Raymond Realty Ltd — Q4 FY26

Raymond Realty Ltd Q4 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=lJNk7NqqL2c Published: 7 days ago

0:01 1 second Ladies and gentlemen, good day and welcome to the Raymond Reality Limited Q4 FI26 and FI26 earnings conference 0:09 9 seconds call hosted by Antic Stock Broking Limited. As a reminder, all participant lines will be in listenonly mode and you 0:16 16 seconds will have an opportunity to ask questions after the presentation concludes. 0:21 21 seconds Should you need assistance during the conference call, please signal an operator by pressing star then zero on your touchstone phone. Please note that 0:29 29 seconds this conference is being recorded. I now hand the conference over to Mr. Aijit Kundu from Antic Stop Broking Limited. 0:36 36 seconds Thank you and over to you. 0:39 39 seconds Thank you on behalf of Antic Stop Broking Limited. I would like to welcome all the participants in the Q4 FIR 26 and FI2 conference call of Raymond 0:48 48 seconds Reality Limited. Today we have with us from senior management of Raymond Reality, Mr. Rakkesh Tiwari Group CFO, 0:56 56 seconds Mr. Ah Sani MD [clears throat] and CEO, Mr. Ankur Jinder, CFO and Mr. Sunidisa, 1:04 1 minute, 4 seconds head investor relations. Without taking further time, I would like to hand over the call to Mr. Armun, co-ducer. 1:13 1 minute, 13 seconds Uh thank you. Uh first of all, good evening everyone and thank you for joining us for this call for Raymond 1:21 1 minute, 21 seconds Realy Limited's performance for Q4 and for the entire year. FY26. 1:29 1 minute, 29 seconds So before we dive into our specific numbers for the company, I think uh it is uh important to look at the broader environment in which we operate. 1:40 1 minute, 40 seconds So Indian macroeconomic story uh in FI26 uh remained resilient and uh the GDP 1:48 1 minute, 48 seconds growth is estimated to be 7.4% 4% as per the government numbers which have been 1:56 1 minute, 56 seconds already published at many places and uh we obviously remain one of the fastest growing major economies in the world 2:04 2 minutes, 4 seconds today. So there is clearly a double engine which is firing now. Public investment led the way and now private 2:13 2 minutes, 13 seconds investment is also coming in and consumption has always been the story in India. 2:18 2 minutes, 18 seconds So for our industry also in this background it has translated into a historic surge as far as the momentum of 2:28 2 minutes, 28 seconds sales and demand is concerned. We have seen record-breaking capital deployment. 2:34 2 minutes, 34 seconds Uh significant amounts of equity has flown into the sector and uh jump this equity which came from external sector 2:43 2 minutes, 43 seconds is almost 88% uh close to 30.7 billion dollar over the last approximate 2-year 2:52 2 minutes, 52 seconds period since 2024 to Q1 of 2026. 2:57 2 minutes, 57 seconds MMR uh is the market in which Raymond Realy operates in a major way and uh demand has stayed steady in this market. 3:07 3 minutes, 7 seconds It's primarily actual userdriven and buyers are prioritizing functionality, connectivity and most 3:16 3 minutes, 16 seconds importantly reliability in terms of choosing the developers that they want to buy from. So brand plays a very big 3:23 3 minutes, 23 seconds role and uh that's where consolidation theme keeps on becoming stronger and stronger with every passing quarter. 3:31 3 minutes, 31 seconds Now if we look at our numbers given this context that we have uh the word actually which comes to my mind 3:39 3 minutes, 39 seconds immediately on upon looking at the FI26 numbers is validation. So whatever we 3:46 3 minutes, 46 seconds had planned for we feel validated on all of those numbers. And uh we've seen 13 3:54 3 minutes, 54 seconds 39% year-on-year surge in quarterly bookings which is an extraordinary uh 4:02 4 minutes, 2 seconds achievement which which we believe uh given that the market which is there and it is also a deliberate result of 4:10 4 minutes, 10 seconds multi-year strategic road map we which we had laid down when we started this business. We also entered this year with 4:18 4 minutes, 18 seconds a clear plan which was quarter on quarter and we executed it to perfection in that sense. Uh despite several 4:27 4 minutes, 27 seconds hiccups on regulatory front and many hurdles came our way but we were able to execute uh quite diligently. 4:36 4 minutes, 36 seconds Looking at our financial highlights, our total income for FI26 stood at 3,039 crores, which is a 29% growth over the 4:46 4 minutes, 46 seconds previous year. For the quarter, which is quarter 4, income surged 53% to 1,176 crores. 4:57 4 minutes, 57 seconds What is really important here apart from the topline growth is the quality of our earnings. Our IITA for 5:06 5 minutes, 6 seconds the year rose to 495 crores. While we were scaling rapidly, we also maintained 5:13 5 minutes, 13 seconds a resilient AITA margin profile of 21.5% in Q4. We have achieved this by capturing 5:22 5 minutes, 22 seconds the economies of scale that we have built with the new launches and uh our distributed operation within our 5:29 5 minutes, 29 seconds portfolio and optimizing our product mix to the maximum. 5:35 5 minutes, 35 seconds Even on the liquidity front, we remain quite exceptionally well poised. 5:40 5 minutes, 40 seconds Uh we concluded the year with a net debt of 656 crores. Our debt equity on gross 5:48 5 minutes, 48 seconds basis uh stands at 6 which is comfortably below our internal ceiling 5:55 5 minutes, 55 seconds of 1 is to1 debt to equity. So we are very comfortable there and our liquidity buffer was 350 crores at the end of the 6:04 6 minutes, 4 seconds year. Uh which makes us fully funded as far as next year is concerned uh in 6:11 6 minutes, 11 seconds terms of uh whatever money we need uh between debt and our liquidity buffer. 6:17 6 minutes, 17 seconds We are well poised to meet all our requirements. 6:21 6 minutes, 21 seconds the uh actually the most strategic milestone that if I was to mention for the last year was a structural shift that we saw in our portfolio mix. 6:33 6 minutes, 33 seconds We had uh previously set a target and communicated to the markets also that there will be a 50/50 mix between our 6:43 6 minutes, 43 seconds own land in Tana and the new JDS that we have signed by the year uh financial year 2027. 6:51 6 minutes, 51 seconds But uh very happy to report that we have achieved this milestone one year ahead of schedule in FI26 itself. Now if I was 7:02 7 minutes, 2 seconds to just look at FI25 numbers, the share of JDA was 22% in booking values and FI 7:10 7 minutes, 10 seconds 26 share of booking pre-sales bookings which is there from non-thana land which is outside of our legacy land was 54%. 7:21 7 minutes, 21 seconds I think that has been a significant achievement for FYI26 for us and this has been done in an asset light 7:29 7 minutes, 29 seconds model which is something we've been following from day one and we've stayed consistent with that model and it has 7:37 7 minutes, 37 seconds allowed us to penetrate try uh MMR micro markets like Bandra, BKC, Vadala 7:45 7 minutes, 45 seconds and we have done this without being very capital intensive in terms of land acquisition. 7:51 7 minutes, 51 seconds So our JDA portfolio now comprises of seven projects with a combined revenue 7:58 7 minutes, 58 seconds potential of approximately 17,000 crores based on current prices. 8:04 8 minutes, 4 seconds This also includes our most recent addition in Kandali which was added in FI26. 8:13 8 minutes, 13 seconds Our execution engine also has been firing on all cylinders across entire MMR that wherever we have taken 8:21 8 minutes, 21 seconds on projects. If we look at inana where we have a 100 acre land parcel and it has been a massive value creator 8:30 8 minutes, 30 seconds for us with a total revenue potential of 25,000 crores on that entire land. 8:35 8 minutes, 35 seconds Currently about 60 acres of that land is under development at different stages 8:41 8 minutes, 41 seconds and uh and also during the year our aspirational brand the first project we had launched in the company 10x habitat 8:50 8 minutes, 50 seconds which was a large project with 3,100 odd homes uh is fully sold out and also 8:58 8 minutes, 58 seconds received complete OC for the project. So uh this is a major milestone for a very large development that we would have 9:06 9 minutes, 6 seconds delivered fully in the market and not just the buildings but everything and we will be moving out of this project. 9:15 9 minutes, 15 seconds Next would be other other deliveries which will happen in the current year. 9:20 9 minutes, 20 seconds Now Q4 for us was exceptional because it was defined by strategic blitz of major 9:27 9 minutes, 27 seconds launches that we did. The projects we launched during this period were addressed by GS Vadala addressed by GS 9:35 9 minutes, 35 seconds and both these projects put together you know released a combined GDV of almost 9:42 9 minutes, 42 seconds 6,400 crores in the market for us. Apart from this, we launched two projects in 9:48 9 minutes, 48 seconds uh Tana as well. 10X District 9 and Park Street. Park Street is a retail development. It's a small development, 9:56 9 minutes, 56 seconds but it's value accreative for us. And as part of our strategy, every year we do a certain amount of retail and we have 10:04 10 minutes, 4 seconds consistently done that for the last 3 four years and going forward also. It is part of our strategy that some element 10:10 10 minutes, 10 seconds of retail will be launched uh throughout. So 10:16 10 minutes, 16 seconds with with that you know uh I I would say that I kind of encapsulate what we did 10:23 10 minutes, 23 seconds in FY26 but we are not slowing down. Uh over the next 12 to 15 months we are on track to 10:31 10 minutes, 31 seconds launch two more projects which are both in Mahiming and uh they are at very advanced stages uh in terms of 10:38 10 minutes, 38 seconds approvals. So they will definitely get launched uh uh by Q3. Both these 10:45 10 minutes, 45 seconds projects should be in the market and which will be followed by the Kandilli development which will spill over to not 10:54 10 minutes, 54 seconds uh FI27 but will be going into FI28. 11:00 11 minutes So uh FI26 really proved that you know Raymond Realy could scale with speed and sophistication. 11:10 11 minutes, 10 seconds And uh a testimony of this is also if we look at the numbers our six-year CAGGR 11:16 11 minutes, 16 seconds since 2021 that is when we gained some kind of size in terms of booking value pre-sales has been a 50% CAGGR we have 11:25 11 minutes, 25 seconds achieved over the six year period and in terms of reported revenue in P&L the CAGGR has been 84%. 11:34 11 minutes, 34 seconds which which is very heartening for us and it is essentially looking at the go beyond philosophy which we have for the 11:43 11 minutes, 43 seconds brand. A commitment to beauty, discipline and excellence has been underlined uh by these numbers. 11:51 11 minutes, 51 seconds So we built a focused pure play branded real estate development brand with a gross development value of approximately 42,000 crores. 12:03 12 minutes, 3 seconds We have our legacy land in Tana which a large portion of that is left out. JDA pipeline is very strong in terms of what 12:12 12 minutes, 12 seconds has been launched and also in terms of what is looking at being contracted going forward uh new projects. We have 12:21 12 minutes, 21 seconds done all this with a tremendous financial discipline in in terms of our debt equity remaining within control, 12:29 12 minutes, 29 seconds our cash flows remaining strong and most importantly we've gained the trust of our customers. Uh clearly all the 12:38 12 minutes, 38 seconds success that we have achieved is because of our projects being wellreceived in the market and get giving us strong pre-sales at the time of launch itself. 12:50 12 minutes, 50 seconds So going forward, our focus remains on driving sustainable growth and delivering consistent long-term value to our share of shareholders. 12:59 12 minutes, 59 seconds We initially told the markets that we would grow over the years and we have delivered as per plan uh year upon year 13:07 13 minutes, 7 seconds consistently and whatever promises we have made year on year, we have not faltered on any of those promises. And 13:16 13 minutes, 16 seconds with that uh thank you very much. My opening remarks are over and I will now open the floor for questions. 13:25 13 minutes, 25 seconds Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press 13:32 13 minutes, 32 seconds star and one on their touchstone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are 13:41 13 minutes, 41 seconds requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. 13:54 13 minutes, 54 seconds We'll take our first question from the line of Yashas Paramesh from G7 Capital. Please go ahead. 14:04 14 minutes, 4 seconds Hi, am I audible? Yes, please go ahead. 14:08 14 minutes, 8 seconds Uh, hi Mr. Harmon. Hi uh to the entire management team. First of all, congratulations on the splendid quarter 14:17 14 minutes, 17 seconds and you know really wonderful results you've provided the whole year. Uh I have a bit of a 14:25 14 minutes, 25 seconds basic question. Uh it's just on the um trying to understand how the collections 14:32 14 minutes, 32 seconds work. So let's say um Q4 FY26 we were to sell um you know 100 rupees of flats or 14:42 14 minutes, 42 seconds that would be a pre-sales booking amount. Um how would that cash ultimately flow to us over how many quarters or over how many years? 14:55 14 minutes, 55 seconds Yeah. So but there is no standard answer to that. It depends uh from project to project uh on a weighted average. 15:03 15 minutes, 3 seconds Yeah. So so to give you an example I think that's the best way to do it. Uh so we've launched let's say the project 15:11 15 minutes, 11 seconds in can which is which is to be delivered in 4 to 4 and a half years time. So whatever we have sold will get collected 15:18 15 minutes, 18 seconds over a 4 year period and uh a large part of that uh is linked with the superructure getting completed. So in 3 15:27 15 minutes, 27 seconds years time almost 80% of that cash flow comes to us and for the last year about roughly about 20%. And similarly if it's 15:36 15 minutes, 36 seconds a four five year project then uh you know the period will get extended by maybe six more months or nine more 15:42 15 minutes, 42 seconds months. So that's how really it that's the cycle how it operates. 15:48 15 minutes, 48 seconds Understood. So the payment terms are usually uh kind of linked to where the project 15:55 15 minutes, 55 seconds is based on the structure and the number of slabs put up. Right. 15:59 15 minutes, 59 seconds That's right. They they're all construction link payment plans. 16:04 16 minutes, 4 seconds Okay. Understood. So they'll obviously differ from project to project. 16:08 16 minutes, 8 seconds That's right. But but they're they're pretty standard in that sense. I mean if it's a if it's a 20story building then uh you know by the time you get to 20th 16:17 16 minutes, 17 seconds story you would have collected almost 80% of the collection. If it's a 40 reason you would have collected 80%. 16:28 16 minutes, 28 seconds Okay. No the reason I asked is um Raymond builds you know puts up floors much faster than anyone else. I can't go with the standard assumption. 16:39 16 minutes, 39 seconds Um that was so that's very kind of you to say what 16:44 16 minutes, 44 seconds [snorts and clears throat] 16:45 16 minutes, 45 seconds um yeah so that was the first question and and then the second question is and I asked this because um you know uh 16:53 16 minutes, 53 seconds actually I think I'll keep that question aside but I just wanted to express my gratitude um for you know all the 17:02 17 minutes, 2 seconds transparency and you know walking those walks and yeah Happy to be here, happy 17:10 17 minutes, 10 seconds to keep, you know, holding shares and yeah, thank you so much and all the best. Looking forward to a great FY27. 17:17 17 minutes, 17 seconds Thank you so much. Really appreciate the kind words. 17:22 17 minutes, 22 seconds Thank you. We'll take our next question from the line of UA Lal and individual investor. Please go ahead. 17:33 17 minutes, 33 seconds Your line is unmuted. 17:35 17 minutes, 35 seconds Yes. Yes, I'm audible. Yes. Thank you for the opportunity and congratulations on the great execution. So my first 17:42 17 minutes, 42 seconds question is for the last couple of years the pre-sales in A have been falling. It was around 1950 crores for FY24 then 17:51 17 minutes, 51 seconds 1,800 crores in 25 then we have done only 1360 crores in FY26 in fun. So are we facing increased 18:00 18 minutes competition or just overall market absorption has slowed down over there? 18:07 18 minutes, 7 seconds See the Tana Tana sales is dependent on what is the product we have in the market for that particular year. So we 18:15 18 minutes, 15 seconds have a mix of products in Tana. We have two BHK inventory. We have three BHK inventory and then we have some retail 18:22 18 minutes, 22 seconds inventory as well. And of course our highest brand in Victus also has some element of inventory there. But uh the 18:31 18 minutes, 31 seconds large portion is 2 BHK and 3 BHK inventory which are 10X brand and addressed by GS. Now each year we had a 18:40 18 minutes, 40 seconds different product mix which we could offer in the market because you know getting approvals and launching projects is a cycle in itself. But having having 18:50 18 minutes, 50 seconds said that uh the straight answer uh to your question is that in Tana competition has been intense for the 18:58 18 minutes, 58 seconds last 20 years. Even when we were not present in this market, we we started six seven years. But Tana has been an intensely competitive market and that's 19:07 19 minutes, 7 seconds why most people in Tana don't have pricing power like some of the other markets developers get pricing power 19:15 19 minutes, 15 seconds after first year you know of launching of the project but Tana has remained more or less very marginal increase in 19:24 19 minutes, 24 seconds prices over the years and it's primarily because of competition. So competition yes is there but it's always been there. 19:33 19 minutes, 33 seconds So year on year you may not see growth because there is a limitation to how 19:40 19 minutes, 40 seconds much you can grow in one micro market in one location. 19:44 19 minutes, 44 seconds Uh unless unless you're getting price growth. See the growth can only come either through volume growth or price growth. So if price is not growing then 19:53 19 minutes, 53 seconds volume is the only way you can grow and there's a limitation to how much volume can grow in one micro market in one location. So that's the scenario which is getting played out uh in uh in Tana. 20:05 20 minutes, 5 seconds So there is no challenge we are facing but uh year on year depending on the mix on an average if you see we would have 20:14 20 minutes, 14 seconds sold last four five years on an average between 1,300 to,500 crores each year 20:20 20 minutes, 20 seconds that's been our average and that average average will not uh change significantly 20:27 20 minutes, 27 seconds going forward also I think is a achievable number because 20:34 20 minutes, 34 seconds we have a very strong location, one of the best locations in Tana that we have and uh yeah, so consumer prefers that 20:42 20 minutes, 42 seconds and like I said pricing still remains attractive in terms of affordability for consumer. 20:48 20 minutes, 48 seconds So that's that's really how it plays out. So there is no cause for concern, nothing that worries us that something is dropping in terms of sales or it's 20:56 20 minutes, 56 seconds becoming difficult. None of that is there. 21:00 21 minutes Uh okay thank you for the detailed answer and also like can you explain the difference across our JDS that create 21:07 21 minutes, 7 seconds that huge range in the time that we take to bring it to market because like some few months we are able to turn around 21:15 21 minutes, 15 seconds very quickly and some like mahim which we signed in calendar year 23 we are yet to launch them. [clears throat] So what creates this huge variance? 21:24 21 minutes, 24 seconds Yeah. So, so each deal is uh unique in terms of uh a maturity level b also 21:31 21 minutes, 31 seconds depends on counterparties uh how quickly they move since you know JDA is joint development uh agreements. So the joint 21:40 21 minutes, 40 seconds word is very important the first word uh so we are also dependent on timelines 21:47 21 minutes, 47 seconds for some of our partners and counterparties which are there part of it. So some are at advanced stage they 21:54 21 minutes, 54 seconds move faster. To give you an example, the BKC project that we did there uh the society actually had done a deal with 22:04 22 minutes, 4 seconds somebody else and they were waiting for 7 years and during that 7 years they had done so much of work that when we came 22:10 22 minutes, 10 seconds on the scene it took us only 9 month 9 months approximately to finish everything because the society was ready 22:18 22 minutes, 18 seconds to such a level and compared to that when I look at Mahim uh it was such a 22:25 22 minutes, 25 seconds dispar group which was there. Uh a lot of senior citizens were involved in that. Uh and managing committee also had 22:34 22 minutes, 34 seconds issues with some of the residents over there which took time to resolve between themselves and they had done no work. 22:42 22 minutes, 42 seconds They had just you know got got the idea and they had floated the tender for the first time and there it has taken us 22:49 22 minutes, 49 seconds almost 2 and 1/2 years. So somewhere the average for a project is about 15 months 22:56 22 minutes, 56 seconds to 18 months. Uh some may take 2 and 1/2 years, some may happen in 9 10 months. 23:02 23 minutes, 2 seconds And in fact the Vadala project we were able to launch within six seven months of signing because it was a very mature 23:08 23 minutes, 8 seconds project and a lot of approvals were already in place. So most of these deals you know are opportunistic. 23:16 23 minutes, 16 seconds they they don't come at the same stage of completion to us. So it all depends on that. 23:26 23 minutes, 26 seconds Okay. And are we also planning to launch a mixed development having commercial and office space of over 1 million 23:33 23 minutes, 33 seconds square ft in Kane? Like we have seen some layout plans over social media. 23:39 23 minutes, 39 seconds Just if you can clarify or announce this. 23:42 23 minutes, 42 seconds See as of as as of now we have not announced any commercial development in Tana but we have uh an area which is 23:50 23 minutes, 50 seconds master planned and earmarked for commercial development and it's not a new development. It's been originally like this for the last 7 8 years. We 23:59 23 minutes, 59 seconds will activate it at the right time. That time doesn't seem to be very far but as of now we haven't pressed the button. 24:08 24 minutes, 8 seconds Okay. And lastly, how is the JDA pipeline looking like? Because like last year we had guided for 5,000 to 10,000 24:17 24 minutes, 17 seconds edition of new GDB we did 3,000 but like are the redevelopment markets getting overheated because of which we are not 24:26 24 minutes, 26 seconds building or like how will new business development look going forward? 24:31 24 minutes, 31 seconds Now see business development has been pretty strong. We have evaluated a lot of projects and you are right to an extent that there are some parts of the 24:39 24 minutes, 39 seconds market which are overheated and we have to be cautious in uh and disciplined in the deals that we take. So and we have followed the extreme form of discipline. 24:50 24 minutes, 50 seconds Uh we we had quite a few deals in the pipeline which currently are uh undergoing uh different stages of 24:57 24 minutes, 57 seconds negotiation and documentation. So some of uh those deals have spilled over into this year FI27 25:05 25 minutes, 5 seconds and uh you would you would certainly hear from us uh more and more deals. The the pipeline is pretty strong. 25:16 25 minutes, 16 seconds Okay. Uh if I may please the last one. 25:18 25 minutes, 18 seconds So I was just seeing the numbers for Bandra Bandra's first JD. We had originally guided for a 2,000 cr plus 25:27 25 minutes, 27 seconds revenue. But do you think given the current market scenarios we can exceed that somewhere significantly? 25:35 25 minutes, 35 seconds So we had guided about I think 2,100 or so if I'm not mistaken right in the beginning for the first one uh the 25:44 25 minutes, 44 seconds address by GS uh uh in Bandra. So we will definitely do better than that on the top line. 25:55 25 minutes, 55 seconds Thank you. Thank you and all the best. Congratulations for great application. Thank you so much. 26:00 26 minutes Thank you. We'll take our next question from the line of Daril Zeri from Crown Capital. Please go ahead. 26:10 26 minutes, 10 seconds Uh hello. Uh good evening sir. Thank you so much for taking my question. Firstly, congratulations on a really great set of numbers sir. Uh hopefully I'm audible. 26:19 26 minutes, 19 seconds Hello. Yes sir. Shil please go ahead. 26:21 26 minutes, 21 seconds Yeah. Yeah. Yeah. Hi sir. Uh so just uh like uh one question regarding our margins. So how should we look at our 26:30 26 minutes, 30 seconds IITA margins or like or PAT margins that you would say because just want to understand like in FI26 we had a higher 26:37 26 minutes, 37 seconds revenue but a lower uh PAT. So just wanted to understand how would that pat margin. So just want to understand that 26:44 26 minutes, 44 seconds like how do how do we do we we are looking at PAT margin pat or a bit whatever you would be 26:52 26 minutes, 52 seconds comfortable. So yeah. So see if you if you look at the 26:59 26 minutes, 59 seconds beta margin that we have reported for FI26, it's around 16% is what we have 27:06 27 minutes, 6 seconds reported on a blended basis and uh we've improved that uh number from the first 9 27:14 27 minutes, 14 seconds months cumulative that we had reported which was around 13%. And uh the improvement has happened to 16%. 27:21 27 minutes, 21 seconds Now what what really happens is uh it's a cycle for all of these projects. Now 27:29 27 minutes, 29 seconds when we launch a project at that time the beta margin for a project is pretty low. Uh but when we contract uh a deal 27:38 27 minutes, 38 seconds we don't look at anything less than 20% margin. We don't sign any which will give us less than 20% beta margin. But 27:47 27 minutes, 47 seconds uh it it may start off in single digits when we launch the project for the first 6 months and then it creeps up and 27:54 27 minutes, 54 seconds towards the end it gives a higher but on a blended basis it gives us 20%. Now it so the blended margin for the company 28:02 28 minutes, 2 seconds will depend on how many project launches have happened recently and how many mature projects are there in the mix. So 28:09 28 minutes, 9 seconds it will it will be in a range. It will never be a specific point or you will not be able to plot and say oh it will 28:17 28 minutes, 17 seconds keep growing keep growing keep growing and one day it'll hit 100%. That's never going to happen. Uh so 28:25 28 minutes, 25 seconds if because if anything which keeps growing will eventually hit 100%. 28:30 28 minutes, 30 seconds On a lighter note I'm saying that no no no fair enough. I understand that what really happens. So I mean to to 28:38 28 minutes, 38 seconds answer your question squarely I mean our target is to hit a 20% a bit margin as 28:46 28 minutes, 46 seconds quickly as we can and that will happen let's say if I have 10 projects and out of that I have seven projects or six 28:55 28 minutes, 55 seconds projects which are mature and I am introducing two three new projects uh on an ongoing basis every time we will be easily able to hit that margin profile. 29:07 29 minutes, 7 seconds and we have anyway on an upward trajectory 16% I and all these projects we have launched in Q4 will will mature 29:15 29 minutes, 15 seconds over the next 12 months. So so FI27 looks good and FI28 looks even better. 29:24 29 minutes, 24 seconds Uh okay fair fair enough sir just wanted to like understand like uh so when we have a lot of JDS so right now I think 29:33 29 minutes, 33 seconds in FI27 you're planning two JDS right so just when we start launching them so quarterly the blips can come because 29:41 29 minutes, 41 seconds that a new launch has happened so blip can come but overall for the full year we can expect like the margin trajectory to go up is that like the correct 29:49 29 minutes, 49 seconds understanding yeah by 27 I my my suggestion would be 29:56 29 minutes, 56 seconds to assume a flat to marginally upward trajectory uh like we've delivered 16%. 30:04 30 minutes, 4 seconds So I mean my suggestion or guidance would be to assume between 16 and 18% as the VA margin on a blended basis for FI27. 30:15 30 minutes, 15 seconds Oh okay. Uh fair fair enough sir. And so just in terms of revenue recognition sir uh what is the policy that we follow? So 30:23 30 minutes, 23 seconds will it be like as the project completes we you know book a bulk of revenue or is it project completion basis uh because 30:32 30 minutes, 32 seconds just what because the quarteronquarter revenue will be quite fluctuating right or how should we look at the revenue sir? So our our our revenue does not 30:42 30 minutes, 42 seconds fluctuate uh simply because we have consistently followed percentage completion method for profit booking uh 30:49 30 minutes, 49 seconds for all of our projects right from inception and uh that's why you would see consistency and and it's a it's a 30:56 30 minutes, 56 seconds true and fair view of the business in that sense because as the progress is going and based on how much sales have happened uh the revenue gets recognized. 31:06 31 minutes, 6 seconds So you will not see lumpiness uh in our uh reporting which is the case with some of the other players because a lot of them follow completed contract method. 31:17 31 minutes, 17 seconds So every time a project complete suddenly a lumpy amount comes and then next quarter it falls. For us that will 31:24 31 minutes, 24 seconds not be the case and uh the reason for that is the method of accounting that we follow is percentage competition. 31:33 31 minutes, 33 seconds Okay. So, so just to understand if we follow percentage of completion. So then ideally just so the Q4 revenues and that can be maintained because as we you know 31:41 31 minutes, 41 seconds complete more like the revenue will be coming in in orderly manner right. So in terms of our revenue uh we could have 31:50 31 minutes, 50 seconds like uh the the Q4 run rate I'm just asking for an average not like an exact number sir but that run rate would be the range of right what we would be 31:57 31 minutes, 57 seconds doing because that's how our quarterly you know we've been just growing revenue with more and more launches coming our revenue will keep on increasing when we follow percentage of completion. Is that fair to understand? 32:07 32 minutes, 7 seconds Uh yes and no. But uh the the fair way to look at this uh would be what was the 32:14 32 minutes, 14 seconds last year's total number and what will be the growth on an annual basis because this is also a seasonal business. Uh we 32:22 32 minutes, 22 seconds have to be mindful of that because each quarter is not exactly the same as the other quarter. Q1 and Q2 are usually 32:31 32 minutes, 31 seconds light and Q3 and Q4 are slightly better because Q3 around Q3 you have the festive season and Q4 all the other 32:40 32 minutes, 40 seconds pushes are there and weather is better and uh Q2 you have the monsoon in Bombay and Q1 all the exams and also the 32:49 32 minutes, 49 seconds inospicious period plays a role it's a large ticket purchase so because of that the right way to look at it is last 32:57 32 minutes, 57 seconds year's sale and assume what will be uh the increase going forward and we've always given a guidance that you can 33:04 33 minutes, 4 seconds expect a minimum 20% growth from us on the pre-sale number and on the top line 33:11 33 minutes, 11 seconds as well and uh for FI27 we will definitely do better than that is all I 33:19 33 minutes, 19 seconds can tell you just now okay fair enough so and just last question from sir like in terms of business development so we have you know 33:26 33 minutes, 26 seconds gone for lot of mic micro markets like uh are we looking anything in you know south Bombay in terms of redevelopment or something like is that like a place 33:35 33 minutes, 35 seconds where you know we are looking at or what other micro market are we targeting sir south Bombay we are very cautious 33:43 33 minutes, 43 seconds because we have a certain view on this market and uh we will only be present in south Bombay 33:50 33 minutes, 50 seconds market if it makes sense to us in terms of deal structure and the returns that we will get 33:57 33 minutes, 57 seconds And the other micro markets we are looking at is the western suburbs and uh eastern suburbs primarily western 34:04 34 minutes, 4 seconds suburbs is where we are focusing a lot and uh currently we've got a lot of uh projects around BKC and that remains our 34:13 34 minutes, 13 seconds focus area because that's a very strong employment hub heart of the city and if we can give products which are 34:21 34 minutes, 21 seconds affordable luxury we believe that there will always be demand for that uh irrespective ective of the market cycle also. 34:30 34 minutes, 30 seconds Okay, fair, fair enough. Okay, that's it from my side. So, thank you so much. All the best. Thank you. 34:35 34 minutes, 35 seconds Thank you. Next question is from the line of Ishita Looda from Swan Investments. Please go ahead. 34:42 34 minutes, 42 seconds Hi sir, thank you for the opportunity and congratulations for a strong quarter. Um, so first question is what 34:50 34 minutes, 50 seconds is our effective economic interest in the Kandilli project? 35:01 35 minutes, 1 second Sir, you're on mute. Yeah. An uncle, you want to take that? Hello. 35:09 35 minutes, 9 seconds Yes, sir. We can hear you. Yeah. Yeah. Can you repeat the question? 35:15 35 minutes, 15 seconds What is our effective economic interest in Kandi project? 35:20 35 minutes, 20 seconds Uh yeah. So the gross GDP is 3,000 crores for our kindly project 35:29 35 minutes, 29 seconds and at the same time we are looking for a margin of around the same what we have guided around 20 to 22%. 35:40 35 minutes, 40 seconds Ankor she's she's asking what is your revenue share? Yeah. 35:48 35 minutes, 48 seconds Revenue share is 70% for Raymond. For us it's a 70%. 35:54 35 minutes, 54 seconds Okay. Um and uh how is the sales response for Pokean Road project and S project been um in FI27 so far? 36:06 36 minutes, 6 seconds So uh I'll take that uncle. So see the PRAN road is the entire 100 acre land uh 36:13 36 minutes, 13 seconds uh in Tana. We've sold uh close to 1,400 uh crows uh out as pre-sales uh in 36:21 36 minutes, 21 seconds during the year. So it's been pretty strong and very good and consistent with the earlier years. As far as the scan project is concerned, can was launched 36:29 36 minutes, 29 seconds only in the month of February and uh we have we have seen a very very strong response on that. uh I mean even in a 36:38 36 minutes, 38 seconds short period of time while we had only few days to capitalize uh we've seen a good response and it's a it's a very 36:47 36 minutes, 47 seconds insular micro market uh there is very little migration which happens in science so people within scan 36:55 36 minutes, 55 seconds only buy science but it's a strong micro market 37:02 37 minutes, 2 seconds and the actual actual numbers are there in our investor presentation You can you can look at the actual numbers. Uh the 37:10 37 minutes, 10 seconds details are given in terms of units, square footage, value. You will find that in the investor deck. 37:20 37 minutes, 20 seconds Yeah. Okay. Um because it was showing only 4% of the value launch sold in time. That's why I was asking. 37:27 37 minutes, 27 seconds So so the latest. 37:30 37 minutes, 30 seconds So what is the concern with that? You have to start somewhere. 37:34 37 minutes, 34 seconds when you start selling you start at 1% go to 2 3 4 that's how you will sell because only few days we had it's not as 37:43 37 minutes, 43 seconds though we launched and we had one year to sell right okay so we have launched on 24th of March 37:51 37 minutes, 51 seconds 20 24th of March sorry my mistake we launch we only had one week okay 37:59 37 minutes, 59 seconds understood also um to get uh 1,800 to,500 crores of annual pre-sales in 38:06 38 minutes, 6 seconds tarnish. How much uh GDV do we have to launch every year? Uh we we already have enough GDV which will 38:16 38 minutes, 16 seconds serve us uh for the next 6 months and uh we we have two two more launches which 38:23 38 minutes, 23 seconds are which are planned in in Tana and uh they will happen during the year but as 38:30 38 minutes, 30 seconds of now we have enough inventory. We I mean we are not worried on the inventory front. Actually last year we had a 38:37 38 minutes, 37 seconds situation where in Q1 and Q2 we were very low on inventory and that was the situation we were facing but we no 38:45 38 minutes, 45 seconds longer have that situation. We've already launched enough uh in H2. Okay. 38:52 38 minutes, 52 seconds All right. Um and uh do we have faced any impact on the construction cost due to the commodity price escalation um 39:00 39 minutes because of the war um significant that has that can result in a margin. 39:09 39 minutes, 9 seconds So, so construction cost impact will actually play out over the longer period of time. But, uh, we've done some 39:16 39 minutes, 16 seconds scenario building and we are expecting about 3 4% uh uh impact on costs. If 39:24 39 minutes, 24 seconds this goes on for a long period of time, if it dies out in the next 2 months or 3 months, you will not even see that kind 39:32 39 minutes, 32 seconds of impact. But uh the absorption capacity for that cost increase is there in the market and we will pass it on. I 39:40 39 minutes, 40 seconds I don't uh foresee any impact on a bit margins because of this. 39:48 39 minutes, 48 seconds Okay. Um thank you so much. Yeah. You're welcome. 39:53 39 minutes, 53 seconds Thank you. We'll take a next question from the line of Rishab Kotari from Ashish Sha Investment Advisors. Please go ahead. 40:02 40 minutes, 2 seconds Yeah. First of all congratulations sir for posting good set of results. Uh my question is to the head of investor relations Sanit Desa. 40:12 40 minutes, 12 seconds Sir uh my question is uh despite the strong execution scaling JDA portfolio and healthy growth visibility the 40:21 40 minutes, 21 seconds company is still trading at relatively lower valuation. Sir, do you think the company can be more proactive in engaging with the domestic institutions, 40:30 40 minutes, 30 seconds mutual funds and investor conferences to improve the visibility and uh let's say communicate to Raymond uh to the 40:37 40 minutes, 37 seconds investors the Raymond realy story better to the broader market. Sir, over to you. 40:43 40 minutes, 43 seconds So, hi. Yeah, thanks thanks for your question. uh I think uh when it comes to investor relations and engagement with 40:51 40 minutes, 51 seconds various stakeholders whether it is the cells analyst community or the institutional investors uh there has 40:58 40 minutes, 58 seconds been adequate uh you know interaction and engagement that has been happening right from July 1st uh the day when we 41:06 41 minutes, 6 seconds got listed uh till date uh you are right that uh overall the market cap and the 41:14 41 minutes, 14 seconds performance of the stock has has not been great. Uh however, our endeavor is to focus on the business and ensure that 41:22 41 minutes, 22 seconds the narrative has been shared with all stakeholders at all times uh in the most transparent manner. And that's exactly 41:29 41 minutes, 29 seconds what we've been doing. And uh our belief is that as long as the business continues to walk the talk and perform 41:38 41 minutes, 38 seconds with the numbers that we are uh eventually we will not be ignored by the markets. you know it's a it's a journey 41:45 41 minutes, 45 seconds always and it's never a point in time we got separately listed somewhere in July and uh we have not even completed 12 41:54 41 minutes, 54 seconds months after that and uh you've seen the result of posting our Q4 numbers so I 42:02 42 minutes, 2 seconds guess market is also waiting to see you know quarteron quarter in terms of consistency for six quarters they'll 42:08 42 minutes, 8 seconds watch us I I think one or two quarters more and you saw today what happened to the 42:17 42 minutes, 17 seconds market after they saw the results. So I guess that faith will that faith will come with consistency and like I said it's 42:25 42 minutes, 25 seconds always a journey and I mean we as management are very patient about it. So we would request if you could share some of our patience. 42:35 42 minutes, 35 seconds Fair enough. Fair enough sir. And thank you. And sir, my next question is uh the as per the presentation sir the company 42:42 42 minutes, 42 seconds has around 4,000 crores of pending collections from sold inventory while financial year 26 operating cash flow 42:50 42 minutes, 50 seconds has been negative due to growth investments and approvals. So going forward should we expect operating cash flows to turn positive in financial year 42:58 42 minutes, 58 seconds 27 as collections accelerate or will negative cash flows continue for some time because of the ongoing expansion phase? 43:08 43 minutes, 8 seconds So, so let's let's look at it this way. 43:11 43 minutes, 11 seconds Uh that Tana which is my own land releases about 450 to 500 crores of uh 43:18 43 minutes, 18 seconds cash for me every year. So that's the internal approvals which I get from Tana straight away. Now the JDAs which we had 43:26 43 minutes, 26 seconds launched in FI25 they also will start throwing out some 43:32 43 minutes, 32 seconds amount of cash let's say 150. So roughly about 600 crores you can say is 43:40 43 minutes, 40 seconds 600 650 is internal acrals that we get which we generate and then in in terms 43:46 43 minutes, 46 seconds of investment into new deals last year we had to launch a lot of projects and uh that's why we had to invest in the 43:55 43 minutes, 55 seconds approval costs and all because we are not buying land so that's one straight uh saving grace that we have so we are not capital intensive in that extent. 44:05 44 minutes, 5 seconds uh but approval costs are pretty substantial which go to the government and uh only then we are able to launch 44:12 44 minutes, 12 seconds these projects. So the short answer to your uh question is going forward for 44:19 44 minutes, 19 seconds the next next two years you we will be cash negative on an overall basis but internal acros will keep on growing and 44:28 44 minutes, 28 seconds we will keep reinvesting them in building the balance sheet and growing our portfolio because growth growth has 44:35 44 minutes, 35 seconds a price to be paid and cash flow is that price you have to pay but you you get get it back in terms of P&L and growth of the balance. sheet. 44:46 44 minutes, 46 seconds Okay. All right. Fair enough, sir. Got it. Thank you. Okay, sir. So, thank you and all the best for the next quarter. 44:52 44 minutes, 52 seconds Looking forward to have the next call with you, sir. Thank you. Yeah. Thank you. 44:58 44 minutes, 58 seconds Next question is from the line of Tjis Kandelwal from Prudent Equity. Please go ahead. 45:05 45 minutes, 5 seconds Oh, hi sir. Uh thank you for the opportunity and uh uh congratulations for the great set of numbers. So, so sir 45:13 45 minutes, 13 seconds uh we've been we have been tracking some recent reports around ceramic plant shutdowns in Mori because of uh gas 45:21 45 minutes, 21 seconds supply constraint. So uh is it creating any meaningful supply side disruption for our business? 45:30 45 minutes, 30 seconds Uh the short answer is no. 45:35 45 minutes, 35 seconds We have we have we have we have suppliers who are continuing to supply to us at the contracted rates that we 45:43 45 minutes, 43 seconds have and like I I answered in the earlier one only if this continues for a substantial period of time I think there 45:51 45 minutes, 51 seconds will be some sustainable impact on cost but if it gets over in the next 2 3 months I don't think there will be 45:59 45 minutes, 59 seconds anything significant uh which will impact our ability data margins. 46:05 46 minutes, 5 seconds Okay. Okay. Got it sir. And sir uh any guidance uh in on the borrow borrowing side if you can give for FI27. 46:15 46 minutes, 15 seconds So uh we ended the last year which was FI26 at 6 debt to a beta and uh we have internally kept a discipline that we 46:24 46 minutes, 24 seconds will not exceed 1 is to1 debt to equity and we have communicated that to the markets as well. So whatever we do we will stay within that. 46:36 46 minutes, 36 seconds Oh okay sir got it. Thank you. That's all from us. 46:40 46 minutes, 40 seconds Thank you. We'll take our next question from the line of Randir Singh from Randir HUF. Please go ahead. 46:49 46 minutes, 49 seconds Thanks for sir. Hello. 46:54 46 minutes, 54 seconds Yes Rand please go ahead. We can hear you. Please go ahead sir. participate. 47:33 47 minutes, 33 seconds This is margin. 47:58 47 minutes, 58 seconds Edgin 48:20 48 minutes, 20 seconds potential. 48:31 48 minutes, 31 seconds Total gross development value 48:46 48 minutes, 46 seconds actually investor presentation upload. Full breaket. 49:16 49 minutes, 16 seconds Okay. Thank you, sir. 49:18 49 minutes, 18 seconds Thank you. Next question is from the line of Neahul Panchani from 40 cents. Please go ahead. 49:26 49 minutes, 26 seconds Sir, thank you so much for the opportunity. Sir, uh I am new to tracking real estate sector. So I just want to understand how do we arrive at 49:35 49 minutes, 35 seconds the gross development value? That is my first question. 49:40 49 minutes, 40 seconds So gross development value is nothing but an estimate of the total area that you will generate uh for sale and 49:49 49 minutes, 49 seconds multiply that with the current rate prevailing in the market and that multiplication just gives you the gsh development value. 49:59 49 minutes, 59 seconds Right? So uh so as and when we buy new land and you know uh we have more 50:06 50 minutes, 6 seconds visibility the the GDV keeps changing is it? That's right. 50:11 50 minutes, 11 seconds Okay. And and like like how you very transparently quoted that this is our GDV. So do all real estate companies 50:19 50 minutes, 19 seconds have this visibility that how much they have GDB and do they communicate? I mean this players all the good ones will will disclose this. 50:29 50 minutes, 29 seconds Right. Right. Thank you sir. And second question sir because we have operate in a very uh specific market which is tane. 50:36 50 minutes, 36 seconds So who are the top uh three competitors in the tane market. 50:43 50 minutes, 43 seconds So tane is one of the markets I operate in. Tana Tana is now about 45% of the 50:50 50 minutes, 50 seconds market that I operate in. 55% I operate in other markets but uh specific to Tana if I was to answer your question all the 51:00 51 minutes big players are in Tana you can you can imagine any big name all of them are there LDA is there Adani is there is 51:08 51 minutes, 8 seconds there Kalpatru is there pyramal is there and some of the local players are also there the entire universe of it's a very 51:17 51 minutes, 17 seconds large market very deep market very robust market largely investor investor is absent from 51:25 51 minutes, 25 seconds this uh market and it's purely purely almost to the extent of 90 95% actual userdriven a lot of people take loans 51:34 51 minutes, 34 seconds almost 80 85% people take so so salaried uh people will be there and all the 51:41 51 minutes, 41 seconds local businessmen who you know really have factories in bundi and all and kalyan are also living in panavit 51:49 51 minutes, 49 seconds because it offers that kind of living experience. 51:53 51 minutes, 53 seconds So competition there is there is enough and more competition in TH right sir or question 52:03 52 minutes, 3 seconds regarding so because you know I'm not very familiar with Tane so is Tane as big a real estate market as the rest of 52:12 52 minutes, 12 seconds Mumbai or how would you I mean say how how big would be TH or how small would be TH compared to the rest of Mumbai. 52:20 52 minutes, 20 seconds So, so within Tane also there are several micro market. Tane actually is a district right 52:26 52 minutes, 26 seconds and it's pretty large almost 40% of MMR region's volume happens in Tana district 52:34 52 minutes, 34 seconds but uh Tana district will be a little misleading to talk about when we talk about our property because our property 52:42 52 minutes, 42 seconds is in a specific micro market which is between Pokran road number one and Pocran road number two which is which is 52:49 52 minutes, 49 seconds one of the prime localities of Tana and and they are at the highest price point in that uh entire district because Tana 52:58 52 minutes, 58 seconds market ranges somewhere between 7,000 rupees a square foot and goes all the way up to 24 25,000 rupees a square 53:06 53 minutes, 6 seconds foot. So we are in the market where 23,000 to 25,000 rupees a square foot is the range 53:14 53 minutes, 14 seconds right. So so so is this poker one to pan 2 is specific because we Raymond had their manufacturing sites out there or we have bought additional land. 53:26 53 minutes, 26 seconds So this this is our legacy land. I mean 50 60 years ago the factory was set up there and then the factory shifted from 53:34 53 minutes, 34 seconds there about 12 15 years ago and uh since then this land has been available for 53:42 53 minutes, 42 seconds use as a asset and uh about 6 to 7 years ago we started real estate business as 53:48 53 minutes, 48 seconds an experiment on that land and uh then we expanded from there. 53:55 53 minutes, 55 seconds Right sir, thank you so much for the elaborate uh answering. Thank you. I appreciate that. Thank you. 54:01 54 minutes, 1 second Thank you. Ladies and gentlemen, we'll take that as the last question for today. I would now like to hand the conference over to Mr. Haran Sahani for closing comments. Over to you sir. 54:13 54 minutes, 13 seconds Uh thank you so much everybody for being on the call and being patient with us over the last uh two years and 54:21 54 minutes, 21 seconds especially since July since we've got separate listing. Uh really appreciate your patience. So and hope to see you in the next quarter. 54:30 54 minutes, 30 seconds Thank you. 54:32 54 minutes, 32 seconds Thank you sir. On behalf of Antique Stock Broking Limited that concludes this conference. Thank you for joining us and you will now disconnect your lines.