Ladies and gentlemen, good day and welcome to the fourth quarter FY25 conference Call. As a reminder, all participant lines will be in the 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 touchtone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Kshitij Jain from Godrej Properties. Thank you, and over to you, sir. Good afternoon, everyone, and thank you for joining us on Godrej Properties Fourth Quarter FY25 results conference call. We have with us Mr. Pirojsha Godrej, Executive Chairperson, Mr. Gaurav Pandey, Managing Director and CEO, and Mr. Rajendra Khetawat, CFO of the company. Before we begin this call, I would like to point out that some statements made in today's call may be forward-looking in nature. The forward-looking statements are based on expectations and may involve risk. The outcomes may differ materially from those suggested by such statements, and a disclaimer to this effect has been included in the results presentation. I would now like to invite Mr. Godrej to make his opening remarks. Good afternoon, everyone. First, let me please apologize for the delayed start. We're facing some tech issues at our end, so extremely sorry to keep you all waiting. Thank you for joining us for Godrej Properties' Fourth Quarter Financial Year 2025 Conference Call. I'll begin by discussing the highlights of the quarter and the year-end, and we then look forward to taking your questions and suggestions. I'm happy to share that Financial Year 2025 was another record-breaking year for Godrej Properties, in which we achieved our highest-ever bookings, collections, operating cash flows, earnings, and deliveries. Our booking value in the fourth quarter grew 87% quarter-on-quarter and 7% year-on-year to INR 10,163 crore. This was achieved through the sale of 3,703 homes with a total area of 7.52 million sq ft. This is the highest-ever quarterly booking value achieved by GPL, and it's the first time that we crossed INR 10,000 crore booking value in a quarter. This is also the seventh consecutive quarter in which GPL has delivered more than INR 5,000 crore of booking value. Sales in the fourth quarter were driven by strong demand in several key new project launches, including Godrej Jardinia in Noida, which achieved a booking value of INR 2,206 crore, Godrej Aristocrat in Gurugram, which achieved a booking value Godrej Zenith in Hyderabad, which is our first project in that market and achieved a booking value of INR 1,081 crore. All in all, 12 new project and phase launches happened during the quarter across five cities. For the full year, GPL booking value stood at INR 29,444 crore, a year-on-year growth of 31%, and guidance achievement of 109%. This was achieved through the sale of 25.73 million sq ft of area, a volume growth of 29%. This is the highest-ever booking value and volume achieved by any listed developer in India in a financial year. GPL is the only leading real estate developer that has delivered eight consecutive financial years of booking value growth. Our sales are the most widely distributed in the industry, with only 27% of our booking value coming from our home market of Mumbai and only 13% of our booking value coming from the largest single project. NCR, Mumbai, and Bangalore contributed INR 10,523 crore, INR 8,034 crore, and INR 5,089 crore, respectively, to the booking value for the financial year. We sold homes with a value in excess of INR 1,000 crore across 12 projects in six cities during FY2025. Customer collections in the fourth quarter stood at INR 6,961 crore, representing a year-on-year growth of 48% and quarter-on-quarter growth of 127%. For the full year, financial year 2025, collections stood at INR 17,047 crore, representing a year-on-year growth of 49%. This is the highest quarterly and full-year residential sale collections announced by any real estate developer in India to date. GPL has achieved 114% of its annual guidance for collections for FY2025. The record collections also translated into record operating cash flow. Operating cash flow in the fourth quarter stood at INR 4,047 crore, representing a quarter-on-quarter growth of 559% and a year-on-year growth of 55%. FY2025 operating cash flow stood at INR 7,484 crore, representing a year-on-year growth of 73%. This is the highest-ever quarterly and full-year operating cash flow announced by any real estate developer in India to date. It was also a strong year for business development. We added 14 new projects with an estimated saleable area of approximately 19 million sq ft and expected booking value of INR 26,450 crore. This includes two new projects with an expected booking value of INR 3,000 crore added in the fourth quarter. GPL has achieved 132% of its annual guidance for business development in financial year 2025. We delivered projects aggregating to 18.4 million sq ft across five cities in the year, representing a year-on-year growth of 47%. This also translated into record earnings for the full financial year. For the fourth quarter, our total income increased by 36% to INR 2,646 crore. EBITDA declined by 2% to INR 634 crore, and net profit declined by 19% to INR 382 crore. For the full year, our total income increased by 57% to INR 6,848 crore. EBITDA increased by 65% to INR 1,970 crore, and net profit increased by 93% to INR 1,400 crore. The record operating cash flow of nearly INR 7,500 crore we generated in financial year 2025, combined with the equity capital of INR 6,000 crore we raised through a QIP in December 2024, will enable us to continue to invest for growth. In FY26, we plan to grow residential bookings to over INR 32,500 crore, a 20% growth over our FY24 guidance—excuse me, to our FY25 guidance—through the launch of over INR 40,000 crore of inventory, combined with strong sustenance sales. This, combined with strong project deliveries, should allow us to maintain rapid growth in operating cash flows as well. With a robust launch pipeline, strong balance sheet, and sectoral tailwinds, we are confident of continuing the momentum in FY26. On that note, I conclude my remarks. Thank you all for joining us on this call. We'd now be happy to discuss any questions, comments, or suggestions you may have. Thank you, sir. We will now begin with the question-and-answer session. Anyone who wishes to ask a question may press star and one on their 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 Parikshit Kandpal from HDFC Securities. Please go ahead. Yeah, hi. Hi, Hi, Parikshit Kandpal. Congratulations on a great year. My first question is on the guidance, which looks to be a little bit guarded. I mean, you did mention on FY 2024 guidance, there's 20% growth, but on actual numbers, the growth looks a little guided. Is it more like you were guiding conservatively and look to outperform to the 20% number, or is it because of the current market condition, you think that 10% to 11% growth is what we can achieve? Yeah, thanks for the question. I think we always want to be very confident of the guidance we give. This is an industry with uncertainties, whether on the macro or with launch timelines and so forth. We do tend to keep a reasonable amount of buffer in our internal plans over guidance. I think 20% over last year's guidance is actually a pretty strong guidance. We also have included in our investor presentation our performance on guidance over the last three years, and I'm happy to share that we've been able to meet each individrawal metric of guidance that we've provided. Again, this year, the goal will be to outperform guidance. On your question alluding to any—I think we're seeing continued strength in demand for all of our launches. We just came off our best-ever quarter from both the sales and cash collections perspective in fourth quarter. This quarter is off to a good start with a strong launch underway already for us in Bangalore. We are not seeing any signs of concern at the moment, and we will certainly be looking to another strong year ahead. Yes, I think after three years of 55% compounded growth in sales, 20% growth on last year's guidance, and 10% on actuals, we think is pretty strong guidance, and certainly, we would look to outperform it as we have in the past. Okay. My second question is on the sales we achieved in NCR, topping 10,000 and almost 8,000 in MMR. Do you think that even in this year, when we have guided for sales, these two markets can grow, or do you think now they are maybe at the optimal levels and there is no further room to grow from here on? Also, in line with that, what kind of business development have you planned out for these two markets? These two are the major contributors this year on the pre-sales. What can—and what are the buffer plans from other markets which can help us navigate and grow at 10% for this year? Yeah, again, I think the aspiration would be to grow much faster than 10%, but certainly, we think in all markets that we operate in, there is a huge growth opportunity. We've looked at the data that suggests that, based PropEquity data for the top seven markets, our current market share would be about 4.3%. I think over the medium term, we'd like to take that to double digits. There is a strong opportunity for growth in each of the markets that we're in. Our market share currently in all of these markets would be in the single digits. Somewhere like NCR, we already saw two consecutive years with over INR 10,000 crore sales and a small growth last year despite a kind of 200% growth the previous year. I think NCR has demonstrated that ability to retain this kind of sales level and hopefully grow it quite a bit further this year. Mumbai has also been growing very fast at a compounded growth over the last five years of over 40% a year. We have a good portfolio lined up in Mumbai, so I do not see too much challenge in continuing our growth trajectory in Mumbai. Bangalore and Pune actually benefit from a relatively low base still. Bangalore already saw very good growth last year, but frankly, it could have been even better. We got our RERA approval for one of our major projects in Bangalore that we had hoped to launch last year on the 1st of April. That launch is underway and should get Bangalore off to a good start. Both Bangalore and Pune, we see good opportunities. Certainly, I think the plan will be to maintain the kind of growth trajectory we've seen both at a national level as well as in each geography. We have separate P&L teams with empowered management in each of the regions we operate in. They obviously each have their own growth aspirations and targets. We hope to deliver another year of kind of well-rounded growth across all the markets we operate in. Okay. Just the last question on next year's profitability on the reported basis. Given the delivery guidance we have given, do you think that mix is now moving towards more profitable projects and more recent projects? Next year, we'll see a significant turnaround in our revenue margins reported in the P&L? Any thoughts on moving to POC and base accounting? Yeah, I think we're following the project completion accounting system, and I think that we will continue with that. That's a small difference than some of our peers in the industry are following, and does create a lag in reported earnings. I think we will continue to see improved margins in reported earnings as more of the projects that are owned outright, that as we've purposely launched at a more premium end of the market, start hitting the P&L. I think you'll continue to see that. We expect a very large uptick in reported revenues and earnings around FY2028 when these last couple of years' numbers start fully reflecting in the P&L. That's when we expect a sort of step jump in the reported numbers. Okay. Thank you, Pirojsha, and those were my questions. Thank you. Thank you. Thank you. Thank you. The next question comes from the line of Puneet from HSBC Bank. Please go ahead. Yeah, thank you so much, and congratulations on great performance. Very happy to see cash flows coming in nicely. My first question, Pirojsha, is to start with the pre-sales guidance, which is a 10% growth. Do you think this time be driven more by volume, or is there still room for value to grow on these levels or realizations to grow? I have a question. No, see, actually, see, FY2025 as a base, we grew 31% from a booking value perspective, and from a volume perspective, we grew to 25.7 million sq ft at 29%. Largely, we feel that the trend will more or less continue. It actually finally depends on the underlying projects, what APR are they launching. It is not necessarily always premiumization or APR highs. It also is about, let's say, we would launch more of golf course projects. Suddenly, you will see a very big jump in the blended APR, right? Vice versa, when you see more of plotting developments, you tend to see. Ballpark, if you ask me, we should be able to see a similar trend of both volume and price growth. Understood. In your plan of launches, it would be reflected as a somewhat equal mix? Yeah, I mean, to be very honest, it's very difficult to sort of predict which all launches will perform how much. That is where the mathematical anomaly lies. Yes, let me answer it this way. Do we see good volume growth and good price growth? I would say yes, largely for most of our colleagues. Understood. That's very helpful. Secondly, if you can also comment on how your construction cost is going to trend from current levels. Collections you've given a guidance. Should one think of construction cost rising at similar level, or does it need to increase substantially given that a lot more work needs to be done now? I would say if I were to give you a sense of what we have seen, cost inflation in the last, say, two to three years, I think this has been a very stable period of time where most of the cost inflation indices have been controlled. Yes, in some markets, aluminum costs have increased, but steel prices have also dropped. Some markets have been flattish to drop, I think. Most likely, the cost indices will be—sorry? Hello? Yeah, I'm audible? Yes, sir. You're excellent. Yeah. For most markets, cost inflation, I would say, is going to be within that range. Yeah, I mean, there is, of course, finally, how would oil prices behave? That would be sort of a thing to watch out from a risk point of view. I think interest rates getting into a sort of a lower cycle, this could really benefit if it continues because the CapEx cycle will see a boost. This could have sort of a net positive effect in the long term. Very frankly, cost indices sort of depend a lot about government policies and how the allied sectors tend to behave. Parikshit Kandpal, to add to that, I think some of the global macroeconomic uncertainty due to tariffs, etc., depending how that plays out, it could lead to a further benign cycle on the cost side. We're already seeing economies from China, U.S., all underperforming. Of course, the situation is not stable and could change, but oil prices are at a low. These are all indicatives of a relatively low commodity inflation period, which would, of course, benefit us as we enter this heavy execution several years ahead. Of course, we'll keep our eye on that changing. As of now, the cost pressure environment looks relatively benign. From your spend perspective, is it likely to increase materially or similar levels as last year? I think the overall construction activity will, of course, be increasing in line with the sales uptick we've seen. Absolute spends will certainly increase, but of course, so will absolute collections. Understood. That's helpful. Lastly, on the business development side, I know it's quite difficult to give guidance, and you've given a INR 20,000 crore guidance, which looks pretty low compared to what your aspirational sales would be. Any thoughts on how one should think about it? Yeah, I think, honestly, we wonder whether having something like business development guidance really makes much sense. But since a few of you have asked us to provide it, we've tried to do so. I think what we think is that certainly, we should never come under pressure to meet business development guidance. We should only do deals if, on a standalone basis, they make sense. So, frankly, I would say this, in our view, is a bit of a low-ball guidance. We'd be very surprised if we don't significantly surpass this. I think we've, on average, over the last three years, surpassed BD guidance by about 60% on average. And we're continuing to see good opportunities and continue to see good results from the launches of those opportunities. I think both the intent is still there. The availability seems to still be there. I think we're quite optimistic that we can do better than this. Again, we don't want to provide a number and then feel that we have to do deals to get there. This is kind of generally a quite uncertain environment for the sector. We'd rather kind of hopefully underpromise and overdeliver. Just to double-click on it, from a leading question, it could also be from a growth risk point of view. The good thing is the fantastic one of the last three years. We have a series of projects and phases that we will launch of accumulated booking value of about INR 55,000 crore because a lot of assumptions have, from what we were launching, those projects have seen price hikes. There are a lot of unlaunched phases and a lot of new deals we've acquired in the last one and a half, two years. Close to INR 50,000-INR 55,000 crore worth of inventory we have, and then overall, we anyways have one lakh. The need for business development is to then see opportunities for an even stronger risk curve to drive. Like Pirojsha rightly mentioned, it's not something out of desperation we want to do, but yes, this is something more like a hygiene minimum BD would like to have. Understood. That's very helpful. Thank you so much and all the best. Thank you. Thank you. The next question comes from the line of Rahul Jain from Elara Capital. Please go ahead. Hi, sir. Opportunity. It's a couple of questions. Also, on the INR 40,000 crore of launches. I'm sorry to interrupt, Rahul. Could you please be a little louder? Thank you. Is it better now? Hello? Hello. Yes, please go ahead, Rahul. Yeah. My first question is on the INR 40,000 crore of launches. Does this include Ashok Vihar and the Bandra project? If you can update on both the projects, please. Both of those would be in our launch plan, but not, as I said, last year as well. I think in this industry, giving guidance, you should expect some things are not going to go exactly according to plan. We do have buffers in the guidance we give on all parameters. For example, last year, we gave a guidance of INR 30,000 crore of launches, and actuals were INR 36,000 crore. Even with INR 36,000 crore, several projects that we would have liked to launch did not get launched, like Worli, like our Bangalore project in Devanahalli, like Ashok Vihar itself. There is considerably more than INR 40,000 crore that could get launched if everything goes perfectly. I think the number we are confident of sharing with all of you that we will meet, even if a few things do not go right, is this INR 40,000 crore. Ashok Vihar is something we plan to launch this year. If it does not happen for any reason, that does not mean that we will not be able to do the INR 40,000 crore of guidance. Got it, sir. On the Bandra project? That, I think, we'd be happy if that launches, but if at all, it would be towards the end of the year. I'd say that we should probably assume we need one more year for, but the teams are trying to do it by the end of the financial year. Got it, sir. The second one is on how are you seeing the conversion rates in FY25 related to FY24? If you can give us the year-on-year comparison versus specific to the markets as well. You're talking about conversion rates as in walk-in to conversion, you're saying? I mean, how many customers? Yes, yes, yes. I mean, it's very, very divergent, to be very frank. I mean, it can go as low as, say, 7% and can go high as 22-23% and sometimes even 25%. It depends upon, very frankly, the value proposition that the person coming into the site sees from price, product, and payment plan, right? Generally, as a rule of thumb, when you see anything which is slightly lower in APR, generally, as a rule of thumb, like plotted and all, the conversion rates can even be higher. Yes, when you look at a ticket size of INR 10 crore, INR 5 crore, INR 15 crore, it's an informed call, so it can be between 10-15%, yeah. Like I mentioned, the range is quite diverse, but rule of thumb, you can say 10-15%. Got it, sir. One last one. I think lately, in the market, we are seeing a lot of builder subvention coming into play in terms of new launches. If you can just share, what is your share of subvention in the percentage of total sales? See, we don't tend to push much of subvention other than, say, negative units, as in the units that don't have great views and the likes of it. They hover in typically low single digits at any point of time. Usually, we tend to push wherever the last stage of completion of project is coming. It looks more like optical subvention, but, say, a year and a half or two years, you are going to see OC, and you just want to sell the units which have negative views, say, facing a railway track or the C category inventory, as we call it. Okay, sir. Thanks. Thanks. The next question comes from the line of Pritesh Sheth from Axis Capital. Please go ahead. Yeah, thanks for the opportunity. First, a very strong performance in fourth quarter and overall for the year. See, I think while industry has been flattish to marginal decline in terms of volumes, we have clocked 29% volume growth. What do you think is driving customers out of their existing homes to buy these new homes from you? Anything specific you want to highlight? I mean, do you think market has got tough and it needs some additional sales push to drive these kind of sales? Your thoughts on that. Thanks, Prateesh. Actually, if I be very candid and honest, we've been reading for the last at least one plus year a lot of negative chatter on newspapers, and market is slowing down. To be very frank and honest, when we see our launches, our numbers move up and down mostly our ability to get launch approvals on time and bring it to the market. If you see quarter one last year, we had very good launches, so the number was very big. Unfortunately, quarter two and quarter three some launches were spilling over. We had a reasonably decent quarter. Quarter four, we could get most of our launches, and still some, actually, frankly, slipped. Still, we got a sort of a fantastic INR 10,000 crore number and ended the year at a very good number. For us, I think, because we are very diversely spread and our products are also not in one city or in one micro market of a city, we are seeing very strong demand. That being said, your macro question on what is driving demand, I think it's simple wealth creation and aspiration in India, right? If you just look at some data points, depending on which report you refer, give or take, India's GDP is going to get doubled in the next five to seven years. We would get into a sort of a, again, IMF, World Bank, which reports you refer to, we could grow about $30 trillion-$35 trillion in the next 25, 2047. And the discretionary income is creating a lot of aspiration, right? I think some of the macro factors, of course, impact your concurrent demand in a particular quarter in a year, but I think the macro environment looks a little bit more positive in the last three, four months than, say, what it was, say, 12 months back. Because one, the government is pushing a lot of things for the improvement of the disposable income, like the INR 1,200,000 kind of a thing will increase demand for the consumption-led sector, which will create a dominant effect by those people feeling secure about their jobs and therefore buying homes, as well as things like monetary policy, reduction of interest rates. I think a combination of wealth creation, economic looking good, government bringing some real strong action in the short term, I think it's amplifying. I do feel that for customers, one trend I've noticed in the last, say, two to three years gradrawally changing is consolidation is again becoming more dormant, right? I think with time and maturity and products becoming more selective, customers would want more predictability of their occupancy coming on time and what reputation the builder brings. I think there is going to be sort of a gradrawal shift in the next four to six quarters where each quarter you'll see a better sort of consolidation story for corporate developers or large developers in India. Sure. I understand the macro part. Just specific for you, is it the consolidation which is driving the demand for a brand like us or anything specific you are able to? I think diversity, Pritesh. I think diversity of being very strong operative teams on ground in all the markets, right? If you see some of our peers have struggled entering a new market by their understanding of local laws or consumer demand, right? I think for us, we've had a share of learnings 15-20 years back. Having operative teams on ground makes the predictability of your product price proposition very accurate, right? Just being very focused on our launch calendar, seeing that every market has backup plans because there is strong demand, right? The only challenge could be our ability to bring a launch into the market or not. Yeah. Got it. That's helpful. Second is on the micro market or market-wise contribution, which is big into your guidance. Do you think large part of the growth that's going to come next year is going to be Bangalore and Pune driven because they are still at low base? I mean, Bangalore, Pune, Hyderabad, all these other markets, while NCR and MMR remaining kind of flattish. Beyond next year, I think initially you mentioned about having a double-digit kind of market share. Right now, as your presentation points out, we are a INR 7 trillion market. Then our results should be around INR 700 billion in future, let's say, if market doesn't grow. Do you think the current scheme of markets are enough to contribute that INR 700 billion? I mean, can you pull off like INR 100 billion, INR 100 billion-INR 150 billion each from in these large markets? Your thoughts around that. Yeah, thanks for the question. No, I don't think that we will depend only on the smaller markets for growth this year. I think there's a good opportunity to grow strongly in both NCR and Mumbai. It will depend a little bit on the launches that are coming through, but certainly, we have a very healthy pipeline in both of those markets. As I mentioned, NCR has seen two consecutive years of INR 10,000 crore sales. Mumbai has grown fast now for three, four years in a row, and we hope to do that again this year. Certainly, Pune and Bangalore also represent opportunities. I think the double-digit market share is, of course, not a very short-term aspiration. It will take us a while to get there. Our view is that we can consistently outgrow the market given the strength of the brand, given the strength of being perhaps at least for now the most national real estate developer in the country, and with a very moderate market share in all the markets we operate in. I think what's very exciting for us is that if you look at all of our top four markets this year, for the first time, we would be either number one, which we were in Pune, or number two, which we were in Mumbai, NCR, and Bangalore by sales value. In all of those, despite being one of the leaders, we would have a single-digit market share, implying to us that there is opportunity for significant growth in each of those markets. Of course, there is over time also an opportunity to enter new markets as we have with plotted development and even as we entered Hyderabad with group housing. I think the opportunity landscape to us looks very exciting, and it's not just a two- to three-year sort of time frame we have in mind. There are a couple of decades of very strong growth opportunity ahead of us. I think that's the exciting part of being in residential real estate today. It is a fast-growing sector, but quite aside from the sector's growth, there is this huge market share gain opportunity, which we have been consistently able to tap into over the last several years. I think one of the things we've been happy about, and we also included a slide in our investor presentation, is that we have seen the ability to grow the business across various cycles. Last year was our eighth consecutive year of booking value growth. That includes years such as when COVID started, when some of the major reforms like RERA were introduced, the NBFC crisis. I think the advantage of having a strong presence, a strong brand, but a relatively small market share is that irrespective of how the market performs, there is a market share gain opportunity that remains. If we're able to execute well against our plans, we do see that ability to year-on-year grow market share. Got it. That's very helpful. Just one last on the cash flows. We had a surplus cash flow for this quarter despite spending around INR 2,700 crore on BD. How do you think the next year would be in terms of the surplus cash flows as well as the net debt? I mean, are we now going to continue this trajectory and be cash flow positive at the FCF level? Yeah. I think it'll entirely depend on the quantum of business development we do, which, as I was saying earlier, we want to measure business development more project by project rather than looking at abstract numbers at the company level. Each deal needs to make sense on its own merits. We need to be confident that the risk-reward for each deal makes sense. If we are confident, we would be happy to do double our business development target for the year, which, of course, would require a different amount of cash investment than if we do INR 20,000 crore. Certainly, if we were to only meet our business development guidance, I think we would be operating cash flow post-BD positive this year as well. I suspect we'll do a little bit better than guidance, and therefore, are happy to invest capital into growth as we have over the last few years. Of course, having raised the QIP, the goal is to deploy that capital. The constraint we've set ourselves now is that we'd like to keep net debt below INR 10,000 crore. Instead of looking at a net gearing target, we're looking at an absolute net debt cap. I think we can use that for the maximum that we will go to. Within that, it'll be more a question of the scale and quality of deals we see. We've guided to INR 21,000 crore collections, which is 40% higher than our last year's guidance and 20% higher than actual. Hopefully, we can do that or better on collections. Operating cash flows should therefore be extremely healthy. The question of whether they are post-BD positive or not is a question of the amount of BD we do. Honestly, my hope for this year would be that we'd continue to find good deals, continue to find opportunities to maintain this more rapid growth trajectory we've seen. I think a lot of value unlocking can happen for the business by sustaining the kind of rapid growth we've seen. If you look at our imputed numbers, these are very, very high returns on equity, returns on capital. We are quite happy to deploy further capital if we see good opportunities on an ongoing basis. Perfect. Thanks for answering our questions. All the best. Thanks very much. Thank you. The next question comes from the line Parvez Qazi from Nuvama Group. Please go ahead. Hi. Good afternoon. Thanks for taking my question and congratulations for a great set of numbers. Two questions from my side. For FY2025 as a whole, what percentage of our sales would have come from, let's say, available inventory or sustenance sales, and what would have been the contribution from new launches? Okay. Very frankly, I wouldn't have the number offhand. But yeah, I mean, if you largely look at a calendar, we would have every quarter, give or take about 65%-70% numbers would be coming out of launches. And rest of the world could be a phased launch or sustenance, give or take. Sure. Did I get the number correctly? You said we have about INR 55,000 crore of available inventory across phases available for sale going ahead. Did I get the number correctly? Let me maybe re-clarify. For the acquisitions we've done, say, from FY2023 onwards till now, we've launched some projects, there are some that are yet to launch, and the price growth has also happened. Between INR 50,000 crore-INR 55,000 crore worth of inventory we have from just fresh inventory of acquisitions, which are largely outright in nature. Then a total inventory of, even we have some township projects like Panvel and all, total inventory would be in excess of INR 100,000 crore, about INR 110,000 crore. Sure. Secondly, I mean, there has been a very strong growth in collections and OCF. That also has been accompanied by an equally strong growth in our land and approval-related outflows from about INR 5,300 crore in FY2024 to about INR 9,000 crore. Now that we are sitting on a very strong inventory, where do we see this trajectory going ahead in terms of land-related outflows? I think if you see most of the launches, in our entire portfolio, we have different sorts of projects, right? We have some projects which are township projects. In places like Pune and places like Panvel, part of the Mumbai portfolio, we have huge inventory. The idea is to create value in the long run. We have some inventory even in Ahmedabad for that matter, right? These are large-scale projects where the endeavor is to create value in the long term, more like a land banking strategy we had with, frankly, very, very low invested capital. There is a second strategy which is largely about buying land and doing churn very fast and unlocking and creating high PAT margins where the market opportunities continue to exist. Some of it is through the acquisition right now. We would continue to buy land where we feel that our ability to turn them around within 6 to 12 months is very high, and our ability to improve our overall margin profile exists. If you look at some examples, like in Mumbai, we bought something in Kandivali by the name of Godrej Reserve. If you see, it was a very, very sizable land parcel, very sizable investment we did. In the last two odd years, first year we sold INR 2,700 crore, then last year we sold INR 1,600 plus crore. Similarly, in another market of Mumbai, we bought a project and launched in Mahalaxmi. We did about INR 1,100 crore just last year. These are coming out of an investment thesis that, yes, these projects can be churned very faster, and these are places where the organic demand is very high. These are city-centric projects, unlike the township project which is slightly off city center. There, I think the idea is to add more projects. Sure. Thanks for your answers and all the best. Thank you so much. Thank you. The next question comes from the line of Kunal from Bank of America. Please go ahead. Okay. Thank you. A couple of questions on your imputed margins. The first one is, given that you have 50,000-55,000 of inventory available from some of the recent projects, is it fair to assume that the visibility on achieving imputed EBIT margins of give or take 26%-27% still exists for the next two odd years? Just as an extension to that, as you undertake the next phase of business development, INR 20,000 crore plus, the margin profile that would come alongside that new business development, would it be very different from what you are achieving currently? Thanks. I mean, the first question is a very quick one. I mean, yes, the endeavor will be to continue maintaining and improving our margin profile. I think, like Pirojsha was mentioning, the reason for having, frankly, a very conservative business development target is to actually look at these with at least meet these margin profiles, if not more, and that too in a way that we feel capital churn can be very fast. Yeah, I mean, we expect that this should be a long-term trend that we would like to maintain. Got it. Just a quick clarification. Again, is it fair to assume that the number reported is all sort of all operating margin profile and devoid of any one-time benefits for the year? Yes, yes. You're right. All operating margin. Great. Thank you so much. Thank you. The next question comes from the line of Aakash Gupta from Nomura Research. Please go ahead. Hi. Hi, sir. Thank you for taking my question. My question is on the imputed EBIT margin for FY2025. Despite having higher economic interest on our P&Ls, our imputed EBIT margins have declined from 26.8% to 26.2%. Just wanted to understand why. My second question is that why is there a delay for the Ashok Vihar project and the Bandra project? Thank you. Yeah. Thanks for that. I think you did. EBITDA margins are essentially flat, 26.8% and 26.2%. This is largely led by individrawal project-led mix. For example, in the base year, which is FY2024, we had gotten a couple of Noida launches where the land cost to booking value was 8% because of the tremendous movement in the market that year on the very timely acquisition. I think we think it's broadly in line. Actually, at the PAT level, we had guided 10-15% margin. We're actually slightly above that this year. I think reasonably happy with the margins achieved during the year. Again, don't really see them as very different than the previous year. The reasons for the delay in Bandra are the site clearance, etc., as a slum redevelopment project has taken more time than anticipated. It's not a process that we are directly involved with. It's a partner working on that. There has actually been tremendous progress during last financial year. I think there's much better visibility now than ever before. We're hopeful that we can do it by the end of this year. I think one should assume next year is probably the safer bet for that. Ashok Vihar, there has been an issue that affects the whole market where there are a lot of trees on the site, and the relocation of that tree requires significant approvals. Given the environmental issues in NCR, this has become an issue taken up by the court. We're again hopeful that we'll see good progress this year. The only silver lining in Ashok Vihar is, of course, our underwriting terms have now drastically changed as the market has improved. If we are able to now launch it this year, actually, this delay may have ended up being a benefit. Of course, we do not want to stretch that logic too far. Of course, we are looking to launch the project as soon as we possibly can. Understood. Sir, just a follow-up question on the imputed margin. If I understand, the prices at which we are launching our projects versus the prices at which we have underwritten our projects, there is a difference. I mean, we are getting benefit of price appreciation. Why isn't that flowing into our EBIT margins? I think it partially is. It's also estimates of cost to completion. There would be reasonable buffers in those estimates. Yeah. We've also been maintaining because, as you would appreciate, these are forward-looking numbers. We just want to be a little bit more cautious on the contingency and escalations that may or may not happen from a cycle point of view. Just build some buffers before releasing out these numbers so as to sort of not give a sort of over-optimistic figure. Yes, if things remain what they are in terms of cost indices, this has an upside to it. Understood. Thank you so much, Pirojsha sir. Thanks. Thank you. The next question comes from the line of Kunal Lakhan from CLSA. Please go ahead. Yeah. Hi. Thanks for taking my question. Just on the just one bookkeeping question first. What's the value of the unsold inventory that we have for the books? Around INR 53 crore. INR 53,000 crore. Okay. Just I'm going to the guidance of INR 40,000 crore. If you just go by what we did in, say, FY2025, almost out of the INR 29,000 crore of sales, two-thirds came from new launches. And if we plan to launch about INR 40,000 crore of inventory next year, assuming we have a very similar run rate, then we have to be relatively conservative either on the unsold inventory monetization or how should we read this? Yes. I think, again, it's our philosophy on guidance to be conservative. You can read that how you'd like to. We've provided kind of our track record on guidance. This is an industry that's inherently uncertain. I think some of our peers have, on occasion, badly missed guidance by kind of probably disclosing what their internal plans are as guidance. We don't want to do that. You're right that if we are able to launch almost everything that we can launch even close to on time, and we see the same sell-through rates that we've seen over the last two years, there will be significant overperformance of the guidance we've given, as there has been in some recent years. We are quite hopeful, and that will be the endeavor. We do not want to be talking to you guys in six months and feeling very sheepish that we are at risk of missing the guidance. We are confident of meeting this. Of course, in some very bad scenarios, even this is not like this is low guidance. It is 20% over last year's guidance after a period of 50% plus CAGR for several years. I think this is, at the end of the day, also a number that has never been delivered in terms of sales by any developer in the country. It is not that we are giving very low-ball guidance by any stretch. Certainly, you are right to assume that if we are able to deliver the same performance on launch timelines and the same performance on sales throughput, we will exceed this number. Sure. That's helpful. Secondly, on the cash flow side, if you look at our spend on construction, even for the full year, it's about INR 5,500 crore for FY2025. I mean, considering we are selling 25 million sq ft this year versus 20 million sq ft last year, this spend on construction seems a little lower. This should materially ramp up, I presume. You're absolutely. In that context, how should we look at cash flows, operating cash flows also? You're absolutely right. I think, as you would see, many of these launches were fairly high-rise buildings, so a lot of time goes into the piling work, excavation work. In places like Hyderabad, you also have to do something like controlled blasting because the terrain is very rocky. Most of our first 30-40% is so that the quality of steel is very high, especially 20-30% is more time-laden so that the quality of steel is very high. Fortunately, with most of the things on the excavation, piling, and foundations, I think the POC figures will jump. The exciting part is that we typically have 20-30% plinth level. From regulation, you can normally collect 70% up to structure, and then there is drawal post-structure, which is finishing and all. The exciting part is we now have a lot of good opportunity to accelerate construction, which will benefit both POC jump, but also will improve our collection trajectory significantly, which is why if you notice on the back of close to 49% growth in collections from INR 11,400 crore thereabout to INR 17,000 plus crore, we are now guiding INR 21,000 crore kind of collection figure. Now, operating cash flow, very difficult to really put up a number, but I think the long-term average, you can always assume that we are consistently increasing year on year on operating cash flow and becoming a more self-sufficient way. I see that trend will continue and will depend upon our ability to execute all the projects well. If we do everything well, this could be even higher than this year. With some degree of this, it could be slightly lower also. Yeah, I mean, it's all going to be in the most likely rising trajectory as we move from the one year to next year. Sure. Thank you. Thank you. That's very helpful. Thanks so much. Thank you. Thank you. Thank you. The next question comes from the line of Manoj from Girik Capital. Please go ahead. Good afternoon, sir, and congratulations on good results. As you said, you have an aspiration of double-digit margin on the macro market. You have always told that you are bullish on real estate in a longer way also. It is a good, pretty dominance to be double-digit one in any macro market. What more new you would have to do for that, and what better you have to do what you are already doing? I think we like to take one step ahead. I think Pirojsha was rightly mentioning that this is a massive opportunity for us to target towards from a long term. If you just try and see from what happened in three years, from INR 7,850 crore to now, our market share has more or less moved from 2.5% or thereabouts to about 4.3%. Just moving one or two percentage in a fast-growing market has a huge, massive impact from a booking value. I think we're actually doing sort of a reverse engineer question for ourselves, which is that what do we do to execute these projects extremely well so that the profit that we've already logged in to begin with, that gets into accounting, point number one. Point number two, we have four massive big markets where some markets have started performing to sort of a good potential, like INR 8,000-10,000 crore, like Mumbai and North. How do we grow this internal aspiration to continue growing by 20%? At the same time, how can we especially grow markets like South, which has a huge potential, and Pune, which has just started firing for us? Yeah, I mean, which is why how we've given you guidance. I think the guidance that we've given from a sales perspective is something we would like to achieve as a hygiene. With that hygiene, I think the real challenge and focus will be to speed up execution. Layering that with good BD, good launch pipeline, how can we beat these in the medium term to long term, year on year, is going to be the aspiration. I think we are on the right track. We're not really targeting immediately to get into double-digit. We already clearly, number one, give or take at least 30%-40% than our nearest competitor. So it's not a booking value game, at least for us. It is more of a margin expansion and execution game from here on. Okay. Because growth is sort of hygiene now for us, yeah. Pardon? I'm saying growth is more or less hygiene for us now. It's to look at other buckets of performance. Yeah. Okay. Great. As you are talking about the margin, I understand margin is a 360 degree approach from many things: sales volume, at what price the land was bought. You talk about how fast the project has been turned around. That is also one factor while doing a JDA. How much, is there a minimum balance? Okay, there is a project. If you can faster turn around, you may have a lower margin. What should be the minimum base margin you target while doing a JDA? Is that much margin we should have even if the project is late around because of every risk the project carries? Is there something on that? Yeah. I think Pirojsha sometime back mentioned that generally we've historically been saying 10-15% margin. I think of late, we have been targeting up to 15% PAT margin. I think the kind of deals we've been able to secure, there have been many projects where, in fact, we're delivering slightly better than even 15%. I think give or take 14-15% PAT margin is what we're looking at. Of course, there are plotted developments where this goes up to between 20-25%, even 30% of PAT margin. At a portfolio level, I think 15% is what we want to consistently do. In our past JDAs and unsold inventory carries that kind of margin, which is self-sufficient in this case? It depends. See, the project that I talked about from FY 2023, the inventory, that should be making this. Then the land parcels that we bought in Panvel, it could be in similar range. In Ahmedabad, it could be slightly lower. In places like Ashok Vihar, this could be significantly higher. Thank you so much, sir. Ladies and gentlemen, that was the last question for today. I would now like to hand the conference over to the management for the closing comments. I hope we've been able to answer all your questions. If you have any further questions or would like any additional information, we'd be happy to be of assistance. On behalf of the management, thank you again for joining us today, and apologies again for having started late. Thank you. Have a good weekend. Thank you. Thank you, gentlemen. Ladies and gentlemen, on behalf of Godrej Properties, that concludes this conference. You may now disconnect your lines.