Ladies and gentlemen, good day and welcome to the Raymond Limited Q4 and FY25 Earnings Conference Call hosted by Antique Stock Broking Limited. 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 touch-tone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Biplab Debbarma from Antique Stock Broking. Thank you, and over to you, sir. Thank you. On behalf of Antique Stock Broking, I would like to welcome all the participants in the Q4 FY25 and FY25 Conference Call of Raymond Limited. Today, we have with us from Senior Management of Raymond, Mr. S.L. Pokharna President, Corporate Commercial, and then Mr. Amit Agarwal, Group CFO, Mr. Harmohan Sahni, Executive Director and CEO of Realty Business, Mr. Gautam Maini, MD Engineering Business, Mr. Jatin Khanna at Corporate Development, and Mr. Sunny Desa, Head Investor Relations. Without taking further time, I would like to hand over the call to Mr. Amit Agarwal. Over to you, Amit, sir. Thank you. Good evening, everyone. Thank you for joining us today for our fourth quarter of fiscal 2025 and fiscal 2025 annual results conference call. I hope everyone has had an opportunity to go through our financial results and investor presentation, which have been uploaded on the stock exchanges as well as on the company's website. Before we delve into our quarterly performance, we wish to express our heartfelt condolences to those affected by the tragic events in Pahalgam. Our thoughts are with the victims and their families during this difficult time. We stand in solidarity with the people of India and support efforts to restore peace in the region. Moving ahead, it is essential to reconsider the broader Macroeconomic Landscape that has influenced our performance and strategic decisions. In terms of the global landscape, which continues to be challenging and unpredictable, with geopolitical dynamics causing various fluctuations, recent policy changes have introduced a degree of uncertainty impacting markets worldwide. However, we believe India stands in a unique position to potentially benefit from these global economic shifts. In the short to medium term, we are witnessing a scenario where inflation is visibly under control and monetary policy is becoming increasingly supportive. The Reserve Bank of India has already reduced interest rates by 50 basis points, with further cuts anticipated throughout the year. The Indian economy is projected to have grown by approximately 6.5% in the fiscal 2025. While this is slightly lower than the growth rate in fiscal 2024, India remains one of the fastest-growing economies globally. The ongoing support from monetary policy, including interest rate reductions and regulatory changes, has enhanced liquidity in the market. The environment is expected to sustain decent economic performance over time. Additionally, the union budget for 2025-2026 has been favorable towards urban consumption and middle-class households by introducing tax cuts and the provision of INR 1 crores, which would be made available in the hands of the taxpayers. As a result, we anticipate a substantial increase in the purchasing power within the housing segment. This segment, which has experienced lower growth over the past three years compared to other parts of the housing market, is expected to become a key driver of the growth over the next 12 - 24 months, thereby offsetting any potential weakness in other areas of the housing market. Let me now give you an update on the demerger process. I am pleased to announce that we have successfully demerged our real estate business and received all necessary approvals, and we expect to be listing the real estate business in the second quarter of this fiscal year 2026. This will position Raymond Realty to pursue its growth trajectory as an independent pure-play real estate business. The scheme has become effective from the 1st of May 2025, and the record date is 14th of May 2025 for the purpose of determining the eligible shareholders of demerged company Raymond Limited, to whom the equity shares of the resulting company, Raymond Realty Limited, would be allotted in terms of the scheme. According to the scheme of arrangements, each shareholder of Raymond Limited will receive one share of Raymond Realty Limited for every share held in Raymond Limited. In the engineering business, as mentioned earlier, two new subsidiaries of Raymond Limited will be created through a scheme of arrangement, one focused on aerospace and defense and the other one on auto components and engineering consumables, each charting its own path for growth and a primary objective of the value creation. Currently, we have filed the restructuring scheme with the NCLT for the engineering business and awaiting the final approval. Now, let me talk about the quarterly performance. Before that, considering the successful demerger of the real estate business, Raymond Limited now comprises of engineering business as consolidated continuing operations. Our fourth quarter fiscal 2025 and fiscal annual 2025 results have been split in two parts: one, which is the continuing operations with engineering and others, and demerged segment, which is a real estate business. As far as our continuing operations of Raymond Limited is concerned, Raymond Limited delivered a strong quarterly performance, reporting a total income of INR 601 crores, with a delivery of an EBITDA of 99 crore with a margin of 16.4% in the fourth quarter of fiscal 2025. The total income for the year was INR 2,105 crore, and delivering an EBITDA of INR 335 crore and an EBITDA margin of 15.9% in the fiscal 2025. Kindly note that the above performance includes this other income and also is reported post the acquisition of Maini Precision completed in March 2024. At the segment level, if we talk about the engineering business, which includes the MPPL Maini Precision business, reported a sales of INR 528 crore and an EBITDA of INR 81 crore, with a margin of 15.3% in the fourth quarter of fiscal 2025 versus a sales of INR 234 crore, with an EBITDA of INR 37 crore and an EBITDA margin of 15.6% in the fourth quarter of fiscal 2024. In the engineering sector, the auto ancillary segment experienced robust growth in the domestic market. However, export markets remained subdued for auto ancillary and engineering consumable segments, primarily due to ongoing slowdown in the European automotive market and the disruptions caused by the Red Sea shipping crisis. Looking ahead, we anticipate growth momentum in the aerospace business following the resolution of the production issues faced by one of the major aircraft manufacturers, which had previously led to delays in order fulfillment. Now, let me talk about the debt and the cash position at Raymond Limited. We continue to remain a net debt-free business with a net cash surplus of INR 263 crore in March 2025. The total gross debt stands at INR 677 crore and has cash and cash equivalents of INR 940 crore as of 31st of March 2025. In terms of the operations, the aerospace business has started showing promising signs, which was earlier impacted by ongoing production issues leading to delays in dispatches. We have witnessed signs of recovery, and the business is getting back on track. Additionally, recent softness in the auto sector component sector due to weaker market may impact the growth in the near term. Looking ahead, we remain optimistic about our growth prospects. Our diversified business portfolio, strong market position, and strategic initiatives will continue to drive value for our stakeholders. Now, let me also talk about the real estate segment, which is the demerged segment, to give clarity to all of you. In the fourth quarter fiscal 2025, the company signed two additional joint development agreements, one in Mahim and another one in Wadala, aggregating to a gross development value of INR 6,800 crore. Both these projects are poised to contribute substantially to our future growth and solidify our presence as a key player in the Mumbai metropolitan region. With these additions, the total potential revenue from our current real estate business is now reaching close to INR 40,000 crore, which includes INR 25,000 crore from our Thane land parcel and INR 14,000 crore from the JDA-led business model. The construction momentum across all our launch projects, both in Thane and Bandra, is progressing well, demonstrating our commitment to timely delivery and adherence to high-quality standards. In all our projects, we are ahead of construction timelines, and a comprehensive update on the construction curve of our projects is provided in our investor day. We continue to witness a positive response and traction in our residential and high street retail projects. We have also received a booking of INR 636 crore in the real- estate business, primarily driven by the demand for the Address by GS 2.0 10X ERA sale of retail shops in Thane, as well as the JDA project of Address by GS in the Bandra project. We at Raymond Realty offer affordable luxury apartments ranging from 1 BHK - 4 BHK that caters to multiple segments of the society in a stated strategy to sell and construct fast, leading to quick project completion and faster revenue generation, and that has resulted in a revenue of INR 766 crore in the fourth quarter of fiscal 2025, vis-à-vis INR 677 crore in the fourth quarter of fiscal 2024, recording a growth of 13%. The segment reported an EBITDA of INR 194 crore in the fourth quarter of fiscal 2025 compared to INR 171 crore in the fourth quarter of fiscal 2024, which is a year-on-year growth of 13%. EBITDA margin stood at 25.3% flat in quarter four 2025, vis-à-vis quarter four fiscal 2024. We continue to remain a net debt-free business in the real estate as well, with a net cash surplus of close to INR 400 crore in March 2025. We remain optimistic about the continued growth in the real estate market. Overall, our project pipeline remains strong, with several developments slated for launch in the upcoming quarters. We are committed to future expansion through an asset-light business model via the joint development agreement route, aiming for a 20% year-on-year growth in the booking values. Thank you again for joining, and we would be more than happy to take your questions. We may open the line for questions. Operator. Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on their touch-stone telephones. 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. Participants, you are requested to press star and one to join the question queue. Okay. Participants, please press star and one to ask a question. Participants, please press star and one to ask a question. The first question is from the line of Ujjwala Lal, an individual investor. Please go ahead. Okay, sir. I wanted to ask on the realty division front, what is the generally like peak funding requirements from our side in these JDAs? And at what rate are we able to get construction funding, and how does it differ from other leading developers? Yeah. Harmohan, will you answer the first part, and second part I will answer? Yeah, yeah, sure. So sir, basically for each JDA, considering the size that we are looking at, it is upward of INR 1,500 crore-INR 2,000 crore of GDV for each project. On an average, the peak funding requirement ranges between INR 250 crore -INR 350 crore, maximum going up to INR 400 crore. Depending on project to project, it can be different, but that's the range between INR 250 crore and INR 400 crore. Amit, you want to answer the second part? Yeah, yeah. Basically, you see the interest rate, anything between 8% - 9% a quarter, and that is the rate because the company enjoys a good credit rating and has demonstrated very well. That's the reason we get at these competitive rates. Great. Thank you. Just another question. Like I think in all or most of our projects, we have contracted the contractor capacity, and do we continue to plan to do the same, or do we also have contracts with some other contractors? The way the contracting entire process moves is it's a competitive bid for each project that we float, and various contractors of different caliber quote for that. Then a negotiation takes place, two, three rounds of negotiation, and finally a contractor is decided basis that. We have capacity for some of the initial projects that we have granted, but we have used other contractors, smaller contractors also for part of the work. Going forward also, it will be a competitive bidding process. Whoever gives us the most competitive bid and also wins on the various attributes in terms of financial strength and capability to give us quality and build will win the contract. Nobody is fixed in that sense. Okay. Just like on the JDA front, how is the launch pipeline looking? Like can we launch Mahim in Q1 or any other, like the sequential JDAs which we have signed? How is the launch pipeline looking for this year, both in Thane and JDAs? In the current year, you will see a few launches from us, but they will all be in Q3 and Q4. You may see in Q2 some launch in Thane, but Q1 we have not scheduled any launch because usually it is generally a low period and not many launches also take place. Okay, sure. And like maybe a detailed answer since there are not many participants on the call, can you please like inform us about the whole timeline of a JDA, like how it works right from the discussion and getting the contract and clearances, etc., to construction and launch? Certainly, certainly. See, each JDA is different. If it's a society development, it's a slightly longer time cycle because of the legal process it has to go through, and many players get involved as far as the society management is concerned. That's usually 15-18 months, sometimes can even stretch to a 24-month process from the time you get appointed to the time you can launch the project. Some of the other JDAs which are not going through the society redevelopment, or if somebody's already done the work and we are getting involved at a later stage, then it can be even as short as 9-12 months from signing to actual launching of the project. That's the range, typically from 12 months - 24 months for each JDA from the time you get appointed and to the market launch. And all the intervening steps happen in between, which is approval, planning, etc., etc. Thank you very much and all the best for this year. Thank you. Last question. Participants, to ask a question, please press star and one. Mr. Biplab, you can ask your question. Please go ahead. Yes, Biplab. Oh, sorry. Sorry, I was under mute. Hello. Good afternoon. Good afternoon. Good afternoon. I have three questions. I will start with overall, how's the market? That is the primary concern of all of us analysts and investors. The first question is on the real estate, state of real estate, residential real estate. How have residential real estate sales trended over the last three, four months, including May, April? Are we beginning to see any signs of moderation in absorption, be it in footfalls, or lower conversion rates, or overall buyer sentiments happening? That is my first question. Yeah. Can I take that, Amit? Yeah, yeah, please. As far as Q4 of last year is concerned, January and February were usual months. There was not too much of, let's say, effervescence or ebullience that we saw in the market, but March was extremely good. March we saw very, very good demand, much better than we usually see in that month of the year. We got a substantial bump up in the month of March. Whatever slowness was there in January and February kind of caught up in that. The quarter was pretty good for us. In April and May so far, it is business as usual. Barring the last one week, we saw some dip in the falls. I guess that was more to do with the fear and the uncertainty because of the war-like situation which got created. The inquiries seem to be flowing back as of yesterday itself. Again, calls of whatever people were holding back since the news of ceasefire has come. The phone calls have been ringing, and people are already booking for the coming weekend, and they have to come and see the sample apartments. Footfalls are again back, barring these few days. On the whole, the market seems to be good for us. For all our projects, wherever we are present, we have not really seen any dip on a quarter-on-quarter basis. Of course, every week or every month is not the same as every other month, and it is also a slightly seasonal business. This is the period of summer vacations in any case, so quite a few people are traveling from the city. Our planning also is according to that in terms of the way we budget for what will be the sales in April- May. They seem to be completely on track and on plan as we had budgeted. The market seems good for us. Okay. That's good news. Second question is on the supply that is coming to the MMR region. Do you see supply increasing across MMR? I mean, at least you can see whether there is an increase in number of competitions around your projects. The reason is particularly as several developers who acquired FAR at discounted rate a few years ago, and they might have launched, and they would be beginning to launch projects. How do you expect the market to evolve as this new supply comes in, especially in terms of pricing? If pricing does not soften, then maybe absorption or so basically trying to understand the competitive intensity across MMR. That is my second question. Yeah. As of now, the supply scenario seems to be well balanced and not very different from what it was last year. In fact, the supply has only been going down in the market as the absorption has been increasing. The number of launches has not really been able to keep pace with the demand which has been in the market. That is why the last two years you have also seen the prices also firming up a little bit. While they have been very, very healthy in terms of appreciation, they have not run away, which is also a good part. Now going forward, it is to be seen how many launches actually hit the market. This is a question which was asked earlier also as to how long it takes for a project to actually hit the market. The time to market for a project is typically 24 months if a developer is very efficient. I mean, that's how market operates in any case. Some of the players intentionally hold back launches, or some of them are not as efficient. If you take all that into account, I really do not know how many launches are planned for Q1, but whatever little bit we know, I do not think there is going to be any deluge of supply or large number of launches which may happen. Also, there are artificial constraints which are there because approvals also get delayed to some extent in that. For instance, there is a Supreme Court case going on for the environment approval just now. Some of the projects who get impacted by that, if they are within a certain vicinity of an Eco-sensitive zone, and Bombay also gets impacted with that because Sanjay Gandhi National Park is right in the heart of the city. Some of those projects will also get delayed in terms of getting their approvals. Taking all that into account, I do not think supply scenario is going to change dramatically in the next three to six months. Okay. That is both our questions. I mean, regarding demand as well as supply, these are very encouraging. My third question is to Gautam in research. Basically, just wanted to know, there are so many things happening in the country and across the world that it is difficult to take a firm outlook. Just trying to understand, Gautam sir, what is your outlook of Aerospace and Auto? How do you think things will pan out in the next one year? Gautam, you are there? Gautam? They are in the call, and they can speak. Their line is unmuted. Mr. Gautam, please unmute yourself from your side to speak. The line for the management is disconnected. Ladies and gentlemen, please wait till I bring them back in the call. Not available. At the tone, please record your message. When you have finished recording, you may hang up. We have the management back with us. Sir, can you please try? Yeah, just hold on. Yes, sir. Yeah, extremely sorry that our line got disconnected. Gautam, you are there? Mr. Gautam is there in the call. Yeah. Gautam, there was this question on the outlook about the aerospace and auto business. I do not know whether it got answered or you have yet to answer. Please answer that. Operator, have you connected Mr. Maini? Yes, they are there in the call. Have you unmuted them because they cannot? Yes, yes. They are unmuted. Gautam, can you hear us? Their handset may be muted. Just tell them to check their handset. Yes. The line for Gautam sir has disconnected. I'll connect them again. Are we able to get to or? Mr. Gautam is back in the call. Gautam, yeah, I could listen to everything, but I think you could not hear me. I heard the last question was the aerospace and automotive market. If we are there, then I can continue. Yes, please, please, please. Okay. Basically, let me start with the Aerospace market. I think the markets now are looking very good compared to last year. As you are all aware, last year there was a serious problem with the Boeing aircraft. They had their own internal issues. Because of that, the aircraft production from Boeing was severely impacted. You're also aware that between Airbus and Boeing, they capture the majority of the aircraft market. Hence, it's a big relief for Boeing to come back to its levels. It's public information that the narrow-aisle aircraft, they're already producing now at a rate of 32 plus, and they are moving towards 38 aircraft. We can already see the pull, and those reflect the numbers of the last quarter. The aerospace market is definitely recovering, and it will continue in that pace. You're all aware that aerospace is a market which has 8-10 years of backlog, and therefore barring incidents which are not related to business, such as we saw in the days of the COVID, or we saw in days of maybe there's a strike or some unnatural thing that happens. Otherwise, the Aerospace market is extremely bullish going forward as well as due to the high backlogs. In terms of automotive, it's a mixed market, I would say. The automotive markets in India are still much better. The ones overseas are definitely falling. The news that we have to look at is that even though markets are falling, the supply chain constraints in both Europe and the U.S. are going to be high. The geopolitical situations will definitely be working out, and we're all seeing changes on a daily basis. We strongly believe that overall, it will still remain positive for us because of those situations. Of course, as of now, since our major markets are in Europe and in the U.S., we do not immediately see any issues due to the current affairs. Yeah, overall, I would say we're looking forward to the coming year. Thank you. Thank you. As there are no further questions from the participants, I now hand the conference over to Mr. Amit Agarwal for closing comments. Over to you, sir. Thank you. Thank you, everyone, participants. Thank you very much for taking interest in Raymond Limited. Now we will have the team merging into real estate, as well as Raymond Limited will have the engineering business and look forward to talking to you next quarter. Thank you. On behalf of Antique Stock Broking Limited, that concludes this conference. Thank you for joining us, and you may now disconnect your line.