Thank you for the opportunity. So, this year we are targeting close to 3,000 crores launches and also we have 700 crores of ongoing inventory. So, what kind of pre-sales number we are looking from the launch pipeline and also from the ongoing inventory in this financial year?

Dhananjay, the new launches that we are talking about, that is about 3,000 crores during this financial year. So, we expect about 500 crores of pre-sales from these projects and from the ongoing projects, we expect about 500 crores of the pre-sales in balanced financial year, you know, which is the unsold value as of 30th June is about 700 crores.

Because last year we did about 900 crores and so I thought, you know, last year despite not having any launches, we did about 900 crores and this year we are planning close to 3,000 crores. So, I was just assuming that this launch pipeline itself will contribute close to 25-30% of the launches.

So, we understand that projects are a brief delay for the launch but we expect to generate these 1,000 crores of the pre-sales revenue this time.

But next year number will be much better, right?

Yeah, yeah, obviously. Obviously, next year we plan to launch Filmistan as well as two more projects. So, next year obviously it will be better.

And secondly, in terms of EBITDA margin, I mean, which is obviously given the reason that you have recruited employees and that is the reason it has come down. But going ahead, because we will be launching this outright project, so what kind of EBITDA margin we should look at? Because earlier we used to do 26-27%, now it has come down below 20%. What is the realistic EBITDA margin we should model?

So, Mr. Dhananjay, if you see the gross margin, it has remained stable at 29%, you know. So, EBITDA margin, this is basically because of the lower other income and bit higher employee costs. So, that's why it is at lower level. But we expect to maintain EBITDA margin of about 25- 26% over the year.

And lastly, in terms of overall cash inflow for the next 4-5 years, like we have, if we consider the upcoming projects of those 12800 crores and unsold collections of 1200 crores so 14000 collections, likewise, what could be the outflow in terms of the production cost and approval cost and all marketing costs? So, what kind of cash flow you are envisaging from the overall project portfolio?

So, we expect to generate, as we have been telling all time, we expect to generate about 18- 19% of PAT, you know. So, that will transit into the cash flow.

Yeah, yeah. EBITDA level, we are looking at 25-26%.

Okay. And in terms of BD side, are you looking for more equities in this year or this year we will only focus on launches?

No, so, the BD team is always active in, the launch team is different and the BD team is different. So, they keep, the BD team is always on the lookout for future opportunities, you know, and the launch team is separate. So, it's very cyclical, like we keep on looking. Redevelopment is not capital intensive. So, that is one area which is always on.

Okay, thank you. That is all from my side.

Thank you. The next question comes from the line of Kedar with NAN Partners. Please go ahead.

Thank you, sir, for the opportunity. Sir, I had one question on your Anand Nagar project. So, I can see that you have mentioned FY29 as the expected launch timeline. But my question is that it's one of the top three in terms of our GDV in the portfolio. So, why are we not planning to launch it earlier? Are you, is it a deliberate strategy or is there some delays you are facing in that project?

No, there is no delay. We were organically and originally planned only in FY29 because there is some restriction ongoing currently. There is a wireless station currently in Dahisar because of which there is height restriction in terms, on approval front. This wireless station is to be shifted to Madh Marve. Okay. So, after the wireless station is shifted to Madh Marve, only then they will start giving approvals for taller buildings. So, that is why the deferment. when it was acquired only was acquired with a forward-looking view.

Okay, sir, understood. So, you foresee that by FY29, those approvals

Yeah, yeah. So, we are expecting the wireless station to be shifted in FY27. And in FY28, we plan to get approvals and launch it in FY29. The work is already going on for shifting. Okay.

Okay, but there is no in terms of the society and all, I mean you have, everyone is…

No, we have already entered into writing with the society. We have an MOU with the society.

Understood. Yeah. Thank you, sir. That's all from my side.

Hi. So, I wanted to understand in your message you have written that we are expecting accelerated growth over the coming quarters of this year. So, would you quantify that? What does accelerated growth really mean for the rest of the year?

So, with the launch of 3000 crores in itself is something which is much more than what we have ever touched, you know, until now in a single financial year. So, the launches in the past may not have been more than 1500 crores in one financial year. Now, a shift from 1500 crores to 3000 crores which is a 100% growth is definitely qualifying for the word accelerated growth.

Got it.

And next year also we are like banking on a 5000 crore plus launch. So, all these numbers shift from say 1500 to 3000, 3000 to 5000 crore launches. These are good growth. Like these are you can spike in growth.

Got it. Got it. Understood. And the other services, right, that we provide like the facility management, are these services specific to only Arkade? Like are you like monetizing it? Like if you could just shed some light on how are these other services like contributing to the revenue?

So, the home loan division that is Finroof is not restricted to Arkade projects as in we have the loans and we are open to doing loans for projects other than Arkade as well and it does get revenue in terms of commission payouts and it is a very healthy business as of now making money for the company. The 360 division that is the facility management is currently catering to only Arkade projects which are completed recently and they are looking after the upkeep of the project, the Arkade project only.

Okay. Got it. Great. That's all from me. Thank you.

Thank you. The next question comes from the line of Rohit, an individual investor. Please go ahead.

Yes. Thank you for the opportunity. I had first question regarding the launch pipeline. So, how much of the launch pipeline has been already secured in terms of approvals and execution readiness?

So, it is all at various stages. You know, it is like a domino kind of thing. The BD starts first and after which follows the approval, and after which follows the launch and the construction execution. So, all the projects are at various stages. It is like one after the other. It is not all simultaneously. As mentioned, we are having a visibility of around 12,800 crore projects lined up and another project equivalent amount are in the nascent stage of being acquired, like are in the stages where we have LOIs and all issued by societies for redevelopment. But including the unsold inventory of around 1,000 crores plus and new launches of 11,000 crore, there is a

clear visibility of 12,000 worth of projects getting launched in near future plus a separate pipeline of projects which are being acquired.

okay, Second question I had regarding the project launches. Have there been any delays over there and if so, can you tell me what is the expected timeline over there?

So, third quarter of this financial year, we are launching a redevelopment project in Malad this having a topline of around 750 crore and last quarter of this financial year, we are launching Thane project. Both are in pretty certain stages of now. The Thane project is having sale potential of around 2,000 crore and we have already launched a project in Santa Cruz last quarter. So, all three projects combined have a sale potential of 3,000 crore.

And I also wanted to know, are you witnessing any moderation in maybe customer enquiries or pricing or conversion across the key markets that you are present in?

So, last quarter as mentioned, we have seen a growth of around 9-10% in pre-sales which does not indicate to any slowdown as such and we have managed to sell more than what we did in the preceding year quarter on quarter basis. It is better.

Okay. That's all from my side. Thank you

Thank you. The next question comes from the line of Rahul Shah with Eternal Capital. Please go ahead.

Yeah. Hi. So, thank you so much for the opportunity. Just wanted to get an understanding. So, how is the company managing the construction cost inflation and specifically within that Labour material cost across the ongoing projects?

So, normally construction cost inflation is absorbed by the incremental rate in the residential units, you know, and it balances out. Normally, that's what happens.

Okay. Understood. And will the company require any incremental debt or equity funding to support its planned projects, acquisitions and launches in the near term or at least the medium term, let's say 3-4 years?

So, we may look at construction finance like all the projects, the outright projects are already paid for. We are currently at almost net debt and if required, we will opt for construction finances which is coming at a much lesser interest rate and which is normally very healthy and sustainable.

We are open to newer markets. We are open to a wider range of avenues and we are in the process of getting new and new projects in new geographies. We are building projects in South Mumbai as well with bigger ticket sizes and we are hopeful of lining up new projects.

Okay. That answers my question. Thank you so much.

Thank you. The next question comes from the line of Soham Joshi, an individual investor. Please go ahead.

Hi, sir. Thank you for giving me the opportunity. Actually, I just wanted to ask that given the current competitive landscape in Mumbai, have you seen an increase in land acquisition costs? Any impact on the ongoing project economies?

We are very disciplined and we are very stringent in our acquisition. We don't get into fancy acquisitions and we get into value transactions which have a healthy margin and it sustains. We don't get into fancy acquisitions.

Okay, sir. As you said, you don't get into much of the fancy acquisitions. So, how does the management balance things between redevelopment projects, outright land acquisitions, JV opportunities? How will it be going forward?

The role is divided among the management. Redevelopment, outright, JDAs and all that. Each one focuses into what is their role and responsibility which is very clear and good for the company.

Okay, sir. My last question would be that when you are evaluating new opportunities, new projects to take on, what kind of IRR or the margin set hold to the company?

We are going against an IRR of 20% or around and that is what we are looking forward to as well. 20% plus. That is what our historic growth has been.

Okay, sir. Thank you. That's all from my side. Thank you.

Thank you. The next question comes from the line of Gaurav Patil, an individual investor. Please go ahead.

Thanks for the opportunity, sir. Sir, my question is on the front of FY27 Pre-Sales Outlook. So, in one of your answers, you mentioned that this year we are targeting close to 500 crores of pre-sales from the new launches of this year. So, why is the pre-sales outlook remain a little bit flattish despite of 3,000 crores of fresh launches being done this year?

So, 3,000 crores of projects will be completed over a period of 4 years on an average. So, that gets us a pre-sales of on an average 750 crores per year. And these projects being launched in

the third and fourth quarter, we are not getting the complete calendar year. That is why we have targeted a reasonable figure of 500 crores from two launches.

So, in general, sir, across our historical projects, how much pre-sales do we expect on the launch phase only, sir? And how much remains on the sustenance and on the completion front?

So, you can expect at an around 20% sales upon launch. So, out of 3,000 that goes to 600 crores. And because we are not getting the full year out, maybe conservatively we are giving an indication of 500 crores.

Okay, sir. And sir, my next question is on the land cost, sir. Generally, for example, if any of the project is having 100 crores of GDV, so how much of this, basically land acquisition cost, how much remains for us for that XYZ project?

So, I think it is, it will always keep on varying, you know. Higher the cap, this ticket size, more will be the percentage towards the land cost. In South Mumbai, out of this 100, 50 rupee may go towards the land acquisition. And if it is towards further northern suburb of this, maybe as low as 15 or 20% also.

Okay, sir. Okay. Thank you. That's it from my side, sir. Thank you so much.

Thank you. The next question comes from the line of Pranav, an individual investor. Please go ahead.

So, I have a question particularly on the, you know, ticket sizes and all. So, my question is how sustainable is the current, you know, demand environment in Mumbai? What are your thoughts about it?

So, our presence is never into experimental or immature markets. We are present in mature markets and our location is always neater and cleaner. Say for example, we are not into projects in and around SRA or weaker markets or anything that is very unestablished. So, we are into mature markets where the demand is always there and more support premium and established players, it is always there. So, you can call it like safer markets, you know. And we are into aspiring segment. We are not into any extreme segment where there may be a little uncertainty. We are in the middle, you can say, virtualizing between sides.

Okay, sir. Got it. My other question is that, like, how does you guys see the opportunity in redevelopment evolving further? Like, you see that, you know, the mix of overall pipeline of like, you know, redevelopment will be higher or you see lower? Like, what is the condition on the redevelopment evolving?

Okay. So, like, moving ahead, will be there like larger tickets as expected to be, you know, redevelopment projects as well? Or will it be the same on the macro front? as I mentioned about, you know, the currently on the side of redevelopment projects. So, the ticket sizes for the redevelopment will also increase in the market or will it be the same as it is?

No. So, the ticket sizes will vary as per the segment of the project, like the premium project and the premium developers will definitely get a much better premium in comparison to a medium category developer or the product. And the rate will vary as per the product and the brand of the developer, two things. So, there is a stand-alone building and there is a project with amenities. So, the amenities one will get a much better premium than a stand-alone building.

All right, sir. Got it. Understood. Thank you. That's it from my side.

Thank you. As there are no further questions, I would now like to hand the conference over to the Management for closing comments.

Thank you all for participating in this earnings conference. I hope we were able to answer your questions satisfactorily and at the same time offer insight into our business. If you have any further questions or would like to know more about the company, please reach out to our investor relations manager at Valorem Advisors. Thank you.

Thank you. On behalf of Arkade Developers Limited, that concludes this conference. Thank you for joining us and you may now disconnect your lines. Thank you.