Eldeco Housing And Industries Limited — Q4 FY26

Eldeco Housing And Industries Ltd Q4 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=S-mTg7AtXwA Published: 3 weeks ago

0:02 2 seconds Ladies and gentlemen, good day and welcome to LDico Housing and Industries Limited Q4 and FY26 earnings conference 0:09 9 seconds call. As a reminder, all participant lines will be in the listen only mode and there is opportunity for you to ask questions after the presentation 0:17 17 seconds concludes. Should you need assistance during the conference call, please sign an operator by pressing star then zero on touchstone phone. Please note that 0:24 24 seconds this conference is being recorded. I now conference over to Mr. I'm back from ENY. Thank you and over to you Mr. Bishek. 0:33 33 seconds Thank you. Thank you everyone for joining us on the call. Before we proceed to the call, let me remind you that today's discussion may contain 0:41 41 seconds forward-looking statements that may involve known and unknown risks, uncertaintities, and other factors. It must be viewed in conjunction with a 0:49 49 seconds business risk that could cause future results, performance or argument to differ significantly from what is expressed and implied by such 0:58 58 seconds forwardlooking statements. Please note the results and presentation are available on the exchanges. Should you need any assistance to receive them, you 1:07 1 minute, 7 seconds can write to us and we'll be happy to send them over. Today on the call we have the senior management of Elder 1:14 1 minute, 14 seconds Housing and Industries Limited which is represented by Mr. Auraj chairman and managing director Mr. Manish JSwar group 1:23 1 minute, 23 seconds CEO Mr. Rajiv Kurana group vice president accounts and tax session we will begin with the highlights of the 1:31 1 minute, 31 seconds quarter followed by Q&A. Now I would like to hand over the call to Mr. Pankal Daj for his opening remarks. Over to you sir. 1:42 1 minute, 42 seconds Thank you. Good afternoon everyone and thank you for joining us today. So FY26 1:49 1 minute, 49 seconds has been a milestone year for EHI with record bookings and collections, a standout launch and most importantly a meaningful expansion of our growth 1:57 1 minute, 57 seconds pipeline that significantly enhances our medium-term visibility. 2:02 2 minutes, 2 seconds During the quarter, we strengthened our growth pipeline by adding nearly rupees 2,000 crores of gross development value GDB through three prime land parcels in key growth corridors of Lacno. 2:13 2 minutes, 13 seconds Two of these land passes are secured via local authority auctions enabling lower risk and faster monetization. 2:21 2 minutes, 21 seconds Combined with the steady business at Tedle Solano Gardens, this provides us with a strong and visible runway for sustained growth over the coming years. 2:29 2 minutes, 29 seconds Importantly, this growth is supported by healthy demand and strong execution demonstrated in the year. 2:36 2 minutes, 36 seconds Coming to our operational performance in Q4 FY26, we recorded booking value of rupees 382.7 2:43 2 minutes, 43 seconds crores and area booked of 5.13 lakh square ft. 2:49 2 minutes, 49 seconds For the entire FY26, the booking value stood at rupees 744 kores of up 120% yearonear with area 2:59 2 minutes, 59 seconds booked of 10.77 lakh square ft up over 100%. 3:06 3 minutes, 6 seconds collections remained robust. In Q4 FY26, collections were rupees 96.5 crores and 3:13 3 minutes, 13 seconds for FY26 the collections were rupees 352.1 crores up nearly 39% yearonear 3:21 3 minutes, 21 seconds reflecting steady improvement in cash flows. 3:26 3 minutes, 26 seconds On execution, the construction spend was rupees 177.7 crores in FY26, up 14% 3:32 3 minutes, 32 seconds yearon year. We delivered 280 homes during the year. The delivered area of 2.78 life square feet. 3:41 3 minutes, 41 seconds A key highlight for us was the launch of Lake of Salano Gardens project which saw an excellent response with 343 units 3:48 3 minutes, 48 seconds sold out of 433 units launched translating into booking of over 384 cr rupees in the launch phase itself. 3:59 3 minutes, 59 seconds FY26 total income stood at rupees 175.7 crores. Abita was rupees 41.5 crores and 4:07 4 minutes, 7 seconds pat profit after tax was rupees 24.3 crores. 4:13 4 minutes, 13 seconds Going forward our focus remains on one scaling execution across ongoing projects two driving correction through timely milestones construction 4:21 4 minutes, 21 seconds milestones and handovers and three converting our expanded pipeline into launches. 4:28 4 minutes, 28 seconds To conclude, we believe that the combination of growing demand, steady execution and a robust project pipeline positions ESL well for the next phase of 4:37 4 minutes, 37 seconds growth. I thank you all for your continued support. We will now open the floor for questions if there are any. 4:45 4 minutes, 45 seconds Thank you very much. We will now begin the question answer session. Anyone who wish to ask question is star N1 on the 4:52 4 minutes, 52 seconds touchstone telephone. If you wish to remove yourself from the question queue, you have a star and two. Participants are requested to use handsets while 5:01 5 minutes, 1 second asking a question. Ladies and gentlemen, we will wait for a moment while the question to assemble. 5:08 5 minutes, 8 seconds We have first question from the line of Ashal from AB family office. Please go ahead. 5:17 5 minutes, 17 seconds Thank you. Thank you for uh giving me the opportunity. Uh first of all I wanted to uh talk about Salano garden. 5:25 5 minutes, 25 seconds So I think uh these blocket development usually carry a higher margin. 5:31 5 minutes, 31 seconds So can you uh quantify what would be the margin profile as compared to the other projects? 5:37 5 minutes, 37 seconds Uh you're right about uh plotted developments carrying higher margins. So the margins are uh very different across 5:45 5 minutes, 45 seconds various uh asset classes. So uh group housing has a different margin. Um uh horizontal development with villas is 5:53 5 minutes, 53 seconds something else and uh completely plotted is obviously the the margins are uh the 6:01 6 minutes, 1 second highest. Solano garden is a combination of all the asset classes. Let me clarify it's not only plotted. It has some vars. 6:10 6 minutes, 10 seconds It has um uh group housing plots which means vertical development apartments which we're going to uh launch later and it 6:18 6 minutes, 18 seconds also has a small commercial component where we are going to build some local uh shopping. In terms of margins ra can 6:26 6 minutes, 26 seconds you give uh an idea of average margins in plotted or horizontal developments 6:33 6 minutes, 33 seconds margins are basically varied from 50 to 60%. If I say that yeah and in the range of I think almost 6:43 6 minutes, 43 seconds in the range of 50 to 60 but just to clarify Rashid the bookings which have happened are not only plotted they have a combin there are lower margin product 6:52 6 minutes, 52 seconds there also which is vars is also part of that 380 odd cr. 6:58 6 minutes, 58 seconds Sure. Sure. So uh so on a consolidated basis what would be the profile uh basis 7:05 7 minutes, 5 seconds the current booking the margin per sale do you have that number approximately 7:13 7 minutes, 13 seconds if we talk about this year itself we basically no talking about solano gardeners specifically 7:21 7 minutes, 21 seconds sorry it will in the range of 50 to 60% all the number including no not including I think you should please take it at about uh 35 to 7:29 7 minutes, 29 seconds 40% including varsage 50 to 60% as a plotted component but the weighted average will be 3540 7:37 7 minutes, 37 seconds sure that's helpful and uh on a macro basis so uh looking at the current 7:44 7 minutes, 44 seconds pipeline the mix and uh can you help us understand what would be the likely 7:50 7 minutes, 50 seconds margins for uh the year to come for the years to come. So for the years 7:57 7 minutes, 57 seconds to come uh a lot of our pipelines and 28 sorry uh just the next year 27 28 yeah 27 and 28. 8:06 8 minutes, 6 seconds So Ashish it mostly depends on which uh projects are getting recognized for revenue in that particular year and I 8:14 8 minutes, 14 seconds believe that next year our main recognition will happen in Imperia 2 project which is a high margin project. 8:20 8 minutes, 20 seconds So I think we'll see a bump in our uh margins there and uh beta margin should be in the range about 30 35% profit 8:29 8 minutes, 29 seconds after tax should be about 25% next year but that will be because of imperial 8:36 8 minutes, 36 seconds okay that is that's helpful and uh so uh regarding the launches so 8:44 8 minutes, 44 seconds how do we see the uh revenue visibility over let's say next two three years I mean if you can talk about the plans in 8:52 8 minutes, 52 seconds agree. So 2 3 years is uh too early uh in terms of revenue recognition because uh the life cycle of a real estate 8:59 8 minutes, 59 seconds project is typically four to six years and we tied up these massive projects in the context of our balance sheet in the 9:07 9 minutes, 7 seconds last uh 5 to 6 months they will enter the we are in the process of designing them then there will be the approval 9:15 9 minutes, 15 seconds process and sometime later this financial year they should get lost but over the next five six years uh I think that 9:23 9 minutes, 23 seconds Given what we have already launched and given the value of unsold inventory that we have and the third category is projects which are yet to be launched 9:32 9 minutes, 32 seconds some breakup is there in the presentation. All of them put together should have a value of about 4,000 cr rupees. Now that will get recognized on 9:41 9 minutes, 41 seconds completion as and when the project get completed over the next five to six seven years. Now difficult to say which how much gets completed but over the 9:49 9 minutes, 49 seconds period this is the number we're looking at. 9:53 9 minutes, 53 seconds Got it. Wait. And this is a land parcel that we already have. 9:58 9 minutes, 58 seconds Correct. Correct. Yeah. I think that's helpful. Fine. I'll just get back into the Thank you sir. Thank you. 10:06 10 minutes, 6 seconds Thank you. The next question from the line of knowit Singh from counter cyclic PMS. Please go ahead. 10:15 10 minutes, 15 seconds Hi sir. Thank you for this opportunity. 10:17 10 minutes, 17 seconds Uh I would like to understand how much of revenues in Q4 came from Imperia phase 2 10:25 10 minutes, 25 seconds can you help with that almost if I say that in India phase 2 is 10:33 10 minutes, 33 seconds almost out of 60 groups around 47 which is almost 70 to 80% is from the zoo. 10:42 10 minutes, 42 seconds So uh why have the margins in Q4 uh fallen because Imperia phase 2 was a high margin project because I guess the 10:51 10 minutes, 51 seconds sun costs were uh uh covered in imperial phase from construction itself. 10:57 10 minutes, 57 seconds So and what was the other expense which doubled in Q4 to about 20 CR? 11:07 11 minutes, 7 seconds Yeah. Yeah. 11:10 11 minutes, 10 seconds Basically in this here we have some kind of a one time expense like we have basically right of GST 11:17 11 minutes, 17 seconds input close to 11 11 cr which is expense in this year itself and 11:24 11 minutes, 24 seconds there are some expenses of earlier budget which came up in this year which we have to basically bear that. So 11:31 11 minutes, 31 seconds around 14 cr is 110 kind of expense in the other expenses which is hitting our terms of 11:39 11 minutes, 39 seconds for this quarter and the financial year that is the reason for it. Yeah, 11:46 11 minutes, 46 seconds got it. So how much of uh the total revenue of Imperia phase 2 I mean can 11:53 11 minutes, 53 seconds the company realize say in FY27 and uh what should be the value of unsold inventory uh in Imperia phase 2 12:02 12 minutes, 2 seconds currently Imperia phase 2 next year will be on the basis of the delivery itself but uh 12:11 12 minutes, 11 seconds close to you can say around and 140 cr is the number of 12:19 12 minutes, 19 seconds okay yeah for next year. Yeah. 12:26 12 minutes, 26 seconds So uh but you do understand me that these are projections like one does not know when exactly it will happen but uh according to our projections about 130 12:35 12 minutes, 35 seconds 150 between that number it should be the recognition of imped next year. 12:41 12 minutes, 41 seconds Got it. So uh I have another thing that I want to understand. So we delivered 280 homes this year. Uh but our revenues 12:49 12 minutes, 49 seconds are about 140 cr. So uh we recognize revenues uh on delivery of homes or uh I 12:58 12 minutes, 58 seconds mean how does the revenue recognition work? 13:01 13 minutes, 1 second We basically we basically uh follow the NDS 115 which clearly proves the control has been passed with the customer. Once 13:09 13 minutes, 9 seconds we are ready with our uh dispatch uh in terms of giving position then we recognize 13:18 13 minutes, 18 seconds it. So 280 homes which were delivered this year uh is it that uh I mean the 13:24 13 minutes, 24 seconds upon delivery of those 140 CR or the top line this year that was realized which is about uh 165 CR. 13:33 13 minutes, 33 seconds Mhm. Yeah. Yeah. 13:36 13 minutes, 36 seconds Got it. Uh my last question would be regarding any uh projects uh which have 13:43 13 minutes, 43 seconds planned handovers in FY27 and FY28. If you can help us understand and uh the uh 13:51 13 minutes, 51 seconds GDV or the revenue potential of those projects in 2 continues the positions will continue and I we have already shared the number with you for 2627. 14:02 14 minutes, 2 seconds The next big project which will enter the pool of operation will be latitude 27. So I think sometime uh later this 14:10 14 minutes, 10 seconds year hopefully or maybe early next year we will start that. The total uh value of that particular project is about 278 cr rupees. 14:22 14 minutes, 22 seconds All right. Thank you very much. I wish you all the best. Thank you. 14:27 14 minutes, 27 seconds Thank you. Reminder to all the participants that you press star one to ask a question. Reminder to all the participants that you press star one to ask a question. 14:38 14 minutes, 38 seconds We have next question from the line of Rohan Sha from S RS Ventures. 14:44 14 minutes, 44 seconds Thank you and over to you. 14:47 14 minutes, 47 seconds Thanks for your opportunity sir. uh the first phase of uh Solano gardens saw strong response approximately uh 384 to 14:56 14 minutes, 56 seconds 350 K booking range. So uh how should we think about absorption for the remaining inventory in upcoming phases? 15:05 15 minutes, 5 seconds So as far as the horizontal development goes I think uh so the project as I earlier explained is a combination of horizontal and vertical development. 15:14 15 minutes, 14 seconds Horizontal is property and uh villas and vertical is group housing which is basically multi-tory apartments there. 15:22 15 minutes, 22 seconds So in the whole planning we had left uh four parcels for uh multi-story departments to be launched later as we 15:30 15 minutes, 30 seconds have done the same we followed the same format format in Elico city earlier where we did the ported and vars uh 15:37 15 minutes, 37 seconds first and then it was followed by uh launches of group housing projects which are continuing like latitude 27 skywalk 15:44 15 minutes, 44 seconds etc even these are all part of the elico city project the mother project so in the mother project of Solano gardens So 15:52 15 minutes, 52 seconds about 75 to 80% of the horizontal development uh component the villas and plots has been absorbed and launched. We 16:00 16 minutes are letting uh I think towards the in another couple of quarters or towards the end of the year we will be launching 16:08 16 minutes, 8 seconds the first of our uh multif apartment projects there and then depending on the response we will keep uh bringing more 16:15 16 minutes, 15 seconds parcels to the market after that. It will be a multi-year project. 16:23 16 minutes, 23 seconds Got it sir. That's helpful. That's helpful. Uh so one more question. Uh uh it's about actually average realization. 16:29 16 minutes, 29 seconds Uh actually it has sharp moved up you know around 6,500 square ft² range. Uh do you see further pricing headroom in 16:38 16 minutes, 38 seconds Laknau or is it or you know is growth now likely to be driven uh more by volumes? 16:46 16 minutes, 46 seconds So uh your per square foot realization also depends on um your product mix. So it's what we presenting here is nothing 16:55 16 minutes, 55 seconds but a weighted average of our sale prices across projects and divided by the area across projects. So in the 17:02 17 minutes, 2 seconds coming years the new projects that we tied up are more citycentric and hence uh the per square foot pricing 17:10 17 minutes, 10 seconds will be little higher and so this is there going to be an upward movement of this which does not mean that there will be higher margin but it's just that 17:19 17 minutes, 19 seconds they're more they're not on the outskirt as much as the some of the current wallets are. So some of the launches like Trinity already is at about 8 9 10 17:28 17 minutes, 28 seconds 11 that's the range which is higher than your weighted average and the new project uh projects which have been tied 17:35 17 minutes, 35 seconds up are also in that range. So generally we will see that in the case of Elco housing particularly per square foot 17:44 17 minutes, 44 seconds pricing that we will be reporting will probably be higher in the coming years. 17:48 17 minutes, 48 seconds But as a general comment, yes, prices uh are kind of stagnating of course because they have risen quite a lot. 17:58 17 minutes, 58 seconds Got it. That's helpful. So I have a couple of questions as the I'll join with you. Thank you. Yes. Thank you. 18:07 18 minutes, 7 seconds And next question from the line of schooler and individual investor. Please go ahead. 18:14 18 minutes, 14 seconds Hi. Um can you hear me? Hear me? Yes, Ros. 18:20 18 minutes, 20 seconds Yeah, congratulations on the exceptional operating performance. 18:25 18 minutes, 25 seconds Um, uh, my question was on in India phase 2. Um, you know, I understand there was an the total sales value of 18:34 18 minutes, 34 seconds the project is around 300 crores and they recognized around 47 cr this quarter. 18:41 18 minutes, 41 seconds uh I was believing that most of the 300 cr will get recognized in next two or three quarters but now uh you mentioned 18:50 18 minutes, 50 seconds that uh during the year we expecting around 130 140 k of recognition so just wanted to understand um is there 18:58 18 minutes, 58 seconds something I'm missing or is it that the deliveries will take more time you can't really predict know when a 19:06 19 minutes, 6 seconds customer will come over for possession if the project is subst substantially complete. We got completion certificate. 19:13 19 minutes, 13 seconds I think that's the main thing. So the revenue recognition whether it happens in real estate in one quarter or next quarter is going to majority of it is 19:20 19 minutes, 20 seconds going to get recognized over the next two three quarters. 19:24 19 minutes, 24 seconds You can supplement my answer if you want to. 19:27 19 minutes, 27 seconds Yes, it basically depends on when the customer will move for the position is 19:33 19 minutes, 33 seconds that how it link with their interest to take the position. 19:40 19 minutes, 40 seconds One more thing I would like to say in in the in the context of Imperia 2 actually I don't know if you realize we have 19:48 19 minutes, 48 seconds completed and offered profession before time which is a marvelous achievement uh for the LAO team and my compliments to 19:54 19 minutes, 54 seconds the to our uh very hardworking uh uh members of the team. So what happened is 20:02 20 minutes, 2 seconds like say somebody booked a house last year in January and he was told that you know the it's going to be it's going to take two years. So he's planned his 20:10 20 minutes, 10 seconds finances for the next two years and now because the company has offered got completion certificate and offered 20:17 20 minutes, 17 seconds position before time it is not necessary that he will accept that position you know are you with me so he might still 20:25 20 minutes, 25 seconds continue with his installments and then come in December and so that's when it gets recognized 20:32 20 minutes, 32 seconds understood um I I so even completed so so even though we've completed it's not that We will recognize all of it right now. 20:44 20 minutes, 44 seconds Understood. Uh it is like it is like Raji G said that it is a the accounting standard we are following is that when 20:53 20 minutes, 53 seconds substantial control of the property get passed over to the customer. If installments are still earning then the control is still with us. So we are not 21:01 21 minutes, 1 second able to recognize that but on the ground the project is complete. 21:08 21 minutes, 8 seconds Um I agree uh as a performance has been exceptional on all accounts be it on construction progress or on sales. Um I 21:17 21 minutes, 17 seconds just um um not expecting that 50% of revenue will only get recognized during the year or maybe you are being a little conservative as well. 21:28 21 minutes, 28 seconds I don't know I don't have the exact number you can throw some light on of the total potential of how much is getting recognized in the chair. 21:37 21 minutes, 37 seconds Okay. So more or less I think India 2 is uh almost a turnover of 300 crores although we rightly said 46 we have done 21:46 21 minutes, 46 seconds in this quarter. So almost 150 will be doing 140 to 150 in the next year itself. So close to 200 then might be 21:56 21 minutes, 56 seconds left for the next year. It might be conservative or it can be uh pre-born also. It all depends. 22:02 22 minutes, 2 seconds Yeah probably it might get recognized in the current year. So we are not able to the obviously our numbers that we are putting out are always on the conservative side. 22:12 22 minutes, 12 seconds Yeah. Understood. Thank you so much. Thank you. 22:19 22 minutes, 19 seconds The next question from the line of Sim Gulati from JB Ventures. Please go ahead. 22:25 22 minutes, 25 seconds Hi thank you for the opportunity. So my first question is uh what percent of FIC 22:32 22 minutes, 32 seconds booking came from Solano versus legacy projects. So could you source some light on this? 22:38 22 minutes, 38 seconds That number we already shared total bookings are about 750 K and uh Solano bookings are about 300 odd something. So 22:47 22 minutes, 47 seconds that number is there in the presentation Sha. 22:50 22 minutes, 50 seconds Okay noted sir. So my second question is on solanog. So uh the strong response to 22:57 22 minutes, 57 seconds the Solano garden seems to validate you know your product market fit in Lakam. 23:03 23 minutes, 3 seconds So do you see this as a template for future large scale developments? 23:08 23 minutes, 8 seconds That's what the the idea is that we build on uh it's a great success for the company. We would like to uh build on it success. I think one of the slides in 23:17 23 minutes, 17 seconds the presentation talks about our uh future forthcoming projects. So we are trying to replicate the Solano garden 23:24 23 minutes, 24 seconds model. Solano garden is an extension of the Imperia model. It is a template which is already there. We started with Elico City, then there was Elico 23:32 23 minutes, 32 seconds Regalia, then there was Imperia, Solano Garden. So the template is getting extended and we're attempting to do it at uh two or three more locations. It's 23:40 23 minutes, 40 seconds there. The details are there in the presentation. Okay, unders understood. Thank you. Thank you. 23:48 23 minutes, 48 seconds Thank you. 23:50 23 minutes, 50 seconds We have next question from the line of Runi Kapoor from Investor Investment. Please go ahead. 23:56 23 minutes, 56 seconds Yeah. Uh hi sir. So uh congratulations on the great set of free sale for the corporate. So our question was given the 24:05 24 minutes, 5 seconds high base that we have this year what are we planning for FY27? 24:13 24 minutes, 13 seconds Well the high base is uh I I didn't realize it will become a problem. So uh 24:20 24 minutes, 20 seconds we are we have a we have projects in the pipeline and uh yes we we would like to launch them but we would like to also 24:28 24 minutes, 28 seconds time the launches a little bit but I don't think any major launches are coming up in the in this quarter or maybe even in the next quarter there 24:36 24 minutes, 36 seconds will be some motor launches but the big launches will come after approvals as I mentioned in one of the earlier answers towards the end of the year. 24:46 24 minutes, 46 seconds So given that but having said that uh in an earlier answer I did give a guidance over the next five six years I can't say for the 24:54 24 minutes, 54 seconds current year but for the next five six years our uh value of our unsold project is to be launched for that we tied up 25:03 25 minutes, 3 seconds that whole GDB is about 4,000 cr rupes and it would be uh reasonable to assume that we will be able to sell it over the next five to seven years. 25:13 25 minutes, 13 seconds Okay. And uh secondly you spoke about uh launching some projects in the second half of the year. So I wanted to know like what is the launch pipeline like 25:21 25 minutes, 21 seconds around how much how many mill how much square feet are you planning to la they're in designing right now. So uh 25:29 25 minutes, 29 seconds maybe in the next uh quarterly presentation we'll give you more uh clarity there. 25:34 25 minutes, 34 seconds We we have not got the approvals. The designs are not final. The architects are working on it. So I would uh request you to hold on for 3 months for this. 25:45 25 minutes, 45 seconds Okay. And uh one more question is regarding like your earlier calls you had mentioned that you're looking for parcels around Gorakur. So any update on 25:53 25 minutes, 53 seconds that or yeah we are working actively there but uh and we had a couple of term sheets out but they have not u nothing 26:02 26 minutes, 2 seconds substantial to report in short. If there was, we would have declared it, but it's not something that is at a stage that we 26:10 26 minutes, 10 seconds can say that, you know, we'll tight it up. We're still in talks. 26:16 26 minutes, 16 seconds Okay. And lastly, is there any business development like any plans to add more land parcel during this year? 26:23 26 minutes, 23 seconds So we've done substantial business development in this quarter and we would like to bring them closer to launches uh 26:30 26 minutes, 30 seconds before we uh do some uh big business development this year but there are in our presentation we've declared I think 26:39 26 minutes, 39 seconds three or four locations which we have mentioned under the category undisturbed locations. So land aggregation is continuing in those locations. 26:47 26 minutes, 47 seconds So we would like to bring those land parcels to meaningful size. So that is organic uh land aggregation is 26:55 26 minutes, 55 seconds continuing but as of now I think our hands are full for uh the next couple of quarters. 27:03 27 minutes, 3 seconds Okay. And this new passes you have added in Shahit part. So what would be the approxilization are you looking at that? 27:10 27 minutes, 10 seconds So I think I have mentioned in the opening remarks between the two land passes auctioned by Lacno development authority they mentioned in the 27:19 27 minutes, 19 seconds presentation and the sh the total salable area would be about 2 million square ft between the three projects put 27:28 27 minutes, 28 seconds together and uh total um GDV would be about 2,000 crores. 27:39 27 minutes, 39 seconds Okay. Thank you. That's it. 27:41 27 minutes, 41 seconds Yeah. Thank you. Reminder to all the participant that you may press star and one to ask a question. Reminder to all the participants that you may press star 27:50 27 minutes, 50 seconds one to ask a question. The next question from the line of Isha from family office. Please go ahead. 27:57 27 minutes, 57 seconds Thank you for the opportunity. Uh so you have added 2,000 K GDB pipeline by three new land parcels. uh what is the 28:05 28 minutes, 5 seconds expected launch timeline for these projects and uh how much can be monetized in FI27 and FI28? 28:12 28 minutes, 12 seconds No the uh I will we will be answering this question in the next quarter because the projects are still under designing but very vaguely I think it 28:21 28 minutes, 21 seconds will be towards the end of this financial year with the launches. It does take that kind of time to get the design right and get the approvals and 28:28 28 minutes, 28 seconds then uh get the rare registration. So it will be towards the end of the year if at all but I hope that we launch it. 28:37 28 minutes, 37 seconds Yeah. 28:38 28 minutes, 38 seconds And sir given uh the ongoing geopolitical uncertainties globally are you witnessing any impact on the buyer sentiment due to higher borrowing costs 28:46 28 minutes, 46 seconds on macro concerns or has demand remained largely insulated? 28:50 28 minutes, 50 seconds Um nothing no great impact in LNO. The demand there is very organic. It does not depend so much on the linkages. the 29:00 29 minutes geopolitical factors are not that great as far as if there are certain people 29:07 29 minutes, 7 seconds who are connected to the stock markets and the stock markets are not doing well so they tend to hold back on big decisions so that could be there the 29:15 29 minutes, 15 seconds bigger impact that we are we think will come will be on the cost of construction side that transmission is still not 29:23 29 minutes, 23 seconds there fully so I think that will be the bigger impact we don't know we don't have full clarity on that right And one last question if you permit 29:32 29 minutes, 32 seconds please. Uh so can you please provide a broad GDB estimate for the total pipeline ongoing plus forthcoming the land bank if possible? 29:40 29 minutes, 40 seconds We I already answered it twice. 4,000 crores. Okay. So thank you. Yeah. 29:48 29 minutes, 48 seconds Thank you. 29:50 29 minutes, 50 seconds The next question from the line of Ban Patel and Indonesian investor. Please go ahead. 29:55 29 minutes, 55 seconds Uh thank you for the opportunity sir and congratulations for great launch. Uh sir first question is uh sort of bookkeeping. We have booked 64 crores 30:04 30 minutes, 4 seconds revenue but in your presentation it shows only 18,000 square ft delivered and 26 units. So it doesn't seem to uh 30:14 30 minutes, 14 seconds fit the can you just throw some light on that Raj would you like to take that up? I 30:22 30 minutes, 22 seconds don't know which slides are being referred to here. Can you ask you also? 30:28 30 minutes, 28 seconds So it's total revenue booked is around 64 crores for this quarter. And if we go to uh operational yearly quarterly and 30:38 30 minutes, 38 seconds yearly operational highlight slide I think slide seven the deliver area [clears throat] is 18,530 square ft 30:46 30 minutes, 46 seconds and 26 units delivered. So the amount of uh per square ft uh revenue recognized 30:54 30 minutes, 54 seconds seems to be very high. Just wanted to get your understanding uh get your some clarity on that. 31:02 31 minutes, 2 seconds See basically we are talking about the delivery right and we are talking two different things. One is recognization and one is delivery. Delivery is a part 31:10 31 minutes, 10 seconds of uh recognition also but we recognize that the control has been passed out when we give the permission even the deliveries are not been done we have 31:19 31 minutes, 19 seconds offer permission and collection has been completely received. So then on that we recognize the revenue. So delivery is 31:27 31 minutes, 27 seconds something which is related to your history part. 31:31 31 minutes, 31 seconds Understood. So you mean the possession or the revenue recognized area would be much higher than delivered area. 31:38 31 minutes, 38 seconds Yeah. Yeah to that extent. Yes. 31:41 31 minutes, 41 seconds Okay. Uh the second question is uh again you mentioned around 14 cr uh uh uh one 31:49 31 minutes, 49 seconds off this this quarter. So do we expect any more uh one off in coming quarters or? 31:56 31 minutes, 56 seconds No no no we have done more or less we have done more or less in debt and to call the call as in this quarter itself. 32:07 32 minutes, 7 seconds We're not hoping any any other concerns in the next coming quarters. 32:12 32 minutes, 12 seconds Got it. Uh sir, a a larger question on uh I think UP uh launched the urban development policy in February I think. 32:22 32 minutes, 22 seconds So can you explain impact of the same on our company? I understand uh policy aimed at uh growing project faster and 32:31 32 minutes, 31 seconds increasing FSI. So can you throw some highlights of that and and impact of the same on our company? 32:38 32 minutes, 38 seconds No, it's a very progressive step. It's the impact on us will be a positive. I don't know if people outside UP are 32:46 32 minutes, 46 seconds realizing how uh things are changing so rapidly in UP over the last five, seven years or 10 years. The ease of doing 32:54 32 minutes, 54 seconds business is really uh good. The policies are clear. They're predictable. 33:01 33 minutes, 1 second they are investor friendly. So and for a real estate development company the um 33:08 33 minutes, 8 seconds the demand is there we could not address that demand in the earlier years because we had so many supply 33:16 33 minutes, 16 seconds constraints you know we had so we had to run around for our uh approvals and they were not predictable the norms were not 33:24 33 minutes, 24 seconds predictable so the approval process become easier it's become predictable it's become more liberalized and uh the 33:31 33 minutes, 31 seconds polit economics are uh if not better they're predictable. So that's a very great thing. There were so many 33:38 33 minutes, 38 seconds questions on um what can you say about this year and when will you launch? If you had asked me 10 years ago when would 33:46 33 minutes, 46 seconds you launch this project? I would have been not sure. But now I can say I would launch it in three quarters from now 33:53 33 minutes, 53 seconds because uh we know that once you put your uh application for approval so it does come around in some reasonable time 34:02 34 minutes, 2 seconds and the other thing they will ease the fair norms and other planning norms which is also a great positive so 34:09 34 minutes, 9 seconds overall it's a very positive impact on a company which is totally working only in YouTube. 34:16 34 minutes, 16 seconds Got it. And sir, do you expect competition also to increase because of this? 34:23 34 minutes, 23 seconds Maybe I don't know. Uh we don't uh we we are well entrenched in Lnau. We are the oldest player in Lnau. We are probably 34:31 34 minutes, 31 seconds the most recognized player in Lnau. So if national players come in, welcome. 34:36 34 minutes, 36 seconds But uh we don't uh feel any adverse impact of that. If that does happen, I think it will be a positive for the 34:43 34 minutes, 43 seconds Lucknau market and indirectly for us also. Got it. 34:49 34 minutes, 49 seconds Mind you, I don't know. I would invite you to visit our website and see some real pictures. The product that we put out is as good as anything that any 34:56 34 minutes, 56 seconds player does it in the country if not better. 35:00 35 minutes Absolutely. Uh so that your track record also shows that uh uh uh and s 35:09 35 minutes, 9 seconds on elo trinity so uh the actual uh amount has decreased slightly. So we 35:16 35 minutes, 16 seconds were we supposed to launch a sample flat. So what is the status there? 35:22 35 minutes, 22 seconds So the sample flat is ready. There's some uh minor work going on in the lobby and some joining areas etc etc. We're 35:30 35 minutes, 30 seconds going to relaunch the project in about 3 weeks time. Hopefully we'll get a good response because we made a phenomenal 35:38 35 minutes, 38 seconds sample apartment. If you're visiting let know we invite you to please visit the sample apartment. Give us your feedback. 35:45 35 minutes, 45 seconds But fingers crossed we should do well now. 35:47 35 minutes, 47 seconds Absolutely sir. I would love to if I I'll get it back if I come. Thank you. 35:53 35 minutes, 53 seconds Thanks a lot sir and wish you all the best. 35:57 35 minutes, 57 seconds Thank you. Reminder to all the participant that you may press star to ask a question. 36:04 36 minutes, 4 seconds The next question from the line of Pune Singh from counter cyclic PMS. Please go ahead. 36:16 36 minutes, 16 seconds Mr. Gon Singh, your line is unmuted. Uh, please ask your question. Hello. 36:20 36 minutes, 20 seconds Yeah, thank you for the followup. So, I just want uh to understand uh more about Elico latitude 27 uh handover and 36:29 36 minutes, 29 seconds development. So in the previous remark you mentioned that uh by year end we can expect uh this to uh to to start 36:37 36 minutes, 37 seconds handovers in this uh but in the presentation it says November 27. So can you please uh just you've been following 36:46 36 minutes, 46 seconds very closely all my answers you should have also uh noted that we uh offered 36:53 36 minutes, 53 seconds position for Imperia 2 before time right? Yeah. So uh there was a hint 37:00 37 minutes there that probably we will do latitude before time. Our official position remains in November 27 but hopefully because the way the site is working we 37:09 37 minutes, 9 seconds may do it much earlier than that even so early that it could be within the financial year but uh that's a we don't 37:16 37 minutes, 16 seconds know our commitment to our customers is November 57. 37:21 37 minutes, 21 seconds Got it. So uh is this project in phases or uh I mean uh are you saying that you 37:27 37 minutes, 27 seconds uh the entire project is ahead of time or are you launching it in I mean are you doing the handover in phases if you 37:36 37 minutes, 36 seconds can there are there are five towers I think four of them will get finished uh in the first phase itself there's one tower 37:44 37 minutes, 44 seconds which we launched later so that's going to lag by about 6 to 9 months got it So, 37:52 37 minutes, 52 seconds all right. Perfect. And we'll uh keep on tracking this in the Don't hold me to it before time delivery. We may not do it, but we're 38:01 38 minutes, 1 second trying. Go for it. Perfect. Thank you very much. 38:08 38 minutes, 8 seconds Thank you. We have next question from the line now. 38:13 38 minutes, 13 seconds Sa Malotra from Malotra. Please go ahead. Please go ahead. 38:17 38 minutes, 17 seconds Hi sir. Congratulations on good set of numbers. I just have two questions. Uh first uh could you please shed some 38:24 38 minutes, 24 seconds light on whether a reversal in the interest rate cycle would impact demand? Like can you give your view on the same? 38:33 38 minutes, 33 seconds No, we don't think it is going to impact demand. We did an internal analysis. Not a lot of customers of ours depend on uh 38:41 38 minutes, 41 seconds home loan rates. uh of our total correction I think probably just about 30 to 40% is uh this was through home 38:50 38 minutes, 50 seconds loans let's say selfunded so and even with 30 to 40% I think the market is mature enough to uh realize that it's a 38:58 38 minutes, 58 seconds floating rate and interest rates do go up and down so they are currently up uh the customers do understand that you 39:05 39 minutes, 5 seconds know they could over a 20ear period which is what the typical uh home loan period is it could come down very cost. 39:13 39 minutes, 13 seconds So I don't think that really impacts the decision to that large extent. 39:20 39 minutes, 20 seconds Okay. Got it. And also uh given that plotted developments and villas typically offer better margins compared to the group housing, are you 39:28 39 minutes, 28 seconds consciously moving your project mix over in that direction? And if so, how are you thinking about the balance between these segments going forward? 39:38 39 minutes, 38 seconds No, we are not constantly mixing moving to that direction. Yes, of course, uh the margins are much higher and plotted in the villa, but also the 39:47 39 minutes, 47 seconds pain is much higher. The pain happens in the land aggregation in assembling the land which is large enough to have a 39:55 39 minutes, 55 seconds meaningful number that uh it does take a lot of time and the group housing forest like the ones I mentioned earlier that 40:02 40 minutes, 2 seconds the ones we won in the Lexno de development authority auction uh you can you your time to the market 40:11 40 minutes, 11 seconds is very quick from the moment you win the auction to the time you launch it can be as quickly as 6 to 8 months and 40:18 40 minutes, 18 seconds when um plotted and villa development horizontal mini township kind of development the land aggregation itself 40:25 40 minutes, 25 seconds takes sometime more than 2 years. So one has to find a balance between these high margin these are high margin projects 40:33 40 minutes, 33 seconds but they're long distation projects. So one has to find a mix and it's not one over the other. I think it has to be and 40:40 40 minutes, 40 seconds both both have to work together for a good uh uh mix in your portfolio. 40:49 40 minutes, 49 seconds Got it. Got it. And so just one last question. You have consistently highlighted strong end user demand and luck now. So after a very strong quarter 40:58 40 minutes, 58 seconds 4 driven by launches, how do you see demand shaping up in quarter 1 and quarter two of FI27 like our trends continuing at similar intensity? 41:08 41 minutes, 8 seconds So FA there's no problem with the demand. The problem as I've always highlighted is with the supply are we able to supply 41:17 41 minutes, 17 seconds uh houses good quality houses in the numbers that LNO is demanding? No. The 41:24 41 minutes, 24 seconds answer is no. We are not able to whether Elco whether our peers in the industry whether it is the government sector the demand is many times what the supply is. 41:34 41 minutes, 34 seconds So not only are we doing uh business and we are uh running this commercially there's also a social need for the kind of housing shortage there is it's a 41:42 41 minutes, 42 seconds growing city infrastructure is booming population is booming and people's income are going up but the housing 41:50 41 minutes, 50 seconds supply is just not keeping pace for many reasons and I hinted at one of the main reason which is uh land assembly is so 41:58 41 minutes, 58 seconds difficult land parcels are fragmented uh they're disputed did. So demand is I 42:06 42 minutes, 6 seconds don't think it's so uh the demand supply gap is so skewed that we don't even worry about demand anymore. We don't worry about supply. Can we put this 42:14 42 minutes, 14 seconds through can we put through a nice project at a reasonable price? Of course. There's no fun in putting in uh 42:22 42 minutes, 22 seconds putting through a over price because that does not really address the gap. So a reasonable price product a reasonably 42:29 42 minutes, 29 seconds designed product can be puted through in large enough numbers. So there the venue for growth is very very large. 42:37 42 minutes, 37 seconds Mhm. 42:39 42 minutes, 39 seconds Got it. Thank you so much sir for all the detailed responses and all the best to you. Thank you. Thank you. 42:47 42 minutes, 47 seconds Reminder to all the partsman that you may press star to ask a question. The next question from the line of Karan Gupta from David Capital. Please go ahead. 42:56 42 minutes, 56 seconds Yes. Thanks. Uh just one question. if you could just uh share the construction expense budget for FY27 and 28 that would be very helpful. 43:06 43 minutes, 6 seconds So uh the construction uh number spans are increasing uh organically. I think 43:13 43 minutes, 13 seconds last year we did about 150 160 cr uh the previous year. This year we've done at 177 crores. I think in the current year 43:22 43 minutes, 22 seconds we'll close at uh the current financial year uh it will be about 15 to 20% higher. 43:31 43 minutes, 31 seconds So about 200 cr maybe. 43:34 43 minutes, 34 seconds Okay. Um is there so what is your uh budget depend on the construction expense? Is there an opportunity to 43:42 43 minutes, 42 seconds increase so that you can speed it up or there is a timeline uh to uh 43:49 43 minutes, 49 seconds construction expense? If there's a project which is 4 years long then it will be done in four years right? So it 43:56 43 minutes, 56 seconds is does not depend on uh what your market condition is and what your uh whether you did the entire book like in 44:04 44 minutes, 4 seconds Solano Gardens we did the entire book up front the plotted development and the villa they the majority of it got sold 44:11 44 minutes, 11 seconds out within within 10 days of launch. So in that quarter we would see oh my god we did 400 crores of sales but it's not 44:18 44 minutes, 18 seconds that we can do 400 crores of construction in that quarter. Now the construction of the this sale that we've done in uh or these booking that we've 44:26 44 minutes, 26 seconds done in Solano Gardens will happen at an organic pace over the next 10 or uh 12 13 quarters. So it increases gradually as you launch more projects. 44:38 44 minutes, 38 seconds I'm saying that whatever we in the current financial year financial year ended 26 our numbers were about 15% 44:46 44 minutes, 46 seconds higher than the number before and in the current year I think it will about 15 20% even higher so that's the rate of 44:54 44 minutes, 54 seconds growth it will keep increasing as we launch more projects okay uh and just finally for the expense 45:03 45 minutes, 3 seconds uh is that also recognized along with the revenue or do you expect or do you recognize the expense as in when you're constructing something and then the 45:12 45 minutes, 12 seconds revenue happens later. So nondirect costs are period costs like salaries and 45:19 45 minutes, 19 seconds overheads they are period cost they they do not depend on uh the pace of project execution or sales. Radi please come on 45:28 45 minutes, 28 seconds explaining this rightly said and see all project cost they are basically on the basis of the recuperation but other than 45:36 45 minutes, 36 seconds the period cost of advertisement your salary and all other they are on the basis of incurrings. 45:44 45 minutes, 44 seconds So to that extent uh see we did great sale in uh Solano garden but all the 45:51 45 minutes, 51 seconds cost of advertising and everything was has been expensed but the revenue will get recognized in the later years. 45:59 45 minutes, 59 seconds That's right. 46:01 46 minutes, 1 second Yeah. So just so my understanding is correct. So the direct construction cost related to for example Ethereia phase 2 46:08 46 minutes, 8 seconds that you're going to recognize this year a big chunk of it. So the direct construction cost related to that revenue will also be recognized along with the revenue. Is that right? 46:18 46 minutes, 18 seconds Yeah. Thank you so much. 46:22 46 minutes, 22 seconds Thank you. Reminder to all the participant that you press star and one to ask the question. Reminder to all the participants that you may press star and one to ask the question. 46:38 46 minutes, 38 seconds As there are no further questions from the participants. I now had conference over to management for closing comments. 46:44 46 minutes, 44 seconds Thank you. Uh I can see that people are really following uh the the numbers that we put out with a fine 46:53 46 minutes, 53 seconds tooth comb and that's great and we uh hope that you continue with your support in the coming time also and we hope that 47:01 47 minutes, 1 second we continue to put out good numbers in the coming quarter. Thank you for your support. 47:08 47 minutes, 8 seconds on behalf of Housing and Industries Limited. That concludes this conference. Thank you for joining us and you disconnect lunch. 47:16 47 minutes, 16 seconds Thank you. Thank you.