Ladies and gentlemen, good day, and welcome to the Oberoi Realty Q4 FY22 earnings conference call. We have Mr. Vikas Oberoi, the Chairman and Managing Director of the company, and Mr. Saumil Daru, Director of Finance of the company, with us for the call. Please note that this call will be for 30 minutes. For the duration of this conference call, all participant lines will be in the listen only mode. This conference call is being recorded. The transcript of the same may be put up on the website of the company. After the management's discussion, there will be an opportunity for you to ask questions. Should anyone need assistance during the conference call, you may signal the operator by pressing star then zero on your touchtone telephone. Before I hand the conference over to the management, I would like to remind you that certain statements made during the course of this call may not be based on historical information or facts and may be forward-looking statements, including those related to general business statements, plans, strategy of the company, the future financial condition and growth prospects. The forward-looking statements are based on expectations and projections and may involve a number of risks and uncertainties and other factors that could cause actual results, opportunities and growth potential to differ materially from those suggested by such statements. I now hand the conference over to Mr. Vikas Oberoi, the Chairman and Managing Director of the company. Thank you, and over to you, sir. Thank you. Good morning, good afternoon, good evening to all of you as per the time zone from which you have logged in. Welcome to the conference call of Fourth Quarter Financial Year 2022 results and business updates. Thank you all for taking time to attend this call. I hope your family and you are doing well and keeping yourself safe. Before we begin, I would like to share a few quick updates. We closed FY 2022 with our best ever bottom line and the PAT of the company crossing INR 1,000 crore mark for the first time. This gives us immense confidence to continue to grow and deliver value to all our stakeholders. On the business development side, I'm very happy to let you know that in the last quarter we closed two land acquisitions. One is a land parcel at Pedder Road, and the other one is a land parcel at Kolshet Road, Thane. The Pedder Road property has a potential of 75,000 sq ft carpet, say about 125,000 sq ft saleable. The Kolshet Road property could give us another 2.5 million sq ft. I'm sure most of you have gone through the numbers in the presentation. As you would have seen, all the projects have contributed to driving the top line. With this, I will open the floor to question and answer, and happy to address each of you individually. Thank you. Ladies and gentlemen, we will now begin with the question-and-answer session. Anyone wishing to ask a question may please press star then one on your touchtone telephone. If you wish to remove yourself from the question queue, you may press star then two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Pritesh Sheth from Motilal Oswal. Please go ahead. Hi. Thanks for the opportunity. Congrats on the new deal signings. First question is on you know when are we looking to launch those projects? Are they very near to or near to the launch, or we are still yet to fill in the design and development part of it? Yeah. Hi, Pritesh. We obviously just acquired the property, and we've immediately got on to designing, you know, whatever it takes in terms of getting our approvals in place. We will then quickly, you know, go out there and launch these projects. From our past experience, we feel that it could safely happen within now the new financial year for sure. Whether it's the third quarter or the fourth quarter is something one needs to see. It's certainly within this year. Can you provide update on the first Thane project that you acquired? In terms of launch, how far we are? We are still waiting for final approval. You know, as you know that RERA does not allow you to start marketing the project until you have all the permissions in hand. We do have an approval, but you need environment clearance. Even that is like literally happening as we speak. Once we have that in our hand, we would probably, you know, roll that out too. That looks like more like the second quarter, this financial year, 2022-2023. Sure. Lastly, on Mulund projects. We are still seeing the construction progress at 70% on an average for both these projects, and I think the delivery timeline is scheduled at December 2022. Are we on time to deliver that? I mean, 30% of construction will we complete that within the next couple of quarters or we are going to see some delay in terms of possession? No, no delay at all. We are absolutely pushing to complete it within the given timelines. Sure. Okay. That's helpful. Thank you. That's it from my side, on this. Thank you. Thank you. We'll move on to the next question. That is on the line of Dhruvesh Sanghvi from Prospero Tree. Please go ahead. Hi, sir. I just want to know, first question is related to the Three Sixty. You know, I mean, we have been talking about the OC. If you can guide us in terms of where exactly are we stuck. I understand that there may be a lot of buyers looking to go for the post GST because that project is almost complete. Some thoughts on that will really help thinking where is it going. You know, we are very certain it should happen within this month, and we ourselves are waiting. You know, this is a fully built, fully paid-up project, and really looking forward to now getting down to selling it. Right. In terms of Thane, when you say you know, the environmental clearances, but is it... I mean, I know that you are more excited, and naturally, the entire organization is working towards that, and we are waiting for it. Does it look that this Q2 2023 looks like a really strong timeline that we will be able to mostly manage and go for it, considering no pandemic and no such things, of course. Obviously. No. Firstly, you know, we are ready with our show apartment, almost getting ready with our show apartment. We should have our approvals in hand within the next, you know, maybe a month or month and a half. We'll be ready to roll. You know, second quarter of this financial year looks absolutely achievable. Now, the idea is how you wanna time it. Again, you know, next, what's the real period in which you want to launch and stuff like that. That probably will be the only consideration. Barring that, we will be ready in the next 60 days to roll. Sure. Can I squeeze in one more, please? Yeah, yeah. Sure. Please. Yeah, in terms of, similarly, you know, the kind of run rate that we are having, including Mulund, Borivali and Goregaon, is just fantastic. It looks very clearly that in no time you may launch another individual towers at Borivali and Goregaon, considering very less inventory available now. In that light, how are customers responding when they hear the RERA timelines will be 2020 still and for new towers like F and maybe anything else? Even when we check on the ground side about the A, B, C, D, there is a slight delay because of the COVID and all of it, due to the construction activity getting affected. When will we see, you know, possessions coming in in a big way? For example, Mulund is scheduled, I am assuming Sky City A, B, C, D. Some timelines on possession and along with the Oberoi Mall at Borivali, because that will add to the charm and maybe help us on the driving side also. No, absolutely. I appreciate your study on our project. In fact, we topped up with our mall this month itself. We are done with the mall. Now internal finishings. Our internal target is to make sure that we have our mall operational by next year. We are also doing a five-star hotel on top of the mall. You're absolutely right. It's almost like a mini Oberoi Garden City in Borivali. It's 25 acres. Five towers are topped up, finishing going on, and the clubhouse work is happening. Really, I mean, as a product, you know, I shouldn't be down-talking about my own product, but, you know, I wanna use this forum to say that probably there's nothing parallel to what we've built, and we ourselves are very happy and excited about what we've done. As far as timelines go, you know, we've always tried to beat expectations of people. Had it not been for COVID, we would have done that even within the existing five towers. You know, RERA timelines are more of a safety net for us. We obviously try and do them faster. You know, we've set these dates, and people, you know, with God's grace, have so much trust in the brand, which we want to at all costs retain. We don't see any resistance in people wanting to buy flats irrespective. I just wanna add, because you did say about Goregaon. Today, we almost don't have a single flat to sell in Goregaon. The next inventory for Goregaon will be delivered only once Elysian is ready. You can imagine what it will do to the pricing in Goregaon. It'll completely go through the roof. Because as a location, it's so well-established. Everybody wants to stay here. They love the way it's been built. You know, secondly, you see the way it's gone, we literally don't have anything to sell anymore. Just to add on, I think just the feedback there also that, you know, prices are already 10%-15% higher than what you were selling the last apartment pending. Yeah, absolutely. In fact, you know, I was personally very surprised to see pricing at beyond INR 40,000 per sq ft on carpets also in resale. I was jokingly telling my people that, you know, our customers do a better job selling at higher prices than we do. Yeah, you're right. I mean, you know, I'm happy for them. I'm happy that we have enough to sell also. Unfortunately, it'll only get ready and build once it's done. Our work has picked up. Elysian is like today beyond 13, 14 floor. It's picked up well. I think there also we will top up our construction in the next 18 months, and then we start finishing. People will see volume of work happening. Yeah, I mean, no complaints really. I mean, things could have been faster, but, you know how it is. Everybody is going through this entire post-pandemic, challenges of labor, of growth, of people. It's a good problem to have, so we are not complaining really. One last question on strategy, is, you know, the way we are establishing our superb establishment in Mumbai, why are we not, you know? I mean, of course, you have been talking that you are keen and you will at some point in time seek outside Mumbai. Any thoughts on where any progress made and how are things shaping up there, if at all? You know, we have made progress. We know, again, don't want to set expectations. I'd rather close them and come back to you. We're very close to closing things. Some of them we will, in fact, even signed an MoU. Very excited. Like I said that I don't want to set any expectations. I'd rather do it and then tell. We're often blamed for you know, being conservative. You know, in a market where everyone is always a cowboy, you know, it's okay to be conservative. Thank you. Best of luck. Thank you. Thank you, Dhruvesh. Thank you. The next question is from the line of Parvez Akhtar Qazi from Edelweiss Securities. Please go ahead. Hi. Good afternoon, sir, and thanks for taking my question. Two questions from my side. First, when can we see incremental launches in Goregaon, Borivali, and Bhandup project? That is question number one. The second, in light of the commodity price increase, what is the outlook on the pricing front, both in our projects to mitigate the impact of commodity price and also in general at a systemic level? These are my questions. Thank you. Thank you. Parvez, firstly, Goregaon and Borivali towers will happen as I spoke earlier. You know, we did say that they are on the cards. The inventories are low, so we will probably start rolling out one tower each, pretty much, maybe the next quarter or the quarter after that. On the commodity price increase, you know, we are very lucky. Our price points are much higher, and the contribution of construction cost is significantly lower compared to many other developers. Let's say, you know, if my construction cost probably is about 20% of my overall cost or 25%, if there is a 10%-15% increase or a 20% increase, it's effectively only about 4% or 5% on the sale price. We are... Of course, I mean, you know, the sensitivity to price increase by 5%-10%, customers are not really bothered because they also see commodity cycle, you know, catching up or there is an increase in steel and cement prices. They don't mind that increase. We have actually introduced projects with higher pricing, and we have had no resistance at all. We're not very unduly worried about commodity. Only wherever developers are selling at lower price and where the construction cost contributes probably 50%-60% of sale price, they have to really worry. You know, yeah, that's my two bit. Sure. Lastly, any update on the Bhandup land that you had acquired? When can we see a launch there? Bhandup, we will probably be doing it in a different way. We will be using it to generate FSI for our other projects. We may not do a direct sale on Bhandup, but we want to do some sort of a PAP project which will enable us to generate FSI, and that's what we are really looking at. Sure. That's it from my side and on the question. Thank you, Parvez. Thank you. The next question is from the line of Samar Sarda from Axis Capital. Please go ahead. Hi, Samar. Yeah, thanks. Hi, Mr. Abhay, and congratulations on another good fiscal gone by. All the best for FY 2023. I had a couple of questions on Pedder Road and Kolshet Road. Since, like, our shareholding in the project is high, shall we assume that all approvals and premiums are also to be borne by us? The answer is yes, but there is not much of a premium to be paid in both the projects as such. They are very, very good projects. We really like, I mean, it's a good project, I would say. Very balanced and really happy having done that. Okay, great. There's also some like news flow that looking to acquire another 7 acres next to ODC in Thane, given the increase in FSI and the amount of FSI you're getting there. If you could help us understand that thought process. No, no, nothing. I mean, we are not acquiring any new land anywhere as yet. Fair enough. Just a book opening question for Saumil. Saumil, the balance cost to complete tower A and B at Three Sixty West, could you just help with that number, please? Balance cost to complete on tower A and B. I can check on that and come back to you. Yeah, sure. Thank you. Yeah. Okay. Thanks. All the best. Thank you. Thank you. We'll move on to the next question. That is from the line of Rahul Jain from Dolat Capital. Please go ahead. Hi, sir. Thank you for the opportunity. Just have a couple of questions. First is on the Thane micro market. If you can share your thoughts on the strategy in this particular micro market. Is it to go deep into the micro market or just like some of your peers or, the new land acquisition is just a one-off opportunity? No. You know, frankly, let me tell you, all our land acquisitions are opportunistic. We do not, you know, buy land unless and until we know that we're gonna make money. The strategy is very simple. Kolshet Road and this Pokhran Road don't really compete with each other. They're both different market as far as price points go. We are happy to be in both these price points. We thought that, you know, they'll complement each other. Yeah. As far as quality goes, you know, we will be doing both these projects, you know, in the same Oberoi Realty style. We will make sure that, you know, they are both comparable in terms of quality. Location will drive the area and the ticket size and the price, and that's what we've been doing really, and we will do that. Got it, sir. That's very clear. My second one is on Mulund. Just the data we've been on. How much CapEx is pending there? Pardon? CapEx. Technically, it's not a CapEx, it's an OpEx. If you look at it, we have already told you that, you know, Mulund is about 70% complete. The remaining 30% you can, you know. Right. Between the two projects put together, it'll be about INR 400 crore-INR 450 crore which will be pending. Got it, sir. Thanks. Yeah. Thank you. Thank you. The next question is from the line of Sameer Baisiwala from Morgan Stanley. Please go ahead. Hi. Thank you so much, and good afternoon, everyone. Good afternoon, Sameer. How are you? Very good. Thank you. First question is on, you know, update on the Glaxo- Worli land? Again, you know, we originally wanted to do commercial, and then pandemic happened. Post that, obviously, you know, we thought that we should do ready because ready is doing really well. Now again, you know, markets say that retail is back, offices are back. Frankly, you know, you know, on a side note, I'll probably call you and check with you what should one be doing. We're pretty much confused. We now have both plans ready, and both make a very compelling business decision. You know, again, like I said, that maybe within this quarter we will take a call and move on. Yeah. Okay, great. Thanks. The second question is on Mulund sales momentum. Looks like you did pretty nice 65-70 units, maybe higher than, you know, last few quarters. Anything that's helping us in Mulund? You know, two things I'll tell you. One, you're so right. I used to always compare Mulund to Borivali, and I thought that it's always doing 60% or 70% of what Borivali does. It's you know, somebody did tell me, and I was actually even reading somewhere that one of the social media chats where they said that you know, this is probably by far the best project in Mulund. I kind of resonate and agree, not just because it's my project, but it's really really turned out well. Today you know, we've also started taking people to the actual apartment, and from there they can see the landscape, they can see the clubhouse that we've done, so on and so forth. I can tell you very safely that this year could be the year for Mulund, and we've a lot to sell, and I'm very hopeful that it'll really, really do well. It, it's great. The final question, you know, you have taken a INR 3,500 crore approval for fundraise, 2,000 equity. Anything more to it or it's just enabling this solution? You know, I'll let Saumil answer this. He's not spoken a word since we started. Okay. Hi, Sameer. You know, we have been doing this, you know, for many years now, kind of continuously. This is, as you pointed out, you know, only an enabling resolution. That's about it. I don't want anyone to read anything more into it than the fact that it's just an enabling resolution. Okay, fine. Great. Thank you so much. Thank you, Sameer. Thank you. The next question is from the line of Manish Gandhi from KPMK Investments. Please go ahead. Hi, Manish. Yeah. Hi. Yeah. Hi. How are you? I'm good. How are you? Thanks for the opportunity. My first question is, regarding the Three Sixty. Due to the time we have lost in last one year, how do you see still the demand? Because many buyers who must be in the market, they might have also bought somewhere. Of course, related to that, why would now we sell at the price we were selling? We should be much, much higher. Manish, you have answered your question with the answer I would have given to you that we have lost nothing. We've only gained. I mean, you know, we'll get a much higher price, as you rightly said. You know, I mean, you know, frankly, sometimes these things help you. Not always. We never predicted this would happen, but since this has happened, it's a humongous opportunity. We are already closing deals at, you know, 30, 40, 50% higher than what we were hoping we would sell at. We are not complaining. We are salivating with you. Okay, great. One more question on the competition, not the competition in selling, but the competition in doing deals and buying land. Last 1-2 years, because of whatever the tailwind in the sector and premium, and I feel in the suburbs, every second building is up for the redevelopment. The other developers are having much better cash flow. How do you feel land buying or the JV opportunity compared to the 2 years back? You know, again, I'm not really complaining, but everybody, you know, kind of almost complains about the way we go about doing our business development, and yet we continue to be most profitable and, you know, churn out projects, you know. I don't think, I think we have a very good formula for buying land and the way we go about doing it. I wouldn't want to change much on this. We want to remain opportunistic. We want to, you know, buy land, and we wanna buy land which is large and which has scale or which is strategic, and don't want to go in for, you know, like what everyone else is doing. It's not that. Our strategy's never been that. We continue to be, you know, doing what we do best. No, I understand that. I was just asking the general question. As I say, it's not a competition to us, but in the market side. Anyways. The last one is on Commerz III. I suppose you are having a small building also coming next to it, Commerz IV. Or any updates on how the demand is moving over there? You know, again, like I said, that the window for commercial offices has suddenly opened up. Every company in the world has realized, including the Apples and the Googles of the world, that, you know, they need people on ground and in the office, not working from home. The demand for offices has also spiraled up. You have to remember that, you know, construction for offices was literally like not happening in the past three years because people didn't know where the markets are going. There is no Commerz IV. The building that you physically see with your eyes is only an annex to Commerz III. It's a part of Commerz. Again, to answer, the demand is back. We have now a focused team that is going to look after all our commercial development. Yeah. Yeah. Thank you. The last, small question, can I squeeze in? Yeah, yeah. Please. Yeah. Yeah. On Tardeo, are we waiting to expand the project by redeveloping the nearby buildings or something like that? Because I was initially also skeptical that you would do that as you- Yeah, yeah, yeah. You know what? Why not? Yes. Yes. Yes. We'll do that. Okay. Thank you so much and all the best. Thanks, Manish. Thank you, Manish. Bye. Thank you. Ladies and gentlemen, we'll be taking the last question. That is on the line of Parikshit from HDFC Securities. Please go ahead. Hi, Vikas. Congratulations on a very strong year. Can I ask a question on the redevelopment projects? You had said that you will set up a separate team, and every year you look to add some seven, eight projects, which would give you INR 1,000 crore. Plus, you have a non-MMR CEO appointment. Where are we there? And have you seen any specific proposals? You know, again, let me first tell you, there was separate business head for commercial. We have a separate CEO for our mall business. You know, these are businesses that are within our hand. We have a separate BD head for redevelopment. Again, I don't know whether you were a party to that. We as a company don't want to, you know, like, talk about projects which are not only not signed. I mean, of course, some of these projects are signed, but until they reach a stage where development takes place. You'll be happy that a very large, I mean, rather a few very large redevelopment projects are signed, but not at a stage where I want to introduce them to the world and say that, "Oh, these are things that we're doing." Let them happen, then we will announce. As far as the external, non-MMR region, we like I said that we again have an MoU signed. We're close to closing a large land deal. But again, until they happen, we wouldn't want to make them a part of our, you know, commitment and list. But the same, you know, vigor and velocity we're looking at all this. Just to kind of tell you that. Just cumulatively put together both the possibilities would be like, if you can quantify in terms of GDV, how much is the possibility. You know, frankly, much more than what I told you. Like I said, you know, I don't wanna set expectations. Okay. I would rather just do it. They are much larger than what we committed. These would be like in NCR or, if you can specify, NCR or in southern Mumbai, so. You know, let them, let it happen. I'll surely come back to you. You know, I mean, like I said, that we are conservative. I'd rather be that than, you know, lead the market into believing something. I'd rather have it in hand and then talk about it. Okay. Because the last thing, Vikas, we said that you are really looking at office space. I mean, office and retail space over in the Mumbai market. Plus you have some land in Borivali, which again had a fresh plan for this commercial office. When these office or retail, if at all you thought will be limited to MMR or you look at going into other markets like southern markets or the NCR market as well. Are all opportunities being looked at or it's just like if at all you revise this, it'll be restricted largely to MMR. You know, again, we have now a specific team looking at commercial opportunity. The mandate is very clear that you know, ensure leasing of Commerz III, management of the assets, making sure that the rentals are taken care of, customers are serviced. As you rightly predicted, there'll be business development. We are very, very happy to look at land parcels elsewhere. My team is looking at Bangalore, they're looking at NCR. Again, I mean, you know, please don't ask us in the next quarter what happened to that, because this is like literally exploratory and you know, we are open to doing that. We want both commercial and malls to be a strong vertical of ORL, and then we will do it. You know, as a company, when we are growing, we are making sure that these verticals are in good hands, and they have, you know, their own legs to travel through the distance it has the ability to. This is there. We have a project in Mulund also where we will be doing offices. We've got Borivali. These are two projects which are within our hand. We might do Thane again a commercial this thing. There is a lot of opportunity. Again, like I said, that we will speak about them when they reach the right stage. Sure, Vikas. Thank you. All the best. Thank you for my question. Thank you. Thank you. Thank you so much. Thank you. Ladies and gentlemen, that is the last question. I now hand the conference over to the management for their closing comments. Thank you all for taking time for this call. We take your feedback very seriously, and we would encourage you to continue to give your input. Our teams are always available to interact and speak with you. If you have any further feedback to share or any questions, feel free to connect with us offline as well. Thank you once again, and have a great day. Thank you, everybody. Thank you. Ladies and gentlemen, on behalf of Oberoi Realty, that concludes this conference call. We thank you for joining us, and you may now disconnect your lines. Thank you.