Signatureglobal Ltd — Q4 FY26

Signatureglobal (India) Ltd Q4 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=D_avyIQ0GCI Published: 2 hours ago

0:01 1 second Ladies and gentlemen, good day and welcome to Signature Global India Limited Q4 FYI26 results conference call hosted by ICICI Security. 0:12 12 seconds As a reminder, all participant lines will be in the listenon mode and there will be an opportunity for you to ask questions after the presentation 0:20 20 seconds concludes. Should you need assistance during the conference call, please signal an operator by pressing star then zero on your touchstone phone. Please 0:29 29 seconds note that this conference is being recorded. I now hand the conference over to Mr. Adid Chhatupadhya from ICICI security. 0:38 38 seconds Thank you and over to you Mr. Chas. 0:42 42 seconds Good morning everyone. On behalf of ICIC Securities I'd like to welcome everyone on the call today. Uh as always from the Signature Global Management we have with 0:51 51 seconds us Mr. Praep Kumar Aarwal the chairman and whole time director. Mr. Mr. Lalith Kumar Agarwal the vice chairman and wholetime director Mr. Ravi Agarwal 1:00 1 minute managing director Mr. Dendra Agarwal joint managing director and wholetime director Mr. Rajat Katurya the chief 1:08 1 minute, 8 seconds executive officer Mr. Sanjiv Kumar Sharma the chief financial officer and Mr. Ritika Singh head of investor 1:15 1 minute, 15 seconds relations I now like to hand over the call to the management for their opening remarks and comments over to you. Thank you. 1:25 1 minute, 25 seconds Good morning everyone. 1:27 1 minute, 27 seconds It is a pleasure to welcome you all to the Q4 FI26 earning conference call of Signature Global. 1:36 1 minute, 36 seconds Thank you for joining us today. I hope you have had the opportunity to review our financial results and investor 1:45 1 minute, 45 seconds presentation shared yesterday. To begin, I would like to reflect on the global and Indian housing and economic 1:54 1 minute, 54 seconds environment which continues to support long-term real estate growth. Globally, 2:01 2 minutes, 1 second real estate market have remained stable compared to other asset classes supported by urbanization, improving 2:09 2 minutes, 9 seconds lifestyle and strong demand for quality housing in India. The moment of in 2:18 2 minutes, 18 seconds stronger driven by strong economic growth, rising incomes, rapid urbanization, infrastructure development 2:27 2 minutes, 27 seconds and policy reform that continue to improve transparency and investor confidence in the sector. According to a 2:37 2 minutes, 37 seconds recent GLL report, Delhi NCR recorded a strong 30% yearon-year growth in a 2:44 2 minutes, 44 seconds housing silk during quarter 1 2026 with a guru graph remaining one of the 2:52 2 minutes, 52 seconds high performing markets further highlighting this momentum nearly INR 27,000 3:02 3 minutes, 2 seconds cr was invested into new real estate projects in Guru Gram during the first 3:09 3 minutes, 9 seconds four months in 2026 as per Gura data. Amid this positive 3:17 3 minutes, 17 seconds backdrop, Signature Global has invented its presence across the key residential 3:25 3 minutes, 25 seconds micro market while advancing in the diversification strategy. We have entered in a large scale commercial 3:33 3 minutes, 33 seconds development through a strategic collaboration with RMG group. Through this we will develop a mix used 3:42 3 minutes, 42 seconds commercial project in sector 71 on southern periphery road gurubra. 3:48 3 minutes, 48 seconds Recently we have entered in a branded residence segment with a strategic collaboration with the Tonino Lamorgani 3:57 3 minutes, 57 seconds for a premium branded residence project in sector 71 program. 4:03 4 minutes, 3 seconds This move will further enhance our growth strategy with rising demand for branded 4:11 4 minutes, 11 seconds residents. We see strong long-term potential and will continue to pursue 4:18 4 minutes, 18 seconds similar opportunity align with the involving customer aspirations. 4:25 4 minutes, 25 seconds FYI 26 has been a year to stable progress for Signature Global. We saw a 4:32 4 minutes, 32 seconds strong customer demand across projects, better sales price and constant growth 4:39 4 minutes, 39 seconds in our core market. Our profit for FYI 26 reach an all-time high while revenue 4:47 4 minutes, 47 seconds from operations also grow in a balanced manner. Net debt has come down to 4:54 4 minutes, 54 seconds historical low level reflect reflecting our continued focus on financial discipline. Looking ahead, we remain 5:04 5 minutes, 4 seconds positive on the long-term growth on the housing sector, especially the gurug and 5:10 5 minutes, 10 seconds delenced by better infrastructure, strong end user demand and urban growth. 5:20 5 minutes, 20 seconds We believe the market will continue to offer strong opportunity for quality developer. At Signature Global, our 5:29 5 minutes, 29 seconds focus will remain on timely delivery, customer first approach and financial discipline and sustainable growth. 5:38 5 minutes, 38 seconds With that, I would now like to invite our CEO, Mr. Rajat Katurya to take you 5:45 5 minutes, 45 seconds through the company's financial performance in detail. Thank you once again for joining us today and for your trust and support in signature. 5:57 5 minutes, 57 seconds Yeah, thank you for giving the opportunity. Uh good morning and thanks to everyone for joining this forum today. 6:06 6 minutes, 6 seconds Uh so as a brief for the entire year uh we launched two large um high-rise 6:16 6 minutes, 16 seconds projects during the year. The first launch was uh under the name of Cloverdale which is about 1.75 million square foot 6:25 6 minutes, 25 seconds development in sector 71 uh on the southern peripheral road in Gurau. And the second uh key launch was uh under 6:33 6 minutes, 33 seconds the name of uh signature global server which is even larger almost closer to 3.75 million square foot. This project 6:42 6 minutes, 42 seconds happens to be just off the Dark Expressway market. Put together these two launches contributed almost like 85 6:50 6 minutes, 50 seconds odd percent of the total launches which added up to about 6.5 million square foot. The balance being uh certain 6:58 6 minutes, 58 seconds leftover areas in 12 projects or certain extensions in 12 projects. So you know these two were the uh you know larger 7:07 7 minutes, 7 seconds launches which the company did in its key markets over the previous year. 7:14 7 minutes, 14 seconds uh with the help of these launches and some of the uh inventory which we were sitting with we achieved uh pre-sales of 7:24 7 minutes, 24 seconds 82.5 billion 82 plus uh billion INR 7:30 7 minutes, 30 seconds uh which can be seen in in two manner one is of course as a comparison to the 7:37 7 minutes, 37 seconds previous year which is FI25 there was a dip in pre-sales but uh we prefer to see it more as a longer term trend because 7:45 7 minutes, 45 seconds if you look at the sales pattern between fiscal year 22 till fiscal year 20 26 we've grown upwards of 30% on a 7:54 7 minutes, 54 seconds year-on-year basis so as a longer term basis I think sales has uh an upward trajectory 8:02 8 minutes, 2 seconds uh half of the sales came out of the new launches which the company did in the previous year by and large just just approximations 8:10 8 minutes, 10 seconds uh about half the sale came out of the new launches which the company did. 8:14 8 minutes, 14 seconds While the balance came from sustaining sales from those 12 projects 8:20 8 minutes, 20 seconds and uh overall we uh sold in excess of 5 million square foot and about uh you 8:27 8 minutes, 27 seconds know 2100 plus uh you know housing units got sold in order to achieve this sale which was which was steady across 8:34 8 minutes, 34 seconds quarters. There was no lumpy quarter but yes I think by and large uh we've been selling uh you know on a steady basis across four quarters. 8:43 8 minutes, 43 seconds One of the primary reasons for the same being that uh over the last one or two years we've done multiple launches and 8:50 8 minutes, 50 seconds uh you know we've created some inventory. So hence you know sustaining sales and uh new launch sales uh happen in tandem with each other. 9:01 9 minutes, 1 second I would like to add on that if we look at the trend over the last 8 to nine quarters, the company has launched 9:09 9 minutes, 9 seconds multiple projects both high-rise projects as well as uh large township projects. Uh put together we've added uh 9:18 9 minutes, 18 seconds you know launched almost 21 plus million square foot which has a GDB potential in excess of 30,000 crores uh 300 billion 9:27 9 minutes, 27 seconds INR. So effectively you know we've been we've been formally believing that you know supply creation leads to demand creation and vice versa. So you know 9:35 9 minutes, 35 seconds we've been creating continuous supply across the micro markets in in Gurkao. 9:43 9 minutes, 43 seconds As far as realizations and collection go uh per square foot realization crossed 15,000 uh rupee mark which is of course 9:53 9 minutes, 53 seconds 20% plus uh you know realization on a per square foot basis with the previous year. uh but this was primarily 10:03 10 minutes, 3 seconds led by escalation in each of these individual markets and sale of more group housing product which 10:11 10 minutes, 11 seconds is you know the upper end product being offered by the company. We didn't come up with any new launches of you know mid-rise floors which are uh you know 10:20 10 minutes, 20 seconds comparatively lower in ticket uh ticket size as well as price points. So it was more premiumized product 10:28 10 minutes, 28 seconds and uh in general uh some escalation in each of these markets. 10:34 10 minutes, 34 seconds Now despite uh so bit of dichotomy here that you know one could feel that while the markets in general are not doing 10:42 10 minutes, 42 seconds well why are the sales prices you know still escalating? You know one of the key factors very specific to Gura which 10:50 10 minutes, 50 seconds we are able to understand is that there is still huge shortage of actual 10:58 10 minutes, 58 seconds units which have been handed over to customers. You know a lot of sales has happened over the last few years. Ever since you know the markets have rebound 11:07 11 minutes, 7 seconds but uh still there are only limited availability of livable inventory in Gura market and that continues to push 11:16 11 minutes, 16 seconds up prices of first the secondary stock and as a follow-on impact on the primary stock which you know we are creating on 11:25 11 minutes, 25 seconds a quarterly basis along with uh other players in the industry. 11:30 11 minutes, 30 seconds So in summary, yes, realizations have gone up. They uh went beyond 15,000 rupees a foot 11:37 11 minutes, 37 seconds uh in the previous year. Even in the current year, we do expect certain normative increase, certain inflationary 11:45 11 minutes, 45 seconds increase in selling prices. Uh we are not going to push that sale prices up. 11:51 11 minutes, 51 seconds But yes, I think if market forces help us to price the product at a you know higher price then you know of course we are going to grab that pricing increase for the company. 12:03 12 minutes, 3 seconds Uh collection uh trend was steady uh again very similar to the sales trend that if we look at a longer term trend 12:11 12 minutes, 11 seconds of last 3 to four years uh we'll see an annual sales c collections you know have grown at more than 30%. 12:19 12 minutes, 19 seconds uh whereas uh you know viz with the previous year you know there was a a marginal dip uh in the annual 12:26 12 minutes, 26 seconds collections however it's uh important to note that if we also consider the collection 12:34 12 minutes, 34 seconds stroke realization which the company did out of the JV partnership formed uh put together about 40 billion of annual 12:42 12 minutes, 42 seconds collections and about 12 a.5 billion near about of the money you know which we received out of the JV transaction 12:48 12 minutes, 48 seconds we've uh you can you know the total cash collection by the company stood close to 12:55 12 minutes, 55 seconds about 52 53 odd uh billion INR moving on to the portfolio position uh 13:03 13 minutes, 3 seconds we've till date completed close to 18 million square foot of development 13:10 13 minutes, 10 seconds uh we were anticipating previous year to be better than what it ended up being in terms of completion but There was some 13:19 13 minutes, 19 seconds there is some split slippage into the current year because there were first bit of excessive rains and then you know fairly longitated NGT 13:27 13 minutes, 27 seconds uh you know restrictions got applied but uh you know this year there's bit of cover up activity for us to do. uh 13:36 13 minutes, 36 seconds there's another 12 odd million square foot which is very close to completion and uh you know we are not we are giving 13:44 13 minutes, 44 seconds ourselves let's say just next four to five quarters to complete that entire earth wel stock which will by and large help us complete almost all the 13:53 13 minutes, 53 seconds affordable projects which are still uh under development and and bulk of the floors which we launched under the theal 14:00 14 minutes aasna policy. So both of those projects are uh nearing completion and we don't envisage more than four to five quarters 14:08 14 minutes, 8 seconds now where we are uh in terms of completing that stock. So in a few quarters from now I think we'll be close 14:15 14 minutes, 15 seconds to 30 million square foot of completed and delivered uh you know projects for the company. 14:23 14 minutes, 23 seconds In addition to that uh you know like to club two buckets effectively you know one projects which we've launched over 14:31 14 minutes, 31 seconds the last you know eight quarters which is in excess of 21 million square foot and there's another 19 million square foot which you know land resource we 14:39 14 minutes, 39 seconds currently have in the company. Uh so put together this is about 40 million square foot. put together the GDV of both these 14:47 14 minutes, 47 seconds sets of projects crosses 700 billion INR 70,000 crores of GDV is there in between 14:55 14 minutes, 55 seconds these two subsets of the portfolio amongst the forthcoming uh set of projects which is again nearing 20 15:03 15 minutes, 3 seconds million square ft about 14.5 million will be executed solely by the company whereas about 5.5 million square foot is 15:11 15 minutes, 11 seconds being done in partnership with the RMZ group And I'll talk about that in a little bit more detail uh you know uh 15:19 15 minutes, 19 seconds just in a short while. But in summary 18 million odd completed 12 million nearing completion another 40 15:28 15 minutes, 28 seconds million put together half of it has been launched. We've demonstrated uh you know steady supply through these launches over the last 8 to9 quarters and we are 15:37 15 minutes, 37 seconds in a very good position to launch the balance over the next you know similar uh time period of 8 to 12 quarters. But 15:44 15 minutes, 44 seconds you know put together this portfolio uh you know would let's say in 8 to 12 quarters won't be like a land portfolio. 15:53 15 minutes, 53 seconds This would be a cash generating project portfolio worth nearing 700 billion INR. 16:02 16 minutes, 2 seconds Uh talking a little bit more about uh the R&D trade. So uh one in sector 71 16:13 16 minutes, 13 seconds which is on the southern peripheral road as of today we have access to uh 90 plus acres of land and of that about 18 acres 16:23 16 minutes, 23 seconds of land is where we've entered this partnership primarily because this 18 acres was uh we could have done uh you 16:32 16 minutes, 32 seconds know yield assets on that particular land parcel whether it be offices, retail, hotel spaces but that was good 16:38 16 minutes, 38 seconds for office spaces of for commercial development and we've always been on a build to sell 16:46 16 minutes, 46 seconds model of development and wanted didn't want to you know learn a billto yield 16:53 16 minutes, 53 seconds basis by doing it ourselves. So we uh found very complimentary skill sets uh you know in RNZ whom we chose as a 17:02 17 minutes, 2 seconds partner to do this 5.5 million square foot of development. 17:06 17 minutes, 6 seconds This project in itself is at an advanced stage because uh uh land is fully 17:12 17 minutes, 12 seconds licensed which is a very local GA new uh the land is fully licensed uh almost 17:20 17 minutes, 20 seconds all DTCP related approval payments have been made and now we together designing 17:26 17 minutes, 26 seconds uh this project through one of the world's best architects and we do intend 17:33 17 minutes, 33 seconds to activate this project within this year itself. self. 17:38 17 minutes, 38 seconds This project will primarily have office spaces which will be in excess of 4 million square foot between 4 to 4 and a.5 million square foot and the balance 17:46 17 minutes, 46 seconds area will be split across retail and hotel uh spaces and the exact numbers are getting worked out. So we just have 17:55 17 minutes, 55 seconds approximation of these areas as of now but and by and large this would be done 18:01 18 minutes, 1 second on a build to lease basis. We may uh you know sell just a portion of it but all that strategy is yet to be firmed up but 18:09 18 minutes, 9 seconds by and large this will be on a billto-ell basis and once developed we both the partners anticipate that the capital value of this asset will be in excess of 150 billion INR. 18:23 18 minutes, 23 seconds In addition last year we did certain uh business developments in the Sona market which is one of our you know key focus 18:31 18 minutes, 31 seconds markets. uh we spent upwards of 7 billion INR and uh added close to 2 and a half million square foot. Uh this 18:40 18 minutes, 40 seconds business development was lower than what we've been doing over the last couple of years but uh you know we were just treading a little cautiously uh in the 18:48 18 minutes, 48 seconds previous year given all the macro headwinds. 18:52 18 minutes, 52 seconds Uh as a result we start this year with a very strong BD pipeline which you know we can execute. At the same time, we've 19:02 19 minutes, 2 seconds also started this year with a very good liquidity position because of both our operating cash flows as well as the uh consideration out of the RMZ trade. 19:12 19 minutes, 12 seconds Talking about some numbers, uh we did revenue recognition uh of close to 26 19:19 19 minutes, 19 seconds billion. Uh in area and value terms this was about 3.75 million square ft² of 19:26 19 minutes, 26 seconds area got completed and the average realization of the area which got completed was about 68 6900 19:36 19 minutes, 36 seconds rupees per square foot. We generated a gross profit margin of about 30% uh a bit margin of 9 to 10%. 19:46 19 minutes, 46 seconds uh and courtesy the exceptional item which is this transaction I think the PAT surged to about you know 1100 plus 19:54 19 minutes, 54 seconds crores so about another you know 11 billion plus of PAT you know the company generated 20:01 20 minutes, 1 second but if you look at the operating surplus uh we created an operating cash flow of close to 21 billion INR and that could 20:11 20 minutes, 11 seconds be split into three heads uh three similar ish heads so to say. So about onethird of it about 7 billion plus went 20:19 20 minutes, 19 seconds into business development. A similar number went towards debt reduction which really brought our net dent down to near 20:28 20 minutes, 28 seconds zero levels. uh we've been we've maintained over the last one or two years that uh from a development business perspective since we are going 20:37 20 minutes, 37 seconds through a good business cycle we do hope and we are now at a situation where net debt is actually down to you know a near 20:45 20 minutes, 45 seconds zero level it's just 2 billion you know could have been positive to a minus two but by and large you know uh this is 20:52 20 minutes, 52 seconds almost down to a you know zero level uh you know net debt position and the balance of the OCF of the company was 20:59 20 minutes, 59 seconds used towards you know approval cost for upcoming projects or uh for you know interest payments. So that's how this 21 21:08 21 minutes, 8 seconds billion 21 billion plus uh you know of operating cash surplus which the company generated through last year of operation 21:15 21 minutes, 15 seconds you know went into business development reducing debt as well as you know uh doing an approval costs and uh you know 21:24 21 minutes, 24 seconds in making interest cost payments. So fairly good healthy cash position for the company uh fairly bullish on the uh 21:32 21 minutes, 32 seconds you know business development prospects for the coming year and as a culmination of you know as a best estimate basis if 21:40 21 minutes, 40 seconds we see the year going forward uh we are estimating that you know we'll do uh new 21:46 21 minutes, 46 seconds launches in excess of uh 150 billion. Uh a bulk of this is coming through launch 21:53 21 minutes, 53 seconds of certain group housing projects. The first and foremost being in sector 71 you know even Praib updated that we've 22:00 22 minutes done a tie up with Tonino Lomboggony to to do a branded residence uh over some 12 plus acres of land and uh you know a 22:09 22 minutes, 9 seconds little excess of 2 million square foot uh in sector 71 Gura followed by two more launches in the group housing 22:17 22 minutes, 17 seconds category itself uh which will take our yearly launch target in excess of 150 billion. 22:26 22 minutes, 26 seconds Uh in addition we expect to do sales which are nearing uh you know 100 22:33 22 minutes, 33 seconds billion. We achieved this mark uh you know in fiscal 25 but uh you know failing feeling confident at the start 22:41 22 minutes, 41 seconds of the year that you know we should be able to achieve this mark again during the current year both on the bank of 22:48 22 minutes, 48 seconds good launch pipeline as well as certain inventory in hand. So as a mix of both we are hopeful of achieving uh you know 22:56 22 minutes, 56 seconds sales in excess of 100 billion completion and collection uh you know go 23:03 23 minutes, 3 seconds hand in hand uh and hence we've kept a target of uh 50 billion for both of 23:10 23 minutes, 10 seconds these uh metrics uh revenue recognition of 50 billion which means we'll have to do uh you know completions in the range 23:18 23 minutes, 18 seconds of uh 60 to 65 billion and even collections since we are expecting it to cross 50 billion in the year to come. So 23:27 23 minutes, 27 seconds that's the broad uh perspective on the guidance for the current year. So this is a brief of the 23:34 23 minutes, 34 seconds year gone by and what we expect in the year to come. Happy to take any questions from your side. Thank you very much. 23:43 23 minutes, 43 seconds Ladies and gentlemen, we will now begin with the question and answer session. 23:46 23 minutes, 46 seconds Anyone who wishes to ask questions may please press star and one on their touchstone phone. If you wish to withdraw yourself from the question, you 23:55 23 minutes, 55 seconds may press star and two. Participants are requested to use only handsets while asking a question. Ladies and gentlemen, 24:02 24 minutes, 2 seconds we will wait for a moment while the question assembles. You may please press star and one to ask questions. 24:23 24 minutes, 23 seconds The first question is from the line of Perves Kazi from Noama Group. Please go ahead. 24:30 24 minutes, 30 seconds Uh hi, good morning. Thanks for taking my question. Uh so my first question is regarding our launch pipeline of uh 150 24:38 24 minutes, 38 seconds billion. Uh would be great if you could get some more color one with regards to the timeline of various launches across 24:46 24 minutes, 46 seconds the four quarters in FY27 uh and also uh the potential GDV and the location of these topics. Thank you. 24:58 24 minutes, 58 seconds Yeah. Hi Purvey morning. So Perves the first launch is uh so you could split the launch into three different uh sets. 25:07 25 minutes, 7 seconds The first launch is in quarter 1 which is roughly 2 million square foot which is uh these branded residences in sector 71 under the brand name of Tonino Lumbogi. 25:17 25 minutes, 17 seconds Uh so that's u planned for quarter 1 of this year. 25:22 25 minutes, 22 seconds The second launch would be again a similar quantum but that would be more towards or timed 25:31 25 minutes, 31 seconds more around the Diwali time you know uh Q2 stroke Q3 not at the beginning part of Q2 but you know towards later part of 25:40 25 minutes, 40 seconds Q2 or sometime in Q3. Q3 is when you know the second launch is being planned again in sector 71 25:47 25 minutes, 47 seconds and uh the third launch will be towards you know the fourth 25:55 25 minutes, 55 seconds quarter wherein as part of this uh you know trade which we've done with RMZ while the trade is 26:03 26 minutes, 3 seconds for the commercial portion of the development there's a residential component which is held 100% by the company we did not divest did rather 26:12 26 minutes, 12 seconds carved it out uh into a parent before doing getting into that partnership. 26:16 26 minutes, 16 seconds There's another 2 million square footage of very prime land uh you know which is right at the frontage of the southern 26:24 26 minutes, 24 seconds peripheral roads. Another 2 million square foot is expected towards the uh later part of the year uh as part of that development. So that's the split 26:32 26 minutes, 32 seconds off as visible as of now for the entire year. uh all these land parcels are 26:40 26 minutes, 40 seconds completely tied up. Uh we have uh you know full approvals for the first project and you know fairly advanced 26:48 26 minutes, 48 seconds approvals for the other two projects which we intend to launch as part of this year. 26:55 26 minutes, 55 seconds Uh a related question uh we do we have any launch plans for either sector 37D 27:03 27 minutes, 3 seconds or sona this year we have we'll have a smaller launch in 27:12 27 minutes, 12 seconds Sona there was certain inventory which was uh you know held by us you know that we do intend to launch as part of 27:20 27 minutes, 20 seconds project duction uh during during the course of the year uh and in 37D uh we 27:28 27 minutes, 28 seconds are not launching a maybe a new project but yes a kind of a phase two of project server is something which you know we 27:36 27 minutes, 36 seconds will do as part of this year but but that's not like a fresh new launch it's it's more like you know part 27:44 27 minutes, 44 seconds of something a larger project which we've launched and under that banner you know some of the inventory will be you know getting released during the year. 27:53 27 minutes, 53 seconds Sure. Uh and my second question is regarding our uh PD approach. Uh so I I 28:01 28 minutes, 1 second mean we obviously have a very strong uh balance sheet position now. Uh so what is our overall BD approach? Do we want to acquire more land in the three micro 28:10 28 minutes, 10 seconds markets where we are present or we are looking for land parcels in maybe other parts of Gura or other parts of NCR? Uh how should one look at it? 28:22 28 minutes, 22 seconds So see we are focusing on two markets and uh product segment in terms of BD 28:30 28 minutes, 30 seconds right now. One is uh in the Sona market we are we are quite actively uh you know looking at certain transactions and 28:38 28 minutes, 38 seconds quite hopeful of closure in you know the first half of this year itself. Uh so that would be a good uh you know 28:47 28 minutes, 47 seconds addition to the entire portfolio. We've we've done a very successful launch of duction uh in Sona and we want to you 28:54 28 minutes, 54 seconds know create larger uh you know project and create newer inventory in this market. So Sona is one market where where we are quite active. 29:05 29 minutes, 5 seconds Second uh you know the way we did this project called city of colors which was in Maniser uh you know last year that's 29:13 29 minutes, 13 seconds again that was a plotted development comprising of residential and industrial plots. We are looking at some more 29:20 29 minutes, 20 seconds projects, Stoke project of similar nature and hence certain larger format uh you know 29:28 29 minutes, 28 seconds land parcels maybe you know acquired STO collaborated uh again hopefully within first half of this year itself. 29:38 29 minutes, 38 seconds Thanks. Uh I'll come back in for more questions. Thank you. Thanks. Bye. Thank you. 29:46 29 minutes, 46 seconds A reminder to all the participants that you may please press star and want to ask questions. 29:52 29 minutes, 52 seconds The next question is from the line of Rishet Sha from Access Capital. Please go ahead. 29:58 29 minutes, 58 seconds Uh yeah uh thanks for the opportunity sir. Uh two questions from my first on the cash flows so collections. Actually we started the year with about a 6,000 30:06 30 minutes, 6 seconds cr guidance and uh we understand that I mean maybe construction was progress was maybe slower than expected and we ended 30:14 30 minutes, 14 seconds at about 4,000 crores but for the next year we are again targeting about 5,000 crores. So with the contractors and all 30:21 30 minutes, 21 seconds appointed and construction I mean progressing now uh I mean 30:27 30 minutes, 27 seconds would would have would have expected a higher guidance on that. any comment on that? 30:34 30 minutes, 34 seconds Yeah, this it's more like once within twice shy situation. 30:38 30 minutes, 38 seconds We don't want to kind of you know uh get sound very aggressive with regard to these plants. We are very and if you'll 30:46 30 minutes, 46 seconds see even last year uh you know effectively see collection and completion will go hand in hand. Uh we 30:54 30 minutes, 54 seconds are giving a number on both these accounts which we feel is fairly achievable. Sure. 31:02 31 minutes, 2 seconds Okay. Uh fair. And secondly, bookkeeping question. So in the in uh ongoing projects, what would be the value of the inventory that we have right now? 31:13 31 minutes, 13 seconds It's very minimal. It would be about I think it's coming in the presentation. 31:19 31 minutes, 19 seconds It's probably 7 million or something which uh you know is there not the ones which we've recently launched uh over 31:27 31 minutes, 27 seconds there that number will be closer to 70 to 80 billion things which we've 31:33 31 minutes, 33 seconds launched recently but as part of the ongoing book I think that number is about 7 billion sir. 31:41 31 minutes, 41 seconds Okay. So about 80 85 billion of total inventory including detail. Yes. Thanks. 31:50 31 minutes, 50 seconds Thank you. 31:53 31 minutes, 53 seconds You may please press star and want to ask questions at this time. We'll take the next question from the line of Adid 32:00 32 minutes Chhatadada from ICICI securities. Please go ahead. 32:05 32 minutes, 5 seconds Yeah, thank you for the opportunity. The first question is on our launches of 15,000 crores which you have lined up. 32:11 32 minutes, 11 seconds So in our guidance how much are we targeting to selling out of that in as part of guidance any ballpark number 32:20 32 minutes, 20 seconds so uh see the first target as we launch any new project is to achieve 32:27 32 minutes, 27 seconds uh you know that 40% sort of a benchmark number you know out of the launched value because you know with a 40% achievement 32:36 32 minutes, 36 seconds uh we are able to very comfortably cover uh the construction costs over the span of that project. So that tends to be our 32:44 32 minutes, 44 seconds first primary target which we give to our sales team. So if you look at the balance sheet position of this entire 40 million in terms of recently launched 32:52 32 minutes, 52 seconds and forthcoming projects you know this 700 billion worth of GDV exists at the same time on the liability side in terms of actual net debt it is just 2 billion. 33:02 33 minutes, 2 seconds So honestly a simple way to understand the balance sheet is that basis the operating cash flows earned over the 33:10 33 minutes, 10 seconds last you know decade we've accumulated this uh you know portfolio projects and of course you know proceeds from the IPO 33:19 33 minutes, 19 seconds you know which came in but there is no significant debt sitting on the books. 33:24 33 minutes, 24 seconds So as we launch any new product of course 40% is the minimum internal benchmark which we create. So if we launch products worth you know 15,000 33:32 33 minutes, 32 seconds crores we will target like you know about 60 billion to be achieved out of these projects and the balance you know 33:41 33 minutes, 41 seconds give or take should come out of the sustainance you know sales being done by the company. 33:47 33 minutes, 47 seconds Okay. So 4,000 from sustainance and I think you mentioned number 8,000 crores the inventory you have to sell or uh is that higher? Yes. 33:56 33 minutes, 56 seconds So you're looking to monetize half the inventory this year from the sustainance uh projects and another 6,000 cr which is 40% of 15,000 crunch. 34:08 34 minutes, 8 seconds It's interesting that is yeah okay fine sir. Uh the second question is now with the RMC tie up done 34:15 34 minutes, 15 seconds uh could you just help us guide what are going to be the capex requirements of the next four five years and all the accounting how does this work means uh 34:24 34 minutes, 24 seconds is this something JV off the books or will the entire capex come onto our books uh how does it work in terms of 34:31 34 minutes, 31 seconds the capex uh will only signature do it or RMZ will also take an equal so just help us understand the structure now 34:39 34 minutes, 39 seconds going forward yeah so I Commercially, this is a 50/50 uh joint venture. No one owns one share 34:47 34 minutes, 47 seconds more than the other. So, it's it's absolutely equal uh you know share partnership with equal controlling 34:54 34 minutes, 54 seconds rights both in terms of directors and any representation. It's absolutely equal 35:00 35 minutes bases our skill sets. We've divided the roles and responsibilities for instance you know u the land was already in place 35:09 35 minutes, 9 seconds any approvals related activities something which we'll take up any you know construction related activities because of our uh you know local 35:17 35 minutes, 17 seconds presence is something you know which we'll take up uh RNG in parallel while you know design is a joint aspect but still you know they will take some lead 35:26 35 minutes, 26 seconds on the design side uh you know and appointment of certain you know larger contractor ctors with whom they have a good relationship and on the leasing 35:34 35 minutes, 34 seconds side. So you know those are the aspects where while the decision- making will remain joint but RMZ will take a lead as far as you know those aspects are concerned. 35:44 35 minutes, 44 seconds In terms of capeex, uh both the parties are open to taking construction uh loan 35:53 35 minutes, 53 seconds for development of this asset and any uh contribution which the JV entity needs 36:00 36 minutes from both uh you know both parties can you know keep pumping in that much requisite equity from their own own book 36:06 36 minutes, 6 seconds to fund the particular development. So about 5.5 million square foot you should assume you know capeex in the range of 36:14 36 minutes, 14 seconds about you know 3500 to 4,000 odd crores should happen by both the parties put together over the next 4 to 4 and a half years. 36:24 36 minutes, 24 seconds Okay 35 to 4,000 crores which means around our share maybe 1500 to 2,000 crores right off of that. 36:31 36 minutes, 31 seconds Yeah. So you but you are saying you may also take that at the at the GB level right you may not uh okay so and just to 36:39 36 minutes, 39 seconds understand the accounting uh whatever money we put in will show up in the consolidated balance sheet as a investment in the GV right it's not a 36:47 36 minutes, 47 seconds direct capex which will come up right on the consolidated balance sheet test if the understanding is correct I'll ask Sanjie to address this 36:56 36 minutes, 56 seconds yeah yeah hi Adv Sanjie here uh you are Right? It is not going to be considered 37:03 37 minutes, 3 seconds as a debt in the consolidated uh balance sheet. Um whatever debt is being or will be taken by this JV, it will remain in 37:12 37 minutes, 12 seconds uh JV's books and if as Rajat mentioned if needed both the partners may invest 37:19 37 minutes, 19 seconds something in in this JV in the form of equity. uh that will definitely come as 37:25 37 minutes, 25 seconds an investment as as in the standalone u and uh as well as the consolidated 37:31 37 minutes, 31 seconds balance sheet but you're right that will not add up in the consolidated debt of uh the company. 37:39 37 minutes, 39 seconds Yeah. Yeah. So just to declare a frame it will show up as a investment in the JB right it's that uh whatever we are putting in money incrementally over okay 37:48 37 minutes, 48 seconds fine yeah yeah yeah okay okay fine yeah yeah okay uh that's it from my side that answers my questions yeah thank you and all the best 37:56 37 minutes, 56 seconds thanks a reminder to all the participants that you may please press star and want to ask questions 38:10 38 minutes, 10 seconds We'll take the next question from the line of Perves Kazi from Noama Group. Please go ahead. 38:17 38 minutes, 17 seconds Uh hi u thanks for taking my follow-up questions. Uh so couple of questions. 38:23 38 minutes, 23 seconds First uh I mean how do we see the Gura market now? Uh obviously frenzy has abated, market has normalized. Uh so what are your views on let's say demand? 38:34 38 minutes, 34 seconds Uh I mean we you just said that uh we would expect maybe 40% of our launches 38:41 38 minutes, 41 seconds that we intend to do in FY27 to uh get sold. Uh so what's your view overall on 38:48 38 minutes, 48 seconds demand and pricing and also on the unit sizes front? Uh we are somewhere closer to about 4 cr uh if one looks at our 38:56 38 minutes, 56 seconds FI26 performance. uh in future uh will it remain somewhere around these levels or or or do we intend to rationalize it? 39:08 39 minutes, 8 seconds Sure. Thanks for asking this question. 39:10 39 minutes, 10 seconds So I'll break up the supply and demand of units in Gurawa in two key segments you know. So over the last 10 11 years 39:18 39 minutes, 18 seconds since you know the company came into existence we've created lot of supply in affordable and early mid-inccome segments which was either these 39:26 39 minutes, 26 seconds high-rise affordable apartments or you know low-rise floors under the dinal janavas yujna which which used to exist 39:33 39 minutes, 33 seconds for gura and still exists for areas on the peripher peripheral areas of of uh the gura market. So a lot of supply we 39:41 39 minutes, 41 seconds created and you know of course other players also created in this uh you know market over the last 10 years and bulk 39:48 39 minutes, 48 seconds of that uh launches are seeing have seen completion or are you know seeing 39:54 39 minutes, 54 seconds completion you know over these years in parallel what the launches which we are planning which are these high-rise 40:03 40 minutes, 3 seconds apartments in this particular coming year if you look at the block period 40:10 40 minutes, 10 seconds between 2014 till about 2022 for that seven or eight years while the markets in general weren't doing so well 40:18 40 minutes, 18 seconds there was literally zero supply of newer group housing units in Gurau throughout 40:25 40 minutes, 25 seconds this you know 7 8 years span we've seen quite a few launches in this 40:32 40 minutes, 32 seconds market by a lot of good pedigree players post 2022 but none that 40:40 40 minutes, 40 seconds supply has actually reached a completion stage. So while you know you may feel that okay a lot of supply is happening 40:48 40 minutes, 48 seconds but actually on ground there is very little sort of you know delivered units which are available in Gurau and that's 40:55 40 minutes, 55 seconds why despite uh a runup in prices you know prices continue to go up because there there isn't like adequate supply 41:03 41 minutes, 3 seconds of good quality grade a good location good developer you know gradeA housing spaces uh you know they're not available 41:12 41 minutes, 12 seconds in in the kind of quantum manual assume or estimates them to be in the market. 41:18 41 minutes, 18 seconds So that is why you know we continue to create more supply in this space. We continue to see as a market you know prices still going up a little rather 41:27 41 minutes, 27 seconds than coming down and we feel confident that you know any of these projects which are being 41:33 41 minutes, 33 seconds launched by Signature Global uh you know will get like reasonable absorption of let's say 40% plus at the time of launch 41:42 41 minutes, 42 seconds itself. That's been our kind of experience even in the previous year and you know we are fairly hopeful that you know this trend is going to continue. 41:51 41 minutes, 51 seconds There are certain global you know headwinds right now you know no one can predict how that's going to pan out for the country or for the region but yes 41:59 41 minutes, 59 seconds you know assuming uh the dust settles over you know uh some time I think we have full year and with these two or 42:07 42 minutes, 7 seconds three launches we are fairly hopeful of uh doing what we are guiding towards. Sure. 42:15 42 minutes, 15 seconds Uh second question, I mean of the two major projects that we launched in FI26, Cloverdale and Serb, uh how much 42:24 42 minutes, 24 seconds proportion would we have sold and what proportion of the FI26 collection came from these two ones. 42:34 42 minutes, 34 seconds See put together uh I can uh share the specific number separately with you but put together uh you know if we did 42:41 42 minutes, 41 seconds launches of 10,000 odd crores I think we've we've sold we've done sales in excess of 4,000 crores for entire uh 42:49 42 minutes, 49 seconds bucket put together. So 40% plus sales did get achieved out of uh you know whatever launches as a basket we did in the previous year. 43:00 43 minutes Sure. Uh and uh lastly we did about 700 K of GD in FI26. 43:07 43 minutes, 7 seconds Uh any target guidance for FI27? 43:13 43 minutes, 13 seconds Um the number for the current year I think should be in between 1,000 to 1500 crores. 43:23 43 minutes, 23 seconds Sure. Uh thanks and all the best. Thank you Pavish. Thank you. 43:30 43 minutes, 30 seconds Ladies and gentlemen, uh as there are no further questions, I now hand the conference over to the management for closing comments. Thank you and over to you. 43:40 43 minutes, 40 seconds Okay. Uh thanks a lot everyone. I think uh wishing you all a good day and and a great year ahead. Thank you. 43:48 43 minutes, 48 seconds Thank you. Thanks a lot. Thank you. Thank you. 43:50 43 minutes, 50 seconds Thank you members of the management on behalf of ICICI security. That concludes this conference. Thank you for joining us and you may now disconnect your line.