DLF Ltd — Q4 FY26

DLF Ltd Q4 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=hKYwJQ_Ksog Published: 1 hour ago

0:01 1 second Ladies and gentlemen, good day and welcome to DF Limited's Q4 FYI26 earnings conference call. We have with 0:09 9 seconds us today on the call Mr. Ashokiagi, managing director, DF Limited, Mr. 0:14 14 seconds Shiram Katar, vice chairman and managing director Rental Business, Mr. Akash Ori, managing director and chief business 0:21 21 seconds officer and Mr. Badal Bagri Group CFO DF Limited. As a reminder, all participant lines will be in the listen only mode 0:29 29 seconds and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please 0:37 37 seconds signal an operator by pressing star then zero on your touchstone phone. Please note that this conference is being recorded. I now hand the conference over 0:45 45 seconds to Mr. Badal Bagri. Thank you and over to you sir. 0:49 49 seconds Uh good evening and thank you all for joining this call today. Uh we are pleased to report a strong close to FY26 0:58 58 seconds wherein we have delivered robust earnings, healthy sales booking and strong cash generation 1:06 1 minute, 6 seconds supported by sustained demand momentum across our development business and continued strength of our annot. 1:15 1 minute, 15 seconds This performance reflects the underlying quality of our assets, the brand strength, prudent capital allocation and 1:23 1 minute, 23 seconds disciplined execution across a well diversified mix of development business. 1:30 1 minute, 30 seconds Some of the key operating and finan financial highlights will be uh we had a record collection of over 13,500 crores 1:38 1 minute, 38 seconds in this fiscal representing a growth of 15% year-over-year which led to healthy 1:44 1 minute, 44 seconds cash surplus generation of over 7,700 crores reflecting a growth of 25%. 1:52 1 minute, 52 seconds It's important to highlight that our collection efficiency across all our projects continues to remain extremely 1:59 1 minute, 59 seconds high vindicating the strong underlying demand of our products and high quality of sales. 2:07 2 minutes, 7 seconds Our net cash position as on as the end of FI26 tot 14,155 2:13 2 minutes, 13 seconds crores of which close to 11,200 crores are in the rare escro accounts signifying a robust balance sheet strength. 2:24 2 minutes, 24 seconds It's important to reiterate at this point of time that we as per our commitment we achieved zero gross debt 2:32 2 minutes, 32 seconds position in the development business in the last fiscal new sales booking for the year was in 2:40 2 minutes, 40 seconds line with our guidance and it stood at 20,143 crores led by successful sellouts of Pirana North in Gurram West Park in 2:49 2 minutes, 49 seconds Mumbai and very well supported by our super luxury offering in das 2:56 2 minutes, 56 seconds Q4 we had a sales of close to 3,967 crores which was primary led by dyas 3:04 3 minutes, 4 seconds it's important to highlight that in a particular quarter we were able to sell 32 apartments of das which by itself is 3:12 3 minutes, 12 seconds a remarkable feat we were able to meet our guidance despite of defil of couple of our 3:19 3 minutes, 19 seconds launches in the last fiscal year our rental portfolio stands at 50 million square ft and continues to operate at industry-leading occupancy of 95%. 3:31 3 minutes, 31 seconds In terms of financial highlights, our consolidative revenue stood at 2400 crores, 2450 crores with a gross margin 3:40 3 minutes, 40 seconds of approximately 46%. Net profit for the quarter was 1256 crores. 3:46 3 minutes, 46 seconds Overall revenue stood approximately 10,000 crores with a gross margin of 30 39% for the fiscal epida was over 3,000 3:55 3 minutes, 55 seconds crores and net profit on a reported basis was 4,48 crores at an exceptional 4:02 4 minutes, 2 seconds excluding exception the net profit for the financial year was 4256 representing a growth of 16%. 4:11 4 minutes, 11 seconds For DCCDL, I think we had another outstanding year with revenues close to 7,400 crores, a growth of almost 15%. 4:20 4 minutes, 20 seconds Aida at over 5,700 crores, a growth of 16% and net profit before exception of 4:27 4 minutes, 27 seconds 2726 22,726 crores, a growth of almost 38%. 4:33 4 minutes, 33 seconds In line with our stated commitment commitment of enhancing shareholder return combined with strong performance and 4:40 4 minutes, 40 seconds growing cash flows, it the board has recommended a dividend of rupees 8 per share for shareholders approval which 4:48 4 minutes, 48 seconds represents a growth of 33% year-over-year. 4:52 4 minutes, 52 seconds With this, I will hand over to Shiram to talk about the annot. 4:58 4 minutes, 58 seconds Uh good evening everyone. Uh I am pleased to share with you some of the highlights of Q4 and for the year FY26. 5:08 5 minutes, 8 seconds Uh sorry about that. So please go ahead. 5:27 5 minutes, 27 seconds Uh good evening everyone. Let me share with you the rental business highlights for Q4 mainly and some for the year FY26. 5:37 5 minutes, 37 seconds Uh the few highlights of Q4 are uh our uh atrium place our joint venture with 5:43 5 minutes, 43 seconds Hines is now fully leased. uh we have got during the year the uh occupation 5:50 5 minutes, 50 seconds certificate for three towers and the OC for the fourth quarter is expected in Q2 5:57 5 minutes, 57 seconds of FY27 though it is fully leased it's in the final stages of completion 6:03 6 minutes, 3 seconds uh the three malls uh Midtown Plaza is uh 95% leased and operational as we 6:11 6 minutes, 11 seconds speak uh Summit Plaza is 95 97% leased and we expect to open it most likely in 6:20 6 minutes, 20 seconds the second half of July. Prominard Goa, we have a line of sight of leasing to 6:26 6 minutes, 26 seconds the extent of 50%. We expect the mall uh to be completed sometime in the month of 6:32 6 minutes, 32 seconds August and uh the uh opening will be to 3 months thereafter. 6:41 6 minutes, 41 seconds uh we've had a exceptional growth in this uh year as uh Badl was mentioning we have a uh high growth in our EIDA or 6:50 6 minutes, 50 seconds noi as we call it and a 34 35% growth in PAT uh this has been rather exceptional 6:59 6 minutes, 59 seconds given the fact that some of our assets got completed in the previous year end of the previous year and their entire 7:07 7 minutes, 7 seconds income came because they were 100% lean in the current year. Uh I would request 7:14 7 minutes, 14 seconds you not to take that as a basis for the future because in our business to construct a property and to bring it to 7:23 7 minutes, 23 seconds market takes a cycle of four years and every quarter and every year it may not be the same. However, our four to five 7:32 7 minutes, 32 seconds year guidance uh remains intact that we will have mid teens growth in Noi and 20 7:38 7 minutes, 38 seconds to 25% growth on a as a CA caggr basis for the next four to five years. 7:48 7 minutes, 48 seconds Uh the uh offices business is uh uh uh is 7:55 7 minutes, 55 seconds strong. Our occupancies in the nonsezed areas are 98 to 99%. 8:02 8 minutes, 2 seconds Uh we have seized which are at about 88 89%. 8:09 8 minutes, 9 seconds However, the value of uh income lost because of vacancy is now down to about 8:17 8 minutes, 17 seconds 3 and a half% in the overall portfolio and our teams are working hard to continuously try and see how this gap 8:24 8 minutes, 24 seconds can be further met. Uh the good part is that all the newer properties where the 8:30 8 minutes, 30 seconds rental rates are higher are 99 odd% 100% or the least occupied and generating revenue. 8:39 8 minutes, 39 seconds Uh the recent uh uh issues related to AI 8:45 8 minutes, 45 seconds and then the war between Iran and US uh uh have not had any impact on the 8:52 8 minutes, 52 seconds portfolio per se. However, there are large tenants who are reviewing their 8:59 8 minutes, 59 seconds internal uh uh processes and internal decision making and there could be some deferral in their decision making 9:08 9 minutes, 8 seconds without in any way disturbing the structural strength of the business. 9:13 9 minutes, 13 seconds Uh the retail business continued to do well. Our ability to create experiences for the tenants and continuously improve 9:21 9 minutes, 21 seconds the quality of our retail offering continues and uh we see in the current 9:28 9 minutes, 28 seconds year a growth of about uh 10 to 11% in our uh incomes from the existing properties plus of course the the three 9:37 9 minutes, 37 seconds new malls that come up that will be the incremental growth. Uh if there is any question after this after a show finishes we'll be happy to answer that. 9:48 9 minutes, 48 seconds I think we're going to open questions. We can take the questions now. 9:54 9 minutes, 54 seconds Thank you very much. We will now begin the question and answer session. 9:58 9 minutes, 58 seconds Participants connected on webcast may click on ask a question tab available on the screen and then click on raise an option on zoom. Participants connected 10:07 10 minutes, 7 seconds through audio call may please press star and one on their phone. Ladies and gentlemen, we will wait for a moment while the question Q assembles. 10:22 10 minutes, 22 seconds We'll take our first question from Punid Gulati from HSBC. 10:27 10 minutes, 27 seconds Punit, please unmute your microphone and go ahead with your question, please. 10:32 10 minutes, 32 seconds Uh yeah, thank you so much uh uh for the opportunity. My first question is with respect to the uh cash flows first. Uh 10:40 10 minutes, 40 seconds there seems to have been some increase in marketing brokerage cost for the quarter and also overheads. Uh how should one think about these uh trends? 10:51 10 minutes, 51 seconds Uh okay marketing brokerage our brokerage payout is linked to collections and as in there are milestones basis which the uh payout happens. So if you recall there was a 11:00 11 minutes reasonably robust collection in the previous quarter and thereafter the brokerage becomes due and hence you have seen a slightly slight bump up in the current quarter on a sequential basis. 11:11 11 minutes, 11 seconds Uh so I would say you should consider that marketing is a normal phenomena and the overheads could be some year end 11:18 11 minutes, 18 seconds provisioning etc but the way you should look at is the overall number for the full year should be taken as a guidance. 11:23 11 minutes, 23 seconds I don't think so we will be our overheads are going to change any um further in fact it should be around the 11:32 11 minutes, 32 seconds similar numbers going forward as well but looking at quarter quarter can always be slightly misleading and from the taxation perspective also 11:40 11 minutes, 40 seconds should one think that you know you've been getting the benefit of tax refunds is that era largely over or so I think in the current quart in the 11:49 11 minutes, 49 seconds current year I think we had some accumulated losses in one of the two of the legal entities where we are now comfortable and we have recognized the 11:56 11 minutes, 56 seconds deferred tax assets uh in the last financial year and from a refund perspective uh no I 12:04 12 minutes, 4 seconds think there will be the amount which we are seeing in the current year I think we should continue to see those kind of uh flows coming through in the future as well 12:12 12 minutes, 12 seconds understood that's very clear uh the more important part is how should one think about the launch pipeline for this year 12:20 12 minutes, 20 seconds okay so punit I Akash I'm not Akash unfortunately is traveling so his connection is pachy. 12:27 12 minutes, 27 seconds Akash are you around? Okay. So Akash you want to talk about the launch pipeline. 12:33 12 minutes, 33 seconds Hey so PIT we've got a healthy launch pipeline uh almost about 20,000 crores and uh we've got some good Gam products. 12:41 12 minutes, 41 seconds We've got Mumbai. We've got Goa uh and we've got some restable of course we've got the ders. So we've got we've 12:49 12 minutes, 49 seconds got a good set uh uh and looking forward to that. Yeah. 12:52 12 minutes, 52 seconds So in gurugur what should we target which all projects should we focus on and and what is the progress on goa in 12:59 12 minutes, 59 seconds terms of approvals we okay go ahead go ahead go ahead go ahead no gura we've got two good projects uh 13:08 13 minutes, 8 seconds we've got the senior living and we've got the uh uh Hamilton 2 uh these are good products and uh Goa of course 13:17 13 minutes, 17 seconds approvals are all done we just there is a u a pil uh We don't want to create third party rights uh uh just just right 13:26 13 minutes, 26 seconds now. We're just going to make sure uh that we are clear and then we'll bring in Goa. But Goa, we're all ready to go. 13:33 13 minutes, 33 seconds And Priana any chance during the year last phase? No. No, not right now. Next year. 13:39 13 minutes, 39 seconds Okay. And and then Katy on the commercial side uh any projects that you think will get completed uh in FI28? 13:50 13 minutes, 50 seconds Yeah. So uh FYI28 the two new towers totaling to 3.5 13:57 13 minutes, 57 seconds million in downtown Taramani will get completed. 14:02 14 minutes, 2 seconds Okay. And and for 27 it's just the atrium where we should expect OC it's please don't call just the atrium atrium 14:10 14 minutes, 10 seconds is 3.2 2 million square ft and will generate about 700 crores of rent and in addition to that the three malls will 14:18 14 minutes, 18 seconds get completed and will be leased. The benefit of full rentals of uh all atrium 14:25 14 minutes, 25 seconds place tower 4 and for the three malls while the income acral will start this year the full income will come in the following year. 14:34 14 minutes, 34 seconds Understood. And what should be the exit rental for 27 for DCCDL separately and for the the the rest DF assets? 14:42 14 minutes, 42 seconds I don't know separately but I think the total should be about 8,200 crores. 14:50 14 minutes, 50 seconds Okay, that's very helpful. That's all from my side. Thank you so much and all the best. 14:55 14 minutes, 55 seconds Just so that right away it could have been a billion dollars at Iran US. 15:03 15 minutes, 3 seconds Sure. Monday. Thank you. 15:08 15 minutes, 8 seconds Ladies and gentlemen, before we take the next question, we would like to remind you to ask a question through the webcast, please click on the ask a question tab and then click on raise an 15:17 15 minutes, 17 seconds option on Zoom. Participants connected through audio call may please press star and one on their phone. 15:24 15 minutes, 24 seconds We'll take our next question from Nilang Ma from HSBC asset management. Please go ahead. 15:33 15 minutes, 33 seconds Uh good evening sir and thanks for the opportunity. I just wanted to check uh you know our pipeline which we show now 15:40 15 minutes, 40 seconds medium-term uh we showing around 60,000 KES of medium-term pipeline for launch and I just go back to our previous 15:48 15 minutes, 48 seconds presentation and go back to FY23 presentation for the airline we had 60,000 67,000 colors of you know 15:56 15 minutes, 56 seconds pipeline so in last three years the pipeline uh at least the future pipeline seems uh stagnating while uh obviously I 16:05 16 minutes, 5 seconds understand you've done launches and grown the business of B sales to the current level in last 3 years. uh but just wanted to think uh how how are you 16:14 16 minutes, 14 seconds seeing this uh number it uh one was uh when you look at you know uh yeah next few years at least maybe not next year 16:21 16 minutes, 21 seconds but why is this number not uh increasing are you not confident about the market or 16:29 16 minutes, 29 seconds so nang you know this more or less is more like a status update of the 114,000 16:36 16 minutes, 36 seconds I mean 1 lakh 14,000 cr pipeline that we had projected I think about 2 years back for a 5year cycle. So every quarter we 16:45 16 minutes, 45 seconds update on how much of that 114 has been launched and what is the to be launched pipeline. So basically it needs to be 16:54 16 minutes, 54 seconds connected to that 114 lakh 114 1 lakh 14,000 crores that we had said. 17:00 17 minutes Obviously this launch pipeline is not the end all. We have a we have like the next phase also identified but uh we'll 17:08 17 minutes, 8 seconds obviously unlock it at the pace at which the market can comfortably absorb and at a pace which does not overstrain our own 17:16 17 minutes, 16 seconds execution you know capabilities does that answer your question 17:25 17 minutes, 25 seconds lost the earlier point hello am I audible yeah please go ahead 17:34 17 minutes, 34 seconds Yeah. Uh yeah, just I think what Punita had asked in terms of launch pipeline for next year, I missed it. I uh so can 17:42 17 minutes, 42 seconds you just re uh uh Yeah. What's the number you're looking like and what's the pre-sale target for next year? 17:48 17 minutes, 48 seconds Okay. So nilang basically just to answer your earlier question also because I think you you had I mean the audio was 17:56 17 minutes, 56 seconds slightly poor about two years back we had laid out a pipeline of 1 lakh 14,000 crores of launches across a medium term 18:05 18 minutes, 5 seconds of 5 years so every quarter we give an update against that of how much has been cumulatively launched and how much is 18:13 18 minutes, 13 seconds the to be launched that's how the 60,000 cr number comes in. soil. It's not that this 60,000 crores is the only uh I mean 18:22 18 minutes, 22 seconds launch pipeline that we have. We have projects lined up even once this is done and this is being sort of phased out in 18:28 18 minutes, 28 seconds a manner where we believe the market can absorb at the at the at the you know the products that we are offering and 18:36 18 minutes, 36 seconds something which we believe that we can execute well to the point that Punit raised earlier just to reiterate what 18:43 18 minutes, 43 seconds Akash said next year we should definitely have one I mean in the current year 26 27 we should have one 18:51 18 minutes, 51 seconds big launch in DF left city for sure which should hopefully be in the in the 8 to 9,000 cr range if not higher. We 19:00 19 minutes should have this um the arbor senior living launch which we have spoken about. We should have the next launch 19:07 19 minutes, 7 seconds the next phase launch of west park and das will continue selling and hopefully at some stage Goa should also come into 19:15 19 minutes, 15 seconds play. So from a guidance standpoint we had mentioned I think last year as well that we believe that we will broadly 19:23 19 minutes, 23 seconds stay on this trajectory of a 20,000 crores of of of sales guidance and 19:31 19 minutes, 31 seconds ballpark about 9 odd,000 crores of new margin creation every year and I think we should hopefully be comfortably 19:40 19 minutes, 40 seconds placed on that trajectory. Obviously this guidance can go up if if there's demand you know and if if if the demand 19:47 19 minutes, 47 seconds sort of continues to be strong there is always an upward upward assessment for it and an upward upside risk to it but a 19:56 19 minutes, 56 seconds 20,000 number broadly in that trajectory I think we are comfortable 20:04 20 minutes, 4 seconds okay thank you sir thank you next question is from the line of Abin Sa from Jeff please go ahead 20:14 20 minutes, 14 seconds Hi uh so thanks for taking my question and uh just couple of details on uh the project pipeline that we were just 20:21 20 minutes, 21 seconds discussing. So on arbor senior living what is the size and timing that we are looking at and similarly if you can update us on the Dalia's experience sector. 20:32 20 minutes, 32 seconds So, so you know the arbor senior living should happen in the next I'd say in the next few months. It could be 1 month, 20:39 20 minutes, 39 seconds could be 3 months. But clearly these projects that I mentioned, all of them, you know, have a fair chance of of being 20:46 20 minutes, 46 seconds launched in this calendar year, you know, very comfortably. Delia's experience center, I'll defer to Akash. 20:53 20 minutes, 53 seconds Akash, what's the current timeline of the daily experience center being ready around Diwali? Around Diwali. 21:01 21 minutes, 1 second Yeah. 21:03 21 minutes, 3 seconds So we're doing something nice, something that uh uh you know has not been done so far at least uh uh presentation wise in 21:12 21 minutes, 12 seconds the country. So I think it'll be nice for everyone to see and we'll organize a uh definitely a show for you all also. 21:21 21 minutes, 21 seconds Yeah, the only risk with you is that by the time the experience center is commissioned, you may actually have sold out of large number of dyas. 21:34 21 minutes, 34 seconds I hope that happens because then then the you know the analysts analysts are never happy then they'll tell us daily too so we'll at least have something to 21:42 21 minutes, 42 seconds tell them during that show no but god is kind phenomenally well in das I I'm sure you know that this this 21:49 21 minutes, 49 seconds quarter alone we've done about 32 uh and plus two of the chameleas um um and uh 21:56 21 minutes, 56 seconds what has happened is right now that as far as this entire thing is concerned we've been able to create u uh demand 22:04 22 minutes, 4 seconds which is uh and in fact we've been able to do sales u in the entire country I don't think if we put all the developers 22:13 22 minutes, 13 seconds together I don't think anybody's crossed a double digit in in in the in the 100 cr sale mark uh but I think uh this 22:22 22 minutes, 22 seconds speaks volumes of the das and and the commitment that DF brings on the table on super luxury so this is huge uh as 22:29 22 minutes, 29 seconds far as anybody is concerned please judge us with a real estate thing but I think it's it's phenomenal for uh uh the 22:38 22 minutes, 38 seconds business and of course the industry as well uh and the demand people keep talking about it's pretty pretty large 22:46 22 minutes, 46 seconds uh very well uh accepted and we're doing about 100 plus as you know das is now touching u uh the new stock will be 22:54 22 minutes, 54 seconds about 135 crores per uh uh per sale yeah that's where we 23:03 23 minutes, 3 seconds Sorry if there's a background noise. Uh you sorry can you hear me clearly now? 23:10 23 minutes, 10 seconds Go ahead. 23:13 23 minutes, 13 seconds Yeah. Uh sir on uh the dividend side uh which has been increased this year to 8 rupees. Uh fully appreciate that. Uh 23:21 23 minutes, 21 seconds where do you see this setting given the current pace of FCF generation? 23:27 23 minutes, 27 seconds The dividend is driven by two pieces. A large chunk of this dividend is driven by cyber city's dividend to us frankly 23:36 23 minutes, 36 seconds and I I think broadly about 2/3 of this dividend has been is really cyber cyber city's dividend. Cyber City like a 23:44 23 minutes, 44 seconds normal proper operating rental company with its debt to NY at a very comfortable sub 3.5 level you know is 23:52 23 minutes, 52 seconds generating more FCF and will continue you know hopefully growing its own dividend cycle DF cash flows themselves 23:59 23 minutes, 59 seconds are growing so again we do not offer a dividend guidance we have never done it in the past but if you see the trajectory across the last four or five 24:07 24 minutes, 7 seconds years it has been one of continuing growth in dividend And if things stay well hopefully you know that that 24:15 24 minutes, 15 seconds trajectory should be maintained but again no guidance on that yet. Thank you sir. 24:22 24 minutes, 22 seconds Thank you. 24:24 24 minutes, 24 seconds Next question is from Samir Jasuja from PE Analytics Limited. Please go ahead. 24:33 24 minutes, 33 seconds Yeah. Hi. This question is for Akash. If I can get some sense on the weighted average per square ft sale of the last 24:41 24 minutes, 41 seconds 32 dyas and what was the uh first 10 units sold and the last 10 units sold. 24:47 24 minutes, 47 seconds So what's the real price appreciation that has happened over the last one and a half years and how much inventory are we left? 24:56 24 minutes, 56 seconds So we are now in inventory wise we just we've done about 60% already done and uh 25:03 25 minutes, 3 seconds the these 32 you can safely say they've done about almost 100 crores uh about 80 25:10 25 minutes, 10 seconds 90 odd crores because of the south and north. There's a south orientation and there's a north orientation. North looks 25:17 25 minutes, 17 seconds over the uh the lake park and everything else and the south looks uh as you know into the araval uh and there is a price 25:26 25 minutes, 26 seconds difference between the south and north which is about between 20 to 30 odd crores uh depending on the size and uh 25:33 25 minutes, 33 seconds uh plc uh and then of course we've got the uh uh north side as far as when we 25:40 25 minutes, 40 seconds started off what was about 60 crores is now 90 and what was about uh uh 75 25:48 25 minutes, 48 seconds crores is now about 110. So there has been a phenomenal growth but I don't want you all to kind of look at that right now at the moment uh because this 25:57 25 minutes, 57 seconds is just the beginning and I feel it's more to do with uh what the entire uh offering is going to be. Once you see 26:05 26 minutes, 5 seconds the experience center and see what we're actually up to, uh you'll be happy to kind of acknowledge the fact that super 26:12 26 minutes, 12 seconds luxury in India uh the definition that is super luxury is is a completely different one as far as uh uh this is 26:21 26 minutes, 21 seconds concerned. So uh uh you know das is something far more superior than the chameleas. If chimedas has made a 26:29 26 minutes, 29 seconds benchmark for the industry in the country, I think you'll all be very happy to see where the das is heading 26:36 26 minutes, 36 seconds to. Uh also uh as I said uh uh we recently hosted a dinner for all dia owners. Everybody but Mr. Shokiagi 26:45 26 minutes, 45 seconds attended it. Uh but it was good. It was phenomenal. uh and uh it was it was it was uh I won't call it a show of 26:54 26 minutes, 54 seconds strength but I think more more uh uh to do with building a camaraderie and actually uh uh you know a lot of people 27:03 27 minutes, 3 seconds had this whole thing about u uh you know they started to compare price points and all and that's what I wanted to bring out in the open that whoever boarded 27:12 27 minutes, 12 seconds this journey in the beginning uh obviously have benefited uh enormously with the kind of uh in the first stage. 27:20 27 minutes, 20 seconds So I think that's where we are Samir. 27:23 27 minutes, 23 seconds So just one follow-up question. We have a ready product like chameleas. So what is the price per square foot of a ready 27:31 27 minutes, 31 seconds product like chameleas compared to an under construction product like Dalia which of course is going to be far more superior but just the price difference 27:38 27 minutes, 38 seconds differentiation between a super luxury ready product and a under construction product on a per square foot basis. If you can uh throw some light on that please. 27:48 27 minutes, 48 seconds So a chameleia right now is trading now we talking about super or carpet. So apples to apples whatever. 27:57 27 minutes, 57 seconds Okay. So a chameleia today right now is trading between uh anything between 80 28:03 28 minutes, 3 seconds crores to about 150 crores. Uh uh now the good good thing is that the das has 28:11 28 minutes, 11 seconds caught up much faster than we expected it to which is um uh we thought we will achieve this target in about 4 years but 28:19 28 minutes, 19 seconds we've done it in about a year and a half uh in terms of per square foot realization uh and uh that's where I'm saying that 28:27 28 minutes, 27 seconds if you do apple to apple dailyas would be maybe almost at par at the chameleas today and now that is actually a pain 28:37 28 minutes, 37 seconds point uh for uh for me for chameleas because I feel there's a u good headroom there. I feel that we will be able to 28:45 28 minutes, 45 seconds achieve uh uh the next lot as far as uh uh chameleas is concerned or or the next 28:52 28 minutes, 52 seconds valuation will be uh I I I feel the next jump for Chameleas will be at least 25 cr rupees an apartment. uh but it's 29:01 29 minutes, 1 second going to be a progress driven by uh uh people who are wanting to live in immediately versus waiting out for about 4 years. 29:11 29 minutes, 11 seconds So just to uh I still didn't get that answer that if can I take chameleas at 1 lakh 20,000 on super and maybe Dalia's 29:18 29 minutes, 18 seconds at say 95,000 on super would that be a correct estimation? 29:23 29 minutes, 23 seconds You can take chameleas with one lakh 20 on super butas there are as I said there is a south dia and there's a north dia. 29:30 29 minutes, 30 seconds Yeah average right now you take about a lakh. Yeah. 29:38 29 minutes, 38 seconds Average you take about a lakh. 29:42 29 minutes, 42 seconds Okay. again the 20% differential right okay thank you so much 29:51 29 minutes, 51 seconds and Samir you know the interesting thing of course since apart from you most other people on this call would be from 29:57 29 minutes, 57 seconds Mumbai that these prices of chameleas or das today if you convert it to carpet they'll be carpet north of 150,000 30:05 30 minutes, 5 seconds 160,000 rupees a square foot frankly compared with the with the super lux products in in Mumbai you know be it 30:13 30 minutes, 13 seconds worldly or south Mumbai. So I mean Gorga pricing of the superu has frankly caught up if not exceeded that in South Mumbai. 30:22 30 minutes, 22 seconds No so sure we have exceeded Mr. Mr. 30:24 30 minutes, 24 seconds Thiagi I I don't want to say we exceeded but what I'm saying is that that we we definitely hit that level for sure. Absolutely. 30:31 30 minutes, 31 seconds Yeah. Yeah. No I reiterate we've ex exceeded. Thank you. 30:41 30 minutes, 41 seconds Our next question is from the line of Gupta. Please uh introduce yourself, your company name and go ahead with your question please. 30:48 30 minutes, 48 seconds Uh hi uh this is Akash from Numara. Uh am I audible? Yes. Yes, please go ahead. 30:55 30 minutes, 55 seconds Uh hi sir. Uh my first question is on the TCL's guidance of 200 to 220 billion 31:03 31 minutes, 3 seconds and this is the third year we are coming up with this uh guidance. So peers have 31:09 31 minutes, 9 seconds now gone to pre-sales of 300 to 350 billion and uh we are still uh at 200 to 31:17 31 minutes, 17 seconds 220 billion. So just wanted to know your thoughts as to when should we think about growth on the pre-sales front. 31:26 31 minutes, 26 seconds So my advice honestly will be for all the analysts that pre-sales is about the wrongest metric that you can use to 31:34 31 minutes, 34 seconds track us or frankly any of the substantial real estate players. I mean if you also look at you know um some of 31:42 31 minutes, 42 seconds the other you know players some of them are no longer chasing pre-sales you know frankly you know I mean we can do pre-sales of 50,000 crores a year also 31:51 31 minutes, 51 seconds frankly we have the land bank we have the demand but you know at what we have to do is chase margins chase cash flows 31:59 31 minutes, 59 seconds and there we believe our primary objective is chasing margins and cash flows and not chasing pre-sales frankly so we are comfortable with generating 32:08 32 minutes, 8 seconds this you know 9 to 10,000 crores of margin every year generating about you know this say 7 odd,000 7 to 8,000 32:16 32 minutes, 16 seconds crores of cash flow every year on the depo side and obviously building a pipeline for the future from next year 32:24 32 minutes, 24 seconds onwards we'll also enter the virtuous cycle of completions from a bookkeeping standpoint and you know frankly I mean 32:31 32 minutes, 31 seconds chasing joint venture deals or you know deals of lower margin products or even higher margin products beyond this. I'm 32:39 32 minutes, 39 seconds sure at some stage these numbers will grow. I am not saying it will not but we are not going to chase the 35,000 and 32:47 32 minutes, 47 seconds 30,000 numbers just for the heck of chasing them. If we have a great product, maybe we will we will achieve. 32:53 32 minutes, 53 seconds So there there have been years when we have been the highest in pre-sales for the year but that was not because we were chasing pre-sales. We were chasing 33:01 33 minutes, 1 second margins and we were we were basically riding on our products. Understood, sir. Uh thank you so much. 33:07 33 minutes, 7 seconds Also also Mr. Tagi if I can just add to what you said. I'd like to address the elephant in the room that uh uh most 33:14 33 minutes, 14 seconds importantly you all need to understand that the construction capabilities in our country are still limited. So you know everybody can chase their pre-sale 33:23 33 minutes, 23 seconds numbers but who's going to deliver on time? And also please understand with with the monies that you are taking from yourselves as long as 33:32 33 minutes, 32 seconds even if you're a consumer how would you like it if I make a commitment of 4 year delivery and deliver in 8 to 10 years. 33:38 33 minutes, 38 seconds So I think that is something that this company is absolutely cognizant of Mr. 33:42 33 minutes, 42 seconds Dagi's told you what our capabilities of sales are and and across the geographies we are invited to participate post our 33:49 33 minutes, 49 seconds Mumbai success uh panchula you already know uh a lot of companies and vies are 33:56 33 minutes, 56 seconds are wanting to uh partner with them so I don't think that is something that you all uh uh we need to prove anymore I 34:03 34 minutes, 3 seconds think we've got capabilities of selling we've got capabilities of making sure that we have the brand out there but uh the delivery is something which things I 34:12 34 minutes, 12 seconds think we are extremely extremely process of. 34:18 34 minutes, 18 seconds Understood sir. Uh sir my second question is on your uh Mumbai strategy. 34:23 34 minutes, 23 seconds I I think we are launching the second phase of West Park uh this year. Uh what after that how are we thinking about the Mumbai market going forward? 34:34 34 minutes, 34 seconds So West Park itself you know overall uh we is is a is a total I mean the west 34:41 34 minutes, 41 seconds park as defined currently is a is a total pipeline of in excess of 5 million square ft super area against which we 34:50 34 minutes, 50 seconds have so far launched 900,000 we should be launching the next phase of 800 odd,000 in this fiscal maybe the five or 34:57 34 minutes, 57 seconds 600,000 the the fiscal afterwards and change B we are also constantly looking how we can organically grow the West 35:05 35 minutes, 5 seconds Park geography and we are in conversations you know AC across with with other development options in and around West Park and obviously you know 35:14 35 minutes, 14 seconds frankly our Mumbai team and our joint venture partners we continue to look at any other interesting opportunities in Mumbai. So, so we are in Mumbai now for 35:23 35 minutes, 23 seconds good for sure. You know, clearly we would continue to be cautious and calibrated in Mumbai but we would be open to we are open to to to to creative 35:32 35 minutes, 32 seconds and nice opportunities in Mumbai and West Park itself should keep on going into a very strong core for us. 35:40 35 minutes, 40 seconds Understood. Uh and so my third and final question is on the cash balance. So we are already at 14,000 crores of net cash 35:49 35 minutes, 49 seconds balance and generating free cash flow of 8,000 crores. Uh once that RA uh balance unlocks uh what's the plan with the cash 35:58 35 minutes, 58 seconds because we are already sitting on the land bank. So any thoughts there and also on the revenue recognition front in FI27 how should we think about that? 36:08 36 minutes, 8 seconds Thank you. 36:10 36 minutes, 10 seconds Yeah. So Akash as you rightly pointed out of the 14,000 crores of cash balance almost 11,200 crores are sitting in RA 36:17 36 minutes, 17 seconds balance and all of these projects will start getting unlocked from 2728 onwards. That's when these cash will be available for us um different things as stated earlier. 36:29 36 minutes, 29 seconds Uh I think we have a three-pronged approach. Number one is increasing shareholder return from the cash perspective. Second we have an extremely 36:36 36 minutes, 36 seconds healthy pipeline in DF as well. uh mother mothership of building an activity business and there's a large 36:44 36 minutes, 44 seconds amount of capex which is already kind of uh committed and uh will be invested uh for building that portfolio. And third 36:53 36 minutes, 53 seconds is as you rightly pointed out we already have a reasonable share of land bank but we are always open for opportunistic 36:59 36 minutes, 59 seconds deal whereby we'll be able what will be margin accrative in our assessment. So that cash pool is always available available for reinvestments. 37:10 37 minutes, 10 seconds On the second question is it's linked to the first one itself. As you know our accounting policies are fairly conservative. We follow the uh the CCM 37:19 37 minutes, 19 seconds method which is completed contract methods. All our large projects starting from arbor will start getting delivered from 2728 onwards. So from there there 37:28 37 minutes, 28 seconds will be a virtual cycle of getting freer cash and also an extremely healthy margin which is going to get booked in 37:36 37 minutes, 36 seconds our P&L which we always share which is kind of getting acred uh and just waiting for the final delivery. 37:45 37 minutes, 45 seconds Understood sir. Thank you so much. 37:48 37 minutes, 48 seconds Thank you. Next question is from Kunal from CLSA. Please go ahead. 37:57 37 minutes, 57 seconds Hi, am I audible? Yes, please go ahead. 38:00 38 minutes Yeah, thanks for taking my question. Uh on the on the 200 billion guidance, uh how much have you budgeted in terms of contribution coming from das in FI27? 38:11 38 minutes, 11 seconds H so look I think this year the diaas sales was or about 5,000 crores and hopefully it should stay at this 5 to 6,000 crores next year as well. 38:23 38 minutes, 23 seconds Sure. Uh and then you have you said you have a launch pipeline of 200 billion for uh uh FI27. 38:30 38 minutes, 30 seconds So from that you expecting another 150 billion odd. 38:34 38 minutes, 34 seconds Yeah. I mean we expect that the 13 to 14 billion and 14 15 billion somewhere in that ballpark of sale will come through from that pipeline. 38:42 38 minutes, 42 seconds And and why is that? Because you know typically if you see the you know baring theas whatever you've launched uh so far have gotten sold at launch including 38:51 38 minutes, 51 seconds Mumbai projects. So just trying to understand your assumption that why 150 130 billion out of 200 billion of launch pipeline that you're expecting 38:59 38 minutes, 59 seconds the 200 billion may the assumption is that maybe because of approvals and all you may eventually may end up launching a subset of 200 you know we I think you 39:08 39 minutes, 8 seconds know I mean you're right that so far we have always sold 100% I mean daily is of course a calibrated sewing but we have 39:15 39 minutes, 15 seconds sold 100%. But I don't I don't think it's you know it's smart in today's world to bank on everything to be a 39:23 39 minutes, 23 seconds 3-day sale you know in that sense. So we do believe that of our launch pipeline the balance 13 to 14,000 crores should 39:30 39 minutes, 30 seconds come com comfortably for us to hit it to be on this 20,000 crores stretch. 39:36 39 minutes, 36 seconds Understood. Understood. And my uh second question was uh more on the land bank side. Uh you know I I you have articulated a plan for the next uh you 39:44 39 minutes, 44 seconds know few years in terms of a 25 million square feet pipeline but just wanted to understand on the on the on the land bank outside of your launch pipeline 39:52 39 minutes, 52 seconds right that especially the the one in the north and metros which is almost close to 40 million square ft. How marketable 40:00 40 minutes that is in terms of like say you know in terms of uh time horizon of next say 5 to 10 years. 40:07 40 minutes, 7 seconds No the most of this is marketable. Most of this is marketable. The north and metros pipeline most of this is marketable. It's a question of you know some of these pipelines may not get at 40:16 40 minutes, 16 seconds the best pricing today which hopefully they will get in the in the next two or three. In fact, some parts of Guranga also we believe it's it's it's it's more 40:24 40 minutes, 24 seconds it's better to wait 2 or 3 years to launch them versus today. I mean Pana when we launched versus had we launched it 6 40:33 40 minutes, 33 seconds years back there would have been a world of difference in terms of the of the monetization. So I mean what what is here this 137 million ft of balance 40:41 40 minutes, 41 seconds potential all of this is monetizable for sure you know in that sense in that sense this is all monetizable 40:50 40 minutes, 50 seconds the only thing is getting the right price point getting the right demand and as Akash mentioned marrying it to our execution capability. 41:01 41 minutes, 1 second And and lastly uh any update on Motinaga Delhi project the second phase of it. 41:08 41 minutes, 8 seconds Motine they you know we we are hoping that that that the government will do some infrastructure improvements as well 41:16 41 minutes, 16 seconds in you know in central and western Delhi and which may be the right more opportune time for launching the next phase. The first phase is almost now 41:25 41 minutes, 25 seconds completely sold out barring some small tail that is remaining. So I think it will happen but I don't think it's going to happen in this fiscal for sure. 41:34 41 minutes, 34 seconds But FI28 you would you would aspire for that. Yeah. 41:41 41 minutes, 41 seconds That's what Sure. Sure. Thank you so much and and all the best. Thank you. Bye. 41:46 41 minutes, 46 seconds Thank you. Next question is from Pere Kazzy from Noama Group. Please go ahead. 41:54 41 minutes, 54 seconds Uh hi thanks for taking my question. Uh so couple of questions for Sriram sir. 41:59 41 minutes, 59 seconds One uh of the four blocks which are under construction in Guro DT5 to8 uh what is the construction timeline? Uh 42:08 42 minutes, 8 seconds also same for the mall that we are making in Gura. Uh and the second question is of uh both DT5 to8 in Gura 42:17 42 minutes, 17 seconds and uh the block 4 to 5 in Chennai. What is the pre-leasing status considering that are in our existing portfolio anyway we don't have much to lease? 42:26 42 minutes, 26 seconds Thank you. 42:28 42 minutes, 28 seconds Yeah. So, uh let me start with the downtown Gura phase 2. Downtown Gura 42:35 42 minutes, 35 seconds phase 2 is an integrated development of 7 and a2 million square ft out of which 42:41 42 minutes, 41 seconds 2 million is the mall and 5 1/2 million is offices split into four towers as you 42:47 42 minutes, 47 seconds rightly mentioned 5 6 7 and 8. Out of this tower 7 which is 2.2 million is nearly fully leased. So now we have 42:57 42 minutes, 57 seconds released tower five and uh uh six uh and they are going to uh they are in the 43:04 43 minutes, 4 seconds process of being leased. Uh the finishing timelines are later part of 28 early 29. 43:12 43 minutes, 12 seconds This at the end of it will still leave downtown 1 which is in between where we have the multi-level car park today 43:20 43 minutes, 20 seconds which is in between ambiencece and uh tower 2 3 and 4 and that's going to be an iconic uh tower that we will start 43:30 43 minutes, 30 seconds the construction about 2 and 1/2 years from now. 43:33 43 minutes, 33 seconds As far as uh u uh downtown Taramani is concerned, the 3.5 million uh uh 43:42 43 minutes, 42 seconds construction is progressing well. Uh we are reasonably confident of its completion in Q2 of the 43:52 43 minutes, 52 seconds next fiscal year. Uh it uh we have made certain project changes there because of 43:59 43 minutes, 59 seconds uh we created a central atrium between tower 1 2 3 4 and 5 and that's coming out to be a very beautiful place. Uh out 44:08 44 minutes, 8 seconds of 3 12 million we have already leased about uh 500,000 and the balance leasing is uh on its way. 44:20 44 minutes, 20 seconds Sure sir. Thanks and all the best. Thank you. Thank you. 44:27 44 minutes, 27 seconds We'll take our next follow-up question from Nilang Ma from HSBC Asset Management. Please go ahead. 44:38 44 minutes, 38 seconds Nilang. Oh, thanks Nil. 44:40 44 minutes, 40 seconds Yeah. Can you please use your handset more? Your audio is not very clear. Nilak. Hello. Am I audible? 44:49 44 minutes, 49 seconds Yes, please go ahead. Hello. Yes nam we can hear you. 44:55 44 minutes, 55 seconds A question for Mr. Shiram. Uh sir on the Yeah. Uh question for Mr. Shiram please go ahead. 45:07 45 minutes, 7 seconds Yeah. Uh no just wanted to get us some sense on uh you know the pending uh uh 45:14 45 minutes, 14 seconds area we have on ACZ. What's the house that being deployed or rented out? 45:18 45 minutes, 18 seconds That's one. Second is based on the micro markets in which we are uh if you could give some color on you know supply and 45:26 45 minutes, 26 seconds absorption uh and also the rental trends what you're seeing uh yeah 45:33 45 minutes, 33 seconds so uh uh as a concept is not something which is growing it is 45:40 45 minutes, 40 seconds uh showing a declining trend so out of our total portfolio of SEZ of about 167 45:48 45 minutes, 48 seconds million We have already converted about four odd million into uh non-processing areas uh including a small portion which we have even denotified. 45:59 45 minutes, 59 seconds Uh however there the existing tenants who have not yet exhausted their ATI tax 46:08 46 minutes, 8 seconds uh incentives continue to take SEZs uh on on leans. uh 46:15 46 minutes, 15 seconds the overall vacancy is about 10 odd% out of which the lowest vacancy is in the 46:22 46 minutes, 22 seconds cyber city in Gura and then we've got about 8 9% vacancy in Silokra or 7% 46:29 46 minutes, 29 seconds vacancy between Silokra and Chennai and Hyderabad is at about 17 18 20% uh 46:37 46 minutes, 37 seconds vacancy uh as far as the rentals is concerned uh the uh we are slowly tried to close the 46:45 46 minutes, 45 seconds gap between the say in cyber city bug between the cyber city rentals and the SCZ rentals for the new take up and that 46:54 46 minutes, 54 seconds gap has now come down to within 10 12%. 47:00 47 minutes Uh Chennai we continued to get marginal rental increases. Uh Silukra we continued to get marginal increases and so is the case with Hyderabad. 47:11 47 minutes, 11 seconds Sure. 47:16 47 minutes, 16 seconds And could you give some color on supply as well uh in these markets and absorption which has happened so broadly? Yeah. 47:24 47 minutes, 24 seconds So, uh, Muna, uh, I believe we've set a certain standard and, uh, quality of the 47:31 47 minutes, 31 seconds office space and, uh, we we believe this is the port of first call for any global blue-blooded marquee company that comes 47:39 47 minutes, 39 seconds in, especially the GCC. Uh, we've just completed uh, leasing the entire tower 47:45 47 minutes, 45 seconds of downtown of of Atrium Place, Tower 4 to a single tenant from the US. uh we uh 47:54 47 minutes, 54 seconds uh believe that with the quality of offering that we have and what we create in terms of the workspace solutions and 48:02 48 minutes, 2 seconds spaces uh we shall continue to be a leader here. 48:08 48 minutes, 8 seconds Uh to some extent this will also be reflective in Chennai where we have now a fairly large operating portfolio 48:16 48 minutes, 16 seconds exceeding 10 million square ft going up to about 14 15 million square ft. uh we also created a benchmark about two years 48:24 48 minutes, 24 seconds ago in crossing a rental of 100 rupees in Taramani. uh the uh 450 500,000 that 48:33 48 minutes, 33 seconds we have leased in tower 4 and five I must share that the top to floors which 48:40 48 minutes, 40 seconds have a 360 view of the city and the sea have been leased at uh 145 to 150 rupees 48:49 48 minutes, 49 seconds and we expect a average rental realization of between 125 130 rupees Thank you sir. 49:02 49 minutes, 2 seconds Thank you ladies and gentlemen. We'll take that as the last question for today. I now hand over the call to Mr. 49:08 49 minutes, 8 seconds Ashokiagi for closing comments. Over to you sir. 49:13 49 minutes, 13 seconds So thank you once again for joining us on this year ending call. You know as we as Badal and then Sham mentioned both on 49:21 49 minutes, 21 seconds the Devco and the Renco pieces you know we continue to have a strong story. In fact the rental business with the 49:29 49 minutes, 29 seconds commissioning of the two downtowns and the full throttle you know going on rental of Atrium Place is actually 49:37 49 minutes, 37 seconds poised to see a very very you know exciting phase of growth on the Devco. 49:43 49 minutes, 43 seconds you know I could sense some degree of you know expectation that I should have given a higher pre-sales than 20,000 but 49:51 49 minutes, 51 seconds frankly I think that's I would still encourage that we need to not only focus on pre-sales as a as a metric but on the 49:59 49 minutes, 59 seconds margins and cash flows and I think once you know that entire sustainability comes into play hopefully you know the pre-sales number will will grow 50:08 50 minutes, 8 seconds organically that that is very clear we have a reasonably strong launch pipeline and das continues to be the the base for our for for our entire grow growth prospect. 50:20 50 minutes, 20 seconds Our cash generation would continue to be extremely strong as should hopefully be our our dividend trajectory and our 50:28 50 minutes, 28 seconds continued focus on you know on the entire EHS and governance pieces you know continues to be extremely extremely 50:35 50 minutes, 35 seconds strong which at times leads to a to a to a more delayed start when we launch a new project you know because we just go 50:42 50 minutes, 42 seconds through such a such an exhaustive checklist of our own but I think all in all we are poised for a strong 26 27 50:49 50 minutes, 49 seconds coming on the heels of a strong 2526 and look forward to connecting with all of you through through the year. Thank you. 50:58 50 minutes, 58 seconds Thank you members of the management team. On behalf of DF Limited, that concludes this conference. Thank you for joining us and you may now exit the meeting. 51:07 51 minutes, 7 seconds Thank you.