Ladies and gentlemen, good day, and welcome to the Oberoi Realty Q3 FY24 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 30 minutes, and for the duration of this conference call, all participant lines will be in the listen-only mode, and this conference call is being recorded, and the transcript for 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 you need any assistance during the conference call, you may signal the operator by pressing star then zero on a 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 relating 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 call over to Mr. Oberoi, the Chairman and Managing Director of the company. Thank you, and over to you, sir. Thank you, Ziko. Good morning, good afternoon, good evening to all of you as per the time zones which you have logged in, and welcome to the conference call of third quarter FY 2024 results and business updates. Firstly, thank you all for taking time out to attend this call. I really appreciate that. Before I begin, I would like to share some of the quick business updates. You all are aware that we have acquired 14.8 acres of land from IREO Residences in Gurugram. We have also concluded a land parcel in Thane. This used to belong to NRB. With this, now our total land in Pokhran is close to 80 acres. We have also launched Forestville, our first residential project in Kolshet, and we have received good response for that. You'll also be happy to know that we have received occupation certificate for our Sky City tower A to E, and possessions have commenced. Again, a very good response from people who have taken possession. We also launched tower C at Oberoi Garden City, Elysian project, and even that has received tremendous response. With this, now I'll open the floor for questions and answers, and both Saumil and I will be more than happy to answer your questions. Thank you. Can we have the questions going, Ziko? Mr. Pritesh Sheth, your line has been unmuted. Please go ahead with your question. Yeah, thanks for the opportunity. First question is on, you know, the Kolshet Road launch, Forestville. You know, how would you consider this response, you know, I mean, in terms of other project launches that we have seen in past, we have obviously received little better response. So, you know, how would you consider this, and what were in general pushbacks, in case if any, in terms of, you know, pricing or, your payment plans, et cetera, that you have got in that project? So first question on that. Okay. Hi, Pritesh, Vikas here. See, frankly, we were very excited with getting INR 200 crore of sales in the first shot itself. This, you have to understand, is a new market for us, and it's a price-sensitive market, number one. Number two, you know, we didn't do anything different that we do in the western suburbs. We wanted to be very sure that people who come in and buy are actual buyers, people serious with the kind of money. You know that we've started the project, L&T is our contractor there, and given where we are, you know, more than 40% of the payment is due. So, a little over INR 200 crore sold, and this sort of money coming in the kitty, it already makes our project cash flow positive, you know? That's how we like to set all our projects up. I feel that it's only, you know, that market negotiates. That market has, you know, cash element and all that in it. We obviously don't do all that. We come out, you know, with our own sales strategy. So whatever we have, we have solid customers, these are real customers, and, we are frankly very happy with the way, we have, come about it. It would have been very easy to lower your guard, you know, make some very, you know, fancy payment terms and all that, and then realize that these are really not your customers, you know, are only speculating in the market. So which we've never done. So I think, all in all, we are reasonably happy or very happy rather, in the way we got our response. It's only growing, by the way. Let me also tell you that what little we learned about the Thane market, that a customer takes multiple visits before he, you know, decides to buy. As a product, what we are building is something not seen in Thane. I'm very confident that going forward, it will only be better. Sure. Got it. No, that's helpful. And, you know, congrats on entering Gurugram with this big project. So what would be your strategy going ahead, since we have, you know, one project probably which would be like, maybe, nine months or 12 months away from launches? But currently, if you see that market, you know, whatever is launched, you know, gets sold off very quickly. So definitely you would have your plans in terms of how we can further deepen our presence there. So anything you will look, you know, again, in near term beyond this one project, or for now, your focus would be on launching in this and then looking at new projects? So how should be the strategy? No, absolutely correct. You know, we, we want to be in the business for the next 100 years. So for us, any strategy has to be a long-term strategy. We are not going to, you know, just go out there and pick multiple projects. We want to make sure that we, you know, do a proper launch. We are not in any hurry. We don't want to run behind just, aggregating land. You know, I really want to tell you, execution is a huge challenge. I don't know how many of us will eventually end up delivering. We, as a company, want to be sure that whatever we take, we deliver. You know, we genuinely have a huge shortage of good contractors, you know, and, and the last mile in our business is not really ready. You know, we as a company are committed to quality. So we want to be very, very careful if we are going to a new market. We want to make sure that whatever we commit, we deliver, and only then we'll think of growth. For us, it's all about, you know, quality and delivery before, you know, any sort of speculation in growing and running around and all. Sure, sure. Got it. That's, that's helpful. Those are the two questions for now I had. I'll just join back the queue in case it's not asked by any other participant. Thank you. Thank you. Thank you. All the best. Our next question is from the line of Saurabh Kumar from JP Morgan. Please go ahead. Hi. So, just three questions. One is, you know, what will be the investment this quarter, Saurabh, and basically both the Thane and the Gurgaon parcel? I just want to get your cash flow. It seems that your debt has gone down by INR 190 crores. So how much was the land acquisition spend? Saurabh, two things. Firstly, as far as Thane is concerned, it's a revenue share arrangement with the landlord, so there was no investment in the-- But not deposit also? Correct. No, there was a very small deposit, which was given, very frankly, Saurabh. But, so right now, you know, we are recouping the deposit, so there is no cash outflow as far as that bit is concerned. But essentially, the entire land payment will automatically get taken care of over the course of the project, you know, from the revenue realizations from customers. So, that is how it would work as far as what we could say Thane is concerned. The second one you said was about? In Gurugram, how much did you pay this quarter? In Gurugram, we would have paid close to about INR 100 crore this quarter. The balance is payable based on certain milestones as far as the agreement is concerned, so that should get paid out over the course of the next year or so. Okay, so sale of land, you made about INR 290-odd crore like, I mean, INR 190 crore debt reduction and INR 100 crore for Gurgaon. Yeah. Okay. Okay, secondly, just on this Worli, the 360 West, you know, you, you have 500,000 sq ft, which, I mean, at your sales rate works out, works out to about INR 7,000 crore of inventory. But the velocity has been all over the place. So, I mean, how do you think about what's a realistic monetization timeline of this asset? So, Saurabh, you know, we obviously had a partner who was also in need of money. Yeah. Now, I can safely say that 100% of his stock is sold, you know? Okay. Or at least 99% of his stock is sold. And, if you really consider velocity, you have to consider that he also sold his inventory. So, if you really see, there has been tremendous demand. Of course, he, unfortunately, had to sell it a lot cheaper than what the market would have or could have absorbed that. Having seen that his, inventory is over, we see a much better and a brighter future for us in monetizing, you know, our own asset. We have no pressure, so obviously the question of dropping the prices doesn't come. We are also... And, you know, this also helps us, you know, sieve and filter the right kind of people who should be coming in that building. That's about it. There's really no other strategy. It's very simple, and we are following that, you know? Yeah, I know. My question was essentially, the INR 7,000 crore is literally cash for you. I mean, INR crores that you can get to cash, so I just want to know the timeframe. You know, I mean, I'd be excited if it is done within the next 12 months. I mean, you know, I hope this gets done really fast, but if one were to see, you know, it could be anywhere between 18 months and 2 years at best. Okay. Yeah. Okay, good. Yeah. One last question. This, for your three co- or commercial assets, you know, you have the mall, the hotel, and the new office tower. What should we expect as the annuity run rate when this, when all these three stabilize? I'm guessing this will take another 18 months to fully stabilize. Where should the annuity go to? So, including the current annuity or excluding that? So, you know, if I keep all the others out? Yeah. So between the three, how much will these three add? So the Commerz III should give us anywhere between INR 600-INR 700 crores. The mall will give us another INR 300-INR 350. And which is the third one? The hotel, you're saying, is it? Yeah. Should give you another INR 100 crore, I guess, you know. So I would say INR 450 crore and INR 700 crore, about INR 1,250 crore or so. 1,250, okay. So your total annuity plus the INR 600-odd crores should- It'll add to that.Y eah. Okay, so the total number should go to well above INR 1,700-1,800 crores then? Yeah, correct. Thank you. Okay. We are seeing excellent traction for our Commerz III also. I mean, you know, you will keep hearing now every quarter that deals are getting closed. We are delivering our project on time. We are done this March. We are done in, you know, April onwards, our end begins. Okay, good. Thank you. Thanks a lot. Thanks a lot. Thank you. Thank you. Our next question is from the line of Karan Khanna from Ambit Capital. Please go ahead with your question. Yeah, hi. Thanks for the opportunity. Just firstly, on the much-anticipated Pokhran Road launch, which is due for next few months, how does the success or relatively muted response of Kolshet Road impact the pricing and launch strategy for Pokhran Road project? also, any timelines that you would like to share for complete sale of the Forestville inventory? So, I think, Forestville should take, should give us anywhere between, give or take, INR 500 crore-INR 800 crore, annually. Again, you know, we've understood the market much better. We obviously have a strategy around Kolshet. The good part is, Kolshet, is a different location altogether. It's like comparing two suburbs of Thane. This is obviously way upmarket, and, we'll, we've planned it accordingly, we'll sell it accordingly, and it'll come at a much higher price. What people don't, see is that Forestville has actually ended up repricing the entire market. If you see the secondary sale in Thane, which was happening at much higher price in Hiranandani Gardens, now all that has got rationalized because people are You know, we can see the undercurrent. People are already talking about that, you know, "I'd rather buy in Forestville." We are a tall building. We are away from possession. Those are the few things that are holding people back, but interest is tremendous. Product has been received very well, so really no issue on that account. And these are reasonably large apartments, you know, they're not small by any standard. So that part, done. As far as Kolshet is concerned, we originally were thinking of launching in this quarter, but I feel, given the pipeline that we have, we now want to take it to the festive seasons of next year. It'll be more like September of next year. And, yeah, so, that's how we are really looking at it. Again, like all our projects, we will be starting work first. We are ready with our experience center also. In this case, also, we will be starting to show people the experience center much before we launch the project. Because, again, you know, one other thing I want to tell you, Forestville also, we started showing the apartment to people even before our launch, and that is something very new that our industry has done. We will follow similar practice in all our projects now. So we want to create further transparency in what we are building and how it's going to look for the customer. This helps us with almost, you know, fewer or almost no cancellations. Sure. Just a clarification, by Kolshet, you mean the Pokhran Road launch, which you have now delayed to September of this year? Correct, correct. Pokhran is, when, you know, we'll launch it in September of this year. Sure. So any particular reason? Because I think, it's been almost four years, roughly. No, no reason. Like I said, we'll start work right away, as we speak, but we will push the launch. We'll have done some work progress, and we'll do that. And anyway, it doesn't really matter, you know. Like, starting the work is more important, because you, when you sell, you can anyway catch up to the revenue and all that, like. Sure. Secondly, if I look at the AISpace for Eternia, Enigma and Sky City, these have largely remained flat over last two or three quarters. So is it safe to assume, if I look at the average selling price for Eternia, Enigma and, Sky City, this will largely remain flat over last two or three quarters. So is it safe to assume we are now at the fag end of the pricing cycle? And if so, how should one think about future margins, especially, considering potential rise in input costs? You know, in fact, I don't know what you're reading. We have actually increased prices everywhere. We've increased prices in Goregaon. I increased them by 20%. Tower C is launched at 20% higher than the previous pricing. There is nothing available in Tower A and B. In fact, it's selling at a premium, even though it's secondary sale. And we actually had a queue of people waiting to buy, you know, INR 12-15 crore apartment. So that's one. Sky City, possessions are given. We've done more than 200 apartments have been handed over, and there's fantastic response. There's no reason but for the project itself to get appreciated. I don't know how much you know, but resales are selling at anywhere between 15%-20% over what we are selling on the counter. Of course, our project, our apartments are under construction. We hardly have anything in the ready building, but the ready building is selling at 15% and 20% higher than what we are selling at. So there is still lot of headroom for price increase. Sure. Thanks, that's helpful. And lastly, any change to your timeline regarding delivery of the Ritz-Carlton Hotel? Is it on track for completion by end of this year? And as a follow-up, at a time where the industry is reporting over 20%, ARR and RevPAR growth, any reason why Westin Garden City ARR didn't witness similar growth, despite being some of the very few quality hotels in the micro market? Sorry. In fact, Westin has grown 20% over our previous ARRs. I don't know what you are reading, number one. Okay. Number two, absolutely, Ritz-Carlton is on track. This year end is what we are really aiming at, and, yeah, absolutely good. Good to go. Sure. I'll take it offline. Thank you. Thank you. Our next question is from the line of Pulkit Patni from Goldman Sachs. Please go ahead. Yeah. Hi, thanks for taking my question. Actually, my question was also on Thane. If you could just highlight what would be, that you've moved the timelines now to September. If you could just highlight what will be the phase launch for this project. So are you gonna get started with resi project initially, and then you move to you know other areas? Or if you could talk about it, given we are talking about an 80-acre land parcel, how should we phase this out in a model now, given that Forestville itself is taking a little longer? So we'll start 5 towers to start with. That will be one contract. This is a separate land parcel within the 80 acres, and that literally completes the entire development of that parcel. And we are looking at probably close to maybe 3.5-4 million sq ft of sales there. And we'll be starting the hotel, we'll be starting the development for the school. So obviously, these two is... What we are building is a 5-star hotel, you know, obviously to brand the entire development, and we are starting an international school there. And yeah, so these are the three developments that will start instantly. And again, like I said, that we have only deferred our plans to sell, but our work starts immediately. Like I said, that, you know, whatever revenues that need to be recognized in this coming financial year, or rather this year itself, all that will happen instantly. Sure. Because my second question is on pricing in that, in that micro market. I mean, 5 years back, developers were struggling, selling at INR 10,000-INR 12,000, and then we had in the last sort of 24 months with Raymond, and now you launching in the INR 18,000-INR 20,000 range. Do you think, at least in the near term, that there is scope for pricing to go up more in that micro market, given that we've already seen a pretty big uptick, say, over the last 2.5-3 years? Very relevant question. Firstly, I wanna tell you, look, we are, there is a quality deficiency in Thane. People are not building or, you know, making that kind of quality. I think we are the first developer in Thane who's got L&T as a contractor. So that's point number one. What we have proposed as a product is probably the best in Thane. You know, if you see some of the competitive internal Thane markets, we see Hiranandani or, you know, that area, they are at INR 25,000-INR 26,000. So like I said that, you know, today when people see our product, they feel that it's worth getting in here, than, you know, paying that kind of money. People who are smart are probably seeing the arbitrage and are willing to take Forestville. Because, see, Forestville is very close to Hiranandani Gardens, in fact, much closer to the Thane city. And now, given all the rest of the development around it, it's become a nice ecosystem, you know? So... And with the, you know, good infrastructure in place, I don't see any problem. And I agree with you that there is enough headroom for price increase. Sure. Okay, that's useful. Thank you. Thanks. Thank you. Our next question is from the line of Akshay Malhotra from HSBC. Please go ahead. Hi. Thanks for the opportunity. Just had a quick question about the Gurugram project. Just wanted to ask, will we need to alter the revenue recognition policy for this project? I'm asking in terms of the current percentage completion method that is being used for the other projects to the project completion method for this market. That's all. Hi, Akshay, it's Anil here. So, you know, the decision of what to or what method to use is under the accounting standards driven by your conditions in the contract. There are some technical aspects to it, but for various reasons, you know, as far as Maharashtra is concerned, we satisfy all those contracts, or at least as far as Mumbai is concerned, and the way we have, you know, done our agreements with the customers. We end up satisfying the conditions laid out in, you know, Ind AS 115 for revenue recognition, and following the percentage completion method. So, you know, we are able to do that. As far as Gurgaon is concerned, I do know of some developers who are looking at following the project completion method, and I do know of some developers who are looking at also following the percentage completion method. Once we actually get onto the ground over there, finalize the agreements and, you know, work out the clauses, then, depending on that, we will finalize the accounting policy at that point of time. But yes, this optionality of, you know, whether it has to be the project completion method or the percentage completion method, is completely driven by your clauses of the agreement. Okay, thanks a lot. Thank you. Our next question is from the line of Dhruvesh Sanghvi from Prospero Tree. Please go ahead. Yeah, hi. Just wanted to understand what happens after 4, 5 years, because now we are at the fag end of the exhaustion in Borivali and Gurugram, and such amazing name has been created in those two areas. Are there enough decent sized land parcels available in those areas or surrounding, where we'll get to participate for another 10, 15 years in the same vicinity? Durvesh, thank you for asking this question, and I know, I'm sure a lot of people have this in their mind. But I want to tell you that this is exactly what I used to ask my father 30 years ago, that land in Mumbai is getting exhausted, what will we get? And I remember we used to build, you know, like literally 2,000- and 4,000-sq m projects, and I would tell him that I want to build a large township where I can do, you know, landscaping this way and that way, and all that. Got land, and I promise you that, you know, we are at it, and maybe in the next financial year, you will see or you'll hear from us that some large acquisitions are done. Right now, I can only disclose this much: We are constantly looking at buying land and, you know. So, your, you know, your question is valid, but fear is unfounded, so just trust us on this. We only know this business, and we'll find a way to get large land parcels, not let go of this, you know, brand that we all have created with so much hard work. Yes, thank you. And a small follow-up to that, I mean, to have our stage two in terms of Oberoi, because let's say we are 6-8 projects at the point in time now. To really take our pre-sales and the organization to double what we are today, I mean, when I say today, in the next 2-3 years, where we will be, and doubling from there, won't we eventually require more number of sites ongoing, and therefore, the business development has to happen very soon than later now? I mean, is this way of thinking correct? I've been asking these kind of questions probably for the last 3-5 years, but I'm just trying to validate the points. Look, absolutely fair. And, you know, frankly, a lot of people don't realize that all our projects are very large projects. If you... in fact, you know, I have a problem when I hire people, and I tell them, "You look after this project," they come and tell me that I was looking at 20 buildings and 22 buildings, and now you're telling me to look at 5. But if you calculate, all the 20 buildings these people were looking at, were not more than 5 or 7 lakh sq ft put together. Whereas, like, our 5 projects are like, you know, 50 lakh sq ft, 5 towers are like 50 lakh sq ft. So because we have such concentrated development, people don't understand, you know, what we are building and how big is what we are building. And hence there is this confusion. But, having said that, you're absolutely right, we are going to receive a lot of cash, and that cash has to go into, you know, I mean, there's only as much debt we can repay, which we will repay. But other than that, all the surplus cash will go into buying new land, which we are open to, and we will. And I just initially said that, you know, as a company, we are mitigating execution challenges. It's not easy to build here. We can't let go of quality. We are systemizing, we are learning as a company. So in fact, I would say that we are absolutely ready for growth, in multiple ways, not just business development, even execution, for that matter. So, you know, all said and done, I think, things are looking great, you know? Thank you. Thanks a lot. Thank you. Ladies and gentlemen, that was the last question of our question and answer session due to time constraint. I would now like to hand the conference over to Mr. Oberoi for closing comments. Well, thank you all for taking time to, you know, attend this call. I really look forward to hearing from you on an ongoing basis. My team and I are all available for any questions that you have, you know, or any follow-on questions you have. I just want to end our call by telling you that, you know, with the clear stability in our political future, you know, looking so explicit, India is on a growth trajectory. I have just come back from Boston and met several global leaders. India is absolutely on top of their mind. If they're not in India, they don't know what they are doing, and that's the emotional feeling they have. I think, the growth trajectory going forward is, you know, very clear, and, you know, the elections are a foregone conclusion, according to me at least. You know, so I think we are in a very stable environment, and going forward, things look really amazing. This is where I want to end. Thank you all, and thank you once again. Thank you. On behalf of Oberoi Realty, that concludes this conference call. Thank you for joining us, and you may now disconnect your lines.