Arkade Developers Limited — Q3 FY26

Arkade Developers Ltd Q3 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=cHBdFMhs-QI Published: 3 months ago

0:01 1 second Ladies and gentlemen, good day and welcome to our get developers limited Q3 and 9 months FI26 earnings conference 0:08 8 seconds call hosted by ad factors PR private limited. This conference call may contain forward-looking statements about 0:16 16 seconds the company which are based on the beliefs, opinions and expectations of the company as on date of this call. 0:23 23 seconds These statements are not the guarantee of future performance and involve risk and uncertaintities that are difficult to predict. As a reminder, all 0:31 31 seconds participants line will be in listenonly mode and there will be an opportunity for you to ask question after the presentation concludes. Should you need 0:39 39 seconds assistance during this conference call, please signal an operator by pressing star then zero on your touchstone phone. 0:46 46 seconds Please note that this conference is being recorded and the call will be restricted to 40 minutes. I now hand 0:53 53 seconds over the conference to Mr. Amit Jan, chairman and managing director of the company. Thank you. And over to you, sir. 1:16 1 minute, 16 seconds Amits. 1:25 1 minute, 25 seconds Good evening everyone. I would like to extend a warm welcome to you all for arcade developers limited earnings 1:33 1 minute, 33 seconds conference call for the third quarter and 9 months ended 31st December 2025. 1:40 1 minute, 40 seconds I would like to begin by expressing my gratitude to you all for taking the time to join us today. We have on call with 1:49 1 minute, 49 seconds us Mr. Samset CTA CFO Miss Dipy Nyer head of marketing and at factors PR our 1:57 1 minute, 57 seconds investor relations team we have shared our earnings presentation I hope you all must have had the chance to go through 2:06 2 minutes, 6 seconds it Mumbai's residential real estate market 2:13 2 minutes, 13 seconds continues to remain structurally strong supported by sustained enduser demand improve improving affordability and a 2:21 2 minutes, 21 seconds clear preference ship towards premium and lifestyle housing. The ongoing transition from purely need-based 2:30 2 minutes, 30 seconds purchases to upgrade buying driven by aspirational home ownership, better infrastructure connectivity 2:38 2 minutes, 38 seconds and redevelopment supply is creating a healthy runaway for medium to long-term growth. We remain optimistic about the 2:47 2 minutes, 47 seconds market outlook and are well positioned to capitalize on these evolving demand trends despite international macro 2:56 2 minutes, 56 seconds uncertaintities in terms of a long-term perspective. The market looks poised for growth on the back of by favorable 3:05 3 minutes, 5 seconds economic conditions and strategic opportunities. Our agile approach and lean balance sheet give us optimism to 3:14 3 minutes, 14 seconds capitalize on the emerging trends. I would like our marketing head Miss Ditki to share a brief overview of our sector 3:23 3 minutes, 23 seconds at large before we get into our recent development business and financial performance for this period. 3:32 3 minutes, 32 seconds Thank you Mr. J. From an industry standpoint, as for the region's nightfrank report, residential volumes across India's top eight cities have 3:41 3 minutes, 41 seconds consolidated at 3.48 lakh units. The industry reports highlight that Mumbai alone recorded over 1.5 lakh property 3:50 3 minutes, 50 seconds registrations in 2025, the strongest performance in over a decade, underscoring the depth and resonance of the housing demand in the 3:59 3 minutes, 59 seconds city. Across India, the sub50 lakh segment is shrinking while the premium segment is expanding aggressively. In 4:07 4 minutes, 7 seconds fact, homes priced above 1 cr now make up 50% of all transaction. This suggests that the Indian home buyer isn't just 4:15 4 minutes, 15 seconds looking for the roof, they're looking for a lifestyle. 4:19 4 minutes, 19 seconds Average Wash prices also rose steadily during the year reflecting a premonization trend and continued 4:27 4 minutes, 27 seconds traction in mid to high ticket size segments. Despite a high base, Mumbai saw 1% volume growth and more importantly a 7% price appreciation. 4:38 4 minutes, 38 seconds This tells us demand here is deep, genuine and end userdriven, not speculative. 4:44 4 minutes, 44 seconds At the MMR level, absorption has continued to remain among the highest in the country with leading contributions from Mumbai city and key suburban micro 4:53 4 minutes, 53 seconds markets. While price momentum has been supported by a higher share of premium launches and steady sales conversion 5:01 5 minutes, 1 second with limited land availability in core areas, redevelopment is emerging as a key structural driver for new supply and 5:08 5 minutes, 8 seconds long-term value creation in Mumbai's mature residential market. information. 5:14 5 minutes, 14 seconds The Mumbai market continues to offer a favorable combination of stable demand, criminalization, redevelopment opportunities and an improving ecosystem 5:24 5 minutes, 24 seconds which keeps the sector well positioned for sustained and disciplined growth. I would now like to hand back to our chairman Mr. Ahmed Jane to take us 5:32 5 minutes, 32 seconds through the developments and other highlights. Thank you. 5:38 5 minutes, 38 seconds The quarter gone by has been phenomenal for us. 5:43 5 minutes, 43 seconds We have recorded highest ever quarterly pre-sales of rupees 267 cr in quarter 3 5:49 5 minutes, 49 seconds financial year up by 21% year-on-year basis. Collection grew up 19% 5:56 5 minutes, 56 seconds year-on-year basis to 212 cr with several key milestones in our growth trajectory. The company has shown 6:05 6 minutes, 5 seconds tremendous resilience in the face of market headwinds stemming from sluggish macroeconomic scenarios. 6:14 6 minutes, 14 seconds We continued to build and strengthen our green field portfolio complemented by redevelopment projects across the MMR 6:22 6 minutes, 22 seconds region. We recently acquired another land parcel in Bandukb for a consideration of rupees 148 cr. This 6:31 6 minutes, 31 seconds land parcel is approximately 14,363 square meters in area and will further 6:38 6 minutes, 38 seconds strengthen our presence in the central corridor of MMR region. This further expands our green field project pipeline which purchase relatively higher margin. 6:50 6 minutes, 50 seconds Some other recent land acquisition include a 6.28 acre land parcel in Tan and Pistan land in Goreway. Overall, we 7:00 7 minutes see our footprint expanding across key suburbs in MMR supported by a healthy order book of redevelopment as well. 7:09 7 minutes, 9 seconds Our commitment remains towards developing valuable projects in prime micro markets and unlocking the full 7:18 7 minutes, 18 seconds potential of key land parcels across the city. 7:24 7 minutes, 24 seconds Moreover, we recently formed a wholly owned subsidiary ART 360 facility management private limited. Through 7:32 7 minutes, 32 seconds this, we shall offer facility management services specially for the projects we develop. This has the potential to be a 7:40 7 minutes, 40 seconds natural follow-up revenue stream for most of our projects. One of our main differentiating factor is our 7:48 7 minutes, 48 seconds disciplined execution per project approach. Instead of accumulating large land banks at the expense of timely 7:56 7 minutes, 56 seconds development, we take a fundamentally different approach focusing on project we can execute efficiently, deliver 8:05 8 minutes, 5 seconds ahead of schedule and then move swiftly to the next project. This ensures faster revenue recognition, lower holding cost and sustained growth momentum. 8:17 8 minutes, 17 seconds This ethos has not only shaped our strong track record but has also established arcade as a trusted and 8:25 8 minutes, 25 seconds execution focused developer in the MMR real estate market. The real estate 8:31 8 minutes, 31 seconds industry is characterized by a certain degree of macroeconomic seasonality and 8:39 8 minutes, 39 seconds arcade is well positioned to navigate through industry cycle to deliver sustained growth. Our execution focus 8:47 8 minutes, 47 seconds remains on building aspirational family oriented living spaces sustainably, 8:53 8 minutes, 53 seconds executing with precision and creating lasting values for our customers, partners and all stakeholders. With that, I would now like to invite Mr. 9:05 9 minutes, 5 seconds Sam, our CFO, to take you through the financial performance for the period. 9:12 9 minutes, 12 seconds Thank you, sir. Good evening everyone. 9:15 9 minutes, 15 seconds I will now take you through some of our key operational highlights for the quarter. We achieved highest highest 9:22 9 minutes, 22 seconds ever quarterly pre-sale of rupes 267 crores for Q3 FY26 a growth of 21% on 9:29 9 minutes, 29 seconds year-on-year basis visav 220 K in Q3 FY25 the area sold during the quarter 9:37 9 minutes, 37 seconds stood at 96,000 ft² up by 30% yearonear as compared with 74,000 ft² in previous 9:45 9 minutes, 45 seconds corresponding quarter collection for future Q3 FI26 came in at 212 crores registering a yearon-year 9:54 9 minutes, 54 seconds growth of 19%. Up from rupes 178 crores in Q3 FY25. 10:00 10 minutes The key operation highlights for the 9 months ended December 25 are as follows. 10:06 10 minutes, 6 seconds We recorded pre-sales of 598 crores for 9 months FY26. a growth of 8% on 10:12 10 minutes, 12 seconds year-on-year basis as against rupes 55 56 crores in previous corresponding 9 months. The area sold during the quarter 10:21 10 minutes, 21 seconds stood at 2 lakh 5,000 square ft up by 15% yearonear over 1 lak 79,000 ft sold 10:29 10 minutes, 29 seconds in previous 9 month period. Collections for 9 months FY26 came in at 533 crores registering a year-on-year growth of 10:38 10 minutes, 38 seconds 11%. From rupes 478 crores in 9 months FY25. 10:44 10 minutes, 44 seconds Now coming to our consolidated financial performance for third quarter and 9 months ended 31st December 2025. Our 10:52 10 minutes, 52 seconds revenues for Q3 FI26 stood at uh 199 crores compared to 230 11:00 11 minutes compared to 231 crores in Q3 FI25. IITA for the quarter 2 at rupees 54 crores. 11:07 11 minutes, 7 seconds The IBITA margin for Q3 FI2 stood at 27.4% compared to 27.1% in same quarter last 11:15 11 minutes, 15 seconds year. Profit after tax came in at 40 crores. The PAT margin for the quarter stood at 20.2% compared to 21.7% in Q3 FY25. 11:26 11 minutes, 26 seconds Coming to 9 months period, revenue for 9 months FY26 stood at 629 crores compared 11:33 11 minutes, 33 seconds to 560 crores in 9 months FI25 reflecting the growth of 12% yearon year. IITA for the period stood at 151 11:41 11 minutes, 41 seconds crores. The IITA margin for 9 months FI26 stood at 24.4%. 11:47 11 minutes, 47 seconds Profit after tax came in at 115 crores visa with 124 crores in 9 months FY 25. 11:54 11 minutes, 54 seconds The PAT margin for the period stood at 18.2%. 11:58 11 minutes, 58 seconds That's all from our side. We can now open the floor for questions. 12:04 12 minutes, 4 seconds Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on their touchstone 12:12 12 minutes, 12 seconds telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a 12:21 12 minutes, 21 seconds question. Ladies and gentlemen, we will wait for a moment while the question assembles. 12:44 12 minutes, 44 seconds The first question is from the line of Danj from Suli D securities. Please go ahead. 12:52 12 minutes, 52 seconds Yeah. Hello sir. Uh so why we are seeing uh I mean delay in uh launches and also uh uh this uh 13:02 13 minutes, 2 seconds quarter numbers in terms of revenue uh we little bit of uh lower side. So 13:09 13 minutes, 9 seconds what is this reason because we follow percentage completion method. So are we going uh slow in terms of execution? 13:20 13 minutes, 20 seconds So launches uh uh got a bit delayed because the environmental clearances were taking time for the projects to be 13:30 13 minutes, 30 seconds approved. The environmental clearance offices were not working because of some stay order and which has now started 13:37 13 minutes, 37 seconds again and we've started acquiring uh approvals environmental clearances and 13:44 13 minutes, 44 seconds now next financial year we have a good lineup of launches. 13:49 13 minutes, 49 seconds So all the backlog of launches will be cleared in next financial year 13:56 13 minutes, 56 seconds and even the bandup and which is yeah bandup and bulund are very much in order now. 14:05 14 minutes, 5 seconds Oh the those projects are I mean pace of sailing is on lower side. Uh the pre-sales are we've we've recorded 14:12 14 minutes, 12 seconds highest pre-sales this quarter that is because of good sales in banduk and mulu. So Dhanj to add what Amitish says. 14:22 14 minutes, 22 seconds Uh so we recorded a good sales in nest and rare which is a kuen in this quarter. Uh now to answer your second 14:29 14 minutes, 29 seconds question the recognition in PNL is lower compared to last year. So last year uh same quarter we received OC for one of 14:39 14 minutes, 39 seconds the project Santa Cruz project and even uh previous to that we received OC for one more project arcade Aspire. So that 14:46 14 minutes, 46 seconds revenue jump was there last year the same quarter. This year we got a good pre-sale numbers but you know there is a time lag between the booking and the 14:54 14 minutes, 54 seconds registration which which takes about one one and a half month to get it registered. So the what is been registered the booking uh done in this 15:02 15 minutes, 2 seconds quarter the revenue will flow next quarter you know so you you will find that there is a little bit of lower side income. 15:11 15 minutes, 11 seconds Okay. And this Bangon Nangar project which we are planning to launch. So with this launch what type of pre-sales growth we can see in FY26 because 9 months we have grown only 8%. 15:25 15 minutes, 25 seconds So uh we we are expecting a good sales from this project Lakshmi Ramana project 15:32 15 minutes, 32 seconds and obviously that will complement the existing project. So we expect to achieve about whatever we have given the 15:40 15 minutes, 40 seconds guidelines earlier because 20 25% tagger growth we are guiding for uh 2 three years. So that uh 15:47 15 minutes, 47 seconds we are still maintaining or it is uh we are tapping down the growth guide. 15:53 15 minutes, 53 seconds So going forward years obviously we we are keeping that target in our mind because launches are lined up and we expect that to achieve. 16:02 16 minutes, 2 seconds Okay. Thank you. Thank you. 16:08 16 minutes, 8 seconds The next question is from the line of heat sha from Excel PMS. Please go ahead. 16:15 16 minutes, 15 seconds Uh yeah. Hello sir. Am I audible? Yeah. Hey. Yes, you're audible sir. 16:20 16 minutes, 20 seconds All right. Yes sir. So I would like to ask one thing. There is an article published by Hindustan Times uh dated 16:27 16 minutes, 27 seconds from 1st August 2025. It's almost 6 months back. The article says that Arch developers are the second home market in 16:35 16 minutes, 35 seconds Karaj Mel with almost 80 to 100 acre project and revenue of 500 crores. But since then there is no followup article 16:44 16 minutes, 44 seconds and uh no disclosure or clarification from your side in any call. So I would like if you could put some light upon 16:51 16 minutes, 51 seconds this because the articles from Hindustan times so it's a trusted source. So can you clarify something? 16:59 16 minutes, 59 seconds So it is yet under consideration. We haven't yet entered any definitive for the transaction and it is at advanced 17:08 17 minutes, 8 seconds stage of negotiation but uh uh no definitive document as yet. 17:15 17 minutes, 15 seconds Uh okay sir doctor and second thing can you uh clear something about the silan arcade de merger disclosure that you 17:24 17 minutes, 24 seconds gave almost one one and a half month back because you know the uh the disclosure that was provided by arcade developers uh it was not much of 17:33 17 minutes, 33 seconds understandable so can you tell what is happening in that demo merger so that de merger is uh with nt 17:41 17 minutes, 41 seconds and we we have given the next date the final date of the next month. So we expect the outcome next month. So by 17:49 17 minutes, 49 seconds this quarter we we expect that de merger will be completed. 17:53 17 minutes, 53 seconds Okay. But the revenue from the filmistan project will be recognized in the balance sheet of balance sheet of arcade developers itself. Right. 18:00 18 minutes Yeah. That's the purpose of de merger. 18:02 18 minutes, 2 seconds So we are demerging the tenency right from filmistan limited to arcade limited. So arade can develop the project. 18:10 18 minutes, 10 seconds Uh okay great that's great. And one last question uh as the lineup that I just saw in the presentation that you 18:17 18 minutes, 17 seconds provided it was almost uh 11,900 CR of stopline mixed let's say five to six years. So according to that uh the 18:27 18 minutes, 27 seconds guidance that you just gave a couple of minutes back that is 20 to 25% CAGGR don't you think we easily able to cross 18:34 18 minutes, 34 seconds that limit because if we are targeting the GDG of 11,900 CR the CAGR would 18:41 18 minutes, 41 seconds easily cross around 35 to 40%. I mean are we uh being very uh you know uh 18:49 18 minutes, 49 seconds we are being conservative as always that is our DNA you know. Yeah. Give for less and 18:57 18 minutes, 57 seconds strive to achieve more. That is what it is. 19:01 19 minutes, 1 second Great. Great. Super, super. Thank you so much, sir. Thank you. 19:07 19 minutes, 7 seconds Thank you. The next question is from the line of Disha from Safire Capital. Please go ahead. 19:16 19 minutes, 16 seconds Hello. Am I audible, sir? Yes. Yes, you're audible. 19:20 19 minutes, 20 seconds Yeah. So I think you mentioned that some of the launches got pushed back to the next year. So could you just help me with what are the total number of launches you're planning for the next year? 19:30 19 minutes, 30 seconds So we looking at around PI's project minimum to launch in the coming year. Okay. 19:38 19 minutes, 38 seconds Yeah. 19:39 19 minutes, 39 seconds And the split between H2 and H EDB of around uh 5,000 cr plus. 19:47 19 minutes, 47 seconds Okay. And what what would be the share in H1 versus H2? 19:53 19 minutes, 53 seconds Uh very difficult uh to it depends on the approvals and the [clears throat] RARA arrangement and everything but 20:02 20 minutes, 2 seconds across the financial year it will be in the range of 5,000. We are launching a project like immediate basis the 20:09 20 minutes, 9 seconds Bangalore project we've applied for RERA uh number and we are launching that very soon. the society is vacated and the 20:18 20 minutes, 18 seconds buildings are demolished and the construction is started also. So likewise they will try to uh launch one project every quarter next year. 20:28 20 minutes, 28 seconds Okay. One project per quarter. Yeah. 20:32 20 minutes, 32 seconds Yeah. Okay. And given what the previous participant also said because we have such a high GD value and I think this year also I think for the two projects 20:41 20 minutes, 41 seconds that are on the completion side there's 153 K of revenue that will come in the books but still we're just writing for 20% growth. 20:52 20 minutes, 52 seconds So why are we being because because because we did not have any new launch this year and that is because of the uh 21:01 21 minutes, 1 second environmental clearances being stored you know so the launches got delayed otherwise the profit margins are 21:09 21 minutes, 9 seconds handsome like we are making 200 cr pre- tax and uh the numbers are good enough and 21:16 21 minutes, 16 seconds because the new launches got delayed maybe the growth is deferred a bit not delayed will cover up for the deferment. 21:25 21 minutes, 25 seconds Okay. Okay. And in terms of your margins, I think there's been quite an expansion this quarter as well. How do you look at margins going ahead? 21:34 21 minutes, 34 seconds So we expect to stabilize margins between 18 to 20% fat level. 21:40 21 minutes, 40 seconds 18 to 20%. That that is the steady state level that we're expecting. 21:44 21 minutes, 44 seconds Yeah. Yeah. Yeah. Yeah. And between our green field and redevelopment project, what's the mix that we're targeting on a stable? 21:53 21 minutes, 53 seconds Yeah, we we target to have a same balance like 5050%. As of today, you can see my redevelopment is 35% and green 22:01 22 minutes, 1 second field is 65%. But all the upcoming projects if you can have a look at they are 5050%. So we target 50 balanced balanced uh portfolio. 22:11 22 minutes, 11 seconds Okay. Okay. All right. Okay. I wish you all the best. Thank you so much. Yeah. Thank you. 22:18 22 minutes, 18 seconds The next question is from the line of Par Patel from Patel Investments. Please go ahead. 22:25 22 minutes, 25 seconds Good afternoon sir. Thank you for the opportunity. Yes. 22:32 22 minutes, 32 seconds Yeah. So I just had a couple of questions. Uh first one is regarding the balance sheet. So we can see the net debt has been consistently on the lower 22:41 22 minutes, 41 seconds end uh of the financial statement. So we just wanted to know what is the comfortable level that we plan to go to 22:50 22 minutes, 50 seconds or if in future are we planning to take uh a higher debt or an upfront uh acquisition or are we going to stay on a you know asset like model only. 23:03 23 minutes, 3 seconds So we have a good land bank a good project lineup without any substantial de debt. So we are very sensitive to 23:10 23 minutes, 10 seconds that and would like to stay healthy this way with lesser debt and without much of a debt also we have a good lineup of 23:18 23 minutes, 18 seconds projects and we'll focus on launching the lineup that we have you know new projects. Yeah. 23:26 23 minutes, 26 seconds Got it. So so we plan to stay uh asset light and have a network. We yeah we we 23:33 23 minutes, 33 seconds are not interested in paying heavy interest and you know having a pressure on margin. No 23:41 23 minutes, 41 seconds got it sir. Uh secondly towards the execution side. So I believe we were applying for uh two additional OC's in the quarter. 23:51 23 minutes, 51 seconds Yeah we are we are targeting two OC's this last quarter. The Parliament Pearl project and the Malad Eden project. we are targeting to get OC this quarter. 24:03 24 minutes, 3 seconds Uh so will is there a possibility of revenue recognition in Q4 or will it spill over in the first quarter of 27? 24:12 24 minutes, 12 seconds Uh so part we follow the percentage completion method. So whatever has been sold till date and whatever percentage 24:20 24 minutes, 20 seconds completion is done till date we have we have already recognized and so whenever we receive OC we'll recognize the 100% 24:27 24 minutes, 27 seconds of the revenue for the sold unit and if there is anything left to be sold out that will be recognized thereafter. 24:37 24 minutes, 37 seconds Got it. So 3070 uh you have both the so 70 may recognition and then last after OC the 24:46 24 minutes, 46 seconds remaining 30% would come in is it that way? 24:49 24 minutes, 49 seconds Uh correct. So if the power project has completed percentage of 70% as of December then we have recognized 70% for the sold unit. 24:58 24 minutes, 58 seconds Okay. So next quarter whenever we recognize 100% for all the sold units and additional whatever we sell we recognize 100%. 25:09 25 minutes, 9 seconds Got it. So got it. And uh I following up on one of the previous uh participants question about the Bangor Nagar project. 25:16 25 minutes, 16 seconds So I just wanted to know what is the expected GDV from it and in uh Q Q1 or H1 FI27 25:24 25 minutes, 24 seconds how much do we expect as a as pre-sales and collections? So I don't think anything will happen but how much do we expect as pre-sales in uh the H1. 25:35 25 minutes, 35 seconds So total GDP for the project is about 225 crores and we expect about uh 25 25%. 25:44 25 minutes, 44 seconds At the launch 25 okay 25% at launch. 25:49 25 minutes, 49 seconds Yeah pre got it. Got it. And one one last question if I can squeeze it in and just 25:56 25 minutes, 56 seconds if for the sake of repetition because I I might have missed it. So I believe we have a heavy uh launch pipeline about 12 26:03 26 minutes, 3 seconds 12 odd,000 crores uh coming in in the next couple of years. So I just wanted to know how much of that are we going to 26:12 26 minutes, 12 seconds uh launch in FI27 and FI 28 if you could split it for me. 26:18 26 minutes, 18 seconds So FY27 minimum we are looking at launching projects with GDV worth 5,000 cr maybe 5 to 7,000 cr in that range. 26:30 26 minutes, 30 seconds Got it. 26:30 26 minutes, 30 seconds We're looking at to launch the Filmistan and Khane across these two projects only the GTV potential is 5,000 cr plus and 26:38 26 minutes, 38 seconds plus other miscellaneous 2 three redevelopment projects. So in the range of 5 to 7,000 cr worth of GDB projects we should launch next. 26:49 26 minutes, 49 seconds Got it. So FI 27 5 to 7,000 and FI 28 5 to 7,000. Yes. 26:56 26 minutes, 56 seconds Got sir and just s one last question on you have mentioned redevelopment. I just wanted to know what is the difference in 27:04 27 minutes, 4 seconds margin between a green field and redevelopment that we take. 27:08 27 minutes, 8 seconds So redevelopment uh redevelopment gives us a pat margin of 27:14 27 minutes, 14 seconds about see 17 to 19%. And green field gives us the margin of about 25 to 27%. 27:21 27 minutes, 21 seconds For film it will be about 30% you know fat margin I'm talking about. So on on 27:28 27 minutes, 28 seconds diluted basis we expect to achieve that 18 to 20%. 27:34 27 minutes, 34 seconds Got it. Got it. Got it. That that helps a lot. Thank you so much for answering my questions. Uh I wish you all the very best. Thank you so much. 27:43 27 minutes, 43 seconds Thank you. 27:45 27 minutes, 45 seconds Ladies and gentlemen, please press star and one to ask a question. 27:51 27 minutes, 51 seconds The next question is from the line of British an individual investor. Please go ahead. 27:57 27 minutes, 57 seconds Yeah. Hi. Uh good afternoon sir. How are you? Uh is my voice clear? Yeah, it is. 28:05 28 minutes, 5 seconds Okay. Uh my question is more towards the uh overall macro issues which we are facing and the headwinds which we are 28:13 28 minutes, 13 seconds facing in the real estate sector and as we are coming to the close of the year. 28:19 28 minutes, 19 seconds How do you see the market out there in the MMR region and especially which a huge number of launches which is planned 28:28 28 minutes, 28 seconds in the coming year. How do you see the demand scenario out there? 28:34 28 minutes, 34 seconds The demands have been consistent and the markets that we are in mature market prime location and we are in a safer 28:42 28 minutes, 42 seconds segment of aspirational premium projects. It is the the sales are not an issue like we've registered highest 28:50 28 minutes, 50 seconds sales last uh quarter as well and we see it being consistently growing up and 28:57 28 minutes, 57 seconds forward only from year on. The markets that we are existing in are much safer and mature and the projects that we have 29:04 29 minutes, 4 seconds planned are uh you know are is where the maximum demand is the audiences. These 29:11 29 minutes, 11 seconds are a safer band you can say. We are not going in for ultra luxury or anything uh 29:17 29 minutes, 17 seconds that is beyond affordable or big ticket uh projects. You know we are where the masses are present and where the sales 29:26 29 minutes, 26 seconds should not be an issue in mature markets and are you in the macro issues you know 29:34 29 minutes, 34 seconds global issues we've registered highest pre-sales in this last quarter three of this year 29:42 29 minutes, 42 seconds right that's a good news to hear sir that's for sure are projects like are marquee projects you know which people are looking 29:50 29 minutes, 50 seconds forward to for buying when we launch. 29:55 29 minutes, 55 seconds We are getting fantastic feelers and buzz about the C. 30:02 30 minutes, 2 seconds Great. Great. So you're not seeing any price pressures at this point of time, right? No. 30:09 30 minutes, 9 seconds Okay. And so another thing is on the commodity side we see a lot of price increases which are happened uh during 30:17 30 minutes, 17 seconds the period and there is a commodity cycle upcycle which is going on. Do you feel that it will have any impact on our uh profitability in the years to come? 30:28 30 minutes, 28 seconds So marginally maybe the construction cost may go up marginally but we recover to that extent from the price 30:36 30 minutes, 36 seconds corrections that we see because of the construction progress. 30:42 30 minutes, 42 seconds Okay. So you uh you are maintaining the profitability uh AITA profitability margins in the 30:51 30 minutes, 51 seconds years to come right uh in the range of 18 to 20% at the PAT level. 31:01 31 minutes, 1 second Hello ladies and gentlemen, the line for the management has been disconnected. Please wait while the man while I reconnect the management. 31:22 31 minutes, 22 seconds [music] 31:29 31 minutes, 29 seconds [music] 31:36 31 minutes, 36 seconds [music] 31:44 31 minutes, 44 seconds Ladies and gentlemen, the line for the management has been connected. Please go ahead, sir. 31:52 31 minutes, 52 seconds Yeah. Um so I was just asking you that yeah so the extent to which the construction cost goes up because of 31:59 31 minutes, 59 seconds commodity prices going up is recovered from the sale of inventory you know the prices keep on correcting as per the 32:06 32 minutes, 6 seconds project progress we recover that from the products from the goods inventory that's unsold. 32:14 32 minutes, 14 seconds Okay. Okay. Fine. So we keep uh we are maintaining the profit margins as stated 18 to 20%. Right. Yeah, 32:22 32 minutes, 22 seconds we sell only as per the progress of the project. We always keep the inventory balanced with the project progress. 32:30 32 minutes, 30 seconds Okay. Okay. Fine. Um I think yeah right. If you can just throw some light 32:38 32 minutes, 38 seconds on the two companies which you have planned, the new projects uh which you or the two companies which you have planned especially the the financing 32:47 32 minutes, 47 seconds company. what is your objective and how do you see uh what was the reason for getting into that field as well. 32:55 32 minutes, 55 seconds So these are you can call them diversifications like uh the financing company that we have formed is into uh 33:03 33 minutes, 3 seconds selling and facilitating of home loans for the buyers of uh units in our project itself. Say for an example every 33:12 33 minutes, 12 seconds day currently this year we are selling goods worth 800 to 900 cr out of which 6 700 cr is availed from home loan. So we 33:22 33 minutes, 22 seconds can have a substantial share of selling home loan to our own clients in our own projects you know handholding them and 33:29 33 minutes, 29 seconds which can also generate parallelly revenue for the company. So that becomes a win-win situation. the buyer gets 33:38 33 minutes, 38 seconds faster and better service and the company makes revenue out of selling home loans. 33:45 33 minutes, 45 seconds Okay. So this will be like a home financing company within the arcade. 33:50 33 minutes, 50 seconds It is a company coordinating home finance like it is we are not an NBFC ourselves but we are coordinating for the buyer to get home loan from HDFC. 34:02 34 minutes, 2 seconds Okay. So we are kind of an commission agent. Okay. Fair enough. Understood, sir. 34:07 34 minutes, 7 seconds Understood. That makes clear. Okay, that makes sense. Okay, that's it from my side. All the best, sir. Thank you. 34:16 34 minutes, 16 seconds Thank you. The next question is from the line of Heath Sha from Excel PMS. Please go ahead. 34:25 34 minutes, 25 seconds Uh yes, I would like to ask something about the film project. as you mentioned that it is a maki project and it 34:32 34 minutes, 32 seconds comprises almost 25 to 30% of the GDB uh that is going to generate in next 5 years. So me residing in that area I can 34:42 34 minutes, 42 seconds see that every second building is growing under redevelopment and there are multiple new projects coming up every year. Obviously Filmatan is film 34:51 34 minutes, 51 seconds is huge but what do you see that that uh will it be easy to safely basically sell 34:57 34 minutes, 57 seconds our inventory uh in such a crowded and competitive market like Gore because every every new uh every second building is under redevelopment right now. 35:09 35 minutes, 9 seconds So 95% of the projects that you see in that micro market are redevelopment of sub forms. Redevelopment under mada or 35:17 35 minutes, 17 seconds redevelopment under society or an SR such a huge land parcel without redevelopment is not available or 35:25 35 minutes, 25 seconds existing only in that micro market of gorea of west. There are lot many people who do not want to uh go for a 35:34 35 minutes, 34 seconds redevelopment project if they get an option. There is a big difference in the lifestyle of a person under redevelopment project 35:43 35 minutes, 43 seconds and the non-redevelopment project and the gentry the the affluent gentry who understands the difference they are 35:50 35 minutes, 50 seconds looking forward and in fact waiting for the project to be launched because uh there is a huge difference in a 35:58 35 minutes, 58 seconds non-redevelopment project and a redevelopment project. The socioeconomic mix only is different in both the 36:06 36 minutes, 6 seconds category. So in fact a project likean has zero competition. 36:12 36 minutes, 12 seconds Okay great. So okay so as you said that redevelopment projects are having competition. So excluding the filmistan 36:20 36 minutes, 20 seconds or or the you know bullen uh textile mills project those are the green field project. But talking about the other redevelopment projects that we are going 36:29 36 minutes, 29 seconds to take in next two to three years in in Malar Bura in let's say the Bangor Nagaran. So do you see competition coming from there because obviously they 36:38 36 minutes, 38 seconds are the redevelopment. So do you see that arcade has something there? Also we we we stand out because of the uh planning uh uh of the product. 36:48 36 minutes, 48 seconds You know we have an expertise in planning and knowing what the client wants and we go a step forward to plan 36:55 36 minutes, 55 seconds the product as per the requirement of the market and not uh going by run of the majority of the projects in redevelopment have mechanized parking. 37:05 37 minutes, 5 seconds is say just for an example we going for planning an all surface uh premium project an all surface parking project 37:13 37 minutes, 13 seconds you know so features like this set us apart even in redevelopment market and the track record of delivery before time 37:22 37 minutes, 22 seconds sets us apart and such features one by one added they set us apart from the competition 37:31 37 minutes, 31 seconds so I wouldn't say like we are the first but we are amongst the top 10% of the players in that micro market you know that the customers vouches for us. 37:43 37 minutes, 43 seconds Oh great. Thank you so much. That's all from myself. Thank you sir. 37:49 37 minutes, 49 seconds Thank you ladies and gentlemen. Due to time constraint we will take that as the last question for today. I now hand over the 37:57 37 minutes, 57 seconds conference to Mr. Amit Jan for closing comments. Over to you sir. 38:08 38 minutes, 8 seconds So I thank you for sparing your time for the call and uh all the best. 38:19 38 minutes, 19 seconds Thank you on behalf of Arit Developer Limited. That concludes this conference. 38:24 38 minutes, 24 seconds Thank you for joining us and you may now disconnect your