Ladies and gentlemen, good day, welcome to Brigade Enterprises Limited Q4 FY20 23 Earnings Conference Call. 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 the conference call, please signal an operator by pressing star then zero on your touchtone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. M. R. Jaishankar, Chairman of the company. Thank you, over to you. Good afternoon, everyone. Welcome to the Brigade Enterprises Q4 Financial Year 2023 Earnings Call. I'm joined by our Managing Director, Ms. Pavitra Shankar, and Joint Managing Director, Ms. Nirupa Shankar. Our Executive Directors, Mr. Amar Mysore, Mr. Roshan Matthew, the Senior Management Team, Mr. Atul Goyal, CFO, Mr. Om Prakash, Company Secretary, Mr. Pradyumna Krishna Kumar, Chief Business Development Officer, and Mr. Viswa Prathap, Chief Sales Officer, Residential. I'm happy to report. And their teams, of course. I'm happy to report that Brigade has achieved its highest sales figure to date for both the quarter and the year. This remarkable accomplishment can be attributed to the outstanding performance of all our business verticals, each contributing significantly to our record-breaking numbers. Looking ahead, we anticipate maintaining and building upon this momentum across all lines of business. We have a promising pipeline of new residential projects, a thriving leasing business, and projected growth in our hospitality sector throughout the next financial year. As a validation of our consistent performance, I'm happy to say our credit rating has also been upgraded by ICRA from A plus positive to AA- stable. Coming to individual SBUs or sectors, residential. I'll talk about residential now. In financial year 2023, Brigade achieved an all-time high with new sales in the real estate segment of 6.3 million sq ft and value of INR 4,109 crores. Of this, residential sales accounted for 6.075 million sq ft, amounting to a value of INR 3,908 crores. The balance is by strata sale of commercial office space. This reflects a significant growth of 31% in terms of area and 32% in value compared to the previous financial year. Our total collections reached INR 3,721 crores, a 21% rise from the previous year. During financial year 2023, we forayed into plotted development segment and launched 3 new plotted projects, almost completely selling out on launch and accounting for about 1 million sq ft from this segment alone. Q4 FY 2023 has emerged as our best-performing quarter in the residential business, with new sales of 2.33 million sq ft, valued at INR 1,463 crores. This was complemented by strong collections of INR 984 crores in the same quarter. These achievements were supported by launches of new projects, namely Brigade Calista, Brigade Valencia, Brigade Oak Tree Place, The Residences at Brigade Tech Gardens, Brigade Oasis Phase 2, and the Luminaire Block at Brigade El Dorado. Mid-segment and upper-mid segment housing continues to see the highest demand, with customers preferring larger units despite increasing prices, even during the launch phase. Despite higher interest rates, there has not been any pullback in the demand for home loans. Additionally, we were able to successfully sell out some of the projects launched earlier. The residential sector has a strong outlook due to stable demand in our target markets, with a sales revenue of CAGR 36% over the past five years, and setting new records each year. We have a robust pipeline of upcoming projects. An additional 7.55 million sq ft will be added to our portfolio over the next four quarters. We are actively pursuing and acquiring lands in our markets of Bengaluru, Chennai, Hyderabad, and Mysuru. Coming to office SBU, the office segment market had a relatively good year despite a turbulent macroeconomic environment across the globe. There were concerns of a recession in Europe and the United States, this has led to a delayed decision-making for large office space requirements. Office parks have seen an improved occupancy ranging from 45%-65%. Asia is the bright spark, with the highest return to office levels of workforce. Brigade's office verticals saw a 43% increase in revenue from INR 450 crores in FY2022 to INR 654 crores in FY2023, and saw a 108% increase in the leased area from 0.6 million sq ft in FY2022 to 1.25 million sq ft in FY2023. As regards retail sector, the retail industry had a blockbuster year due to an increase in discretionary income and consumer sentiment. Customers prefer to shop in-store across various site categories, including restaurants, movie theaters, and family entertainment centers. With rising urban population and per capita income, India's organized retail market will continue to show robust growth. Brigade's retail rental income was INR 156 crores, a growth of 60% in FY2023 over the past fiscal year. Footfalls increased by 106% over the past fiscal year for the mall SBU. The weighted average rentals of our large destination malls increased by 13% over FY22. Coming to hospitality SBU, our hotel portfolio showed an impressive revival in occupancies, ARRs, and F&B revenue, banquet events, both social and corporate, leisure, and group travel. Portfolio occupancy reached 69% as against 62% of pre-COVID occupancy. ARRs in FY2023 touched 110% of pre-COVID levels, and 67% over FY2022. This positive trend was supported by the restart of international flights, an uptick in corporate movement, and the scheduling of major events. Revenue grew INR 179 crores in FY2022 to INR 394 crores in FY2023, an increase of 120%. The MICE, which stands for Meetings, Incentives, Conferences, and Events segment, MICE segment, is likely to see increased bookings from G20 delegates, as many of these events are held in hotels and conference centers. Overall, indications are strong that the hospitality business will continue its growth path in the coming year as well. That brings me to end of our operational highlights. Thank you for listening, and now request Atul Goyal, our CFO, to take you through the financial highlights. Thank you. Thank you, sir. Good afternoon. On behalf of the company, we welcome you to the earnings call for Q4 FY 2023. Chairman has already shared operational highlights. I'll be sharing key financial highlights for the quarter and the FY20 23. All the verticals of the company, as told by Chairman, has done very well in Q4 as well as in the full year for FY20 23. For to start with company's update for Q4 FY20 23, the real estate segment clocked a turnover of INR 573 crores, with an EBITDA of 12% in Q4 FY20 23, whereas the same for Q4 FY20 22 stood at INR 729 crores. The leasing segment clocked a turnover of INR 188 crores, with EBITDA of 71% in Q4 FY2023, whereas the same for Q4 FY2022 stood at INR 181 crores. The hospitality segment clocked a turnover of INR 112 crores, an increase of 102% from the same quarter last financial year, with an EBITDA of 35% in Q4 FY2023. The consolidated revenue for Q4 FY2023 stood at INR 872 crores as against INR 965 crores in Q4 FY2022, with an EBITDA of INR 232 crores. EBITDA margins stood at 27%. Consolidated PAT after MI for Q4 FY2023 is INR 69 crores. We saw a significant jump in total collection in Q4 FY2023, which totaled up to INR 1,463 crore, as compared to INR 1,328 crore in the previous quarter of 10%. There was an increase in cash flow from operating activities by 24% from last quarter and stood at INR 436 crore during Q4 FY2023. Coming to group's performance for full year, FY2023, we have achieved the highest ever collections for FY2023, which stood at INR 5,424 crore, an increase of 33% from previous year. The revenue for FY2023 stood at INR 3,563 crore versus INR 3,066 crore in the previous year, an increase of 16%. The real estate segment clocked a turnover of INR 2,418 crores, with an EBITDA of 13% in FY 2023, whereas the same for FY 2022 stood at INR 2,290 crores. The leasing segment clocked a turnover of INR 752 crores, an increase of 26% from the previous year, 71% in FY 2023. The hospitality segment clocked a turnover of INR 394 crores, an increase in 120% from the previous EBITDA, and EBITDA of 30% in FY 2023. The consolidated EBITDA for FY 2023 stood at INR 978 crores, an increase of 17% from previous year. EBITDA margins stood at 27%. Consolidated PAT after minority interest for FY 2022 is INR 291 crores. Coming to the debt and liquidity position. We continue to have adequate liquidity and undrawn credit lines from the financial institutions. Our average cost of debt has been contained at 8.67%, which is an increase of only 102 basis points, though repo rate has grown to 250 basis points, has increased by 250 basis points. Debt management has been good. Gross debt as a of the entity is today INR 3,830 crores. The cash and cash equivalent was INR 1,690 crores as on March 31st, 2023. Consequently, the company's net debt outstanding as on March 31st, 2023, is INR 2,139 crores, out of which BL's share is INR 1,474 crores. Our real estate debt reduced by 83% during FY 2022 from previous 10 and stood at INR 46 crores as on March 2023. We have a zero residential debt in BL standalone today, because of the higher sales and collections, and almost 76% of the debt pertains to the commercial portion, which is backed by rental income. Debt equity ratio stood at 0.55 as on March 2023 at consolidated level. I now hand over it back, the mic back to the moderator for questions. Thank you. Thank you. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on the touchtone 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 comes from the line of Adhidev Chattopadhyay from ICICI Securities. Please go ahead. Good afternoon. Thank you for the opportunity. Just a couple of questions. Considering our business development pipeline and whatever planned launches for the upcoming year, what would you like to share some guidance on the residential sales booking front for the next year? That is the first question. Second is on the office leasing, by when are we targeting to see a full lease-up of the vacant space which we have? Thank you. Good afternoon, Aditya. On the launch pipeline, we have already indicated around 7.5 million sq ft to be launched on the residential side. That GDV should translate to around INR 6,000 crores at the top line. Of that, Brigade share would be around INR 5,200 crores. The bulk of this should come between Q3 and Q4, pretty similar to what we saw in FY2023. Also, about 25% of it will come from our residences at Brigade Icon, which is a TBS mounted property that we acquired. There is some, you know, there is some dependency on that launch to happen to reach those kind of GDV numbers. On the leasing side, we have around 1.9 million sq ft to be launched across three projects in Bengaluru itself. I'll let Nirupa answer the leasing question. Hi, Adhidev. The good news is that with all our non-SEZ projects, all those have been leased 100%. As you know, SEZ properties have been taking a little longer time than expected. If you look, 87% of the office space leased was non-SEZ projects. For us, all our non-SEZ projects are 100% leased. The three SEZ projects that we have, Brigade Tech Gardens, World Trade Center, Chennai, and GIFT City. Even GIFT City was actually fully leased, but due to some lack of approvals for some clients, some space came back. The thing is, the good news is that all our existing tenants are looking to expand their existing office spaces. We are hopeful that, you know, over the next 2- 3 quarters, I would say we should, the target is to complete this leasing. There is some, the way in which transactions are happening are changing. People are trying to reduce how much space they take up, and there's rationalization office space take up. Generally, we are happy to note that our existing clients are the ones who are looking to expand in our current office spaces. To understand it correctly, to get over the issues in the SEZ space, you're saying the existing SEZ clients who are looking to expand. Is that understanding correct? Hello? Yeah, sorry, the it was on mute. Yeah. What we've been able to do is, because of the quality of our projects, even clients who were not looking at SEZ areas, we're able to bring them to our space and figure out a way to convert them into using SEZ areas, along with the fact that our existing tenants are looking to expand. We're not just saying, "Hey, our existing tenants will expand," and leave it at that. We are definitely working towards converting even non-SEZ clients into using SEZ areas. We're just sort of educating them on how, with the right paperwork, this can happen. There is traction, it's just going slower than what we would like it to be. Okay. Just to coming back to the first question: With the launch pipeline, so are we again targeting a 15%-20% growth in the sales number for 2024? Any number you'd like to specifically share on the residential side, that is? As you know, we have never guidance. Last year, I would say we showed a 36% increase on 22 numbers. I'm not promising the same. I think what we always do is to show a CAGR, a five-year CAGR of around 20%. I think we'll try to do something along those lines. As I said again, it's heavily dependent on the launches coming in. We have no issue with the launches actually happening. It's just about timeline and planning it and getting the, you know, approvals, which may not always be time-bound to the way we need them to be. Okay, just one last housekeeping question. How much of the sales in Resi for this quarter were from the new launches in Q4, out of the overall sales? In Q4, 60% was from the launches. That was anyway expected. We were communicating that all along. Sorry, for FY 2023 full year, it was only 40% of the total sales run. Oh, okay. About 50%, right, for this quarter, you said? Six, zero. Five, zero. Six, zero. Okay. For the quarter. six, zero. Okay. Okay, fine. Yeah. Thank you very much. I'll come back if needed. Thank you. All the best. Thank you. Thank you. Before we take the next question, a reminder to all the participants, please restrict yourself to two questions. The next question comes from the line of Karan Khanna from Ambit Capital. Please go ahead. Yeah, thanks for the opportunity. Congratulations on another great year. Pavitra, you spoke about 20% CAGR is what you're targeting over a five-year block. Over the last five years, from 3 million sq ft, you've gotten close to 6.3 million sq ft. That implies a 20% CAGR. Going forward, how should one think about this number? If I look at the launch pipeline also on a rolling four-year, four-quarter basis, this show at 1.5 million sq ft at the end of 2Q, now it's close to 7.3 million sq ft. If you can briefly talk about the capabilities that you're building to, you know, continue the 20% CAGR over the next five years. Second, how should one think about the execution over the next five years, considering that the pricing environment could also be slow compared to what we've seen in the last five years? Yeah. Hi, Karan. Obviously, as you pointed out, our business has doubled over the last few years. I think we are keeping in mind that the base itself has increased substantially, so promising that that would also double in the next few years is not something that we're trying to communicate here. We have also been investing and resources in expanding Chennai as our second market. I'm happy to say that, the growth in terms of business development and the projects coming into the pipeline will also be evident, in terms of Chennai contribution in Q4 and in FY 2025 onwards. I would say that, you know, in the next couple of years, we would be trying to done in FY 2023. We would not probably be estimating, numbers or growth as we have shown in FY 2023 over the previous year. I hope that answers the question. Sure. My second question on the hospitality business, you know, for the record quarter that hotels have seen, this year, you were able to generate around 30% EBITDA margin. Well, when we look at some of the other domestic players, asset, heavy players, for their own portfolio, especially in India, they've been able to do margins in the range of 40%-55%. If you can talk about areas where you think that Brigade can also see an improvement in the hospitality segment, and going forward, is it only the pricing that will drive the margin improvement for the hospitality business? We generally, our hotels have been performing well in terms of geo and the occupancies. There are only two hotels in a relatively soft market, the Grand Mercure in Gujarat, in Gift City, and the Four Points by Sheraton in Kochi. Apart from those two hotels, all our properties are doing very well, and we expect that, you know, the efficiencies will improve going forward. Sure. Lastly, on Brigade Square, Trivandrum, what's the targeted lease rental and the completion dates for this project? It's just started construction, so it'll take at least a couple of years more to come into the market. We're expecting to be around INR 55 crore on average. All right. That's it from my side. Thank you, and all the best. Thank you. Thank you. Next question comes from the line of Murtuza Arsiwalla from Kotak Securities. Please go ahead. Yeah. Hi, thank you. Just a couple of questions from me. One is, while backward-looking, you know, if we look at the residential P&L, the margins have sort of been weak in, you know, for almost all of FY 2023 compared to the preceding years. Any specific reason for it, and how should we think of margins going forward? Second is, you know, the fourth quarter on the leasing business, there seemed to be a sequential drop in both revenue and EBITDA. Any specific reason for that? We saw large payments for land, investment in land purchases, et cetera. Any details that you would like to share on the same? Yeah. Hi, Atul here. See, the margin is always dependent in real estate, is how much revenue you are recognizing. As per Ind AS 115, you can recognize the revenue only when your registration gets done. All your expenses get loaded on the same revenue, and that's why there is some margin difference. Secondly, I would also like to say, we were having some affordable housing, which we were closing, and because of that, where margins were less, and those all revenue has been recognized during the year. Next year, definitely, you will see a very good margin in real estate business. lead rental, yeah, there has been a drop of around INR 8 crores-INR 10 crores, but that is mainly because some of the CAM charges and all, there was a delay. now that is getting sorted out. We have already acquired a new company called Tandem. We are increasing our overall revenue. That will also get sorted out by next quarter. You'll not have that quarter-on-quarter so much variation as it is showing this time. Sure. On the land purchase? Land purchase, yes. You want to know how much total money we have spent on land purchase? No, that's given in the presentation, but any more details on which land this payment was made towards? Yes. Well, I'll... In Q4, we concluded the previous and Mount Road, so that's the increase in the land payments that you're seeing, specifically in Q4. Okay. There are some other properties, JDA, which we have done in Chennai, as well as some purchases in Bangalore. All those are included in the new land purchases, which is there. Sure. Thank you so much, sir. Yeah, thank you. Thank you. Next question comes from the line of Biplab Debbarma from Antique Stock Broking. Please go ahead. Thank you for taking my questions. My first question is on FY2023, and the sales that has come. What is the split between Bengaluru, Chennai, and Hyderabad? Sorry, your voice is not clear. Sir, what is the split of sales in FY20 23- Oh. 2023, from Bengaluru, Chennai, and Hyderabad? In the last financial year, we had 82% of it come from Bengaluru, and the rest of it come from Mysuru, Chennai, and Hyderabad. 10% of it came from Chennai. We also had a plot development project launch in Mysuru, which accounted for around 4% of the total. Okay. My second question is, currently in Bengaluru, what are the micro markets, neighborhoods, where you have lesser presence? Shall we expect Brigade to increase its the footprint in this micro markets in coming years? Sorry, I couldn't hear on which market we have less presence. In Bengaluru, what are the micro markets, or neighborhoods that you have lesser presence? Do you expect to increase our footprint in these micro markets going forward? I wouldn't say we have lesser presence in any specific micro market. The markets that perform well in Bengaluru are east, southeast, north, and depending on the types of product, even south and west do well. I think Bengaluru overall is a very healthy residential market with good performance in all the micro markets. We have seen our portfolio also, a lot of the launches came in in Bengaluru East and North over the course of the last financial year, and all were taken up pretty well. Even in the coming launch pipeline, it continues to be the same. We have a lot of launches coming up in East and North Bengaluru. If I can draw a note also, last year in FY 2023, we had two projects launched in South Bengaluru, Brigade Komarla Heights and Nanda Heights. They did extremely well and are contributing, especially to the higher realization of our portfolio. I wouldn't say that we don't have presence in certain micro markets, and depending on the micro market, we have adjusted the product and pricing strategy as well. I'm very confident of our Bangalore execution. Thank you. Thank you. That's all. Thank you. Next question comes from the line of Rakesh Wadhwani from Monarch AIF. Please go ahead. Hi, team. Thank you for the opportunity. One, congratulations on the great set of numbers in Q4 and the full year. I have a question. There's a new article that is circulating, that the government of Karnataka may increase the, let's say, circle rate by 20%-30%. Just want to understand what is the impact you can see? One more thing, whatever deals we have done in the past, are they above this minimum recurring rate? That's it. Yes, this is Jaishankar. I don't think there will be any negative impact on government increasing the minimum circle rates or guideline value, what we call in Bengaluru, because all our selling prices or acquisition property acquisition rates are above the circle rates. That way, it will have zero impact, in my opinion. That is the case for most of our projects and for most developers, so I can say so. Okay, sir. Thank you. Thank you. The impact will be zero. Thank you. Thank you. Next question comes from the line of Pritish Sheth from Motilal Oswal Financial Services Limited. Please go ahead. Hi, thanks for taking my question, and congrats on a great year. My first question is on business development. By the Chairman, sir, highlighted about actively pursuing land. I just wanted to understand the strategy on business development. You know, are we looking at some kind of churn rate that if we sell X million sq ft in a particular year, we would look to add X plus or X point something, you know, into our pipeline regularly? Or is there some value target that we have in mind, you know, when we strategize on the new project additions? Your comments would be helpful on that. I think in particular, this quarter, it seems there is some bit of, or some project addition that has happened. if you can elaborate on that as well, which micro-market we added, a project in this quarter. two questions on this as well. Ur strategy is to acquire developed land, you know, within a 3-5-year time frame. We are not in the land banking strategy where we might acquire land in areas which are yet to see sort of positive growth development. How we approach it is basically we look at each of our businesses, we look at how much we want to grow those businesses, in which micro-markets we feel there would be the best traction. Micro-markets and markets in general, which is why we've been communicating about Chennai being a strong market for us and one where we would be putting a lot of focus. We also focused only on Bangalore, Chennai, Hyderabad, and a couple of smaller markets where we've had presence in the past. We feel presence in these three markets is more than sufficient for us to meet the kind of growth objectives that we as an organization have for at least for the medium term. We are not looking to expand into other geographies as we have been asked about before. In terms of exact value, I would say that's like a moving target, based on, you know, each year, what has been added to the land bank, what might be launching in terms of pipeline. Based on that, we have to work within the land bank and see what can be added. Also, I'd like to say whenever there is good quality land, regardless of which micro-market or which, you know, product or area it might be in, we would be looking to acquire that land. I think the scarcity of good title and good land is more important than maybe specifically trying to slot it into a line of business or a type of product or a micro-market also. In terms of addition to the land bank, we have, while I'm not going to disclose the exact location, a lot of it is in North Bengaluru, in North Bengaluru and also in Chennai, across both commercial and residential. This is for this quarter, is it? Yeah, this is only for this quarter. Okay. Okay. Okay, fair enough. I mean, the reason for asking that question was, in between, we had, you know, a lot of traction on project addition, considering that we were short of kind of pipeline, and we added multiple projects. Last two, three quarters, I mean, things I won't say it has slowed down, but it is like, it has not, it is not up to that pace. Do you have certain, you know, monetization, timelines in mind, and accordingly, you will look to add projects, you know, after a certain point in time, or, you know, that is in continuous evaluation process? That was my question actually. How we do it is a continuous evaluation process. Sometimes, I mean, we are working in various stages of the land deals themselves, and only when we have, you know, put down some funds, that is when we formally include it into our land bank. That doesn't mean there aren't discussions that are going on at various levels of seriousness. Once it enters the land bank, it could take, you know, some amount of time from when we have, when it gets through the design and approval phase. Sometimes it can be as quick as three quarters itself, when it goes from into the land bank and into the launch pipeline, which is why it's difficult to really sort of pinpoint exactly when the duration could be and, you know, the movement quarter-on-quarter. I think overall, as an approach, we're aggressively looking for land. There's no pullback on that side at all. Sure, sure. That's very helpful. Can you share the latest completion timeline for Twin Towers? I think last quarter, we also discussed about Brigade Padmini, you know, kind of commercial project, which is not there in the updated pipeline this quarter. Just a status on that as well. Yeah. Twin Towers is going well. It's under construction, and most of the civil work is done now, just the facade, et cetera, is being completed. We should be complete in the project by March 2024. In terms of Padmini, it's a 1.3 million sq ft project. We're gonna be doing that in phases. The first building is already up. Should be ready for completion in the next 2- 3 months. It's showing in the project to launch. Padmini is there in the, in the extra present. Oh, okay. Okay, okay. Got it. Just lastly, on, you know, collections, breakup that you provide every quarter, your breakup of collections between residential, commercial, et cetera. You want for the quarter? For the quarter, yes. Residential is INR 983 crores. Commercial sale is INR 48 crores. Commercial lease is INR 161 crores. Retail is INR 53 crores. Hospitality is INR 145 crores. Maintenance services is around INR 74 crores. Total is INR 1,464 crores. Sure. That's helpful. Thank you. All the best. Thank you. Thank you. Next question comes from the line of Parvez Qazi from Nuvama Group. Please go ahead. Hi, good afternoon, congratulations for a great number. Couple of questions to Pavitra. First is, you mentioned that demand environment remains strong. What is the kind of price movement that we have seen in our projects that's on a like-to-like basis in FY2023? Second would be, what would be the status of approvals on the TBS project, considering, you said, it could contribute almost a quarter of our sales in FY2024? Thank you. Yes, on the pricing that we have seen in the projects across the board, we've seen about a 7% increase in the realization. That is, you know, excluding the plotted development. We've seen that kind of pricing increase. This year we had million sq ft of sales in the plotted development segment. In terms of TBS land, as I mentioned, we are aiming for a launch towards the end of this financial year. This means the timeline of approvals and everything we're working on is in line with that. We see those things are going on track. Sure. A couple of questions, data queries for Atul, sir. What would have been the rentals for WTC and BTG this quarter? Right now, I don't have a quarter number, but full year I can say, quarter four is around BPPL, that is Tech Garden is INR 40 crores. PREPL is around, which is Chennai's INR 35 crores-INR 36 crores. Lastly, what would be our pending land-related payments that we need to make? That is around, INR 700 crores or so. Okay. Yeah, around INR 700 crores. Sure. Great, that's it from my side. All the best for future. Thank you. Thank you. Next question comes from the line of Parikshit Kandpal from HDFC Securities. Please go ahead. Hello? Hello. Hi, good evening. Yeah, yeah, hi, Pavitra. Hi, good evening. My first question is on total land bank addition or Gross Development Value addition for the full year FY2023. Can you please highlight that number? Yeah. In the total additions during FY20 23 was INR 5,000 crores, in terms of gross development value. Okay. In terms of million sq ft? The total project area would be 8.68 million sq ft. Okay, sound good. My second question is on the commercial business. The area which is yet to be leased, so what kind of inquiry or the pipeline we have, and with timelines to basically achieve this entire leasing for the rest of area? Yeah. There is healthy traction, so I'm not getting too discouraged about it, but there is healthy traction. If one of the large inquiries happens and the whole area gets taken, if those inquiries don't work out, then we have to start leasing it to smaller piece deal planners. The size of transactions has reduced slightly. Prior to this, you know, average transactions in Whitefield used to be 100,000 sq ft, 200,000 sq ft. Now, people, as I mentioned earlier, clients are trying to rationalize their space takeout. Prior to COVID, if people or tenants would take a one is to one ratio, for instance, one desk for every employee, now they're trying to rationalize a lot of their. For instance, they might take one desk for every two employees or every three employees. We are quite positive with the kind of traction there is. I'm hopeful that we can lease it in the next 2-3 quarters. Okay. That's the plan, and the earlier the better, so we are pushing for it. The leasing has been decent for even this quarter. For instance, while we did 238,000 sq ft this quarter, from our stake, we did another 283,000 sq ft for our investors and areas where we have sold. There is decent amount of traction. It's just that the leasing that we did for the investors and for the owners is, like I said, another double of what we did for ourselves. Okay. During this quarter, this land payment of INR 480 crores, is it largely pertaining to the TBS land or is it something else? Yeah, mainly it is TBS land. Okay, take it. Just on this student tower, I think earlier we mentioned that by March 2024 it complete. Any pre-leasing momentum there, pre-lease inquiry, or any update you have on the leasing side of that? Yeah, there are RFPs people in the market, so we've, we'll be applying for all of them and, hope to see some traction there. Okay. Just lastly, on the residential piece, just on the demand side, earlier we spoke that, the interest rates have not really impacted us. How are you seeing this quarter momentum on the demand side? I think based on the success, like I said, 60% of our numbers, the highest ever numbers in Q4, came from launches. I think that shows the appetite of the customer for a product where it is not even complete, which means the market has sort of come back to its levels of interest, where people really believe in the pre-launch. I mean, pre-launch story, where at the time of launch, the best pricing. They also want the pick of inventory, and then they're willing to, you know, undertake that pay three EMIs or whatever may be the case, because they see the value in doing so by the time the project is delivered. Considering also that 50%-60% of our customers take home loans and are subject to the interest rate levels that there are today, I think it's a very healthy sign of demand in the market. Despite what is there about the hiring situation or attrition or whatever it may be, I think we have not seen that translate to any drop in leads or even walk-ins. In fact, it seems to be a very strong market with huge appetite for launch. I'll just add a number which has come from the ANAROCK report, which you should see, is that today, if you see the investments of the individual or of 60% investment is going into real estate because they think it is a stable investment. 26% is in equity market, and rest is in FDs and gold. I think real estate market is doing well. If you see millennials are driving this market, and market should go. The second, third point is that last 10 years, this quarter one has been the highest sales, which people have seen in quarter four of any year. I think signs are good, and we should continue to see that real estate sales do well, especially residential. On the hospitality, any update on monetization? Any talks, any progress? There is, Like I said, we are in discussion, but quite preliminary. We'll keep you posted as and when there's something concrete to discuss. Okay. Thank you. Thank you. Thank you. Sorry? Thank you. A reminder to all the participants that you may press star one to ask a question. Next question comes from the line of Biplab Debbarma for Antique Stock Broking. Please go ahead. Thank you, sir, for taking my question. On the Brigade, three towers, what would be the expected rental ballpark, just a ballpark, that you think would be achievable? We're expecting to be, 75 and above. Okay. Okay. Could you elaborate on Brigade Padmini? I think I had missed it. What is the total area? Just sorry, I missed it, that part. A million sq ft. We'll be doing it in phases. one block will be ready by September, and that block is around 260,000 sq ft. 260,000 sq ft. That will be- The other two blocks... Sorry? No, no, that's fine. Continue, ma'am. Yeah. The other two blocks, the block two, which is around 1,036,000 sq ft, and another block, which is 350,000 sq ft. Those two are under excavation now, so they come up in some time. What would be the expected rental there in the first block? It will be around 65%-70%. The first we are targeting 65%. Depending on when the other two blocks come, typically we estimate a 5% increase per annum. It really depends on how much size take up is there. If If one client is taking a full building or they're multiple tenants. You can say 65%+. Mr. Biplab, please go ahead. No, that's all. Thank you. Thank you. Ladies and gentlemen, we have reached the end of question and answer session. I would now like to hand the conference over to Ms. Pavitra Shankar, Managing Director, for closing comments. Good afternoon. Thanks again for joining us today. Before we close, we'd like to just share a few other highlights from our group. We're proud of the work our Brigade Foundation does through various education, health, community development and welfare programs. Therefore, it's especially rewarding when the Brigade Foundation won an award at the CREDAI Karnataka Care Awards 2023 for best CSR work done over the years. I'd also like to call out a unique initiative by Brigade in collaboration with the BBMP and a community organization known as The Ugly Indian. The Bengaluru Marg Darshana is a walk-through map of major roads and junctions that shows how several major roads connect to the central business district of the city. It's for the public and for kids, and it's definitely worth a visit. It's located under the flyover crossover after Hebbal Junction. The IME or the Indian Music Experience Museum, Project Sparsha, which is supported by Kotak Mahindra Investments, celebrated World Autism Awareness Day on April second. The objective of organizing this program was to celebrate diversity and make the museum experience more empathetic and accessible for all. Project Sparsha has reached 1,650 children who are from socially disadvantaged backgrounds and neurodivergent. World Trade Center Bengaluru at Brigade Gateway is all set to host the 2024 edition of the World Trade Center's General Assembly. This will be the first time that the General Assembly is being conducted in South India. WTC Bengaluru was voted as the host city for 2024 by the board of directors from among seven other WTCs across the world. Delegates from over 200 global cities are expected to engage with industry captains from the state during a six-day assembly next year. Our PropTech accelerator, Brigade REAP, is now inviting applications for its 14th Cohort. 47% of Brigade REAP startups have raised funds within 12 months of graduating. This year, we've also launched the Go-to-Market offering, which along with our syndicate fund, will look to onboard and help scale startups with the brightest ideas in the PropTech space. It gives me great pleasure to congratulate Amar Mysore, our Executive Director, for his new role as President of CREDAI Bengaluru for the next two years. We wish him the very best for a successful term. That's a wrap for our earnings call. We're proud of everything we achieved last year and look ahead to FY 2024 with renewed focus. Thank you, everyone. Thank you. On behalf of Brigade Enterprises Limited, that concludes this conference. Thank you for joining us. You may now disconnect your lines.