Ladies and gentlemen, good day. You're welcome to the Anant Raj Q4 FY24 earnings conference call hosted by DAM Capital Advisors Limited. As a reminder, all participant lines will be in the listen-only mode. There will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference, please signal the operator by pressing star and then zero on your touchtone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Prateek Singh from DAM Capital Advisors. Thank you, and over to you, sir. Thanks, Erwin. Good evening, everyone. On behalf of DAM Capital Advisors, I welcome you all to Anant Raj Limited Q4 FY24 earnings conference call. We have with us on the call today the management of Anant Raj, Mr. Amit Sarin, Managing Director, and Mr. Pankaj Gupta, the CFO. Before we begin, we must remind you that the discussion on today's call may include certain forward-looking statements and hence should be viewed in conjunction with the risks that the company may face. Without any further ado, I now request Mr. Sarin to take us through the strategic highlights of the business. Thank you and over to you, sir. Thank you, Prateek. Namaskar, everyone. Thank you very much for joining and taking out the time to listen to us and clarify whatever questions you have after that. Just to give you a synopsis, as you must have gone through the numbers, this year has been 1 of the best years of the company so far. The company crossed a top line of 1,500 comfortably crossed a top line of 1,500 crores, if I have to be exact, 1,521, and got a PAT of INR 265 crores, which so far has been the highest the company has ever achieved. We are pretty bullish, still pretty bullish, on the company and the ongoing projects. As you know, in the last year, the company basically focused on 3 projects in the real estate segment. We did group housing. We did villas fully furnished. We did floors by way of making G+3 and G+2 structures, which was, again, pretty successful in the market. All three projects were received very well by the market. We got very robust demands, and we were able to realize a better price than what we had projected also. This is thanks to the tailwinds in our sector and thanks to RERA and other regulations and all, which have given a lot of clarity in our sector. So going forward, we are still focusing on 63A in the coming years. But just to complete the synopsis of the last year, these three projects were launched, received very well by the market, number one. The company in January this year completed its QIP, in which the company raised about exactly INR 500 crore. That money was used basically to retire debt and the other purposes of the company, general property purposes of the company, which is all done. The company, going forward, is pretty comfortable in executing its projects in the real estate sector as well as in the data center. The next is the debt. The debt of the company has substantially come down. As you are all aware that in the previous call, we had projected that by December 2024, the company will be a net debt-free company. The company is fully on the lines for achieving that. The debt has substantially come down. It is now the net debt on the company is INR 290, which is a substantial reduction in the debt. The cost of borrowing also of the company has now come down below 10%. This is related to the real estate part and the money which we generated from there. As you all know, Anant Raj in data centers has also become a major player in North India. We already started 3 MW. The balance 3 is also ready and is in the handing-over stage between that. We are also very happy to announce that in the previous year technically, in the previous year itself, in March, Anant Raj also entered into a fresh agreement with TCIL, one of our partners for data centers, for providing cloud services also. This is an add-on which the company has now started doing on a basis of clouds. With its co-location, which the company is already doing, we are very confident that the project which we are delivering in the market is one of the best. We understand this project very well, both cost-wise and quality-wise. We are one of the best in the country, as well as we are easily competing with data centers even outside India. So taking this forward, when we got this opportunity through TCIL, we thought that on a trial basis, we will do this also. And we've already started working on it. The agreement has already been signed and done, and the work for this has already started. Going forward, with real estate, the company is now fully paused. The company already has the land. All the basic permissions are there. And in the coming year, the company is going to launch another group housing. The company will launch about 4 lakh into two, two projects of 4 lakh each, up to 8 lakhs for independent floors, and another project of housing in 63 itself of 6.5 lakhs. For this, the land is already done, and the company is fully poised to launch these projects. With data centers, as you know that our initial thing was 21 MW, which the company is fully poised as per the projection and the commitments which we made. We are going to have this operational by. 21 MW will be operational by December 2024. In addition, we have also started work at our Panchkula site where we are going to have another 7. So fortunately, we will have 21 + 7 by December 2024. This is the basic synopsis of what we have done in the previous year. I'll now hand over to Mr. Pankaj, our CFO, to give you a synopsis of the previous year. Pankaj, please. Thank you very much, sir. Good evening, everyone. Thank you for joining us for our earnings call today. Firstly, I want to express my gratitude for your presence and delighted to report that our performance this quarter has once again demonstrated our commitment to a strong financial growth of the company. Moving on to our financial highlights for the quarter and full fiscal year FY24, I'm happy to announce that our revenue from operation has grown 51% year-over-year, reaching INR 1,521 crores FY24. Additionally, in quarter 4 FY24, we sustained a momentum with a 56% year-over-year growth in our revenue, which is INR 453 crores. During this quarter, our EBITDA reached INR 115 crores, reaching a 39% year-over-year growth. The EBITDA achieved in Q4 FY24 surpassed the company's EBITDA for the entire fiscal year of 2022. So keeping our focus effort and growth aligned with the strategic objective, moreover, our EBITDA margin has reversed to 24.4% in Q4 FY24. Looking at the full fiscal year FY24, we achieved a 51% growth in EBITDA, amounting to INR 371 crores. Our PAT during Q4 grew by 67% to INR 284 crores on account of strong operating performance and debt reduction. For FY24, we saw PAT growth of 25% and achieved INR 266 crores of PAT during the year versus INR 151 crores achieved during FY23. I am very pleased to share that this is the company's best profit so far, which we have achieved over the last 15 years. The company has made a remarkable stride in the debt reduction and anticipates achieving a net debt-free status by December 2024. Additionally, we have managed to reduce the overall borrowing cost to below 10%. The net debt for FY24 is fixed to INR 290 crores versus INR 988 crores in FY23. We continue to generate an improved operational cash flow quarter-over-quarter and expect the trend to continue further. In FY24, collection yields have an impressive overall cash flow inflow in FY24 is INR 1,260 crores. This is an update of finance. Thank you. Now I'm passing the call over to the operator to open the floor to join us. Thank you very much. We will now begin the question-and-answer session. Anyone who wishes to ask a question may press star and one on their touch-tone telephone. If you wish to withdraw yourself from the question queue, you may press star and two. Participants are requested to please use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. We have the first question from the line of Balchandran Vasant Shinde from Kotak Life. Please go ahead. Hi, sir. Sir, regarding cloud service, as you mentioned, if you can provide how the revenue booking will happen and what kind of profitability we'll be able to generate. Also on the 3 MW, which we just come into operational, from when we can expect revenue contribution and EBITDA contribution from that? Mr. Balaji, the 3 additional MW are already in the stage of handing over. So maximum in another 1 month, we will start recognizing revenue from them if we start accruing. That's number 1. Regarding the cloud services thing, this is a brand new thing, sir, and this is something which came to us from the client itself. The co-location facility which we have created, like you just said, it is one of the best. So we got this offer that if you can provide a server for which they will give us all the details because we do not have a lot of expertise in this segment. But the revenue, sir, with the server coming in, can actually go up almost 5 times. So like 4 years back, we started this data center thing, and now today, it is practically happening on ground. So let's start this. This one is not going to take four years. God willing, if it works out well, you will see substantial increase in revenues by the end of this year itself. Instead of INR 90 lakh per megawatt, you're saying we'll receive somewhere either an increase from INR 4 crore-INR 4.5 crore per megawatt today? Sir, 90 is all sorted, yes. You're right, sir. 90 is all sorted. That is something which we understand very well, and we are now in the multiplying stage, and we go on multiplying. Like we just mentioned that instead of 21 MW by the end of this year, we are now aiming to get to 28, 21 MW, sir. The depreciation part will increase, right? because servers are relatively depreciated. Just 21 + 7 is co-location as of now. And in this 7, the additional 7 which we are getting, we will now partly start using this for server as well. So 90 is definitely sorted, sir. And like we just said that this revenue, when the server is in, of course, it is not going to be in for the whole 28, but as we are going to test this maybe with 0.5 MW or we don't want to give the exact numbers. Right now, we are in the stage of planning it. So this revenue from this aspect can multiply. 90 is definitely there, sir, but this can then multiply by 4-5 times. Got it. Got it. Even on the profitability part, if you can provide some detail. Right now, the server cost is not much, sir. On a trial basis, we are trying. With that, I can just give you basic numbers. As of now, what we have been given to understand, and we are now going to implement it, if we spend INR 20 additional on the server, we are expecting a revenue in one year of close to INR 120, sir, on that additional part. So that's the increase because this is only we are eligible for this because we are the only guys who are sitting with the infrastructure. Got it. Thanks, sir. Thanks. I'll come back to the question. Sir, thank you. Thank you. Ladies and gentlemen, if you wish to ask a question, you may please press star and one. We have the next question from the line of Arpit Shah from Stallion Asset. Please go ahead. Hi. Am I audible? Yes. Yes, yes. We just wanted to understand the unit economics of the data center business. How much are we investing, and what kind of returns can we expect from there, and what kind of impact we would be seeing in this business? The 300 megawatt which we are intending to roll out, what would be the timeline for that? See, Arpit, right now, we have already rolled out 3 + 3. 3 is already there, and this balance three is now getting rolled out. What we are, on an average, because in our case, the land and building is already invested, and we are strengthening the building and then investing in the infrastructure. We are spending an additional cost of about INR 26 crore. And as we mentioned in the previous calls also, we get about INR 90 lakh per megawatt per month. We spend about 15.15 on the maintenance, on operations of this. So 75 is a bit which comes to us, the 20 MW. Our payback on the additional expense which we are spending is about 3 years. Got it. It's because that you own the land and the building, right? Yeah. Yeah. Yes. That is the advantage. And it's all ready, and non-encumbered, everything was ready. So that's how we started doing this. We strengthened two towers first, and then that is the two towers which are now going to give us 21 MW and then so on. Got it. And how are you looking to roll out this 200 MW as you have planned? What will be the timeline for that? See, Arpit, right now, this 21 and plus 7, another 7 gets operational by December. And as you know, simple math, 75 into 28 and so on. So then we discount we have good cash flows coming in from our real estate business. And whatever is the gap, we discount our rentals with all of this, and we get money into it. See, Anant Raj, in principle, is going to be zero debt by the end of this year. LRD is one aspect which we will use as in when we require it. We will never go beyond LRD. Got it. Got it. Got it. Got it. And any plans to demerge or that's very creative now? Sorry, Arpit, can you repeat that, please? Yeah. Any plans to demerge or it's really very young? It's too soon to say anything on that, sir. Let's focus on execution, Arpit. We are very clear. We have the assets. We have the buildings. Let's get to the 300 mark as soon as we can. And our internal planning in fact, you had asked this question which I missed out. Our internal planning is to get to this mark in the next four years. Four years. Arpit, INR 75 lakh per MW per month. Thank you. Thank you so much. Thank you. Thank you. Participants, to ask a question, you may press star and one on your touch-tone telephones. The next question comes from the line of Upendra from Stockstar Consultancy. Please go ahead. Yeah. Hi. Congratulations on the very good set of numbers. Thank you, Pankaj-ji. Thank you. Yeah. Firstly, I wanted to know since we have been stressing about the land which is available with us, I wanted to know how much percentage of a megawatt cost does the land cost, actually? Supposedly, we are telling the cost for setting up one megawatt of data center is INR 25 crore-INR 26 crore. What is the actual percentage of the land cost, and what advantage do we as Anant Raj have compared to others who are setting up data centers? Yeah. Actually, land cost varies from location to location, right? So the three locations where we are sitting on, we already have the land. More than the land, the biggest advantage we feel that we have is the timeline. Of course, land cost can vary for people, sir. But we know for sure that we are other than the land cost which we already have and the building which we already have, we are incurring an additional expense of INR 26 crore which we recover in three years, and then our profits start to kick in. So that's the logic we are in this for. Land cost, sir, is a very variable thing. Land depends on where you have the land. If we talk about the three lands, we are talking about the land and the existing buildings which we are sitting on today are at a valuation of close to INR 3,000 crore as per the present market value, sir. Okay. No, no. My question was, is it a substantial part of our data center cost, or it is a very minimal? It's not a substantial part, sir. It is not a very substantial part. Yes. So that's what I wanted to understand. It's not a very substantial part, sir. The basic advantage which we feel like we just told you is the timeline. Anybody to be on the stage where we are will take at least 3-4 years to get to where we are right now. Okay. And secondly, I want to understand you were telling about realizing 4-5x of revenue over the server or something. Can you just reiterate what you were telling regarding our 4-5x revenue? Babanajik, this is done in two parts. As of now, Anant Raj has fully understood and started executing the co-location. When we say co-location, we are providing the rack with all the infrastructure, which means the building, the power backups, the firefighting, the air conditioning, the batteries, the switches. Everything is done by us. So this makes us a co-location there. What is remaining, sir, is the server. We don't want to do it for the whole 300 MW. And if we are specifically talking, right now, we are working on 28 MW, 21 + 7. So the 21 is hardcore meant for being a co-location only. But the additional 7 which we have created, mix and match, in this, as of now, we are starting this as a pilot project, and this also because we were approached by one of our clients. The client offered us that if you start putting in the servers, the revenue projection which we have seen on paper is almost 4-5 times higher than what we are presently getting, sir. We want to do this as a pilot. In this, the client who is coming in is going to be holding it will be a lot of hand-holding for us, and the agreement for that has already been signed. We are now the first pilot project will kick off in the next maybe 2 or 3 months, sir. Lovely. So is there any plan which you have for setting up the servers together, any roadmap which you made? I know it is very early to ask you, but obviously, you must have thought of something. So let's try this because, sir, this is something which came in. And it is our duty to inform the market also because we've already informed the market about the agreement which we have signed. This agreement which we have signed is with TCIL, the Government of India Undertaking. And together now, TCIL and us, we will be providing cloud services to various clients. And in this case, we will be putting in the server. So Abhi, let's try this, sir. Let's try this with maybe a few racks like we just discussed, close to 0.5 or maybe a little less than 0.5 MW. And then let's see how it works out. Lovely. Last question. The 300 megawatts which we are projecting to do, first, what is the timeline which we have kept for that? And secondly, the revenues which we have thought that we will be getting around INR 75 lakhs per month per megawatt, is it fixed revenue, or it might vary maybe in the coming years? Supposedly, there is a lot of supply of demand in comparison to the revenue demand. Sir, the 300 MW, we will get in four years, sir. That's number one. Number two, this INR 90 lakhs and the operating expenses of INR 15 and INR 75 coming into pocket is as of now. So tomorrow, these revenues might change. They are somewhere they are linked to inflation where they will definitely change as per the inflation, up or down, whatever the case may be. And of course, when the competition starts kicking in, then things will change. Let's see how they change. But at Anant Raj, the biggest benefit we have is the low cost because we are able to do this in INR 26 crores, sir, whereas there are people who are spending almost double this amount. So Anant Raj has that buffer that tomorrow, if the revenues are revenue, the stream is definitely controlled by the market, sir. So let's see how they shape up. But as of now, sir, thanks to the law already being notified by the government, and now it's very simple that Indian data has to stay within India, which is the case with any big established country. So our country is also born into that category. So this law is here to stay, sir. So demand here is only going to go up. Of course, supply will be there, but the demand is phenomenally going to increase, sir. Correct. So if I'm right, 300 MW and INR 25 lakhs of revenue will translate to somewhere around INR 2,500 crores in the next four years just from the data centers. Sorry. You're saying in the sorry. Can you just repeat the last part? The INR 25 lakhs for 300 MW should come somewhere around INR 2,500-3,000 crores. Yes, sir. Yes, sir. Is that correct? Okay. Lovely. Correct, sir. Thank you so much. Thank you so much. Thank you. Thank you. The next question is from the line of Pavas Pethia from Aditya Birla Mutual Fund. Please go ahead. Arpit, on this server thing, are you saying the revenues are 4-5X of the rental which you are getting right now? So it becomes 4-5X per month per megawatt? Yes, sir. Yes, sir. We can't give projected numbers like this because this is a trial case which we have started. But yes, sir, definitely. Yes. Okay. Since the client is providing a technical know-how, everything, so what's the incentive for clients when he already has a technical know-how? The margins are 80%-90%. His fees go down because, of course, we have an arrangement with them which we can't disclose like this. But then his fees go down, sir, because he gets an X amount of fees on 90, and he gets if the revenue is 5 times higher than his fees, it's also 5 times higher. Yeah. I understand, but the only thing was since you are kind of a new player here, your knowledge about this server part is kind of quite limited, earnings 80%-90% margins. So what's in for the client? The client is as it is being this, sir. The client is as it is being this elsewhere. Sir, Arpit, if you can simply go on any website of any major cloud provider, and you can see for yourself what are the rates. So the rates we are talking about, 2-5 times, is actually in line with that. In fact, maybe a little cheaper. Okay. What kind of investment you will need from your side apart from the, say, the 30% of the operating cost? We will actually be investing in the server, and that's how we become eligible to earn the cloud money. So the server is what we're going to be investing in. But as of now, we are going to do it as a pilot in a very test case, not even 0.5 MW. Let's see how it turns out, and then we take it further. In terms of costing of this server per megawatt, any ballpark numbers? Sir, again, we are now working on it. And hopefully, by the time we do our next call, the server will be in, and we can show the exact cost. But like we just said, as of now, we are going to do it like a pilot and with bare minimum investment. And let's see how the revenues shape up and then multiply this in future. Sure. And sir, the target for this 28 MW by December is okay. But if I put back in the sixth month, what kind of figures we are looking for at the data center? We get to 28, and then the revenues we generate from this 28 plus the real estate income, which is completely sorted because our 63A, as of now, for the next 3-4 years, is completely sorted. We are sitting on 100 acres which we are now executing. So both these things put together, we get to the 28 mark, then we get to the 50 mark, and then so onwards from there, sir. I understand. Because we started working on two locations. We started working on the Manesar, is a location which is known to everyone. The additional 7 is coming in from the Panchkula location. So we started work there as well. Okay. I understand the 300 MW will be 4 years, but what will be the second-year number? Any broader number? The second-year number will be 50, definitely. We are working on increasing this 50 to 75. Sir, as of now, see, this is a brand new thing for the whole country, as you know. The data center business is a brand new business for the whole country. We are also learning as we are going on ground. Today, we feel that we have understood the co-location part very well, which we are doing as one of the best in the country. Now, slowly, slowly, we move on to different things. We'll start multiplying capacity as well as add-on services along with this as we go along, sir. Sure. And on the residential piece, you said about 4 million sq ft into 2 plus point. The total launches are roughly around 1.45 million sq ft. 1.45, 1 million sq ft of group housing, sir. Okay. This year, you will have roughly around 2.5 million sq ft launch? Yes, sir. Okay. And post this, how much land parcel is available in 63A in terms of million sq ft? We have three more group housings. We have another which we already own. We would have close to another 55-60 acres of land remaining with us, which is eligible for various licenses. Okay. Yeah, but on current land bank, how much is left after this 2.5 million sq ft? After this 2.5 million sq ft, we are total approximately, with the present land bank, we are eligible for? 9.07. Minus 2.5, balance is still there with us. Okay. Okay. Thanks a lot, so much. Thank you. Thank you. The next question is from the line of Akshat Shah from Niveshaay. Please go ahead. Akshat, the line for you has been unmuted. You may proceed with your question. Hello. Thank you for taking the question. So I want to ask, you said in previous meeting that a data center will be funded through internal revenues. So how will it be done? Because it seems hard to generate INR 8,000-INR 9,000 in the term of 3 years. Sir, we are already the present land bank which we have is eligible for 15,000 as of now in 63A alone. That is all on our website. You can go and see. You can have a look at the projects with all the numbers. It's all there, number one. Number two, as in when we require, like we said in the beginning of this call, as in when we require, we have the option of using LRD because LRD has already started growing. Of course, we are not using it because we don't need the money right now. But as in when we need a bridge to finance this gap, if there is any delay or maybe the market slows down with our real estate, then we have the option of LRD. So with these two combinations, we are completely sorted for our 300 mark. Okay. The second question is that what can be our net margins for data center services? Sir, as of now, we only discussed the co-location thing. The co-location net margin, the EBITDA is INR 75 lakhs per month per megawatt as per the present going rates. Akshat, does that answer your question? Akshat, anything else? No. Okay. Done. Thank you. Thank you. The next question comes from the line of Rishit Shah from Nuvama Wealth. Please go ahead. Hi, sir. Good evening. Thank you for your time. Good evening, Rishit. Yeah. Great set of numbers. Thank you. Question from my end. One regarding while we do not want to give out the exact numbers, some idea regarding when we see the revenue from the cloud, it can be potentially 2-5 times of the co-location. Similar range or ballpark figure you can give regarding how much increase do we see over there? Not much. Rishit, like we just said, we are doing this as a pilot because we had already informed the markets in March. We had to cover this in this call. As of now, this is going to be a pilot which is not even 0.5 MW to start with. The investment is very minimal in this. We are going to be getting servers as per the technical expertise of our client, which we have already signed the agreement with. Then we provide cloud services. So as of now, the expense is very minimal. As you know, we can't give future numbers like this. But as of now, we are talking about a basic expense which is maybe INR 20-30 crores, and then figure it from there. Okay. Got it. So this will be the Apex part, but in the OPEX side, it will be similar to what they're doing co-location somewhat. This will cost, it's not going to be a huge difference because as you know, as the revenues go up almost 5 times, the operational cost is not much. Maybe it will go up to maybe INR 15 lakhs there. That can go to maybe INR 25, 30 lakhs, not beyond that. Okay. Great. Sounds great. Second question on the bookkeeping side, so in the fourth quarter, if you can just give me the number of revenue that came from data centers for revenue as well as the data? Fourth quarter, group revenues close to approximately INR 3 crore because अभी तो शुरू ही हुआ, it has just started. That's right. Right. Okay. Sure. Thank you. Thank you. Participants, if you wish to ask a question, you may please press star and one. The next question is from the line of Prateek Bhandari from Arth Ventures. Please go ahead. Hello. How are you doing? Yeah. Am I audible, sir? Yeah, you are. Can you be a little louder? Yeah. Sure. Yeah. So just had a couple of questions from my end. Just wanted to understand as to what is the contract life of a data center, if you can let me know as to. This varies from 10-15 years, sir. 10-15 years? Haji. Okay. As you speak to that, this 21 megawatts will be operational along with the 7 megawatts which you are having in Panchkula by December 2024? Haji. Right? So if I have to understand what the cost of equipment that it would be entering on the data center for this current year, that is FY25, would it be approximately? 500? 500. 500, sir. What would be the source of funding, sir, whether internal or? As we just explained, as of now, the company is sitting on cash money which is basically meant for executing data centers. The launches which we've already done are generating enough money. All this INR 28 is completely done in-house. Okay. Hello? Haji. Yeah. It's completely in-house? In-house. In-house. Haji. Okay. Okay. And another question that I wanted to have was wanted to understand as to what is the maintenance CapEx that we can look at in terms of the renters in the data center? I mean, regard to the renters, what kind of maintenance CapEx can we expect? This is the operational cost already. We have explained around INR 15 lakh per megawatt. Capital expenses, operational capital expenses, it will come in after 10 years. Basically, all the equipments we have incurred in this, it is a very long process to get this capitalized because only battery is the case in which we have to do the CAPEX replacement. What about the security systems? Security system will come into the operational activity. That we have already considered in OPEX. The INR 15 lakhs, you have no cash, right, every month? I just wanted to get a ballpark figure as to in terms of percentage, I mean. It will come near about 18%, sir. 18? Total 18%. Total 18%. Okay. Okay. Thanks a lot, sir. That answers my question. Wish you all the best. Thank you. Thank you. The next question is from the line of Sitaram Agarwal from Tree Line Investment Management. Please go ahead. Hi, Amit. How are you? Hi, good sir. How are you? All well? Yeah. Amit, just a quick question. Did I get you correct in your statement that the CAPEX for data center for you is about INR 25-26 crore? For competition, it will be double that amount? Yes, sir. Definitely. So is the difference primarily and the difference in this CAPEX is primarily coming from the land and building investment? Is that correct? I'm getting, sir. We have kept it very simple, sir. We already have the land and building. We are strengthening our building, number one. Sorry, what? Number 2, then we are spending on whatever money we are spending to be a co-location player. We are getting a finished product in our hand at INR 26 crore. When you see numbers coming out in various reports and all, they are almost double when people are projecting that they'll be making data centers. They are talking about a cost of INR 55 crore-INR 60 crore. We are taking it from there, sir. We actually, from what their sources, we don't know. This is something which you can go and see on the website, cost of 1 MW of data center, and you will come across these figures of INR 55 crore-INR 60 crore. In our case, we worked out very carefully that we have the land, we have the building, we need to strengthen. We know that we are spending about INR 4-5 crore per megawatt for the strengthening part, and the balance is for the equipment. Then we compile the whole thing, and in 2026, we get a finished product which we have delivered, and it is visible on site. Right. Okay. Got it. So this will make your overall economics much better compared to competition in. Definitely. Definitely. Yeah. How we came, Sitaramji, how we came into this was our buildings were there. They were vacant. Fortunately, there was no third-party rights, no encumbrance on the buildings. And as soon as this data center thing started coming into the country, this is somewhere in 2019 when the government was serious about making a law and all these things, we started working on this aspect. We approached various expert bodies who certify and rate data centers. They certified us, they rated us, and yes, these buildings are eligible to be data centers. And then we started our work. And today, we have a finished product with us. Yeah. Right. Right. Yeah. Amit, another question is the INR 15,000 crore which you talk about, this is entirely 63A, that is 9 million sq ft. Is this my understanding correct, or please correct me if I'm wrong? Yes, sir. This is only 63A and only 9 million sq ft as of now. There are various other assets which we are not even touching right now, sir. The other assets, you mean the Delhi land parcel? Delhi land parcel, there are various other miscellaneous land parcels. It's all there on our website, sir. If you have a look, you will see everything. But for the next four years, our complete focus with our real estate is 63A. Okay. So essentially, whatever INR 8,000 crore CAPEX is going to be needed in ramping up to 300 MW, you expect to close largely by monetizing 63A. And if there's a shortfall, then you will go into LRD of your existing rentals. Haji. Definitely. Yes. Okay. How much is the existing rentals annually? We are already at about 90, 90, sir, all rentals and other income. Per year? Yes, sir. This has nothing to do with data center. If a data center is very small, as you know, right now, this is mainly our other buildings and all which are heating and other things. This INR 90 crore rental, annual rental is from your commercial properties? Yes, sir. Commercial and other properties, yes. Retail, commercial, other things. Yeah. Okay. So this can potentially be about INR 1,000 crore-INR 1,100 crore funding at whatever, 8%-9% cap rate. Which means some of them is already, some of this is already discounted. Amit, it may be a little too early, but do you sense that because your data centers are going to be long-term contracts of 10, 15 years, these are also essentially assets which you can avail LRD on? Yeah, definitely. That is what we are actually banking on if there is any shortfall. Sir, as you know, at Anant Raj, we are very averse to debt. And we will be out of debt by the end of this calendar year, number one. And the only debt which Anant Raj is open to taking is LRD. And this is one of the best items for LRD because you have long-term leases and good clients. So the rates here are even better than normal commercial building LRD rates. Right. So do the renters in data centers have any annual escalation or anything of that sort, or is this? As of now, sir, this is linked to inflation. On the revenue side? All these things go up. So this is directly linked to inflation as of now, sir. Okay. Okay. Got it. All right. Okay. Thank you. Thank you, Amit. Thank you. Thank you. Bye. Thank you. We have the next question from the line of Vignesh Iyer from Sequent Investments. Please go ahead. Am I audible, sir? Yeah, Vignesh. Yes. Tell us, please. Yeah. Thank you for the opportunity, and congratulations, and a great set of good luck. Thank you, Vignesh. So on the data center side, I just wanted to know if I heard it right, by quarter four, are we expecting the Panchkula 7 MW to be complete? Yes, sir. By quarter four, definitely. Okay. Okay. So the ramp-up would be quite fast, right? 3, 6, so the numbers would ramp up very fast to 28. Yes, sir. So we are going to do quarter four, definitely, but because they are handing over, taking over situations, servers come in, so it's a process. We'll be ready by December. So I'm thinking, January/February time, it will start kicking in. But quarter four, revenue शुरू हो जाएगा. Okay. Okay. I mean, it is okay. But it is okay that readiness would be there on the 28th megawatt, right? Yeah, yeah. It will start sooner or later. We'll be ready, so then we start handing over, and we start taking it over. Servers start to come in like we just told you. Right. So again, on the Panchkula part where you said the server, the cloud server, the business you are buying as of now for 0.5 megawatt, you are trying to get into it. So when you say that the server cost is around, we are going to spend around INR 30 crore, for that INR 30 crore, is it linked to 0.5 megawatt, 1 megawatt, would the server cost be that much, 7, 8, 10? This is 0.5 MW. This is 0.5 MW only. Even after this INR 30 crore, and see, servers also vary. The cost of server also varies from server to server. The one we are going to be providing for the pilot project is going to be within this limit. Okay. So on this specific, sorry, sorry, sorry. Yeah. Tell us, please. No problems. Tell us. Yeah. So basically, if I understand right, this customized server that is required for this specific client, so for that INR 30 crores, it's not 0.5 MW project, right? Haji. Haji. So we'll let's do this as a pilot. So now, see, sir, we feel this is something if you take it very raw, when we do deal with land, we start doing acres. Then when we develop those acres, we try to come into square yards. Then when we develop those square yards, we come into sq ft. And then we start furnishing those sq ft also, and then so on. If this is something like that, we have understood co-location very well, and we are doing it. We are one of the best in the country now. So this offer came to us from our clients that if you start putting in servers so we wanted to very conservatively approach this. So we picked up this as a pilot. We do this 0.5 MW. And then as of now, the projections for this 0.5 MW are close to 4-5 times of the investment which we are making. So let's take it forward and then try and multiply it. Right. Right. Absolutely. Absolutely. Thank you, sir. That was on my side, and all the best. Thank you, sir. Thank you. Thank you. Participants, if you wish to ask questions, you may press star and one. The next question is from the line of Upendra from Stockstar Consultancy. Please go ahead. Yeah. Thank you for coming back again with another question. So the 0.5 megawatt pilot project which we are doing, you have told that we will be incurring around INR 30 crore for the 0.5 megawatt. So will the investments for the 5x revenue which we are projecting for the 7 megawatts, will it be in line with this, or will there be shifts? Amit, let's start this. Let's start this first. Let's say, for our co-location, we started with 3, and now we are multiplying it. So let's start this with 0.5 MW and then take it forward. Let this get established. Let us start earning money from it. And if we understand it well and our clients start approaching us by giving us technical backup also, and then we start multiplying this. Okay. Understood. And okay, Amit, I just wanted to ask, why our investor presentation is only about data centers, and there's no mention about? This is brand new. This happened in March. This is yet to start. Because we have already informed the stock exchange that we are going to be doing this, we covered it in the call. There's no mention about the real estate on your investor presentation, if I'm not wrong. It is. So, sir, the update you will get in this particular quarter investor presentation, which we are going to upload today or maximum by tomorrow, you will get all the details. Yeah. Lovely. Okay. Thank you. Thank you so much. Thank you. Thank you. The next question is from the line of Arpit Shah from Stallion Assets. Please go ahead. Yeah. Hi, Amit. I just wanted to understand yeah, I just wanted to understand the ramp-up of revenues because you just mentioned INR 2-4 crores, around INR 3 crores. How should we look at it because you mentioned about INR 90 lakhs per megawatt per month? I assume the revenues will be a little higher. How does the ramp-up happen in this business? Amit, this ramp-up, like we just discussed, this is handing over and taking over. And so this takes a little time. And as you know, as we all know, this business is brand new for the whole country. So it is slowly, slowly ramping up. So we have handed over, but their servers are about to come. And that way, we are a very cooperative company and very flexible as well. So we want our clients to settle in well, and then we start earning. I said, "This is a long-term thing, sir. This will go on." So initially, it might take a few months here or there. But ultimately, this is all getting handed over, and they handed over, and there is enough demand. Today, like we just discussed, the law is already in place. The demand is already there. You just need to go on continuing. At the same time, because the law has just been made, the demand has just come in. There are teething issues in this thing which we are quite equipped to handle, and we are very flexibly handling it. Got it. So how do you see the share of profitability in the real estate and data center business in the next, let's say, one or two years? Would it be a large delta in the data center business where the profits or the profitability in the share goes higher for the data center business in the next couple of years? Amit, see, whether it's the real estate, we are very clear. We have our roadmap for the next 9 years with the present land bank which we already own. As of now, we are fully focusing on 63A, then Delhi kicks in. Other parts start kicking in. So 9 years, with the present land bank, we are completely sorted with our real estate. But yes, data center, we love data center. Why? Because as it is, we are a company which was born to create rental income. And this is something which we've always been doing. We came back into residential only in 2010, 2011. Prior to that, we were only focusing on making commercial buildings and leasing them out. We understand rental income pretty well, and we want to focus on this in the future also. Of course, office demand keeps on changing, but this data center demand will keep on increasing. As of now, the country's capacity, everybody's talking about this capacity going almost 8-9 times than what it is presently there. So we see enough demand here, and this regular income will start. And like we discussed, the leases here are 10-15 years and further renewed because shifting a data center is not easy. Of course, new business, it is settling in right now. And you will see within the next 6-7 months, you will see a lot of settling in happening, and then things multiply. Got it. Got it. Got it. Thank you. Thank you, sir. Thank you. We have no further questions at this moment. Ladies and gentlemen, I would now like to hand the conference over to the management for closing comments. Over to you, sir. Thank you, everyone. Thank you for your time. We hope we were able to answer all questions. Our cloud website has already been uploaded. Our presentation, results for cloud, has already been uploaded. The real estate will be uploaded by tomorrow, maximum. You can have a look. Then if there are even any questions, management is more than happy to answer everything. So thank you once again. Like we said, we achieved a good year this time. So far, it has been the best. But we are pretty bullish, and the run rate will keep on kicking. The revenues from last year really went up. Today, the land bank which we are sitting on, we are very robust on the future as well. Thank you, everyone. Thank you. Thank you. On behalf of DAM Capital Advisors Limited, this concludes this conference. Thank you all for joining us. You may now disconnect.