Q1 2027 Signature Global (India) Ltd Earnings Call
Speaker #1: Chattopadhyay, thank you, and over to you, sir.
Speaker #2: Good evening, everyone. On behalf of ICICI I Securities, I'd like to welcome everyone on the Signature Global call today. As always, from the management, we have with us Mr. Pradeep Kumar Aggarwal, the chairman and whole-time director.
Speaker #2: Mr. Lalit Kumar Aggarwal, the vice chairman and whole-time director. Mr. Ravi Aggarwal, the managing director. Mr. Devinder Aggarwal, the joint managing director and whole-time director.
Speaker #2: Mr. Rajat Kathuria, the chief executive officer. Mr. Sanjeev Kumar Sharma, the chief financial officer. And Ms. Pritika Singh, head of investor relations. And now I'd like to hand over the call to the management for their opening remarks and comments.
Speaker #2: Over to you. Thank you.
Speaker #3: Quarter 1, FY 27, earning call, conference call of Signature Global. Thank you for joining us today. I hope you have had the opportunity to review our financial results and investor presentation shared earlier today.
Speaker #3: India's housing market continues to be supported by a strong macroeconomic environment, sustained infrastructure development, supportive government policies, and rising urbanization. All of which are driving long-term demand.
Speaker #3: The center's recent advisory directive states rural to grant a 4-month extension for eligible project impacted by the Middle East conflict further reflected a proactive policy approach toward the sector, combined with the evolving home buyer aspiration and a growing preference for quality development.
Speaker #3: These factors are creating significant growth opportunity for organized real estate developers. According to a recent report of Kushman and Wickfield, 18,000,470 residential units were launched in Delhi NCR during H1 2026, making it 10% year-on-year increase.
Speaker #3: Gurugram retained its position as a region premium residential hotspot, accounting for 74% of all luxury housing launches. Additionally, the average launches price of home in Delhi NCR rose 24% year-on-year in Quarter 2, 2026, reflecting sustained demand for premium housing in the region.
Speaker #3: Against the positive backdrop, Signature Global continued to increase a presence across the residential macro market while expanding its diversification strategy. During the quarter, we entered in a branded residence segment through our collaboration with the Tonino Lamborghini for a premium residential project in Sector 71 on Southern Periphery Road, Gurugram.
Speaker #3: This launch aligned with the rapid growth of the branded residence segment, which industry estimates projects will expand by nearly 60% by 2027. Driven by the rising demand for premium and experience-led living, the strong response to the first phase of Renfe for the confidence in this segment, and we will continue to be pursue similar opportunity that align with the evolving customer aspiration, the quarter also reflected steady operational progress, healthy demand, across our projects, improved sales realization, and sustained momentum in our core markets.
Speaker #3: This performance was supported by a very healthy project execution improved operational efficiency, and successful monetization of our portfolio, reframing the strength of our business model and disciplined approach to the sustainable growth.
Speaker #3: Looking ahead, we remain optimistic about the long run outlook for the housing sector, particularly in Gurugram, and the wider NCR region. Our focus will continue to be on timely delivery, project delivery, customer certainty, financial discipline, and catering long-term value for the all stakeholders.
Speaker #3: With that, I would love now like to invite our CEO, Mr. Rajat Kathuria, to take you through the company financial performance in detail. Thank you once again for joining us today.
Speaker #3: And for your continued support to of Signature Global. Thank you.
Speaker #4: Thank you, Pradeep Ji, and thanks, everyone, for joining today's call. Taking a little deeper into details, so during this quarter we did a fairly good launch of this group housing and apartment project.
Speaker #4: You know, development wherein we did a tie-up with lifestyle brand Tonino Lamborghini. This is a reasonable size project, more than 12 acres in size, and more than 2 million square foot in terms of super built-up area.
Speaker #4: We launched the project at the highest ever price we've achieved ever, which is a little above 22,000 rupees a foot. Hence, taking the GDV value in excess of 4,000 crores, about 44 billion to be precise.
Speaker #4: So overall, the project had more than 800 odd units. We opened up about 400 plus 400 odd units for the first phase of sale, and more than 300 plus units were sold.
Speaker #4: So if you you know, so we are fairly enthused that at these price points we got a very strong response from the market. And even this needs to be looked upon in the context of the macro headwinds which we were witnessing throughout the first quarter, with the Middle East in war.
Speaker #4: They were every day, you know, bad print, you know, bad media stories getting covered, currency devaluations being talked about, et cetera. But given all of that, I think we were very happy with the way the project launched, you know, happened and performed.
Speaker #4: And, you know, it's satisfying and the way it has happened. We'll be planning more launches for the year. Our overall guidance stays firm to come up with new launches worth, you know, 150 billion.
Speaker #4: For this year. So there are more launches planned during the third and the fourth quarter. More around Diwali, you know, there's another launch which is getting planned.
Speaker #4: We should, by and large, be able to achieve it. And there's a launch in the fourth quarter which is planned. So we look comfortable around our annual guidance of new launches of 150 billion for this particular year.
Speaker #4: I would also like to point out that if we look at the previous 8 to 9 quarters, we've consistently been launching projects across categories and across markets within Gurugram, whether these are larger townships where we launched two large townships, one of 125 acres, the other of 140 acres.
Speaker #4: And consistently launching group housing projects starting from Deluxe DXP to Titanium, Cloverdale, you know, and Twin Towers, and, you know, now Tonino Lamborghini. So all these launches have been done in good tandem because our fundamental thesis and, you know, learning of working in this market is that it's hugely supply constrained.
Speaker #4: Gurugram market saw very little supply creation happen between 2014 and 2022 at an industry level, and hence that created a vacuum. The demand for new homes is significantly high, and that's why we feel the supply constraint can be met only by consistent supply, which with Signature Global has been, you know, working upon over the last few years.
Speaker #4: As far as the numbers go, yeah, we've done close to 2,000 odd crores about 20 odd billion of sales pre-sales got achieved. Given our launch pipeline, we stay confident of achieving about 100 billion of pre-sales for the current year.
Speaker #4: This can be looked at in multiple ways. I think 20% of the target got achieved in first quarter itself. Usually, quarter 3 tends to be a good quarter.
Speaker #4: In North India, and, you know, with more launches planned around that time, we are feeling comfortable with 100 billion target for the full year.
Speaker #4: As far as the price points realizations and collections go, we achieved a first square foot realization in excess of 17,000 rupees a foot. For the whole of last year, this number stood at a little above 15,000 odd rupees a foot.
Speaker #4: So we've grown significantly in terms of price per square foot, which is which is primarily driven by more premium launches you know or premium launch within this first quarter.
Speaker #4: That's one of the primary reason why the per square foot realization has gone up. But even in general, in Gurugram, we are seeing you know at an industry level, people getting in you know an inflation plus level increment in selling prices.
Speaker #4: Primary reason for that being that you know demand is outpacing supply, and demand is steady. Hence, you know, developers are feeling confident of you know enriching the product you know giving better quality product.
Speaker #4: And backed up by a good quality infrastructure which has come up over the years. I think some of these places which were a little ahead from the city are very much part of the city.
Speaker #4: There is more plans in terms of city level infrastructure. The metro development, the phase two metro development is is approved. And you know that's like going to be a again a game changer for the Gurugram city.
Speaker #4: So overall prices continue to go up. We've also you know followed in line with the trend, we've also witnessed you know realizations going up.
Speaker #4: As far as our collections are concerned, I think we collected about 6.7 billion during this quarter. This number you know will grow significantly during the current year because collections often are you know basis the milestones getting achieved.
Speaker #4: We are achieving completion on a lot of our projects during this current year. We we anticipate completing projects in excess of 5,000 odd crores and recognizing revenue of like 5,000 odd crores about 50 odd billion INR.
Speaker #4: And hence, in line with that, collections are expected to pace up during the rest of the year. As far as the current portfolio position goes, we've delivered about 19 million square foot till date.
Speaker #4: There's another 9 million square foot which on an average completion timelines like two to three two to and a half quarters by another four quarters or five quarters bulk of this 9 million would have been completed with with few exceptions.
Speaker #4: But the average completion timeframe of this 9 million square foot just anywhere between two to three quarters now. In terms of recently launched project like I just talked about that we've consistently created supply.
Speaker #4: We've launched projects of almost like 23 million square foot. Since February 24, when we launched a group housing project called Deluxe DXP. The GDV value of all these launches is 334 billion.
Speaker #4: So this is one other significant bucket. So a lot of portfolio is actually converting into cash. These are not just futuristic land parcels which will be getting launched in five or seven or ten years.
Speaker #4: This is actually projects where you know work has commenced and you know we've actively developing these projects now. Besides that, there's a forthcoming portfolio of about 17 million square foot.
Speaker #4: Of which 5 million square foot is a commercial development where we did a tie-up with the RNG group and we announced it in March.
Speaker #4: But besides that, there's another 12 million square foot which we will be launching as part of this year and the coming year. Now, as far as adding to the portfolio is concerned, we are very actively involved in doing new business development.
Speaker #4: As during this year, and we are very hopeful of adding significant amount of you know land within our core markets and even outside of our core markets.
Speaker #4: When by outside, I mean you know markets outside of the Delhi NCR. So both of these markets we are very you know hopeful of doing significant new business development.
Speaker #4: Besides that, you know the balance sheet position of the company stays very good. We are sitting on cash and bank balances of close to 25 billion.
Speaker #4: Our net debt position is close to you know less than 3.9 billion. So very low levels of net debt. While doing business development during the year, you know the net debt numbers could go a little bit higher.
Speaker #4: Not significantly higher, but these could grow as during this year as we intend to do significant amounts of business development. Besides that, I think there were few project completions.
Speaker #4: We completed few affordable housing projects. They just few now more to go. And we would be done by all affordable housing completions in in couple of quarters.
Speaker #4: But even in this quarter, there was more affordable housing completion than mid-income segment. The average per square foot you know realization of inventory which got completed during this quarter was less than 6,000.
Speaker #4: So while currently we are selling at an average realization of 17,000, during the first quarter our average you know revenue was recognized on inventory which got completed was less than 6,000.
Speaker #4: And hence, you know the P&L is not fully reflective of the current position. But during the course of the year, we are very comfortable that we'll recognize revenue of more than 50 billion and show a very good pat number emerging out of historical projects which are getting completed.
Speaker #4: So by and large, we we stay comfortable with our overall business guidance. You know the the business performance is steady. Completions are happening at a good pace.
Speaker #4: Rains have been quite heavy last couple of days. But by and large, you know we've we've got good number of working days. They weren't there are too many disruptions happening out of rain this year.
Speaker #4: And we are fairly confident with regard to timely completions and collections. And you know launches are planned. So so we look comfortable with the guidance we gave at the start of the year.
Speaker #4: And it's it's a good beginning is the way we look at this particular year. And just to add on, I think in terms of a bit of flavor on on the nature of business development, we are you know we feel comfortable doing large format developments.
Speaker #4: The way we've seen success of project Dakshin and project City of Colors in our core market, we want to take that particular product segment you know across various markets.
Speaker #4: Even outside of Delhi NCR. And you know low rise developments, large format developments, spread across you know 100, 150 odd acres. Is somewhere we are focusing on.
Speaker #4: And you know you'll see more additions on that format happening during the rest of the year. Happy to take up any any questions you know which which you guys follow us.
Speaker #1: Ladies and gentlemen, we will now begin with the question and answer session. Anyone who wishes to ask a question may first start. And one.
Speaker #1: Anyone who wishes to remove themselves from the question queue may first start. And two, participants are requested to use handsets while asking questions. Ladies and gentlemen, you may wait for a moment while the question queue is assembling.
Speaker #1: The first question is from the line of Parvez Kazi from Noovama Group. Please go ahead.
Speaker #3: Hi. Good evening and thanks for taking my question. So my question is regarding business development activity. If I heard you right, you said that we are okay looking at projects outside NCR also.
Speaker #3: And did I get that right?
Speaker #2: Yeah. Yeah, Parvez, that's right.
Speaker #3: So have you firmed up which geography are we looking at? Is this largely going to be North India or we are okay looking at other metro cities as well?
Speaker #2: So we are evaluating few opportunities. But you know let it you know come to the stage where you know we can share more. So I would prefer not to you know suggest the particular location.
Speaker #2: But yes, we are looking at larger format developments outside of the Delhi NCR market as well.
Speaker #3: Sure. And ballpark I mean what kind of landscapes are we comfortable during the current days?
Speaker #2: So see the number could be in the range of around you know 1,500 to 1,800 odd crores for the year.
Speaker #3: Sure. Regarding our launches in H2, fair to suggest that one of them could be in Dwarka Expressway and the other at SPF.
Speaker #2: It could be it's possible that both of them could be in the SPF itself. The second one is definitely in SPF. The third one we are yet to decide.
Speaker #2: But most likely it could be SPF again.
Speaker #3: So then a related question. I mean first quarter we had a launch with the GDO about 4,400 crore. So with guidance about 15 odd thousand crore, that leaves almost about 10,000, 10,500 for the second half.
Speaker #3: So are we okay bringing that kind of inventory in a single micro market or or can there be launches outside these micro markets?
Speaker #2: See, there will be some launches outside. I'm not saying the entire you know 150 billion gets achieved out of the single market. But yes, a good portion of the launches for the current year are planned in sector 71.
Speaker #2: And we are comfortable creating that kind of supply because there is very little getting supplied in that market at this stage because there are very few developers locally who own you know any reasonable quantum of land in in that particular market which is you know coming out very well.
Speaker #2: In in in last couple of years.
Speaker #3: And and last question. In SPR, we are comfortable with the kind of ticket size and the unit size which we have roughly about 5 and a half crore.
Speaker #3: Would that be a fair assessment?
Speaker #2: Yes.
Speaker #3: Sure. Thanks and all the best.
Speaker #2: Thank you.
Speaker #1: Thank you very much. Reminder for all participants, please press star and one to ask a question. Participants who wish to ask a question may press star and one.
Speaker #1: The next question is from the line of Pritesh Sheth from Axis Capital. Please go ahead.
Speaker #2: Yeah. Thanks for the opportunity. So just on you know continuing on these launches you know we I think we had we had a branded residence launch this quarter.
Speaker #2: And there are a couple of more which are also planned as a branded residence. You know in in same market. So so in general how how we do we differentiate with these products you know considering that we launched four and a half.
Speaker #2: We would have sold maybe 1,000, 1,500 crore this quarter. We still have good enough inventory there. So you know bringing a couple of more branded residences you know how does customers you know differentiate you know in terms of which one to prefer that way.
Speaker #2: So so yeah, that's my first question.
Speaker #3: So Pritesh, thanks for asking
Speaker #2: this. See, there is differentiating differentiation which is getting created. So differentiation in terms of the product offering, the the brand which is being offered, the size of units which is currently being offered.
Speaker #2: And the overall orientation of the project. You know so so there are multiple ways in which you know differentiation will get created the second project.
Speaker #2: Is very thoroughly being worked upon. So that you know it's it's clearly different from what you know we recently launched. We've achieved good sales.
Speaker #2: We've crossed 1,500 odd crores out of this particular launch itself. And it's not that you know we'll we're putting the rest of the inventory immediately into the market.
Speaker #2: You know some sales are happening even during the current quarter. But thereafter you know we may park some of the inventory and you know bring it up for sale in a subsequent manner.
Speaker #2: So there will be a clear product differentiation across the projects which are coming.
Speaker #3: Sure. And and how should we think about the monetization cycle now? You know obviously earlier earlier I would say I mean maybe two years, three years back it it used to take maybe just a quarter or two quarters to monetize everything.
Speaker #3: To offer you know with these branded residences. Now it should be you know a a a one year product or a two year monetization cycle.
Speaker #3: How should we think about or or how would our monetization strategy be you know in in that sense?
Speaker #2: So Pritesh would some of these projects the way we plan internally is that see a lot of these lands are typically owned already owned by us.
Speaker #2: And paid for. Right? So these are owned land parcels with very little level of debt in the company. So by and large you know these are paid for land parcels.
Speaker #2: Our development cost and SG&A cost do not cross you know 30 to 35 percent of the sale value for these projects. So anytime we are crossing let's say a 40 percent benchmark in terms of the number of units for each of these incremental launches you know the financial closure for each of these projects at a project level gets achieved.
Speaker #2: So our orientation of sales for these projects is that let's say we sell about give or take 50 percent of the project. Within you know three to six months of launch.
Speaker #2: And then you know you launch about 10 percent of the inventory on an annualized basis till the time the project goes for completion. So that you know you balance out on both you know quantum of sales, price appreciation.
Speaker #2: And anyways financial closure gets achieved right at the start. So so that's the broad split in terms of sales which we plan to offer in the market because when you get into you know this upper mid segment you know you it it's not a volume play anymore.
Speaker #2: You want to you know launch a good portion of that project at launch. But at the same time you know you want to you know show progression on the project as you achieve more sales.
Speaker #2: So we don't want to kind of you know achieve 100 percent sales like within a particular span of time.
Speaker #3: Sure. Perfect. That's that's helpful. And and second on on the collections. I think you know obviously it was quite weak versus our usual trend that we have have been maintaining since quite a few quarters now.
Speaker #3: So specific reasons for that. And in general see while our you know sales run rate in a quarter is two two and a half thousand crores since I mean 2000 ballpark in that range since quite some time.
Speaker #3: You know would we ever get to like 2000 crores in anything between 1,300 1,500 crore collections in a quarter is a is a good number to base this is your business plan that you have made in terms of collections.
Speaker #3: Yeah.
Speaker #2: So you're right that you know we are averaging around 2000 odd crores of you know pre-sales for for a few quarters now. I think even last year the best quarter was the first quarter where we achieved close to 2600 odd crores.
Speaker #2: But yeah we are averaging around this 20 billion mark in terms of pre-sales for few quarters. Which we believe you know is is kind of you know a fair number you know 2000 to 2500 odd crores of sales coming out of a particular quarter from by and large Gurgaon.
Speaker #2: You know which we've been achieving. And and that's where we think that you know at these numbers it's it's good kind of sales getting achieved.
Speaker #2: Collections yes this quarter was not was a bit of an aberration. We've been closing out on 1000 1100 odd crores of collections per quarter.
Speaker #2: I think we'll soon get back to that number. Even the coming quarter we expect it to be quite good. The reason of missing out this year was certain milestones you know with lumpy collections getting slipped into the coming quarter.
Speaker #2: And that's why you know the collection number stood at a mark where it is. But eventually yes to your point all the sales has to you know converge into collections on a quarterly basis.
Speaker #2: I can't give you a particular quarter where it's happening. You know Excel can speak a story which you want to narrate. But yeah all of this sales is going to definitely convert into collections.
Speaker #2: Because even if you look at the historical trend so if we've launched 23 million square foot over the last nine quarters the the GDV value of is close to 334 billion.
Speaker #2: We've achieved sales of let's say you know 230 240 billion has been achieved. So since first year supply then a sale and then of course it's collection.
Speaker #2: So we don't see any doubt around it.
Speaker #1: Ladies and gentlemen we have lost the last participant's line. We will moving we will be moving on to the next participant. The next question is from the line of Adhidev Chattopadhyay from ICICI Securities.
Speaker #1: Please go ahead.
Speaker #3: Yeah. Thank you for the opportunity. Just wanted to understand on the supply side now because of the geopolitical issues has there been any increase in the costs of the key raw materials or our finishing things?
Speaker #3: And when when next maybe on medium term do you see any cost expression in the projects for that? Just wanted to understand how this is how this is playing out.
Speaker #2: Yeah. So Adhidev even if we go you know almost a decade back and see the trend usually costs tend to go up in late single digits.
Speaker #2: You know you do an average of material and labor both. I think you'll see anywhere between 7 to 8 percent kind of escalation on cost which has happened over the last decade.
Speaker #2: So far we've not seen any inordinate increase in cost over the last you know quarter. And you know so we do always take you know this kind of escalation into our budgets when we are planning for it.
Speaker #2: So the 7 8 percent you know kind of cost escalation is something which one should budget you know over the over the coming years so to say.
Speaker #2: But by and large nothing nothing inordinate nothing very you know no no crazy spike on any particular you know key building product. So far.
Speaker #3: Okay. Okay. Okay. Secondly just to allude to the on a comments on exploring on our opportunity outside NCR we had also been mentioned this right.
Speaker #3: A few quarters back. So in terms of the margin and the projects which you want to do would it be similar to what we are doing in Gurgaon or this would be you're looking to get into maybe something ultra luxury or mid income or how is the what is what sort of products are you looking to get into in these markets in terms of tickets?
Speaker #2: You know ow preference is to do low rise developments more spread out developments because any new market which you get into you know the idea is not to pick up small 5 10 acre parcels and just you know work for that.
Speaker #2: The idea is to gain relevance in any of these markets where where we enter. Low rise is a good model because you know you enter and execute and you're able to show your delivery capability sooner in a new market.
Speaker #2: So while Gurgaon Delhi NCR people may know signature global. As we get into newer markets you know we for that brand recognition you know execution capability to be displaced displayed it's good to kind of you know do lower low rise developments and showcase that delivery capability at a good pace.
Speaker #2: So that's why the format we've we are opting for is larger format low rise developments definitely mid income focus neither affordable nor on the premium side.
Speaker #2: So more mid income you know developments in some of these newer markets.
Speaker #3: Sure. Sure. Sure. And finally on this yeah that's all from my side. Yeah. Thank you.
Speaker #2: Thank you Adhidev.
Speaker #1: Thank you. That was the last question for today. I now hand the conference over to the management for closing remarks. Over to you.
Speaker #4: Thanks. Thanks everyone. Thanks a lot.
Speaker #2: Thank you everyone.
Speaker #4: Thank ank you.
