Lodha Developers Limited — Q4 FY26

Lodha Developers Ltd Q4 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=Pr2qsk1G92M Published: 2 weeks ago

0:01 1 second Ladies and gentlemen, good morning and welcome to the Loa Developers Limited Q4 FY26 earnings conference call. 0:10 10 seconds As a reminder, all participant lines will remain in the listenon mode and there will be an opportunity for you to ask questions after the presentation concludes. 0:20 20 seconds Should you need assistance during the conference call, please signal the operator by pressing star then zero on your touchstone telephone. Please note that this conference is being recorded. 0:33 33 seconds I will now hand the conference over to Mr. Chintan Tariq, co-head of investor relations for opening remarks. Thank you and over to you sir. 0:41 41 seconds Thank you Ikra and good morning everyone. Welcome to Luta Developers Q4 FR26 conference call. Today we have with us Mr. Abishek La MD and CEO, Mr. 0:53 53 seconds Shashir Gowan Modi, executive director finance, Mr. Sanjay Johan CFO, Mr. 0:58 58 seconds Akshhat Gupta, Deputy CEO, South Central Mumbai, Mr. Nishan Batim, Deputy CEO, Luxury, Mr. Anand Kumar, head investor 1:06 1 minute, 6 seconds relations. Now I would like to invite Abhishek to make his opening remarks. Over to you Abhishek. 1:13 1 minute, 13 seconds Thank you Chinta. Good morning everyone. Thank you for joining us today. 1:19 1 minute, 19 seconds I'm sure you've had the opportunity to look at our investor presentations and hence I will not go through the detailed 1:26 1 minute, 26 seconds numbers. I will keep my remarks focused on what we think is strategically most important and I'll use this time to give 1:35 1 minute, 35 seconds an overview of where the business stands, what we got right this year, our learnings and improvement areas and how we are thinking about the period going ahead. 1:46 1 minute, 46 seconds Starting with the macro backdrop, the global environment was particularly challenging last year. We started off 1:54 1 minute, 54 seconds with the IndiaPakistan situation followed by the US tariffs and thereafter the Middle East tensions. 2:03 2 minutes, 3 seconds The current escalations in the Middle East has definitely injected uncertainty into global trade, financial conditions and particularly the energy markets. 2:12 2 minutes, 12 seconds India is not immune. The growth forecast for the fiscal year has been moderately trimmed down but India's fundamentals 2:20 2 minutes, 20 seconds are meaningfully stronger than in previous external shock episodes. The rate cuts of the last year have are all are still working through the system. 2:31 2 minutes, 31 seconds Corporate and bank balance sheets are healthy and the demand side of the economy. Consumption, credit and government capex is holding up. 2:39 2 minutes, 39 seconds Specifically for housing, the structural drivers remain intact. GCC's added over 300,000 high skill positions in India in 2:47 2 minutes, 47 seconds 2025 alone. Wage growth across the broader economy has run at 9 to 10% for many years now and the same trend is 2:55 2 minutes, 55 seconds expected even this year. And the supply side continues to consolidate in the housing market around branded trusted 3:02 3 minutes, 2 seconds developers. These are not near-term tailwinds. They are the underpinning of a long expansion in the housing market 3:11 3 minutes, 11 seconds which we believe will drive India's conversion into a mid-inccome economy. 3:18 3 minutes, 18 seconds One thing I would like to share candidly is that March which was the peak of the Middle East news cycle did see select 3:26 3 minutes, 26 seconds deferral of closures as consumers looked at the situation around them and thought about what is the best time to make 3:34 3 minutes, 34 seconds their decision. We've already started seeing that housing has converted from into becoming a more preferred asset 3:42 3 minutes, 42 seconds class given its lower volatility and resilience and we believe that going forward 3:49 3 minutes, 49 seconds housing on the whole will be a net beneficiary of the situation in the Middle East particularly as Indians left 3:59 3 minutes, 59 seconds money out to the Middle East and Indians across the world look at India as a place where they would like to establish a permanent home or establishment. 4:14 4 minutes, 14 seconds This call comes at the anniversary of 5 years since our listing which was on the 19th of April 2021. 4:24 4 minutes, 24 seconds I don't want to let this important moment pass without reflecting on what the business has become. In fiscal 21, 4:32 4 minutes, 32 seconds which was the peak of COVID, we did 60 billion INR of pre-sales. In FY26, we 4:41 4 minutes, 41 seconds did 205 billion, a 28% kagger. More importantly, PAT has grown more than six 4:49 4 minutes, 49 seconds times over the same period, touching 34.3 billion this year with a 20% margin. Net debt, which stood at 3.5 4:58 4 minutes, 58 seconds times equity at IPO, is now at 0.3 times. We have grown at scale while sim 5:06 5 minutes, 6 seconds simultaneously deleveraging. That combination we believe is genuinely rare in this sector and it reflects both the 5:13 5 minutes, 13 seconds strength of our brand and the discipline of our capital allocation. I must also thank all the investors who have 5:21 5 minutes, 21 seconds believed in us and stood by us during these five years and enabled us to create the value and the business that has been created. 5:32 5 minutes, 32 seconds The one other number that I want to highlight is market share. Despite all the growth that we've had, we are 5:38 5 minutes, 38 seconds currently at about 3.5% of primary housing sales in the top six cities. 5:44 5 minutes, 44 seconds This is the clearest statement I can make about the long runway ahead. 5:51 5 minutes, 51 seconds Coming to fiscal 26, fiscal 26 was a strong year operationally in spite of the macro 6:00 6 minutes challenges that we spoke about and the effect of the environmental clearances delay which affected us on the 6:08 6 minutes, 8 seconds construction side and in terms of new launches in the first three quarters of the fiscal pre-sales of 205 billion up 6:16 6 minutes, 16 seconds 16% with every single quarter delivering its best ever performance. 6:21 6 minutes, 21 seconds Q4 was the strongest quarter in our history at about 58.9 billion of pre-sales, up 23% yearonear. Collections 6:30 6 minutes, 30 seconds grew 5% for the year. Operating cash flow was approximately 71 billion. Our 6:37 6 minutes, 37 seconds financial revenue grew 21%, adjusted EBIDA grew 14% and PAT grew 6:44 6 minutes, 44 seconds 24%. And importantly, PAT margin touched 20% for the first time. The slight compression in EBIDA margin relative to 6:52 6 minutes, 52 seconds last year was purely a function of lower land sales. The underlying development margin at 33% of the full year remains 6:59 6 minutes, 59 seconds healthy and our Q4 embedded margin was around the same number. 7:05 7 minutes, 5 seconds Business development was particularly a standout. We added 12 projects with INR 600 billion of GDP 2.4 times our own 7:14 7 minutes, 14 seconds guidance. This were not acquisition for growth stake. These are highquality, well ststructured transactions that reflect the continued flight of land 7:23 7 minutes, 23 seconds owners and partners to developers they trust. As of 1st April 2026, our available GDP for sale is 7:31 7 minutes, 31 seconds approximately INR2 trillion excluding the long-term land in our townships which will not be used in the next 5 7:38 7 minutes, 38 seconds years. This gives us exceptional visibility and it means that we can meaningfully reduce business development capbacks over the next two years with 7:46 7 minutes, 46 seconds the natural result being a significant step up in free cash flow. 7:56 7 minutes, 56 seconds Touching upon our key strategic initiatives last year, the NCR we 8:03 8 minutes, 3 seconds entered in fiscal 26 with acquisition uh of two land pieces under the JD route 8:12 8 minutes, 12 seconds and I want to explain how we think about it. NCR is India's second largest housing market. It has historically lacked the kind of large trusted 8:22 8 minutes, 22 seconds developers that can set a new benchmark for quality and customer experience excluding of course DF. 8:28 8 minutes, 28 seconds We think therefore that there is a large and significant opportunity in the NCR if we can pull off our operational and 8:37 8 minutes, 37 seconds brand capabilities in the same way that we have done in other markets. The two projects that we've signed are in Gorga 8:44 8 minutes, 44 seconds with a GDV of about 33 billion. We have Amandep Singh uh who has joined us from DF and before that was with Godish 8:53 8 minutes, 53 seconds properties as CEO for the market and Susil Kumar Modi has been driving the setup of this market for the company. 9:02 9 minutes, 2 seconds The team is now slowly gradually building out and we expect to start operations in fiscal 27. Our approach 9:09 9 minutes, 9 seconds here is the same pilot and scale model we have used in Bangaluru and Pune. We entered Bangaluru in FI23 on a pilot 9:17 9 minutes, 17 seconds basis. 3 years later, Bangaluru in FI26 contributed about 24 billion in pre-sales, about over 20% of our total. 9:27 9 minutes, 27 seconds We have confidence that NCR will follow a similar trajectory. 9:34 9 minutes, 34 seconds Palava is one of our most important long-term value creation stories and the 9:41 9 minutes, 41 seconds infrastructure picture is meaningfully changing this year. Na'vi Mumbai International Airport 40 minutes from Palawa has inaug been inaugurated and is 9:50 9 minutes, 50 seconds ramping up operations. Over time, this distance will further reduce from Palawa. The M the Mulon Aeroli Palawa 9:57 9 minutes, 57 seconds freeway is expected to open in the coming months. cutting travel time to Mumbai's eastern suburbs and the Aoli IT 10:05 10 minutes, 5 seconds hub from Palawa to under 25 minutes. The bullet train station at Palawa with a 20inut completion to BKC is targeted for 10:13 10 minutes, 13 seconds 2028 29. What does this mean economically? Palawa sells at an average today of about 11,000 rupees per square 10:22 10 minutes, 22 seconds foot of carpet area. Comparable suburbs like Mulun and Tani are upwards of 25,000 rupees per square foot and Aoli 10:30 10 minutes, 30 seconds itself is over 20,000 rupees per square foot. As that connectivity gap closes, we expect price appreciation to 10:37 10 minutes, 37 seconds accelerate and with it our EIDA margins on this landholding which we expect to gradually move up to approximately 50%. 10:46 10 minutes, 46 seconds On data centers, we have 400 acres of shovel ready land at Palawa for which we have so far secured two anchors 10:55 10 minutes, 55 seconds operators AWS and ST. The last transaction with ST was at approximately 11:03 11 minutes, 3 seconds 210 to 230 million per acre up eight times in land value in 4 years. We are 11:10 11 minutes, 10 seconds now planning to develop about 1 gawatt of power shell capacity on a build to suit basis approx 11:17 11 minutes, 17 seconds uh on about 100 acres out of this 400 acres of land with incremental cost in 11:24 11 minutes, 24 seconds 2026 terms of about 100 to 110 billion largely self-funded from the ongoing 11:31 11 minutes, 31 seconds land sales in the park which we expect value to reach 0.7 billion per acre over the next few years and total to generate 11:40 11 minutes, 40 seconds over 120 billion uh from fiscal 27 and onwards in land 11:46 11 minutes, 46 seconds sales value. The Maharashtra green data center policy provides substantial fiscal incentives that make Palawa's 11:54 11 minutes, 54 seconds cost of operations highly competitive globally. 11:57 11 minutes, 57 seconds To give you an example, the cost of cons of uh to illustrate this, the cost of constructing a power shell in Palawa is 12:07 12 minutes, 7 seconds about 30% of that in the US or Europe currently. It is not only a compelling 12:15 12 minutes, 15 seconds cost advantage, but given the time to complete this construction, we believe that it is one of the most outstanding data center opportunities globally. 12:25 12 minutes, 25 seconds Therefore, this is a structural longduration annutity business that we are building at very low incremental cost. 12:39 12 minutes, 39 seconds On the same lines, beyond data centers, our annuity income from retail, offices and warehousing touched about 3 billion 12:46 12 minutes, 46 seconds INR in FY26. We have a strong pipeline, 8.8 8 million ft² of total area across these asset classes of which 3.8 million 12:55 12 minutes, 55 seconds square ft² is already comp complete and generating income. The estimated annual rental income from these existing assets 13:03 13 minutes, 3 seconds uh will be about 10 billion by fiscal 31 excluding any data center contribution. 13:08 13 minutes, 8 seconds Thus we target reaching 10x of the fiscal 26 uh rental number in the next 13:16 13 minutes, 16 seconds six years. uh and when it as as this grows it will add meaningfully to PAT 13:23 13 minutes, 23 seconds strengthen our resilience and provide the kinds of earning stability that complement our development business through uh its natural cycles. 13:34 13 minutes, 34 seconds On our balance sheet the net debt ended the year at 53.8 billion reducing by 8 billion during Q4. Net debt to equity is 13:43 13 minutes, 43 seconds at 0.23x 23x well within our self-imposed ceiling of 0.5x. Our average cost of debt is 7.8% down 90 13:53 13 minutes, 53 seconds basis points for the year. Our devco is on track to become debt-free over the 14:00 14 minutes next few years and any future debt in the business will be be against rental income that the rent co generates. uh 14:09 14 minutes, 9 seconds and this we believe again provides a very solid low-lever highly secure position for the business to grow from. 14:20 14 minutes, 20 seconds Our guidance for fiscal 24 we are guiding to pre-sales of about 240 billion with an embedded margin embedded IBIDA margin of 32 to 34%. 14:31 14 minutes, 31 seconds This includes uh singledigit percentage contribution from land sales. We have um 14:39 14 minutes, 39 seconds a launch pipeline of 218 billion GDP already identified for the year. 14:47 14 minutes, 47 seconds We continue to watch the geopolitical situation closely and we have assumed that the Middle East situation will 14:56 14 minutes, 56 seconds normalize by the end of the first quarter. Uh in this forecast in terms of the split of sales, we expect the first 15:05 15 minutes, 5 seconds half to be in the low 40s and the balance to be in the second half in line with the trend of the past years. Over 15:14 15 minutes, 14 seconds the medium term, our goal is focused on 20% kagger impact 15:21 15 minutes, 21 seconds and therefore moving from about 34 billion for fiscal 26 to more than 85 billion by fiscal 31. 15:32 15 minutes, 32 seconds The building blocks are all in place. a strong development pipeline, a deepening annuity income base, a balance sheet 15:39 15 minutes, 39 seconds with significant capacity, and a brand that continues to command a very strong market position amongst 15:46 15 minutes, 46 seconds consumers on the back of superior product and service delivery. 15:52 15 minutes, 52 seconds I close by saying this. The Indian housing market is in the early stages of a structural expansion that is likely to last for decades. The convergence of 16:01 16 minutes, 1 second rising incomes, urbanization, supply consolidation, and improving infrastructure creates a backdrop that 16:09 16 minutes, 9 seconds is truly unique. We are well positioned to grow our market share in this environment, and we intend to do so profitably and with discipline. 16:18 16 minutes, 18 seconds Thank you for your time today and I now hand it back over to Chintan. 16:31 16 minutes, 31 seconds uh Ax will talk about uh Axad and Nishan will talk about the South Central market over to you. 16:39 16 minutes, 39 seconds Thank you Chintan. Thank you Abishek. Good morning everyone. 16:44 16 minutes, 44 seconds Let me now take you through Mumbai's south central market especially how the market is shaping and the underlying 16:52 16 minutes, 52 seconds demand trends that we are seeing in this market. 16:55 16 minutes, 55 seconds This market continues to present a large and structurally growing opportunity for us know with an estimated yearly size of 17:03 17 minutes, 3 seconds over rupees 40,000 cr primary market and a healthy 15% cater since financial year 17:10 17 minutes, 10 seconds 2022 driven by both volume and price growth at the same time as Aisha suggested the 17:18 17 minutes, 18 seconds market is witnessing a shift towards branded developers with their share increasing from roughly 30% % to about 17:26 17 minutes, 26 seconds 40% over similar time period underscoring rising consumer preference for trust quality and execution. 17:38 17 minutes, 38 seconds If we especially talk about our current position, uh we have been growing at a strong pace of 25% plus kar in the 17:45 17 minutes, 45 seconds [clears throat] south and central Mumbai primarily led by a residential portfolio maintaining our market leadership with 17:53 17 minutes, 53 seconds expanding market share. Our growth is anchored on uh focused micro market selection, deep understanding of 18:01 18 minutes, 1 second evolving consumer preferences and being able to identify market gaps to build differentiated segment specific products. 18:10 18 minutes, 10 seconds We continue to strengthen our presence in established high demand locations such as worldly which have consistently 18:17 18 minutes, 17 seconds demonstrated strong demand. Alongside this, we are expanding into emerging hotspots like Severy near the eastern 18:26 18 minutes, 26 seconds seafront which is seeing 5x growth in the same period supported by both planned and completed infrastructure 18:33 18 minutes, 33 seconds upgrades such as the coastal road at SEU and the upcoming early CP connector. 18:40 18 minutes, 40 seconds We are also actively addressing opportunities in the commercial segment where we see a clear demand supply mismatch. There is a strong pent-up 18:49 18 minutes, 49 seconds demand for highquality office spaces while the availability of graded developments remain limited. Some of our marquee commercial developments have 18:58 18 minutes, 58 seconds seen prices double in the last three four years. A significant portion of the existing commercial inventory continues 19:05 19 minutes, 5 seconds to be rental creating a clear gap for institutional grade for sale office spaces. We identified this opportunity 19:14 19 minutes, 14 seconds and have been able to establish a leadership position in the for sale office capturing a large pie of the sales. 19:23 19 minutes, 23 seconds On the resi consumer side, we are continuing to see a clear shift towards premium and experienced level living. 19:31 19 minutes, 31 seconds Customers are increasingly seeking larger homes, better connectivity, and a superior lifestyle with a growing willingness to pay for quality and 19:40 19 minutes, 40 seconds brand. As a result, market growth has been skewed towards premium and luxury segments. 19:47 19 minutes, 47 seconds While the sub3bit segment has been relatively has seen relatively muted growth of roughly 4% kar, 19:55 19 minutes, 55 seconds the three and four bit segment has grown significantly faster at 15 to 20% kar reflecting ka premiumization. 20:03 20 minutes, 3 seconds The three and four bit segment has demonstrated strength both across volume and pricing. 20:10 20 minutes, 10 seconds The segment has seen double-digit price growth compared to 6% growth for the overall market, reflecting superior willingness to pay premium for larger formats. 20:21 20 minutes, 21 seconds We have seen an even sharper trend play out in the luxury segment within the last few years, trending above 30% plus cer. 20:30 20 minutes, 30 seconds I'd like to now invite Nishant to leads luxury portfolio who can shed shed some more light on this. 20:45 20 minutes, 45 seconds Thank you Ashar. Uh good morning everyone. Uh let me quickly take you through the luxury portfolio how the segment is evolving and key divers 20:52 20 minutes, 52 seconds shaping performance. The share of rupees 50 cr plus agencies has nearly doubled since financial year 24 increasing from 21:01 21 minutes, 1 second 7% to 13% of the overall market. At the same time, supplier remains highly constrained with grade A developers 21:08 21 minutes, 8 seconds contributing to 75% of the rupees 50 cr plus category and 100% of the 100 cr plus category. What this essentially 21:16 21 minutes, 16 seconds indicates is a clear consolidation and consumer preference towards branded trusted developers at the top end. 21:24 21 minutes, 24 seconds Against this background, we have made significant strides with sound central market over the past few years. Scaling from a relatively limited presence in 21:32 21 minutes, 32 seconds rupees 100 C plus segment to becoming the leading player by sales in the region with a growth trajectory of 30% keer since financial year 23. 21:42 21 minutes, 42 seconds This has been driven by strong adoption across marquee micro markets such as Malabar Hill and Buri. In this context, 21:50 21 minutes, 50 seconds this segment continues to be a key strength for us where we command a 40% market share in rupees 100 cr plus category today. 21:59 21 minutes, 59 seconds Importantly, this segment also demonstrates a clear pricing premium with realizations of rupees 50 cr plus projects being 30% higher on a per 22:08 22 minutes, 8 seconds square ft basis as compared to projects in a similar micro markets. This reflects the increasing importance of 22:15 22 minutes, 15 seconds brand product differentiation and created experiential living driving value. From a demand standpoint, this 22:23 22 minutes, 23 seconds shift is underpinned by multiple structural factors. The scarcity of prime land parcels, [clears throat] rising preference for privacy and 22:30 22 minutes, 30 seconds exclusivity, and increasing focus on highquality amenities are key drivers. 22:36 22 minutes, 36 seconds As a result, ultra luxury housing is largely endusriven with buyers using these as long-term legacy assets rather 22:44 22 minutes, 44 seconds than investment products leading to a fundamentally different purchase mindset. 22:49 22 minutes, 49 seconds To summarize, we are operating in a large and growing market with a clear shift towards branded players and are well positioned across key micro 22:58 22 minutes, 58 seconds markets, commercial opportunities and across different consumer and price segments. This positions us strongly to 23:05 23 minutes, 5 seconds maintain our status as the market leader while continue to deliver sustainable long-term value. Thank you all and over to Jim. 23:14 23 minutes, 14 seconds Thank you Nishant Ikra. We can open the floor for Q&A. Thank you very much. 23:21 23 minutes, 21 seconds We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on their touchstone telephone. If you wish 23:30 23 minutes, 30 seconds to remove yourself from the question queue, you may press star and two. 23:35 23 minutes, 35 seconds Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question assembles. 24:03 24 minutes, 3 seconds The first question is from the line of Gorav Kandelwal from JP Morgan. Please go ahead. 24:10 24 minutes, 10 seconds Hi, good morning. Thanks for taking my questions. Uh I just wanted to better understand this guidance on uh moving to 24:18 24 minutes, 18 seconds gross debt zero and prioritizing uh free cash flows. uh is it going to be more operating cash flow topline driven or is 24:27 24 minutes, 27 seconds it really we will be pulling back on capeex to an extent because we've already done a lot of BDS and hence the 24:35 24 minutes, 35 seconds capeex [clears throat] need and incremental years in FI 2728 will be lower and hence we see uh positive FCF so what's the kind of 24:42 24 minutes, 42 seconds combination on OCF on capeex on how we get to uh positive FCF uh at some point 24:50 24 minutes, 50 seconds and uh my second question is uh uh I don't see a guidance for OCF for FI27. 24:57 24 minutes, 57 seconds Is there a specific reason for that? 25:02 25 minutes, 2 seconds Hi Goro, thank you for your question. Uh the uh focus of the business uh is 25:09 25 minutes, 9 seconds obviously to deliver uh sustainable predictable growth on account of the significant success in business 25:16 25 minutes, 16 seconds development in fiscal 26 on the back of some stronger years previously. we now 25:22 25 minutes, 22 seconds have sufficient uh visibility uh on our supply side uh for quite some time and 25:29 25 minutes, 29 seconds therefore uh can afford to be a lot more choosier in terms of the new business development that we do. As a consequence 25:37 25 minutes, 37 seconds of that, we expect that the investment into new business development will be muted over the next two years. And as a 25:46 25 minutes, 46 seconds consequence, uh we expect the uh FCF to be uh therefore higher. While 25:55 25 minutes, 55 seconds uh uh as a uh in terms of OCF, we believe that overall with our very clear guidance on bad growth all other uh you 26:04 26 minutes, 4 seconds know contributing or linked factors are uh then not relevant uh in guidance 26:11 26 minutes, 11 seconds terms. uh having said that we expect OCF to grow in line with PAD growth and therefore grow at about 20% or 26:19 26 minutes, 19 seconds thereabouts peranom uh from the current base of about 71 billion which we delivered in fiscal 26 26:28 26 minutes, 28 seconds that's very thank you those are all my questions thank you thank you 26:36 26 minutes, 36 seconds the next question is from the line of muzzaala from KC security please go ahead Okay. 26:43 26 minutes, 43 seconds Hi. Uh just um hi. Uh just on the launch pipeline of FI27 218 billion uh five new 26:52 26 minutes, 52 seconds projects about 14 uh you know new phases for existing projects. If you could give some color on you know how heavy is this 27:00 27 minutes uh pipeline ready you know in terms of being able to launch uh which are the key projects which would uh you know make for a chunky part of the 27:09 27 minutes, 9 seconds contribution uh where are we in terms of there are apples etc. So just some color on how you know sales ready is this 27:17 27 minutes, 17 seconds launch pipeline and which are the two projects which is contributing. 27:23 27 minutes, 23 seconds Yeah. Uh hi M. Uh in terms of the uh launch pipeline for fiscal uh 27 27:32 27 minutes, 32 seconds uh the first thing to note is that last year our new launches contributed uh you know uh around one/ird of sales 27:42 27 minutes, 42 seconds and uh this year that number will become uh even slightly lower than that. What it's really telling you is that the 27:49 27 minutes, 49 seconds inherent predictability of our sales is increasing and improving each year and the dependence on new 27:57 27 minutes, 57 seconds launches is becoming uh uh lower which is really where we find ourselves uh as 28:05 28 minutes, 5 seconds more predictably uh uh placed internally as a business. In uh terms of the uh of 28:12 28 minutes, 12 seconds the new launches for the year uh these are all launches where the land acquisition was completed in the last fiscal or before that. Uh the design uh 28:20 28 minutes, 20 seconds has already been completed and the approvals are uh either already available or well under process. Uh of 28:28 28 minutes, 28 seconds these uh we have uh launches in uh in Pune, we have launches in Bangalore and of course uh we have launches uh in 28:37 28 minutes, 37 seconds Mumbai. uh we haven't included the potential two launches in NCR uh for uh 28:45 28 minutes, 45 seconds uh in this uh launch guidance uh uh because we expect to start construction in the next uh quarter and we expect to 28:54 28 minutes, 54 seconds launch either in Q4 of this fiscal or early in fiscal uh 20 28. So we've just been conservative in keeping that out. 29:02 29 minutes, 2 seconds So it's very broad-based uh uh uh uh basis of launches. Uh the uh uh 29:10 29 minutes, 10 seconds visibility in our opinion is quite high and unless there are some extraneous factors for example that environmental clearance issue which affected last 29:18 29 minutes, 18 seconds year. Uh we don't see any uh any risk to these launches. 29:24 29 minutes, 24 seconds Uh sh if I could follow up since you bring up the environmental issue is that completely behind us and we are back in 29:32 29 minutes, 32 seconds you know both for Noda in Mumbai as well as for the larger MMR market. Is that issue largely behind us and we see 29:40 29 minutes, 40 seconds clearance is coming at a steady sort of pace now. 29:45 29 minutes, 45 seconds Uh yes, Musa. The Supreme Court um brought the situation to where it was in late 2025 29:53 29 minutes, 53 seconds uh back in August 2026. So you know we all lost about 9 months uh uh in getting back to the same starting point and the 30:02 30 minutes, 2 seconds clearances then started getting uh uh given by I think sometime in November 30:07 30 minutes, 7 seconds 2020 uh six uh sorry November 2025. Um uh so uh we are uh very much that issue 30:16 30 minutes, 16 seconds is is behind for the entire market including for Lola. Thank you. Thank you so much. 30:26 30 minutes, 26 seconds Thank you. The next question is from the line of Abina Shha from Jaffity. Please go ahead. 30:33 30 minutes, 33 seconds Hi. Uh couple of questions. So firstly on data center uh can you give us uh some milestones to expect such as uh 30:42 30 minutes, 42 seconds when do we see the first uh announcements on the bill to suit and uh when do you start seeing lease income from that? So that's the first question. 30:51 30 minutes, 51 seconds Hi Abel u it's a a question which I would love to give you a very precise answer to uh but I can tell you is that 30:58 30 minutes, 58 seconds we have uh uh good and strong advanced discussions on the first set of BTS boxes. um uh you know things uh we 31:07 31 minutes, 7 seconds expect definitely uh for the announcements to happen this fiscal. We are hoping sooner rather than later and 31:13 31 minutes, 13 seconds income uh uh from uh uh from these we expect to start coming in fiscal 29 uh 31:21 31 minutes, 21 seconds which is uh about uh 2 years after the sign up. 31:28 31 minutes, 28 seconds Okay. Uh so secondly on uh the uh guidance that you have given of uh 17% growth this time. So uh I understand 31:36 31 minutes, 36 seconds that there's a Middle East uh conflict uh uh you know uh likely impact. Uh can you tell us how say April is shaping up 31:44 31 minutes, 44 seconds versus March and uh do you think uh you know it can be like similar to the last time in first half where we had 31:52 31 minutes, 52 seconds singledigit growth and then second half was much stronger. 31:58 31 minutes, 58 seconds uh so you know uh difficult for us to predict you know how this whole Middle East thing uh uh will pan out etc. As I 32:06 32 minutes, 6 seconds mentioned in my remarks uh we have assumed that this Middle East situation settles down i.e. it stops stops being 32:15 32 minutes, 15 seconds something which affects in a significant manner energy flows or or economic impact by the end of uh this quarter. uh 32:25 32 minutes, 25 seconds we as I also mentioned we expect sales in the first half to be about early 40s of the overall guidance and and the 32:34 32 minutes, 34 seconds balance to be in the second half. Uh this number was similar uh in the uh uh in the previous fiscal and therefore in 32:43 32 minutes, 43 seconds growth terms probably the first half growth uh will be in line with that you know 15-ish% uh growth uh compared to uh to last 32:52 32 minutes, 52 seconds year. However, I would urge you and all uh the uh uh others attending the call 32:59 32 minutes, 59 seconds to uh uh look into our uh focus on pad growth as the primary way of measuring 33:07 33 minutes, 7 seconds our business. This is the actual PAT in the P&L not a number which is derived 33:14 33 minutes, 14 seconds number or an unodudited number. We believe this provides a lot more clarity, a lot more visibility in terms 33:22 33 minutes, 22 seconds of how the business is likely to perform going forward and ultimately uh as they say cash is king and that's really where 33:31 33 minutes, 31 seconds now as a business uh we expect to focus on. So while we have a uh pre-sales guidance which is sort of in the mid- 33:38 33 minutes, 38 seconds teens uh our uh our medium-term pad guidance is at 20% or thereabouts. 33:48 33 minutes, 48 seconds Right. Uh thank you and all the best. 33:54 33 minutes, 54 seconds Thank you. The next question is from the line of Prites from Access Capital. Please go ahead. 34:03 34 minutes, 3 seconds Yeah. Hi Abishek. Uh thanks for the opportunity. Uh couple of questions. 34:06 34 minutes, 6 seconds First one uh uh just trying to understand uh you know which segment uh would have been impacted most by this 34:15 34 minutes, 15 seconds middle east uh we had a 500 cr shortfall uh from our guidance uh last year and again if I you know assume ideal 34:24 34 minutes, 24 seconds guidance would have been 20% we are at 17 and again a 500 cr shortfall uh so so which segment was impacted and and which 34:32 34 minutes, 32 seconds one has remained kind of immune to uh to this uh conflict Uh yeah that's my first question. 34:40 34 minutes, 40 seconds Uh hi Pritik. Uh we'd uh like to say that March obviously 34:47 34 minutes, 47 seconds was more driven at uh um individual level. We had some shortfall in sales from NRIs who are based in the Middle 34:55 34 minutes, 55 seconds East. uh we had uh some shortfall uh uh in closures at the uh sort of uh luxury 35:04 35 minutes, 4 seconds in the luxury segment because everybody was just grappling with what had suddenly happened. um uh we don't expect 35:11 35 minutes, 11 seconds any persistent uh uh sort of single segment impact of um uh of this war and 35:19 35 minutes, 19 seconds we think it was just the shock of the event and uh and we expect things to normalize unless there is a persistent 35:26 35 minutes, 26 seconds energy shock. So that's really uh our view on the Middle East crisis. In terms of the pre-sales guidance question and 35:34 35 minutes, 34 seconds its linkage to the Middle East situation, our view is that pre-sales as 35:41 35 minutes, 41 seconds a guidance tool has been uh something which is probably less reflective of the underlying health of the business and 35:49 35 minutes, 49 seconds hence uh we have now chosen to focus uh in terms of our guidance on PAT in a 35:57 35 minutes, 57 seconds more specific manner. We think that the underlying health which comes from a contribution of margin growth as well as 36:04 36 minutes, 4 seconds a contri as well as uh pre-sales growth ultimately leading to delivered profitability is the better way of 36:12 36 minutes, 12 seconds looking at the health of any real estate company. Sure. Sure. Makes sense. Makes sense. 36:20 36 minutes, 20 seconds and and uh now just on on Palawa I think we ended uh quite well in Q4 with almost 36:28 36 minutes, 28 seconds 800 cr of uh pre-sales uh what would be your outlook uh for Palawa's residential segment uh you know 36:37 36 minutes, 37 seconds next year given that you know we are on the verge of seeing completion of that a kataaka 36:45 36 minutes, 45 seconds uh you know even apart developments that are in progress would also be on the verge of completion. So, so what's your thought process on you 36:53 36 minutes, 53 seconds know where would we be in FI27 for Palawa residential if you have any numbers you have thought about. Yeah. 37:01 37 minutes, 1 second Uh British we're very excited about the infrastructure in both Palawa and Apertane now becoming operational. Uh 37:09 37 minutes, 9 seconds it's expected that the uh Palawa AI Muland um uh freeway will be operational 37:17 37 minutes, 17 seconds imminently i.e. next uh uh two to three months um uh unless uh the monsoon 37:25 37 minutes, 25 seconds pushes it to post monsoon but we hope it's pre-monsoon and the completion of the uh Mumbai uh Nagpur superighway the 37:33 37 minutes, 33 seconds the tane portion of it is a is a key priority which is being monitored at the highest level of the state government and we hope that that will also be 37:40 37 minutes, 40 seconds completed before Diwali. Uh so both of these make us uh very very excited about the potential for the impact on sales uh 37:49 37 minutes, 49 seconds uh residential sales particularly in uh in these two locations and we expect strong growth ahead of our average 37:57 37 minutes, 57 seconds pre-sales growth for this fiscal. uh once the exact timing of these openings are known, we may be able to give even a 38:04 38 minutes, 4 seconds more precise number. Uh but uh overall, we expect pre-sale growth in the extended eastern suburbs to be ahead of 38:10 38 minutes, 10 seconds our uh uh company level pre-sales guidance for this fiscal. 38:17 38 minutes, 17 seconds Got it. Got it. That's helpful. And lastly on the cost side u you know if you want to quantify on uh you know how 38:24 38 minutes, 24 seconds much has been the impact I'm I know I mean we follow the disclosures that you give towards the end of this slide uh 38:31 38 minutes, 31 seconds presentation but um overall you know how much has been changed since last 2 three months uh because of these concerns and 38:39 38 minutes, 39 seconds the inflations that we see around uh key an important question uh uh the 38:48 38 minutes, 48 seconds Our assessment of the impact of construction cost increases has been approximately is running at currently at 38:56 38 minutes, 56 seconds about 3 to 5% of overall construction cost. Uh the highest affected categories are the ones which are gas dependent. Uh 39:05 39 minutes, 5 seconds uh this includes tiles, paints, PVC pipes, aluminum formwork and uh certain 39:12 39 minutes, 12 seconds waterproofing uh u elements. there has been a more moderate impact on uh windows and facad systems, gypsum and 39:21 39 minutes, 21 seconds steel. Uh and then there is you know sort of a little bit uh uh uh in in other other categories. Uh this uh impact of 3 to 5% on construction cost. 39:33 39 minutes, 33 seconds If it was to persist through the entire construction cycle of three years, uh it would give uh an an impact on margin of 39:42 39 minutes, 42 seconds about 1.7 uh%. uh if it was to run for 6 months 39:48 39 minutes, 48 seconds which is uh I would say probably the uh uh the more conservative uh view right 39:55 39 minutes, 55 seconds now uh you're talking about a very modest impact of roughly you know 0.35% 40:03 40 minutes, 3 seconds um of uh the sales value uh for for those given projects. So right now the 40:10 40 minutes, 10 seconds uh uh the our assessment of the impact of uh the Middle East crisis on construction cost is that yes there has 40:17 40 minutes, 17 seconds been some impact in select categories but the overall impact on margin is uh very very nominal. Uh the other aspect 40:25 40 minutes, 25 seconds which people have spoken about is labor attrition. Uh labor attrition in March April is running at about 5 to 10% over 40:32 40 minutes, 32 seconds seasonal norms. uh part of it is uh obviously things which may be linked to the war like LPG or general sentiment 40:41 40 minutes, 41 seconds but there's also the state elections uh in various parts of the country and therefore we don't see anything spec any 40:48 40 minutes, 48 seconds anything significant in terms of this labor attrition being abnormal. Uh obviously we've made a lot of effort 40:54 40 minutes, 54 seconds over the long term uh to be uh uh to to have our labor think about this working for us in a very different manner from 41:02 41 minutes, 2 seconds normal construction workforce and that's helped keep the attrition low and we've of course also made special efforts to make sure that the LPG issue does not 41:10 41 minutes, 10 seconds affect their day-to-day welfare. Uh so overall uh an issue to watch but nothing which is worrying right now. 41:19 41 minutes, 19 seconds Sure. The uh that's it from my side. Thank you for the detailed answers. Thank you. All the best. 41:28 41 minutes, 28 seconds Thank you ladies and gentlemen. In order to ensure that the management will be able to address questions from all the participants in the conference, kindly 41:37 41 minutes, 37 seconds limit your questions to two per participant. Should you have a follow-up question, please rejoin the queue. The next question is from the line of Kunal 41:45 41 minutes, 45 seconds Kayel from Bank of America. Please go ahead. 41:49 41 minutes, 49 seconds Great. Thank you. A couple of questions from me. First one Abishek um you know given the accretion that you are expecting in value of uh the data center 41:57 41 minutes, 57 seconds parkland uh you know just curious as to what the were the puts and takes you were looking at in terms of um you know developing your own data center as 42:05 42 minutes, 5 seconds opposed to just monetizing it by way of selling the land. From the outside it seems like you know it's a strategic call of creating an asset versus 42:13 42 minutes, 13 seconds maximizing profitability. So is that the right read? 42:18 42 minutes, 18 seconds Uh uh thanks. It's a it's a it's a key question. We've of course thought of it in in in multiple uh multiple ways. Uh 42:26 42 minutes, 26 seconds we do think that the creation of the long-term compounding um um uh steady annuity stream is a 42:34 42 minutes, 34 seconds strategic gap uh in our business. uh we we have been working on on on improving uh on that front through our uh 42:43 42 minutes, 43 seconds warehousing, industrial, retail and offices and the data center opportunity gives [clears throat] us a significant step up in the scale of our annuity 42:51 42 minutes, 51 seconds business uh which we think is um is strategically valuable. Uh having said that uh out of the 400 acres of land 42:59 42 minutes, 59 seconds which is currently earmarked in our uh green uh green data center park about 100 acres will be used for building our own portfolio and the balance will be 43:08 43 minutes, 8 seconds sold. So obviously uh we are uh you know uh monetizing a significant part of that land and using the proceeds from that 43:16 43 minutes, 16 seconds monetization uh to build a significant uh long-term annuity stream. Uh so it's a it's really a strategic uh call to 43:24 43 minutes, 24 seconds take a modest portion and build a long-term income rather than to uh take all the profit today. 43:30 43 minutes, 30 seconds Understand? Got it. um on the residential business uh you know you're of course exiting F26 with a lot of inventory and you know I do understand 43:39 43 minutes, 39 seconds that's about the reason why you're also saying that the pressure on business development next couple of years will be low and therefore they should moderate 43:46 43 minutes, 46 seconds but that apart do you also think it's part of the cycle where carrying more inventory um makes sense because the 43:53 43 minutes, 53 seconds percentage conversion might be lower than earlier uh no we don't think of it That way we 44:01 44 minutes, 1 second don't expect that uh uh we are likely to see any uh reduction in our conversion 44:09 44 minutes, 9 seconds rates or our sales throughput. Uh we've just had a very strong year in business development and that gives the business 44:16 44 minutes, 16 seconds a lot more optionality, a lot more visibility for the long term. Uh and and we did some launches in the last quarter 44:24 44 minutes, 24 seconds of the year which were deferred from earlier. So you end the year with a higher elevated level of of of under 44:30 44 minutes, 30 seconds sales u um inventory. Uh but nothing nothing out of the normal. On the contrary, as my colleagues uh Axhat and 44:38 44 minutes, 38 seconds Nishant remarked, we continue to see uh developing uh further development of brand preference in the consumer and we 44:46 44 minutes, 46 seconds expect over time uh that uh uh we will uh gain market share as well as have improved conversions uh on account of 44:55 44 minutes, 55 seconds the fact that our product and brand uh are both compelling. Got it. Thanks. 45:05 45 minutes, 5 seconds Thank you. The next question is from the line of Perves Kazi from Noama Group. Please go ahead. 45:13 45 minutes, 13 seconds Uh hi, good morning. Thanks for taking my question. Uh so one question from my side. Wanted to get your views on two 45:20 45 minutes, 20 seconds parameters. Uh how was our performance in these parameters in FY26 and uh what is the outlook going ahead? Uh the first 45:28 45 minutes, 28 seconds one is on sales volumes and the second one is on price appreciation. Thank you. 45:37 45 minutes, 37 seconds [clears throat] 45:42 45 minutes, 42 seconds Um thank you. Um uh price growth last year came in at about 5%. Uh uh and we 45:50 45 minutes, 50 seconds expect a similar trend u uh for fiscal uh 27. Uh it of course therefore implies 45:57 45 minutes, 57 seconds that the rest of the growth is coming from volume. uh last year's volume growth came in uh uh in square foot 46:05 46 minutes, 5 seconds terms uh at about uh the 11 12% mark and we expect the similar number uh for this 46:13 46 minutes, 13 seconds u uh for this fiscal uh uh two uh sure thanks and all the best. 46:25 46 minutes, 25 seconds Thank you. The next question is from the line of Vive Ramak Krishnan from DSP Mutual Fund. Please go ahead. 46:33 46 minutes, 33 seconds Hi. Uh thank you. Uh to start with, let me uh you know give my sincere appreciation of the Lora Foundation for 46:41 46 minutes, 41 seconds the work they're doing on uh in theoretical physics and mathematical sciences. And since it's part of your presentation, I thought I'll I'll say 46:48 46 minutes, 48 seconds that. uh but the questions which I have are more in line with what people had asked in terms of uh the sales that you 46:54 46 minutes, 54 seconds see let's say in in the Mumbai area is it linked to something specific like the stock market prices going up and down 47:01 47 minutes, 1 second and are you seeing any delays in collections for even projects that have been sold or for example in Bangalore would it be linked to the tech sector 47:10 47 minutes, 10 seconds and tech sector hiring which seems to be bit choppy so what will determine your uh sales and is the collections from existing projects getting hampered in any way. 47:21 47 minutes, 21 seconds Hi Vive, thank you for your call out on the Loa Foundation. Uh we appreciate it and we hope that the foundation will continue to make some positive and 47:30 47 minutes, 30 seconds significant contribution to uh both learning, innovation and India's growth. 47:35 47 minutes, 35 seconds In terms of your questions um about how uh the real estate demand is linked to various factors like the stock market uh 47:45 47 minutes, 45 seconds we don't see any direct linkages between the real estate demand and the stock market. Obviously for individuals that 47:51 47 minutes, 51 seconds can vary but on average that is uh not the case. Um uh really real estate demand is a function of future 48:01 48 minutes, 1 second confidence um in one's earning capability. 48:05 48 minutes, 5 seconds uh and that really is how people make their choice on when to buy the home. 48:10 48 minutes, 10 seconds Job confidence, economic growth confidence, uh sectoral as well as uh systemic 48:18 48 minutes, 18 seconds leverage levels, all of these are determiners of confidence, political stability, all of these are determiners 48:25 48 minutes, 25 seconds of confidence about the future. At the current time, we find that in spite of all the narrative around uh the impact 48:34 48 minutes, 34 seconds of AI on job creation in the country, we're going to end up with white collar jobs um incomes growing at 9 to 10% 48:41 48 minutes, 41 seconds peranom. It's important to emphasize that the median buyer of a Loa home has an average household income uh close to 48:48 48 minutes, 48 seconds 50 lakhs peranom and the entry-level buyer of a LOA home has an annual household income of 25 lakhs peranom. 48:58 48 minutes, 58 seconds This segment has to be understood carefully because it is not the mass u 49:04 49 minutes, 4 seconds consumer segment. It is really the upper uh uh the upper top tier of the consumer segment and this segment in our opinion 49:13 49 minutes, 13 seconds will over time uh there will of course be ups and downs but over time benefit from the productivity gains unleashed by 49:20 49 minutes, 20 seconds AI. Uh we uh uh of course are uh not macro specialists but we do expect that 49:29 49 minutes, 29 seconds uh uh the housing demand as it stands right now uh is pretty uh strong driven by a combination of the factors and uh 49:37 49 minutes, 37 seconds of better lifestyle combined with belief in one's future potential that that I mentioned earlier and in terms of 49:45 49 minutes, 45 seconds collection impact no there are no there is no collection impact that we've seen on account of you know any short-term uh 49:52 49 minutes, 52 seconds aberrations in the equity market. So, so no no impact there. Thank you. 49:58 49 minutes, 58 seconds Thank you so much. I have just one more one more question in you know you made a strong statement on leverage and given 50:05 50 minutes, 5 seconds the muted business growth I mean business development growth this year. 50:09 50 minutes, 9 seconds Would you expect leverage levels to actually come down in the next uh year because you're going to be generating such strong free cash flows? 50:18 50 minutes, 18 seconds Uh Vive hi yes uh we do expect that our devco part of the business will uh reduce its leverage uh significantly 50:26 50 minutes, 26 seconds going forward and perhaps might even become net debt uh uh uh zero the devco part of the business uh over the next uh 50:34 50 minutes, 34 seconds few years. So yes on an overall basis would expect that the uh the overall debt levels in the business at the end 50:41 50 minutes, 41 seconds of fiscal 27 should be somewhat lower uh uh than what it is in in at the end of fiscal 26 in spite of the investments 50:51 50 minutes, 51 seconds that we make in the buildout of our assets. 50:56 50 minutes, 56 seconds Thank you very much and wish you all the best. Thank you. 51:03 51 minutes, 3 seconds Thank you. The next question is from the line of Akash Gupta from Namura Holding. Please go ahead. 51:11 51 minutes, 11 seconds Hi, am I audible? Yes, you are. 51:15 51 minutes, 15 seconds Yeah. Hi. Uh, congratulations sir on a great performance. Um, just my question on the extended eastern suburbs. Uh, for 51:24 51 minutes, 24 seconds the past four years our sales value from extended eastern suburbs has been kind of flattish at 20 to 25 billion. I think 51:32 51 minutes, 32 seconds we have a guidance of doing 80 billion by FI30. Uh are we still holding on to 51:38 51 minutes, 38 seconds that number? U and when do we see that pickup happening? Would it be this year 51:45 51 minutes, 45 seconds likely to reach to that 80 billion mark by FI30? That's my first question. 51:55 51 minutes, 55 seconds Hi, it's a uh it's very uh relevant question. 52:00 52 minutes We expect that this sales in the extended eastern suburbs will significantly benefit from the 52:08 52 minutes, 8 seconds completion of the long delayed infrastructure projects. That delay in infrastructure projects had definitely 52:15 52 minutes, 15 seconds impacted sales in fiscal 26. We had expected sales to be uh stronger than these levels on the basis of the fact that these infrastructure projects 52:24 52 minutes, 24 seconds should have been completed about 12 months ago. uh but uh be as it may uh as they say in Hindi durust uh so we look 52:33 52 minutes, 33 seconds forward to the completion of these infrastructure connectivity pieces now very very soon and as a consequence 52:40 52 minutes, 40 seconds expect that a significant step up in uh in pre-sales for the extended eastern suburbs will be visible uh in this 52:47 52 minutes, 47 seconds fiscal most likely starting from the second half and uh from thereafter the compounding engine uh kicks in uh the 52:56 52 minutes, 56 seconds guidance of 80 billion peranom was a combination of obviously of the uh residential pre-sales combined with uh 53:04 53 minutes, 4 seconds the pre-sales of uh all other asset classes in the extended eastern suburbs. 53:09 53 minutes, 9 seconds So uh that number has to be seen holistically but there is no real change in our viewpoint. There may be uh 12 53:16 53 minutes, 16 seconds months of deferral on account of the uh delay in the some of these infra projects but overall we remain very 53:23 53 minutes, 23 seconds strongly constructive on the potential of the extended eastern suburbs to become a key driver not just of the company's pre-sales growth but more 53:31 53 minutes, 31 seconds importantly of the of the margins given the the fact that the land has been acquired by us uh already and therefore 53:38 53 minutes, 38 seconds all price growth leads to significant uh uh flow through into margin growth. 53:44 53 minutes, 44 seconds Understood. And so my second question is on the slide we have given that uh for our 3,900 acre land parcel uh we have 53:52 53 minutes, 52 seconds roughly 600 million square ft² potential. Um what is the understanding of by when like in how many decades 53:59 53 minutes, 59 seconds should we be able to utilize this 600 million square ft number because currently we are selling like roughly 4 54:06 54 minutes, 6 seconds million square ft. So what is the understanding here? How should we think about it? Uh it's a it's a key question 54:14 54 minutes, 14 seconds and as you would have uh have have noticed uh you know we have our uh focus of the development company the devco and 54:22 54 minutes, 22 seconds the rent co uh both the devco and the rent co benefit from the land in the extended eastern suburbs and we uh create value through residential sales 54:31 54 minutes, 31 seconds other uh sales of other asset classes and creation of annutity assets like warehousing data center uh retail and so 54:38 54 minutes, 38 seconds on. uh the uh the the third element of our operating business what we have now called land co is now been created in 54:48 54 minutes, 48 seconds order to generate a strategic plan for expedited monetizing of the land which is not going to be likely to be used by the rentco and the devco in the near 54:56 54 minutes, 56 seconds term. Uh we expect over the next 12 months to have a have a clearer strategy of monetization including potentially um 55:04 55 minutes, 4 seconds uh uh monetizing some of the land through uh through third party land sales so that there can be an expedited 55:11 55 minutes, 11 seconds uh monetization uh of uh of these uh land parcels. Uh so hopefully uh uh uh 55:19 55 minutes, 19 seconds we'll provide a more detailed strategic update on how we can further uh fasttrack that monetization uh at the next annual learning call. 55:29 55 minutes, 29 seconds And that's it. Thank you so much. Thank you. Thank you. Thank you. 55:36 55 minutes, 36 seconds The next question is from the line of Murley Krishnan from Sundaram Mutual Fund. Please go ahead. 55:43 55 minutes, 43 seconds Yeah. Thanks. 55:46 55 minutes, 46 seconds I'm sorry. Uh Mr. Can you use your handset please? Sure. 55:55 55 minutes, 55 seconds Yeah, please proceed. 55:57 55 minutes, 57 seconds Yeah. Hi. Uh uh so partially I would have answered my question. So most mostly on launches. So uh uh uh just to 56:06 56 minutes, 6 seconds understand our logic for u having uh uh in uh you know higher existing project launches over uh limited new project 56:15 56 minutes, 15 seconds launches. We see Mumbai there is only I mean in western uh suburbs there are there is a new project launch uh uh with 56:25 56 minutes, 25 seconds you know the environmental clearances uh one would have expected much more launches to come from Mumbai. So just to 56:31 56 minutes, 31 seconds understand the logic uh for uh you know uh increasing uh phase launches over the new launches in MMR specifically. Yeah. 56:41 56 minutes, 41 seconds Thanks. 56:44 56 minutes, 44 seconds Uh uh thanks Mi for your question. Um I think this question goes to the root of how we think about as a business uh and 56:52 56 minutes, 52 seconds our focus on cash flow and profitability over any headline sales number. 56:59 56 minutes, 59 seconds um having established uh a large set of operating projects where the land cost has already been incurred a and where 57:08 57 minutes, 8 seconds construction is partly underway. That is the most ROE accreative part of our business and that's the one where we 57:15 57 minutes, 15 seconds focus most on to monetize and generate both cash flow as well as uh profitability. 57:22 57 minutes, 22 seconds uh the new launches are really a function of where we see gaps in the existing markets in terms of supply and that's where we bring new launches to 57:31 57 minutes, 31 seconds the table. So once again I would like to I stated this before in the call and re-emphasize the fact that please think 57:39 57 minutes, 39 seconds about our business as one which is most focused on profitability and are we uh resilience and predictability rather 57:47 57 minutes, 47 seconds than uh uh driven by headline sales. For us, the pre-sales are a means to an end. 57:54 57 minutes, 54 seconds The end is ultimately profitability, and that's what our focus is. So, whatever trade-offs we make, our ultimate goal is 58:02 58 minutes, 2 seconds to deliver the highest level of sustainable compounding in our underlying profitability. Thank you. 58:10 58 minutes, 10 seconds That's good. Yeah. Thanks. That's that was it for me. Thank you. 58:19 58 minutes, 19 seconds That was the last question for today. I now hand the conference over to Mr. 58:23 58 minutes, 23 seconds Chintan Pari for closing comments. Over to you sir. 58:29 58 minutes, 29 seconds Thank you Ikra. Uh thanks for joining the call. Uh if you have any query reach out to the investor relations team. 58:36 58 minutes, 36 seconds Over to you IRA. 58:38 58 minutes, 38 seconds Thank you very much on behalf of Loa Developers Limited. That concludes the conference. Thank you all for joining us today and you may now disconnect your lines.