Keystone Realtors Ltd — Q4 FY26

Keystone Realtors Ltd Q4 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=tbD-JRxBAlE Published: 1 day ago

0:00 Ladies and gentlemen, good day and welcome to the Keystone Realtors Limited Q4 FY26 Investors Conference call hosted 0:07 7 seconds by Access Capital Limited. As a reminder, all participant lines will be in the listenonly mode and there will be 0:14 14 seconds an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference, please signal an operator by 0:23 23 seconds pressing star then zero on your Touchstone phone. Please note that this conference is being recorded. I now hand 0:30 30 seconds the conference over to Mr. Rashid Sha from Access Capital. Thank you and over to you sir. 0:37 37 seconds Hi, good evening all. Uh welcome to the earnings call of Keystone Realtors for Q4 and FIA FY26. The management is represented by Mr. 0:45 45 seconds Balani chairman and managing director, Mr. Chandesh Ma, the executive director, Mr. Pasi Chadri the executive director and Mr. Sajel Gupta the group CFO. 0:55 55 seconds Without further ado, I hand over the call to you. Uh thank you. 1:03 1 minute, 3 seconds Good afternoon everyone. I'm Bame Irani, chairman and managing director of Keystone Realtors Limited. 1:09 1 minute, 9 seconds Welcome to our Q4 FI26 and full year FI26 earnings conference call. I thank you all for taking the time to be with us today. 1:19 1 minute, 19 seconds Let me begin by saying or giving you our headline numbers. They tell a story much better than any words that I can use. 1:27 1 minute, 27 seconds The pre-sales that we've done this year are 4,022 cr rupees. This is an up of about 33%. 1:36 1 minute, 36 seconds Q4 pre-sales are at 1346 cr rupees which is a 58% 1:44 1 minute, 44 seconds year-on-year jump. This has also been our highest ever quarterly pre-sales. 1:51 1 minute, 51 seconds Our BD has done extremely well and we are at about 1.74 times the guidance 1:57 1 minute, 57 seconds that we had given. We are a net cash positive company and this has been our position throughout the year. Our gross 2:06 2 minutes, 6 seconds debt to equity ratio is at 26 is to1. We have recently been given a rating of 2:14 2 minutes, 14 seconds double A minus with a stable outlook by Crystal indicating sound financial health of the company. I want these 2:22 2 minutes, 22 seconds numbers to sit with you as this is the backdrop for everything that I'm going to stay say here on when we got listed we had made a set of 2:32 2 minutes, 32 seconds commitments to all of you. We said we will tell you what we can do and then we will do it. Three years on, I am happy 2:39 2 minutes, 39 seconds to state it and very very uh uh keen to tell you that we have kept our word all through year after year, quarter after 2:49 2 minutes, 49 seconds quarter across pre-sales, across collections, across project launches with business development, keeping debt 2:57 2 minutes, 57 seconds discipline and making sure to optimize cash flow, operating cash flows. We have 3:04 3 minutes, 4 seconds always met or surpassed every single guidance metric that we have shared with you. This is the result of a deeply 3:11 3 minutes, 11 seconds disciplined organization having a resilient brand and a culture of accountability that runs from the 3:18 3 minutes, 18 seconds boardroom to all our sites construction and building otherwise. 3:25 3 minutes, 25 seconds I want you to hold on to these thoughts again because this is the length to which I will tell you all that I am going to today. 3:35 3 minutes, 35 seconds We've said before that Keystone real inflection point some of you have nodded politely accepting our statement. Today 3:43 3 minutes, 43 seconds I invite you to look at the operational performance that we are reporting. These numbers will make the case far more elaborately and eloquently than I can. 3:54 3 minutes, 54 seconds Our pre-sales have grown 2.5 times in just three years. You remember we were at 164 crores in FI23 4:02 4 minutes, 2 seconds and today we are at 4,022 crores in FY26. That is a CAGR of 36%. 4:10 4 minutes, 10 seconds Our market share in the MMR has doubled. 4:13 4 minutes, 13 seconds We are at approximately 2% of the market of MMR in the last three years. Now 4:20 4 minutes, 20 seconds these are hallmarks of a company that is structurally gaining ground. Our legacy project overhang that weighed us weighed 4:28 4 minutes, 28 seconds down on us on our reported financials are now substantially behind us. 4:34 4 minutes, 34 seconds You can expect us as an organization to improve our reported margins going forward. 4:42 4 minutes, 42 seconds Our financial performance will truly begin to mirror the operational strength we have been building. Let me walk you through some of the key metrics for the 4:50 4 minutes, 50 seconds year. Full year pre-sales for 4,022 crores. Like I said, 33% increase over FI25. 4:58 4 minutes, 58 seconds This is bang on in line with our guidance. In Q4 alone, uh we recorded 1346 crores. Like I said, a remarkable 5:06 5 minutes, 6 seconds 58% year-on-year growth that reflects both the quality of launches and sustained appetite for our brand G 5:14 5 minutes, 14 seconds across the MMR. Our total collections in FI26 stood at 2,622 crores. Again, a 13% increase yearon 5:23 5 minutes, 23 seconds year. Q4 collections, interestingly, were at 853 crores, up 14% year on year. 5:31 5 minutes, 31 seconds Our operational cash flows for FY26 stands at about 715 crores. 5:40 5 minutes, 40 seconds We remain one of the very few listed companies, real estate companies um that has maintained a net cash positive status throughout FI26. 5:50 5 minutes, 50 seconds Our gross debt to equity ratio remains comfortably within the guidance of 26 to1. This is a reflection like I mentioned of the financial discipline 5:58 5 minutes, 58 seconds and it becomes increasingly valuable in an environment where the cost of capital continually matters. 6:06 6 minutes, 6 seconds With two project launches in Q4 FY26 um we have launched projects of GDV 6:15 6 minutes, 15 seconds 3,978 in that quarter. A total of aggregate seven projects launched in FY26 6:23 6 minutes, 23 seconds uh was a combined estimated GDP of about 9,813 crores. This is 1.4 is four times the 6:31 6 minutes, 31 seconds guidance 2004 and a 96% growth year on year. RBD has done extremely well. 6:44 6 minutes, 44 seconds Ladies and gentlemen, the line for the management seems to have disconnected. 6:46 6 minutes, 46 seconds Please stay with us while we reconnect with the management. 6:57 6 minutes, 57 seconds Baby. 7:28 7 minutes, 28 seconds Ladies and gentlemen, we thank you for your patience. We have now reconnected with the management. Over to you, sir. 7:33 7 minutes, 33 seconds I'm so sorry about that. I'm not sure where we got cut off as you have to hear some repetition. Please bear with me. 7:39 7 minutes, 39 seconds Um, we have two projects launched in uh Q4 FI26 making it a GDP of 3,978. 7:47 7 minutes, 47 seconds That's almost 4,000 crores in the last quarter. And the total seven projects that we launched in FI26 had a combined 7:54 7 minutes, 54 seconds estimated GDP of 9,813 crores. That's about 1.4 times our guidance of 7,000 crores and a 96% 8:04 8 minutes, 4 seconds growth year on year. Our business development has done extremely well. 8:08 8 minutes, 8 seconds We've added five projects with total estimated GDP of 10,400 plus crores in FI26. 8:15 8 minutes, 15 seconds This is 1.74 times our guidance which was 6,000 crores and 118% growth year on 8:23 8 minutes, 23 seconds year. Since F523 we have added 25 projects totaling 27,800 8:30 8 minutes, 30 seconds plus crores GDV. Notably 21 of these are redevelopment and 18 serve in the emerging premium and premium housing segments. 8:42 8 minutes, 42 seconds Each project is underwritten at approximately 35% gross margins with upfront equity capital capped at approximately 10% total project GDB. 8:51 8 minutes, 51 seconds This asset light margin first approach ensures that every project we add strengthens our balance sheet. 8:59 8 minutes, 59 seconds Now let me tell you about what we have done and what we are about to do. You're 9:06 9 minutes, 6 seconds aware that we have more than doubled our stake in the in the sales of the city. 9:12 9 minutes, 12 seconds But recently at our open house uh we have made and presented to our entire 9:19 9 minutes, 19 seconds team a road map where we have identified that our company keystone Realtors will 9:26 9 minutes, 26 seconds achieve and be in the 10,000 crores pre-sale club by FY30. 9:34 9 minutes, 34 seconds This is not wishful thinking. This is not just an aspiration. But this is a target that we are fully prepared 9:43 9 minutes, 43 seconds organizationally and individually to achieve. Our pipeline, our brand equity, our balance 9:50 9 minutes, 50 seconds sheets, our teams, all of us are calibrated towards this one northstar. 9:58 9 minutes, 58 seconds The 10,000 cr pre-sales by FY30, I'd like to say is our commitment to our growth. 10:08 10 minutes, 8 seconds We've delivered about 4,000 crores in FY26. 10:12 10 minutes, 12 seconds FYI27 guidance is 5,000 crores. That's approximately a 25% growth. From there, we need to compound at approximately 26% 10:21 10 minutes, 21 seconds annually to reach this target of 10,000 crores by FY30. The rate is lower than the 36% CAGGR over the past three years that we have already shown. 10:33 10 minutes, 33 seconds This is possible with our cluster redevelopment, our product development, commercial annuity portfolio. Like I'd 10:41 10 minutes, 41 seconds say we are going to improve our scale, our velocity and improve stability of our company. 10:49 10 minutes, 49 seconds The scale multiplier will be achieved by the large cluster development, newer type of developments that we do. 10:55 10 minutes, 55 seconds Velocity will happen due to the added cities uh or towns that we will increase our foothold or our presence in. And the 11:04 11 minutes, 4 seconds stability will come through the wide range of commercial portfolios that we are now beginning to assess and start. 11:13 11 minutes, 13 seconds The path to 10,000 crores begins. The first step is this year will be a pre-sales of 5,000 crores. Project 11:21 11 minutes, 21 seconds launches will be about 8,000 crores this year and our acquisition will be acquisitions will be roughly about 8,000 11:28 11 minutes, 28 seconds plus crores. Our gross debt to equity will still be capped at 75 is to one. 11:36 11 minutes, 36 seconds I want to say this to all of you. The Indian real estate and specifically the MMR real estate is probably at its early 11:45 11 minutes, 45 seconds stages of structural multi- decade demand cycle. We are probably the 11:53 11 minutes, 53 seconds fastest growing large economy of the world. Urbanization as we've mentioned before is accelerating. Aspirational 12:00 12 minutes middle class and affluent consumer base is expanding rapidly. Premium and luxury housing once considered niche and out of reach has now become mainstream. 12:11 12 minutes, 11 seconds There is a strong demand in this category. The postcoid behavioral shift towards home ownership, larger living 12:19 12 minutes, 19 seconds spaces and quality first choices has proven super durable. What we've witnessed in FY23, 24, 25 and even 26 is 12:29 12 minutes, 29 seconds not just a flasher in the ban. It is as a matter of fact the beginning of what is to come. 12:36 12 minutes, 36 seconds We are operating in a very attractive urban real estate market and we are one of the trusted developers in this 12:43 12 minutes, 43 seconds market. Redevelopment opportunity in Mumbai alone is about a lack and 30,000 cr by 2030. This has been quantified in 12:51 12 minutes, 51 seconds the night flank report and Rustam Gj without question is the most preferred and most trusted redevelopment partner in the MMR region. 13:03 13 minutes, 3 seconds A key operational initiative for us is the deployment of advanced pre-cast construction technology. Let me tell you 13:12 13 minutes, 12 seconds we are working on a 360deree approach wherein we've even identified that in the future quality manpower availability 13:20 13 minutes, 20 seconds will be will be continuously reducing and towards that took its first step to build a pre-cast plant for its own 13:27 13 minutes, 27 seconds captive consumption. We've partnered with Robin Village of Singapore and we are prov who are providing us the technical engineering and supervision 13:36 13 minutes, 36 seconds support for the pre-cast systems that are being implemented. This will allow us to get our quality right and create 13:44 13 minutes, 44 seconds the kind of product that is being created in Singapore which probably is a very high-end development and is something that we can all be certain of. 13:58 13 minutes, 58 seconds our um major infrastructure and housing 14:04 14 minutes, 4 seconds developments will continue to increase the pressure on labor and execution 14:11 14 minutes, 11 seconds capacity. Therefore, by entering into construction in a controlled factory environment, pre-cast will enable better 14:19 14 minutes, 19 seconds quality, faster execution, superior finishing consistent consistency and most mostly 14:27 14 minutes, 27 seconds uh reduce the material wastage by almost 30%. Lower the workman requirement by 40% by you know increasing the machine 14:35 14 minutes, 35 seconds requirement and we'll have almost 1.5 times greater precision and durability. 14:41 14 minutes, 41 seconds And like I said, with markets like Singapore and Japan already adopting pre-cast construction at scale, we will 14:49 14 minutes, 49 seconds bring these global best practices into our development. On the ESG front, we've always been proud of our milestones and 14:56 14 minutes, 56 seconds with clear targets of 100% green certified portfolio by 2030. We want to say that we are in the top 10 gigress 15:04 15 minutes, 4 seconds rating and full transition towards a green certified critical building materials by 2035 is on our charts. We 15:12 15 minutes, 12 seconds have 22% women participants in the workforce by 2029. 15:20 15 minutes, 20 seconds Gustam G Crescent has been recently awarded the IGBC gold pre-certification and the Belleview Casara project has 15:28 15 minutes, 28 seconds been given the IGBC net zero carbon design award. Reflecting our people's first philosophy, we are developing 15:36 15 minutes, 36 seconds further labor accommodation at Balmoral Rustami Balmoral in Chamur uh which will house about 500 plus workers in 15:45 15 minutes, 45 seconds ventilated rooms following the Upgar model at Rustam Gi Abania. Beyond compliance, the facility ensures safe 15:53 15 minutes, 53 seconds living, organized cooking, sanitation, and life safety features, reinforcing our belief that our workforce deserves 16:02 16 minutes, 2 seconds to be well taken care of. And our productivity, our efficiency, our sustainability, and long-term growth 16:09 16 minutes, 9 seconds depends on them. And we will create greater value for all our stakeholders by taking care of everyone that works 16:17 16 minutes, 17 seconds with us. On the financial performance, our um revenue from operations in Q4 16:25 16 minutes, 25 seconds FY26 stood at 1596 crores and for FY26 at 16:34 16 minutes, 34 seconds 2,635 crores. Our OCF stands at 715 crores. 16:40 16 minutes, 40 seconds Uh in this context, I'd like to highlight our transition in the accounting policy from project completion method to percentage of 16:48 16 minutes, 48 seconds completion, which is the PCM method. A change that will allow all our financial statements to truly and transparently 16:56 16 minutes, 56 seconds reflect upon the revenue and margins being earned in real time. 17:01 17 minutes, 1 second This transition combined with the fact that the legacy low margin project overhang which has historically weighed us down is largely behind us now marks a 17:11 17 minutes, 11 seconds genuine turning point for us at Keystone Realtors. As our new high margin pipeline matures and revenue recognition 17:19 17 minutes, 19 seconds begins to flow through on a progressive basis, our financial performance will increasingly mirror the operational 17:26 17 minutes, 26 seconds execution strength we have been steadily building over the last three years. Our construction spend has accelerated from 17:33 17 minutes, 33 seconds 829 crores in FY25 to 997 crores. That's almost 1,000 crores in FI26. 17:40 17 minutes, 40 seconds This reflects our commitment to deliver velocity. 17:44 17 minutes, 44 seconds As of 31st March 26, our gross debt stood at 755 crores with a gross debt to equity ratio being 266 to1 which is very 17:53 17 minutes, 53 seconds comfortably within the guidelines guidance. We ended the year with free cash of about 818 crores. I'm delighted 18:01 18 minutes, 1 second to share the company's credit rating like I've already mentioned by crystal rating have awarded us a rating of double A minus with a stable outlook. 18:12 18 minutes, 12 seconds This is a clear market endorsement of our financial profile, our project pipelines, our capital allocation discipline and one of the most this is 18:21 18 minutes, 21 seconds one of the most objective external validation of the journey that we've been on. 18:27 18 minutes, 27 seconds To close, I want to say we delivered in SY 24 25 26 and we stand here today with 18:35 18 minutes, 35 seconds complete conviction that we will deliver in SI 27 28 29 and reach our target of 18:41 18 minutes, 41 seconds 10,000 crores pre-sales by FY30. At Ranji we have built homes, we have built 18:48 18 minutes, 48 seconds trust, we have built communities and we have built futures. We intend to keep doing exactly that only this time 18:58 18 minutes, 58 seconds faster, better and bigger than ever before. The best of Ramanji is ahead of us. I look forward to sharing this 19:05 19 minutes, 5 seconds journey with each one of you for the long run. Thank you for your trust, your partnership and your continued 19:13 19 minutes, 13 seconds confidence in us. I look forward to your questions now. Thank you. 19:19 19 minutes, 19 seconds Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on their touchtone 19:28 19 minutes, 28 seconds telephone. If you wish to remove yourselves from the question queue, you may press star and two. Participants are requested to please use handsets while 19:35 19 minutes, 35 seconds asking a question. Ladies and gentlemen, we will now wait for a moment while the question Q assembles. 19:43 19 minutes, 43 seconds Our first question comes from the line of Rushab Sha with Bugle Drop PMS. Please go ahead. 19:53 19 minutes, 53 seconds I thank for the opportunity. Sir, uh in the slide number 30, the sold 20:01 20 minutes, 1 second receivables in all the residential categories is significantly lower than the cost to complete. Could you explain 20:10 20 minutes, 10 seconds me how do you generally go about selling the projects? Which projects do you have 20:17 20 minutes, 17 seconds higher IRS although we have huge amount of unknown inventory left in all the residential category 20:27 20 minutes, 27 seconds thanks for that. Yeah. I'll let Saj take this query. 20:31 20 minutes, 31 seconds Yeah. Thank you. Uh I think you will have to appreciate that we have had a huge pipeline of the launches last year. 20:40 20 minutes, 40 seconds Our launches has been close to about 10,000 crores. So when we speak of about 12,000 crores of the unsold goods which 20:48 20 minutes, 48 seconds is there uh a good portion of that almost about 8,000 crores is out of the launches which has been done in the last 20:55 20 minutes, 55 seconds year. So fundamentally number one that 49% of our inventory is already sold of the entire pack that we have including 21:03 21 minutes, 3 seconds the launches of the last year. Number two that this basically demonstrate the cost to complete demonstrate basically 21:11 21 minutes, 11 seconds the cost to complete for the recently launched project which is in the last year and with the 5,000 crores or target that we have taken this year of the 21:20 21 minutes, 20 seconds pre-sale uh very soon basically we will have a good amount of financial coder coming out of that from the sold receivable out 21:27 21 minutes, 27 seconds of the pre-sales that we will be doing in this year. 21:33 21 minutes, 33 seconds So the reason for asking this question was that uh suppose uh 21:40 21 minutes, 40 seconds we launch a project in a year. So what type of is the sold inventory or let's 21:48 21 minutes, 48 seconds say cost to complete we would be targeting because these are uh like in the in the good times we would get the 21:55 21 minutes, 55 seconds pre-sales or all the and the source receivable the in the bad times we would like uh 22:04 22 minutes, 4 seconds how would we defend ourselves because the cost to complete might be more than the source receivables. 22:12 22 minutes, 12 seconds Yeah. So number one that may I draw your attention to the slide number 40 uh which truly reflects our sales 22:20 22 minutes, 20 seconds philosophy and the pattern of sales that we look at. uh I think in all our previous interactions we have been 22:27 22 minutes, 27 seconds maintaining that we sell about 35% till the time the print comes which is generally the first year of the launch 22:34 22 minutes, 34 seconds during the sustenance we sell the another 40 odd% taking to 75% the last 25% a portion of that we sell 22:43 22 minutes, 43 seconds while the building is fitted out that is let us say out of 25% about 15 o% basically 15 to 20% by the time the OP 22:50 22 minutes, 50 seconds come and the last 5 to 10% post OC So this is typically the pattern we follow and the right hand side of this slide 40 22:58 22 minutes, 58 seconds if you look at that whatever we launch in FY 2024 66% of that has already been sold. uh when I say already been sold 23:07 23 minutes, 7 seconds the status as of March 2026 uh 2025 whatever we launched the 49% of 23:14 23 minutes, 14 seconds that has already been sold and 2026 since we launched during the whole of the year and when I say that we sell 35 23:22 23 minutes, 22 seconds to 40% it is throughout the year so typically we should sell about 15 to 20% we have already sold 17% bear uh in the 23:31 23 minutes, 31 seconds FY26 only so fundamentally this is a trajectory we follow. This allows us a steady cash flow. This allows us to make 23:40 23 minutes, 40 seconds sure that we have basically a coverage towards the cost to complete and also this allows us basically in the situation like now when there are 23:49 23 minutes, 49 seconds inflationary tendencies that we can repric the unsold goods to cover for the inflation input post inflation. So this 23:58 23 minutes, 58 seconds is a philosophy largely that we have been following in terms of a sale typically in most of our projects and 24:05 24 minutes, 5 seconds this is what we'll do and if there is any small mismatch during this period we have the financing lines the 24:11 24 minutes, 11 seconds construction finance lines which are well intact and that allows us to draw the money for any kind of a mismatches or the shortfall at any point over time. 24:23 24 minutes, 23 seconds Over the last two years, our experience is that we are not required to draw on 24:31 24 minutes, 31 seconds the construction finance lines as much as that we have contracted for given the good amount of our sales. To answer your 24:38 24 minutes, 38 seconds question, basically in case there is any reduction in the sales or there is any change in the situation which of course we don't foresee, then our construction 24:47 24 minutes, 47 seconds finance lines have that kind of a buffer built in. 24:53 24 minutes, 53 seconds Okay. And so our uh second question was if you uh see a PPT slide number between 25:01 25 minutes, 1 second the fourth forthcoming projects as measure of premium and emerging premium segment. I just wanted to know is this 25:09 25 minutes, 9 seconds the segment where we are seeing a major shift happening and do these segments have the highest return ratios or 25:17 25 minutes, 17 seconds margins for us as a keystone as a whole. 25:26 25 minutes, 26 seconds So uh look emerging premium I think we have given the labels also on the slide 16 itself. The emerging premium starts 25:34 25 minutes, 34 seconds from 1 to 3 million 10 to 30 million 1 cr to 3 cr and largely a township project in the tane fits into this 25:42 25 minutes, 42 seconds emerging premium and then thereafter basically 3 to 7 and 7 to 15 crores and you are right basically 94% of our 25:51 25 minutes, 51 seconds forthcoming pipeline is into the emerging premium to the premium to super premium uh but then that only allows us 26:00 26 minutes to have the have the product In our category we have a sort of a emerging premium which is 1 to three cr 3 to 26:07 26 minutes, 7 seconds seven crores is typically the sweet spot we see the larger chunk of basically the demand and also basically these are the 26:15 26 minutes, 15 seconds projects where there is a good sale and then uh there is a good demand and traction and the margins are also good. 26:21 26 minutes, 21 seconds So that is how fundamentally we are present across the price points. 26:28 26 minutes, 28 seconds Okay. And my uh third question is uh you write in your PPD that the redevelopment 26:35 26 minutes, 35 seconds is a low low investment and a higher kind of business. So just wanted to know what what are the key risks according to you see in the redevelopment business. 26:47 26 minutes, 47 seconds What is the key? 26:49 26 minutes, 49 seconds Actually Rashad uh you were one of the pioneers of redevelopment uh and we've been doing redevelopment since the year 26:57 26 minutes, 57 seconds 2000. If you're asking a general question, what are the risks? Plenty. 27:01 27 minutes, 1 second People don't know what redevelopment is all about, but everybody's getting on this gravy train only because it looks very very attractive. What are the risks related to Ramji? I think very very 27:10 27 minutes, 10 seconds limited because you know with a 25 year track record of putting together more than 2,500 families in their new homes. 27:18 27 minutes, 18 seconds I think we are we are one of those who have made a proper SOP on the entire redevelopment front. And like I mentioned in my in my uh uh presentation 27:27 27 minutes, 27 seconds that a 1 lakh 30,000 cr opportunity only exists in redevelopment by 2030. And uh we believe that given the consolidation 27:36 27 minutes, 36 seconds in the market which again I kind of presented that you know we've moved from 1 to 2% and we're looking at 5% of the total market size of MMR as it exists 27:44 27 minutes, 44 seconds today uh for our company. So basically I think um we we are probably one of the 27:51 27 minutes, 51 seconds most well poised to take advantage of this entire growth and in the short term 27:58 27 minutes, 58 seconds uh if if you ask me uh we're doing extremely well with uh five uh cluster redevelopments in our in our uh you know 28:07 28 minutes, 7 seconds portfolio and with a lot of uh uh redevelopments uh that we are taking nowadays. We're moving towards the 28:15 28 minutes, 15 seconds larger ones because um they allow for us to be able to you know engage our ability and creativity to a much greater fold. 28:31 28 minutes, 31 seconds Yeah, I'm done. 28:35 28 minutes, 35 seconds Thank you. Ladies and gentlemen, if you wish to ask questions, you may please press star and one. 28:42 28 minutes, 42 seconds Our next question from the line of Ronard Sioni with ICIA securities. Please go ahead. Yeah. 28:48 28 minutes, 48 seconds Hi sir and thank you for the opportunity. Uh and congratulations on good set of numbers. Uh sir on the 28:56 28 minutes, 56 seconds commercial or annuity front uh what is your you know aspirations like what is the current uh lease income you are 29:03 29 minutes, 3 seconds generating and what kind of uh income you are targeting over say medium to longer term from the as you said that 29:10 29 minutes, 10 seconds you are going to build an energy portfolio right thanks thanks that someone asked me how do you feel so I told him I'm on 29:19 29 minutes, 19 seconds top of the world because of all the all the all that we have achieved in the past and uh you know if if you if you 29:27 29 minutes, 27 seconds really look at it uh backed up with what we have done in the past uh and and what we have planned for the future where the 29:35 29 minutes, 35 seconds entire team is aligned we're talking about becoming a 10,000 cr uh pre-sales company and in that the stability part 29:43 29 minutes, 43 seconds which is where which is where we want to kind of be our aspirations is to rise to about 100 crores I know it's a small number but 100 crores to start off with by 2030 30. 29:54 29 minutes, 54 seconds Okay. Um and and sorry Ron if I may if I may just add further. See we don't want to put any kind of pressure on our 30:02 30 minutes, 2 seconds balance sheet or increase our debt and you know commercial as we all know is a hugely uh debt funded uh debt funded uh uh you know product. So what we want to 30:11 30 minutes, 11 seconds do and this is the strategy that we want to engage is that at least as far as the costs are concerned we want to kind of 30:18 30 minutes, 18 seconds uh you know recover them from the assets that we develop and then hold on to what it is that would be forming a part of our profit or if we want to keep some 30:27 30 minutes, 27 seconds equity engaged in it um and then holding on to that part of the asset uh for for for the longer term. So that's how it's going to be only. 30:38 30 minutes, 38 seconds So you mean to say uh you mean to say the partial would be a sale component and partial would be annut generating or 30:46 30 minutes, 46 seconds uh is it like that that some portion would be a strata sale and some portion would be leased. So your first part was absolutely right. 30:55 30 minutes, 55 seconds Some part we will sell but slightly different. we want to sell to probably uh larger funds or larger HNIs 31:04 31 minutes, 4 seconds which we will do by actually managing the property. So we want to do some pre u pre-leases and on the basis of which on the back of which we want to go ahead 31:12 31 minutes, 12 seconds and you know find a a larger investor to be able to hold on to uh some part of that asset so that when we want to reach it out in the future we're in a much 31:21 31 minutes, 21 seconds better position than trying to recover strata sales. Having said that, would we do strata sales? We are doing some strata sales already in in the 31:29 31 minutes, 29 seconds commercial projects that we have but going forward this is the kind of new uh new strategy that we want to undertake 31:36 31 minutes, 36 seconds and you can just wait to just add a yeah mean like currently Ronald these estimates are based on the commercial 31:44 31 minutes, 44 seconds projects we currently have. uh at the moment we have 3315 which has already been launched last year which uh Bhan 31:52 31 minutes, 52 seconds has mentioned that we are doing some amount of a strata or we are doing a strata sale in addition to that we have 2 million square ft coming up in tane in 31:59 31 minutes, 59 seconds phases uh of the 4 and a half million is 4 and a half million I my four and a half lakh square feet basically is 32:07 32 minutes, 7 seconds expected in the next financial year the third project that we have is at the tuari which is the praadvi so this 100 32:15 32 minutes, 15 seconds crores estimate we are speaking about is based on the estimate of what we are going to retain into 32:23 32 minutes, 23 seconds these projects. Uh we are consistently working in terms of augmentation of our pipeline on a commercial side and these 32:32 32 minutes, 32 seconds estimates will continue to stand revised as we basically build up the further pipeline. 32:38 32 minutes, 38 seconds Yeah. Great. And secondly on you know sir if you can explain since we have backed quite a uh you know four to five 32:46 32 minutes, 46 seconds cluster redevelopment projects. So uh what is the cash outflow visav you know compared to a single redevelopment building and you know cluster 32:54 32 minutes, 54 seconds redevelopment uh you know uh apart from the timeline which it gets to close a cluster redevelopment would be much 33:02 33 minutes, 2 seconds larger but at the in terms of the outflows so does it uh is it the same with respect to individual redevelopment 33:09 33 minutes, 9 seconds or is it some different with respect to cluster redevelopment? 33:13 33 minutes, 13 seconds Thanks thanks for that also Ronald you know basically fortunately for us without calling it cluster we've already done cluster redevelopments so our 33:21 33 minutes, 21 seconds seasons was about u two 200 odd members 168 to be precise members who are already there along with one consumer 33:29 33 minutes, 29 seconds society and it was about 15,000 mters our which is at elements was about 480 33:37 33 minutes, 37 seconds members and about 20,000 plus square meters so we had already done is and I 33:43 33 minutes, 43 seconds think our our uh uh our investment uh uh philosophy stays the same. We're talking 33:49 33 minutes, 49 seconds of 10% 11% whatever or thereabouts being the investment if if it's a very large project like the one that GDP is where 33:59 33 minutes, 59 seconds it's about 11 and a half acres we have the option of doing it in two phases. So then you know each phase would have an investment and then then kind of you 34:06 34 minutes, 6 seconds know uh going forward uh equity should not be should not be more than 10 or 11% of the project GDV is the way we've kind 34:15 34 minutes, 15 seconds of programmed ourselves and again uh you know we're very selective in the kind of locations as well as the type of project that we take and we've been extremely 34:24 34 minutes, 24 seconds fortunate to identify u the right projects and you know have the have the ability to acquire them at the right 34:30 34 minutes, 30 seconds price. Very good sir and thank you and um best of luck for the future. Thank you. 34:37 34 minutes, 37 seconds Thanks. Thanks. Thanks. 34:40 34 minutes, 40 seconds Thank you. Our next question comes from the line of Vitik Shik from OneUp Financial. Please go ahead. 34:47 34 minutes, 47 seconds Hi. Uh good evening sir and uh congratulations on a great set of numbers. Uh so couple of questions from 34:54 34 minutes, 54 seconds my end. So firstly uh you have presented a very interesting slide uh in your presentation on the margins uh front uh 35:02 35 minutes, 2 seconds between the legacy projects and the new projects. Uh so just wanted to understand what is the definition of legacy projects here and how many projects are uh pending in this bucket. 35:13 35 minutes, 13 seconds Uh hello please go ahead. You are audible. Yeah. 35:24 35 minutes, 24 seconds Yeah. Sorry. I think I was on mute when I was speaking. So I I hope this week I am audible now. Yeah. Yeah. Yes, you are audible. 35:32 35 minutes, 32 seconds So I think u legacy projects are typically the projects fundamentally like crown that we have been mentioning 35:40 35 minutes, 40 seconds uh vir that we have done basically affordable housing uh in in in in partnership with the HDFC. HDFC of course got the exit in 2020. 35:51 35 minutes, 51 seconds uh these are the ones which are legacy we have uh as we have been saying that overhang of the legacy projects is 35:59 35 minutes, 59 seconds largely over in the current year if you look at my revenue bifurcation 62% of our revenue is coming from the legacy 36:06 36 minutes, 6 seconds projects and 38% only is coming from the current projects in the FY27 36:14 36 minutes, 14 seconds all my legacy projects would have been over and my revenue profile in the FY27 is expected to be 12% % from the legacy 36:22 36 minutes, 22 seconds and 88% from the current projects and the current projects as we have been maintaining they follow the margin 36:28 36 minutes, 28 seconds trajectory wherein 35% gross margins 20% a bit margins after taking out all quotes is the kind of a margin profile 36:37 36 minutes, 37 seconds we expect so fundamentally these are the counted ones there is one or two projects but that is going to form part 36:44 36 minutes, 44 seconds of only 12% of the anticipated revenue in the next year which will be attributed towards the legacy and 88% 36:51 36 minutes, 51 seconds will be the current projects right so FI27 will be the last year of these low margin projects and FI28 will 36:58 36 minutes, 58 seconds be uh all the projects at 35% gross margin and 20% equity yeah m but I will say that it will be at number one that you are very right that 37:07 37 minutes, 7 seconds it is the fi 27 is going to be the last year and that to be that to the insignificant part in the revenue uh pile 37:15 37 minutes, 15 seconds the second part is that after that I will not say are the projects necessarily have to have the 35% gross margin. It is a blended gross margin. 37:23 37 minutes, 23 seconds Right. Right. 37:24 37 minutes, 24 seconds But we have always maintained that the projects towards the affordable and mid side are more tending towards 30 and 37:31 37 minutes, 31 seconds towards the luxury and super premium side more tend towards the 40. But the blended margins you're right in saying that it will be about 35%. 37:39 37 minutes, 39 seconds Right sir and just one follow up on this. What is the kind of inventory we have in crown and other uh legacy projects? 37:47 37 minutes, 47 seconds So crown my total inventory is about 180 crores means like we are in the last leg and over the next two quarters we would 37:54 37 minutes, 54 seconds have sold basically whatever this last leg of the residual inventory is there and I'm also hoping that this inventory is not going to contribute to the low 38:03 38 minutes, 3 seconds margins because we will be selling them at the current rates right uh apart from that we have about 450 crores of the 38:10 38 minutes, 10 seconds sold receivable in the crown so coupled with the sold receivable of 450 crores and about 180 crores of the inventory to 38:18 38 minutes, 18 seconds be sold. Uh by and large over the next next two quarters it means the current quarters and over the next two quarters 38:26 38 minutes, 26 seconds that is by December we expect almost basically a complete exit from the crown in terms of the cash flows as well as the sales. 38:35 38 minutes, 35 seconds Sir and sir uh just uh probing on the margins part further will this uh have an impact on the OCF uh in the future from FI27 onwards. 38:47 38 minutes, 47 seconds So look FI27 OCF we have not got a chance to speak about that as a part of the discussion earlier we are expecting 38:54 38 minutes, 54 seconds the OCF in FI27 close to about 1,000 crores. Hopefully it will be little over 1,000 crores. So all the OCF u because 39:03 39 minutes, 3 seconds uh last year was a heavy year in terms of our launches. Now it is like the uh virtual virtual cycle. Every year we are 39:11 39 minutes, 11 seconds launching, every year we are basically progressing, every year we are selling and every year we are collecting and completing. So this one time pick up in 39:20 39 minutes, 20 seconds the launches in FY25 and FY26 is over. 39:26 39 minutes, 26 seconds Now I will say it will be a continuous uh the continuous basically throughput and a continuous output. So thereby 39:34 39 minutes, 34 seconds basically the OCF will continue to improve as we go forward. This year we have generated 700 crores. Next year I expect it to be little over 1,000 crores 39:42 39 minutes, 42 seconds but I would like to guide it at about 1,000 crores. Okay. 39:47 39 minutes, 47 seconds And uh sir uh one question uh on the 10,000 cr pre-sale target in FI30 uh what would be the split between 39:56 39 minutes, 56 seconds residential and commercial? Would commercial be a significant part? 40:02 40 minutes, 2 seconds I think Bhan has already mentioned that in the commercial we will be selling about let us say 60 odd% or 65 odd% to 40:10 40 minutes, 10 seconds meet the cost of developing a commercial. 40:13 40 minutes, 13 seconds uh so fundamentally if you look at the total GDV of the commercial in my forthcoming pipeline and in my ongoing pipeline uh let us say that on the 40:22 40 minutes, 22 seconds ongoing pipeline the total unsold is about 835 crores and on the forthcoming 40:29 40 minutes, 29 seconds side it is 6,500 crores right so it is roughly about 7,500 crores uh I will say 40:36 40 minutes, 36 seconds that this forthcoming we may not be launching everything over the next four years uh we may be assuming that we will be launching half of profit over the next four years. It is about 4,000 40:45 40 minutes, 45 seconds crores that we are looking at over the next four years. 40:49 40 minutes, 49 seconds So roughly about 80% of that about 3,000 odd crores basically over the about 1,000 cr you can take on an average basically is the contribution coming 40:57 40 minutes, 57 seconds from the commercial as it matures basically in terms of both tane and 3315 to be launched fully and further and further. Yeah. 41:06 41 minutes, 6 seconds So basically around 10 uh sorry to interrupt real quick. We request you to please rejoin the queue if you have any further questions. Thank you. 41:14 41 minutes, 14 seconds Ladies and gentlemen, you are requested to please restrict your questions to two per participant. If you have any further questions, you may please rejoin the 41:22 41 minutes, 22 seconds queue. Our next question is from the line of Sorab Gildera with JM Financial. Please go ahead. 41:29 41 minutes, 29 seconds Yeah. Hi. Uh thank you for the enhanced disclosures on margin countries. I just have one question on slide 48. 41:38 41 minutes, 38 seconds uh the emerging and nonremium segments have a uh significantly lower margins in the sold bucket compared to uh what 41:46 41 minutes, 46 seconds they're expected to achieve in the unsold uh uh inventory. So can you please explain this gap and uh since these projects have uh close to uh 30 41:55 41 minutes, 55 seconds billion revenue recognition do you think this can still act as a drag for performance? 42:02 42 minutes, 2 seconds I think you are referring to the slide number 47. Am I right? Yes. Yes. 42:08 42 minutes, 8 seconds And I'm sorry uh you said that which segment basically that you had a emerging and mass 42:16 42 minutes, 16 seconds emerging and mass premium basically we are saying that uh we have a 10% aida uh 42:24 42 minutes, 24 seconds on the sold side and 13% on the mass market side. Emerging premium as I told you that it's largely reflective of uh 42:33 42 minutes, 33 seconds the tane township that we have and a mass market is a combination of what we are doing at Domeli as well as what we 42:41 42 minutes, 41 seconds are doing at Vir. Uh I think in our previous interaction we told that VR we have signed up the JDA with the fellow 42:48 42 minutes, 48 seconds developers over there by virtue of which we have ced certain amount of the one-time deposit and the revenue share 42:55 42 minutes, 55 seconds ranging from 25 to 30%. It has just started mean like this year the contribution of the revenue shares from 43:03 43 minutes, 3 seconds the virus is very insignificant but as we progress out of the 6.2 two uh 43:11 43 minutes, 11 seconds billion that is 620 crores about 200 crores basically is coming out of the vir GDS and that contributes about 60% a 43:20 43 minutes, 20 seconds bit because fundamentally my cost is only the approval cost and that helps it to take this margins from the 13% up to 29%. 43:30 43 minutes, 30 seconds uh on TH side I think the contribution on the sold receivable is more from the inventory which has been sold closer to 43:37 43 minutes, 37 seconds the launch and as basically we are progressing we expect basically pricing to readjust to the market reality and 43:45 43 minutes, 45 seconds thereby allowing us to realize the better margins from the unsold inventory and that is what explains basically the 43:52 43 minutes, 52 seconds higher margins coming out of the unsold inventory. Okay sir. Uh thank you so much. 44:01 44 minutes, 1 second Thank you. Our next question is from the line of Akash Gupta from Rome. Please go ahead. Hi. Am I audible? 44:09 44 minutes, 9 seconds You are audible sir. You may proceed. 44:12 44 minutes, 12 seconds Yeah. Uh hi sir. Sir my first question is from the residential demand perspective with ongoing 44:21 44 minutes, 21 seconds the crisis in the Middle East. Are you seeing any uh changes in footfalls or conversions? 44:31 44 minutes, 31 seconds Uh that's my first question. What's your thought on that? 44:36 44 minutes, 36 seconds Uh so uh Akash I can only rely on what has happened so far and going farther forward we all all discovering. So our 44:45 44 minutes, 45 seconds last quarter like we mentioned was a 1346 crores the highest you know pre-sales that we've done in a quarter and obviously the last quarter of the 44:53 44 minutes, 53 seconds year if you see cyclical nature of our business the last quarter is always the best and then the first quarter always peters off and and it generally becomes 45:01 45 minutes, 1 second a lot slow yet we we do see that there's a lot more 45:08 45 minutes, 8 seconds push right now that needs to be done especially in the segments where you know you have the 1 to three cr rupee homes But having said that we've not 45:16 45 minutes, 16 seconds seen any slowdown in the premium uh you know uh premium and luxury uh we are also seeing a good enough interest and 45:25 45 minutes, 25 seconds the pipeline seems to be robust for let's say buyers to come and visit and see the site. Obviously the buying 45:32 45 minutes, 32 seconds decisions could take a little longer like I told you in the first quarter of the year we've always seen that happen. 45:39 45 minutes, 39 seconds Understood. Uh my second question is your presence in the super luxury redevelopment space. So in the last 45:48 45 minutes, 48 seconds quarter I think Oberoy closed three uh redevelopment deals in Nepi Road, Malabar Hill etc. And I see your 45:57 45 minutes, 57 seconds forthcoming projects. I don't see I don't think I see any super luxury presence. So what's your thought there? 46:06 46 minutes, 6 seconds how are we going to expand our presence there? So just wanted to know your thoughts on that. 46:13 46 minutes, 13 seconds So without without giving names I can tell you that um you know because because the DA is still under uh under 46:21 46 minutes, 21 seconds finalization or under signing. Um I would not like to give names but just tell you that we are very active in the super premium whether 46:29 46 minutes, 29 seconds that be in the city whether that be in Bandra whether that be in Berley. Um so we are we are definitely there and we 46:37 46 minutes, 37 seconds believe that of the five names that that are known to do I would say high-end 46:43 46 minutes, 43 seconds developments in Mumbai we are definitely one of those that is sought after and uh I I think closer to quarter three of 46:52 46 minutes, 52 seconds this year you you'll hear from us a little more and by the way in in our ongoing we have 47:00 47 minutes plenty of them Akash uh we have cliff we have bandan We have Panama, Panorama, 47:08 47 minutes, 8 seconds um we have Crescent. Uh all these range from you know I would say 8 to 10 crores going all the way up to 150 crores also. 47:20 47 minutes, 20 seconds Understood sir that that's the question I had. Thank you so much. 47:25 47 minutes, 25 seconds Thank you. Once again ladies and gentlemen we request you to please limit yourselves to two questions only. You may rejoin the queue if you have any 47:32 47 minutes, 32 seconds further questions. Our next question is from the line of Pritesh Chedda from Lucky. Please go ahead. 47:39 47 minutes, 39 seconds So on the slide 36 uh seek your comments in terms of uh the correction efficiency how should we look at it because it's deteriorating everywhere. 47:52 47 minutes, 52 seconds Uh one way is to look at that it is deteriorating and the other way to look at is that 48:00 48 minutes that we are launching well that's like um and you know that as the composition of the uh newly launched products in the 48:09 48 minutes, 9 seconds overall pie sales is higher the collection efficiency may look lower. Uh last year we have launched about 9,800 48:17 48 minutes, 17 seconds crores. The year before that we lost about 5,000 crores and the year before we lost 3,400. So fundamentally year 48:25 48 minutes, 25 seconds before last we grew at 70% last year we have grown about 100%. So as basically the launch pipeline is increasing the 48:34 48 minutes, 34 seconds larger share of the pieces coming from the newly launched products uh the collection efficiency appears to be low. 48:42 48 minutes, 42 seconds uh but believe me that we are able to collect well uh most of the project basically our collection efficiency is 48:50 48 minutes, 50 seconds good I think I tried to explain through the other chart also that how the how the pre trajectory and so is the 48:58 48 minutes, 58 seconds collection my expectation is that from this year onwards the collection efficiency should be in the range of 75 to 80%. 49:07 49 minutes, 7 seconds It's because your launch number becomes flat that's why right? 49:10 49 minutes, 10 seconds Uh no it is not small even this year also I think the guidance Mr. Irani has given is 8,000 crores. So 49:18 49 minutes, 18 seconds it's a flatter number right. So you had about 9 8 to 9,000 cr. Last year we have a similar number this year. 49:24 49 minutes, 24 seconds Yeah then last year there was a one of bigger number in the launches. We launched the band stand which was 3,100 crores and that was one of the reason 49:33 49 minutes, 33 seconds that that trend up the number to 9,8 and because of this year 8,000 crores mean like u xb we still grow 49:42 49 minutes, 42 seconds and how should we look at the net debt number I think the net debt historically now 49:50 49 minutes, 50 seconds for the last three years we have been in a negative territory means that we are the net cash company uh obviously the 49:56 49 minutes, 56 seconds debt will grow uh as we launch more projects and as they mature basically uh there will be more dispersals coming 50:05 50 minutes, 5 seconds from the construction finance lines that we have tied up. uh but having said that we have always guided that earlier we 50:13 50 minutes, 13 seconds used to guide that our debt to equity ratio will be 1 is to1 and then we have further raised the bar for ourselves and we have been saying that we will be now 50:21 50 minutes, 21 seconds 0.75 is to1 uh my expectation is that we will be well within the guidance that we have been giving 50:30 50 minutes, 30 seconds uh can you share a peak number at least uh for two years peak that number I can tell you mean like just keep the commercial part side 50:39 50 minutes, 39 seconds it should not cross about 13400 crores as far as FI27 is concerned and uh FI28 50:47 50 minutes, 47 seconds I will speak to you more towards the beginning of the FI28 rather than now this 1300 is net debt or gross debt 50:55 50 minutes, 55 seconds number gross debt gross debt everything I speak is in the gross debt this is basically so basically versus 800 crores 1300 51:03 51 minutes, 3 seconds crores yeah 800 726 crores going to about 13 to 14 in the course. Yes. 51:11 51 minutes, 11 seconds Okay. Thank you. 51:14 51 minutes, 14 seconds Thank you. Our next question is from the line of Rishid Sha from Access Capital. Please go ahead. 51:21 51 minutes, 21 seconds Yeah. Uh thank you for the opportunity sir. Uh so uh wanted your thoughts on the business development. So for the incremental BD that we are targeting any 51:29 51 minutes, 29 seconds segmental preference as to you are looking more at luxury or premium or rather a mix of mid expiration made 51:37 51 minutes, 37 seconds affordable as well and uh relating to the same with your 10,000 cr target that you have how do you see the mix developing and how does it affect our 51:45 51 minutes, 45 seconds margin outlook so let me just go back to what I said earlier uh you know to to achieve the 51:53 51 minutes, 53 seconds 10,000 crores which is a 4year target from now 2030 we will have to do three or four things. 52:00 52 minutes One is be a scale multiplier by improving the redevelopment in the clusters which is the larger development 52:08 52 minutes, 8 seconds that we do because those will allow us to kind of build and generate more from one single location at the same point of 52:15 52 minutes, 15 seconds time also improve the number of type of projects that we have. So senior living could be added on. Uh plotted 52:22 52 minutes, 22 seconds developments will increase. Velocity multiplier will happen as we enter various other towns or cities right because um today we do a run rate of 52:31 52 minutes, 31 seconds about a thousand crores from from one township development. Imagine us having a township in three or four different locations which may or may not have the 52:40 52 minutes, 40 seconds same value but even if they even if they do manage to do a 600 700 crores pre-sale in each or thereabouts we'll be touching about 2,000 crores from them 52:49 52 minutes, 49 seconds and then of course stability multiplier which is more related to commercial etc leasing assets uh which we already mentioned um we on our BD usually have a 52:58 52 minutes, 58 seconds fair mix of what it is that we target and like I said the premium and luxury is something definitely that we continues to keep working towards. But a 53:07 53 minutes, 7 seconds very large part of our BD continues to be in the 1 to three cr or 1 to 4 crore rupee kind of uh segment price because 53:15 53 minutes, 15 seconds that is the largest part of the market that is continually on an upswing and also allows u you know developers to go 53:23 53 minutes, 23 seconds ahead and make money unlike affordable which is probably the largest but uh we do not see much happening on that front 53:31 53 minutes, 31 seconds till such time as the government comes up with uh a reasonable uh ability ility to allow developers to make money out of 53:38 53 minutes, 38 seconds doing affordable housing. So we will not we will not focus over there. 53:45 53 minutes, 45 seconds Uh fair uh good to know that and uh secondly uh uh on the sales are the 53:52 53 minutes, 52 seconds pieces that we have done this year if you can just give me a mix of how much was from new launches and how much was from sustainance. 54:06 54 minutes, 6 seconds So out of the total sales of 4,022 crores, 1 1620 crores is from the new 54:13 54 minutes, 13 seconds launches and the balance 2,400 crores is from the uh pre-existing pipeline that we had at the start of the year. 54:22 54 minutes, 22 seconds Okay, great. Uh thanks for all your answers. All the best. 54:28 54 minutes, 28 seconds Thank you. Our next question is from the line of Krisha from Anandraati. Please go ahead. 54:36 54 minutes, 36 seconds Taking my question. 54:40 54 minutes, 40 seconds So without you audible now a little better. Yes. 54:51 54 minutes, 51 seconds Yeah. So potentially volatility in commodity prices. Are you seeing any early signs of pressure on input cost, steel, aluminium, glass and how much of 55:00 55 minutes the current and forthcoming project pipeline has cost of production building? 55:05 55 minutes, 5 seconds So Chris what an amazing question. Uh yes yes yes. So obviously given the present situation there are two things that are happening. One is obviously 55:14 55 minutes, 14 seconds costs are going up in terms of the material supply but there's also a shortage if I may say of availability of 55:21 55 minutes, 21 seconds materials right so anything that we are relying upon uh internationally other than of course gas and you know oil and 55:28 55 minutes, 28 seconds gas etc are also creating huge amount of delays and if the dollar continues to spike then that'll be a further increase 55:37 55 minutes, 37 seconds in the cost fortunately for us at our strategy of you know selling about 35% 55:44 55 minutes, 44 seconds of the stock in the first year and then about 40% of the stock as the as the project continues allows us good amount 55:51 55 minutes, 51 seconds of shock absorbing uh with regards to the increase in costs. If you ask me how the cost increase today are they roughly 55:57 55 minutes, 57 seconds in the region of about 8 to 13%. Uh but not overall 8 to 13% in certain items etc which leads to an overall cost 56:06 56 minutes, 6 seconds increase of about 5%. Uh but we are we are well insulated because uh you know we have as you can see from our unsold 56:14 56 minutes, 14 seconds already launched stock we will continually keep selling and this will allow us to absorb whatever increase in increase in costs take place. 56:23 56 minutes, 23 seconds Oh thank you that answers my question and yeah all the best in the future. Thank you. 56:30 56 minutes, 30 seconds Thank you. Our next question comes from the line of Rajumar Vidyanatan from Arcane Invest. Please go ahead. 56:38 56 minutes, 38 seconds Hello, can you hear me? You are audible. So sir, you may proceed. 56:43 56 minutes, 43 seconds Yeah, thanks for the opportunity. So just couple of questions. So first one, you mentioned that you're uh reverting to percentage of completion method. Uh 56:51 56 minutes, 51 seconds is it uh effective financially at 27 or you have already done it in Q4? 57:03 57 minutes, 3 seconds Yeah. So Rajar um we we uh adopted the percentage of completion method for 57:11 57 minutes, 11 seconds accounting the revenue from 14 2025 u and I will tell you the transition 57:18 57 minutes, 18 seconds plan how we adopted it uh as on 14 2025 there were ongoing projects uh all those 57:26 57 minutes, 26 seconds ongoing projects at that point of time or majority of the ongoing projects that we we were having at that point of time we continued with the completion method 57:34 57 minutes, 34 seconds Okay. And all the projects which were launched let us say in the last 6 months or so and all the subsequent launches we 57:43 57 minutes, 43 seconds have adopted the percentage completion method. Uh by virtue of this this year revenue of 2600 crores 80% of the 57:51 57 minutes, 51 seconds revenue has been accounted for by the CCL method that is a completion method and only 20% has come from the 57:59 57 minutes, 59 seconds percentage of completion. uh in the SY 27 this ratio will reverse in the sense that uh the 80 will become basically 40% 58:09 58 minutes, 9 seconds uh only 40% will come from the residual completion method and the 60% of our revenue in the FI27 will be coming from 58:16 58 minutes, 16 seconds the percentage of completion and from the FI28 onwards 100% of the revenue will be in the percentage of completion 58:23 58 minutes, 23 seconds method I would have completed the full transition okay okay got it sir sir and how much acceleration will happen uh in terms of 58:32 58 minutes, 32 seconds uh your screens because of this change and look exploration uh you may not be 58:39 58 minutes, 39 seconds able to see a significant exploration there could be some exploration because you have to also appreciate and understand that in the completion method 58:49 58 minutes, 49 seconds I am getting a one-time pick up in the revenue in the year of completion like in this year basically under the 58:55 58 minutes, 55 seconds completion method basically uh I have got a one time basically revenue any recognition of almost about uh uh almost 59:03 59 minutes, 3 seconds about basically 50,000 cr. So uh exploration will start basically from maybe little exploration next year but 59:11 59 minutes, 11 seconds fundamentally the exploration in the revenue will start from 28 onwards. 59:17 59 minutes, 17 seconds Okay, got it sir. So the second question is you mentioned you are targeting 20% from the new projects. So I just want to 59:24 59 minutes, 24 seconds know how much of this uh I mean what would be your kind of uh guidance on your ROC and on the return of equity for FI 27 and 28. 59:38 59 minutes, 38 seconds uh we will provide that we may like uh at this point of a time we have not basically come up with a number to guide 59:47 59 minutes, 47 seconds on guide on uh we have given a guidance in the margins we have given a guidance in the revenue but on the ro we will we 59:55 59 minutes, 55 seconds will basically guide on at the moment we have not been guiding on these parameters okay and sir can you guide on the 1:00:02 1 hour, 2 seconds finance cost the this current quarter you had a 33 cr finance cost so uh what what would be your guidance for FI27? 1:00:11 1 hour, 11 seconds So look my current debt that is 755 crores. I am saying that at peak basically at the end of the year it may go to 1,400 crores. So if you take on an 1:00:20 1 hour, 20 seconds average basically for the whole year it is about 1,000 cr and taking the average cost of debt at about 9 and a half% for the whole year it should be about 95 cr. 1:00:29 1 hour, 29 seconds That's like that will be the sort of mathematics. 1:00:33 1 hour, 33 seconds Okay sir. Thank you so much. All the best. 1:00:38 1 hour, 38 seconds Thank you. Our next question is a follow-up from Ritwick Shik from OneUp Financial. Please go ahead. 1:00:45 1 hour, 45 seconds Hi. Uh, sir, just one question. Uh, sir, how was the response for the band project? Bandan Karma. 1:00:54 1 hour, 54 seconds It's it's uh it's been very good. Um, wait for the wait for the operations results of the quarter. Um, so as it 1:01:02 1 hour, 1 minute, 2 seconds happens, that's a very exclusive project. Um we have only 27 apartments of which we're almost about I would say 1:01:12 1 hour, 1 minute, 12 seconds close to 30% sold out of the Okay 30% of the GDV sold 1:01:19 1 hour, 1 minute, 19 seconds already I I would like to say more or less yes okay sir thank you and all the best for 1:01:26 1 hour, 1 minute, 26 seconds FI25 thank you thank you thank you we have no further questions ladies and gentlemen I would now like to 1:01:34 1 hour, 1 minute, 34 seconds hand the conference over to the management for closing comments. Over to you sir. 1:01:40 1 hour, 1 minute, 40 seconds Thank you everyone. Um you know you've been with us on this journey and we look forward to many more exciting growing 1:01:48 1 hour, 1 minute, 48 seconds times in the future. Thank you for all the trust and faith you have in us. You can count on us on a continual basis to keep working towards making all our dreams come true. Once again, thank you. 1:01:58 1 hour, 1 minute, 58 seconds Have a lovely evening. Thank you. Bye. 1:02:04 1 hour, 2 minutes, 4 seconds On behalf of Access Capital Limited, that concludes this conference. Thank you all for joining us.