Ladies and gentlemen, good day, and welcome to the Q1 FY24 earnings conference call 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, 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, Executive Chairman of the company. Thank you. Over to you, sir. Thank you, ma'am. Good afternoon, ladies and gentlemen. Welcome to the Brigade Enterprises Q1 financial year 2024 earnings call. I'm joined by our Managing Director, Ms. Pavitra Shankar; Joint Managing Director, Ms. Pavitra Shankar; our Executive Directors, Mr. Roshin Mathew, Mr. Amar Mysore, and Mr. Pradyumna Krishna Kumar; and Senior Management team, Mr. Atul Goyal, CFO, Mr. P. Om Prakash, Company Secretary, and others. I'm happy to share some of the highlights of the group. As a validation of our consistent performance in good governance, our credit rating was upgraded recently by CRISIL from A+ to AA- stable in early August. We are now rated AA- stable by both ICRA and CRISIL. Last week, Brigade won the bid for a 9.71 acres land parcels in the premium area of Neopolis, Phase 2 at Kokapet in Hyderabad. This is the largest plot in the phase two auction by the HMDA. The total transaction size is INR 660 crore, valued at around INR 68 crore an acre, with a development potential of about 3.5 million sq ft. The transaction underscores our commitment to Hyderabad as a growing market for Brigade. For that matter, in the last one year, we have totally signed about 23 million sq ft of developable space in different cities. Sustainability and Social Responsibility are among our core values at Brigade. We have announced our ESG strategy this year in this year's sustainability report, in which we have committed to 11 new ESG policies. We have initiated the GRESB rating and process, and more importantly, have set an ambitious target to become net zero by 2045, among others. The first quarter in the new financial year has seen consistent performance across all business verticals in terms of growth and cash flow. However, the reporting impact of the Ind AS 115 standard has re-resulted in a drop in Q1 revenue. It is based on the value of registrations done and units handed over to customers. There have been teething issues with the new state government registration software called Kaveri 2.0, which is creating quite a bit of issues at the sub-registrar's office for the registering authorities in Karnataka. This led to a delay in registration, registrations expected for the quarter one. This matter should resolve itself in the coming quarters, resulting in improved revenue and margins. During this financial year, our team is geared up to hand over about 4,500 residential units with an area of approximately 5 million sq ft, valued at over INR 3,000 crore. Multiple phases of Brigade Cornerstone Utopia, Brigade El Dorado, Brigade Citadel and Brigade Orchards are in the handover stage. Turning to the residential segment, the segment continued its consistent performance with new sales of 1.46 million sq ft, valued at about INR 996 crore in Q1. There has been a steady increase in pricing realization, which now stands at over INR 6,800 rupees per sq ft, compared to INR 6,200 rupees last quarter. Excellent sales, supported by steady construction progress, has led to a strong collection of INR 836 crore, which has led to zero debt in the residential segment as of Q1. Similar to the overall industry, inventory overhang has reduced in our portfolio due to good customer demand. Industry-wide, there has also been fewer launches in Bengaluru, Chennai, and Hyderabad when compared to cities like Delhi, Mumbai and Pune. We have planned 7.87 million sq ft of residential launches in the next three to four quarters. However, these are highly dependent on timely approvals. In Karnataka, the change in state government has led to delays in approval process across the board for new project launches, as well as issue of completion certificates or what we call as occupancy certificates. We are hopeful that the issue will get resolved in the coming quarters to maintain our launch timelines. The demand on ground for the residential sector stays strong, which we witnessed at our recently concluded flagship event, Brigade Showcase, which is being conducted consistently for the past 16 years. It resulted in excellent footfalls and inquiries. As regards the office segment, occupiers continue to focus on return to office, with office parks having an improved occupancy range of 50%-75%. Brigade leased 61,000 sq ft this quarter. Leasing was muted due to the availability of only SEZ office area in our portfolio. Existing tenants took up additional space, and this trend is likely to continue. However, despite the relatively slow quarter, there has been an increased momentum in leasing inquiries in Q2 FY 2024, even for SEZ, SEZ spaces. Brigade has an active pipeline for its remaining completed assets. With the transactions closed in Q1, FY 2024, Brigade has achieved a leasing of 84% of its available inventory, with 100% leasing under the non-SEZ category. In line with the market trends, 85% of the transactions for the quarter were of small and medium size, which is less than 50,000 sq ft. Leasing segment saw a 22% year-on-year increase in the quarterly leasing revenue, from INR 105 crore- INR 213 crore. Q1, FY 2024, with a stable office rental collection at 99%. Coming to retail segment, during Q1 FY 2024, there was a 12% like-to-like growth of retail sales consumption in comparison to Q1 FY 2023 across the mall retail SBU. Retail categories like electronics, eyewear, jewelry, watches, beauty and cosmetics, travel gifts, were the top performers in terms of their trading density. All these categories grew at an average of more than 25% over Q1 2023. The multiplex segment de-grew by 37% compared to financial year 2023, due to low movie content. Overall, as retail SBU, all our malls are leased at a combined total of 91%, with our flagship mall, Orion Mall Brigade Gateway, leased at 99% currently. We are expected to close 45,000 sq ft of new brands that are under fit-out, to commence their operations by Q3 FY 2024 across our retail SBU. As regards hospitality business, which it has continued, continuing its growth story in quarter one, financial year 2024 as well. There has been an all-round improvement in our numbers, with both our top line and bottom line revenue stream higher than Q1 FY23 numbers. Our revenues increased by 1%, ARRs have gone up, have gone up by 16%, and AGOP is up by 7% when compared to Q1 FY23. Our occupancy showed a marginal drop by 5%, but this should improve in the coming quarter. The F&B segment has seen an encouraging growth due to banquet events, both corporate and social gatherings. Number of domestic air passengers in India has been steadily surpassing the pre-COVID levels. In May 2023, domestic air travel increased by 15% year-on-year, which is for the first time since December 2019. That brings me to the end of our operational highlights. Atul Goyal, our CFO, will now take you through the financial highlights. Thank you. [audio distorted] Thank you, sir. Good afternoon. On behalf of the company, we welcome you to the earnings call of Q1 FY 2024. Our chairman has already shared the operational highlights. I'll be sharing some key financial highlights for the quarter. As informed by him, our rating has been upgraded to AA- stable from A+ by CRISIL in August. Of course, ICRA has already upgraded us in the first quarter. Leasing and hospitality business has been doing well and achieved PBT of INR 19 crore and INR 11 crore, respectively, during the quarter. Good sales and collection in residential segment has helped us achieve zero debt in residential segment. To start with company's financial update for Q1 FY 2024, all our verticals of the company continued steady performance in Q1 FY 2024. The real estate segment closed a turnover of INR 371 crore, whereas the same for Q1 FY 2023 stood at INR 655 crore. There is a decline in real estate revenue and PBT, which is mainly due to less registrations, as enumerated by the Chairman in his speech, and no project closures. If you see, our gross profit for real estate is in, is at 27%, which is in line with the previous quarters. Gross profit, we have maintained it solely because of the lower revenue, that you're looking at a lower PBT in real estate segment. The leasing segment closed at turnover of INR 213 crore, whereas the same for Q1 FY 2023 stood at INR 175 crore. EBITDA stood at INR 160 crore, which is 75% of the leasing revenue. The hospitality segment closed a turnover of INR 102 crores, an increase of 13% from same quarter last financial, with an EBITDA of INR 38 crores. EBITDA margins stood at 13% in Q1 FY2024. The consolidated revenue for Q1 FY24 stood at INR 685 crores as against INR 920 crores in Q1 FY23, with an EBITDA of INR 206 crores. EBITDA margins stood at 30%. Consolidated debt after minority interest for Q1 FY24 is INR 39 crores. Total collection in Q1 stood at INR 1,244 crores as compared to INR 1,210 crores in Q1 FY23. Cash flow from operating activities stood at INR 267 crores during Q1 FY24. Coming to the debt and equity liquidity position, we continue to have liquid, adequate liquidity and undrawn credit line from the financial institutions. Our average cost of debt has been contained at 8.72%, increase of 107 basis points, though repo rate has increased by 250 basis points. Gross debt of the entity stood at INR 3,783 crore, this has been reducing very consistently. The cash and cash equivalent was INR 1,771 crore as on 30 of June 2023. Consequently, the company's net debt outstanding is INR 2,012 crore, out of which BEL's share is INR 1,374 crore. Almost 76% of the debt pertains to the commercial portion, which is backed by the rental income. Debt-equity ratio stood at 0.52 as of June 2023. I will now hand it back to the moderator for questions. Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star one on the touchtone telephone. If you wish to remove yourself from the question queue, you may press star 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. First question is from the line of Adhidev Chattopadhyay from ICICI Securities. Please go ahead. Yeah, good evening, everyone. I've got a few questions. The first thing on our new Hyderabad land acquisition, I think Mr. Jayesh has said, attributed the saleable area would be in excess of 3 million sq ft. Could you please help us understand the FSI utilization over here, and what would be the indicative GDV for this project, which we will add? Secondly, the land payment, I think, is almost INR 700 crore with stamp duty. Will it all be paid out this year, or is it paid in tranches? That is the first question. Hi, Adhidev, this is M.R. here. Like the chairman said, it is about INR 660 crore with the land value, but with the stamp duty registration, it will go up to INR 700 crore. The first installment is already getting due next week, which is about INR 200 crore, I thought, which we are getting ready to pay. The whole thing needs to be paid in 90 days, that's, that's what we're aiming for. In terms of potential, it is about, say, 3.5 million sq ft. FSI in Hyderabad is everybody is looking at unlimited FSI, but we look at close to, say, 8 FSI, around that. We're just getting started with the master plan, so we'll probably next call we'll have more updates for you. Okay, if you could just help us understand the current residential rates or whatever you are planning, like, over there, the indicative GDV based on the rates over there? I'll let Pavitra answer that, because she looks at residential closely. Yeah. Yeah, yeah. Hard to say what we will launch at, et c., but we do know that the existing projects in the area were selling at around INR 8,500- INR 8,800, maybe INR 9,000. As soon as our transaction was announced, I think the rate already jumped to INR 10,000 per square foot for residential there. That said, we're not committing yet on what rates, what the plans are. It's still under design stage right now. Okay. Okay, just to clarify, this entire land payment of INR 700 crore will go in the next three months. We also have another outstanding payment of INR 700 crore, right, which is still there as of March, I guess? Just to understand correctly, the entire INR 1,300 crore will be paid out this year? Atul here, it depends upon the land closure. Definitely, INR 700 crore will definitely be paid in 90, 90 days from other lands which are going to get closed, but I don't think those INR 721 crore will get spent during this year. It will take time as and when land clearance happens. We will not be taking on any additional debt, right? It will mainly finance through our cash balance, right, on this INR 1,300 crore plus the cash which we have. We are planning not to take any debt to see how the things progress. Okay. Fine, thank you, also. Thank you, that's very helpful. I'll come back in the Q&A for it. Thank you. The next question is from the line of Parikshit Kandpal from HDFC Securities. Please go ahead. Yeah, hi. Also, for a decent quarter. Just on the Hyderabad land in Kokapet, besides the land outgo of almost INR 700 crore, are there any other premium payments involved in Hyderabad, or is this the total cost, including the premiums and all? Sorry. It is the total cost. There is no further premium payment other than approval cost. Okay. If I do the math, I mean, I think you not make, even at INR 10,000 sq ft, you will not make more than 25% EBITDA on this. If it is a land cost, even if I take construction cost, because I think this would be a high-density development. I think FSI is almost INR 5,000, maybe the construction cost. I think sales is about INR 1,700, and then as GNM under will be another INR 200. Is it right to assume that this project will have maybe 25% EBITDA margin, so in line with our existing margin? We expect it to be closer to 30% EBITDA margin. Okay. Close to 30% you expect it to be. Hello? Yes. Yes, Yes, sorry. Yes, I missed you, sir. You said, about 30%, you said? Yeah, between 25%-30% is what it is. Okay. Okay, sure. My second question is on, essentially the realization. I just wanted a little more granularity on the realization, especially in the Bengaluru market. We have seen some of your peers, other peers now launching projects, close at about INR 10,000 a sq ft average realization. Our realization on the portfolio is still at much lower levels, but I think that's INR 6,800 this quarter. Are the new launches which are planned, what kind of realization we are targeting, or what kind of segments, on a realization basis, these projects will be in Bengaluru, especially in Bengaluru? We have a combination. Some of the new launches of our, ours will also be in the range of INR 10,000. Some may be at INR 8,500, INR 9,000. Some will be at INR 6,000, we, you know, which are a little bit in the affordable housing category. It is average, I cannot say it will be INR 10,000. Average will be definitely upwards of INR 6,800. It will be upwards. Gradually it will go here. Okay. just a last question, sir, on BTG and WTC. I mean, you did said that the physical occupancies are now touching, closer to maybe 50%-75%. For these two assets, within the campus, what kind of physical occupancy you started hitting now after the return to office movement? The occupancy here is also between 65%-75%. In fact, Chennai is showing better occupancy and return to office numbers. Bengaluru is around 65%, and the Chennai project is around 75%. Bengaluru is 65% and Chennai 75%, right? Yeah. Okay. Okay, sir. Thank you, and wish you all the best. Those were my questions. Thank you. Thank you. The next question is from the line of Karan Khanna from Ambit Capital. Please go ahead. Yeah, hi, thanks for the opportunity. Firstly, while appreciating that historically, the first quarter is usually the softest quarter for the company, what we notice is that first quarter typically accounts for 80%-20% of your full year pre-sales number. Is it safe to assume that this trend will continue for rest of FY 2024 as well? Because your launches will be piled up towards the latter half of the year, you believe that the full year numbers will possibly be higher? Hi, Karan. Yeah, so we've also communicated earlier that our launches will be towards second half of the year. Despite that, I think, Q1 has been pretty strong. So depending on the launches, as, and as we mentioned earlier also, assuming that there's no delay in approval, we should certainly see good numbers this year. I think the demand picture is very strong. It's a question of getting the launches out. So I don't see any issue with meeting the numbers this year, absolutely. Sure. Thanks for the clarity. Just as a follow-up, how should we think about the launch pipeline of 7.87 million sq ft? In June last year, you spoke about a rolling four-quarter launch pipeline of 7.6 million sq f t. If I look at the actual launches over the last four quarters, this has totaled to only 4.95 million sq ft. Just curious to understand, is the 7.87 million sq ft rolling four-quarter launch pipeline, which you have suggested in your presentation on slide number 28, is there any risk to that number? No, I think we're now. See, Chennai, some of the projects that we thought would come into FY 2020, or the three rolling four quarters are now in the next season. Also, we had expected to have, one, a couple of launches in Q1, which just basically missed the end of the quarter. All that will be included in the next four quarters. Sure. Secondly, on your hospitality portfolio, while acknowledging that Q2 is usually the seasonally weakest quarter, with the Cricket World Cup around the corner, are you seeing encouraging trends in terms of the inquiries, resulting from this? Given Bengaluru is also hosting three of the matches in October and November. As a follow-up, just explain to me, how are you seeing the trends on share of FTAs in your hotels? Yeah, this, the Q1 for this year was quite good compared to Q1 of last year. You'll see improvement on pretty much all parameters apart from occupancy. The next quarter is going to be fairly good as well. July is a little slow, but August and September should be good, good months. As far as the third quarter and fourth quarter, you'll see the strongest for hospitality. The momentum is good, and I think we mentioned earlier, air traffic number. The momentum is very good, even in terms of food and beverage and rooms as well. In terms of the share of FTAs, is, is that increasing in the portfolio? Share. You mean foreign travelers? That's right, foreign tourists. Oh, foreign tourists. Foreign tourists. Foreign tourists is not as high as it was. In fact, it's still a fraction of what it was pre-COVID. I would say it's still maybe 25% of what it was pre-COVID, but I think the demand is coming mostly from the domestic segment. Sure. Lastly, a bookkeeping question, just wanting to understand if I'm looking at slide number eight, you started reporting the pre-sales number, including the landowner share. Is that going to be the trend going forward as well, or how are you going to report the pre-sales number? Yeah, that's going to be the trend going forward. We actually looked at what others, other peers are also doing in the market. Previously, we were not adding the area share, so that's what we started to do. That said, it doesn't impact any of the cash flow picture that we've been sharing in the past, whatever is on slide 10. All of that continues to stay the same. There's no material effect. Sure. Thank you, and I'll come back in the queue. Thank you, and all the best. Thank you. The next question is from the line of Pritesh Sheth from Motilal Oswal. Please go ahead. Yeah, thanks for the opportunity. First question is, just trying to understand your business development strategy from here on, specifically in the markets like Chennai and Hyderabad. Hyderabad, we have one large project now and another 1 million sq ft, which we are already in conversation. That should have another, you know, roughly around INR 4,000 crore-INR 5,000 crore of revenue potential from that market. Chennai also, we already tied up in a lot of lands. Would that be it for near term in terms of Chennai and Hyderabad, new acquisition plans and focus would be on churning our inventory in Bengaluru? How should we think about it? We have quite a few in Chennai and recently Hyderabad. It does not mean we are not looking at the opportunity, but instead of buying more, we have bought quite a bit in Chennai, and now with this major acquisition in Hyderabad, we may move towards a bit more of a joint development for projects. I think both markets, along with Bengaluru, offers sufficient opportunities. We will continue to look for and, you know, intention is to do better and better in the overall the sales volume from our 6.3 million sq ft-6.5 million sq ft currently. We would like to reach 10 million sq ft as early as possible. Sure. Out of the 10 million sq ft. Market conditions are also favorable. Sure. Out of the 10 million sq ft, roughly 40% would come from Chennai and Hyderabad? Probably, yeah, more or less. I think the intention is to even aim higher, if possible, about 50% between those two markets, and about 50% from Bengaluru. But there is no, I would say, you know, we have done this much and no further, n ot that kind of a approach is not there. We will evaluate continuously the opportunities and the market conditions, and the areas in which we operate and in the segments we operate, and then take a call. Sure. For that 50%, 2.5 million sq ft contribution from each of the market. Definitely then we'll have to look at more projects, to be added in both the markets. Is that right understanding? Yes, yes. Yes, correct. Got it. Got it. Secondly, on launches, so Chennai, the Q4 launch plan remains intact, or there has been, you know, some delay on this? Any clarity we have right now? The Q4 launch plan is the same. We are hoping to meet those deadlines. Should come into Q4. Great. Lastly, Balmini Tech Valley, 0.27 million sq ft launched this quarter, and I think it's also delivered. Will we look to, will be looking to sell it outright, right? No, it is not yet delivered. It is getting completed. It should get completed in, I think Q3. Okay, Q3, it should get completed. Some negotiations for leasing are on. We are open to retain, we are open to sell. I think there is no definite decision that it should be only sold or it should be retained. We are flexible. Depending on the situation, we are flexible. Got it. That's helpful. Just lastly, if you can provide breakup of, you know, collections between the segments, for the quarter? Yeah, sure. For residential, it is INR 836 crores. Commercial sale is INR 43 crores. Commercial lease is INR 149 crores. Retail is INR 52 crores, hospitality is INR 125 crores, and PMS maintenance services is around INR 40 crores. Overall, INR 1,245 crores. Got it. Thanks. That's helpful. All the best. Thank you. Thank you. The next question is from the line of Rakesh Wadhwani from Monarch AIF. Please go ahead. Hi. I thank you for the opportunity. Just wanted to understand, and you were given by guidance of some of these volume growth for the residential business. Where do you, how do you expect, from where, from where do you expect the volume growth, from your future launches or the existing? Because the existing volume is coming down every quarter. Excuse me, your voice is not clear. Okay. Hello, can you hear? Sorry, your voice is still muffled a little bit. Can I request you to use the handset? Sure, sure. Is it clear? Any better? Yes, go ahead, please. Hi, sorry for the disturbance. In the last control, you had given the guidance that we are expecting a double-digits or high-teens volume growth in the residential business. Just wanted to know what, what will be the growth drivers? Will it be the new launches that will be the growth driver or from the existing inventory? Where, how do you expect the growth in that? Yeah. Generally, while we don't give guidance year-on-year, we have always targeted like a, like you said, like a double-digit growth year for the residential portfolio. Last year saw a 36% increase. Our launches for this year are mainly what is driving the sales expectation for this year. Provided that happens, I think we'll see pretty strong growth in our residential sales this year. We're still confident of the market conditions and so on. It's just a matter of getting approvals and being able to launch. Okay. Second question on the EBITDA margin for the residential segment. If you look at the EBITDA margin for the residential segment, before COVID, like, before FY2020, we were doing EBITDA margin of 23%-25%. After 2020, after COVID, it has come down. Just wanted to know, what is the sustainable EBITDA margin for the residential business? Because all the things are in our favor, raw material prices are coming down, coming down, we are increasing the realizing also, and the scale has also gone up before COVID, like, before COVID and now scale has become double. Uh, see, uh, uh, we are accounting on Ind AS 115, and the revenue depends upon the recognition of the registration of the property. So because of the variation in the revenue, EBITDA, uh, margins have been, uh, have been, uh, varying because you have to absorb your fixed cost for the company as well. So if you see, uh, the, let's talk on gross profit, you can see from 25% or, uh, so from last quarter, profit for real estate has been in the range of 25%-30%. But that we have maintained. It's only that because of the variation in the revenue, because, uh, we are going on a completed matter, this, uh, variation is coming. So, can you say 23%-24% is sustainable EBITDA margin for residential? It can, yes. Okay, [audio distortion]. One last question. Can you please talk about the GDV, the Gross Development Value, or the sellable value for the projects that are going to be launched in the next four quarters, that's 7.8 million. What is the sales value, potential sales value for these projects? Yeah. Yeah, just to answer that, we've communicated about 7.89 million sq ft of residential launches this year. The GDV of that should be around INR 6,700 crore. The DL share of that would be around INR 4,400 crore, and that's again, dependent on the launches happening on time. Okay. The share of the Brigade, the share in the Brigade will be INR 4,400 crore? Sorry? [audio distortion] Brigade. What is the Brigade share? INR 4,400 crore. Okay. Thank you. Thank you. All the best. Thank you. The next question is from the line of Parvez Qazi from Nuvama Group. Please go ahead. Hi, good afternoon, thanks for taking my question. My first question is to Pavitra. This is regarding the recent Hyderabad land that you won in the auction. I believe within the same Neopolis layout, government had conducted an auction two years back also. I guess the average land prices during that auction were somewhere closer to about INR 40 crore. If you look at the current auction, I guess average land prices have moved up to INR 73 crore per acre. Now, I understand, the land plots, etc., might not be strictly comparable, but I mean, this kind of price appreciation in terms of land value, doesn't it make you kind of slightly apprehensive towards what is happening in the Hyderabad real estate market? I'll have [Rakesh] to answer that. Yeah. See, we also examined the phase one part of the Neopolis auction back in October 2021. Back then, we were not convinced, and it was more like the infrastructure was not in place. Now, we see the infrastructure in place and then the current rates, the way the selling prices that are going on, we, we are convinced that the price that we acquired is less than the average INR 73 crore per acre. We acquired it at INR 68 crore per acre. We, we are in good stead, and the numbers add up for us. Okay. My second question is about the retail business. Obviously, consumption has picked up across the board. We also seem to be doing quite well. For the future, do we have any plans to develop new malls or retail space? If yes, whether we are okay with developing standalone malls, or we want to do it as part of any integrated project only? It will be a combination for us. For instance, in this Hyderabad project that we've that we plan to do, we might look at some retail, and generally, in mixed-use developments, we will look at some amounts of retail. We have Brigade Utopia coming up, so there is some amount of retail there. We have Valencia, Brigade Valencia, which is, we're looking at some amount of retail there. I think if you look at the kind of standalones that can be developed in a particular city, it is limited to for micro market. What we see in the future is also creating more neighborhood-style malls, and adding retail more as a social infrastructure to the larger projects and institute developments that we have. If and when the opportunity presents itself, we are open to make standalone malls as well. Thanks. Lastly, some data question for Atul, sir. What would have been the geographical split of sales this quarter? Second, what was the contribution from BTG and WTC to rentals this quarter? Thank you. First question for Vitra will reply. From BTG, the rental was INR 40 crore for Q1, and for Prel, it was INR 31 crore. For, residential sales, 88% came from Bengaluru, 10% from Chennai, and the rest from, you know, Mysore, Hyderabad, etc. Thank you. Thank you. The next question is from the line of Biplab Debbarma from Antique Stockbroking. Please go ahead. Good afternoon. Thanks for taking the call. On the debt, do you intend to keep the debt in residential segment at this level of Zero Debt or very low level of debt? Is this our long-term plan? Long-term plan is difficult, but yes, we always endeavor that our debt should be minimum, and we have been always been conservative on the debt. Residential cycle is very good, and our projects are selling well. Yes, of course, till cycle is going on, we are able to sell, we don't intend to take any debt on the residential part. Okay. Okay. Second thing, sir, just I, I don't know whether I missed the point. With the margin that you have been given in the segment of. Sir, your voice is not very clear. Please come closer to the mic. Hello? Yes. Yeah, I'm using the handset. Hope this is okay. Yes. Basically, the EBITDA margin in the residential segment is showing 6%, and in the last four quarters, it has been low in, say, 12%-13% range. Sir, just wondering, when do we expect to see the margin back up 20%-25%, around between 20% to 25% in the residential segment? See, I'll again clarify, these revenues are Ind AS 115. As and when registration has happened, you are recognizing the revenue. See, an important parameter is that your gross profit is maintained, and I'm and I would like to, if you can compare for last seven, eight, or maybe three, four years, the we have maintained our gross profit margin at 30%-35%, 25%-30% always. It's all based on the revenue. If you go on PCM, this will be look much, much better. Data cannot help because this is a locked land and completed, this is a completed contract revenue. As and when registration, registrations are going up, going to happen, and as and when project, project closures are going to happen, this variation will always remain. Just want to add to that, some of the projects coming up for handover and completion, those are higher margin projects. We launched them in, FY 2018, 2019. As we come, you will see an improvement in the margin. Okay. Okay. Okay. That's it. One final question, besides the land parcel for Hyderabad that recently that you have acquired, how much more land payments are pending? How much, how much more pending payment for land purchase as of today? It's around, the land payment right now pending is around INR 721 crore, besides INR 620 crore or INR 700 crore, which we have to pay. Overall, it's around INR 1,400 crore. That will be paid over next one, two years, around, ballpark? Yeah, it depends. See, Hyderabad will be paid definitely. Out of it, maybe 50%-70% or 60% we pay this year, otherwise it will go to the next year. It's a rolling cycle. As and when land gets clear, it, all due diligence happen, then we pay. It's a rolling cycle, so you cannot say that we'll pay everything in this year. Okay. Okay, thank you. That's all. Thank you. Thank you. The next question is from the line of Akul Broachwala from Ocean Dial. It seems we have lost the line from Akul. We'll move to the next question that is from the line of Ritika Agarwal from ValueQuest. Please go ahead. I, sir, thank you for taking my question. My question is for Atul sir. FY 2023 sales INR 4,100 crore. I can't hear you. Please, your voice is not clear. Yeah. Is it better now? Yeah, much better. Yeah. My question is, sales for FY 2023, which is, INR 4,100 crore, I wanted to clarify if this is entirely Brigade's share of sales? Or is there some JV share, revenue share which is included in this number? Yeah. Last year we did not include the landowner area share. That is a change that has happened only from this quarter. The numbers we shared last year were not include for before the change. Okay. Till FY 2023, you were not including landowners or revenue share. JV share was not included in the sales number, while from FY 2024, that will be grossed up and shown as sales value. Would that understanding be correct? I would say that, in terms of operational numbers, such as sales and booking value, we were not including the landowner area share. However, the landowner revenue share was included. What we've done this time is correct that, so that we are sharing with we are, we are declaring the 100% sales booking values as well as area. As I clarified earlier, in terms of our cash flows, there is no change. We've always communicated only the net Brigade share, whether it was FY 2023 and before, or whether it is Q1 and going forward. Got that, ma'am. Yeah, in FY 2023, this INR 4,100 would have included revenue share, as you mentioned. What would be revenue share and what would be Brigade's core sales? It is, Brigade share is typically 85% across the board. [crosstalk] Got you. Of course, it is different. There are some lands which we own. There are different sharing percentages. There are some that are JV projects. Across the board, last quarter, I mean, last year, you could have said around 80%-85%. Got it. This quarter particularly, what would be Brigade's core share, as this quarter, I believe, would include revenue share plus the area share that we started putting back? Hello? Yeah. I said 80%. Okay. Okay. Sure, ma'am. Thank you so much. Thank you. The next question is from the line of Adhidev Chattopadhyay from ICICI Securities. Please go ahead. Yeah, thanks for the follow-up. Question on Hyderabad. When is the earliest when we can see the launch of this project? Obviously, I don't think you've been including in your launch pipeline. Just asking this question. It will take, of course, since it's a high-value property, et c., we will try our best to launch as early as possible. It is, due to, I would say, environmental clearances and others, it is safe to say it can take 10-12 months. Okay. Sometime in second half of next year is a reasonable assumption, right? Sometime next Diwali or around next festive season. Okay. Second. Yeah, sorry. Yeah. The second question is on the leasing, obviously, now with that SEZ issue persist. I think earlier that we had a leasing target by March 2024 to lease the entire thing out. Where are we on that guidance and visibility? You have mentioned you have a strong pipeline now, all for SEZ space. Could you help us understand, like, is it a safe assumption to assume 100% occupancy by in another nine months? See the, see the target and efforts remains the same. It is definitely we want to, you know, lease 100% within FY 2024. Sometimes things are not completely within our control. The team is making all out efforts to certainly lease as early as possible. Okay. But anything [crosstalk] Yeah. But comparatively, we should get to 90%, what we sense at the overall portfolio level, from 84%? Sorry, sir? Yeah, it should happen, I think. Okay. Okay. Sir, just another last question, sorry to again ask on Hyderabad. See, many developers have now bought land in the auction. How have you assessed the demand-supply in that market? Because we have other developers also trying to make use of the unlimited FSI, right? How would you ensure that, in case other developers around you launch at a lower price, right? It utilizes 10 FSI, 12 FSI, I don't know. What are your thoughts about that? Yeah. See, currently, I may not be able to spell out, or I would not like to spell out everything, but I will, we are confident we'll come out with a winning strategy. Okay, sir. Okay, fine, fine. Yeah. Thank you. We will do it. I think we will. Okay. do it. Okay. Okay, sir, thank you, and all the best. Yeah. Thank you. Thank you. The next question is from the line of Akul Broachwala from Ocean Dial Asset Management. Please go ahead. Yeah, thanks for the opportunity. on, you know, the delay in recognition of revenue because of Ind AS, just wanted to have some clarification, you know, what would be the extent of inventory that, you know, is ready to be delivered or, sort of, you know, got delayed because of this issue? Can you just quantify that in terms of area or else in terms of value? Yeah, it should be in the range of INR 3 million-INR 4 million, where a completion may happen, and we would, would recognize, but slowly and, how do you say? Yeah, we had said around, the plan in that we would, reach 4,000 sq ft across 4,000 x in the next this year. We also indicated that a lot of that is dependent on us. Yeah. Coming in time for hopefully occupancy certificate and completion certificate, and also the system sort of settling down in Karnataka. So far it's, it's been improving, so hopefully we should be able to meet that. Okay, fair point. Secondly, you know, in terms of our leasing portfolio, so has there been any significant escalations towards the existing tenants this quarter? Or is it purely because of the new leasing that we have done has led to sequential increase in revenues? Just wanted to understand the factors attributing to sequential increase. Yes, see, all the leases are going as per the contract. We have a standard increase in the rentals. It could be 5% per annum or 15% every three years. It's going as per that. It's the sequential increase. Yes, in some cases, we have kick-offs are happening slowly turning around in the revenue as well. Understood. Lastly, you know, you mentioned in the annual report that you are also looking towards, you know, warehousing data center and, you know, sort of other avenues. Any near-term, you know, sort of capital allocation plans that you're looking at, or will this be a medium-term strategy going forward? We have a 25 acre plot that we're looking to explore a data center. Some of the plans are being done up, so we'll, we'll have an update soon. It will be a little speculative, so it's more like trying to do a build this soon. Maybe once we have more clarity, we'll, we'll Okay. This will be around Bengaluru only, or is it some other city? Yes. Okay. It's in the northern part of Bengaluru. Okay, fair point. Understood. Thank you so much, and wish you all the best. Thanks. Thank you. Thank you. Ladies and gentlemen, that would be our last question for today. I now hand the conference over to Ms. Pavitra Shankar, Managing Director, for closing comments. Thank you, over to you, ma'am. Good afternoon. Before we close, we would like to share a few of the highlights. Brigade Enterprises Limited and Brigade Hospitality Services Limited have been recognized among India's top 100 best size companies to work for in 2023 in the Great Place to Work ranking. This is a survey conducted by Economic Times and the globally renowned Great Place to Work Institute. We are now celebrating 13 years of being on this list. In the latest release of the BrandX report from Track2Realty, Brigade moved up three stages as the second-best brand among all real estate developers in the country. BrandX is a yearly report that assesses real estate brands on trust, return on investment, quality, reputation, buyers endorsements, and brand recall. The Brigade Foundation celebrates its twentieth anniversary this year. We're very proud of the impact from our not-for-profit initiatives over the past two decades. We reiterate our commitment to make a difference in the communities in which we operate. The Indian Music Experience Museum, supported by Brigade, has been voted number one in the list of things to do in Bengaluru in the TripAdvisor People's Choice category. We encourage all those listening to plan a trip to this wonderful place the next time you're in our city. Some of the accolades and recognitions we received in the last quarter are Brigade Tech Gardens in Whitefield, Bengaluru, received an award for the Best Commercial High-rise Development at the Asia Pacific Property Awards 2023-2024. Orion Mall at Brigade Gateway was honored with the title of the Most Admired Shopping Center of the Year 2023 Metro South at MEPIB 2023. World Trade Center, Chennai, won Best Commercial Project of the Year at the FICCI REISA Awards 2023. That's a wrap for our earnings call. Thank you. Thank you very much. Ladies and gentlemen, on behalf of Brigade Enterprises Limited, that concludes today's call. Thank you all for joining us, and you may now disconnect your lines. Thank you.