Q2 2022 Prestige Estates Projects Ltd Earnings Call Hosted by AXIS Capital Holdings Ltd

November 12, 2021

[music].

Operator: Ladies and gentlemen, good day, and welcome to the Q2 FY 2022 earnings conference call of Prestige Estates, hosted by Axis Capital Limited. As a reminder, all participant lines will be in listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star then zero on your touchtone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Samar Sarda from Axis Capital. Thank you, and over to you, sir.

Ladies and gentlemen.

Good day and welcome to the Q2 FY 'twenty two earnings conference call of prestige escaped.

By Axis capital limited.

As a reminder.

Participant lines will be in listen only mode and there will be an opportunity for you to ask questions. After the presentation concludes.

Should you need assistance during the conference call B six millimole per liter by pressing Star then zero on you touched on phone.

Please note that this conference is being recorded.

I now hand, the conference over to Mr. Somers, Florida from Axis capital.

Thank you and what did you say.

Thank you Steven and welcome everybody again for the pristine states have caused you to this conference call.

Samar Sarda: Thank you, Steven, and I welcome everybody again for the Prestige Estates Post-Results Conference Call. As always, it is represented by the senior management from the company. I now request Mr. Azad to come ahead for his initial comments. Sir?

It is represented by the senior management of the company.

I know the question Mr. Duffy, who come back what is the initial commitment.

Good afternoon, everyone I have would be a rent cut.

Irfan Razack: Good afternoon, everyone. I have with me Venkat. I also have with me Amit Mor, CFO, and also Mr. Sharma. It's a pleasure to join this call again, as usual. I think we are in exciting times nowadays. We've... This, the whole, the positivity is there in the market, and this is leading also to an upward spiral. But I think there's lot, lot more that can be done, and a lot more opportunity in the markets if you do it right. And, the quarter gone by has seen some of our record sales for the, for a long time, and I think first time we have done INR 2,000+ crore in a quarter. But that's the beginning. I think we can keep doing much more as we go along.

I also have a small.

Yes, Paul I mean, all the time in such high demand.

It's a pleasure to join this call and the gain on fusion I think we added an exciting science nowadays.

Well just the whole.

No I agree.

Positivity there in the market.

This is a leading also to watch what's vital but I think there's not a lot more that can be done.

There's a lot more opportunity in the market. So if you do it.

Right.

The quarter gone by a heart team to come up all the cartoons for the for a long time.

And I think last time, you had done some public Goldman a cop out but that's at the beginning I think you can keep going much more as we go along but at the same time. We had also very in tune with the whole business of the asset classes I believe that it is all three it's all all we paid off so that macro hospitality that things are picking up nicely.

Irfan Razack: But at the same time, we are also pretty enthused with how the rest of the asset classes are doing, whether it is office or retail or, for that matter, hospitality. Things are picking up nicely, and I'm sure in the next couple of quarters, we'll be going, surpassing all numbers, even beyond what in 2019 we were doing for retail and hospitality. The only disclaimer that I will make is that we should not have any further problems on COVID and lockdown. But if that doesn't happen and if things are normal, I'm sure there are a lot of exciting times ahead. I'll ask Venkat to put in his comments, and then we can open the call for question and answer. Thank you, sir. Good afternoon, everyone.

And I'm sure in the next couple of quarters.

I'm going to stop offering all numbers, even beyond what the 2019 here the need for me to hear that hospitality.

Any broad the only disclaimer that I would make is that we should not have any further problems on cold winter in Knoxville.

That doesn't happen and if things are normal.

Oh I'm sure there are a lot of exciting times ahead.

All right you got to have but it is coming from Ben became open be.

One quick question I'm sorry.

Thank you Todd and good afternoon, everyone didn't devalue the shifts and welcome to both of those conference calls all clubs and theaters.

Venkat Narayana: Thank you, sir. Good afternoon, everyone.

Irfan Razack: Belated Diwali wishes, and welcome to post-results conference call of Prestige Estates. Let me give you a quick recap of our performance during the Q2 and first half of the year, and after that, we can open the forum for question and answers. So let me move. Let me start with operational performance. During the Q2, we registered record sales, and the highest sales that we've done in any given quarter, over INR 2,000 crores, standing at INR 2,112 crores of new sales, up by 88%, compared to year-on-year. Q2 sales have come from 3.56 million sq ft of volume, with an average selling price of INR 5,966.

Venkat Narayana: Belated Diwali wishes, and welcome to post-results conference call of Prestige Estates. Let me give you a quick recap of our performance during the Q2 and first half of the year, and after that, we can open the forum for question and answers. So let me move. Let me start with operational performance. During the Q2, we registered record sales, and the highest sales that we've done in any given quarter, over INR 2,000 crores, standing at INR 2,112 crores of new sales, up by 88%, compared to year-on-year. Q2 sales have come from 3.56 million sq ft of volume, with an average selling price of INR 5,966.

Let me give you a quick recap of our performance during the Q2 and a couple of the yeah.

And then we can open it up for them publishing nonsense, but let me let me start with the Opex is performing.

Q2 is really just kind of do a recorded the highest they've been good.

Any given quarter.

Over two dozen books standing that up we will come back.

He told them 100, and Oh gosh.

You too.

By 88%.

Compared to year on year.

Total sales have come from 3.56 million square feet of volumes with an average selling price up by any means.

Irfan Razack: The sales are backed by good response to our Prestige City, great acreage in the Prestige City, which was sold out within a day of launch. The half year as a whole, if you look at, the total sales are at INR 2,845 crore. We all know the first quarter of this fiscal, two months, two and a half months went in a lockdown itself. We hardly have had, you know, less than a month to operate the way we have done in the Q2. So overall sales are, for H1, are up by 80% compared to year-on-year. We sold 4.64 million sq ft of area at average realization sales of INR 6,137. As Mr.

Uh huh.

The kids are backed by good response to our.

Venkat Narayana: The sales are backed by good response to our Prestige City, great acreage in the Prestige City, which was sold out within a day of launch. The half year as a whole, if you look at, the total sales are at INR 2,845 crore. We all know the first quarter of this fiscal, two months, two and a half months went in a lockdown itself. We hardly have had, you know, less than a month to operate the way we have done in the Q2. So overall sales are, for H1, are up by 80% compared to year-on-year. We sold 4.64 million sq ft of area at average realization sales of INR 6,137. As Mr.

But there seems to be they think that the CCD, which was sold out with and then they have lunch.

Yeah, there's a whole if you look at the total case that our 2018.

845, we all know the cause that Oh this is Kent.

Two months three months, we're getting a lot more simply how do we have had Oh you know there's been a month.

Operating domain.

You too.

So what I'll say is.

Each one of them by 80% compared to get onto yet.

We sold one 4 million square foot, Australia realizations over 6001 of them, but that is something could be.

Oh, I didn't say that that gets people collections, but also Uh huh.

Irfan Razack: Azad said Q2 collections are also highest. We crossed INR 1,500 crore of collections in the quarter. For the entire first half, H1, the collections are at INR 2,573 crore. During the quarter, we launched 3.49 million sq ft of area, and we completed 8.08 million sq ft of area overall. Mainly, Prestige M.G. Road Heights, Prestige Nirvana, Prestige Highfields, Prestige Lakeshore, phase two. So that's broadly the operational performance of the company. And moving on to financial results, during the Q2, we have registered a revenue of INR 1,392 crore.

Venkat Narayana: Azad said Q2 collections are also highest. We crossed INR 1,500 crore of collections in the quarter. For the entire first half, H1, the collections are at INR 2,573 crore. During the quarter, we launched 3.49 million sq ft of area, and we completed 8.08 million sq ft of area overall. Mainly, Prestige M.G. Road Heights, Prestige Nirvana, Prestige Highfields, Prestige Lakeshore, phase two. So that's broadly the operational performance of the company. And moving on to financial results, during the Q2, we have registered a revenue of INR 1,392 crore.

So then when you go to a collection so well.

In the quarter.

And Uh huh each one those collections that are 2573 calls.

During the quarter, we launched the one 9 million square foot area, and we completed the <unk> 8.08 million school stuff media overall.

Mainly it's big enough that it hurts the student had one office to high teens.

They could.

It's too.

So that's broadly the.

The performance of the company.

And moving on to financial results during the field do we have to just say that I've been here with one button figure and then maybe you could book.

Irfan Razack: EBITDA margins are at INR 440 crore, and PAT is at INR 94 crore, and margins are at 32% EBITDA and 7% PAT. During the first half of the year, our total revenue is at INR 2,866 crore, and EBITDA of INR 843 crore, a PAT of INR 186 crore. Margins stand at 30% and 7%. Our debt equity for the quarter is at 0.43. Compared to the previous quarter, it's moved from 0.19 to 0.43, and total net consolidated debt stands at around INR 3,000 crore now. Primarily, the net debt increase, if you look at, is because the cash balances that we had, we have used for the purpose of new acquisitions and growing the organization.

Venkat Narayana: EBITDA margins are at INR 440 crore, and PAT is at INR 94 crore, and margins are at 32% EBITDA and 7% PAT. During the first half of the year, our total revenue is at INR 2,866 crore, and EBITDA of INR 843 crore, a PAT of INR 186 crore. Margins stand at 30% and 7%. Our debt equity for the quarter is at 0.43. Compared to the previous quarter, it's moved from 0.19 to 0.43, and total net consolidated debt stands at around INR 3,000 crore now. Primarily, the net debt increase, if you look at, is because the cash balances that we had, we have used for the purpose of new acquisitions and growing the organization.

So that 400 in Portugal.

You got the main people close on March 31, but it would definitely be done that's going to come back.

During the first.

How about the young adults that they didn't use in 2000, but it hadn't been pacific's growth and maybe do well 843, a band of 186 Mountain standard though.

And then the thing I haven't got basically what are the 24 three.

Compared to the previous quarter. So <unk> moved from point to point and go to a net consolidated debt.

So don't treat told them close now.

Finally, the net debt increase if you look at it is because the cash balances that we have we have used to.

That's why the book itself, New expedition and growing the organization.

Irfan Razack: So it's about reduction in the cash balance, primarily. And when I'll give the update separately on the phase two of the Blackstone transaction, and out of the assets that we have lined up, except for one, which is in the final stage of documentation, the rest all have been concluded. Even the last one, there is two, three points to be addressed, we should be able to conclude. We didn't want to sign in bits and pieces. We wanted to sign all at one go and bring phase two of the entire transaction to the closure.

Venkat Narayana: So it's about reduction in the cash balance, primarily. And when I'll give the update separately on the phase two of the Blackstone transaction, and out of the assets that we have lined up, except for one, which is in the final stage of documentation, the rest all have been concluded. Even the last one, there is two, three points to be addressed, we should be able to conclude. We didn't want to sign in bits and pieces. We wanted to sign all at one go and bring phase two of the entire transaction to the closure.

It's all about reduction in the cash balance family.

And.

Then when he was a big topic in the.

So you still have the Blackstone transaction and Oh about Oh.

I think that you have lined up except for the one we picked up I didn't think of documentation and they started having concluded you and the last one Oh got it.

So three points could be I guess, we shouldn't be able to conclude you didn't want to sign in bits and pieces you wanted to thank all of that one Glenn I'm, bringing a place to obtain their transaction, but the closure, but once the phase two and you're done.

Irfan Razack: But once the phase two is done, and also there is some CS matters that we have out of phase one, which is primarily demerger related, that will have significant impact on the debt/equity ratio. We'll be back to 0.18 post the phase two of the Blackstone transaction, from 0.43 right now. We also have got. You should have seen our presentation, robust pipeline for the launch across the micro markets of Bangalore, Mumbai, Noida, Chennai, and Hyderabad. We have in each of the cities projects lined up for the launches, and we are confident that we should be able to launch more than around 10 million sq ft in the next four months.

Venkat Narayana: But once the phase two is done, and also there is some CS matters that we have out of phase one, which is primarily demerger related, that will have significant impact on the debt/equity ratio. We'll be back to 0.18 post the phase two of the Blackstone transaction, from 0.43 right now. We also have got. You should have seen our presentation, robust pipeline for the launch across the micro markets of Bangalore, Mumbai, Noida, Chennai, and Hyderabad. We have in each of the cities projects lined up for the launches, and we are confident that we should be able to launch more than around 10 million sq ft in the next four months.

And also that he or.

So you get a mic.

As I said, we have all those phase one is primarily he must be underneath it.

That can have a.

Significantly impacting our analytics because they show will be back to Bill's 0.1 week post the pace towards the Blackstone transaction, some 0.4 P M.

And we also have a bar should've seen my presentation, a robust supply if I've been for the lunch across that micro market, So Bangalore Mumbai Noida.

Do you have in each of the cities the projects lined up for the.

Lunches and we are confident that we should be able to launch more than Oh 10 billion slipped to.

In the next four months.

We did so before we'd like to open the floor for the question and answer.

Irfan Razack: With this brief, I would like to open the forum for the question and answers. And, maybe, you know, sorry, two other things that I would like to highlight would be the total spend on the construction, which you normally all of you are interested in knowing. We spent during the quarter on the for-sale projects INR 755 crore of money, and commercial CapEx, INR 185 crore of money, in retail, INR 53 crore, and hospitality, INR 130 crore. Total on the construction during this quarter, we have spent INR 1,123 crore. And for the land acquisitions, deposits with respect to JAD, taxes, buybacks, and all of them put together, another INR 1,000 crore. So total, INR 2,150 crore.

Venkat Narayana: With this brief, I would like to open the forum for the question and answers. And, maybe, you know, sorry, two other things that I would like to highlight would be the total spend on the construction, which you normally all of you are interested in knowing. We spent during the quarter on the for-sale projects INR 755 crore of money, and commercial CapEx, INR 185 crore of money, in retail, INR 53 crore, and hospitality, INR 130 crore. Total on the construction during this quarter, we have spent INR 1,123 crore. And for the land acquisitions, deposits with respect to JAD, taxes, buybacks, and all of them put together, another INR 1,000 crore. So total, INR 2,150 crore.

Maybe.

You know flooding.

But.

I would like to highlight it would be.

The total spend on the construction of a true comedy all of you are interested in knowing if he was Spain.

During the quarter I'm on.

The portal project 750, if I go to a flow of money and commercially I didn't need to.

So for money in retail.

Growth in hospitality, because well still under construction, but he was supposed to be a spin 1000 women didn't completely clubs.

But.

Land acquisition deposit with respect to J D.

Buyback and all of them because I don't know, let's call them close so.

The 30000 barrels a minute because.

They did three we can open the forum for question now.

Irfan Razack: With this brief, we can open the forum for question and answers. Thank you.

Venkat Narayana: With this brief, we can open the forum for question and answers. Thank you.

Yes.

Operator: Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on their touchtone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Aditya Chattopadhyay from ICICI Securities. Please go ahead.

Thank you very much.

We've been lumpy get into question and answer session.

Anyone who wishes to ask a question in the press star and one on the Touchstone telephone.

If you wish to remove yourself from the question queue here my bridgetown into them.

Participants had a question for you is handsets for asking a question.

Ladies and gentlemen, we will reach for a moment to answer question Kim assemblies.

The first question is from the line of ITT have kicked off a day from ICR.

Please go ahead.

Adhidev Chattopadhyay: Yeah. Good evening, everyone. Thank you for the opportunity. Firstly, Subhrakant, I would like to congratulate you on your maiden launch in Mumbai. So first question is on that. So I know it's just early days, so if you just tell us about how has been the response to the Jasdan Classic launch? And for Mulund Cosmos, what is the status of approvals, and when do we see a launch, and how much inventory potentially you could see in phase one being launched over there? So that is the first question.

What do you think everyone. Thank you for the opportunity for snap so let someone like to congratulate you only have to me than lunch in Mumbai.

So first question is on back so I need just a few days, but if you just tell us how about how long has been that it's once the deal gets done plastic launch and you can find willing to parse what did you see what I'm, saying when do we see a long canyon, how much and when people than chili's obscene being launched.

Yeah, I mean, I'm happy to say that the response has been really spectacular enough. There's a lot of interest.

Irfan Razack: Yeah. I mean, I'm happy to say that the response has been really spectacular. There's a lot of interest, and hopefully, when we report to you of the next quarter results, you'll see the numbers. You asked me about Mulund. Yes, the approvals are in place just now. I think even the fees have been paid. We've taken advantage of the reduction of fees also, and hopefully, we'll get all the plans in hand, after which we can even apply for the RERA. We are planning a launch in a proper, measured manner. It may. If it's possible, it may happen this year, this quarter, or maybe it'll go spill over next quarter, because we definitely want to set up a proper experience center. The show units, marketing office, teams are working on it relentlessly.

And hopefully ready to talk to you next quarter.

See the number.

I know you asked me about Malone, yeah, I'd be absolutely clear.

No.

Even if he that'd be my take.

And I want to take up the reduction of Skus also and hopefully even get all the plans in hand. After week you can even apply for the EDA and the airplane.

Launch enough well above 99, Oh man, it's possible that happened this quarter or maybe a divorce below what next quarter, because we definitely want to set up a ballpark.

Miami and additional units marketing office teams are working on it then they can scarcely a bunch of stuff and get some very large different upfront then you want to make a differentiator even double it by market. We wanted a good property that's done well.

Irfan Razack: But, since it's a very large development and we want to make a differentiator in the Mumbai market, we want to do it properly. Jasdan was small compared to what we normally handle, and even that one, we've done it well. It's been received well. There's a lot of broker demand as well as customer demand, and things are looking good.

Small compared to what we eat normally behind them.

Even back to what we've done it when it's been busy.

Woke up the mind of the customer demand.

And things are looking good.

Sure sure.

Adhidev Chattopadhyay: Sure. Sure, sir. Sir, the second question is for Venkat. Sir, of this, INR 5,000 crore out of, in your presentation of the capital WIP, which is there, in upcoming or new projects in the commercial side, what-- how much of this, number would be for Mumbai? And just an update on the DIAL project, are we now going ahead with the project? I noticed that the number of rooms, I think, has been, trimmed down from below to, to below 800 from around 900 plus when the project was first, we were first going to do this project. Yeah, thank you.

I'd say the second question is for think like I said all this our 5000 it could also at all for it yet, but it's an addition of the casualty and wip it just yet.

Not planning on new projects, unless you say I wonder how much of this number would it be fun, Mumbai I'm guessing a big project as you know bleeding edge. It definitely did I notice that the number of rooms, I think has been inbounds from below two 2 billion nine.

900, plus when the project goes well.

Well if you let it go for example, yeah. Thank you.

Irfan Razack: See, on the DIAL project, on the Delhi Aerocity, what we've done is a lot of thought has gone. The conferencing facilities remain the same. Now we've signed up with Marriott finally, and the terms have all been finalized. It's crystallized. But I'm happy to say that we've split this into two boxes. The first box is the luxury part, which is St. Regis, and then you have the conferencing hotel, which is the Marriott Marquis. So all put together, it'll be, I, totally around 185 to 190 rooms, St. Regis, and the balance rooms are Marriott Marquis. But the conferencing facilities are the same. And, of course, office segment also has increased.

Yeah.

And project timing, but it'll keep me what you've done there is a lot of talk has it gone.

The conferencing facilities and it means a team are now signed up with an idea to finer Lee and Tom have all been pregnant I, particularly like.

I'm happy to say that the split this into two boxes.

First boxes, the the luxury spark, which is can you just and then you have the confidence in Montana.

So all put together it can be I thought to be around under the 85 to 190 rooms are saying Jesus.

Islands Lawn and garden market in the conferencing penciling things out but I.

And of course, the office segment also has increased.

Irfan Razack: The overall built area, we are still on the job, and maybe ultimately we'll have 700,000 sq ft of office, either lease it to lease or to sell, and that's the situation as that is concerned. The overall 5,000 that we are talking about, allocatable to Mumbai, the capital employed will be around INR 2,000 crore.

All right.

The Java and maybe ultimately will have 700000 square feet of office I didn't even have to leave the office tenants and that's a situation that's not this kind of thing.

That's all I told them that we're talking about but I look at the vertical Mumbai Capricolum correct when you get them.

Okay.

Adhidev Chattopadhyay: Okay. Mumbai, INR 2,000 crore. Fine. Okay, sir, thank you, and all the best. I'll come back in, I'll come back in the queue if I have more questions.

Okay. So thank you and I'll, let me start thinking I'll come back to Nicholas Campbell.

Irfan Razack: Thank you.

Thank you. Thank you.

Operator: Thank you. The next question is from the line of Atul Tiwari from Citigroup. Please go ahead.

The next question is from the line up.

<unk> from Citigroup. Please go ahead.

Yeah, Thanks, a lot.

Atul Tiwari: Yes, sir, thanks a lot, and congratulations on a very good sale. Just, just two questions. Sir, you have given the net debt number, confirmed net debt as about INR 30 billion. But if I look at the balance sheet as published, you know, in the SEBI format, you know, the current borrowings and the non-current borrowings are about INR 47 billion, minus cash balance of about INR 7.2 billion. That number is about INR 39 billion. So can you reconcile the two numbers? I mean, where is the gap?

Okay.

Just one question.

So you have given today.

As a whole.

Our balance sheet as a bullish.

Okay.

Uh huh.

Following the vote.

47 minus cash balance at all.

That's number though Cherokee language.

So he can.

And then when does it get.

Yeah.

Irfan Razack: So, what you see in the published number, that includes intercompany debt. So it's not outside debt. It is unsecured intercompany debt in the published results, in the SEBI format. What you see in the presentation is the debt that is owed to the external.

Okay.

Oh, so so what you see in the published number.

Venkat Narayana: So, what you see in the published number, that includes intercompany debt. So it's not outside debt. It is unsecured intercompany debt in the published results, in the SEBI format. What you see in the presentation is the debt that is owed to the external.

That didn't go to the company.

So it's not I would say big does that exclude intercompany debt and they published it doesn't look like the that'd be format what was in the presentation.

Or to what extent.

Okay.

Atul Tiwari: Okay. But, I mean, on consolidation, the intercompany debt should be eliminated, right? Because these are the consolidated amount, accounts.

I mean, I'm kind of some additional insight into the company.

That's the thing.

And the major thing.

The most significant near term.

<unk>.

It depends on the she had holding that is then to each other and keeping it.

Irfan Razack: It depends on the shareholding that is there in the each of the entities. Let me do one thing. Let me reconcile that for you and give the breakdown.

Venkat Narayana: It depends on the shareholding that is there in the each of the entities. Let me do one thing. Let me reconcile that for you and give the breakdown.

If we do one thing.

Liberty campaign, that's where you are in and Uh huh.

Okay. Okay.

Atul Tiwari: Okay, sir. Okay. And now that obviously we have seen a very strong quarter in terms of sales, so any comments on what the full year number could be this time?

And now that you.

We have seen a really strong quarter.

Hey come on what the full year number could be.

Just one party.

Irfan Razack: Which one? Sorry.

Venkat Narayana: Which one? Sorry.

Atul Tiwari: So, any comments or guidance on what could be the full year sales, FY 22 sales, in the light of this very strong quarter that you just had?

Any any comment on what could be the full you have been so important.

Atul Tiwari: So, any comments or guidance on what could be the full year sales, FY 22 sales, in the light of this very strong quarter that you just had?

In the lineup is very strong.

So we had at the beginning of the year.

Irfan Razack: So we had, at the beginning of the year, given a guidance of INR 6,000 crore for the year as a whole. As chairman was mentioning in the opening remarks, we should be able to comfortably cross and now look at between INR 7,000 to 8,000 crore of pre-sales.

Venkat Narayana: So we had, at the beginning of the year, given a guidance of INR 6,000 crore for the year as a whole. As chairman was mentioning in the opening remarks, we should be able to comfortably cross and now look at between INR 7,000 to 8,000 crore of pre-sales.

Given our guidance of 6000 gross.

Sure.

The 10 year was mentioning the opening remarks, we should be able to comfortably cross I'm now look like between.

7003, it doesn't close if we could.

Okay.

Atul Tiwari: Okay, sir. Thank you.

Yeah.

Thank you.

Operator: Thank you. The next question is from the line of Amandeep Singh from Ambit Capital. Please go ahead.

The next question is from the line of Aman <unk> from Ambit capital. Please go ahead.

Thanks for the opportunity.

Amandeep Singh: Thanks for the opportunity. So firstly, we note that this time in the investor presentation, Prestige, Cosmos, and Jijamata Nagar project have been clubbed. So any specific reason for that?

Supposed to be north of that this time and then they said maybe they send prestige costs more than you've done a ton of that project have been club O. So any specific reason for that.

Okay.

Irfan Razack: Sorry? Which slide are you referring to?

Venkat Narayana: Sorry? Which slide are you referring to?

Amandeep Singh: Yeah, so, in the presentation, when we look at the Mumbai projects, so the Prestige Cosmos project and Jijamata Nagar project have been clubbed. So anything specific over that?

Yeah. So in the presentation when we look at them on bipolar depression.

Amandeep Singh: Yeah, so, in the presentation, when we look at the Mumbai projects, so the Prestige Cosmos project and Jijamata Nagar project have been clubbed. So anything specific over that?

But it's just cosmos balloon forget and detail Montana that project had been clubbed, so anything specific about that.

Okay.

Irfan Razack: Just click that. I'm just seeing the slide. Which slide are you referring to?

Venkat Narayana: Just click that. I'm just seeing the slide. Which slide are you referring to?

You just seem to play.

Okay.

Great.

It was the prestige cosmetics, so standpoint, so they need me yesterday or day God forbid lithium.

Amandeep Singh: So the Prestige Cosmos shows 10.78 million sq ft, the entire developable area. This is slide number 14.

He decided in a Muslim beauty.

Yes.

Irfan Razack: Sure. Sure. Cosmos we show, Cosmos we shown separately.

Venkat Narayana: Sure. Sure. Cosmos we show, Cosmos we shown separately.

Yeah.

Okay.

That's most insurance insurance.

Yeah.

So I thought I'd just briefly Oh, so given the increased scale play there.

Amandeep Singh: Sorry, sir, I'll just, I'll just connect it separately. Sir, given the increased CapEx intensity, consequently debt, can you help us with expected timelines for your near completion projects across Mumbai and others for the annuity business?

Consequently, there can you help us with the expected timelines for it in the air completions, but it's really the cross banner, that's well beyond what their business.

Uh huh.

Irfan Razack: In terms of scope of renting-

Venkat Narayana: In terms of scope of renting-

So Florida, Florida.

Okay.

Hello.

Amandeep Singh: Hello? Yes, sir. Yeah.

Venkat Narayana: Hello?

Yeah, sorry, yeah.

Amandeep Singh: Yes, sir. Yeah.

Irfan Razack: 10.78.

Right.

Amandeep Singh: Mm.

Yeah.

Irfan Razack: Developable area. It is Jijamata.

Okay.

Yeah.

Amandeep Singh: You mentioned separately.

Venkat Narayana: You mentioned separately.

Irfan Razack: There's no Jijamata Nagar in this project, only Cosmos. Jijamata Nagar, that is...

[noise] [noise] Adobe whatever.

Amandeep Singh: Sorry, that's what I said. The total, whatever. So going back to your earlier question, what you have mentioned is only Cosmos, the total area? Yeah. That's right.

Venkat Narayana: Sorry, that's what I said. The total, whatever. So going back to your earlier question, what you have mentioned is only Cosmos, the total area?

Unfortunately, what do I mean, it can be lumpy cosmos.

Hopefully yes.

Amandeep Singh: Yeah. That's right.

That's right.

Irfan Razack: So, no, no, Jijamata is not there.

Venkat Narayana: So, no, no, Jijamata is not there.

Oh no no.

Got it.

Yeah.

But if I remember it took us more than 5 million square feet paired with 100 Bucks a mistake as opposed to the government.

Amandeep Singh: But, sir, if I remember, the Cosmos was 5 million sq ft with a 100% stake.

Irfan Razack: This is total developable area.

Venkat Narayana: This is total developable area.

Okay good enough.

Amandeep Singh: Okay.

Irfan Razack: This is including the parking and everything.

Venkat Narayana: This is including the parking and everything.

Okay. So okay got it. Thank you thanks a lot.

Amandeep Singh: ... Okay, sir. Okay, sir, got it. Got it. Thank you. Thanks for that.

Irfan Razack: So in terms of-

Venkat Narayana: So in terms of-

Oh it does.

Amandeep Singh: And the-

Yeah, Yeah that is.

Irfan Razack: The area that is ready for completion in the next 12 months time would be close to 2 million sq ft commercial area. Two to 2.5 million sq ft of area. Two projects in Bangalore, and two of them we just finished in Chennai, and most likely Pune. So this is what the outlook is for the completion by FY 2023. So this rental income will come and get added to the commercial portfolio.

Venkat Narayana: The area that is ready for completion in the next 12 months time would be close to 2 million sq ft commercial area. Two to 2.5 million sq ft of area. Two projects in Bangalore, and two of them we just finished in Chennai, and most likely Pune. So this is what the outlook is for the completion by FY 2023. So this rental income will come and get added to the commercial portfolio.

Ready for completion in the next.

The one month thing well be close to 2 million square foot commercially in here.

What have you been spoken about it yet.

Oh.

The two projects in Bangalore.

And then we get finished in Chennai.

Most likely puneet. This is what the open loop gift for the completion.

So you're going to see different.

Rental income will come in and good day.

Hmm.

Thank you Seth.

Amandeep Singh: Thank you, sir. Thank you, sir. And lastly, on your land bank, so, have you been also sorting a fresh land bank for expansion within the south markets across Hyderabad and Chennai? And also with update on the Goa land bank. This would be my last question, sir.

And lastly on your land bank, So Ah Hey, they've been also starting with nine banks, but it's fine tuning within the south monotherapy across high then about the kidney and also an update on that go along bank.

It wouldn't be my last question.

Irfan Razack: So, Goa land, we have some regulatory issues that we need to address to make that as a project. We are in the advanced stages. Hopefully, that should get cleared in next three to six months' time. And the entire land is one stretch of land, and that should become a project. And as far as Hyderabad is concerned, during the quarter, we participated in the auction of government, and we bid for a land that closer to Kokapet. The area is called Neopolis. We had launched in this calendar, from January to now, we launched Tranquil, and we are just about to get RERA for the Prestige Beverly Hills.

Hum.

Venkat Narayana: So, Goa land, we have some regulatory issues that we need to address to make that as a project. We are in the advanced stages. Hopefully, that should get cleared in next three to six months' time. And the entire land is one stretch of land, and that should become a project. And as far as Hyderabad is concerned, during the quarter, we participated in the auction of government, and we bid for a land that closer to Kokapet. The area is called Neopolis. We had launched in this calendar, from January to now, we launched Tranquil, and we are just about to get RERA for the Prestige Beverly Hills.

So.

We haven't.

Some regulatory issues.

We need to.

I agree to.

So it makes it a good bogey, we had not gone they just hopefully they could get it mixed mixed.

Because it's one thing and the entire language once they took nine attributable.

And that's what it's about is concerned during the quarter.

Oh do you participate in the auction for a gunman.

But atlantic quota to cooperate.

But you did put in your body.

We had lunch in.

Calendar from January to know.

Youre lunched tranquil land, we are just about to get a.

Okay that was quite a bit of a procedure they will agree.

Irfan Razack: Tranquil did extremely well, and we've got a lot of people already asking because we are closer to getting RERA for Beverly Hills. So given the fact that the new acquisition that we have done will also have a good response in Hyderabad, so that is 700 acres of land involved in the auction. These two are the Hyderabad and Goa-related land bank updates.

Venkat Narayana: Tranquil did extremely well, and we've got a lot of people already asking because we are closer to getting RERA for Beverly Hills. So given the fact that the new acquisition that we have done will also have a good response in Hyderabad, so that is 700 acres of land involved in the auction. These two are the Hyderabad and Goa-related land bank updates.

Franklin did extremely well.

And rewards.

A lot of people already asking because you are closer to getting the data out but given the fact that the new acquisition that we have been will also have a good response in our inhibitor, but so that it's I don't know if it goes up man.

And what in the auction.

Uh huh.

I did about the rollout of a good land.

Duncan.

Amandeep Singh: Sure, sir. Thank you.

Thank you.

Of course.

Irfan Razack: Of course, we are also pursuing several other lands in Hyderabad. What is completed and concluded is what I'm mentioning to you. So next quarter, we may have two, three more land parcels that we might have signed up.

Venkat Narayana: Of course, we are also pursuing several other lands in Hyderabad. What is completed and concluded is what I'm mentioning to you. So next quarter, we may have two, three more land parcels that we might have signed up.

And had been about a wash.

Completed and concrete is what I mentioned.

The next part of them and how it could be more of a landmark conducting that type of thing.

So I said that'd be helpful. Thank you and all that.

Amandeep Singh: Sure, sir. That's very helpful. Thank you, and all the best.

Thank you. Thank you.

Irfan Razack: Thank you.

Venkat Narayana: Thank you.

Operator: Thank you. The next question is from the line of Pritesh Sheth from Motilal Oswal. Please go ahead.

The next question is from the line.

From multilateral.

Go ahead.

Pritesh Sheth: Hello. Yeah, thanks for the opportunity. My first question is on the disclosures again. So if you can come to slide 15, which is cash flow from under planning projects, right? The estimated value has increased from INR 23,000 crore last quarter to INR 30,000 crore, roughly this quarter. And cost of development has increased from INR 10,000 to 20,000 crore. I mean, for a project with the revenue potential of INR 30,000 crore and cost of development INR 20,000 crore, I mean, it doesn't match up. So is there anything we should note here?

Yeah. Thanks Ali Unfortunately, my hoarse.

Last question is on the Lucerne again so.

I was just slightly.

Oh, 15, which is cash flow from under planning per se right.

If you went to the value has increased.

Oh from 23000 crores last quarter, it was put T cells into our fleet.

At least this quarter.

Cost of development has increased from 10000 to 20000, I mean caught up the a J.

Are there any potential effect.

And cost of development for in 2000 and through it all.

I mean, it doesn't match up so is there anything.

You should know that yet.

Oh, the last what did he will occur the developer Bulgaria was 39 million square foot. So we have.

Irfan Razack: No. So the last quarter, if you look at the developable area, it was 39 million sq ft. So we have, there are new projects that have come up to upcoming projects. So therefore, the area has gone up, corresponding revenue has also gone up, and cost also has gone up.

Venkat Narayana: No. So the last quarter, if you look at the developable area, it was 39 million sq ft. So we have, there are new projects that have come up to upcoming projects. So therefore, the area has gone up, corresponding revenue has also gone up, and cost also has gone up.

Are there new projects that have come up to or coming from you.

So therefore, it has gone up quite a funding revenue has also gone up on pulse on physical.

Oh that is fine, but I think proportionate living breathing Carson development is much much higher.

Pritesh Sheth: That is fine, but I think proportionally, the increase in cost of development is much, much higher. For the 70,000 increase, sorry, INR 7,000 crore increase in revenue potential, we are spending INR 10,000 crore additional for cost of development. So that's what the concern was.

Well, that's 20000 increase but seven doesn't corrode increasing revenue potential of your spending 10000 carotid yourself out of us forget it. So that's what we've done with them.

No some of that project.

Irfan Razack: No. Some of the projects, when we see, this is the upcoming project. So this is an estimate so that you will have the visibility, estimate that has been provided. When we close the design, and have a BOQs, of course, we'll come closer to precise estimated cost of construction, and that is what has been taken now. All projects. So we do this quarterly evaluation of the costs and the timelines, and so that we can give you a near realistic picture. So what you see now, overall, if you look at, is what it is, and there is enough margin in this.

Venkat Narayana: No. Some of the projects, when we see, this is the upcoming project. So this is an estimate so that you will have the visibility, estimate that has been provided. When we close the design, and have a BOQs, of course, we'll come closer to precise estimated cost of construction, and that is what has been taken now. All projects. So we do this quarterly evaluation of the costs and the timelines, and so that we can give you a near realistic picture. So what you see now, overall, if you look at, is what it is, and there is enough margin in this.

This is the upcoming project. So this is I guess you can wait for that you will have that visibility.

It's the work that had been provided wouldnt be close the design.

And Oh, how it'll be what you of course will come closer to.

The construction I'm going to do.

They can oh.

What are the lead vendor smell, the Pos and the like and.

So that we can video near realistic picture.

What do you see now all you can look like.

They didn't have enough for.

My opinion.

Okay. Okay.

Pritesh Sheth: Okay. Okay, got it. And lastly, on the BKC project, I think last quarter it was mentioned the area, I mean, BKC 101, 102 project, the area potential was more than 3 million sq ft. This quarter, we are reporting 2 million sq ft. So has that changed something from the development potential plans or what is it?

And.

Lastly on the because people that went last quarter. It was mentioned the area I mean, because he wasn't willing to predict the potential.

Potential was more than 2 million square feet. This quarter, we are reporting 2 million square feet.

So has that changed some things already been potential plans.

Irfan Razack: Let me get there.

Venkat Narayana: Let me get there.

Me too.

Yeah.

You can come to slide <unk>.

Pritesh Sheth: You can come to slide-

Irfan Razack: 2.16 million square feet of area each.

One 6 million square foot area.

Venkat Narayana: 2.16 million square feet of area each.

Like last quarter it was.

Pritesh Sheth: Right. Last quarter, it was different.

Different.

No. This is now what we have locked in for that because they're afraid of opinion.

Irfan Razack: No, this is not what we have locked in for the approval. We have paid the premium.

Venkat Narayana: No, this is not what we have locked in for the approval. We have paid the premium.

Pritesh Sheth: Okay. Okay.

Okay. Okay.

Yeah, we got the approval.

Irfan Razack: Yeah, we got the approval.

Venkat Narayana: Yeah, we got the approval.

Pritesh Sheth: Sure, got it. Got it. Fine. Thank you. That's it from my side, and all the best.

Sure bucket.

Great. Thank you that's it from my side.

Thank you.

Operator: Thank you. The next question is from the line of Viplab Dey Verma from Antix Stock Broking. Please go ahead.

Next question is from the line.

From antique stock Broking. Please go ahead.

Biplab Dey Verma: Good afternoon, everyone. My first question is on the photo that I saw on your presentation. It mentions Prestige Ocean Towers on Marine Lines. So it is not mentioned in your list of upcoming or ongoing projects. And, Ken, could you give some insight on what is this about Prestige Ocean Towers? Have you acquired this project or is discussion going on?

Good afternoon, everyone.

Biplab Debbarma: Good afternoon, everyone. My first question is on the photo that I saw on your presentation. It mentions Prestige Ocean Towers on Marine Lines. So it is not mentioned in your list of upcoming or ongoing projects. And, Ken, could you give some insight on what is this about Prestige Ocean Towers? Have you acquired this project or is discussion going on?

My first question is on the photo that I saw in your presentation you had mentioned.

The Austin powers them get in line.

So it does not mention you missed the upcoming or ongoing project and Oh, Canada could you give.

To give some insight on what is what is this I bought the stimulus shouldn't towers have yeah quite this project already discussion is going on.

Irfan Razack: So Prestige Ocean Towers is situated at Marine Lines. In terms of a transaction, we have concluded the commercials and signed some documentation. Since that has happened during this quarter, you don't see it being in the updated list. It will come in the next quarter. That's when we close the December quarter. It will be in upcoming projects. Since we had done designs, the perspective was there. Most are here from Mumbai. We thought we'll tell you. So we said we'll put-

Venkat Narayana: So Prestige Ocean Towers is situated at Marine Lines. In terms of a transaction, we have concluded the commercials and signed some documentation. Since that has happened during this quarter, you don't see it being in the updated list. It will come in the next quarter. That's when we close the December quarter. It will be in upcoming projects. Since we had done designs, the perspective was there. Most are here from Mumbai. We thought we'll tell you. So we said we'll put-

Okay.

The other thing to treat it in terms of our transaction.

Oh, you have concluded the commercials and Oh.

Documentation.

That has happened during this quarter.

You don't see it being adopted in the coming in the next one that when we go on to become the U P mean, our upcoming projects.

Since we had done the bus but it was the most likely hasn't been biting we talked with you.

[laughter] the reserve reporting.

Biplab Dey Verma: I also asked the question.

Biplab Debbarma: I also asked the question.

It really wasn't about fragrances that you ought to read that that's going to be the Knicks Knicks lunch a sense do you have told us candidly with them like what his baby Oh Wow. It doesn't J D O E M Claude something they'll do that.

Irfan Razack: We'll put the perspective so that you are aware that that's going to be the next, next launch.

Venkat Narayana: We'll put the perspective so that you are aware that that's going to be the next, next launch.

Biplab Dey Verma: Since you have told us, can you give us some, like, what is the area, what it is a JDA or you acquired, some kind of redevelopment or?

Biplab Debbarma: Since you have told us, can you give us some, like, what is the area, what it is a JDA or you acquired, some kind of redevelopment or?

Irfan Razack: It's going to be a JV, close to 500,000 sq ft of saleable area. This is the broad details, and you would know the selling price in that area, okay.

Venkat Narayana: It's going to be a JV, close to 500,000 sq ft of saleable area. This is the broad details, and you would know the selling price in that area, okay.

It's going to be a JV are close to half a million square foot boat sustainable Lydia.

Because the broadly there then you would know that the link there doesn't appear yet oh.

Okay, very good very good and Oh.

Biplab Dey Verma: Okay, very good. Very good, sir. And what the second question is, you know, we have, so you have already 5, 6 projects in Mumbai, commercial, BKC 1, 2, then you have Mahalakshmi and other residential projects. So many projects. And we know that Mumbai is a very lucrative market. At the same time, it is a very difficult market. So just trying to understand it, business development is an important part. Second part is execution and selling. So in your mind, how I mean, when you entered Mumbai, you have a well-planned strategy. You know real estate more than, cumulatively more than all of us. So what is the question is, what is your strategy?

Biplab Debbarma: Okay, very good. Very good, sir. And what the second question is, you know, we have, so you have already 5, 6 projects in Mumbai, commercial, BKC 1, 2, then you have Mahalakshmi and other residential projects. So many projects. And we know that Mumbai is a very lucrative market. At the same time, it is a very difficult market. So just trying to understand it, business development is an important part. Second part is execution and selling. So in your mind, how I mean, when you entered Mumbai, you have a well-planned strategy. You know real estate more than, cumulatively more than all of us. So what is the question is, what is your strategy?

My second question is that you know we have so you have already five six projects in Mumbai commercial Oh kept because he wanted to then you have mnemonics non election year and other residential projects. So so many projects and you know that when somebody says hey look they take market at the same time.

I mean, it doesn't have any difficult market. So just trying to understand our business.

An important part.

Second part is [laughter] exhibit Kansas City, So a new mine, how I mean, I'm in lending and telling them why you have that well time strategic realistic Morgan accumulated the Morgan.

So what is the question is what is your strategy is there anything specific that you're thinking this is the gap and this is where I'm going into it Oh. This is my advantageous because this is what I have and many of them are the developers don't have so what is your strategy, how would you ever going to concur a Spanish.

Biplab Dey Verma: Is there anything specific that you see, "Boss, this is the gap, and this is where I'm going into it," or, "This is my advantage, this is, this is what I have, and, the, these developers don't have." So what is your strategy? How you are going to conquer, you know, spread your footprints in Mumbai? So I'm just trying to understand what is your game plan here in Mumbai? It's really commendable, the way you are acquiring projects.

Biplab Debbarma: Is there anything specific that you see, "Boss, this is the gap, and this is where I'm going into it," or, "This is my advantage, this is, this is what I have, and, the, these developers don't have." So what is your strategy? How you are going to conquer, you know, spread your footprints in Mumbai? So I'm just trying to understand what is your game plan here in Mumbai? It's really commendable, the way you are acquiring projects.

Footprint St. Mumbai, So I'm, just trying to understand what Israel against plan he had in Mumbai.

It's really comment about the value added coating projects.

Irfan Razack: Yes, yes, I understand. I think it's a, it's a broad strategy-driven question. If you look at Mumbai as a market, it's a conscious decision from the management and the promoters to enter that segment and enter to stay there, stabilize, and offer to what is required to the Mumbai commercial and residential market. So therefore, it's not, it's not just about doing one project for the sake of doing it. So we have, as you rightly mentioned, three commercial projects, BKC number one project, phase one, phase two of BKC, and we have Prestige Liberty Towers at Mahalakshmi. These are the three commercial projects. And we have four residential projects. One is Prestige Jasdan Classic. Other is Prestige Daffodils, which will get launched soon. That's at Pali Hill. And we have Prestige Cosmos at Mulund.

Venkat Narayana: Yes, yes, I understand. I think it's a, it's a broad strategy-driven question. If you look at Mumbai as a market, it's a conscious decision from the management and the promoters to enter that segment and enter to stay there, stabilize, and offer to what is required to the Mumbai commercial and residential market. So therefore, it's not, it's not just about doing one project for the sake of doing it. So we have, as you rightly mentioned, three commercial projects, BKC number one project, phase one, phase two of BKC, and we have Prestige Liberty Towers at Mahalakshmi. These are the three commercial projects. And we have four residential projects. One is Prestige Jasdan Classic. Other is Prestige Daffodils, which will get launched soon. That's at Pali Hill. And we have Prestige Cosmos at Mulund.

I understand I think you can say, it's a broad patent do different question. If you look at the numbers in.

In my opinion very conscious decision from the management can be promoted through into that segment and in bad Google stadia.

And also what is required.

The commercial insurance market.

It's not it's not just about been one guy did.

For the sake of doing so.

As you rightly mentioned pre commercial projects, we can see no one oh pardon me.

Cleveland Pittsburgh, because he and we haven't excuse me, but if I look at my election would be subject to become pretty complex projects.

And we hope for an eventual target.

One is just some classic Uh huh.

We couldn't get loans to that sector.

And we haven't pursued cosmos.

Irfan Razack: And just now, you have asked earlier, the next project is going to be Ocean Towers. Prestige Ocean Towers at Marine Lines. These are the four residential. Now, in terms of execution and volume of work, as I mentioned in the opening remark, considering the kind of scale that we do in Bangalore, we have projects which are 10 million sq ft, 6 million sq ft, spanning 3,000 apartments, 2,500 apartments, which we have delivered in 36 to 42 months time. Yeah. So the volume of work that we are doing, compared to anywhere else, is in fact lesser. So we are well equipped.

Venkat Narayana: And just now, you have asked earlier, the next project is going to be Ocean Towers. Prestige Ocean Towers at Marine Lines. These are the four residential. Now, in terms of execution and volume of work, as I mentioned in the opening remark, considering the kind of scale that we do in Bangalore, we have projects which are 10 million sq ft, 6 million sq ft, spanning 3,000 apartments, 2,500 apartments, which we have delivered in 36 to 42 months time. Yeah. So the volume of work that we are doing, compared to anywhere else, is in fact lesser. So we are well equipped.

I'm just telling you that's the.

The next project is going to be or shouldn't that what the people converted money like specific orders in insurance.

Now in terms of execution and the volume of work so as I've mentioned in his opening remarks.

During the kind of gain but who do in Bangalore.

We have project CAD 10 million square foot 6 million square foot spanning 3000 of Boston torn out doesn't department, which will deliver an even better six months before the two months' time, yeah. So the volume of what we are doing compared to what you do with it.

Exactly so we had a good mixture work being and you got the processes in place, which will put us in the expanded 200 about the gen eight.

Irfan Razack: We've got team, and we've got the processes in place, which have worked for us when we expanded to Hyderabad, to Chennai, Kochi, and other regions, when we moved from Bangalore. And the value system, the culture, the process are already in place. It's about getting people. So we have good people on board, and we are trying two things in Mumbai as a strategy in terms of execution. One, in 30 years of our existence, we completed 255 projects and delivered close to 140+ million sq ft. And we are right now, as we speak, we are constructing another 50 million sq ft. So, the bandwidth is there, scale is there. In addition to that, we are also taking external project management guides. So we gave one project to CBRE, other project to JLL.

Venkat Narayana: We've got team, and we've got the processes in place, which have worked for us when we expanded to Hyderabad, to Chennai, Kochi, and other regions, when we moved from Bangalore. And the value system, the culture, the process are already in place. It's about getting people. So we have good people on board, and we are trying two things in Mumbai as a strategy in terms of execution. One, in 30 years of our existence, we completed 255 projects and delivered close to 140+ million sq ft. And we are right now, as we speak, we are constructing another 50 million sq ft. So, the bandwidth is there, scale is there. In addition to that, we are also taking external project management guides. So we gave one project to CBRE, other project to JLL.

Of course, you know the region a win win or a neutral Mangalore.

The value system the culture the processes already in place it's about getting people. So we have good people on board and we are trying to do things you started even though you shouldn't one.

In fact it yourself.

It has been completed with the great projects and delivered close to 1 million square foot and we are right now as we speak.

Constructing opinions, but brooksville.

The bandwidth is the standard there.

You shouldn't do that but we're also taking a smelter project management.

So we are getting one brendan to see be it either to jillian.

Irfan Razack: So, we realize that we are a new entrant there. We need to understand the market. We need to deliver, we need to build a track record specifically for that market. So we have accordingly devised a strategy both for residential and commercial, and we have good people on board. Of course, we keep adding new people to that as and when the new projects get launched. So right now, everything is in place to do what is required to be done to make our Mumbai entry successful.

Venkat Narayana: So, we realize that we are a new entrant there. We need to understand the market. We need to deliver, we need to build a track record specifically for that market. So we have accordingly devised a strategy both for residential and commercial, and we have good people on board. Of course, we keep adding new people to that as and when the new projects get launched. So right now, everything is in place to do what is required to be done to make our Mumbai entry successful.

So the we realize that a new.

The one thing that we need to understand the market you could barely walk we need to build the track record specifically for that market. So we have accordingly do wages how did you.

Both of US at Insurance Commission and yeah.

Good people on board of course, we keep adding people to that and then when the new budgets get lunch so right.

Everything is in place to do what is required to be done to make guys in Mumbai and Delhi.

That's it.

Oh, just a one question related to that so basically are surely you won't you would have a local partner in all of these projects right. I mean, most of these projects. So just trying to understand is.

Biplab Dey Verma: Just one question related to that. So basically, surely you would have local partners in all these projects, right? I mean, most of these projects.

Biplab Debbarma: Just one question related to that. So basically, surely you would have local partners in all these projects, right? I mean, most of these projects.

Irfan Razack: Oh-

Biplab Dey Verma: Just trying to understand, are these local partners different for different projects, or if they're limited to one, two local partners who are basically helping in getting this stage, I mean, in terms of-

Biplab Debbarma: Just trying to understand, are these local partners different for different projects, or if they're limited to one, two local partners who are basically helping in getting this stage, I mean, in terms of-

Are these local partners different public transport that Saudi.

The one two local partners, who are basically helping and are getting to see I mean, it's always different people put a different project.

Irfan Razack: No, so it's different people for different projects. The Jasdan Classic is done from acquired from different people, which is a new consolidated construction company, different partner. Pali Hill is a redevelopment project, and Cosmos is taken from MCLP. So it's different for different projects.

Venkat Narayana: No, so it's different people for different projects. The Jasdan Classic is done from acquired from different people, which is a new consolidated construction company, different partner. Pali Hill is a redevelopment project, and Cosmos is taken from MCLP. So it's different for different projects.

The.

Classic is done from our acquired from different people in each of the new consolidators infection independent partner, particularly the Redevelopments.

Great.

And the costs won't be taken from the U N T L b.

It's different for different products.

Okay. Okay. Thank you Sir.

Biplab Dey Verma: Okay. Okay. Thank you, sir. Thank you, sir.

Biplab Debbarma: Okay. Okay. Thank you, sir. Thank you, sir.

Thank you.

Irfan Razack: Thank you.

Venkat Narayana: Thank you.

Thank you.

Operator: ... The next question is from the line of Kunal Lakhan from CLSA. Please go ahead.

The next question is from the line of Kona looking from CLSA. Please go ahead.

Yeah, Hi, good evening.

Kunal Lakhan: Yeah, hi, good evening. Just, can you give us a breakup of the, the spend, the INR 1,000 crore spend that you have done on land acquisition before, which you speak by that broad breakup in terms of the investment?

Just can you give us a breakup.

This thing, but the problem of course to end up being done.

Shouldn't the poverty.

Break up in terms of.

Irfan Razack: The spend? Okay, so around INR 450 crore has gone towards various projects, in Mumbai and Bangalore. Also to acquire one logistics park land from the logistics park. So, just to give you some projects, where names, so whatever we have to include with respect to BKC 1 and 2, and this is Liberty Towers. And here in Bangalore, we have an upcoming project at Hebbal. You see the prospect in the presentation also. We have this is Century Landmark, this is Century Megacity, and some on account of this is Tech Park 4. So these, these are the payments that have gone. There are no new projects yet. The projects where we had signed and paid part amount, what are the balance that need to be paid?

Venkat Narayana: The spend? Okay, so around INR 450 crore has gone towards various projects, in Mumbai and Bangalore. Also to acquire one logistics park land from the logistics park. So, just to give you some projects, where names, so whatever we have to include with respect to BKC 1 and 2, and this is Liberty Towers. And here in Bangalore, we have an upcoming project at Hebbal. You see the prospect in the presentation also. We have this is Century Landmark, this is Century Megacity, and some on account of this is Tech Park 4. So these, these are the payments that have gone. There are no new projects yet. The projects where we had signed and paid part amount, what are the balance that need to be paid?

Okay.

Hum.

Okay, So what I'm, calling them to pick out has gone towards various projects.

In Mumbai.

And Bangalore.

Also to acquire one logistics Oh.

Langton logistic park.

So just to give you some projects very names so what would be a greenfield.

We get one month, two and preceded me worked it out.

And so here in Bangalore.

Upcoming Burlington had one you'll see that those have been the limitation on flu.

But they seem to be landmark Oh, this is going to be Mega city and some of them are conducted.

But for this.

Other payment that they've done.

No new projects, yet the projects where.

We explained in great part I'm wondering what are the barriers that need to be big.

Irfan Razack: So that's INR 450 crores. And, as far as the residential goes, again, with respect to some payment that we needed to make, on projects that we are already tied up, and balance payments were committed. And a small portion of it in the retail bit, which is around INR 15 crores. So residential, land, deposits and stake purchase is around again, INR 482 crores. Retail is around INR 15 crores. That's what makes it equal to our INR 1,000 crores.

Venkat Narayana: So that's INR 450 crores. And, as far as the residential goes, again, with respect to some payment that we needed to make, on projects that we are already tied up, and balance payments were committed. And a small portion of it in the retail bit, which is around INR 15 crores. So residential, land, deposits and stake purchase is around again, INR 482 crores. Retail is around INR 15 crores. That's what makes it equal to our INR 1,000 crores.

And.

Both again.

Some payment that we needed to make.

On a project that will allow them to retain them.

Unbalance agreements will come with it.

Small portion of them that he didn't.

What you learn preclinical, but it's been shown.

And then because you can pick back he is he's out on the gaming 400, I mean, if you go out.

It really is around the footprint, that's what makes it easier for them.

Sure sure.

Kunal Lakhan: Sure. Sure. The reason I was asking was that, Venkat, if you look at our collection, our share, versus, what we have spent on CapEx, it's almost like, you know, offsetting each other. And then there are overheads, and then there is this land acquisition, spend towards land acquisition. So how should we look at this land acquisition number going ahead? And-

I was asking was that our linker they seem to get out of conviction.

What are what do you spend on Capex, it's almost like.

Offsetting each other and then I wanted and then but it was flowing back.

But it shouldn't have been doing some acquisition. So how should we look at this land acquisition number going ahead.

No.

Irfan Razack: So now, if you see the presentation, we have in office almost 25 million sq ft of upcoming projects. Okay? So, and in terms of residential, we have around 50 million sq ft of projects under various stages of planning. So this is a good pipeline, and we don't have any new transactions which are which require sizable capital right now that we are pursuing. Maybe over a period of 6 to 8 months, there could be outflows to the extent of INR 500 to 600 crores. Till this upcoming projects get launched in terms of residential and office, I don't think there will be significant capital outlay towards fresh land acquisition or buyback. So I'm not saying it will not be there at all.

Venkat Narayana: So now, if you see the presentation, we have in office almost 25 million sq ft of upcoming projects. Okay? So, and in terms of residential, we have around 50 million sq ft of projects under various stages of planning. So this is a good pipeline, and we don't have any new transactions which are which require sizable capital right now that we are pursuing. Maybe over a period of 6 to 8 months, there could be outflows to the extent of INR 500 to 600 crores. Till this upcoming projects get launched in terms of residential and office, I don't think there will be significant capital outlay towards fresh land acquisition or buyback. So I'm not saying it will not be there at all.

Uh huh.

Fishing.

We have you know he's almost two 5 million square foot of upcoming projects.

So and in terms of Oh this is insurance.

We have around 50 million supposed to support it.

It used to be just helpful.

No.

Got it.

This is a good pipeline.

Won't have any.

New transactions, which had a.

Capital Raison d'etre epilepsy, maybe worry petered out.

Oh six months to eight months or it could be close to the extent, though like it when you get 600 of course.

Building.

Upcoming projects get launched and done so for insurance.

Well I don't think there'll be significant capital towards.

Fish language can stick by that well I'm not thinking it might be the next six months, if we look at.

Irfan Razack: Next six months, if you look at a lot of under planning projects, they will become projects that will get launched. And now, in the opening remarks, when we're discussing, somebody asked for the guidance in the new sales. This is that could move from initial guidance that we have given at INR 6,000 crore to INR 7,000 to 8,000 crore. That will also be backed by the cash collections when we run the project. So 1,500 crore of collections can also move to 2,000 to 2,500 crore of collections. Hello?

Venkat Narayana: Next six months, if you look at a lot of under planning projects, they will become projects that will get launched. And now, in the opening remarks, when we're discussing, somebody asked for the guidance in the new sales. This is that could move from initial guidance that we have given at INR 6,000 crore to INR 7,000 to 8,000 crore. That will also be backed by the cash collections when we run the project. So 1,500 crore of collections can also move to 2,000 to 2,500 crore of collections. Hello?

A lot of underpinning projects will become a project gets lunch and now in the in the opening remarks discussing our somebody else sort of baked into the nucleus.

That could move told me he can get into big even if it doesn't close to 70. It doesn't close there's lots of them back by the cash collections and run the project without any partner Pelican. So can also model.

Two dogs.

Prediction.

Hello, if it seems like we lost the connection for the current participant.

Operator: Seems like we lost the connection for the current participant.

Irfan Razack: Okay.

Venkat Narayana: Okay.

The next question is from the lineup.

Operator: The next question is from the line of Rajesh Ranganathan from Doric Capital. Please go ahead.

Oh Gee shrunk from Dougherty please.

Please go ahead.

[noise] right.

Kunal Lakhan: Rajesh Ranganathan-

Operator: Rajesh Ranganathan-

Rajesh Ranganathan: Can you hear me?

Yes.

Operator: Yes, sir, we can hear you.

Rajesh Ranganathan: Can you hear me?

Jeremy.

Irfan Razack: Yes, we can, Rajesh.

Venkat Narayana: Yes, we can, Rajesh.

Yes, we can.

Rajesh Ranganathan: Hi, yes, I'm sorry if I've asked this question and you've already replied earlier, because I was a bit late joining the call. For the Blackstone phase two deal, is there an update?

Yeah, Yeah, I'm sorry five.

Section and you apply Atlas.

That was a bit late joining the call put the Blackstone piece to do you is it an update.

On what.

Irfan Razack: On what?

Venkat Narayana: On what?

Blackstone piece too.

Rajesh Ranganathan: Blackstone, phase two.

Irfan Razack: Yeah. So I did give you an update saying that, of the assets that we need to sign off on the phase two, except for one, we have closed the documentation, just that we have taken a call, instead of putting that asset as next phase three, that we will sign all of them at one go and finish off. So, we should be able to conclude and receive the money, during this quarter. That will be fully done transaction in, in phase two. Except for one asset, we are almost there in terms of even documentation sign off.

Venkat Narayana: Yeah. So I did give you an update saying that, of the assets that we need to sign off on the phase two, except for one, we have closed the documentation, just that we have taken a call, instead of putting that asset as next phase three, that we will sign all of them at one go and finish off. So, we should be able to conclude and receive the money, during this quarter. That will be fully done transaction in, in phase two. Except for one asset, we are almost there in terms of even documentation sign off.

Yeah. So I think if you've ever been a big thing there of the tests that you need to sign off on the phase two.

Except for one.

We will close the documentation that we have.

They can they call it ended up putting that out there for the next phase three that we will sign all of them and what I'm going to Michelle.

We shouldn't be able to conclude and receive the money.

It didn't meet its water that can be fully then transaction in our history.

Uh huh.

Except for one I think we are almost there in terms of even documentation Plano.

And he's he's involved.

Rajesh Ranganathan: Any reason why, for the delays beyond what your expectation was, even during the previous call?

For the delays beyond what your expectation was and during the previous call.

Irfan Razack: Nothing. See, if you look at April, May, June, pretty much went into... March, we closed the transaction. Three months after that, there was a lockdown completely, and the Bangalore especially was badly hit. And a lot of key people, be it in the legal firms or from the investor side or in our organization, including myself, we were all hit with COVID, and there's something else to take care of from organization point of view, myself, Jas, and management focus was to safeguard employees, vaccinations, and it was quite bad. So after that, yes, we had some conditions subsequent from phase one of the transaction, and then we started working on this. Maybe I think a month more is taken than otherwise what we anticipated.

Venkat Narayana: Nothing. See, if you look at April, May, June, pretty much went into... March, we closed the transaction. Three months after that, there was a lockdown completely, and the Bangalore especially was badly hit. And a lot of key people, be it in the legal firms or from the investor side or in our organization, including myself, we were all hit with COVID, and there's something else to take care of from organization point of view, myself, Jas, and management focus was to safeguard employees, vaccinations, and it was quite bad. So after that, yes, we had some conditions subsequent from phase one of the transaction, and then we started working on this. Maybe I think a month more is taken than otherwise what we anticipated.

So you can see as we look at the April may doing pretty much Quintin democracy closer transaction three months after the lockdown completely under.

The band landlord, especially was a magic leap.

And a lot of keep people you've beaten the legal for them. So that's on the Investor fact, I didn't know that the mutation.

Including myself.

Uh huh.

Hey, Colby.

We then there's something else you picked it up from organization burned up in Minnesota.

And our management focus was to safeguard employees vaccination.

It was quite bad so I'll put that yes, we had some condition subsequent from phase one of the transaction.

We started the last Monday.

Maybe I think among promoting if they can than what we anticipated.

Rajesh Ranganathan: ... Okay. And have you launched a project in, hello?

Yeah.

Okay.

Oh boy.

Jackson.

Hello.

Yes, I can hear you.

Irfan Razack: Yes, Danish, I can hear you.

Venkat Narayana: Yes, Danish, I can hear you.

So you launched one project in Mumbai already is that right and could you give us an update on Oh at the sales for that and also the status of these data and launch date for the other lines.

Rajesh Ranganathan: So you launched one project in Mumbai already, is that right? And could you give us an update on the sales for that, and also the status of the RERA and launch date for the other one?

Irfan Razack: No, this question was asked before, and Chairman answered, saying that we have launched a exemplary, and we're getting good inquiries, and the response has been good. Of course, numbers by end of the quarter, as the quarterly update will give you each projects like we do for other projects. Remaining two, that is, Pali Hill and Prestige Cosmos, will get launched, one of them will be in this quarter and the other one will be in the next quarter.

Venkat Narayana: No, this question was asked before, and Chairman answered, saying that we have launched a exemplary, and we're getting good inquiries, and the response has been good. Of course, numbers by end of the quarter, as the quarterly update will give you each projects like we do for other projects. Remaining two, that is, Pali Hill and Prestige Cosmos, will get launched, one of them will be in this quarter and the other one will be in the next quarter.

This question was asked before and Oh, and I'm, sorry, I meant on something that we have launches and plotted kind of bidding.

Good inquiries and responsibly.

Good.

And of course number two by the end of the quarter quarterly objectives.

Oh each projects like we do for other funding our remaining two that is our policy and cause the Geo Cosmos.

Will get launched.

One of them really being used for that and the other one maybe in the next one.

Yeah.

Rajesh Ranganathan: The RERA approval is the only one pending, or is there anything else pending?

And did it I absolutely don't leave my spending what it is that anything that spending.

Rajesh Ranganathan: The RERA approval is the only one pending, or is there anything else pending?

Irfan Razack: In Pali Hill, we have to take the possession of the site; it's a redevelopment project, and they have to vacate and give us the site. So we thought it would be good to have a clean, neat site, which the deadline for that will be in 31 November. Otherwise, approval is in place; we'll be launching in for it.

Venkat Narayana: In Pali Hill, we have to take the possession of the site; it's a redevelopment project, and they have to vacate and give us the site. So we thought it would be good to have a clean, neat site, which the deadline for that will be in 31 November. Otherwise, approval is in place; we'll be launching in for it.

Oh, we have to pick the partition of the things that he development project and therefore, they didn't give us the site. So we thought it would be good.

Can you say, we can show that the length of that could be happier.

That's always a broker events will belong inside it.

Yeah.

Right. Thank you so much and wish you best of luck.

Rajesh Ranganathan: All right. Thank you so much, and wish you the best of luck.

Irfan Razack: Thank you.

Thank you.

Operator: Thank you. The next question is from the line of Rakesh Riyas from HDFC Mutual Fund. Please go ahead.

Thank you. The next question is from the line of practice.

From a D C Mutual fund. Please go ahead.

Rakesh Vyas: Yeah, hi, good afternoon, Mr. Razack and Venkat. Two questions from my side. First one is on the commercials, the rental business that we are pursuing. Given the intensity of CapEx that we are doing now, can you just indicate as to how should we look at CapEx over the next two, three years on this particular portfolio? And the kind of rental trend that we can see from FY 2024 onwards.

Yeah, Hi, good afternoon, Mr. Zack and Qatar two question from my side first plenty of them become I shouldn't.

There's not a stick together pursuing.

Given the deep bench of gift that we are doing now can you just indicate how should we look at.

Capex over the next two three years on this particular portfolio and a and b kind of what that is.

We can see from my cycling before on works.

[noise], Oh, well I mean, if you look around the construction and remember.

Irfan Razack: So overall, I mean, if you look at under construction and under the, under the upcoming, we have given rental estimate that this whatever we have given is 4 to 5 years from now, we should be able to cross INR 2,500 crores of rentals easily. We don't need to add any new projects, we just have to finish up ongoing and upcoming projects. Now, specifically, if you are asking about next 1 up to 2 years, what is the spend that we may have in this project? Which will be around INR 2,000 crores our share.

Venkat Narayana: So overall, I mean, if you look at under construction and under the, under the upcoming, we have given rental estimate that this whatever we have given is 4 to 5 years from now, we should be able to cross INR 2,500 crores of rentals easily. We don't need to add any new projects, we just have to finish up ongoing and upcoming projects. Now, specifically, if you are asking about next 1 up to 2 years, what is the spend that we may have in this project? Which will be around INR 2,000 crores our share.

Yeah.

Upcoming.

Given the current.

So it's to me that's what it would be given it is a.

Four to five years from now you should be able to cross controls and partner school so easily.

We don't need to add any new project.

So I'm going to Oh.

Upcoming.

I was specifically asking about mixed Oh Wow what.

What is the spring, but you'd Manhattan.

In this project.

So would you be around the urban course akshay.

Our 2000 crore teach you harsha.

Rakesh Vyas: INR 2,000 crore each year, our share?

Irfan Razack: INR 4,000 crore each, our share.

Venkat Narayana: INR 4,000 crore each, our share.

Or southern cooking.

Sure.

Rakesh Vyas: 1,000 crore, you are saying?

Housing could or do you are saying.

Yeah P J.

Irfan Razack: Yes, each year, our share.

Venkat Narayana: Yes, each year, our share.

Rakesh Vyas: Yeah. Yes. Okay. And, and by FY 24, or let's say FY 23 exit or FY 24 exit, our rental income estimated from these projects would be how much?

Yes, okay.

And by a fight.

Oh, let's say FY 'twenty three.

Because he thought if I click before you got it.

Income that can make it.

From these projects would be how much.

Irfan Razack: I'll have to specifically give you, sequencing and tell you. Let me do the computation and share it with you.

Venkat Narayana: I'll have to specifically give you, sequencing and tell you. Let me do the computation and share it with you.

Specifically give you a sequencing and <unk>.

Let me do the computation shared with you and my second question is I don't do this business now that we are seeing reasonably good traction in this space and you have started picking up some of the projects, which have been stuck for some time for various reasons.

Rakesh Vyas: No issues. And my second question is around the residential business. Now that we are seeing, you know, reasonably good traction in this space, and you have started taking up some of the projects which have been stuck for some time for various reasons. What is the kind of opportunity that you see there? And what are the geographies that you are trying to enter into or look at? Any color around that will help, because... And also, if you can, you know, just for my clarity, try and highlight what is the kind of CapEx intensity or the upfront payment difference between some of these kind of projects versus JVJD?

What is the kind of opportunity that you see there.

And what other geography.

Thanks to the.

Okay any color on that because and honestly. If we then just for my clarity Brian highlight what is the kind of kept fixing density or the upfront payment or deferral.

Hence between some of these kind of projects versus JV duty.

Yeah.

So there are a lot of opportunities that come and go.

Irfan Razack: So there are a lot of opportunities that come every day. So given the fact that we are executing, we are operating at this scale, the only way you can build trust in this industry is by, by delivering on the commitments and handing over to the customers on time. That's how this organization has been built. But we also need to be disciplined. We can't do everything. We can only do that much. And even if you want to churn and go up to the scale, which we have given you guidance, from being three and a four thousand crores of pre-sales to, by FY 2024, we want to be at ten thousand crores of pre-sales, and that's the game plan strategy that we have. And not only reaching to ten thousand crores of pre-sales, now to sustaining those sales.

Venkat Narayana: So there are a lot of opportunities that come every day. So given the fact that we are executing, we are operating at this scale, the only way you can build trust in this industry is by, by delivering on the commitments and handing over to the customers on time. That's how this organization has been built. But we also need to be disciplined. We can't do everything. We can only do that much. And even if you want to churn and go up to the scale, which we have given you guidance, from being three and a four thousand crores of pre-sales to, by FY 2024, we want to be at ten thousand crores of pre-sales, and that's the game plan strategy that we have. And not only reaching to ten thousand crores of pre-sales, now to sustaining those sales.

So given the fact that you're keeping that operating at this scale.

You can do that's been used in the previous body by delivering on the commitments are independent goes to the question one on time, but so its organization.

But we also need to be disciplined because I'm doing everything you can only do that much.

If you wanted to churn in golf for the scale, which we have given you guidance from being so you end up both of them go someplace else too.

By FY 'twenty four.

We had 10000 courses and that's the game plan and the strategy that we have I'm not going to be reaching out to them goes up.

Please go to whatever is required in terms of new offerings that you need to do.

Irfan Razack: Now, whatever is required in terms of new offerings that we need to do to reach there and sustain, we do have right now in the pipeline. So there are some transactions that come which are very attractive, which has got high returns, high yields, and we think, they will do, you know, good, value addition to our existing portfolio. That is what we want to, pursue. Just now, if you ask us, our top priority for next four, five months is to launch some of our under planning projects that presents in the two new geographies, that is NCR and Mumbai. So, after that, maybe we will look at once we get launched, based on the response that we have for this project, and, to, add few more to our project.

Venkat Narayana: Now, whatever is required in terms of new offerings that we need to do to reach there and sustain, we do have right now in the pipeline. So there are some transactions that come which are very attractive, which has got high returns, high yields, and we think, they will do, you know, good, value addition to our existing portfolio. That is what we want to, pursue. Just now, if you ask us, our top priority for next four, five months is to launch some of our under planning projects that presents in the two new geographies, that is NCR and Mumbai. So, after that, maybe we will look at once we get launched, based on the response that we have for this project, and, to, add few more to our project.

They didn't go thing Oh.

We do have I sum it up by saying.

There are some transactions that come together here correctly, which is like 87 times and we think.

They will do.

Did you listen to our existing portfolio, that's what we want to.

A bunch of it.

Many people ask us a top priority for the next four or five months.

To launch some of our understanding from them.

The two new geographies.

And so yeah I'm Mumbai.

After that maybe we would look at once we get lunch business, but it's one that you have to be funded.

Uh huh.

Yeah.

I had two more to talk about it but as we speak there are 70 80 is the opportunity that we have and they bring with them to do that.

Irfan Razack: But as we speak, there are some 70, 80 opportunities that we have in different cities that we are evaluating, we are looking at it. So there is no dearth of opportunities. It's about prioritizing.

Venkat Narayana: But as we speak, there are some 70, 80 opportunities that we have in different cities that we are evaluating, we are looking at it. So there is no dearth of opportunities. It's about prioritizing.

Whereas everything.

So there is lots of opportunities its about a third of it.

Yeah.

Good thing, but I guess just for clarification.

Rakesh Vyas: Got it, Venkat. And just, just for clarification, between let's say in the similar geography between the project opportunity that are coming through these routes, which are so-called stuck or stressed project versus new JVJD opportunities, what would be the priority? Thanks, and festive greetings.

Between let's say in the industry Miller geography between the project opportunities that are coming through these at all to retire so of course that of course, the best project Lars is new.

New JV, Judy opportunities what would be the priority.

Do you think.

Irfan Razack: If the land being in the same location, definitely the returns, no? And what stage of this stuck project are most importantly, because for us, what baggage that project is coming with also matters. It's not just the returns. So, now there are a lot of issues that we can't resolve. There's no point in getting into that. But either it's a stress project or it is a JVJD, we follow, as you know, the cash light model. We would like to— execution is our strength. We want to put that as a capital into any transaction, and stitch it in such a way that the cash light upfront and whatever the ratio of the revenues that need to be paid to the party will be paid in the form of AR in subsequently once the projects get launched.

Venkat Narayana: If the land being in the same location, definitely the returns, no? And what stage of this stuck project are most importantly, because for us, what baggage that project is coming with also matters. It's not just the returns. So, now there are a lot of issues that we can't resolve. There's no point in getting into that. But either it's a stress project or it is a JVJD, we follow, as you know, the cash light model. We would like to— execution is our strength. We want to put that as a capital into any transaction, and stitch it in such a way that the cash light upfront and whatever the ratio of the revenues that need to be paid to the party will be paid in the form of AR in subsequently once the projects get launched.

This is a man being in the same location is definitely there.

And what stage of that project, but most importantly, because what I didn't want baggage that project is coming with the old something like that.

It's not just that had been so oh.

Right.

Sure.

These declines are a result, there's no point in getting our internet, but even at this stage project our auditors. It gave me doing the.

As you know the cashless Martin you would like to you Christian is that the thing we wanted to put that type of capital liquidity transaction.

And contributing to it at the.

The cash later friends and whatever that ensure that every new that needs to be paid.

Oh pardon me would be paid.

Paid in the form of ADR.

We went to them with lunch.

So the approach remains the same but this is the target.

Irfan Razack: So the approach remains the same, whether it's a stress project, takeover, or JVJD.

Venkat Narayana: So the approach remains the same, whether it's a stress project, takeover, or JVJD.

Got it.

Thanks, a lot Aussie.

Great. Thanks that clarifies that thank you so much.

Rakesh Vyas: Great, thanks. That clarifies... Thank you so much.

Irfan Razack: Thank you.

Venkat Narayana: Thank you.

Thank you. The next question is from the line of somebody basically why.

Operator: Thank you. The next question is from the line of Samir Peysowala from Morgan Stanley. Please go ahead.

Now from Morgan Stanley. Please go ahead.

Yeah. Thank you so much and good evening everyone.

Samir Peysowala: Yeah, thank you so much. And, good evening, everyone. Venkat, I think I missed your earlier comment on the Hyderabad land acquisition. So if you can just clarify, you know, how big is the land parcel and what's the capital outlay for that?

Sameer Baisiwala: Yeah, thank you so much. And, good evening, everyone. Venkat, I think I missed your earlier comment on the Hyderabad land acquisition. So if you can just clarify, you know, how big is the land parcel and what's the capital outlay for that?

Because I think I, miss or a new apartment on D about land acquisition.

And just to clarify are we know how big of a land parcel in what's the capital outlay for that.

Irfan Razack: No, no, we've bought a land now in the auction for new, in Neopolis, which is, I think some INR 240-odd crores. INR 280 crores, to be precise, sorry. And, the rest is we've got Prestige Beverly Hills, which is already with us, which hopefully we'll launch it this quarter. Approvals have come. We're just waiting for the RERA number. Apart from this, we have picked up another piece of land, which again, is, just happened this quarter, so that's why you won't see in the reports, and that is for a plotted development, again, in Hyderabad.

Venkat Narayana: No, no, we've bought a land now in the auction for new, in Neopolis, which is, I think some INR 240-odd crores. INR 280 crores, to be precise, sorry. And, the rest is we've got Prestige Beverly Hills, which is already with us, which hopefully we'll launch it this quarter. Approvals have come. We're just waiting for the RERA number. Apart from this, we have picked up another piece of land, which again, is, just happened this quarter, so that's why you won't see in the reports, and that is for a plotted development, again, in Hyderabad.

I don't know if you can go up and I know in the auction for you in Europe on this.

So I think some 200 and part D R.

Wonder if you'd be close to be precise tobey.

And Oh the.

The best thing is being blocked the Ts Beverly Hills, which is already the best fit for me.

This quarter, we would have.

Got it.

That's waiting for their island, but apart from this we have picked up another piece of land are with again.

So it just happened this quarter. So that's why you won't see that before and that is sort of plotting Devin the thing about getting in Hyderabad.

Okay, great. Thank you.

Samir Peysowala: Okay, great, sir. Thank you. The other question is on slide number 29, where you kind of summarize your total development plan. The residential upcoming has gone up from 34 million sq ft in Q1 to 48 million sq ft in Q2. So what's driving this 14 million sq ft? I mean, you know, you said that your net debt has gone up, but there's no new land acquisition over there. So what's this 14 million sq ft increase?

Sameer Baisiwala: Okay, great, sir. Thank you. The other question is on slide number 29, where you kind of summarize your total development plan. The residential upcoming has gone up from 34 million sq ft in Q1 to 48 million sq ft in Q2. So what's driving this 14 million sq ft? I mean, you know, you said that your net debt has gone up, but there's no new land acquisition over there. So what's this 14 million sq ft increase?

And the other question is on slide number 29.

You kind of summarize your co-worker development plan D residential upcoming has gone up from 34 million square feet in Q1 to 48 million square feet in Q2.

So what's driving this 14 million square feet I mean, you know.

You said that your net debt has gone up but there's no new land acquisition with that.

So what's this 14 million square feet. Okay. That's a good question because what type of equipment upgrades.

Irfan Razack: It's a fantastic question, because what has driven it up is, we had Prestige City, which was in the under planning, that has moved up to, you know, sort of, which will come up for now construction. And I think that, that is the one major one that will happen. And there are several ones in Mumbai, which will add up to the numbers.

Venkat Narayana: It's a fantastic question, because what has driven it up is, we had Prestige City, which was in the under planning, that has moved up to, you know, sort of, which will come up for now construction. And I think that, that is the one major one that will happen. And there are several ones in Mumbai, which will add up to the numbers.

We had a T C T V drug in the eye that planning that has moved up to sort of which didn't come up in Florida now construction.

And I think that that is the one major one that will happen I'm, Doug, Yes, I've learned one thing.

Mumbai, which add up to the numbers.

Okay.

Samir Peysowala: But I think-

Sameer Baisiwala: But I think-

That's fantastic.

Irfan Razack: Venkat, I'm just opening the slide what you have.

Got it and just hoping to play.

So I think both of these what they did in Q1 S band.

Samir Peysowala: No, I think both of these were there in Q1 as well,

Sameer Baisiwala: No, I think both of these were there in Q1 as well,

Uh huh.

Irfan Razack: Give me a moment, Samir. I'm just looking at the slide. I'll return back and tell you. Now, so the details of these projects, if you look at, Samir, upcoming projects, is detailed. One of them is, I think, Cosmos. Why don't we do one thing? Let me take this area statement and the required additional projects that we have done. It's not that we might not, we have paid money, but we might have tied up and signed the document and had a default consideration understanding. I'll give you those additional projects.

Venkat Narayana: Give me a moment, Samir. I'm just looking at the slide. I'll return back and tell you. Now, so the details of these projects, if you look at, Samir, upcoming projects, is detailed. One of them is, I think, Cosmos. Why don't we do one thing? Let me take this area statement and the required additional projects that we have done. It's not that we might not, we have paid money, but we might have tied up and signed the document and had a default consideration understanding. I'll give you those additional projects.

Maybe playing some kind of.

Yeah.

Oh, okay.

So do you so.

Projects look like the upcoming budget.

Yeah.

Do you do one of them.

Oh gosh, well why don't you do one thing and we think that the idea of statements and reporting additional studies that we have done.

That'd be my bet.

Paid money tied.

Right up on signed the document had a different concentration dependent and give you those additional studies.

Samir Peysowala: No, sir. No, fair enough, Venkat. I'll take it from you. I know you have given the project details, like, 13, 14. My confusion is because you said that you have not paid any money when the net debt has gone up for new land acquisition. So that's why I'm not trying to, that's not getting reconciled in my, in my mind, that your development-

Sameer Baisiwala: No, sir. No, fair enough, Venkat. I'll take it from you. I know you have given the project details, like, 13, 14. My confusion is because you said that you have not paid any money when the net debt has gone up for new land acquisition. So that's why I'm not trying to, that's not getting reconciled in my, in my mind, that your development-

No fair enough. Thank God I take it from here I know you have given the product detail on slides 13, and 14. My confusion is because you said that you have not paid any money when the net debt has gone up for new land acquisition. So that's why I'm not trying to that's not getting reconciling my mom and my money that they're desperate Portland adventure.

Irfan Razack: No, so when we mentioned, when the net debt has increased, we said INR 1,000 crore of money is being paid only towards, the new land, or the land that we had committed, where we had to have deferred payments or, buying off landowner share or stake buy. I did mention the INR 1,000 crore we have incurred during the quarter.

Venkat Narayana: No, so when we mentioned, when the net debt has increased, we said INR 1,000 crore of money is being paid only towards, the new land, or the land that we had committed, where we had to have deferred payments or, buying off landowner share or stake buy. I did mention the INR 1,000 crore we have incurred during the quarter.

This has increased.

Allison close off money is being paid when lead the works are the new land.

Let me take that.

Therefore, they are buying golf Orlando than she had uptick but I did mention the total cost incurred during the quarter.

Okay. That's all those are all the previous transactions, probably two or three P. M.

Samir Peysowala: Okay. I thought those were all the previous transactions for which we have paid the money. Well, that's fine, Venkat. See, Venkat, my question is on net debt. I think, if I'm not wrong, by March quarter end, it was INR 850 crore.

Sameer Baisiwala: Okay. I thought those were all the previous transactions for which we have paid the money. Well, that's fine, Venkat. See, Venkat, my question is on net debt. I think, if I'm not wrong, by March quarter end, it was INR 850 crore.

That's fine.

CV vanquish.

My question is on net debt.

Think if I'm not wrong and by March quarter, and it's supposed to 850 crores.

And then it went up quickly in 2000 and I'll just close with 103000 crores. So you know so just wanted to I M.

Irfan Razack: Mm-hmm.

Samir Peysowala: Then it went up to INR 22,000 crore. Now, this quarter has gone to INR 3,000 crore. So, you know, so just wanted to... And this is when, you know, a big part of our CapEx is actually ahead of us. So how do you see the net debt trajectory over the next one- to three-year period, keeping in mind the new project acquisition and CapEx outlay that's being planned?

Sameer Baisiwala: Then it went up to INR 22,000 crore. Now, this quarter has gone to INR 3,000 crore. So, you know, so just wanted to... And this is when, you know, a big part of our CapEx is actually ahead of us. So how do you see the net debt trajectory over the next one- to three-year period, keeping in mind the new project acquisition and CapEx outlay that's being planned?

This has been you know.

A big part of our Capex is actually ahead of us I'm.

So how do you see that in Med Tech.

Over the next one to three year period, keeping in mind, the Newpage acquisition and Capex outlay, that's been planned.

So now let me give you one quarter ahead and they made a deliberate strategy no one is doing better.

Irfan Razack: So now let me give you for one quarter ahead, and then I'll tell you the strategy. Now, once the phase two of the transaction gets completed, we have additional receivables of little, around INR 560 crore from the phase two of the transaction. Plus, because it will also have, since we have a JV partner, the consolidation effect, another INR 600 crore of debt will not come for consolidation. The total impact of that transaction would be little over 1,100 crore... We also have two hundred and fifty crores of money that need to be received once we complete the CES out of phase one of the DS transaction, that's primarily demerger. So that will add up to the other INR 250 crore.

Venkat Narayana: So now let me give you for one quarter ahead, and then I'll tell you the strategy. Now, once the phase two of the transaction gets completed, we have additional receivables of little, around INR 560 crore from the phase two of the transaction. Plus, because it will also have, since we have a JV partner, the consolidation effect, another INR 600 crore of debt will not come for consolidation. The total impact of that transaction would be little over 1,100 crore... We also have two hundred and fifty crores of money that need to be received once we complete the CES out of phase one of the DS transaction, that's primarily demerger. So that will add up to the other INR 250 crore.

Good computer we have received an E mail.

And in particular on the baseboard.

The contraction plus because the cloud somehow seem to ever give me back another consolidation method.

And that 600 goes off.

We're not going to pick on foundation, the total impact of the transaction would be.

Uh huh.

I'm one of them of course.

We also have a.

And then can pick up somebody that wants.

Once they complete the C. Yet although he is one of the transaction.

Uh huh.

I'm a little bit.

So that can add up to INR.

So all of our 1000.

Irfan Razack: So overall, around INR 1,400 crores of net debt reduction is what we are talking about next quarter. Now, post that, as far as the residential goes, except for the new acquisitions, the amount of money that we are collecting versus we are spending is good enough. It's only about the growth. We feel that even the collections will also go up, and we should be able to touch INR 2,000 mark. So that's not the one we will also be looking into. It's about commercial portfolio. As far as the commercial portfolio is concerned, we are looking at in some of the projects to go back to what we used to do, do some set of sales, get the cash flows in, and complete the development.

Venkat Narayana: So overall, around INR 1,400 crores of net debt reduction is what we are talking about next quarter. Now, post that, as far as the residential goes, except for the new acquisitions, the amount of money that we are collecting versus we are spending is good enough. It's only about the growth. We feel that even the collections will also go up, and we should be able to touch INR 2,000 mark. So that's not the one we will also be looking into. It's about commercial portfolio. As far as the commercial portfolio is concerned, we are looking at in some of the projects to go back to what we used to do, do some set of sales, get the cash flows in, and complete the development.

I wonder if it goes up a bit.

And it actually is what we're talking about next quarter.

Now of course that I talked about it.

And she'll go.

Except for the acquisition so.

So most of them he's like they're collecting what does he is spending.

Now the good feedback.

Feedback even the collections will also go up and you should be able to production due to the month.

That's number one.

You will also be the complete the one commercial footprint.

So the commercial portfolio is concerned we are.

It seems that some of the projects will go back to what we used to do.

Got us here, because the guys 13 uncompleted development, Okay, that's sort of what would happen in 2014 and bring something to the development because we may be wanting people to live their development, but victory.

Irfan Razack: Okay, therefore, what would happen instead of owning 100 percent of the development, we may be owning 60 percent of the development, but debt free, free of debt. Or we are also designing other strategies saying that, "Okay, we'll keep some of the projects fully. Maybe some projects we can do, strata sales," because there's so much of appetite also, from the customers to invest into the strata sales. Therefore, even that front, there won't be too much of, debt burden, once this strategy is put to place. And we have, retail and hospitality. The number of, projects in the retail, are comparatively, smaller, in terms of volume, so therefore, that will not be a significant, debt mover.

Venkat Narayana: Okay, therefore, what would happen instead of owning 100 percent of the development, we may be owning 60 percent of the development, but debt free, free of debt. Or we are also designing other strategies saying that, "Okay, we'll keep some of the projects fully. Maybe some projects we can do, strata sales," because there's so much of appetite also, from the customers to invest into the strata sales. Therefore, even that front, there won't be too much of, debt burden, once this strategy is put to place. And we have, retail and hospitality. The number of, projects in the retail, are comparatively, smaller, in terms of volume, so therefore, that will not be a significant, debt mover.

Oh, we're also presenting us instead of us, saying that okay. We'll keep some other got it fully maybe some projects we can do.

I don't think it's because there's so much of our protect also from divestments to invest into this type of thing the important even.

Even in that trend.

Then one quick too much of a big burden.

Once the strategies, particularly angry.

And we have oh retail and hospitality.

A number of our projects in the region retail items.

The comparatively.

Smaller.

In terms of volume.

That will not be a significant oh.

Irfan Razack: Because retail is something which we have to incur, we can't strata sell, and it is a CapEx project, and we need to own it.

Venkat Narayana: Because retail is something which we have to incur, we can't strata sell, and it is a CapEx project, and we need to own it.

Because if you tell me something basically everything can be done faculty and visa cubic's projects and relief.

Yes, Thanks for this bank.

Samir Peysowala: Yes, thanks for this, Venkat. It's very clear to you know to me to hear your mind. But over next three- to four-year journey of big CapEx ahead of you, where do you think your net gearing will peak out? Is it 100%, 70%? So that would really help.

Sameer Baisiwala: Yes, thanks for this, Venkat. It's very clear to you know to me to hear your mind. But over next three- to four-year journey of big CapEx ahead of you, where do you think your net gearing will peak out? Is it 100%, 70%? So that would really help.

It's very clear to.

For me to hear you mind, but over the next two to three to four year journey of a big Capex ahead of you where do you think your net gearing will peak out is it 100%, 70%. So that's what really had.

Irfan Razack: We did mention last time, saying that our comfort level and we are working towards is, of course, we want to grow, we want to take it to the next level, but at the same time, we want to follow and give importance to the financial discipline. 0.5 to 0.6 gearing is where we would be comfortable, and to achieve whatever the target that we have set for next three to four years. Since you said the gearing, debt equity, apart from net debt coming down, I also have to mention that our net worth, because of the accounting, we have to recognize, the accounting ledger also will increase by INR 1,800 crore, once the phase two is done. So net debt will come down.

We did mention last time paying that off.

Venkat Narayana: We did mention last time, saying that our comfort level and we are working towards is, of course, we want to grow, we want to take it to the next level, but at the same time, we want to follow and give importance to the financial discipline. 0.5 to 0.6 gearing is where we would be comfortable, and to achieve whatever the target that we have set for next three to four years. Since you said the gearing, debt equity, apart from net debt coming down, I also have to mention that our net worth, because of the accounting, we have to recognize, the accounting ledger also will increase by INR 1,800 crore, once the phase two is done. So net debt will come down.

Our comfort level and we are working towards is of course, we want to grow we want them to get from Mexico, but at the same time wanted to follow and importantly, the financial discipline Blankfein 2.6, getting is a word we would be comfortably.

And Oh Gee, what are the targets for next two to four years. He was just kind of getting a good equity apart from the bid coming down I also have to mention that that Nick.

Because of the accounting we have to recognize a.

Oh the countries, they're gonna also will increase.

And then of course once the phase two study.

So then it will come down so you probably give you an indication.

Irfan Razack: So if I have to give you indication, post phase two of the transaction from current 0.43 DE ratio, we may be at around 0.2.

Venkat Narayana: So if I have to give you indication, post phase two of the transaction from current 0.43 DE ratio, we may be at around 0.2.

Of course, the phase 12 they.

And that came from current point for fleet be an issue, but maybe I'm wrong.

0.2.

Oh.

Samir Peysowala: Okay. Okay, thank you very much. I have a few more. I'll get back in the queue. Thank you.

Sameer Baisiwala: Okay. Okay, thank you very much. I have a few more. I'll get back in the queue. Thank you.

Okay. Thank you very much I went a few months to get back in the queue. Thank you.

Irfan Razack: Thanks, Anuj.

Venkat Narayana: Thanks, Anuj.

Thank you. The next question is from the line of sort of from JP Morgan. Please go ahead.

Operator: Thank you. The next question is from the line of Saurabh from JP Morgan. Please go ahead.

[Analyst] (JP Morgan): Yeah. Hi, sir. So just three questions. One is, this Marine Lines, this is again with DB Realty, right? This project.

Saurabh Kumar: Yeah. Hi, sir. So just three questions. One is, this Marine Lines, this is again with DB Realty, right? This project.

Yeah, Hi.

Three questions. One is this money times. This is a good win rate.

The saga.

Uh huh.

Irfan Razack: They were the owner. Yes, we are now taking over from ARP.

Venkat Narayana: They were the owner. Yes, we are now taking over from ARP.

Yes, we are now taking but what from a yeah.

[Analyst] (JP Morgan): Okay. So the issue, Venkat, here is that there seems to be a concentration risk, which is building up in Prestige towards DB now. You know, this is obviously a fourth project with them. And, you know, and these guys have in the past struggled to finish these projects, and they've had these for a long period of time. So, the limited issue here is: What is giving you confidence on doing this when the past owners weren't able to do it? I mean, I understand the funding piece, but these are very large projects, with very large capital investments. So, so the concentration risk is something, you know, have you ever thought about it or?

Saurabh Kumar: Okay. So the issue, Venkat, here is that there seems to be a concentration risk, which is building up in Prestige towards DB now. You know, this is obviously a fourth project with them. And, you know, and these guys have in the past struggled to finish these projects, and they've had these for a long period of time. So, the limited issue here is: What is giving you confidence on doing this when the past owners weren't able to do it? I mean, I understand the funding piece, but these are very large projects, with very large capital investments. So, so the concentration risk is something, you know, have you ever thought about it or?

So the issue isn't good here it.

Is that there seems to be a concentration risk with everybody linked up into that seems to work do you do now probably it's a fourth project with them.

And Oh, you know and these guys have in the past February finished he saw this I mean, they've had this for a long period of time. So a limited issue had is what is giving you confidence on doing this.

Because who knows what I'm able to do it I mean I understand up on maintenance, but these are very large projects are with very large capital investment.

So the concentration risk is something you don't have you ever for the mortgage.

So Pete you mentioned about maybe some what are the projects that we are doing right now he gets one.

Irfan Razack: So since you mentioned about DB, what are the projects that we are doing with DB right now? Is BKC 101, that's phase one.

Venkat Narayana: So since you mentioned about DB, what are the projects that we are doing with DB right now? Is BKC 101, that's phase one.

Well no one is one.

[Analyst] (JP Morgan): Yeah.

Saurabh Kumar: Yeah.

Irfan Razack: Phase two is with ABIL, primarily, so phase one of DKC, and Prestige Liberty Towers at Mahalakshmi. These are the two projects that we are doing with DB. Because since you mentioned, saying that some concentration with DB, I want to-

Venkat Narayana: Phase two is with ABIL, primarily, so phase one of DKC, and Prestige Liberty Towers at Mahalakshmi. These are the two projects that we are doing with DB. Because since you mentioned, saying that some concentration with DB, I want to-

Always with the E P a M.

Yeah.

So phase one would be good.

I ended up excuse me, but he does have my electric these are the two projects that we're going to be because due to maintenance and content that shouldn't be I wonder if you look at the as the regulatory one.

[Analyst] (JP Morgan): Aerocity as well, right, the Delhi one?

Saurabh Kumar: Aerocity as well, right, the Delhi one?

Irfan Razack: Let me finish off. It's one more commercial project that is with the ABIL, so three commercial projects. As far as the residential go right now, all three residentials are not with DB. Jasdan Classic is not, Pali Hill is not, Cosmos is not. In fact, whatever we are evaluating with Marine Lines is also coming from a financial institution, namely, LY and the other, the ARP, and DB happen to be the owner. This is, in fact, first residential that we are looking at it. So there's no concentration risk that we are looking at. We have evaluated the project-

Venkat Narayana: Let me finish off. It's one more commercial project that is with the ABIL, so three commercial projects. As far as the residential go right now, all three residentials are not with DB. Jasdan Classic is not, Pali Hill is not, Cosmos is not. In fact, whatever we are evaluating with Marine Lines is also coming from a financial institution, namely, LY and the other, the ARP, and DB happen to be the owner. This is, in fact, first residential that we are looking at it. So there's no concentration risk that we are looking at. We have evaluated the project-

Sure.

It's the one where commercial project that is with the E P. A pretty commercial but I figure, it's been killing tools right now.

All three that's been true or not.

There's been classics is not finally, he lives not cosmos is not exactly what you would think with marine life is also coming from a financial institution I mean me in life and Oh.

Yeah.

And do you happen to be the winner.

They shouldn't have been looking at it.

There's no concentration risk that we are looking at we have a value to the project.

[noise] pretty crystal and the participants to please.

Operator: Request all the participants to please stay connected while we reconnect the management. Ladies and gentlemen, the line for the management is reconnected. Thank you, and over to you, sir.

Hi management.

Okay.

[noise], ladies and gentlemen.

For the management is reconnected. Thank you I don't want to yourself.

Irfan Razack: Saurabh, go on, go on. So sorry, we got cut off. Saurabh, so therefore, there is no concentration with anyone. We evaluate each project, given the location and given the possible size of development that we can do and what kind of attraction that we can get, and then decide to do the project or not. So not because of any other reasons. And we believe that Marine Lines has the potential, given the location of the land; hence, we are, you know, going ahead with the project. In fact, Saurabh, HDFC had offered us one more project which DB was involved, which HDFC was stuck with them. We left that. That was also some called some Bandra something, but some eight or something, but we left it. I mean, there's no point, like you said, rightly.

Venkat Narayana: Saurabh, go on, go on. So sorry, we got cut off. Saurabh, so therefore, there is no concentration with anyone. We evaluate each project, given the location and given the possible size of development that we can do and what kind of attraction that we can get, and then decide to do the project or not. So not because of any other reasons. And we believe that Marine Lines has the potential, given the location of the land; hence, we are, you know, going ahead with the project. In fact, Saurabh, HDFC had offered us one more project which DB was involved, which HDFC was stuck with them. We left that. That was also some called some Bandra something, but some eight or something, but we left it. I mean, there's no point, like you said, rightly.

One one.

So sorry, we got cut off.

So therefore, there is no contemplation within even be reevaluated the each project given the location and given the possible size of development that we can do and what kind of a connection that we can get and then decide to do the projects that are not so not because of any other reasons I'm D believes that marine.

<unk> has the potential given the location of their name.

We are oh.

Going into the project.

In fact it did.

He had offered US one more product at a D. B wasn't module can be if you are stuck with them.

The fact that there's also some good some bad.

But something like eight or something but he left it that means there's no. One can say it directly but then we have to see the opportunity and then afterwards you feel it is worth it.

Irfan Razack: But then we have to see the opportunity, and then afterwards, we feel it is worth it, we have to go for it.

Venkat Narayana: But then we have to see the opportunity, and then afterwards, we feel it is worth it, we have to go for it.

You have to go.

That's a big clearance to be obtained by D b or does that for them.

[Analyst] (JP Morgan): Sir, but the clearance is to be obtained by DB, or does that fall under the-

Saurabh Kumar: Sir, but the clearance is to be obtained by DB, or does that fall under the-

Irfan Razack: Even now, we have talked it out. In which project are you referring to?

Venkat Narayana: Even now, we have talked it out. In which project are you referring to?

Even though you had talked about in which probably have thought it would have been too.

[Analyst] (JP Morgan): Across the projects, the approvals, the construction, say, CC, do you need to get it or does DB need to get it?

Saurabh Kumar: Across the projects, the approvals, the construction, say, CC, do you need to get it or does DB need to get it?

But relative to I guess, the approval was become substantive D C.

The unique look I think all of those.

You didn't do it well.

Irfan Razack: So the project that we have with DB, we told you in earlier calls also, the approval is the responsibility of the partner, landowner. Construction, design, planning, commissioning, and management is ours. So that's how the responsibilities are. Now, as far as Ocean Towers, Marine Lines are concerned, plans are already in place. Approvals are in place. That's how that is what gave us the comfort to go to the next step.

Venkat Narayana: So the project that we have with DB, we told you in earlier calls also, the approval is the responsibility of the partner, landowner. Construction, design, planning, commissioning, and management is ours. So that's how the responsibilities are. Now, as far as Ocean Towers, Marine Lines are concerned, plans are already in place. Approvals are in place. That's how that is what gave us the comfort to go to the next step.

The projects that we have with the D D.

So the approval is the responsibility of our partner.

Construction began timing then.

She and her management team so that sounds that responsibility.

As far as ocean.

The company plans are already in place.

Unfortunately, that's all.

But that is what gave us comfort to go to the next day.

[Analyst] (JP Morgan): Got it, sir. The second, Venkat, is, you know, your cash flows, which you show from your planning projects and your under construction. It seems that the gross margins are, you know, north of like 32, 33 odd %, which you make.

Saurabh Kumar: Got it, sir. The second, Venkat, is, you know, your cash flows, which you show from your planning projects and your under construction. It seems that the gross margins are, you know, north of like 32, 33 odd %, which you make.

Got it.

You have cash flows with two Shaw from your plan and so are there any other American stuff Jim.

Seems to be gross margins odd you know north of like how do you put 32 loss per se or what you mean.

Irfan Razack: Mm-hmm.

[Analyst] (JP Morgan): But, if you look at the EBITDA margins, and now I'm talking about just six months over a period of 2, 3 years that you've been disclosing this, you know, segmental breakup, the margins have been in that 18, 16% to 18% odd range. So I'm wondering, is the leakage between 32, 33 to 18 plus the SG&A, or is there, or is there something else there?

Saurabh Kumar: But, if you look at the EBITDA margins, and now I'm talking about just six months over a period of 2, 3 years that you've been disclosing this, you know, segmental breakup, the margins have been in that 18, 16% to 18% odd range. So I'm wondering, is the leakage between 32, 33 to 18 plus the SG&A, or is there, or is there something else there?

But if you look at the breakdown margins a nonprofit that six months what are people, who feels like you've been disclosing the segmental breakup our margins have been in that 16% to 18% range. So I'm wondering.

Because it seems like it looks like if we do a deal with C. N N or is it or is there something else there.

Lastly, I Couldnt hear you Oh, Philadelphia, what I'm, saying is if you look at your page 12.

Irfan Razack: Last line, I couldn't hear you, Saurabh.

Venkat Narayana: Last line, I couldn't hear you, Saurabh.

[Analyst] (JP Morgan): What I'm saying is, if you look at your page 12, your estimated value is INR 26,000 crore, and your, you know, the cost of construction is close to fourteen thousand, sorry, it is fifteen, fifteen thousand crores. So basically, you make about 30% odd, gross margin from these developments.

Saurabh Kumar: What I'm saying is, if you look at your page 12, your estimated value is INR 26,000 crore, and your, you know, the cost of construction is close to fourteen thousand, sorry, it is fifteen, fifteen thousand crores. So basically, you make about 30% odd, gross margin from these developments.

The bad news 26, southern Peru and Ah.

Cost of construction is close to what I was looking at all of them.

This is especially important but also basically you make about 30% gross margin from nothing.

Irfan Razack: Mm-hmm.

My my.

[Analyst] (JP Morgan): My question was that the EBITDA, which we see, at best, it has generally been in the 18% ballpark on an average. It varied between 16 to 20, depending on the quarter, but on a ballpark basis, remains at 18%. So versus the 32, 33, which is the cash flow, which you... I mean, which is the margin from your under construction project, the EBITDA translation is just 18. So the SG&A, the corporate cost, the overheads will be about 15% of sales? Would that be an accurate,

Saurabh Kumar: My question was that the EBITDA, which we see, at best, it has generally been in the 18% ballpark on an average. It varied between 16 to 20, depending on the quarter, but on a ballpark basis, remains at 18%. So versus the 32, 33, which is the cash flow, which you... I mean, which is the margin from your under construction project, the EBITDA translation is just 18. So the SG&A, the corporate cost, the overheads will be about 15% of sales? Would that be an accurate,

My question was that.

D C and they see.

Does that limit you in an 18% ballpark on the nowadays when they need to be 16 to consider depending on the quarter.

All five basis remains at 18%.

So is that particularly it's likely to be the case.

So I mean, if there's a margin from the under construction project.

The.

Transformation is just taking so the U S E N E because they've gone through what has it will be about 15% up there.

What do I do an accident.

Irfan Razack: No, sir. See, the stock, you are talking about under construction projects, no?

Venkat Narayana: No, sir. See, the stock, you are talking about under construction projects, no?

You either talk when you were talking about in that I'm thinking about it.

Yeah, and that construction, but even your Oh you know.

[Analyst] (JP Morgan): Yeah, under construction, but even your, you know, planning projects, row fifteen, it's very much for INR 30,000 crore, you're going to make INR 9,000 odd crore. I mean, if you, you know, if you net out the cost of development. So your gross margin, both in your under construction and future, is around that 33% odd mark.

Saurabh Kumar: Yeah, under construction, but even your, you know, planning projects, row fifteen, it's very much for INR 30,000 crore, you're going to make INR 9,000 odd crore. I mean, if you, you know, if you net out the cost of development. So your gross margin, both in your under construction and future, is around that 33% odd mark.

Planning for the Ultra Phoenix pretty much worked I think all of them could always you would've made 9000 odd crores.

Yeah.

The cost of developing so the gross margin within your under construction into each other around about 30 people in my remarks.

Yes, no seasonal marketing button is random.

Irfan Razack: Hmm. Yes, now see, now what we have done is when we are planning, even the under construction projects, the stock numbers, we are being very conservative, and we have taken the numbers also saying that: Okay, whatever the dispatch, we are not factoring any increase that takes place in the stock pricing. So therefore, as earlier, I was answering some other question, when we get come closer to the launch, it's when we will know exactly what's the selling price and what cost we're going to incur. And right now, if you see, there would be a variation of 15, 20%, because these are all merely estimates. We do believe that, you know, some of the projects in Mumbai, what we are doing should have better margins.

Venkat Narayana: Hmm. Yes, now see, now what we have done is when we are planning, even the under construction projects, the stock numbers, we are being very conservative, and we have taken the numbers also saying that: Okay, whatever the dispatch, we are not factoring any increase that takes place in the stock pricing. So therefore, as earlier, I was answering some other question, when we get come closer to the launch, it's when we will know exactly what's the selling price and what cost we're going to incur. And right now, if you see, there would be a variation of 15, 20%, because these are all merely estimates. We do believe that, you know, some of the projects in Mumbai, what we are doing should have better margins.

And given that construction projects the stock.

Number two we're being very conservative and we're taking the Nimbus also saying that they'll go whatever that means you're not factoring any can you believe that big big splitting the stock pricing. So therefore.

And one other question when we get closer to the launch is when we will know exactly what the selling price and what cost we won't incur and right. Now you can see there would be a variation of cooking, 20% because you tell me at least to me.

We do believe that.

You know some other projects.

Should we have should have better margins.

Okay. Nobody if you do want a thought on what they can do.

[Analyst] (JP Morgan): Okay. Now, my question-

Saurabh Kumar: Okay. Now, my question-

Irfan Razack: And in fact, if you do want, Saurabh, what I can do is, you know, project-wise, we can run through so that it helps you to understand also better.

Venkat Narayana: And in fact, if you do want, Saurabh, what I can do is, you know, project-wise, we can run through so that it helps you to understand also better.

Is project places we can we can we can come through so that it tends to do I'm, just kind of on something like that.

[Analyst] (JP Morgan): Yeah, I mean, it'll help if you can give, you know, the gross margin and the EBITDA; maybe that will maybe help us better.

Saurabh Kumar: Yeah, I mean, it'll help if you can give, you know, the gross margin and the EBITDA; maybe that will maybe help us better.

Yeah.

If you can give me another broad smarter than they had been dominated by the movie.

Okay.

Irfan Razack: Okay.

Venkat Narayana: Okay.

[Analyst] (JP Morgan): Okay, and the last question, Venkat is, have you seen price increases in any of your large projects over the last six months? I mean, the IT act—I mean, the hiring activity in the IT sector seems to be very strong. I was wondering if it is translating into price increase in any of your existing projects, under construction, or even projects which you have finished, where you're no longer there, but you are probably observing it as a second-year server.

Okay, and then last question.

Saurabh Kumar: Okay, and the last question, Venkat is, have you seen price increases in any of your large projects over the last six months? I mean, the IT act—I mean, the hiring activity in the IT sector seems to be very strong. I was wondering if it is translating into price increase in any of your existing projects, under construction, or even projects which you have finished, where you're no longer there, but you are probably observing it as a second-year server.

Have you seen but I used to increases in any of the large projects over the last six months I mean, the idea I mean, the hiring activity in the IV sets us into really strong I was wondering if it is translating into licensing any of your existing projects.

Construction or even projects that you have finished their you know longer debt, but you are probably up until they get their best I can do it.

My thought up prices Havent Greens right across the board, but then it has been a gradual increase but of course, if you look at the launch price and current pricing every single project.

Irfan Razack: You know, Saurabh, prices have increased right across the board, but then it has been a gradual increase. Of course, if you look at the launch price and current price in every single project, there is a significant rise in the price. But at the same time, we are making sure that the price increase is not felt by the consumer, because otherwise, then it has that other negative repercussions. To cover extra costs also, we have to increase the price. And price increase has happened, and it's a continuous thing. Because what happens is, as we go along, we have to gradually keep tweaking the price, so that we factor in all the, you know, cost overruns and the commodity prices increase and all of it. Otherwise, bottom line will get impacted.

Venkat Narayana: You know, Saurabh, prices have increased right across the board, but then it has been a gradual increase. Of course, if you look at the launch price and current price in every single project, there is a significant rise in the price. But at the same time, we are making sure that the price increase is not felt by the consumer, because otherwise, then it has that other negative repercussions. To cover extra costs also, we have to increase the price. And price increase has happened, and it's a continuous thing. Because what happens is, as we go along, we have to gradually keep tweaking the price, so that we factor in all the, you know, cost overruns and the commodity prices increase and all of it. Otherwise, bottom line will get impacted.

There is a significant rise in the price.

But at the same time, the right, making sure that that price increase is not finished by the consumer because otherwise in times that are no negative repercussions, but to come out of its drop caused some suddenly have to increase the price and pricing has happened and it's it's a it's a continuous thing because of what happened.

As we go along and we have to gradually keep tweaking the price. So that's factored in all of the cost.

Cost or whatever.

Commodity prices and even all of it otherwise bottom line doesn't get impacted of course waterfall. He can't change, but then the consumer really benefits out of it.

Irfan Razack: Of course, what is sold, we can't change, but then the consumer really benefits out of this. And, everywhere there is a price increase. There's no such thing as there's, you know, prices are stagnant or going down. But across the board, we, we have seen in certain projects, even a 100% price increase, certain projects, 50%, 60% price increase. But it's an ongoing thing. I can't identify it and tell you in one, one, brush stroke, but it's, it's a work in progress all the time. Just to give you some example, it shows the price increase varies from project to project, and it's not arbitrary, it's market-driven also.

Venkat Narayana: Of course, what is sold, we can't change, but then the consumer really benefits out of this. And, everywhere there is a price increase. There's no such thing as there's, you know, prices are stagnant or going down. But across the board, we, we have seen in certain projects, even a 100% price increase, certain projects, 50%, 60% price increase. But it's an ongoing thing. I can't identify it and tell you in one, one, brush stroke, but it's, it's a work in progress all the time. Just to give you some example, it shows the price increase varies from project to project, and it's not arbitrary, it's market-driven also.

And ER and we read that as the price increases.

There's enough places us back then.

But across the board.

And certain project, even 100% pricing essentially 50% and 60% in pricing.

The ongoing thing I can't identify anything they're doing one one last one.

Brush stroke.

It's a work in progress all the time so.

Just to give some example, you took a price increase vary from project to project.

It's not arbitrary it's market driven answer to give you. Some example of the completion you can take that this is probably going to be for example, we had non triggered quite doesn't go into now its a good thing. So we have good stuff I don't know I don't know if those incrementals into pizza.

Irfan Razack: So to give you some example, if the trigger is a completion, if you take it as, Prestige Falcon City, for example, we had launched it at INR 5,250. Now it's getting sold. We have it, we get stock around INR 9,500 to 10,000 rupees. Prestige Highfields in, Hyderabad, we had launched it around, INR 4,250 to 4,500. Now it's getting INR 8,000 rupees. So therefore, the trigger has been primarily in these two projects to get completion. See, when you see the kind of, development that has come out, elevations and the facilities and amenities that were given, there's definitely, 15, 20 percent up, increase and more, even more. Just because of completion.

Venkat Narayana: So to give you some example, if the trigger is a completion, if you take it as, Prestige Falcon City, for example, we had launched it at INR 5,250. Now it's getting sold. We have it, we get stock around INR 9,500 to 10,000 rupees. Prestige Highfields in, Hyderabad, we had launched it around, INR 4,250 to 4,500. Now it's getting INR 8,000 rupees. So therefore, the trigger has been primarily in these two projects to get completion. See, when you see the kind of, development that has come out, elevations and the facilities and amenities that were given, there's definitely, 15, 20 percent up, increase and more, even more. Just because of completion.

How you feel in a little bit about you had launched their own.

Photos and does it could do for now that was getting all eight of them to be.

So they bought that way.

It's been primarily due to project completion.

When you see the kind of development that has come out integrations in the facilities and amenities at breakeven, there's definitely a computer into consensus.

Uh huh.

Isn't the most.

There's a little contract mix played appetites also adobe or can be sold out.

Irfan Razack: Like Lakeside Habitat, also, though we are fully sold out, the price has gone up. So who benefits is the customer.

Venkat Narayana: Like Lakeside Habitat, also, though we are fully sold out, the price has gone up. So who benefits is the customer.

This has gone up so we'll benefit from the customer.

Okay.

[Analyst] (JP Morgan): Okay. So but in the last six months, have you seen any extra increase over and beyond whatever happens because of this construction?

Saurabh Kumar: Okay. So but in the last six months, have you seen any extra increase over and beyond whatever happens because of this construction?

In the last six months have you seen any exciting things beyond whatever it happens because of the construction economy C C.

Irfan Razack: We can't say. It's a gradual, we have to do it. We tweak it in such a way where market also has to accept it, and at the same time, we have to balance it. So it's not that I do a drastic price increase. 5, 6% on an average, if you look at it.

Venkat Narayana: We can't say. It's a gradual, we have to do it. We tweak it in such a way where market also has to accept it, and at the same time, we have to balance it. So it's not that I do a drastic price increase. 5, 6% on an average, if you look at it.

You have to do it quickly tenants actually what was market also I have to accept it and at the same time, we have to balance. It. So it's not that I do a drastic price increase.

I used to put some kind of an average if you look at.

[Analyst] (JP Morgan): Okay. Got it. Thank you, sir.

Saurabh Kumar: Okay. Got it. Thank you, sir.

All right. Thank you.

Thank you.

Operator: Thank you. I now hand the conference over to the management for the closing comments. Over to you, sir.

I now hand, the conference over to the management for closing comments.

Thanks, everyone and thanks for the wonderful interaction.

Irfan Razack: Thanks, everyone. Thanks for the wonderful interaction. As usual, it's always very quite insightful, and we also able to clarify a lot of things. Of course, whatever else is required, Venkat and me are available anytime, and I'm sure he will clarify the rest of it also. It's, for us, it's business as usual, and we are doing whatever we're doing with our best of abilities. I think company has been performing well and continues to do more and more work, and there's no stopping us. I believe there, there's a lot, a lot that, that is happening, and we are keeping on surpassing our previous targets. And that we've got a good team who's fully committed and quite passionate, and that's how the results also are coming through.

Venkat Narayana: Thanks, everyone. Thanks for the wonderful interaction. As usual, it's always very quite insightful, and we also able to clarify a lot of things. Of course, whatever else is required, Venkat and me are available anytime, and I'm sure he will clarify the rest of it also. It's, for us, it's business as usual, and we are doing whatever we're doing with our best of abilities. I think company has been performing well and continues to do more and more work, and there's no stopping us. I believe there, there's a lot, a lot that, that is happening, and we are keeping on surpassing our previous targets. And that we've got a good team who's fully committed and quite passionate, and that's how the results also are coming through.

It's always a very quite insightful and marathon we also.

More able to clarify a lot of things and of course, all whatever else is required.

They live in anytime.

I'm sure. He will tell you that this topic also.

Oh, it's a for US it's business as usual.

We want them, arguing with that desktop piece I think the company has been performing well and continues to do more and more work in a small stopping that and I believe there's a lot of luck that that's what's happening and we are keeping on supporting Hum.

Target and you've got a.

Good team, who is fully committed and quite passionate then that's how the results are also coming through.

Irfan Razack: I think we are pretty happy with what we are doing. Venkat? Thanks, everyone. Thanks for taking time to be in this post results call. Lot of exciting things. We, you know, expansion, growing in the existing market. We look at next three years as defining the years to take us to the next level. So far, last 40 days of Q3 have been very, very exciting. I mean, we're as excited to share numbers, but we'll keep it for Q3. We have, hopefully, we should be able to reach new benchmarks quarter after quarter in the next three, four quarters, especially on the pre-sales number, on the launch and the new geographies, et cetera. Look forward to your continued support. Thank you. Thanks again.

And I think because we are pretty happy with what you're doing when you're correct.

Venkat Narayana: I think we are pretty happy with what we are doing. Venkat? Thanks, everyone. Thanks for taking time to be in this post results call. Lot of exciting things. We, you know, expansion, growing in the existing market. We look at next three years as defining the years to take us to the next level. So far, last 40 days of Q3 have been very, very exciting. I mean, we're as excited to share numbers, but we'll keep it for Q3. We have, hopefully, we should be able to reach new benchmarks quarter after quarter in the next three, four quarters, especially on the pre-sales number, on the launch and the new geographies, et cetera. Look forward to your continued support. Thank you. Thanks again.

Thanks, everyone and thanks for taking the time because in this book to Bill.

A lot of exciting things.

Our expansion and growing the existing market.

We look at next three years as a defining the yet to take us to the next level.

So far at Masbate, So Q3 has been very very exciting.

Whereas if they negotiated number but we can keep them for Q3.

We have oh, hopefully, we should be able to do.

It's a new benchmark so quarter over quarter in the next three Florida, the Florida, especially on the breaches number on the launch.

Music et cetera.

We look forward to your continued support thank you.

Thanks again, thank you.

Operator: Thank you. Ladies and gentlemen, on behalf of Axis Capital, that concludes this conference. Thank you all for joining us, and you may now disconnect your lines.

Ladies and gentlemen on behalf of Axis capital.

Today's conference. Thank you all for joining us and you may now disconnect your lines.

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