Ladies and gentlemen, good day and welcome to Sobha Limited Q1 FY25 Results Conference Call hosted by ICICI Securities. 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. Adhidev Chattopadhyay. Thank you, and over to you, sir. Yeah, good evening, everyone. On behalf of ICICI Securities, I'd like to welcome everyone to the Q1 FY25 Results Call of Sobha Limited. As always, we are represented from the management by Mr. Jagadish Nangineni, the Managing Director, and Mr. Yogesh Bansal, the Chief Financial Officer. And now I'd like to hand over the call to the management for their opening remarks. Over to you. Thank you. Thank you, Adhidev. ICICI Securities team for organizing this call. Good evening, everyone. Thank you for joining us for the Q1 FY25 earnings call. This quarter has been quite positive for us, and I, along with Team Sobha, are happy to be interacting with you today. You can access the investor presentation, which is based on the audited financial results adopted by the board from our website. In today's call, I'll briefly touch upon our performance in Q1 and our outlook for the remaining period of FY25. The first quarter was an eventful one with four new project launches in real estate, two of them in Gurgaon, and one plot of development in Chennai and one in Coimbatore. These projects combined measure 3.04 million sq ft. The projects are as follows. First, Sobha Aranya, our company's first golf course-based project. Second is Sobha Altus, company's first mixed-use development project, both in Gurgaon. Sobha Conserve in Chennai and Sobha Mountain Mist in Coimbatore. In the past nine months, we launched an overall 10 million sq ft, and currently, we have 9.24 million sq ft of unsold inventory. This gives us a great visibility for our teams to work on sales for the remaining year in addition to the planned launches for the next nine months. The majority of the recently launched inventory is in high-ticket size category of over INR 5 crores, and hence, we expect the sales velocity to be moderate for such units. We have a strong residential launch pipeline of 17.9 million sq ft across 16 projects, seven cities, and we expect these projects also to be launched in the next six to eight quarters. In the remaining quarters of this financial year, we expect to do another at least 6 million sq ft, taking the yearly launches to about 9 million sq ft. This provides us a great impetus to the near and medium-term performance. We are also building a robust pipeline for future projects from our existing land bank, largely based in Bangalore, and new transactions in current operating cities and high-potential non-operating cities. The high-potential non-operating potential cities that we are currently considering are Mumbai and Noida. The current potential of these projects is about 30 million sq ft. We will share the details of these projects as we move into forthcoming projects from time to time. The expected timeline to bring these projects into launch stage is between 1.5 to 3 years. As you are all aware, we have recently concluded our rights issue and raised a capital of INR 2,000 crore. This capital will enable us to propel from here after laying a strong foundation of execution and fiscal, and develop deep operational expertise in multiple cities in the country. This capital raise from the public has come after 15 years after 2009's QIP and our landmark IPO in December 2006. The successful rights issue makes 2024 a significant milestone for the company, as it is a testament to our commitment to growth and promoters' intent to contribute to the same in India. It also shows the incredible show of support we have received from the public, investors, from our valued shareholders, from those who have continued to make us who we are, for which I'm truly grateful. Sales in the first quarter of this fiscal year have been quite encouraging, and we have done the second highest-ever sales value. We have sold a total of 562 units this quarter and achieved a quarterly sales of INR 1,874 crores, registering a year-on-year growth of 28% and quarter-on-quarter growth of 24.6%. Thanks to the new launches, for the first time in the history of the company, NCR has contributed to INR 852 crores, 45.5% of the overall value, overtaking Bangalore sales. GIFT City also had a remarkable quarter with a sale value of INR 93.2 crores post-launch of Sobha Elysia. Sobha's overall price realization in Q1 FY25 was the highest ever. This is because of the significant shift in our product mix aided by the recent launches. The demand outlook in all our operating cities continues to be steady, with supply catching up to the demand. During the quarter, we completed 0.92 million sq ft in delivery, which is 564 units, and we are on track to complete about 5 million sq ft versus about 4 million sq ft in the previous financial year. In this quarter, although we have completed projects, delays in obtaining OCs have affected our revenue recognition, and hence, going forward, the revenue recognition would be in a little lagged manner for the remainder of the financial year. Our contract revenue is steady for the quarter, and going forward, we would de-emphasize on civil contracts projects owing to the increase in scale of our operations in real estate. This would enable us to channel our resources to our real estate projects and increase the pace of construction, continuing with the backward-integrated model of delivery, which is the hallmark of our company. Similarly, our manufacturing divisions continue to support our delivery model while we service external customers as well. With this overview, I now invite Yogesh, our Chief Financial Officer, to give his commentary on the financial performance in Q1, and then we can open the floor for questions. Yogesh, over to you. Good evening, everyone, and thank you for joining us today. I am pleased to share our financial performance for the first quarter of financial year 2025, ending 30th June 2024. Starting with our cash flow, in line with the previous quarter, this quarter also, we monitor our cash flow closely. The improvement in cash flow over the last two years is a clear testament to our focus and our constant endeavor to improve financial efficiency. We have achieved the highest-ever quarterly inflows and crossed a historic milestone of INR 1,500 crores. Total collection from all the businesses amounted to INR 1,546 crores in this quarter. Of this, about INR 1,392 crores were contributed by real estate businesses, marking it the highest-ever quarterly achievement as well as in our operating history. This was possible due to increased sales and also progress in project development in all ongoing projects, leading to higher billing and collection. We generated a net operating cash flow of ₹327 crores, which was 68% higher than Q1 2024. CapEx was also—we have invested in CapEx close to ₹44.5 crores, which was higher due to the start of a section of recent launch projects. During the quarter, we have invested ₹161 crores in land, in line with our growth focus. These are 15 consecutive quarters of debt reduction. We reduced our net debt by ₹74 crores in the quarter, and now our debt equity is 0.47. Looking ahead for our real estate residential real estate business, we have an estimated margin cash flow of ₹16,200 crores to be realized for sale and market expense. Of this, ₹9,994 crores is expected to come from our ongoing projects and balance ₹6,210 crores from our forthcoming projects. On the P&L side, our total income during the quarter was ₹670 crores, with a withdrawal of 85.4 crores, with a margin of 12.7%. Real estate income from property development was from the handover of residential units was ₹334.7 crores. In this quarter, revenue recognition was low on account of fewer handovers due to delay in OCs in some of the projects. During the quarter, we have spent a lot of money on sales and marketing on current sales, which is also taken into account in our P&L. For the quarter, we have recorded a net profit of ₹6.4 crores. Before closing, I will just touch upon the rights issue. So, as you are aware, recently, we have raised ₹2,000 crores through capital markets. We have issued 1.21 million shares at a rate of ₹1,651 per share, and the rights issue was subscribed 1.39 times. With this, this rights issue will help us in securing new opportunities in new markets, as well as it will strengthen our existing operations. Once again, I thank you all for your participation. We can open the call for question and answer session. 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 the touch-tone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Puneet from HSBC Mutual Fund. Please go ahead. Yeah, thank you so much, and congrats on great numbers. My first question is, you know, with respect to the comments that you made, that, you know, given that you will have high-ticket price launches, the sales would be moderate. How should one think about bookings in the light of this comment? Should one think that last year's run rate would be where you would end up this year, or do you expect to pick up there? Thank you, Puneet. What we expect from a sales point of view is both from the current inventory that we have and also proposed launches that we are planning to do subsequently during the financial year. In my earlier call, I had mentioned that in this year, we would be targeting a sale of at least about INR 8,500 crore, and that's what we would continue to aim for. It's not that the inventory is only with that high-ticket size units, but also it comprises of the other units. Those would be, of course, be a little bit moderate, but the rest of the inventory that we have seems to be having good traction. I believe with the current inventory that we have, which is diverse across locations, and also with the new strong pipeline that we are seeing, we should be able to achieve what we have set out for. That's excellent. Similarly, your comment on revenue recognition, which you said will come in a little large manner, given that you are guiding for almost 5 million sq ft of completion, can one assume it will be more towards third and fourth quarter? Yes, Puneet, ideally, it should be coming from Q2 itself, but and wherein we had received a significant number of OCs post Q1. One of the reasons for the delay in Q1's revenue recognition, the OC matter, is also because of the elections that have happened, and wherein a lot of government functions and machinery are focused towards the conducting of the elections, and hence, there have been some delays. And post that, we have seen that there is a significant improvement in the timeline for getting these. So, if everything works well, we should be able to start seeing those from Q2 itself. Okay, that's helpful. One question on the accounting side. When I look at your balance sheet, the inventory reported has gone up by almost INR 1,200 crores. But on the other side, if I look at the spends on land payment and construction costs, etc., that's less than INR 1,200 crores. How is that adding up? Well, that is mainly owing to the fact that whenever we convert any of our land opportunity into a project, particularly in a joint development, right? So, we would have to take it, which is to follow the gross accounting method, wherein the construction cost pertaining to the landowner gets into both sides of the balance sheet. Okay, and that's helpful. And lastly, you know, if you can also talk about the bump in realizations that we are seeing on the GIFT City Hyderabad, is it more the nature of product, or is it that the realizations in those cities have gone up to such a range? Well, in GIFT City, we have seen a GIFT City project is in Gandhinagar, and there we had three projects, first one being Dream Heights. Right from, and we started the project in 2017, we have started, had been seeing steady increase in the realization, and probably you would have noticed in some of the recent land auctions also, there is a great interest in GIFT City, and hence, there is significant demand there. And in the past 4-5 years, particularly, we have seen increase in the realization from earlier INR 6,500 to close to about INR 10,000. So, the new project that we launched was at a budget about INR 12,000, and we are seeing decent traction, not that it's necessarily going to continue at the same pace as Q1, because Q1 has a slight increase because of the new launch. From here on, it will be a steady progress. We are seeing a very good demand response for this project through. So, the project type has not changed, just the realization, which used to be ₹8,800 a sq ft has gone up to ₹12,300. So, that's how one should treat it? One is the price per square feet, the realization. Second, even the unit, the kind nature of the project also has slightly differed from our first project. Our first project was, in fact, only one-bedroom and two-bedroom units. Second one had a mix of both two-bedroom and three-bedroom. This one we're catering to the slightly luxury product. This one is largely a three- and four-bedroom. The product configuration also changed as the GIFT City progressed from where it was about 7-8 years ago. That's helpful. Thank you so much. I'll join back in the team. Thank you, Puneet. Thank you. Ladies and gentlemen, in order to ensure that the management is able to address questions from all participants at the conference, please limit your questions to two per participant. The next question is from the line of Dhruvesh Sanghvi from Prospero Tree. Please go ahead. Yeah, congrats for the great quarter, Jagadish and Yogesh. Thank you, Dhruvesh. Yeah. So, just to understand, Sobha share versus JD share. So, if we see the cash flows, last year we paid approximately INR 1,000 crores to JD Partners. But when we see, you know, in the million square feet size, I mean, it doesn't look like there is any meaningful JD Partners share. So, how do we tackle this? Like, will this come down materially in the future? Because 95% or maybe 98% of our sales are probably our own versus the JD area. How should I read this? So, well, that's a we look at both a little differently, Dhruvesh. One is the cash flow. Cash flow, of course, last year, JD share cash flow was slightly higher owing to payouts for some of our partners, which we accelerated and paid them out, which are ongoing, continuing projects. While this quarter, that has normalized, and that's where you are seeing slightly lower JD payments now. Coming to the overall inventory that you are—if you are referring to the inventory that we have or the sales that you are referring to, then it would be slightly different. And the remaining inventory that we have, about 18 million sq ft that we plan to launch in forthcoming projects, that will be JD overall Sobha share would be about in the range of 76%-80%. Okay, so I mean, there is a meaningful JD number there as well is what you are saying. Okay. The second piece is when we see the gross debt, it has remained nearly INR 2,000 crores for the last five quarters, and we are in a very healthy shape. So, is it like we are preparing for the so-called new cities of Mumbai and Noida? And once the deal's complete, we have to pay some big numbers out there, or the prepayment clause don't allow you to pay early out of the existing debt? How does this number is to be seen? This is completely technical. It's nothing to do with any link to any strategic direction that we are taking. The technical thing is, it's clearly-it's a-we are just following through with what the RERA method of deploying our capital. So, we had got good collections from previous two years of sales and also billing that we have done with good progress on our sides. While for joint development projects, we can probably allot or refer to joint development payments and take some of the cash out from these RERA accounts. But for own land projects, it's far lower that we can take out. So, hence, what the number that you are seeing in terms of the cash that's lying in the books, that will be largely towards in the RERA accounts. RERAs. Thanks. And last, if I will squeeze one, in general, I'm referring to the magazine article which generally talks about the slightly longer-term vision of India by the Menons. And there, Mumbai looked to be a predominant number, but the quoted time period was looking very low in terms of in three, five years, we will be here or there. If you can just throw some light on what practically we can achieve in Mumbai, considering that your first project may start from one and a half or two years hence, as you indicated at the start. So, some timelines in terms of when will Mumbai pre-sales really start in a proper way? Dhruvesh, while the intent for the promoters and the senior leadership is to expand and grow to new cities, and like I mentioned in my opening comments, Mumbai being one of them, Noida being one of them, we are still taking baby steps in these cities. It's very difficult to comment about the timelines immediately, but probably by the next call or so, we'll be more clear in terms of how we would like to progress from here. It's slightly early right now. No problem. Thank you. Thanks a lot. Thank you. Thank you. The next question is from the line of Parvez from Nuvama Wealth. Please go ahead. Hi, good evening, and congratulations for the great set of numbers. So, a couple of questions from my side. First, I think in the previous phone call, you had that we are targeting over 9 million sq ft of launches this year. Does that target remain, or is there a chance that we may leave it? Good evening, Parvez. Yeah, you are right. The last quarter call, I had mentioned 9 million sq ft, and even in this opening comments also, I have referred to the 3 million that we have already done in the first quarter, and remaining three quarters, we should be able to do at least 6 million. There is an upside potential to this, definitely, but this is a number that we think we can surely do. As the time progresses and we get far more confidence on the timing of the remaining launches, we will definitely revise this number. So, what would be the GDV of these 9 million sq ft launches? I mean, rough estimate. It's an average of current about ₹11,000. I think we can take about total 9 million will be about in the range of ₹10,000. And second, I mean, we have obviously stepped up our land-related tickets. This quarter, in fact, the trajectory had started going up last year as well. So, going ahead now, do we have a target in mind regarding what is the quantum of all these, either in million sq ft or GDV terms that we are targeting for adding? I think some news reports say that we have won a couple of auctions in Greater Noida, also JDA in Gurgaon. So, just wanted to get your views. What is our, let's say, target on the land development side? Thanks. Yeah, Parvez, we do not have a clear yearly target for adding GDV. The reason is twofold. One, I think we have enough in the pipeline for us, fortunately, and which you can see in the inventory itself, we have about 18 million currently and about 9 million already we have as unsold inventory. So, that's 27 million sq ft. On top of it, we have additional pipeline of significant from our existing land bank and also what we have done as deals in the previous couple of years. So, hence, we think that there is enough inventory with us. On top of it, the current market seems to be very on the upper side. With the capital that we have and the cash flow that we are generating, we will see opportunities and we will the capital allocation for us is very strictly in terms of the financial returns too. We will be deploying based on the opportunities that we would receive. I'm not a big fan of putting targets for GDV on a yearly or a quarterly basis. Sure. Thanks and all the best. Thank you. The next question is from the line of Biplab Debbarma from Antique Stock Broking. Please go ahead. Good evening, Jagadish sir, and good evening, everyone. So, sir, my first question is on the margin, reported margin that has been low for a while. So, sir, what would be the projected margin for FY 2025 and 2026 based on the revenue recognition that is estimated? And by when do you think we can cross EBITDA margin, reported EBITDA margin? Yeah. Good evening, Biplab. We do understand the concern of the lower EBITDA margins. Like I have mentioned, this is purely because of earlier in the previous financial years, it has got to do with the cost overruns in our projects in contracts and contractual projects and in real estate projects post-COVID. But going forward, we are very optimistic of the margins, particularly in the sales that we have done in FY 2023, 2024, and first quarter of 2025. We would be our gross margins should be EBITDA margins at project level should be more than 30%. So, hence, they would recover as we recognize these revenues in the coming years. So, and while we are a lot of fixed costs that we are absorbing today are at a slightly higher level in terms of sales. So, both combination of the lower margin recognition of the previous years and higher cost base in terms of fixed costs, both contributing to lower EBITDA margins right now, those will surely recover as we start recognizing more revenue based on the completion of the projects. And that we should start seeing the better margins from even from next quarter. But I would say that steadily it would improve from next financial year. Okay. Great. A second A second question is from your venturing into new development, Mumbai and Noida. Welcome to Mumbai, sir. Just wanting to know this project, so what kind of these are JD projects? I knew from the 1 million sq ft, what is the developable size in Mumbai and in Noida? Thank you for the invite. Hello. Am I audible? Yes, sir. Okay. Hello. Am I audible, Biplab? Yes, sir. Yes, sir. Yes, sir. You are audible. Sorry. So, thank you for the invite to Mumbai. We are, like I said, taking very baby steps right now, and it's very difficult for us to give a clear timeline or what we are planning to do. We ourselves are in a significant learning mode. So, as things progress, we will be able to give you clear commentary or indication towards what we are planning to do there. And that you will definitely find in the subsequent interactions with us. Okay. Okay. Okay. So, thank you. I'll come back in. Thank you. Thank you. The next question is from the line of Prithesh from Motilal Oswal. Please go ahead. Yeah, good evening. And thank you for taking my question. Firstly, just a clarification whether Sobha Altus has any contribution for the quarter or most of that sales that happen will come in Q2? Good evening, Prithesh. The Sobha Altus also was launched in Q1 of this year. A small contribution from that also is available. It was launched towards the end of the quarter. It's a small contribution. It's not very large. Got it. And second on your product strategy, since you agreed to the fact that all these premium projects with higher ticket size will have a moderate kind of sale. So, firstly, trying to understand why these premium projects, whether the location demands that or the land costs that we have paid or the terms that we have agreed with JDA partners need to have a premium project in that location so as to earn good margins. So, just broad comment on that. And if you can just quantify the balance 6 million sq ft in this year or the 19 million sq ft that we have in the forthcoming pipeline, what would be the mix of mid-income versus premium projects? Good question, Prithesh. It gives me an opportunity to respond to why we have chosen to do this. Firstly, the choice of the project, the positioning of the project, and the mix of the configuration of the units is not necessarily driven only by financial sense, but also from the location of the project, the kind of bylaws that we have, owing to what kind of audience that we would like to expect to cater to. So, we as a company also have a vision to create landmark spaces and phenomenal projects catering to a higher ticket size customers as well. So, it is a coincidence that all of these projects have come together. We always had some small mix of such projects in our portfolio. But most of these projects have come through in the last couple of quarters. That's largely a coincidence. But each project has a well-thought-out plan as why we have done that. And for example, the Aranya, which is a golf course project, and the size of the unit and the design of the project is completely in sync with the fact that it is one of its kind in NCR and in India. And in the row houses that we have done in Bangalore also, it's in a fantastic location. And the kind of the land, the availability of the scale of the land, and the kind of product that we wanted to do in terms of row houses has been one of our dreams to develop such a project towards this side of the town. So, considering those, we have been designing these projects for a few years, and they have all been launched together. That's sort of a coincidence. But the rest of the projects is on a typical mix of our 2-3 and 4 bedrooms, the remaining 17, close to 18 million sq ft. Okay. I mean, any breakdown you can give in terms of whether it will largely tilt towards mid-income or its balance between both the categories? So, well, the remaining 18 million sq ft, it's designed again to largely skew towards our typical product, which is, and all of these are apartment projects. So, largely, they will be in our bread-and-butter category of average size of 1,800-2,000 sq ft. Perfect. That's very helpful. Second question on the rights issue that we have had, I just wanted to check how much did a promoter additionally contributed to rights which were not unsubsidized by the existing investors? And if you can quantify that number, I mean, over and above their current holding, how much they would have put in that rights issue? Well, like Yogesh has mentioned in his slides, that the overall rights issue was oversubscribed by 1.4 times. The promoter's share in the whole share has gone up by about 0.5%. 0.5%. Okay. Got it. That's helpful. That's it from my side. And all the best. Thank you, Prithesh. Thank you. The next question is from the line of Abhinav Sinha from Jefferies. Please go ahead. Hi. Jagadish, quick question on rights issue itself. So, when are we expecting the remainder of the money to be drawn in? Abhinav, in the rights issue, we had taken a provision for doing it in two tranches, additional tranches. As we deploy this capital and start seeing utilization of this fund, we will take a call in another three months to choose the timing of that, whether it's going to be one tranche or two tranches. We have a time of 18 months to make a choice there. Right. But hopefully this year, all of it can come? Yeah, that is quite possible. That's quite possible. And like I said, it's too early. We just finished the first tranche. So, we will be able to take a call in another 3-4 months. Sure. I actually had a few questions on the NCR market. So, firstly, Gurgaon, we have heard that there has been some slowdown, etc. So, just wanted to have a broader take from you also on the overall market. And secondly, again, the remaining area that you have in Gurgaon now to be launched, what is the timeline for those launches as well? In Gurgaon market, see, firstly, the projects that we have currently, they are catering to the upper end of the market. Hence, it's very difficult for me to comment on the rest of the market. The rest of the market seems to be reasonably strong. The higher ticket size market also seems to be steady. And like you know, we cater to the end-user customers. And there seems to be a very good interest for those end users in continues to be the interest in our products. So, from that point of view, I don't see a large concern. The remaining inventory that we have, a couple of more projects that we would like to launch, that we should be doing it in another 9-12 months. Okay. Jagadish, how much of inventory do you have in Bangalore now? In the next one or two quarters, are we looking at some big ticket launch there? Yes, of course. In Bangalore itself, we have about 3.5 million sq ft. We would probably launch out of the 18 million, we will have about 11 million from Bangalore itself. But in the next one or two quarters, because sales seem to have sort of slowed there now. Yes. Largely, the new launches that will happen in this financial year, large launches will be from Bangalore. Okay. And finally, is it possible to comment on the Greater Noida land auction? We seem to have won something. Yeah. That's a small land that we have participated in and won. It's about 3.44 acres. We think that we can develop about 0.65-0.7 million sq ft. From an overall potential point of view, Greater Noida seems to be getting better over the years. Hence, we have been looking at evaluating the market for quite some time. We thought this is a good opportunity where we are getting clean land from the government and wherein the ability for us to get approvals and launch the project are pretty straightforward. Hence, we think that this is a good opportunity for us to experiment in a new market. Also, I think the economics also works for us. Great. Thanks and all the best. Thank you, Abhinav. Thank you. The next question is from the line of Siddhant Dand from Goodwill. Please go ahead. Hello. Hello. Yeah. Hi. My first question was regarding the acquisition cost of land. We have been hearing from a lot of other developers, other listed developers that the cost of acquiring lands in hot markets like Bombay and NCR has shot up. So, what kind of IRR are we expecting on these projects? And how do we not make the mistake of buying land at the top of the cycle and then being stuck with it for a long time? Good question, Siddhant. You are absolutely right that the product prices have almost gone up in the last couple of years. Similarly, the land prices also have caught up, particularly in the last 9-12 months. Hence, we need to be far more calculative and cautious in terms of doing new deals. That's where I think our play comes into strength because we do already have a good pipeline of new launches. We have a good capital base. Our ability to choose the transactions where we think that it financially makes sense and strategically also it helps us. We will be able to capture those opportunities without the burden of having any high debt and having a good capital base for us to invest. So, from that perspective, we are far better positioned in this market than what we were before in probably two years ago. Okay. The second question regarding the rights issue. As of date, we would be net debt free? Well, we have drawn the first tranche is about INR 1,000 crore. Hence, post that, you have seen our net debt currently is at about INR 1,200 crore. Post the rights, it will be slightly that net debt probably would be about INR 300 crore. Okay. That's fair. Last question. This quarter, you did not give the pre-sales number at the start of the quarter. Was it the new regular practice or was it a one-off? Well, this one was owing to the we were in the middle of the rights issue. Hence, we were advised to combine it with our quarterly results. Hence, we have taken that approach. We will continue with our operational updates in the next quarter. Okay. That's perfect. Thank you so much. Thank you. Thank you. The next question is from the line of Pawas Pethia from Aditya Birla Mutual Fund. Please go ahead. Hi, sir. I just want you to understand what is the land bank post this forthcoming projects of this 19 million sq ft if you could give some region-specific colors on the land bank we have. Like I mentioned, Pawas, we do expect to have projects beyond this 18 million sq ft to the tune of 25-30 million sq ft. That will be largely from our existing land bank and also some of the recent projects that we signed up. This 25 to 30 million sq ft, post that, we don't have any additional land bank or? We do have. Those are still in stages where we cannot clearly say that those can come into a development stage. We do have, and we are working towards it. As and when those also come in, we'll definitely add to the pipeline of projects. Okay, sir. But some color about which are the regions where this is kind of more, whether it's Bangalore heavy, whether it's what else there in the? From our current land bank point of view, Pawas, it's entirely Bangalore. Although we do have land in Tamil Nadu and Kerala, but majority of them, we do think that we will need to consolidate and probably do projects like plotted development, or we use it for some other purpose, other asset class, or we do monetize those land parcels. So, that's largely the current view. If there are any changes in the location dynamics, and as we continue to invest in consolidating those, if there are any other changes in dynamics of the particular micro market, we will obviously relook at development potential there. Sure. Sir, the reason for not putting it across, is it not contiguous land or is it some regulatory issue? No, it's not at all a regulatory issue. It's more to do with continuity, more to do with the current location and its dynamics, where we think that the development potential is not as high as it should be because our main focus is development of residential spaces, which is, again, built-up areas. These locations are not yet there for that. Okay. Sure. Thanks. That's all from my side. Thank you. Thank you. The next question is from the line of Himanshu Upadhyay from Buglerock Capital Private Limited. Please go ahead. Yeah. Hi. My question was on Bombay. What type of projects you are looking in capital allocation you are thinking? And how are you thinking about your differentiation in this particular market versus other players? And some of those broad things, you can help us in the market for how you are thinking or approaching the market. Good evening, Himanshu. Good evening. The approach towards Mumbai is similar to our approach to any new city that we have gone in. We have got a lot of learnings as we enter a new city. Like I mentioned earlier, we are still in a learning stage right now. Our ability to give a full-fledged commentary or an outlook or strategy in terms of what we are going to do is a little bit premature. So, hence, I would like to reserve it for probably a few months later. Having said that, there are several, Mumbai being a very large market, probably constituting about 35%-40% of the overall top nine cities in the country. There would be a lot of opportunities. We think that there would be a small space for players like us as well. It has to fit in our model of development, model of our financial metrics. So, considering and the opportunities that are presented in Mumbai are several types, unlike in many other cities. The geography itself is far and widespread: Kurla, Mumbai, Thane, and Navi Mumbai. It's a large market where our understanding is very preliminary. Hence, it's very important for us to focus on specific types of developments and locations currently. We are trying to wrap our head around it. As we can start focusing on certain opportunities, we will be able to get a far better understanding and make up our own plans to go about it. That's one. Second is, of course, apart from Mumbai itself, we do find a lot of opportunities in our existing operational cities. Mumbai is just one market. We are looking at it from a very long-term view. It's not that we are just taking the capital that we have and allocating a large chunk of that to Mumbai. It's another city where it's, in fact, if the priority is right, then we would allocate far more capital to our existing locations than to new cities in Mumbai for two reasons. One, still we are learning about it. We would like to enter it with a lower and capital-efficient manner. Second, like we are witnessing, the market is also still evolving. And we are not very sure if it's at the top end of the market or there is still room for us to grow. So, considering all that, we would take measured calls on how we go about in Mumbai. We said that there are a lot of land parcels where we need to consolidate the thing. The rights issue of capital you have raised, do you think a substantial chunk can go for consolidation of those land banks and bringing them to the market, or do you think that is a small opportunity only? Well, these land banks are largely located in peripheral locations of cities. Hence, capital required for us to consolidate is very low. That's not the primary aim of the capital raise that we have done. Also, it will be an extended period of time. The current land bank, which is in Tamil Nadu and Kerala, that we will see it only we will use the capital as and when we can get the right opportunities to consolidate. Okay. Okay. Thank you so much. Thank you, Himanshu. Thank you. The next question is from the line of Parikshit Kandpal from HDFC Securities. Please go ahead. Hi, Jagadish. So, our first question is on the there was some announcement in media that you have distressed some 12 acres of JDA. So, what is this land parcel in Sector 63A? Yes. Yes. We have done a collaboration with a local land owner. This is part of our launch plan for future. How big is this opportunity in terms of millions square feet and JDA and whether it is a part of the presentation? Yeah. It's part. I mean, I think we can develop about close to 1.6 million sq ft of area here. Approximately, the rate here will be about INR 17,000-INR 18,000 or more than that? Yes. At about 20,000 is what we believe we can do. Is this a part of the presentation, or is it like it will get added maybe in Q2? No, this transaction we have completed earlier, although it's reported in media recently. So, we have taken it as part of our forthcoming projects. And it's included in the about 18 million sq ft of forthcoming projects. Okay. So, my second question is on the Hoskote land. So, now Godrej has launched a project and it has done significantly phenomenal in terms of sales. So, when you speak about that 20 million sq ft, so additional pipeline, so how much first of all is the Hoskote potential? Because what I understand, it was 500-600 acres of land, potentially with 50 million sq ft of sellable area. So, how much, if at all, is included in that 20 million? And when do you think you can bring it to the market? Our first phase that we are planning to do is in and about more than 100 acres. And that we have started doing our master planning there. And I think we should be able to start that process of submitting for approvals, etc., in the next 6-9 months and post that whatever time it takes for us to launch. Is it a part of that 18 million sq ft which you have factored in, or is it part of 20 million which you said is the pipeline beyond that 18 million? The current forthcoming projects, what we have declared as the projects for the next 6-8 quarters, it doesn't include the Hoskote land. Hello, Parikshit. Your voice is not audible. Sorry. Hello, Parikshit. Hello. Yes, Parikshit. You are breaking up. Sorry. I'm logging. I'm logging. I'm logging. The next question is from the line of Puneet from HSBC Mutual Fund. Please go ahead. Yeah. Thank you so much. My question is, first of all, on this land bank thing which you discussed, so there is Hoskote which you talked about. There is Kerala. If you can talk about it. And there was another 34-odd acres in Kochi. Any progress there? And any thoughts of disclosing this in your presentation at some point of time? Definitely, we would like to do that, Puneet. We will endeavor to cover that in the subsequent quarters. Okay. Okay. Okay. That's great. And just on your finance cost, if I look at your finance cost on the P&L basis, that has fallen towards you despite gross debt rising. But when I also look at the cost of borrowing that you report, that has gone up on a quarter-on-quarter despite the fact that your balance sheet has actually become much superior. If you can comment a bit on what's driving all this? I. Hello? Yeah. Thank you, ladies and gentlemen. Due to time constraints, that was the last question. I now hand the conference over to the management for the closing remarks. Sorry. Let me answer the question which Puneet had said. So Yogesh, can you take the line? So the cost of debt, in fact, actually has our finance cost has slightly reduced from last quarter. So I'm not entirely sure what your question was, Puneet, because our overall finance cost has reduced by about 5-odd%. Closest 10% it got reduced. It got reduced. But we'll understand the question and probably take it offline again. Thank you. Thank you. Ladies and gentlemen, due to time constraints, that was the last question. I now hand the conference to the management for the closing remarks. Thank you. I express my sincere gratitude to all the participants in the call today. I hope we answered your questions satisfactorily. So if there are any other questions, please reach out to us. Thank you and have a wonderful evening. On behalf of ICICI Securities, that concludes this conference. Thank you for joining us. You may now disconnect your lines. Thank you.