Thank you very much. We will now begin the question-and-answer session. The first question is from the line of Murtuza Arsiwalla from Kotak Securities.

A couple of questions is one if I look at, you have had fairly successful launches and to that extent incremental sales would likely depend on new launches because you don't have too much of unsold inventory. While you have given us the broader guidance on the launch profile for the year, can you give us some color on specific projects and timelines of these projects that could be launched over the next few quarters? So, that helps us sort of get a better handle on the sales trajectory. That's one. Number two, you talked about embedded margins of 32% in ‘24, 35% in first half ‘25. It'd be useful if you could give us on the cost side for the remaining 65% of costs, let's say what is the composition between construction costs, approval costs and land spend, generally over the current sales that you are doing? And overall, when we speak with investors, there's generally a concern with the kind of price appreciation that you have seen in Gurgaon that market may sort of have picked up. So, any color that you could give, not just on your projects but on the overall Gurgaon market sort of would be useful? So, these are the questions from my side.

So, Murtuza, ballpark numbers for this year are targeted launches are of 16,000 crores, of which there are two larger projects which are getting launched. We have done Phase 1 in both Titanium SPR as well as Sohna which is Dakshin. Both these projects have Phase-2 launches as well which are also happening within this financial year. Put together, these two projects will have a launch potential of excess of (+13,000) crores. So, in third quarter/early Q4, we would have completed Phase-2 launches of both of these projects as well. In addition, we have another township project called City of Colors in Manesar which we launched during the October month. So, that will come as we update the Q3 numbers. That's already happened. We have also launched a project by the name of DXP Twin Tower which also contributed a little to Q2 numbers. But that's again a project worth almost in excess of about 2,000 odd crores. And there's another launch in Sector- 37D which is coming up. So, by and large by December you would see this entire 15,000 to 16,000 crores worth of inventory getting launched. Hence it would be good for us to achieve sales of this year and it will carry on into the coming year as well. So, that's on the launch front. Your second question was around the cost side of this balance 65%. So, on the cost side, we have been fairly I would say fortunate, our land cost is quite low, which is in current selling price terms less than 10%. So, land price including approvals is not crossing 10% of the sale value. Being more precise, our land costs on a standalone basis is lower than Rs. 1,000 a foot of FSI on a portfolio wide basis. It could be slightly higher or lower on a specific project wise basis. But on a portfolio level it's less than Rs. 1,000 a foot. Which means that including approval cost, we are not spending more than 10% on land plus approvals. Ballpark construction is not going to exceed anywhere between 40% to 45% of the overall sale value and you could assume the balance 10% for selling, marketing, SG&A, contingency as well. So, that's why the 65% is like a well buffered sort of cost target for whatever sales are currently happening. To your third question on the Gurgaon market; I would say if you look at it on a whole decade basis, starting year 2012-13 till date, I don't think the market has gone up more than an inflation linked sort of a percentage. Yes, a bit of rise happened during 2022 and ’23. On the price rise basis markets again found by and large a stable position. I don't think there's any sort of steep spikes happening in the market right now, while the volumes tend to be reasonably good. So, and even if you look at the overall perspective, see our sales per square foot basis our realization is at about Rs. 13,500 a foot. Substance over form, it doesn't seem as if something is really expensive for the kind of product being offered. The product which is being offered is actually comparable to any product being launched, not in the uber luxury segment but in any mid income or premium segment across the country. So, we feel Rs. 13,500 to 14,000 a foot is a fairly good price, both from the producer as well as the consumer perspective. So, we don't feel much of a challenge with the current pricing price point in the market.

Rajat, if I could just follow up with two more. If you could give some sort of color on what is the growth that you are targeting let's say for ‘26 and ‘27 on the sales side any ballpark numbers that you may want to leave us with? And just to be certain when you look at the cash flow statement that you put out for first half ‘25, the construction expenses include approval expenses or that is clubbed more with the land spends?

So, 10% is I think land and approval by and large both put together. Construction, I think 40% is good for construction, it's not going to cost more than that. As far as growth is concerned, Murtuza, I think we have not given any formal guidance as yet. But I think 25% sort of spike on annual basis is something quite achievable which will be through mix of both value growth and volume growth. Some 8% to 10% value growth is something which one should envisage even in the years to come and the balance should come from a volume basis.

The next question is from the line of Vaibhav from Nippon AIF.

So, a couple of question from my side. First on Dakshin, like you have mentioned that the full project is around 8,000 Cr GDV. So, this includes how much is residential and how much is the industrial plot? And the second is that like 23 million which is the sales which have been achieved, so this includes the 10 million from industrial plots or is it like 23 million residential?

In Dakshin by and large you could assume a 75-25 split between residential and industrial plotting component on an overall basis. As far as the sale which happened during the last quarter (+1,300) crores came from the residential component and 1,000 crores came from the industrial plot’s component.

So, just to clarify when you said 25-25 million, so that is like a 50 million launch after which 25 million was residential 25 million was commercial, is that correct?

No, I think the residential component is higher, it's about 65% component of the project launch was from the residential component. Industrial it was 35% or putting it conversely see a lot or whatever we launched in the industrial component, a much higher percentage of that got absorbed in a very short span of time.

And just secondly on the collections front this quarter seemed to be a little bit muted. So, any guidance as how we should see it coming out for the rest of the year? And just one last question if I could add, the construction expenses in the financial statement, the cost of material seemed to be nearly double that of the last year. So, have we like started a construction activity on any particular project which has led to a substantial increase? So, just these two end questions from my side.

So, on the collections front, quite a bit of sales for this year which you are seeing for the entire period, has happened in a very short span of Q2 towards the end of 2nd Quarter. So, collections are expected to pick up. Q3 will be better than 2nd Quarter and Q4 will be even better. So, that's where we are fairly confident of our annual target as far as collections are concerned. As far as the cost side is concerned, I'll look at the numbers and we can maybe respond to you if you want to drop in line. We'll kind of respond to it.

The next question is from the line of Deepak Poddar from Sapphire Capital.

I just wanted to understand, ideally you mentioned that this is revenue recognition that we target remains intact of 3,800 crores because of higher delivery and collections that you expect in the second half. So, about the second half we are still targeting about close to 2,600 because 1,200 crores we have already did in first half, right?.

Yes, that's correct Deepak. So, I think each of the quarters the recognition should be in excess of 1,000 crores.

And what about profitability? I think on an annual basis beware of the view that even after considering the cost of the recent launches at 20% EBITDA margin is what something that one can achieve on a reported basis. Now given our first half profitability is quite muted. So, how do we see that? In terms of annual guidance, are we still maintaining this 20% or is there any downward division to that?

I think we'll have to wait and watch on that. While at a product level basis, we are confident that these are all profitable projects which are undergoing completion. But in panel we are seeing bit of spike on the SG&A given the current level of sales because quite a bit of expenses gets expensed out in the year which we are growing, in the year which we are incurring those, and they don't get capitalized. So, a lot of SG&A expenses are also impacting the EBITDA margins. So, effectively this gap of sales which is kind of comfortably crossing 10,000 crores for the year vis-à-vis completions which will be at about 40% of the sales for the year. There's a bit of a gap in the SG&A expenses because the entire machinery platform is working for much higher performance vis-à-vis what is getting recognized. So, I won’t give a guidance on this entire sales. But yes, I could say that this number is definitely improving as the overall volume of completion will improve, the percentage will also improve because the expenses will get netted off against a much larger denominator, which is revenue recognized.

And my final query is on, I was just going through your presentation. I think it was mentioned somewhere that we are looking at revenue recognition of around 11,000 crores over FY25 and ‘26. Given FY25 we are looking at 4,000 crores. So, FY26 7,000 crores would be the right estimate to look upon to?

Yes, we will be targeting to complete all the balance projects in FY26, and we'll roll out a very granular sort of number as we close this year. But by and large yes, we stick to that commitment.

And our ongoing project is close to about 15.8 million square feet, right?

Yes, ongoing as in the ones which are at very advanced stages of completion which add up to about 11,000 odd crores of revenue potential. In addition, now we have launched almost 10 odd million square foot which we have done over the last three quarters but that's also technically ongoing now. But yes, that's…..

But those are recent launches. I think they’re categorized under recent launches, right? That 9.5 kind of a million square feet.

Right.

The next question is from the line of Abhishek Khanna from Kotak Securities.

I just wanted to check the industrial plots that you have sold, 1,000 odd crores in the current quarter and the ones that would be planning to sell in let's say the second half of the year or going forward also, these would get recognized in the P&L almost immediately. Is that how it works?

No, Abhishek I think we'll have to deliver these projects and collect almost the entire revenue of these projects. So, one should anticipate that completion timeline of about 18 to 24 months. So, this should come under recognition in FY27.

But you have to build anything on these plots? Isn't it empty plots that you deliver to your customers?

No, but basic infrastructure has to happen, roads, lighting, sewage, waste treatment. That basic infrastructure development has to happen and then completing those trunk infrastructure has to be obtained from the local authorities. Only then you can handover the position to the customers. So, it does take about 18 odd months.

There are three components, there is residential, there is industrial and there is retail, typical convenience retail which is there. We have so far launched residential and industrial plots. Retail is something which we intend to do in future.

Would that be 5% or more than that?

In value terms more than 5%, so that's also about 700,000 to 800,000 odd square foot of spaces will come up. So, that's also you could say a (+1,000) crores contributor on a GDV basis.

The next question is from the line of Adhidev from ICICI Securities.

Just a few bookkeeping questions. Firstly, could you let us know any estimated GDV for the balance inventory which we are planning to launch for the next 2 to 3years across our ongoing and forthcoming projects, the 50 odd million square feet which you have given in your presentation, the balance value or anything guidance you could give us?

So Adhidev, after we have done our launches for this year, you should assume that we still have owned/tied up land where we can do in excess of 35,000 crores in terms of GDV value which will launch over next 2 years.

Or the next couple of years?

On a sustained basis we’ll be able to do launches of this magnitude and keep replenishing land also both tend to happen in parallel. So, we keep looking for land and we keep launching projects.

Ao actually that was my next question on the land replenishment. So, considering that we have launched or almost to be launching 16,000 crores GDV of projects this year and maybe you said 35,000 crores over the next couple of years. So, to replenish 16,000 to 17,000 crores annually, what are our plans on spend on land annually and what are the locations we are looking at other than the ones we have already established currently?

We'll continue to acquire in the positions which are already established because since we are able to achieve sales in these locations, the primary focus will remain on areas where we are selling well or if we step back a little and look at it, there are certain core markets where our customers are buying product from us in this broader mid-income theme. So, we do intend to kind of do a sustained supply in these markets rather than doing sporadic sort of launches. In addition to that, this entire plotted theme is playing out quite well. We have done one launch in this quarter. We have technically done another launch in Q3 as well. So, around this also we are looking at doing some acquisitions or collaborations as it may pan out. So, you could see more of this activity as well in the coming year and eventually at some stage it becomes like a contributor to our annual target and that would be a bit of addition to what we're currently doing.

And there was some obviously media article quoting that you are also looking at the Noida market for a possible entry next year. So, any update or development on that?

Not yet. We continue to look at opportunities and we are evaluating it but nothing in particular as of now.

And my final question is on our construction contracts. Obviously, we have been given construction contracts to a lot of reputed third-party contractors right now for our project which we have launched. Could you just let us know what is the scope of the construction like do they do the entire finishing works as well or that will be undertaken separately by us across, across various vendors at the end, what is the plan over here on the deliveries?

So, see as a broader Strategy there's about 16 million square foot which is at advanced stages of completion. So, this is by and large being handled by our team wherein we have the responsibility of doing the entire procurement, time management, quality management etc. And only labor contracts are being given for this entire 16 million square foot of completion. So, you could say that while we are acting as a developer, we are also acting as master EPC player contractor for this entire advanced stage inventory completion. As far as some of these newer projects are concerned which are more in the luxury sort of segment and where we want to maybe even more particular on the quality aspects, we have chosen to onboard some large EPC contractors. So, it's a very project wise situation Adhidev. So, as far as De Luxe DXP is concerned Aluwalia Construction is going to do the entire structure as well as finishes. Whereas on the other project, right now we have awarded them a contract only for the structure aspect and Capicite is also and ACC we have also onboarded for our projects. So, we are adding good quality EPC contractors as well to ease out our sort of completion timeline and commitments.

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

Thank you everyone.

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