Ladies and gentlemen, good day and welcome to Q2 FY 2022 earnings conference call of Brigade Enterprises Limited. We have with us on the call the management of Brigade Enterprises Limited. As a reminder, all participant lines will be in a listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star then zero on your touch-tone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. M.R. Jaishankar, Chairman and Managing Director of the company. Thank you, and over to you, sir. Thank you. Good afternoon and compliments of the season, ladies and gentlemen. We hope all of you and your loved ones are doing well. On behalf of the company, Brigade Enterprises Limited and Brigade Group, I would like to welcome you to the earnings call for the second quarter of financial year 2022. I'm joined by our Executive Directors, Ms. Pavitra Shankar, Ms. Nirupa Shankar, Mr. Amar Mysore. Our senior management team is also present. Mr. Atul Goyal, CFO, Mr. Rajendra Joshi, CEO Residential, Mr. Vineet Verma, CEO Hospitality, Mr. Subrata Sharma, COO Office, Mr. Om Prakash, Company Secretary, and Mr. Pradyumna Krishna Kumar, Senior VP. Last month, October 2021 marked the 35th anniversary of the Brigade Group, having launched Brigade Towers on Brigade Road, Bangalore in October 1986 in a partnership company. Bangalore, Brigade Towers is Bangalore's tallest private building at that point of time. Since then, we have come a long way from a single project firm to a multi-product, multi-city developer with more than 250 buildings and 71 million sq ft of construction. As we celebrate our 35th anniversary, we would like to thank all our customers, investors and well-wishers for the trust they have placed in our group over the years. We stand committed to our mission, vision, and values that have brought us to where we are today. For your information, the Brigade Enterprises Limited itself got listed on the 31st December 2007, and it was, as a private limited company, it came into being more in 2008. I mean, sorry, 1997, 1998. Coming back to our results update, the second quarter of financial year 2022, we saw a sharp recovery coming out of the pandemic. The bounce back in economic activity post the devastating second wave of COVID has driven the momentum across all our businesses. The residential business continued to drive our strong performance, registering significant growth on a quarter-on-quarter and year-on-year basis. We ended the quarter with net new bookings of 1.30 million sq ft, having a value of INR 814 crores, which is a growth of 73% by area and 74% by volume based on quarter-on-quarter. Hyderabad and Chennai continued to be important markets for us, contributing 28% by area and 37% by value. In Bangalore, our key projects, Brigade Cornerstone Utopia and Brigade El Dorado, are the primary contributors. We have also seen a sharp increase in demand for our premium projects, completed ones, Brigade Exotica and Signature Villas at Brigade Orchards. The trend of customer preference for larger units post-COVID continues. Larger established players have further consolidated and strengthened their position in the market as customers increasingly choose Grade A developers. We would also like you to note the conservative approach followed in terms of reporting our operational numbers. That is, our pre-sales numbers are always shown net of cancellations of bookings done in current as well as prior year periods. We also do not consider bookings towards pre-sale numbers unless a minimum of 5% or 10% of the agreement value has been collected along with all the required documentation. Our average realization is based on RERA agreement value of the customer and do not include any other expenses or transaction costs. On the revenue recognition front, we only report units where the customer has completed the entire registration process and not just taken possession of the unit. We have mentioned this just as a matter of clarity. On the collection front, we registered our second-best quarter so far at INR 744 crores from the residential business, driven by continued strong sales performance and good construction progress at all projects. The leading segment of the commercial business of Brigade remains stable with around 99% collections. The outlook is positive with the need for additional office space as companies have started enhancing employee strength in their respective offices and embarking on major hiring drives. We are already seeing genuine interest and intent and urgency among the small and midsize companies to acquire new spaces. Inquiries for large office spaces are gaining in pace as well. We have a strong pipeline, I won't say positive, of 1 million sq ft, and we expect 0.4 million-0.5 million sq ft closure in the ongoing quarter. I'm happy to inform you that the retail segment is almost back to its pre-COVID levels after being severely impacted during the two COVID waves and lockdowns. Occupancy across all three malls is over 85% with a multiplex format back to being operational with 100% occupancy level permitted. Overall, retailer sales consumption recovered to over 90% of pre-COVID levels. Primarily across categories like consumer electronics, leisure, key fashion anchor stores, eyewear, travel gear, and F&B. We welcomed two new hypermarkets, Simpli Namdhari's at Orion Gateway and All Market at Orion Uptown. We also added two new anchors, Home Centre and Max Fashion at Orion Gateway, and a taproom format, Geist Brewing. Furthermore, we have around 1.15 lakh sq ft under fit-out across our three malls, which will be operational in Q3 of FY 2022. Finally, we are encouraged to see a noticeable improvement in our hospitality business during Q2 as compared to Q1. With some amount of domestic corporate travel also commencing, we have seen an uptick in hotel occupancies across our hotels. Around 15%-17% of our room occupancies today are from corporate travelers, and this augurs well for the industry as travel restrictions and RTPCR requirements continue to be relaxed. At the same time, average room rates continue to remain at around 60% of the pre-COVID level, which is, you know, pulling down the gross operating profit of the hotels. All our hotels have turned GOP positive. I would say all eight hotels. Our F&B business, especially after the removal of 10:00 P.M. curfew in Karnataka, has also picked up with increased number of inquiries for banquets and MICE events for early next year. International business, however, remains subdued and will continue to be so until international travel restrictions are rolled back. We expect our hospitality business to show a consistent improvement from here on. With this, I conclude my remarks for the last quarter. Thank you for listening. Now, Mr. Atul Goyal, our CFO, will present the financial results in detail. Thank you. Thank you, sir. Good afternoon, everybody. On behalf of the company, we would like to welcome you on the earnings call for Q2 FY 2022. To give you a brief business update, as we all know, this quarter has been better than the last quarter in terms of business performance. To give you some highlights of our performance the last quarter, we recorded a real estate sales of 1.3 million sq ft during this quarter, vis-a-vis 0.7 million sq ft during last quarter. Collection in residential improved by 40% from Q1 FY 2021, totaling up to INR 744 crores in Q2 FY 2022. On the leasing side, we achieved a growth of 22% in revenues in Q2 FY 2022 versus Q1 FY 2022 due to additional rental income coming from new leasing in Tech Gardens, WTC Chennai and Southfield. We have started seeing significant uptick in the hospitality performance with increased ARR and occupancy levels. We have achieved overall positive GOP of INR 9 crores during Q2 FY 2022. On consolidated level, we achieved overall collections of INR 937 crores, an increase of 30% as compared to FY 2022. There was an increase in cash flow from operating activity by 37% to INR 213 crores as compared to Q1 FY 2022. We continue to have adequate liquidity and credit lines from the banks. Our average cost of debt has been coming down consistently over the last few quarters and is at all-time low of 7.92% as on September 2021. Our real estate debt has further reduced by INR 122 crores during the quarter due to improved sales and collections. Coming to the consolidated financial performance for Q2 FY 2022, the consolidated revenue for Q2 FY 2022 stood at INR 776 crores versus INR 391 crores in the Q1 FY 2022, which is a 98% increase. The real estate segment clocked a turnover of INR 598 crores and an EBITDA of 19% in Q2 FY 2022. The hospitality segment clocked a turnover of INR 41 crores and EBITDA of 18% in Q2 FY 2022. We expect consistent improvement in hospitality performance, given that there are no further COVID waves. The leasing segment turnover of INR 136 crores and EBITDA of 71% in Q2 FY 2022. The consolidated EBITDA for Q2 FY 2022 stood at INR 215 crores versus INR 120 crores in Q1 FY 2022. EBITDA margin stood at 28%. The interest and finance charges for Q2 FY 2022 stood at INR 113 crore. That after MI stood at INR 12 crore for Q2 FY 2022. In respect of consolidated performance, that is H1 FY 2022, the consolidated revenue for H1 FY 2022 stood at INR 1,168 crore versus INR 536 crore in the same half-year ending the last financial year. The real estate closed a turnover of INR 858 crore and EBITDA of 17% in H1 FY 2022 versus a turnover of INR 342 crore and an EBITDA of 16% in H1 FY 2021. The hospitality segment closed a turnover of INR 61 crore and an EBITDA of 7% in H1 FY 2022 versus turnover of INR 28 crore and a negative EBITDA of 65% in H1 FY 2021. The leasing segment closed a turnover of INR 248 crores and EBITDA of 73% each in H1 FY 2022 versus a turnover of INR 165 crores and an EBITDA of 73% in H1 FY 2021. The consolidated EBITDA, including other income for H1 FY 2022, stood at INR 336 crores versus INR 156 crores in H1 FY 2021. EBITDA margin, including other income, stood at 29%. The interest and financial charges for half-year stood at INR 226 crores. That after MI was negative INR 28 crores in H1 FY 2022. Coming to the debt position and its breakup, INR 345 crores in real estate segment that is there. INR 610 crores in hospitality segment, in which INR 502 crores is GOP securitized loans and INR 108 crores is CapEx loan. 3,172 crores is the leasing segment then, debt, in which 2,356 crores is securitized lease rental loan and 816 crores is CapEx loan. The cash and cash equivalents stood at 1,167 crores as on September 30, 2021. Consequently, the company's net debt outstanding as on September 30, 2021, was 2,961 crores, out of which BL's share was 2,029 crores. As mentioned earlier, the company's effective cost of debt stand reduced as on 30th September 2021 to 7.92% per annum versus 9.23% at the end of Q2 FY 2021. We have a credit rating of A+ with stable outlook, which has been assigned by both CRISIL and ICRA, which will increase lender and investors' confidence. I also want to share some leverage ratios that we track on a trailing basis. Interest coverage ratio stood at 1.5x in H1 FY 2022 due to improved EBITDA. Our net debt equity ratio stood at 0.83 as on September 2021. The company has a strong balance sheet and has sufficient liquidity to meet operational and expansion plans. Thank you. I'll now hand over back to the moderator for the questions. Thank you very much. Ladies and gentlemen, 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 remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Adhidev Chattopadhyay from ICICI Securities. Please go ahead. Yeah. Good afternoon, everyone. Thank you for the opportunity. The first question is on the leasing business. You mentioned out of the 1 million sq ft of leasing pipeline, you're expecting closures of around 0.4 million-0.5 million sq ft within this quarter itself. So on that, could you tell us the closure, when would the rental income start from these properties, in which assets? Going forward now, what is the revised target to fully lease out both Brigade Tech Gardens and World Trade Center Chennai? That was the first question. Yeah, Adhidev, this is Subrata. As far as the leasing are concerned, we are expecting around, as we said, 0.4 million-0.5 million sq ft in this quarter. We have a positive outlook based upon the recent pipelines that we have gathered. Suppose we close on entirety by, say, December, from then onwards, approximately on an average, five to six months would be the rent-free period. Two quarter from December would be the rent started. Okay, by around June, right? That's the understanding. Yeah. Yeah. The second part of the question, by when do we, what is our now overall timeline target for both Brigade Tech Gardens and World Trade Center Chennai? Yeah. As far as Tech Gardens is concerned, we are hopeful that in next four quarters we should be able to exhaust the entire inventory. Again, like as I said, now that companies are actually coming back to offices, the momentum is increasing, okay? Gradually from the small and mid-size inquiries, the large size inquiries are also coming by. Okay? As we progress maybe in the next quarter, the other view in terms of like, the intensity and the frequency of the transactions. As on date, we have a positive outlook of, say, four quarters from now. Four quarters. Similarly for Chennai, what is the- Chennai, we are hoping it would be sooner because the percentage of vacancy is quite less. Plus we already have existing tenants, which are market tenants, and all of which are actually on the growth phase. Okay. A kind of requirement would come from the existing tenants as well. Okay. You mean the hard option? Okay, fine. Hard option. Uh, and- Hard option. Yeah. That's the vacancy ones. Just another question is for Atul. For the quarter, could you just give the office and mall rental income breakup, and how much the Tech Gardens and WTC Chennai contribute to the rental income for this quarter? Tech Gardens contributed around INR 45 crores for first half, and Chennai contributed around INR 55 crores. If you want revenue breakup, for retail it was INR 31 crores for half-year, and for office lease INR 177 crores. Okay. These are all numbers are for the first half of the year? This is for first half. You want quarter? No, it's fine. We'll get the break up. Yeah. That falls from my side. No more. I'll join in the queue so I have more questions. Yeah. Thank you. Okay. Thank you. Ladies and gentlemen, in order to ensure that the management is able to address questions from all participants in the conference, please limit your question to two per participant. If time permits, you may join the queue for any follow-up. Thank you. The next question is from the line of Parikshit Kandpal from HDFC Securities. Please go ahead. Well, thanks to the management team for giving this opportunity. My first question is on the residential business. Now at the current run rate, we are almost annualizing at 5 million-6 million sq ft. We have a balance to be sold from existing projects, about 7 million sq ft. And we have about 35 million sq ft of land bank and 2 million sq ft of new launches planned. Just wanted a sense on the business development side, given the demand. There's a huge demand out there in the southern markets. We're not quite clear. The question, please, can be answered. One second. Yeah. Given the momentum in the southern markets on the residential side, I just wanted to get your sense from the management team that how are you looking at to ramp up our efforts on the business development, given just about a year's inventory in the ongoing projects left to be sold. Okay. Parikshit, first of all, yes, the sales momentum has definitely picked up. Last year we did about 4.4 million. We expect that we do better, similar or better. The point is that what we say, which is 6 million, is in our current projects with approvals, correct? In the current projects, there is an additional inventory of about 4 million-5 million sq ft, which is available, where we need to get approvals. Plus, we have a pipeline of few more projects which will add probably another two, three million. Our pipeline continues to be strong while we will focus on business development in terms of acquiring new lands for our future pipeline. Just to add, you know, the process of acquiring new lands is a continuous process, and we have finalized some new lands. There is some, for some we have signed a term sheet. For some, we are in the process of signing term sheets. We are also hopeful, so, you know, some of them would happen before the Q2 results. But it is due to various reasons, it is slightly pushed by a week or two. But it's a continuous process of replenishing the sold stock with the stock. Sir, I only have this issue that I see when I see your land bank. I really don't have much of visibility that how the growth of the company will come given kind of three to four years land bank, which we have. Out of this 25 million sq ft, which we have in Bangalore, how much of that really has a developable potential in the next three to four years? I would assume that not everything can come in. That would imply that your other land in Chennai and other places like Thiruvananthapuram and other smaller cities has not much of inventory, land inventory left, I think about 4 million-5 million sq ft. Largely, predominantly the sales contribution will come from Bangalore. Out of this 25 million sq ft of land bank, how much does really have a developable potential over the next three years and can be added to the launch pipeline? That is the second question. You can say other than the Thiruvananthapuram of that 14 acres or so, where the visibility of development is a bit less because you know both market conditions and the government has allotted but still not handed over the land. Rest of the things, they're all developable lands. There are no sticky situations. But the process of approval, et cetera, is there. If we have 34 million, 35 million sq ft or so, and if we are selling six million, seven million going forward, also, we have sufficient stock to take us forward. Naturally, every year we will also be adding maybe five million, seven million, or if not more of developable stock. Okay. One second. Right. No, we have always gone on this principle of having about five to six years of developable stock. Otherwise, the impact on interest cost is going to be substantial. That will also have its negative side in tough times. Okay. My second question is on the office business. Now, the office recovery, everyone is talking about a big office recovery and the reoccupancy planning out and, demand, pent-up demand over the last two years hitting the market. Do you really see the trend, wherein first of all our own hard options. Do you think the hard options will get exercised first or your, unleased area will get leased out first? No. If I were to get you correctly, so you the hard option. No, no. Whether which one will get leased the first. Whether hard option will get exercised. Again, see, this is the kind of question which again depends upon the various business models of the companies. Okay? Like if we were to talk about hard option like Mercedes-Benz, they recently took 100,000 sq ft from their hard option and converted, okay, because they have hired over the last two years. But there are also companies which are actually seeking spaces which are small and mid-sized, or even like in the range of 100,000-200,000 sq ft. They have not taken space over the last two years. Okay? It's very difficult to say which one will be converted earlier, but what we can say confidently, looking at the market and the kind of site inspections and the closures that are happening, the companies which are now actually scouting for premises, they really need space, okay? They are converting very fast. Like even in this quarter, we have already converted approximately 50,000 sq ft and we have a very positive outlook. Okay. This is the last question, if I may. On the rental business again. If I think third quarter FY 2020 we had given in the presentation of exit rentals and all the properties we had leased out about INR 510 crore. If I see your current rental debt is about INR 3,100 crore, and if I ascribe a LRD of about eight to nine times our rentals, or if you want INR 500, it should be close to about INR 4,500 crore potential debt which can be taken. Is there a possibility that if the growth capital is required, we can load up LRDs once all these properties get leased out, and we have a buffer of about INR 1,400 crore-INR 1,500 crore for acquiring land parcels, given the land bank for six to seven years? Yeah, you're totally right. There is an LRD potential in the company, and definitely we will use that for the growth capital in future. We will see as and when the leasing happens and we are able to take LRDs. Okay, sir. That's all from my side. Thank you and all the best. Of course, LRDs are at very, very low rates today. They are at very competitive rates, so it makes sense. Okay. Thank you, sir. Thank you. The next question is from the line of Girish Choudhary from Spark Capital. Please go ahead. Yeah. Thanks for the opportunity and many congrats on the 35th anniversary. Couple of questions. Firstly, what would be your pricing outlook in your projects considering the good offtake and also the cost inflation? I see average realization growth was 9% last quarter. Cost was being changed and- Girish, your voice is breaking. I would request you to please use the handset. One second now. Also network area, please. Thank you. Is this better? Yes. The question was on the pricing outlook in your key projects. Considering the offtake which we saw, which was pretty good, and the cost inflation, and if I see your realization, which was at 9% YoY, what was this in terms of the mix change and the price change? The increase due to mix change would have been substantial. Also, it's actually, I would say it would be 50/50 because the price increase that has happened is both in Bangalore projects and our Hyderabad and Chennai. Though a larger percentage came from Hyderabad and Chennai, where we were able to take up prices substantially. Therefore, I would say it is both mix and a price increase almost in equal proportion. On your question on cost inflation, yes, there has been a substantial cost inflation, close to about 5%-6% of the construction cost. We are therefore looking at taking up prices in absolute immediate future. That's today's business requirement. Okay. Got it. Second question is on the residential EBITDA margins. We are seeing this trending down to around 18%-19% levels for the last three quarters. If I look at your FY 2019, FY 2020 EBITDA margin, they were in the range of 23%-25%. Any reason why these are trending down versus historical levels? Also just wanted to understand what's the view going ahead in terms of margins. See, again, it depends upon the mix of project which has gone, which we have delivered. You see, the revenue recognition is based on AS 115. There are some older projects and new projects, maybe with a lower rate, the revenue has been recognized, and that's why there has been some reduction in EBITDA margins. Going forward we should see that EBITDA margins should be in the range of 22%-24% going ahead in residential. Got it. Good. I have just one more, if I may. This is on the retail portfolio. There was a mention that the increase in consumption was strong. Correspondingly, how are the rentals shaping up and are the rents back to pre-COVID levels? What's the outlook here? Because pre-COVID we saw rentals in excess of INR 100 crore. Are we on target to achieve those numbers? Yeah. With regards to the leased rentals that we are looking to get, I think this year we will probably touch around 65% of FY 2020 figures, and that's because Q1 was primarily under lockdown and Q2 was more of a recovery slow reopening of the stores. I think we can expect to get at least 65% of the pre-COVID rentals. That said, all the new leases that we are able to rent out to various tenants, we are actually being able to charge at least a 30% increase in the pre-COVID rentals. And also the weighted average of the rentals in all the malls will increase by at least 12%-15%. While FY 2022 will see only 65% pre-COVID rentals overall, at least the new leases that we're able to do are showing very positive trends. It's on average, as I mentioned, 30%. Got it. In terms of the existing rentals, fourth quarter, considering the inflation which you mentioned. Sorry, in terms of the average, rentals that we can collect? Yeah, yeah. See, basically we've given COVID relief to all the tenants. In Q2, about 75% of the brands had some sort of COVID relief. In Q3, about 50% of the brands will have COVID relief. In Q4, about 15% will have some sort of COVID relief. That's the reason why there is. When I say COVID relief, it is some relaxation in the rentals based on their sales performance. If the sales performance is above 80%-90%, then we'll receive 100% of the rentals. Got it. Thank you. All the best. Thank you. Thank you. Before we take the next question, I'd like to remind our participants to limit their question to two per participant. Thank you. The next question is from the line of Pritesh Sheth from Motilal Oswal. Please go ahead. Hi, sir. Thanks for the opportunity. Firstly on the residential demand, post quarter end, what was the momentum and how was the festive season, if you can highlight? Was the momentum strong, picked up from where we left in last quarter? The sales momentum does continue to be good. That's what we are seeing. Particularly as I've been saying, that this wave of COVID, the demand has been much more robust compared to last time. The economic impact of the second wave was much lower, and therefore the demand continues to be good. Did we see improvement month-on-month from September to October to November? Just directionally. Traditionally, October actually is not a very strong month in Bangalore specifically because of the Dussehra, Diwali holiday. This October was much better compared to our usual Octobers. Okay. Got it. Secondly, in your statement of deviation, you have mentioned INR 136 crore out of the QIP money has been spent. What was it spent for? I mean, is it for working capital or there were some land payments which you had to do that were done? No, mainly, we had repaid the INR 67 crore of loan for GIFT City, Gujarat office project. That was one. We had infused INR 50 crore of equity into the JV company that is BPPL. That is what has been used in the new projects. Okay. Got it. Lastly, just bookkeeping one. In terms of collections, what is the breakdown between residential, commercial, retail, and hospitality? For Q2, it is around INR 744 crores residential, INR 18 crores commercial sales, INR 67 crores commercial lease, INR 24 crores retail, INR 51 crores hospitality, and maintenance is around INR 33 crores. Got it. Thank you. That's it from my side. All the best. Thank you. The next question is from the line of Biplab Debbarma from Antique Stock Broking. Please go ahead. Biplab? Good afternoon. Yes, please go ahead. Yeah. Good afternoon, everyone. Sir, just two questions. One on leasing. The incremental leasing in office space that you are seeing, is the rental above the average rentals of that building or near around the average rental? How are the rentals you are getting in the incremental leasing the last say five, six months? Yeah. In terms of the rentals, again, it is a function of the property and the micro market. In terms of our property and the micro markets that are very strategic, in fact, we are achieving around 10% over the weighted average that we achieved pre-COVID in one of the major properties that is Brigade Tech Gardens. As far as North Bangalore is concerned, we are actually matching the rentals that were pre-COVID. Overall, we haven't actually gone down on the rentals. It's slightly above. In fact, on an average it is 5% above. Okay. That's good. The second question is on your you know, business development transactions that you are seeing. Just trying to understand because see, that you know, there is not much information asymmetry nowadays. Everything can be derived from social media and you know, various news channels. So looking at the positive feeling of real estate, are you seeing a you know, heightened expectation from JDA partners or the landowners, you know, are you seeing such kind of heightened expectations from the business development in Bangalore, Chennai or Hyderabad market compared to what it was, say, two years ago or so, one and half, two years ago? Basically, frankly, I must say recession, no recession, landowners expectations are always high. You know, there is, it is you know. Ultimately, it is only what we can afford to give based on the feasibilities of project. That is how it is. I think if the market improves, which is happening now, the expectations can go bit high. You know, lesser and lesser, if I'm right, number of people are still in a position to you know buy larger tracts of land. Many developers are not fully out of the woods. It is the situation is not all that rosy for many. It is recognized developers who have given value to the customer over a period of time, and those who have shown, demonstrated the ability to complete projects even in tough times have been rewarded. Many others are not in a position to, you know, buy lands. That way it is, the only select group are in a position to acquire new lands. That way the number of buyers have reduced considerably, whereas the number of sellers may be increasing. Sir, basically you are saying that not much change in expectation. It was always there. Yeah. And, uh, in this- So far not much change in expectation, but you know, we have to see on a quarter-on-quarter how it changes. Okay. Thank you, sir. Thank you. The next question is on the line of Amit Agarwal from Nirmal Bang. Please go ahead. Thanks for the opportunity. My question pertains to the residential segment. What I wanted to know was that you're hitting about 4 million-5 million sq ft, or if you take it annualized basis. Going forward, do you think it will be sustainable, you know, in the future years also? Secondly, followed by this, which segment is contributing? Is it INR 50 lakhs-INR 1 crore, INR 1 crore-INR 1.5 crores in that sense, which segment is contributing the maximum? Thirdly, is this increase of, let's say, 4 million-5 million sq ft run rate which you've got, is it because you've taken market share, or do you think the market itself has expanded? I'm not taking the, you know, COVID times, because COVID times is artificially low level. Pre-COVID level, you've kind of moved above what you were doing in the pre-COVID level. That's why I'm asking you, is it because the market has expanded or have you increased the market share? I would put it this way. It is because the market share primarily. The entire, I'm not just talking about Bangalore or Chennai, Hyderabad, or all over the country. It is the overall market. There could be one or two exceptions, I cannot rule out. Overall market is yet to reach pre-COVID levels. Overall market. That way if developers are posting better numbers, whoever is posting better numbers, it means there is a gain in market share. You know, the consolidation is happening and it is here to stay. Because of that I think it is sustainable for us and many others. Whatever numbers they are posting or the similar numbers they are likely to post or we are likely to post, as long as there are no nasty surprises in the external environment of the company, of the country or internationally. Otherwise it should be fine. I sometimes compare what is the kind of consolidation that is happening to the stock market itself somewhere in the nineties when National Stock Exchange came. You know, that led to closure of all regional stock exchanges with the exception of BSE. You know, whether it is Bangalore, Chennai or Delhi, Kolkata, Ahmedabad, Surat, everything sort of got closed. There are thousands of small-time stockbrokers or regional stockbrokers who had to shut shop or become sub-brokers to NSE or BSE, like that. Which segment is contributing to you? Is it INR 50 lakhs- INR 1 crore, INR 1 - INR 1.5? Some percentage maybe. For at least in the South Indian markets, the segment of INR 50 lakhs-INR 1 crore or INR 65 lakhs-INR 120 lakhs is the primary segment. Would you call that about 70%-80% of your sales, sir? Yeah, you can assume. It all depends on what stock we have and, you know, and it is also a bit dynamic. You know, if suddenly the prices shoot up, you know, then the affordability may still be same, and then there is likely people may come down a bit in their expectation. The last two years, the savings rate of people has gone up, last pandemic period. With the result, people have seen, you know, are having a higher or increased affordability, which has resulted in people going for a slightly larger budget. Sure. One last question. In terms of going forward, in terms of net debt to equity, you are comfortable right now. You know, in the future expansions, what will be the ideal net debt to equity for you? Would it be 1:1 to 1: 0.5? What would be the ideal number for you, sir? See, normally it is 1:1. 1:1 is ideal, debt equity. But when it is, when the debt is largely comprised of lease rental discounting, I think both the analyst community and, you know, the bankers will take a lenient view on the debt equity ratio. If you see our own debt equity of 0.83, you know, something like 0.5 is comprised of LRD, and only about 0.17 debt equity is comprised of residential. The balance is the CapEx project, which will also get converted to LRD maybe in 12 months time, 15 months time. Even our whatever hospitality debt we have, INR 600 crores, INR 500 crores it was. Only during pandemic, about INR 100 crores became ECLGS debt. Even our entire hospitality debt was securitized from the GOPs. You know, our parts of the hotels were fully taking care of the debt of hospitality. That is also more like LRD. That our you know debt equity is quite healthy. I just said about 50%. In reality, 57% is LRD debt and CapEx is about 30%. Sure. Thanks a lot, sir. That's all from my side. Thank you. Thank you. Our next question is from the line of Prem Khurana from Anand Rathi. Please go ahead. Yeah. Thank you for taking my question, sir. Congratulations, very good set of numbers, and especially to the entire team, for having managed the balance sheet so well, and especially on the residential real estate side, wherein debt has been declining, for a while now, and it's almost five quarters now. Sir, my first question was with respect to business development only again. Sorry to harp on this again. I think last quarter when we interacted, we were made to believe that we were working on a couple of transactions in Bangalore and there was something in Chennai as well. Hyderabad was also on the radar. If you could share some updates on these. I mean, where are we in terms of, I mean, these acquisitions or additions? Any progress made during the quarter? You can say, like it is as I mentioned earlier, it is an acquisition of new properties is a continuous process. You can more or less say, I mean, I may not be able to share how much clearly and which city, et cetera. We have sort of finalized about 3.5 million sq ft of residential space development, equivalent to developable area of 3.5 million. We're in the process of finalizing, hopefully in this quarter, another 3 million sq ft may happen. It is a continuous process, but we need to. We should not just because there is money in the bank or reserves, we cannot afford to make hasty decisions. We have to go through the usual process. People make maximum mistakes when there is money. The wisest people are people who don't have money in the pocket. Thank you. The next question is from the line of Naresh Vaswani from Sameeksha Capital. Please go ahead. Naresh, your line is unmuted. Please go ahead with your question. It seems there is no response from the line of Naresh. We will move to our next question. That is from the line of Parvez Akhtar Qazi from Edelweiss Securities. Please go ahead. Hi. Good afternoon, sir. Thanks for taking my question and congratulations for a great set of numbers. Two questions from my side. Assuming everything goes well, what is the kind of exit rentals that we can see in our office and the retail segment, let's say by the end of FY 2022? Second, just wanted to get what was the share of non-Bangalore cities in our sales during this quarter? Thanks. We don't give guidance, but 2023, we expect that our revenue from leasing segment should be in the range of INR 550 crores-INR 600 crores. It depends upon how the leasing happens and how the things go further. We are hopeful that we should achieve that number by end of 2023. Sure. About the sales breakup for this quarter? Yeah. Sales breakup of residential or- Yeah, residential. How much of the sales bookings came from Hyderabad and Chennai? Oh, okay. In Q2, about 37% by value came from Hyderabad and Chennai, and balance from between Bangalore and Mysore. Mysore is very small, most of it from Bangalore. Thank you. That's it from my side and all the best. Thank you. The next question is from the line of Mohit Agrawal from IIFL Securities. Please go ahead. Yeah, thanks for the opportunity. My first question is basically on the hospitality portfolio. Now that we are seeing signs of recovery, and we had earlier pre-COVID, we had plans to expand into hospitality portfolio. Any plans there to revive you know that CapEx, or how you're looking at capital allocation in the hospitality sector? And linked to it is that, are you also looking at a stake sale which was there on the anvil before COVID had struck? See, as I said earlier, we have eight operating hotels which are all operationally cash positive. Only thing is, you know, they're yet to recover the interest outgo and depreciation, which we were doing pre-COVID. Pre-COVID we were doing that. At some point of time, we had during the COVID time four new hotel properties which were to come up. Out of that, one where the building had already come up, we had put it on a hold. That we will restart sometime in Q1 of next financial year and complete it in FY 2023. The remaining one was at a foundation stage. We have still kept it on hold. Two more properties which were under construction at initial stage are a bit advanced. We are repurposing it into a saleable product, residential office like that. As far as stake sale is concerned, that thought still continues. The conditions, market conditions are still not conducive for us to go ahead with the stake sale unless we may try to sell at distress, which we do not want to. The situation does not, you know, recommend such a distress approach. Because on the other hand, we ourselves may be open to buy a distressed hotel if we get it, you know. Because the trend is improving. As we said, the occupancy in the Q2 is 45% average occupancy as compared to 23% in... Some of our, that too because we have two hotels which were new and slightly depressed conditions like our Four Points by Sheraton Kochi with very severe restrictions in Kochi during COVID time, so that took the brunt of it. Similarly, Grand Mercure Ahmedabad GIFT City, which in reality is a new hotel. It started in 2020, you know, January 2020. In March, the lockdown was announced. After that it has not, you know, there was no time to recover. If you remove those two hotels, our average occupancy is in the range of 55%-57%. Some of our hotels, like the one in Mysore, Grand Mercure Mysore, is doing better than pre-COVID times. Grand Mercure Mysore is doing better than pre-COVID times, both in terms of occupancy and ARRs, both in terms of that. Even Grand Mercure Bangalore has posted 82% occupancy in, you know, the Q2. That trend on other hotels have shown much better occupancy rates. We are particularly once the international travel starts, I think the market will recover with a vengeance. That is what I feel, which is what is noticed in say retail. Yeah. Yeah, sure. Sir, how many keys in total are we planning, and what is the pending CapEx here? No, no, I think the pending CapEx may be just about INR 50 crores, that's all. The CapEx may be just about INR 50 crores pending. That's all. No, nothing significant. Okay. Sir, secondly, on the residential segment, we've earlier in our calls, we have alluded to doing about, you know, north of 20%-25% kind of growth on an annualized basis for the next two to three years. Just wanted to, you know, Can you reaffirm that? You know, do you think that is on track to do about 20%-25% plus in the next two to three years? We will certainly work towards that. One thing we can clearly and confidently say that with the kind of equity that we have and the kind of product lines that we have built over the years, we certainly will aim towards it. It will depend on market conditions in various factors, but we will certainly aim towards that, and we believe there is room for such growth in the coming years. Sir, is this growth in volumes or is this value growth? If it is value, then what is the kind of price hikes you are building in this? It will largely be volume growth because as you would know, the South Indian markets, the prices don't move as, they would, probably say in Mumbai or some similar markets. It would be largely volume growth. The price growth would depend on the kind of location that you are in or micro market that you are in in each of the cities. Okay. Any pricing growth will be over and above that. That's right. Yeah. Yeah, sure. Thanks a lot, sir, and all the best. Thank you. The next question is from the line of Jay Daniel from Entropy Advisors. Please go ahead. Yeah. Sir, I'm just revisiting what you said in your last call. You said that if you put in INR 500 crore in land acquisition, that will generate sales of around INR 5,000 crore-INR 6,000 crore, if it's outright purchase, and if it's a mix of JV joint development, then the sales generated could go up to INR 10,000 crore. This would be at a margin of 25%. Am I right? I don't know whether I said INR 5,000 crore and INR 10,000 crore. I'm not, I don't clearly remember. The margin, which is EBITDA. EBITDA in that scenario is that I did not say. I did not mean PBT. It is EBITDA will be that. I honestly don't remember. We can go through the recorded message and revert to you if we have said anything like that, INR 5,000 crore and INR 10,000 crore. Yes, sir, you did. Now, if I were to revisit that number, what would it be? On INR 500 crore of outright land purchase, how much revenue can you generate? I will, you know, to avoid any confusion, I can get back to you. You know, otherwise, off the cuff, I may not want to say that because you're saying you have a figure of INR 5,000 crore-INR 10,000 crore. It won't be. I will come back to you. Revenue of that. It is possible, not possible, I will get back to you. Okay, sir. We will. Our Company Secretary will get back on that. Okay. Okay, that'll be nice. Thanks a lot, sir. Thank you. The next question is from the line of Shivam Joshi from Centrum. Please go ahead. Thank you for the opportunity, and congratulations for good numbers, sir. Most of my other questions are answered. I just wanted to have some idea about your upcoming launches. What you mentioned in your presentation on the RE side, roughly 2.2 million sq ft of launches are planned. Could you give us a timeline whether those launches are only for the next quarter or for the balance second half of the year? Yeah. Basically, these are launches that we are planning in the second half of the year. That is what we are looking at. And, um- Where we have a- Yeah, yeah. Please, please continue. Yeah. Where we have a clarity on the kind of approvals that we will get. I mean, that is very important. Yeah, final approvals that we get. That is what we are talking about. Are these launches predominantly in Bangalore or is there a component of non-Bangalore projects also included in the sale? Could you give us a broad break-up of that? Yeah. All Bangalore except one that we are talking, which would be in Mysore. Plots in Mysore. Other than that, all other projects are in Bangalore. Okay. Just confirming, did we have any launch in October and in post September ending quarter? No, we haven't had any. No, we didn't. There are last two months, 2.5 months due to some confusion in the local approval authority. There is a, you know, I would say that temporarily it is suspended approvals from the month of August. I think it is likely to be cleared in the next few weeks. Other than the approval process will start. Okay. Lastly, when I'm looking at the ongoing projects and the completed inventory, roughly Brigade share of unsold inventory stands at around 6.8 million sq ft. What is the broad timeline that you have? I mean, for the ongoing projects, what will be on a blended basis completion stage of those projects? This roughly 6.8 million sq ft, how long do you think you would take to sell large part of this unsold inventory, which is currently there in the ongoing and completed projects? It can be very approximately you can take it as about six quarters. Okay. The last question from my side. In addition to the launch pipeline that you have given, which is where you have reasonable clarity on the approval, what would be the tentative launch pipeline from the land bank in next year? If you can give us some numbers. That will be my last question. No, it can be definitely in addition to this 2 million-2.5 million sq ft that we'll be launching in this quarter and another 5 million sq ft of, you know, projects can definitely be launched. In FY 2023. Yes? Yes, yes. Oh, okay. Thank you. Thank you so much for- Yeah, yeah. Thank you. Thank you so much for answering the question. Thank you. Thank you. Thank you. Ladies and gentlemen, we'll take the last question from the line of Venkat Samala from Tata AMC. Please go ahead. Hi, sir. Thanks. Thanks a lot for the opportunity. Most of my questions have been answered. It's just about the approval problem that you mentioned some time back. Is it something that all the developers are facing in Bangalore? Can you give some more color on that? Yeah, it is all the developers are facing in Bangalore. It is basically the background is, sometime in October, middle of October or so, the High Court of Karnataka. I believe I said October, it is August. Sometime in August, the High Court of Karnataka gave an order against the BBMP on collection of certain fees and cess, which they were collecting all these years. Maybe one or two small term developers had objected to that. The order went against the authorities. The authorities are, I would say, engrossed in how to overcome that, and they're coming up with, I think as recent as the day before, the cabinet has taken some decision which they will implement in the next week or 10 days. More than developers, the local developer, you know, the city municipal authorities are more interested in collection of their revenue. They're equally interested to resume the approval process, and I feel it's, it'll get resolved very soon. Right. Do you think this could be a dampener for in terms of near-term sales? Near-term sales, it can't be a dampener at all. On the other hand, who knows, it may help in sale of existing stock at higher rates. Okay. Sure. One last question, sir. Hospitality side, if I look QOQ, the debt has increased by about INR 50-odd crores. Can you give some color as to, you know, what has really happened there? No, it is mainly because of the ECLGS which has been taken. You see, there are two ECLGS lines which has come for hospitality. That was ECLGS two and ECLGS three. The timelines for them that was till September. Those ECLGS lines have been taken. That's why there has been an increase. Okay. It was already there. Now it is visible. Is that the way to look at it? Yes, yes. It is visible. We have still INR 60 crore-INR 70 crore of ECLGS which we can take, but we'll take as and when we require for the repayment going forward. Right. When do we expect for the hospitality business to be cash positive after considering the interest expenses? It should be at least one year. I think now things are improving. Business travel has started and i nternational travel is also going to start. I think, by four to five quarters, we should be able to achieve that. Okay. Sure. Thank you. Thanks a lot. Wish you all the best. Thank you. Thank you. Ladies and gentlemen, that will be our last question for today. I now hand the conference over to Ms. Pavitra Shankar, Executive Director, for closing comments. Thank you, and over to you. Thank you everyone for joining our call today. Apart from financial and operational updates, I'd like to give you a glimpse into the other successes we hold dear. We've been ranked for the last 11 years among the top 100 best places to work in India by the Great Place to Work Institute and The Economic Times survey. We are one of only three companies to have done this. This year we have the additional honor of also being recognized as one of the best places, best workplaces for women as well. We're thrilled to receive this as this is a cause close to our hearts. Sustainability is also intrinsic to our core values and design philosophy, and we are extremely proud to have received the ESG India Leadership Award 2021 for leadership in green product and service. Brigade has more than 20 buildings that are platinum or gold certified buildings by LEED and IGBC, and reaffirms our commitment to developing projects in a sustainable manner. Despite the pandemic, our PropTech accelerator, Brigade REAP, has enabled 11 startups from our portfolio to raise capital and one exit. One of them, LiteStore, has opened India's first flexi-retail store at our flagship mall, Orion Mall at Brigade Gateway. LiteStore offers disruption in the retail industry by giving premium retail spaces which can be rented out on an ultra short-term basis. This shows how prime retail spaces can be democratized by brands who would otherwise be who present only online. The Indian Music Experience, or IME, founded and supported by Brigade, took on two major community-focused projects, Yuva in Culture, supported by the British Council, and Project Svarita. Both projects broadly aim at making the museum a democratic, inclusive space that encourages diverse voices. With that, our H1 FY 2022 analyst call. Thank you all for taking the time to hear from us today. We look forward to a brighter Q3 and Q4 and hope that a third wave is not in the offering for our country. Stay healthy and stay safe. Thank you very much. Ladies and gentlemen, on behalf of Brigade Enterprises, that concludes today's call. Thank you all for joining us, and you may now disconnect your lines.