY26

Arihant Superstructures Ltd Q3 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=gK-aorqSmGI Published: 3 months ago

0:02 2 seconds Ladies and gentlemen, good day and welcome to the Aryan Super Structure Limited Q3 FY26 earnings conference 0:10 10 seconds call. As a reminder, all participant lines will be in the listenon mode and there will be an opportunity for you to ask questions after the presentation concludes. 0:20 20 seconds Should you need assistance during the conference call, please signal an operator by pressing star then zero on your touchstone phone. Please note that 0:29 29 seconds this call is being recorded. I now hand the conference over to Miss Kungjal. 0:35 35 seconds Thank you and over to you ma'am. 0:39 39 seconds Hello and good afternoon to everyone on behalf of Aran Capital Market Limited. I thank you all for joining into the Q3 0:47 47 seconds FI26 earning conference call of Aran Superructure Limited. Today from the management we have Mr. Ashok Chajer, 0:55 55 seconds chairman and managing director. Mr. P charger the full-time director and Mr. 1:00 1 minute Udit Pata the CFO. So without any further delay I will hand over the call to the management for their opening remark. 1:10 1 minute, 10 seconds Thank you. Good afternoon everyone and thank you for taking time to join Aryan Superructures Limited conference call uh 1:17 1 minute, 17 seconds for Q3 FY26 to discuss on results and business updates. Uh I believe you have had the opportunity to review our 1:26 1 minute, 26 seconds presentation which is filed with the stock exchanges. Uh I will now request our CFO Mr. Odit Kasera to take you through the financial highlights for the 1:35 1 minute, 35 seconds quarter after which I will share the key operational highlights and business updates. 1:40 1 minute, 40 seconds Good afternoon everyone. Let me first start by briefing you on the financial highlights for the quarter and review. 1:46 1 minute, 46 seconds The consolidated operating revenue for Q3 FI26 stood at INR 126 crores, a decline of around 16% yearonear while 1:54 1 minute, 54 seconds showing a sequential growth of about 3% compared to Q2 FI26. The AITA stood at 29 crores declining by approximately 32% 2:03 2 minutes, 3 seconds yearonear and about 3% quarteron quarter with an AITA margin stood standing at 22.94% PAT for the quarter stood at 8 crores uh with a PAT margin of 6.59%. 2:16 2 minutes, 16 seconds For the 9-month period, the operational revenue stood at 370 Kores representing a growth of about 7% yearonear and AITA 2:24 2 minutes, 24 seconds was at 96 crores and increase of 17% and AITA margin improved to 25.92%. The PAT stands at 34 crores with a PAT margin of 9.23%. 2:34 2 minutes, 34 seconds Uh with this I will hand over the call to Mr. Path Charger to talk about the operational highlights. 2:40 2 minutes, 40 seconds Yeah, thank you Adit. Now moving on to the key operating highlights for the quarter. During the quarter, the company achieved sales bookings of 288 units 2:48 2 minutes, 48 seconds which is equivalent to 3 lakh 70,000 square ft of area amounting to 278 crores uh in booking value. The average 2:57 2 minutes, 57 seconds uh price per square ft achieved for the quarter was 7,55 rupees uh compared to 5,594 3:05 3 minutes, 5 seconds rupees uh in Q3 FY25 uh reflecting a year-on-year increase of 38%. The average price per unit sold 3:15 3 minutes, 15 seconds stood at 96.4 lakh rupees. Uh the collections for the quarter were 132.5 3:22 3 minutes, 22 seconds crores. U on the business development front we signed uh some additional 3 and a half acres of land at chop money uh 3:31 3 minutes, 31 seconds for our town villas project uh which is uh this deal is on a area sharing basis. 3:39 3 minutes, 39 seconds Uh with this addition the total township size has now increased to 96.5 acres. Uh during the quarter we also received OC 3:47 3 minutes, 47 seconds for Aryan Daloki at Karab uh wherein we delivered 127 units equivalent to 79,000 3:55 3 minutes, 55 seconds ft² of area. Uh our development pipeline remains robust backed by a strong land bank and we expect value unlocking as 4:04 4 minutes, 4 seconds projects advance through construction and launch cycles. Uh at the same time our uh inventory position remained 4:11 4 minutes, 11 seconds comfortable uh with unsold inven ready inventory being at only 81 units uh and 4:17 4 minutes, 17 seconds having a total value of 17 cr rupees. Uh Na'vi Mumbai today uh stands at the cusp of transformative growth uh supported by 4:27 4 minutes, 27 seconds a series of landmark infra projects uh and developments uh which are set to define the entire real estate landscape 4:34 4 minutes, 34 seconds for the next coming decade. uh with the Nami Mumbai International Airport uh starting operations uh at the year end 4:43 4 minutes, 43 seconds of 2025 uh connectivity is improving uh meaningfully. 4:49 4 minutes, 49 seconds In addition to that uh the government also has announced the gold line uh for the metro 8 which is line 8 connecting 4:57 4 minutes, 57 seconds the existing uh Mumbai international airport with the Nami Mumbai international airport. So this will significantly uh reduce the travel time 5:06 5 minutes, 6 seconds and potentially uh serve more passengers on a year-on-year basis as well. Uh with the atalu being operational for more 5:14 5 minutes, 14 seconds than 2 years now uh these developments are making large parts of dami Mumbai significantly closer to the south 5:21 5 minutes, 21 seconds southern Mumbai eastern suburbs as well as western suburbs uh compared to before. Uh what is also encouraging to 5:29 5 minutes, 29 seconds tell you that uh recent in recent months and weeks uh the price rises in Na'vi Mumbai have also been increasing uh 5:38 5 minutes, 38 seconds faster than compared to Mumbai as per uh multiple knowledge partner reports. uh 5:44 5 minutes, 44 seconds uh however there's still strong uh uh uh affordability advantage in certain areas of Na'vi Mumbai which uh really will 5:53 5 minutes, 53 seconds pull in more crowd and uh cater to the first uh cater to being a first uh choice for migrants coming from other 6:01 6 minutes, 1 second parts of the country given our leadership position and deep presents across uh multiple micro 6:10 6 minutes, 10 seconds markets in the Navi Mumbai region. We remain optimistic about the opportunities going ahead. Uh we also 6:17 6 minutes, 17 seconds are confident about the medium to long-term prospects of the MMR region uh 6:24 6 minutes, 24 seconds which is entering a new phase of growth supported by accelerating infra development uh across uh the entire geography. 6:34 6 minutes, 34 seconds uh this is uh also going to uh improve the social infrastructure and uh expect uh and we expect better end user demand 6:44 6 minutes, 44 seconds going ahead as well uh in the majority of our micro markets being focused. So 6:51 6 minutes, 51 seconds given our strong land bank and diversified portfolio across affordable, mid-inccome and premium category uh and 6:59 6 minutes, 59 seconds uh with many projects being in and around the significant uh large infra developments uh I think we are uh at the 7:08 7 minutes, 8 seconds right place to take advantage of the one of the best uh times to come for real estate for this part of the city going 7:16 7 minutes, 16 seconds ahead. With this now I open the floor for question and answers. Thank you. 7:22 7 minutes, 22 seconds Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask question may press star and one on their touchstone 7:31 7 minutes, 31 seconds telephones. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handset while asking 7:40 7 minutes, 40 seconds your question. Ladies and gentlemen, we'll wait for a moment while the question queue assembles. 7:53 7 minutes, 53 seconds The first question is from the line of Ji an investor. Please proceed. 8:03 8 minutes, 3 seconds Hello. Hello. Hello. Uh am I audible? 8:11 8 minutes, 11 seconds Yes. 8:12 8 minutes, 12 seconds Uh thank you for the opportunity. So my question is the world villas township includes uh 221 key hotel and Jim Khana 8:22 8 minutes, 22 seconds for annuality income given villa sales are stagnant what is the investment number one what is the investment outlay 8:31 8 minutes, 31 seconds expected I IR and payback period for the hotel or gym kana number two what uh 8:38 8 minutes, 38 seconds when will construction begin if villa sales don't pick up will you delay or cancel these components. Number three, 8:47 8 minutes, 47 seconds have you finalized the hotel operator brand partner and what gives you confidence in hospitality that is a 8:54 8 minutes, 54 seconds complete new vertical when core real estate sales are struggling. 9:02 9 minutes, 2 seconds Yes, good afternoon. Uh regarding the Jim Khana and hotel query you raised. Uh so the total investment uh in the Jim 9:11 9 minutes, 11 seconds Khana is envisaged at uh 25 odd crores and for the hotel it will be 225 crores. 9:18 9 minutes, 18 seconds So total investment outlay will be uh 350 crores for both these projects. Uh to update you on the status uh we have 9:27 9 minutes, 27 seconds started work for the Jimana. The plenth of the entire Jimana is already complete. Uh we have started work for 9:34 9 minutes, 34 seconds the first slab and then there's one more slab to go. uh we are uh uh confident that uh this project will be ready uh in 9:43 9 minutes, 43 seconds the next uh two to two and a half years time from now uh for uh members to come and uh uh participate in the daily 9:51 9 minutes, 51 seconds activities of the club. Uh with respect to how we are funding it, we have already tied up with uh the State Bank 9:57 9 minutes, 57 seconds of India for uh construction finance. So uh regardless of uh sales being slightly 10:05 10 minutes, 5 seconds slower uh or not being so great uh we'll still be able to complete this because 10:12 10 minutes, 12 seconds uh financial closure for Chim Khana is already in place and similar is the case for the hotel. Uh hotel uh the excavation work is complete as on today. 10:22 10 minutes, 22 seconds Uh we expect uh the hotel to be ready in uh next 4 years from now. uh we are in 10:29 10 minutes, 29 seconds the final stages of uh finalizing the operator. So once uh it is signed up, we'll be uh happy to come and uh update 10:37 10 minutes, 37 seconds the uh investors about the same. Uh the break even time expected for uh both 10:45 10 minutes, 45 seconds these uh assets to break even will be around uh 8 years. Uh that's the time frame they're expecting uh to achieve the break even. 11:01 11 minutes, 1 second Okay, thank you. I'll be back in queue with another question. 11:07 11 minutes, 7 seconds Thank you. Before we take the next question, we would like to remind participants that you may press star and one to ask a question. The next question 11:16 11 minutes, 16 seconds is from the line of Amit Aija from Edji Havan Company. Please proceed. 11:23 11 minutes, 23 seconds Yeah, good afternoon. Thank you for the opportunity. So my question is connected to the debt equity ratio. What is the targeted debt equity range and average 11:30 11 minutes, 30 seconds blended cost of borrowing like because I think so this has doubled compared to the last quarter. 11:39 11 minutes, 39 seconds Uh so debt has not doubled in one quarter interest I'm talking interest non 9 cr become 18 crores no year on year. 11:49 11 minutes, 49 seconds Yeah, that is with respect to the uh recognition of revenues happening uh in this quarter compared to last year. Uh 11:58 11 minutes, 58 seconds so that's as per the India standards. uh the debt uh we'll uh be uh increasing the debt by say another 150 odd crores 12:07 12 minutes, 7 seconds because uh for the development of the anity assets of the Jim Khana and hotel uh the balance uh uh we are al 12:16 12 minutes, 16 seconds parallelly also repaying uh certain debt which was from Tata Capital. So 12:23 12 minutes, 23 seconds parallelly debt the increment as well as repayment is happening uh at different project levels but at consolidated level 12:31 12 minutes, 31 seconds uh we expect it to be increased by another 150 odd crores from here on and uh we are very comfortable on that 12:39 12 minutes, 39 seconds because these are long-term debts uh especially for the annuity assets and uh yeah they have a uh late payback period 12:47 12 minutes, 47 seconds so it is comfortable uh to manage with And another question was like macro view 12:54 12 minutes, 54 seconds like do you see like because of this uh geopolitical situations and AI and all these developments which are happening 13:02 13 minutes, 2 seconds the IT sector might get affected. You can see today also in the stock market all the IT stocks are down the the bookings which are happening like will the bookings continue because most of 13:10 13 minutes, 10 seconds the real estate are being booked by IT uh employees. So the slowdown in this sector will affect our sector as well. What is your view on this? 13:19 13 minutes, 19 seconds So I think in Mumbai now Mumbai it's not only the IT sector which is dominating the real estate sales. There are many 13:26 13 minutes, 26 seconds other industries especially in N Mumbai area you have the MIDC's which host uh large corporate houses uh in the 13:35 13 minutes, 35 seconds industrial belts. uh we have we also have uh a tech companies uh on the tani 13:41 13 minutes, 41 seconds lapur road but uh I don't see uh real estate demand being largely affected 13:48 13 minutes, 48 seconds because of the dip in the IT sector and sir can you also share the what is 13:56 13 minutes, 56 seconds the marketing cost like compared to the revenue in percentage terms marketing cost is uh so direct marketing 14:05 14 minutes, 5 seconds cost goes to around 1 and a half% average. 14:10 14 minutes, 10 seconds Thank you sir. I have more questions. I will fall back in the queue. Thank you. Thank you. 14:17 14 minutes, 17 seconds Before we take the next question, we would like to remind participants that you may press star and one to ask a question. The next question is from the 14:25 14 minutes, 25 seconds line of Shivani and investor. Please proceed. Hi. 14:32 14 minutes, 32 seconds Uh hi. So first coach uh is so Shivani ma'am your line is breaking. 14:42 14 minutes, 42 seconds Am I am I am I able now? 14:47 14 minutes, 47 seconds Yes. Yeah. So I was saying projects like Advika like which is in Vashi so are 72% 14:54 14 minutes, 54 seconds complete but only 35% has been sold. So why is the absorption flow despite the excellent connectivity? 15:04 15 minutes, 4 seconds So uh I mean when we started the project in 2022 uh we were able to sell about uh 15:11 15 minutes, 11 seconds 10% of the inventory but uh uh between the stage of uh uh the plinth till the 15:19 15 minutes, 19 seconds RCC completion we uh did not witness great sales uh last few months and weeks have been doing very well for this 15:27 15 minutes, 27 seconds project uh uh and uh sales are not up uh uh we're able to average somewhere 15:34 15 minutes, 34 seconds around uh 8 to 10 units uh per month and uh since now the product is ready uh the 15:41 15 minutes, 41 seconds building is visible it's the painting work is uh ongoing so people have more clarity have more belief uh this is a 15:49 15 minutes, 49 seconds more of a a ready to move in market washi because people don't like to go on rent the majority of the owners already 15:58 15 minutes, 58 seconds have uh uh their own property and their uh their main uh purpose to purchase is 16:06 16 minutes, 6 seconds uh for the uh the purpose of upgrading themselves from a one bed to two bed, two bed to three bed, three to four. So 16:14 16 minutes, 14 seconds these their decisions are slightly late compared to other project that we are 16:21 16 minutes, 21 seconds doing the date has been slower but uh going forward uh I think we 16:28 16 minutes, 28 seconds in for the next one one and a half uh maximum. 16:35 16 minutes, 35 seconds All right. All right. Thank you. I have one more question. Yes. Yes, please. 16:42 16 minutes, 42 seconds So the my question is that 19% of ongoing development is under flight models JV or JV. So you recently find that 3.58. 16:58 16 minutes, 58 seconds Okay. Yeah. 17:00 17 minutes What was the question? I guess your voice. Yeah. 17:10 17 minutes, 10 seconds Hello. Hello. 17:16 17 minutes, 16 seconds Yes, ma'am. You can continue with your question. 17:18 17 minutes, 18 seconds Yeah. So, I was my first question is like what are the terms of this new JV area sharing ratio, your capital 17:26 17 minutes, 26 seconds commitment and the uh the profit plate as well? 17:31 17 minutes, 31 seconds an area sharing JV. We have to give a certain number of units uh to the uh land owner. There's no capital commitment or profit commitment. 17:44 17 minutes, 44 seconds And and my next question is are you planning to increase a share of asset like projects to reduce capital intensity and debt? 17:54 17 minutes, 54 seconds Yes, we are open but uh it will not happen significantly because majority of the projects that we do uh uh are where 18:03 18 minutes, 3 seconds we purchase the land but yeah we are exploring some opportunities for redevelopment. So the the proportion of 18:10 18 minutes, 10 seconds the asset light model can increase from 19% and increase to upwards of around 18:17 18 minutes, 17 seconds 25% or uh so the last question would be how do David projects compare on margins versus wholly uh own projects? 18:30 18 minutes, 30 seconds Well, uh margins are similar on a revenue P&L basis. Only the capital 18:37 18 minutes, 37 seconds infusion is uh the difference in a JV versus a uh outright purchase project. 18:46 18 minutes, 46 seconds Margins are remote. Okay. Okay. That's it from my side. Thank you so much. 18:54 18 minutes, 54 seconds Thank you. 18:56 18 minutes, 56 seconds Thank you. The next question is from the line of Amish from Novite Investment. 19:03 19 minutes, 3 seconds Please proceed. 19:06 19 minutes, 6 seconds Yeah. Uh hi sir. Uh sir last year uh you know uh if my notes are correct we had done a pre-sales of 8.90 crores. Uh can 19:15 19 minutes, 15 seconds you uh remind us what is the pre-sales that we had uh for this year 9 month and what is uh likely for say this year one. 19:24 19 minutes, 24 seconds Uh second sir our evida margins uh is uh moving in the range of uh 25%. 19:31 19 minutes, 31 seconds Um uh and if you can uh give us some sense of you know based on our pipeline GDP pipeline uh we we say that uh our 19:39 19 minutes, 39 seconds cost of land is uh below 500 per square ft. Uh you know I'm assuming that our 19:45 19 minutes, 45 seconds our margins on the land bank that we own could be higher. So if you can give us some sense of you know a blended abida 19:53 19 minutes, 53 seconds margin of the pipeline that we have. Uh and the third question sir uh is you know if you can give us an update on the 20:02 20 minutes, 2 seconds VA projects uh you know the both world va and the other one uh you know uh you know I think uh in one of uh the project 20:10 20 minutes, 10 seconds we have received the approval and we have launched the other is we are waiting. Uh so if you can give us some sense of you know when are we launching 20:17 20 minutes, 17 seconds that and whether you know what kind of you know blended margins we should assume in those projects. 20:24 20 minutes, 24 seconds Yes for 9 months the total sales we achieved was 664 cr rupees in value 20:31 20 minutes, 31 seconds which was 895,000 square ft in terms of area and these were around 6 760 units. Um so we refer 20:42 20 minutes, 42 seconds to pre-sales right the pre-sales number you are giving right or sales or in terms of revenue I was asking for pre-sales number this is pre-sales yeah 20:50 20 minutes, 50 seconds sure sure sir okay yeah with ect to your question on margin uh we expect margins to increase because 20:58 20 minutes, 58 seconds the blend of the higher margin projects is uh starting to contribute to the revenue and the P&L uh so the evida 21:08 21 minutes, 8 seconds margins which are around 23 25% today which should uh increase to 28 29% in 21:16 21 minutes, 16 seconds the coming uh quarters. The fourthcoming pipeline that we have is a mix of villa projects uh as well as uh uh phases of 21:24 21 minutes, 24 seconds the existing projects. So in villa projects we are expecting higher eida margins of around 45%. 21:32 21 minutes, 32 seconds uh whereas in the uh apartment projects uh we'll be uh working on uh EIDAS of to the tune of 30 to 33%. 21:42 21 minutes, 42 seconds Uh sure sir uh that's that's very uh heartening to know and sir I was uh uh if you can update us on both the 21:51 21 minutes, 51 seconds projects you know launch uh what's you know yes so world vas already launched we are 21:59 21 minutes, 59 seconds working on 180 villas in phase one uh work is ongoing in full swing for more than 100 villas as on today uh where 22:08 22 minutes, 8 seconds construction and RCC work is already taking shape uh with respect to town villas, we are in the approval stage. Uh so this launch 22:17 22 minutes, 17 seconds is expected to be in next financial year. 22:21 22 minutes, 21 seconds Okay. And so here uh you know uh because the VAS are you know kind of self-contained unit I'm assuming uh how will we recognize the sales here? 22:31 22 minutes, 31 seconds Because my guess is uh one uh as you said the you know the total project can uh elongate up to as long as 7 8 years 22:39 22 minutes, 39 seconds as you said but is it possible to recognize the revenue as we go forward uh and we you know kind of create the 22:47 22 minutes, 47 seconds phases uh within the project and you know kind of uh book the revenue any thoughts on the accounting part of the uh villa sir. 22:57 22 minutes, 57 seconds So yeah, I mean we are working on the phase wise model only for recognition of the villas. Uh so I mean we have not 23:06 23 minutes, 6 seconds started uh and we've not reached the threshold yet for world villas also. Uh but yeah that's the framework we have worked on for apartment projects also. 23:15 23 minutes, 15 seconds So we'll have to follow the similar pattern for these villa development too. 23:22 23 minutes, 22 seconds Sure. So, so just to kind of uh refer to the numbers that I shared in the presentation, you're saying what will phase one uh you know which is named at 23:31 23 minutes, 31 seconds the location chalk with 176 units. Uh we booked 51 and you're saying probably completed 100 unit as a completion. So 23:40 23 minutes, 40 seconds once this project is complete we can book uh this uh revenue which is probably something in the range of uh 23:48 23 minutes, 48 seconds 600 700 crores right? Oh sorry we don't follow project completion method we follow percentage completion method. 23:56 23 minutes, 56 seconds Okay. 23:57 23 minutes, 57 seconds So uh once we cross the 10% project completion threshold we start recognizing revenue for a particular 24:04 24 minutes, 4 seconds project. So that's for all our all the developments that we are carrying out. 24:08 24 minutes, 8 seconds So maybe in a quarter or two world villas will also start contributing uh to the revenues. 24:17 24 minutes, 17 seconds Sure. No. Thanks for that. 24:20 24 minutes, 20 seconds Thank you. Before we take the next question, we would like to remind participants that you may press star and one to ask a question. The next question 24:30 24 minutes, 30 seconds is a follow-up question from the line of Amit Agra from Edgihava. Please proceed. 24:37 24 minutes, 37 seconds Yeah. So my question was connected to the margining price as well as the cost the three things like what is the average selling price trend that you're 24:45 24 minutes, 45 seconds seeing and the cost is also increasing I think so and yeah you can please share the view on this. 24:54 24 minutes, 54 seconds Well cost is increased marginally by 200 rupees per square foot. Uh selling price is varying from micro market to micro 25:03 25 minutes, 3 seconds market. uh but yeah this quarter uh we sold more units in the uh premium luxury segment which contributed and helped us 25:11 25 minutes, 11 seconds achieve a average selling price of 7,500 which used to be usually uh averaging at 25:18 25 minutes, 18 seconds around 6,200 to 6,500 in the previous quarters. So it average selling price is always a mix of which inventory gets 25:26 25 minutes, 26 seconds sold in the particular quarter and it's divided accordingly. 25:32 25 minutes, 32 seconds s are you also witnessing marginal slowdown in the growth with that was happening earlier? 25:39 25 minutes, 39 seconds No, we're not witnessing any slowdown in the markets. I think especially after the airport opening markets have uh 25:46 25 minutes, 46 seconds responded quite well over the last 45 days and uh we launching one project in this quarter also at Punveill Ayan 25:55 25 minutes, 55 seconds Espire which is very close to the airport. I expect a good uh uh response 26:02 26 minutes, 2 seconds in that project as well. It's the fourth phase uh the fifth tower which is being opened now. All before the the four 26:10 26 minutes, 10 seconds towers the five towers four four towers before have uh received a great response and we expect that to continue going ahead as well. 26:22 26 minutes, 22 seconds What is the average blended cost of interest that we're paying? 26:26 26 minutes, 26 seconds Average interest cost we'll be paying is around 12 and a half%. 26:31 26 minutes, 31 seconds So would the company be putting some like policy or decisions to reduce it going further? 26:39 26 minutes, 39 seconds Yes. Yes, we have plans uh going further. We want to take low cost debt at the maximum level possible and that's 26:48 26 minutes, 48 seconds the strategy we are uh following as well. So we're working on that very uh 26:54 26 minutes, 54 seconds aggressively and closely to see how we can reduce the cost of debt uh and which 27:00 27 minutes will help uh us also uh change gears and any plans to dilute some stake. 27:08 27 minutes, 8 seconds Uh not at the moment. Whenever the markets are uh uh whenever the markets are timed rightly we'll think about it at that 27:17 27 minutes, 17 seconds time. But currently uh there's no immediate plans of uh diluting. Thank you. So that's it from my side. 27:25 27 minutes, 25 seconds All the best. Thank you. 27:28 27 minutes, 28 seconds Thank you. Before we take the next question, we would like to remind participants that you may press star and one to ask a question. The next question is from the line of Raman and investor. 27:39 27 minutes, 39 seconds Please proceed. 27:52 27 minutes, 52 seconds Mr. Raman, your line has been unmuted. You can go ahead with your question. Am I audible? 28:00 28 minutes Yes. 28:06 28 minutes, 6 seconds Show us new line acquisition or the annuality assets or deleveraging the balance sheet. 28:13 28 minutes, 13 seconds Sorry, can you repeat your question? 28:16 28 minutes, 16 seconds So my question is that over the next two years, will capital be prioritized towards new land acquisition, the annuality assets creation or you know deleveraging the balance sheet? 28:28 28 minutes, 28 seconds So we'll be doing it on entity and project level basis. So in certain subsidiary projects the plan is to 28:36 28 minutes, 36 seconds reduce the debt uh and uh you know all this we target that all subsidiaries become debtree in the next two years. 28:44 28 minutes, 44 seconds Uh uh in the main listed entity the focus is on uh developing uh the annuity 28:52 28 minutes, 52 seconds assets first. Uh second will be to expand the business uh by adding more 28:59 28 minutes, 59 seconds lands and third would be the debt but the the debt reduction will happen uh in 29:06 29 minutes, 6 seconds due course as per the milestones and uh uh the milestones set uh by the bankers. 29:13 29 minutes, 13 seconds So I mean it looks very uh aligned everything is set with respect to that 29:20 29 minutes, 20 seconds and Od also would like to add more on that. So you know one you know with respect to the annuality assets right uh so we would like to add here that you 29:29 29 minutes, 29 seconds know the complete world villa project which is there would be a cash neutral project for the company. When I say world villa project it includes the Jim 29:36 29 minutes, 36 seconds Khana as well as the fivestar hotel. So over a period of time what actually would happen is that there would be excess cash flow from the world villa 29:44 29 minutes, 44 seconds sales which would be getting reinvested in the Jim Khana hotel. So right now to fastpace the construction and complete 29:51 29 minutes, 51 seconds these projects in time we are basically taking the construction finance loan from state bank. uh the value of land which we had acquired for these project 29:59 29 minutes, 59 seconds has already increased by roughly 3x which you know doesn't get reflected in the books of accounts because this is a notional gain but it would help us you 30:08 30 minutes, 8 seconds know to increase the sale price of the villas. So you know currently the project is being funded by construction finance but when the project is complete 30:16 30 minutes, 16 seconds and ready the overall project would be uh cash neutral and at the end of the project we would be having two annuity 30:23 30 minutes, 23 seconds assets with us the gym kana as well as the hotel. Yes sir. 30:34 30 minutes, 34 seconds I mean the total number of Jim Kana memberships that have been sold to date we have sold around 750 odd memberships till date. 30:45 30 minutes, 45 seconds Okay sir. So could you tell me the current membership fee structure in that? So in the last quarter you had mentioned that it was 11 lakhs of 75 years. So has there been any recent uh 30:54 30 minutes, 54 seconds price increase or revision in the membership pricing? 30:58 30 minutes, 58 seconds Yes. Yes. It is uh today priced at uh 21 lakhs. 31:06 31 minutes, 6 seconds Okay. Thank you. 31:14 31 minutes, 14 seconds The next question is from the line of Haley Sha and investor. Please proceed. 31:20 31 minutes, 20 seconds Uh thank you for giving me this opportunity. Uh I'm sorry if this questions are asked before. I have joined the call base. Uh my first 31:28 31 minutes, 28 seconds question is uh the three projects sen anash aria ph4 and world villa ph1 31:36 31 minutes, 36 seconds reported zero areas sold in Q3 and acquired significant capital to ground 31:42 31 minutes, 42 seconds in the project like position assessment. 31:51 31 minutes, 51 seconds See uh at Aria we have witnessed slow response over the last few months. Uh 31:58 31 minutes, 58 seconds we're working on uh uh you know the project and we are trying to revamp it uh by introducing furnished homes. I 32:07 32 minutes, 7 seconds think this that's some area which uh we've not explored till day date and I think maybe we should be able to get 32:14 32 minutes, 14 seconds traction on that. world villas uh we'll see good response from this quarter because we completed the show villa at 32:21 32 minutes, 21 seconds the end of last quarter uh and in the last 45 days with this visits have been good uh there's been good traction uh on 32:30 32 minutes, 30 seconds that front uh Anika 7 uh we just completed the print plint for one building and uh we now uh uh looking 32:38 32 minutes, 38 seconds forward to constructing it in a fastpace manner so that will help us uh uh uh get more sales and parallelly at the same 32:47 32 minutes, 47 seconds time and uh it it's uh not a worry we'll be able to do the this up comfortably. 32:56 32 minutes, 56 seconds Okay. Uh my next question is for bird what is the plan and timeline revise and 33:03 33 minutes, 3 seconds if action doesn't improve by Q4 will you repric or pause construction or bring in the Jerry partners? 33:13 33 minutes, 13 seconds Uh no, we have no plans to bring in any JV partner. Uh we are developing this project on our own and uh we are 33:22 33 minutes, 22 seconds confident uh of uh uh the sales as well as the execution. So we're not uh even 33:30 33 minutes, 30 seconds uh inclined to have any JB partner for this project. 33:34 33 minutes, 34 seconds Uh okay sir my and last question is with 19 ongoing debts and rising leverage how are you prioritizing your capital allocation? 33:45 33 minutes, 45 seconds Well majority of our capital allocated is towards land and approvals uh towards working capital. We uh majorly uh depend 33:55 33 minutes, 55 seconds on the pre-sales uh to help us fund the construction. Uh so all the net worth of the company is already deployed. 34:07 34 minutes, 7 seconds Uh okay s thank you. 34:13 34 minutes, 13 seconds Thank you. Before we take the next question we would like to remind participants that you may press star and one to ask a question. 34:21 34 minutes, 21 seconds Next question is from the line of Natasha Singh an investor. Please proceed. 34:28 34 minutes, 28 seconds Hello sir. Thank you so much for giving the opportunity. Uh so sir uh just wanted to ask can you please share project five sales background for Q3? 34:39 34 minutes, 39 seconds Uh yeah you can connect with us online uh able to share that. 34:46 34 minutes, 46 seconds Okay. Sure. Sure. And definitely as a so uh follow up to that uh which three to four projects are actually driving the 34:54 34 minutes, 54 seconds sales and what a percentage of total sales do you uh represent from that base? 35:01 35 minutes, 1 second So yeah right now these are the top three projects driving 35:10 35 minutes, 10 seconds up the sales as well as the revenue recognitions. But uh more projects are uh going to be aligned and uh to that 35:18 35 minutes, 18 seconds stage world villas Aanti Palace at Shil Fata. 35:23 35 minutes, 23 seconds So there we have uh seven eight key projects which will help us uh sail through comfortably going forward. 35:35 35 minutes, 35 seconds Okay sir. Got it. Thank you so much for that. Thank you. I wish you all the best. 35:43 35 minutes, 43 seconds Thank you ladies and gentlemen to ask a question you may press star and one now 35:58 35 minutes, 58 seconds we would like to remind participants that you may press star and one to ask a question. The next question is from the line of Rushi Joy an investor. Please proceed. 36:15 36 minutes, 15 seconds Yes sir. 36:17 36 minutes, 17 seconds Yeah. I just had one question that uh in the recent margin moments have been a 36:24 36 minutes, 24 seconds product mix. So can you explain your top three revenue contributing projects or you know to understand that true margin dispersion. 36:37 36 minutes, 37 seconds H I can name the projects which have contributed more in this nine months. It is Arian Alishan. It is uh in Aryant uh 36:46 36 minutes, 46 seconds at at kar there is Ariant uh Aspire. So these have contributed largely uh in this financial year to the revenue recognition. 36:58 36 minutes, 58 seconds Okay. So uh the last question I have was uh like let's say if uh residential demand slows for uh 12 to 8 months then 37:07 37 minutes, 7 seconds uh what is the minimum sustainable sales velocity required to you know comfortably serve that 37:18 37 minutes, 18 seconds I see uh we have projects at certain different different stages so we don't 37:25 37 minutes, 25 seconds see slowdown in some projects at least where it is at an advanced stage of completion. So those 37:34 37 minutes, 34 seconds projects are self sustaining themselves like uh to name Arian Alishan, Arian Aspire, Adriikar now. So these have 37:43 37 minutes, 43 seconds reached the threshold where uh we even a slowdown in the entire market will not affect them largely because they are at 37:50 37 minutes, 50 seconds a very uh advanced stage of uh completion. Uh makes sense. 38:01 38 minutes, 1 second Thank you sir. That's uh answer my questions. Thank you. 38:05 38 minutes, 5 seconds Thank you. The next question is from the line of Nam and investor. Please proceed. 38:13 38 minutes, 13 seconds Hello. Hi. Uh thank you so much opportunity. Uh I just wanted to understand uh can you uh break down like 38:20 38 minutes, 20 seconds um what the country current inventory is and uh like the unsold units that are completed but not yet sold because um I 38:29 38 minutes, 29 seconds think as you mentioned previously also the world will only zero sold. on the entire portfolio how that on the 38:36 38 minutes, 36 seconds inventory side we have inventory at Aryan Daria uh some units at Japur 38:44 38 minutes, 44 seconds uh three to four units at Aryan Dali Shan and some units in Aryan Danmul Badlapur these comprise of the ready 38:53 38 minutes, 53 seconds unsold inventory so total book value for these inventories is around 17 crores 39:02 39 minutes, 2 seconds Right. Okay. Got it. Uh and so how are you uh managing the like the risks that come with all of this like uh the 39:09 39 minutes, 9 seconds regulatory uh labor availability and uh let's say funding funding constraints? No. 39:16 39 minutes, 16 seconds So we have to uh manage that if labor is available at cost. So if you have to 39:24 39 minutes, 24 seconds increase a bit on the cost front uh that is the v that is the right way to go ahead because you can't stall the 39:31 39 minutes, 31 seconds project uh due to shortage of labor. Uh so increasing little cost uh to the 39:38 39 minutes, 38 seconds contractor helps uh us move forward fast. Okay. Understood. 39:47 39 minutes, 47 seconds That gives a lot of clarity. 39:51 39 minutes, 51 seconds uh you know also adding with respect to the unsold inventory you know 81 units worth roughly 17 crores so on the total 40:00 40 minutes uh scale at which the company is operating right now and you know considering the total GDP of the company at roughly 12,000 12,500 levels the part 40:08 40 minutes, 8 seconds of unsold inventory is very minuscule at current levels Right. 40:21 40 minutes, 21 seconds Thank you. The next question is from the line of Mo and investor. Please proceed. 40:28 40 minutes, 28 seconds Yeah. Hello. Yes. 40:34 40 minutes, 34 seconds Yeah. So my question is that could you tell me what is the cost of secured and 40:44 40 minutes, 44 seconds sorry to interrupt Mr. work but your line is breaking. That's not now. 40:54 40 minutes, 54 seconds Yes. 40:56 40 minutes, 56 seconds So, so what is the cost of debt on the secured borrowings and the unsecured borrowings? 41:04 41 minutes, 4 seconds Yeah, it is uh blended averaging at 12 and a half% for both. So we have some secured debt which is even at 10% but it 41:13 41 minutes, 13 seconds ranges from 10 to 16 uh whereas the unsecured loans are uh at an average of 41:20 41 minutes, 20 seconds 13 and a half. So the blended cost comes down to 12 and a half. 41:27 41 minutes, 27 seconds Okay question uh soy how much f27 revenue is already secured through book 41:35 41 minutes, 35 seconds and entry. what is the expected timeline for remedation from these games? 41:42 41 minutes, 42 seconds Uh so see we the ongoing projects that are in the presentation we expect them majority of them to be completed over the next uh two years. 41:57 41 minutes, 57 seconds Okay sir. Thank you. 42:01 42 minutes, 1 second Thank you. Participants who wishes to ask a question may press star and one. 42:06 42 minutes, 6 seconds Now participants who wishes to ask a 42:15 42 minutes, 15 seconds question may press star and run. Now 42:32 42 minutes, 32 seconds As there are no further questions from the participants, I would now like to hand the conference over to Miss Kungja for the closing comments. 42:41 42 minutes, 41 seconds Thank you ma'am. 42:43 42 minutes, 43 seconds Thank you to the management and the participants for joining Q36 conference call of superstructure limited. I would 42:52 42 minutes, 52 seconds now hand over the call to the management for the opening remarks. 42:57 42 minutes, 57 seconds Yes, thank you uh everyone for joining the earnings call. I hope you were able to get all answers to your satisfaction. 43:03 43 minutes, 3 seconds Uh if you have any further questions uh please feel free to reach out to our investor relation team at uh Valerm 43:10 43 minutes, 10 seconds Advisors. Uh and you can also contact our finance department uh and we'll be happy to take it forward from there. Uh 43:18 43 minutes, 18 seconds we also have to thank uh Arian Capital for hosting this call for us. Uh thank you very much. 43:25 43 minutes, 25 seconds Thank you everyone. 43:28 43 minutes, 28 seconds Thank you on behalf of Aryan Superructure. That concludes this conference. Thank you for joining us and you may now disconnect your lines.