Amit Kumar Sinha: Thanks, Sudhir. Hello, everybody. First of all, let me wish all of you happy Dussehra and happy Diwali in advance. Pleasure to speak to you with our results. I will start. Hopefully, you can see the presentation. On the screen you see one of our Chennai project, Lakewoods, which has finished another phase of the development. We have received OC. We have another four towers under construction and development. So you see two towers are sold out. Two are in the process of being in the sales mode. So a nice project. If you go forward. I think we just got RERA for Mahindra Rivenza. This is a project we have in Mahalunge. Why don't I play this video? Hopefully, you can see this from your screen. Just go ahead, please play this.
[Company Representative] (Mahindra Lifespace Developers): So when you first you seen this wonder being made. A world that follows. Hearts forever homes. A world that follows. No place like home. Experience positive energy at full swing. Mahindra Rivenza, home of positive energy.
Amit Kumar Sinha: This is our project. The exterior center is an outstanding project execution for you to get a sense of what the project is all going to be about. If you ever get to be in that part of Pune, please let us know. We love to host you. Coming to the business presentation. Again, this picture is for Mahindra BeaconHill. This is a 221-meter tower, and at the top we have a very nice club lounge, which hopefully will be the highlight of the project. We are executing on a well-defined strategy. I will not go into details of it too much. You have seen this before. It is almost three years since we put together this. I think in the next few days, we are going to fine-tune this a little bit more.
Amit Kumar Sinha: I think many of the things that we had planned in terms of ambition, we feel that we are well on track. GDV addition of INR 50,000 crore is something that we have already amassed. It is built on six principles, building blocks. Well-engineered portfolio choices. Four markets being Mumbai, Pune, Bengaluru. Focus on premium mid-premium segments. Exit from affordable. Similarly, very strong, robust BD pipeline. Focus on high quality, superior customer experience. We cannot forget the most important part of value chain is product execution. How do we do first time right, provide on-time delivery? How do we leverage standardization in design and specs? IC continues to be a bellwether for us. You have seen how this business has done well for us and given us the contribution towards the in-year profitability. All of this needs to keep in mind financial discipline.
Amit Kumar Sinha: These things are known to you, and they are also well supported by some of the other building blocks at the bottom, talent, culture, and using technologies. Our goal is to make sure that we have a multi-year track record of executing on all these building blocks and demonstrate a business that is scaling well because we are ensuring the adherence to these strategy elements. If you move forward. The key highlights for us is on the H1 side, residential, we are roughly INR 1,988 crore, close to INR 2,000 crore, 60% year-on-year growth. Successful launch of Rainforest, which is Bhandup. Some of you have visited and really liked the experience center. Mahindra BeaconHill, we launched. Good early successes. Again, the experience center is ready. We should be able to welcome you soon.
Amit Kumar Sinha: Citadel Phase C, we already had early two phases, and the Phase C has really taken off. Our sales have done really well. Sustained sales have contributed 40% of sales this time. We used to have a big part coming from launches. We are actively trying to have a portfolio that gives us good sustained sales. We have received RERA for the Mahalunge phase one, which is Rivenza, the video that you saw. Lakewoods picture that you saw on the very first slide. We continue to have a strong focus on execution. Our tier 1 contractors, we signed a large contract with another tier 1 contractor last quarter for Mahindra BeaconHill and Rainforest capacity. We have received, in the first half, OCs and a few others are in the pipeline, which will allow us to recognize both revenue and profitability.
Amit Kumar Sinha: Good momentum on the BD side, GDV addition of INR 7,100 crore, and the total continues to be at a healthy INR 50,000 crore. On the IC side, we have cleaned up some of the legacy OBL lands in MWC, and that is why you see a higher number of acreage and a slightly lower crore number because these are outside the boundary land, and the realization of those lands is much lower than what is inside our boundary for industrial park. H1 has been slightly lower than our expectation. The reason is some deals are in the pipeline that are about to complete. We should hear about those closures later this month. Definitely in this quarter, we will get a lot more conversion of the pipeline. We are accelerating the land aggregation in Origins Pune.
Amit Kumar Sinha: Financials-wise, I think the overall FY27 H1 consolidated residential and IC sales and revenue is INR 2,101 crores. PAT of INR 102 crores. Healthy residential collections in H1FY27, and then robust balance sheet with net debt to equity, which is negative. Very healthy cost of debt, 7.55%. Very good balance sheet from that point of view. I think the GDV story continues. As you can see, we have been able to maintain a very strong GDV, even though we are converting GDV in sales. You see the left-hand side is current inventory from the projects that have already been launched. Future phases of current phases. Citadel Commercial will be a tower that will be launching next financial year. Then a lot of pipeline projects that are pre-launch at this stage.
Amit Kumar Sinha: The color blue depicts the new addition that we have done so far in this year, H1 of this year. Sai Baba, we have added another society, roughly INR 1,000 crores. Chembur, we already had two societies in our INR 1,700. Another society of INR 500 has been added. You saw a greenfield acquisition of K2 in Kandivali, which is INR 5,600 crores. Overall, a strong, healthy portfolio of GDV, and we continuously look at the portfolio and look at how we can convert this portfolio into sales, as well as how do we augment this portfolio from good quality deals which are available in the market. I think I will just quickly cover this. I think maybe I will ask Vimlendra do you want to touch upon the recent two deals, Chembur 3 and Goregaon 3?
Vimalendra Singh: Yeah. Thanks, Amit. In Chembur, if you all remember, actually, we announced an acquisition last year. This is the Seema Society and Twinkle Stars Society. This is actually just 5 minutes from Diamond Garden, which is a major landmark in Chembur. So we had the opportunity to expand this particular cluster, and that is what we did. We got a small society, and we have done the requisite paperwork. Given that there is a proximity to the road, we have been able to get a higher GDV. Though the land parcel itself, as you can see, is very small.
Vimalendra Singh: But we are able to get a higher FSI given that it is actually on the road. So with that, the cluster becomes roughly INR 2,100 crores, and that gives us reasonable scale and size in that particular market. Similarly, as Amit mentioned, in Borivali, we have already announced we have this Sai Baba Borivali cluster. We had the opportunity to acquire one more society. We went through the process, and happy to say that we have successfully acquired that. The team is now working towards, say, how soon we can launch that particular project as well. But with that, again, we have roughly INR 2,800 crores of GDV in the Sai Baba Nagar micro market of Borivali, which is a fast-moving market and doing very well.
Vimalendra Singh: So these two also demonstrate that wherever we are present in society redevelopment space, we are looking to create larger clusters because that allows us to have efficiencies, economies of scale, and we can truly give a quality product to all our customers. That is the intent going forward. Kandivali is already spoken, so that is a greenfield project. Again, we are doing this right balance between redevelopment and greenfield, so that we can have a predictability of launches. As you are aware, greenfield is quicker to the market. Redevelopment takes a certain amount of time because of additional steps. But we are mindful of that, and we have done a good job, H1. We hope to continue the momentum in H2. Thanks, Nilen.
Amit Kumar Sinha: I think that if you look at the launches, our H1, roughly INR 1,988 crores reflect the sales from the first four on the right-hand side, Rainforest, Mahindra BeaconHill, Citadel Phase C, Lakewoods F and G. And Mahalunge RERA has just come through. So you will see the impact of Mahalunge in Q3, Q4. And then we are at the cusp of getting our approvals and P3 done for Sai Baba. IOD is already there. Navrat is similarly in the approval process, Navrat One. And then Vestera, again, is going through the DA and P3 process. So hopefully, we will be able to launch all of them that you see there, the three remaining, or at least two of them is something that we really expect to bring to the market in H2 of this year. I think you have seen this slide.
Amit Kumar Sinha: I think building a business requires us to fine-tuning our new launches and sustenance launch plan. FY28, as you have seen, K2 will play an important role, so it has been added there. Mulund is another one. And we are hoping as we look at FY28, a large number is to be coming from sustenance, which is something that we really are looking forward to. If we launch some of those projects this year, they become sustenance for next year. We are hoping to see a lot more launches coming from sustenance. FY29 to FY30 are reflecting the current pipeline. Let us hope that we augment that a little bit more as we have a very healthy business development pipeline. In the past, some of you asked, "Are we going to slow down in our business development effort?" The answer is no.
Amit Kumar Sinha: The land prices have run up quite a lot, so we are very careful with any kind of business development. We want to make sure those are strategic locations. They make sense to our existing strategy, existing and future strategy. And then financially, we are not taking any risk given the slight slowdown in the market in terms of velocity. The value makes it up. So the values have gone up, the pricing makes it up. But overall, there is slight slowdown in the velocity side. But post US-Iran war, I think the costs have also gone up a tiny little bit. And that tiny little bit adds up if you look at all the projects across all the years, across all the commodities. So to ensure that we reflect the market sentiment, we need to make sure that each and every project meets our financial guardrails.
Amit Kumar Sinha: And that is something that we avoid to dilute, even in any strategic project. It has to make strategic sense, and it has to make economic sense. That is our plan. I think IC&IC business is something that is, as I said, had done well. I think H1 of this year is a little bit muted. But we do have committed deals which we are expecting to close in H2, and a big part ideally should come from Q3 itself. I think Vikram is right here. He is shaking his head that he will make sure that that happens. But I think we are quite excited about this business, which has done well for us. And then this you have seen. I think a good amount of land opportunity, but we are also now taking a 10-year look at our IC business.
Amit Kumar Sinha: I think a lot of financial rewards are coming from land parcel that acquired 20 years back or 10 years back. But I think the time is ripe for us to ensure that we bring to market the bottom two Origins Ahmedabad and Origins Pune where land acquisition is going on. I think a lot of work has happened. Some more work required for Origins from a commercial point of view, and then we have to get ahead with some additional approvals. Origins Pune, I think it will take a year or two for us to get the contiguity of land completed. I will hand over to
Amit Kumar Sinha: Sriram, for these financial highlights.
Sriram Kumar: Thanks so much. On the financial highlights, just wanted to capture a few points. On the residential side, we did about INR 1,988 crores of pre-sales in H1 FY27, which is a 66% year-on-year growth. On the IC side, while the revenues were a little muted, primarily because of the lower leasing activity, the expectation is it will catch up in H2. On the GDV side, we did about INR 7,100 crores as against INR 5,200 crores last year in the first half. And, as you would recollect, that we did about INR 18,000 crores last year, and we are working towards it. On the residential collections side, we did about INR 1,152 crores. Some of the billing milestones and the launches collections are stacked up towards the end of September. So you would see that collections picking up in Q3 of this year.
Sriram Kumar: On the net debt to equity side, we are at a healthy level at -0.28, with a cost of debt at 7.55%, despite all the disruptions on the macro factors impacting the interest rates. Moving on, the segment-wise results. As we can see that the PAT for the H1 of the year is about INR 102 crores, as against INR 99 crores in the H1 last year. Resi and IC were equally represented in this H1. INR 56 crores for Resi PAT and INR 46 for IC business. The couple of points to highlight here is we were able to get some cost savings from our existing projects, where we have already received OCs for more than six months. We were able to realize the cost savings in H1 FY27 on the residential side.
Sriram Kumar: On the IC side, we also had profits from sale of our stake in Ample Parks, which got reflected here. Overall strong performance financially, from both the residential and the IC side. Moving on. On the free cash flow side, we were at INR 341 crores of operating cash for H1. Again, given the collections are expected to come up in Q3, you would see that the operating cash flow pick up in H2. As far as the land outflows is concerned, we had spent about INR 332 crores in the H1 of the year. With a healthy closing cash balance system wide at INR 1,036 crores. From a project breakdown perspective, we have an estimated cash flow of roughly about INR 15,280 crores overall. This includes our existing ongoing projects, future phases of current projects, and also the pipeline projects to be launched.
Sriram Kumar: This doesn't include Jaipur and Murud, which are included in our GDV but not forming part of the cash flows, as we are still working on the business cases for those. Thane is included, and we are expecting INR 15,000 crores of cash flow to happen over the next few years as our existing projects take shape. On the financials consolidated P&L side, we covered it briefly earlier on the segment results. Overall, INR 102 crores of PAT for H1, INR 16 crores of PAT in Q2, and INR 86 crores in Q1. For the full year last year, we did about INR 298 crores of PAT. On the balance sheet side, no material movement. A couple of things to highlight. Our cash position remains robust. Our borrowings, we have been steady at the INR 600 crore level, which includes the ICDs from M&M.
Sriram Kumar: Also on the inventory side, these changes reflects the new projects that were sort of brought in during the quarter and during the H1 of the year. Overall, the balance sheet reflects a healthy position with a net worth of around INR 3,600 crores.
Amit Kumar Sinha: That is it, I think. Thank you, Sriram. I think it is very helpful. I just want to highlight two very small things, that you saw 300 odd crores of cash outflow for land acquisitions. The K2 transaction closure happened last week, which was another INR 400 crore.
Sriram Kumar: Right.
Amit Kumar Sinha: That happened in Q3 technically, but that is something we have already spent in this year. So it is closer to
Sriram Kumar: 700
Amit Kumar Sinha: INR 750 odd rather than INR 300. Given our desire to scale the business, that will continue to be a primary focus for us. Second is a subtle point, I think we have been very conservative in terms of delaying recognizing the savings for the project for which we received OC 6 months ago. I think that we cannot change the economics of those projects which were previous financial year, but it reflects the strength of our operations where we have been very consistent in terms of recognizing revenue and PAT, which is conservative. Then we have additional PAT coming because we released the savings that were there, but we waited 6 months out after those savings. So that may show as a different line item, but it is actually operating income from business residential. Those are two small things.
Amit Kumar Sinha: I think I just want to underscore straight on, Matthew, as you highlighted.
Vimalendra Singh: Thanks.
Amit Kumar Sinha: Yeah. Good. Today we should open up for questions, right?
[Company Representative] (Mahindra Lifespace Developers): The first few questions are from Parikshit.
Amit Kumar Sinha: Yeah.
[Company Representative] (Mahindra Lifespace Developers): Few questions are for residential and few are for industrial. I will start with the residential first. What are the business development plans for the rest of the year after INR 7,100 crore of GDV for this H1? What is likely launch of GDV for Q3 FY27 with robust H1 FY27 releases? Do you think it is possible to achieve higher end for the financial year 2027?
Amit Kumar Sinha: Let me take the BD question and Vemlath you can take the sales question. Right? Those are the two questions. I think, Parikshit, you have been watching our journey from a close range, and we have learned quite a lot from your perspective. Thank you for this question. I think from a BD perspective, I think we want to maintain the momentum. I think our key objective has been to achieve a INR 10,000 crore pre-sales target, which we think we are well on the way. There will be some high growth years, some moderate growth years. I think this year I am hoping it will be a higher growth year for us. We were INR 3,400 crore last year, FY26. I am hoping it will be a healthy growth year this year, healthier growth year. We do not want a situation where we are starting to deplete heavily from our GDV.
Amit Kumar Sinha: We will continue to add more to the GDV. But we are absolutely careful given the market there is and the land prices. They are a little bit out of sync as of now. The land prices expectation are still high, but the market economics may be slightly lower from a sentiment point of view, from a cost point of view. So we are doing very careful assessment of the pipeline. Over cost, under price, as we look at our business development pipeline to make sure that those deals will work. If those deals work with those strong hurdles, we will take those deals. We do not have a challenge of number of deals. It is a question of taking the best deals, deploying our capital to those best deals, and making sure that we are able to launch them at the earliest.
Amit Kumar Sinha: I think last time we spoke, I had given a number of anything between INR 10,000 to INR 20,000 is something that we will do. We have done INR 7,100 in the H1. So I think we will definitely be falling in that range, ideally on the higher side rather than the lower side. That is a quick response to your BD question. I think the second question was on sales. How do you convert BD into sales?
Vimalendra Singh: Yes. Thank you, Amit. Hi, Parikshit. On sales, as was covered in the presentation earlier, we have got the RERA for Mahalunge, which is our Pune project, and the market activity has started. So we are looking to meet somewhere in the H1 of December. That is one conversion. There are three more projects we are hoping to get the approvals. One is the two are redevelopment and one is greenfield. The redevelopment ones are one is in Borivali, the other one is in Santacruz. We are as we speak. We are going through the PPA process. Hopefully we should be able to bring that to the market in H2. There is one greenfield project in Bengaluru where also the approval process is going on. That also we should be able to launch in H2.
Vimalendra Singh: With these four projects, I think, the guidance that Amit has actually given earlier to the market, we should be able to reach that guidance numbers, right? We had close to INR 2,000 crore in H1. We are hoping that with these launches plus the sustenance, the inventory which is available with us, we should be having a good H2. That is how the team is gearing up. That is how we are thinking. I hope that answers your question. I think we are on a good wicket. We are playing very carefully in terms of, as Amit said, the new acquisitions. We are also working in a very disciplined way to ensure that we actually maximize sustenance sales. What is happening is as the market stabilizes, steadies further, what is going to be very important is that how well you are able to execute on sustenance.
Vimalendra Singh: Because that is a low decibel kind of an activity, but it requires a lot of discipline of execution, and it requires the right allocation of sales expenses as well. We are in H1 at 41% in terms of sustenance sales as a percentage of overall sales. We want to continue to work on that space. Of course, we expect to get good highs from the launches as well. I hope that answers your question, Parikshit.
[Company Representative] (Mahindra Lifespace Developers): There is one more question on residential from Parikshit. Any update in approval status of Thane likely launch?
Vimalendra Singh: Well, we are looking to bring Thane to the market in the next fiscal year. I will not be able to comment on which quarter, but let me tell you that the work is going on full swing with respect to the design and certain preliminary approvals which are needed. We are in good space as we speak. We will get back to you with more details as and when we make the progress.
[Company Representative] (Mahindra Lifespace Developers): Okay. Next question is on industrial from Parikshit. Industrial parks, can you update us status on Chennai, Ahmedabad, Jaipur and Pune? Is there de-notification in Jaipur, Pune and likely launches?
Amit Kumar Sinha: I think they are all in different stages. I think Pune, as I explained, is still aggregation and contiguity is our priority. We will start applying for approvals when the aggregation is at a critical mass where there is all the access contiguity as well as land parcel contiguity. Ahmedabad, I think there is no issue with land aggregation. We are trying to secure some special power and water approvals, which are on top approvals that we already received. Given Gujarat is a different market. They have also announced a data center policy. We believe that our location could be appealing to some of those clients. So that is going on. With respect to Jaipur, I think the progress on SEZ de-notification, we are working with the state government. The efforts are already underway.
Amit Kumar Sinha: We expect to get some clearance from the state government soon so that we can go through center for the final approval. So that is where we are. In terms of OC 1, Origins Chennai with Sumitomo, OC 1 has all the approvals. OC 2A has all the approval. OC 2B, we are again finishing some amount of aggregation before we apply for the launch. We expect that whole process to take 9 to 12 months after all the aggregation have been done. So that is the quick status of our industrial assets.
[Company Representative] (Mahindra Lifespace Developers): The next question is from Trish Bhatia from Anand Rathi. H1 residential pre-sales are already at INR 188 crore. How should we think about the H2 run rate, particularly with Mahalunge, Sai Baba, Navrat, and Westerra, which are expected to get launch in the next half year? Could you give us update on the launch readiness of Sai Baba, Navrat, and Westerra?
Amit Kumar Sinha: Yeah. I think I will give the first part and then Vimlendra, you can jump in with the I think the first part is, we have given a guidance for this financial year of INR 4,500 crore to INR 5,000 crore, somewhere between there. So pick a midpoint, maybe INR 4,750 crore, is something that we will target. And of the remaining four which are not captured, Rivenza, which is Mahalunge, the approval has come, RERA, and it is in the EOI and launch phase. The other three are in the pipeline. I will let Vimlendra comment on expected timeline. Maybe at a Q3, Q4 level, you can share.
Vimalendra Singh: Yeah. On Sai Baba, Westerra, and Navrat, you asked specifically when Westerra and Sai Baba are both redevelopment projects. As I mentioned earlier, we are going through the PAAA process. We have to go through these mandatory processes. Sai Baba is a fairly large project for us, where the number of tenants are very high. It is basically six societies. We are working through it. We hope to be able to get the requisite approvals also by the end of Q3 or latest by mid of Q4. We are definitely targeting for launching as early as possible. Similarly, for Westerra, I think we are targeting end of this coming quarter. So Q3 end is when we should be able to get a significant amount of approvals. Navrat is greenfield, so we are going through the approval process there as well.
Vimalendra Singh: There may be a certain amount of bunching of all these projects when we launch.
[Company Representative] (Mahindra Lifespace Developers): Next question is, can you help us understand the traction in new launches like Rainforest, BeaconHill, Citadel?
Vimalendra Singh: Common questions, which are. In terms of the new launches that we have done, we have seen actually very good traction. I am very happy to inform you, one is the velocity, the other is APR, which is a price realization. Across all these projects, I think we have commanded a price premium in the market, while actually not compromising on the velocity. In terms of Rainforest, when we launched, we had done close to INR 600 crores, and now it is in the sustenance phase, which is also very healthy. Similarly, in terms of Citadel Phase C is actually a phase launch. It is not a new project. We had already done two earlier phases there. So this was the third phase, and again, the product has been received very well, at a price which is slightly higher than the micro market.
Vimalendra Singh: BeaconHill, again, our re-entry into the South Mumbai market, as we had said earlier in the past. We have done well. In terms of specific numbers, we will be close to INR 300 crores. But again, as I said earlier, we are at a price point which is significantly healthier than the micro market, and we want to continue it that way, given that it is a single tower with limited inventory. We really want to make that address in that particular micro market. We are seeing good traction.
Vimalendra Singh: Now in the sustenance phase also, we are getting a lot of inquiries. All the projects have done well, both in launches and in sustenance.
[Company Representative] (Mahindra Lifespace Developers): Yes. The next question is: the current INR 15,300 net cash flow assumption on INR 50,000 per GDV also include land costs we are spending on the outright projects like K2 and others.
Sriram Kumar: I will take this. This is INR 15,300 crores is the cash flows from our existing projects from hereon. Whatever CapEx is already incurred, it is not taken into account. It is after that.
Amit Kumar Sinha: It is already taken.
Sriram Kumar: Yeah.
Amit Kumar Sinha: It is already
Sriram Kumar: It is already spent. So INR 15,300 is the cash flow from hereon, which we will expect over the years from our projects.
Amit Kumar Sinha: Let me just put it, I think Sriram, maybe just want to clarify. So from INR 15,300 crore, there is no other spend towards land. The land spend has already been taken into account. Okay?
Sriram Kumar: For outright.
Amit Kumar Sinha: This is a net cash flow that we will get, right? So collections minus construction spend, minus some of the other spend to support that from an overhead perspective. That is what, right?
[Company Representative] (Mahindra Lifespace Developers): Yeah. The next question is, on the redevelopment projects, why Sai Baba phase 1 and phase 2 launches are in FY27 and FY28? Why is the Chembur project getting launched in FY29 while we acquired it in FY27? The next question is, normally what is the timeline to launch society redevelopment projects after signing the deals?
Vimalendra Singh: Okay, I will take that, Amit. Let me share a happy news in terms of Chembur. We have actually concluded the development agreement and we have registered it. While we had shown FY29 earlier, we are working very hard to actually prepone that project. We will actually let you know the exact time once we are significantly ahead in the approval process. But definitely working to see if we can expedite that.
Amit Kumar Sinha: I think just to clarify, this reflects Seema and Twinkle Star. That is INR 1,700 crore. It does not reflect the latest acquisition of INR 500 crore, right? The good news is for Seema and Twinkle Star, the DA has been signed, right?
Amit Kumar Sinha: Executed.
Amit Kumar Sinha: Executed. What that means is the next critical step is for us to do the detailed design as well as all the PAAA process with the residents, and that process will take a few months. It is a mid-size society. It is not too big, it is not too small. So just the time taken. We typically take anywhere from 6 to 12 months, and I think we are working hard to accelerate from 2029 to 2028, and that is the challenge Vimlendra and his team has taken up. How do we move some of the 2029 society renewal to 2028 in our efforts? The next question is, there is a reversal of INR 25 crore in the revenues. It is for which projects, and it is booked in other income?
Sriram Kumar: Yeah, I will take this one. I think as Amit explained, this is the cost savings.
Amit Kumar Sinha: Reversal of cost is what.
Sriram Kumar: Cost.
Amit Kumar Sinha: Okay.
Sriram Kumar: Yeah. So this is the cost savings we realized from our existing projects. There was not one particular project. We had a few projects like Tathawade, Nestalgia, Eden, Luminare, and Vicino, where the OCs have been received for more than six months, and we were able to recognize the cost savings from that project, and we waited for six months before we took that.
Amit Kumar Sinha: Yeah. As I explained, we have been very conservative because we waited OC, all kinds of settlement with all kind of contractors, all payments made, and this is after all that and six months. I think maybe ultra-conservative, but I think it is a good way to ensure that we show the savings only when all costs are actually taken into account. That is what we have done.
[Company Representative] (Mahindra Lifespace Developers): Can you please put some light on the launch of the Santacruz West project?
Vimalendra Singh: The Westerra project in Santacruz. It is a great location, firstly. As I mentioned earlier also to other questions, we have received the IOD. At this point, we are going through the PAA process. After that, typically in a redevelopment project, what happens is after PAA, they will have to vacate, then demolition, and then the CC. So we are working hard to see if we can actually bring it to the market in the next two to three months. So that is the current status.
[Company Representative] (Mahindra Lifespace Developers): Next question is for industrial. The question is, though we have sold 38.9 acres versus 35.6 acres in H1 last year, but sales revenue are down 50% in the same period from INR 209 crores to INR 103 crores, whether the realization per acre has been dropped.
Sriram Kumar: Yes, I will take this. Yes, the area sold is 38.9 versus 35.6. But what we sold in the first half this year is OBL lands, and these OBL lands are outside boundary lands, and their realization tends to be lower compared to our regular industrial lands that we sell in Mahindra World City, Chennai. You would see that primarily because OBL lands were sold in this first half. The realization appears to be lower, but it is actually not the case.
Amit Kumar Sinha: How much is OBL land?
Sriram Kumar: 34 acres. Roughly out of the 35.6 acres, 34 acres was OBL land where the realization was lower. In fact, actually kudos to the team for actually cleaning up the land and bringing it to the market. This has been in the works for quite some time, and the team was very able to basically bring it onto the market and execute a transaction during the first half.
[Company Representative] (Mahindra Lifespace Developers): The next question is, can you tell us the synergies between the Mahindra Holidays and Lifespace as they are coming under the same umbrella? Can Lifespace build the properties needed for Holidays?
Amit Kumar Sinha: I think, so I am still in the process of moving to Mahindra Holidays. There are some synergies, some opportunities, but we will have to look at them very carefully. I would like to highlight three areas. The first is a functional synergy. Functional meaning, how do we actually benefit from scale on both sides? Like, if you are doing project together, can we have purchase synergies? Can we have contractor synergy? Can we have other kinds of approval synergies that are across both sides? I think that will show improvement in cost, improvement in time, hopefully improvement in customer experience. The second is from a business point of view, right? I think there are two or three areas where it could be relevant for us. Could be, let us say, senior living, which we are starting to look at in a serious way.
Amit Kumar Sinha: As you can anticipate, Mahindra Lifespaces would be very good from a development point of view. But the senior living requires a good amount of services aspect, so Mahindra Holidays would be quite relevant. So we are trying to build a team, a business in which both of them can coexist. That is a great example of synergies on the business side. Another example is service villas, where I think if you go to a little bit outside the urban locations where Mahindra Lifespaces is playing and we are able to secure a location that is good for second home, villas, but also good from a resort point of view. So we have to find those locations. Our desire is to create a community where there will be a resort, and there will be service villas surrounding those, which can very well be managed by the resort service team.
Amit Kumar Sinha: That is very important because when you buy a second home or a villa, service villa, one of the challenges, who is going to take care of it if you are not going to be using, like as a first home? The maintenance, caretaker, all that is something that requires careful service levels. That is where I think Mahindra Holidays would actually be very relevant. And third and final part which we are looking at is from a branded residences point of view. As you know, the high end of the market continues to be healthy. Branded residence means you will be able to develop very high-quality residences, but those residences demand high-quality services, hospitality kind of services, which is where Mahindra Hospitality is also quite strong. Mahindra Holidays has also launched the Mahindra Signature Resorts, which is highest level of service for non-members, for regular guests.
Amit Kumar Sinha: I think that kind of service level can be brought only in branded residences. Mahindra Lifespaces, while we are evaluating this at this stage, and given our Pininfarina sister company, there might be opportunities for leverage more of the group, not just Holidays. These are three examples. It does not specifically include construction from Mahindra Holidays because their resorts, their assets are located in very different locations than the urban centers of Mumbai, Pune, Bangalore, where we are focused. They may be looking at maybe Jaipur, where we have decent amount of land. There could be small synergies there, but our synergies will not be built on going to far-flung areas and helping construct those resorts at this time. That is my quick summary, and it will develop as I spend more time in the business.
Amit Kumar Sinha: We have a lot of strong capabilities on the Mahindra Lifespaces side, especially project execution, procurement, which is my first point on functional synergies. That is something we really think will help improve, not only Holidays, but also I am sure we will learn many things along the way at Lifespaces.
[Company Representative] (Mahindra Lifespace Developers): The next question is, you previously mentioned that sales velocity is slowing down. Can you expand on this comment and talk about the demand across our micro markets?
Amit Kumar Sinha: Well, let me just give some points, and Vimlendra, you can jump in. I think this business is the highest spend category. It gets a lot driven by the overall sentiment. Sentiments related to war, jobs are critical. Financial markets, very critical. I think some of them have been subdued for the last few months. The AI impact on jobs, the war impact on sentiments, and the slow financial markets because FPIs have moved out. The rupee issue tends to be a major one. I think these have affected the sentiment. So we see slight slowdown in the walk-ins. Now it takes more efforts to convert. That is what we are seeing. But we are actually being cautious about this time of the market. As you know, our brand attracts a lot of customers.
Amit Kumar Sinha: It helps to create a pull from the customers, and we are able to demonstrate a high-quality value proposition to our customer. That is reflected in the overall pre-sales for H1 so far. We are also making sure that we are disciplined about pricing. To artificially inflate velocity, we will have to give higher discounts or make payment terms or pricing more attractive. That is something we are loath to it. I think we have a strong product value proposition, great locations, and we think that we should price the product appropriately, not chase velocity at this time of the market cycle.
Amit Kumar Sinha: I think that is helping us in Mumbai, Pune, Bengaluru. While the inventory overhang has gone up somewhat, we feel that we are able to find the right customers who are ready to pay for the products and services that we offer, and that is why you are seeing a strong H1 for us, which is healthy growth over the previous financial year. We will maintain this balanced perspective on velocity and price and discount, and continue to demonstrate our value to the customers. Sunand, do you want to add anything?
Vimalendra Singh: Thanks, Amit. I think you have covered it. Just a couple of points. I just want to give a color to this particular question. One is, while the sales velocity or, say, the absolute numbers are moderating, what is happening is the corporate developers or the branded developers are actually still continuing to be in the market share. What is happening is, this growth, say, in the prominent places, coming at the expense of tier 2, tier 3 developers. I think that phenomena, which started quite some time back, is expected to accelerate as the market consolidates. So that is number 1. Number 2, as Amit said, there is no point in artificially chasing velocity, right? Because at the end of the day, every business has to be run very well profitably.
Vimalendra Singh: What we are doing and what we are focusing on is how do we get more walk-ins to our sites, which is actually talking about saying that, "Hey, our products are good, great. The locations are amazing. They are close to any transport corridor." If you see, a lot of our projects either are very close to metro stations or highways or the local train stations, right? So we are working on this, and the expectation is that we will continue to see good traction as the overall market continues to moderate. From that perspective, not really worried about the general slowdown, because if you are able to execute well on, say, sales and the product and when we do a good BD generation, we will be in good place.
[Company Representative] (Mahindra Lifespace Developers): There is one last question. It is for IC business. The question is, expected cash flow potential over the next five years for IC business.
Amit Kumar Sinha: Well, if you look at the numbers, I think there was a slide which represented. Over the next 10 years, I think the total potential of the business is about INR 1,500 crores, and that has a PAT of about INR 150 to INR 200 crores in total, which is coming each year. My sense is, if you look at about five years from here, you are talking about total number of about INR 750 to about INR 800 crores, which might come in as the numbers which we have. The momentum is very good, and this continues to solve. Looks good in both in Chennai and Jaipur, the demand will continue to be healthy.
[Company Representative] (Mahindra Lifespace Developers): Yeah, this is all about the questions.
Amit Kumar Sinha: Great. With your permission, I think I will take the opportunity to wrap up. I think we are three years into our multi-year growth journey. As you have seen, there are many parts of the business that have done well. I think GDV has been very solid. IC business has done really well for us. The residential pre-sales, as you can see, is now really starting to demonstrate a high growth trajectory. The financial discipline that we have exercised in our business development continues to be there. Reversing cost is just an example of how we are able to execute well and deliver the cost that we have planned for in some of the projects. As more and more OCs come, we will be able to demonstrate the execution acumen in our operations.
Amit Kumar Sinha: As you know, this business is all about making sure that you find the right location, right land parcel, sell well. A land to launch should be strong. Then execute really in efficient manner to convert sales into profitability. I think we feel good about where we are. I think lot of work for us to do, but we are hoping that this year we are able to get to a point where we are seen as challenger to some of the other established players. Hopefully, that will start opportunities for us to do even more in the focus set of markets. Thanks for all your support. We are here for any follow-up questions that you might have among this group. You got us well covered. Please let us know, and we are happy to follow for any clarification, any question that you might have.
[Company Representative] (Mahindra Lifespace Developers): Thank you everyone for joining this call. We are ending this call now.
Amit Kumar Sinha: Thank you.
[Company Representative] (Mahindra Lifespace Developers): Thank you.
