Ladies and gentlemen, good day and welcome to Oberoi Realty Q4 FY23 earnings conference call. We have Mr. 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 60 minutes. For the duration of this conference call, all participant lines will be in the listen only mode. This conference call is being recorded. A transcript of the same will be put up on the website of the company. After the management 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 0 on your touchtone telephone. Before I hand the conference over to management, I would like to remind you that certain statements made during the course of this call will largely be based on the historical information or facts and will be forward-looking statements, including those relating to general business statements, plans, strategy of the company, the future financial condition and growth prospects. The forward-looking statements are based on the executions and projections and involve a number of risks and uncertainties and risk 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. Oberoi, the Chairman and Managing Director of the company. Thank you. Over to you, sir. Thank you. Good morning, good afternoon, good evening, to all of you as per the time zones from which you have logged in. Welcome to the conference call of third quarter financial year 2023 results and business updates. Thank you all for taking time out for this call. I am very excited to inform you that we have delivered our best annual profitability figures, which are indicative of our margins, efficiency and execution ability. Demand for housing has been continuously growing, driven by aspirations of continued homeownership by end users. The retail segment is experiencing phenomenal performance in growth across consumption. Before I begin, I would like to share with you a few quick business updates. We have achieved the highest ever consolidated profit after tax of INR 1,904 crores for this financial year 2023. We have also achieved the highest ever gross booking value of over INR 5,900 crores for this financial year 2023. With this, I will now open the floor for question and answer and both Saumil and I will be happy to take your questions. Thank you. Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question, press star and one on your 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 questions queue are sampled. The first question is from the line of Murtuza Arsiwalla from Kotak Securities. Please go ahead. Yeah. Hi, Saumil and Vikas. Just want to clarify, you know, the cash flow of the third quarter and full year. We understand large part of that is to do with Three Sixty West. Could you just give us a sense of, you know, how much was the outflow for inventory, the inflow against investment in Oasis Realty, and more importantly, because we see a sharp spike on the receivables. What is that, whether that is also related to this transaction, and if so, when should that receivable sort of monetize itself? hi, Murtuza. Saumil here. Two things. As far as, you know, the receivables are concerned, the receivables primarily, I mean, if I look at debtors, that's what you're talking about, right? Yeah, sure. In a consolidated financial statement, you know, if you look at our notes to the results also we have said that, you know, we have eliminated the profit of the transaction that we have done with Oasis. Typically you tend to ignore any of the related party transactions. The debtors that you see over there are pure third-party debtors. These are basically from, you know, the projects in Mulund, Sky City and Goregaon. The thing that also happens is for whatever you have sold in that 1 quarter, you know, you typically end up giving customers anywhere between 60 to 90 days to come up to speed with, you know, whatever you have to pay. That all ends up reflecting as debtors. Yes, they are relatively higher because also of the fact that Mulund had hit 100% revenue recognition and we are in the process of handing off, you know, handing over possession. As and when we go over there, we'll also keep saying this, the receivables will go down. We are quite confident that, you know, in the next quarter or two, you will see, you know, receivables come back to, you know, very normal levels. That was the one bit. The second bit was about Worli, right? Yeah. Worli, the transaction is, you know, very simple. On my balance sheet earlier, you had seen that amount getting reflected as investment in Oasis. Okay? Oasis was not a subsidiary, so it was not a full consolidation. It was only an equity method for consolidation. You only saw one line item, which was in investment in Oasis. As far as the PNL was concerned, you only saw one line item, which was, you know. Sure. our share of profit in joint ventures. Consequence of this transaction, what has happened is, the investment in Oasis has got reflected as investment in, you know, inventory as far as ORL is concerned. That inventory was, you know, that whole transaction, so whatever amount which, you know, we had to pay as a consideration, obviously that consideration was about close to INR 3,300 crores as, you know, we mentioned to you. That was way higher than, you know, the amount that we had put in. That differential was funded, you know, through a bank borrowing. That is why you are seeing the differential amount of borrowings or rather than the net debt in this quarter has increased. Essentially, you know, that debt has, some part of debt has funded this. The rest of it is, you know, my investment has got replaced by, you know, what you can say, by the inventory in Six Senses. The investment would be of the order of what, INR 2,000 crores? Yes. Prior to the transaction. Prior to the transaction. Yes. Fair enough. if I could just, put in one more, just, Thane, sir, for the original land parcel, if you could give me a number of what the revised potential of the land looks like. You know, very valid question. In fact, this is one thing that we had been holding our entire development for. We have also acquired Blue Star, as you would have known. Yeah. Collectively put together, we are looking at close to 15 million square feet of development there. It is, it's now, you know, at full potential, probably, you know, as big or bigger than Gulmohar. Okay. This is all 100% economic interest, okay. 100% economic interest. The other one is another, you know, give or take, probably 2.5 million sq ft. Okay. Okay. Thank you so much, sir. It's 77% interest. Okay. Thank you. The next question is from the line of Parvez Qazi from Nuvama Group. Please go ahead. Hi. Thank you. Hi. Hi. The first question is on this. When can we see the two launches in Thane? The second question would be, when would the appointments and launch in Gulmohar? Pre-launch, we are expecting to now, due to the, you know, we have rains, we don't want to do that. You'll be happy to know that we started work at one site and at both sites our experience centers and show apartments are ready. Technically if one wants to trigger, one can start booking at one site probably as we speak. The other one we are probably two months away. We had to, you know, resubmit our plans, get them approved, incorporate the CTIR and all that. We are probably gonna do it in the next few months. Certainly, you know, in the next quarter or so or maybe a quarter after that. That's the most we can. Okay. Gulmohar? I mean, that is work in progress. Even, you know, like once we sign the definitive agreement, we will immediately start work on it. Sure. My last question is on the asset. Sorry. Just get your views on the Borivali Mall and the Commerz III. Sorry, I didn't hear your previous question. You were breaking. I just wanted to get your views on the Borivali Mall and the Commerz III, commercial avenue. Commerz III is being delivered in March 2024. We are pretty much plucking the last few slabs. If you happen to pass by, you will see it's a beautiful 16-story building. We are absolutely on schedule there. Borivali Mall also we look at starting in 2024. Early 2024. Early to mid 2024 is when we intend to launch our mall as well. Thanks for that and all the best for it. Thank you. Thank you. We have the next question from the line of Ashwani Agarwalla from Edelweiss Mutual Fund. Please go ahead. Hi, Ashwani. Hi, Mr. Vikas. Am I audible? Yes, very well. Okay. Thank you. If you see, we had planned to launch the Fortune property in the third quarter of last year, and that has been postponed to the first quarter of this year and even with open loans. Apart from the environmental problems, were there any other causes which causes the delay? Were our plans little more aggressive? Not really. In fact, there weren't any environment problems also. They are all routine approvals that one needs to take. We obviously have decided to completely move into the new DCR. We had to take approvals again, which we have already taken. Like I said, you know, both our experience centers are ready. We will then, you know, we wanted to be right on the product mix, the product design. All of that is now done. We have a hard-Clearer and definite timeline, like I said, that it will probably happen in the next quarter or the quarter after that, not later than that. We are fully primed and aligned now. In terms of pre-sales going this year, how much pre-sales are we expecting this year and how much of business development we can expect? You know, we don't give forward-looking statement, you know that. If you've seen, like, you know, past years and all, we've always done better than what we did in the past. We would always thrive and try to do better than what we've done. You were also planning to go into other geographies, especially NCR. Any updates are there? No. Again, like, I mean, you know, it's a work in progress. You know, hopefully it can, you know, culminate into something, you know, that we can come back to you with. We will surely make sure that you guys know well in advance. I mean, as it happens. Okay. Thanks a lot. Thank you. Thank you. The next question is from the line of Dhruvesh Anil Sanghvi from Prospero Tree. Please go ahead. Yeah. Hi. Congratulations on excellent numbers. Thank you. Yeah. Just to understand in terms of, you know, pre-COVID when a couple of delays did happen and we heard some demonstrations by some users in Gurgaon and certain other areas. Does it affect our pre-sales in the near term or on the long term? This is an opportunity learning also in terms of managing this entire ecosystem better so that this doesn't even come as a small checklist point at all. No. You know, frankly, COVID was a bit of a disruptor. Obviously, like, you know, third-party contracts that we had given, some of them obviously couldn't survive the, you know, onslaught of COVID. We, you know, we as a developer work with third party. We give civil contracts to one person. We give plumbing, electrical, mechanical, utilities, all other items to different contractors. We obviously had some challenges there, but we were able to finish, you know, a large part of the building, and that's why we got part Occupation Certificate up to a particular level. You know, we were just about able to manage those timelines and, yeah. I mean, you know, like, going forward, we now are tightening our entire execution process and going to only a company and we as a company are even afford to give, you know, more money to our contractor. Yeah, that's about it. There is enough learning and we will make sure that we improve on this going forward. Great. One more topic. In terms of understanding you want, you know, these albums. Directionally now I think we have 5 sites or 5 catchments of Mumbai we have captured. Is it fair to say that, okay, if we really want to scale for a long haul, do we have to reach to a target of 10 micro markets in Mumbai? Is that directionally or correctly to do things and plan, I mean, is our teaching right? Sorry. Do we have what? I didn't hear that word. I'm saying we are in 5 micro markets in Mumbai right now. We, if we have to really scale much bigger than what we are currently, do we eventually have to think like having 8, 10 micro markets at a point in time running in Mumbai within the next 4-5 years? Is that directionally a correct path? No, Dhruvesh, your thought is absolutely correct. If one has to grow, you'll have to tap more micro markets. We are constantly looking at land parcels at different locations. In fact, we are always more aggressive where we do not have a presence. Like, we've let go of a few land parcels in Thane because we already have a good presence in Thane. I could probably have bought two more land parcels, but we let them go by because we already have presence there, you know. One doesn't need to go there. If there's a suburb where I'm not present, I would love to get a little more aggressive there and pick land parcels. Your, you know, your reading of that strategy is absolutely right. Thank you. I'll just squeeze in one last quick here. Is there any update on the Centaur Hotel case which was going on? If you can, whatever is possible to share there. Not really. You know, the matter is sub judice, so we don't have much to say anything on that account. Okay, fine. Thanks. The next question is from the line of Neel Mehta from Investor Camp. Please go ahead. Yeah. Hi, Vikas Hi. Hi. Nice to talk to you again. Congrats on a great quarter. I just had one question on the math three inventory number 66 here. We had 15.6 lakh sq ft add-on Q2 2023, and we disclosed around 5.28 lakh sq ft add-on Q4. How exactly do we reconcile this 10 lakh sq ft reduction in inventory? It is, you know, I mean, the first thing which I want to begin with is that as far as, you know, our entire current quarter's presentation is concerned, all the numbers that you see, all the areas that you see are now, you know, carpet areas. All the presentations that we used to do prior to this, were, you know, based on an overall saleable area or what people called our saleable area. However, this year is, this quarter if you see, and that's reflected in all of our slides also where we have said that, you know, we have reworked it. So the area of inventory that you're talking about, as far as Worli was concerned of 15 lakh cost square feet, that was on a saleable basis. That was not the RERA carpet area. What we have done is. That's why I said, you know, everything is now reconciled to RERA carpet, so it becomes easy for us to track these, you know, what you can say, our agreements and everything. That was, you know, only this. Once we do that and everything gets reconciled to RERA, then that difference will be not, you know, that 10 lakh square feet. Essentially, you know, even when we were doing this transaction earlier, we have explained that, you know, post this transaction, I mean, along with the transaction which we did, the part, you know, there were also a whole bunch of sales in Oasis, you know, to other party. The cash flow from that went to, you know, the JV partner. After we have exited, you know, from the JV, the partner has, you know, limited inventory which is less as far as, you know, Oasis is concerned. We are the ones who are sitting with the majority of the inventory as far as Three Sixty West is concerned. In terms of units, would that be around 60 odd units? Saurabh, would that be a correct assumption? Yes. We have about 63 or 64 units. Okay. On a saleable basis, would you have the RERA criteria for Three Four or Three Two or Three Zero, Goregaon. We are not ready, but I can check that and come back. Sure. I'll connect with your friend then. Thank you. Perfect. Thank you so much Thank you. The next question is from the line of Samir from Morgan Stanley. Please go ahead. Hi, Samir. Yeah. Hi. Hi,. Good evening, everyone. Quickly, has there been types of pricing action in Mulund and Goregaon? Because I can see that your ACUs have moved up quite substantially, 10%-15% quarter-on-quarter. You know, you know, Goregaon, we did increase our prices. Mulund also, like, you know, the effect that you see is probably net of GST and gross of GST. That is one part. Plus, in Mulund now we are selling higher floors, so that also gives us a higher realization. Yeah. Okay. In Goregaon you have taken pricing but in Mulund it's not. Correct. Correct. Mulund also, I mean, you know, like. Marginally. marginally increased. Like I said that, you know, it now drops up with the GST after OC. I see. Yeah. Okay. Got it. Yeah. Right. Yeah. Just looking at the unsold but completed inventory both in Mulund and Three Sixty West, fairly substantial. How long do you see the sell down going forward? Any timelines that you want to share with us? Samir, you know that actually has, you know, in the past turned out to be our strength. We were basis the ready inventory able to buy Thane when we had that in Esquire. We actually feel that this is literally like, you know, potential for us, and this is literally cash sitting on the, you know, in the form of ready inventory. Both these cities are now complete. If you see the run rate at Mulund also has gone up. It's now pretty much in comparison with how Borivali was selling. I think, in our own mind, in the next 2 years or 3 years we'll be done with the inventory. Okay. That's great. This is a realistic, you know, timeline. We could get a little more aggressive also, but I feel that this is something we can easily achieve. Okay. That sounds great. Just finally, you know, we had talked about the two rental assets, Borivali Mall and Commerz. If I do some ballpark type of download calculations, do you think it could be INR 500 crore of a rental from Commerz and INR 350-400 from Borivali Mall on, you know, a high, you know, 90% utilization? Is that something off you can share that? Do you think these numbers are realistic? Samir, your ballpark is, you know, very close to our real numbers. Yeah. We are in those, we are in that zone. Awesome. Okay, great. Thank you. Thanks. Thank you. The next question is from the line of Priyesh Shah from Motilal Oswal Financial Services. Go ahead. Hi. Thanks for the opportunity. First a clarification on earlier answer on Thane development potential. You said 15 million square feet in Pokhran Road and two and a half million square feet in Kolshet. That is on carpet area basis or it is saleable area? If you are transitioning to carpet for future calculations. you know, this will pretty much be carpet area. Okay. This will pretty much be carpet area. Okay. Okay. Okay, great. Any update on Worli land, if you can provide, any decision there? No decisions as yet. Any timeline do you want to syndicate on 12% and you've done that? Are you waiting for We are waiting for certain policy decisions. Once we have that, we can take a firm call. Based on that, we'll probably be able to tell you know, what sort of timeline we are looking at. Sure. That's helpful. That answered my question. Thank you. you. All the best. Thank you. Thank you. Thank you. The next question is from the line of Kunal Lakhan from CLSA. Please go ahead. Hi, Kunal. Hi, Vikas. Adjusted for the one-time action, how much would be the operating cash flow if you exclude the one-time action this quarter? It will be kind of, you know, if you take out the INR 3,300, if you add the INR 3,300 crores, it is negative INR 2,200 odd crores. It will be about positive INR 1,000 odd crores. Yeah, that's what I was coming, because the collection seems to be better this quarter considering over the last quarter. Yeah. We had, you know, after that OC in Mulund, you know, in the December quarter, the operating cash flows took a hit because we had a profit recognition, but we were not collecting, you know. That got turned around in this quarter because the collections came in, but the profit had already been recognized in the earlier quarter. Yeah. Correct. About INR 700 odd crores of operating cash flow. Yes. Roughly. Okay. Great. Secondly, I'm sorry, I missed out on what you said earlier. On Kolshet, you said the launch would be in Q2 or Q3. Correct. Both of them we would probably launch, you know, within 1 quarter of each other. That's how we are getting ready with. Got it. On Kolshet, you had applied for approval. You moved to UDCPR and you applied for approvals and you're awaiting that. Both the projects we applied under UDCPR. Both the projects we have already got approval under UDCPR. We just didn't want to go into the old rules because, you know, like, we believe that it's not a great idea. We'd rather be in the new regime and the new rule. It's easier for everyone, you know. Also like now with the new approvals or, you know, approvals under the UDCPR, you know, you've got now. Can you give some color on what is this, what is development you're planning, especially on the Pokhran Road with the whole, you know, 15 million sq ft of We are doing residential. We are, you know, we are doing a five-star hotel because we want to brand the entire development. We are also doing an international school there. We have seen that Goregaon has been a big draw because of the international school we have, you know. Today it's, you know, it's where people want to stay because, you know, education is prime and with the kind of development we are doing in Thane, I think an international school is, you know, it will be last, the big differentiator with other developments. We are gonna be starting hotel, school, you know, residential, all together. You know, the first phase will comprise of all these. We will pretty much be attaching almost, you know, anywhere between INR 3 million and INR 4 million ready at one go. Of ready? Yeah. Ready and, the hotel and the international school. We are at design stage for these two. We'll shortly be announcing the brand also. No plans of commercial and retail there? Not for now, but, we may do a small, retail which probably will be more, a neighborhood, retail. It could be anywhere between INR 1 lakh and INR 2 lakh sq ft. We will be doing a very high-end club, there also, a sports club, in line with what we've done in Borivali. We really want to change the spectrum of what we are producing here. We're very excited. We've hired some of the top, resources available in the world and, yeah, the design is really looking very good. Great. Thanks, Vikas. Thank you. Thank you. Ladies and gentlemen, we will take that as the last question for today. I now hand the conference over to Mr. Oberoi for closing comments. Over to you, sir. Thank you all for taking time out for this call. We look forward to hearing from you on an ongoing basis. Please feel free to reach out to us, you know, or our investor teams, and when you have any new questions. Thank you once again. Thank you, everybody. Thank you. On behalf of Oberoi Realty, that concludes this conference call. Thank you for joining us, and you may now disconnect your line.