Ladies and gentlemen, good day and welcome to Sunteck Realty's earnings conference call for Q2 and H1 FY 2022. We have with us today Mr. Kamal Khetan, Chairman and Managing Director. Mr. Manoj Agarwal, Chief Financial Officer. Mr. Prashant Chaubey, SVP Corporate Finance. Please note this call will be for 60 minutes of the duration for this conference call. All participant lines will be in the listen-only mode. This conference is being recorded, and the transcript for the same may be put up on the website of the company. After the management discussion, there will be an opportunity for you to ask questions. Should you need assistance during the conference call, please signal an operator by pressing star then zero on your touchtone phone. Before I hand the conference over to the management, I would like to remind you that certain statements made during the course of this call may not be based on historical information or facts and may be forward-looking statements, including those related to general business statements, plans and strategy of the company, its future financial condition and growth prospects. The forward-looking statements are based on the current expectations and projections and may involve a number of risks and uncertainties and other factors that could cause actual results, opportunities and growth potential to differ materially from those suggested by such statements. I now hand the conference over to Mr. Khetan, Chairman and Managing Director of the company. Thank you, and over to you, sir. Thank you. Thank you for joining Sunteck Realty second quarter FY 2022 earnings call. I'm excited to share with you our continued progress on the next phase of our development as a business. In our last call, we introduced the guideline principles of the new Sunteck, what we are calling Sunteck 3.0. Sunteck 3.0 is focused on three key priorities, an asset-light approach, a flywheel of high velocity growth, and an exceptional and incentivized team. Market consolidation in favor of quality and well-funded real estate companies has been an ongoing trend, and Sunteck has been a key beneficiary of this trend, continuously expanding its business portfolio with attractive return opportunities. In fact, since the first wave of COVID-19 in 2020, Sunteck has been the largest acquirer of highly value accretive projects in MMR, a trend it sustains even today. We have added approximately 23 million sq ft across five projects in different micro markets of MMR, namely Vasai, Vasind, Borivali, Kalyan and Khopoli-Pen. While targeting these acquisitions and achieving them, this has been possible only because of the excellent coordination of the various departments by the team Sunteck 3.0. These acquisitions are setting the stage for exponential growth of the company and underpins the first priority of our Sunteck 3.0 vision. On the back of these acquisitions, the company will witness significantly big new project launches in the second half of FY 2022. Collections have witnessed steady growth along with high collection efficiencies. A key to our strong operational performance is being a dominant developer in each of the micro markets and housing segments we operate. Additionally, the focus on our core strength of sales and marketing will enable us to sustain the strong presales and collection trend going forward. With projects across all the segments, namely our ultra luxury, mid-income, and aspirational, allowing us to be present across the pricing spectrum, we are poised to grow our presales exponentially going forward. While we grow our presales, we are equally focused on our operating margins as well, which we want to take it from current 25% level to above 30%. This underpins our second priority under the Sunteck 3.0 vision. I am very proud of the team we have built at Sunteck. Going forward, we intend to put a lot of our attention on our employee learning and development. The MMR housing sector has significant room for continued growth, driven by improved affordability, lower home loan rates, and young buyers, and the demand we are witnessing for the homes today. We expect it will continue for a very long time. I am excited for what the future has in store for Sunteck and excited to continue to share it with all of you. Thank you. I will now hand over the call to our CFO, Mr. Manoj Agarwal, for his comments. Thereafter, I would be happy to answer your questions, if any. Over to Manoj. Over to you. Yeah. Thank you, sir. Good evening, everyone, and thank you once again for joining us today. A very warm greetings to all of you. The financial and operational numbers have been uploaded in the exchanges. I hope you all must have gone through the same. Now, I would like to run you through the key financials and business performance numbers. Our pre-sales grew by 54% on a quarter-on-quarter basis in Q2 FY 2022 to INR 272 crore as against INR 176 crore in Q1 FY 2022, and 36% year-on-year basis from INR 200 crore in last year's same quarter. Collections grew by 20% quarter-on-quarter basis in Q2 FY 2022 to INR 207 crore as against INR 172 crore in Q1 FY 2022, and 47% year-on-year basis from INR 141 crore in Q2 FY 2021. For half year FY 2022, pre-sales grew by 48% year-on-year basis to INR 448 crore as against INR 302 crore in half H1 FY 2021. Collections also grew by 83% year-on-year in H1 FY 2022 to INR 379 crore as against INR 106 crore in H1 FY 2022. In terms of financial highlights, we reported a consolidated revenue of INR 136 crore in Q2 of FY 2022 as against INR 93 crore in Q1, which is an increase of 47% on Q-on-Q basis. On half-year basis, revenue increased by 13% to INR 229 crore from INR 202 crore in corresponding period last year. Consolidated EBITDA for Q2 FY 2022 is INR 36 crore as against INR 21 crore in last quarter, which is an increase of 77% on Q-on-Q basis. EBITDA for half year 2022 stood at INR 57 crore as against INR 45 crore last year. That is also an increase of 27%. Consolidated PAT for Q2 FY 2022 is INR 15 crore as against INR 3 crore in last quarter, which is an increase of more than 400% on quarter-on-quarter basis. PAT for half year basis also increased by 122%. That is INR 18 crore from INR 8 crore in last year corresponding period. As always, we continue to focus on our cash flow management and financial discipline amidst this environment, and that continues to reflect in our low adjusted net debt equity ratio. That is excluding quasi equity, which has been reduced to 16.16x due to our strong operating cash flows. In the first half of FY 2022 also, our operating cash flow was positive by INR 53 crore. The positive cash flow helped us to reduce finance costs as well as net debt significantly compared to the same period last year. We can now open the forum for questions from the participants. Thank you very much. Thank you very much. We now begin the question- and- answer session. Anyone who wishes to ask a question may press star and one on their touchtone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the questions are assembled. A request to all the participants. Please restrict to two questions per participant. If time permits, please come back in the question queue for a follow-up question. Participants, you may press star and one to ask a question. Ladies and gentlemen, you may press star and one to ask a question. The first question is from the line of Kunal Lakhan from CLSA India. Please go ahead. Hi, good evening, Kamalji. Sir, just since your presentation is not yet out, just based on the limited information that is there. Just checking on the operational side. We have done, say, about, you know, INR 350 odd, INR 450 odd crore of pre-sales in the first half. How should we look at the full year? You know, specifically second half, you know, in terms of sales? Yeah, Kunal, correct. First half, obviously, we didn't have much new launches, as you know. Second half financial year, we are seeing at least minimum two big launches, and that will drive the pre-sales numbers exponentially. We are looking at least two big launches out of the so many acquisitions. Minimum, like at least Vasai one big launch and even a new phase of Naigaon over and above the two new launches. The third phase of Naigaon also we are almost ready for the launch of the third phase of the Naigaon as well. Sure. Vasai will come in Q3 or Q4? I can only say, Kunal, definitely in Q3 or Q4. We are trying our best to get it before in Q3. You know that approvals are not totally in the hands of the company. Leaving apart some small last moment last mile approvals, I think we should be. We are trying our best for Q3. If not Q3, Q4 for sure we are confident. Okay. Phase III of Naigaon should not be an issue in terms of approvals, right? Yeah, yeah. Those approvals are obviously Naigaon. All the approvals are the routine approvals that we don't see any challenge. Sure. What about the Borivali launch? When do we plan to bring that to the market? It is early for me to comment on that because approvals anyhow, we are given all the responsibility of the approval with the landlord partners. Although our team totally support them and help them to get the approvals. We are trying best, but we are not seeing the visibility at least in Q3, which it can go to Q4 or otherwise the next financial year. Sure, sure. Based on these two launches. That's all we have time for you. I request to come back in the question queue. Thank you. I request to all the participants, please restrict to two questions. The next question is from the line of Adhidev Chattopadhyay from ICICI Securities. Please go ahead. Good evening, everyone, and thank you for the opportunity. I have just a couple of questions. One, first question is on Vasind project. Initially, how is the response been and what is our target for monetizing this project? Second question is, since you've added so many projects now, three to four very large projects, are we like done for now? Do you want to consolidate for some time, or do you still expect, or rather, should we still see a lot of aggression in adding a lot more projects over the next one year? Thank you. Adhidev, we are very clear that the Sunteck 3.0 is all poised to grow exponentially. The way we have grown, if you see our history, we have grown maximum during the Lehman crisis time and the company has a history of 15 years. If you see last two to three years, we are growing and continue to do our acquisitions, and we'll continue. We'll see this momentum of acquisition going forward as well. We'll not slow down. We are not finished with this acquisition. There is lot more you'll hear from us going forward. As far as Vasind launch is concerned, obviously we did because we knew that was a COVID time and in affordable segment. But since we got the approval so fast, we are... If you can see, our turnaround time from the acquisition of the plot to launching of the project. Most of the project will see one of the fastest in the industry. If you see the Vasind's turnaround in less than 69 months. With that, I think what response we got was very encouraging. I mean, we were happy with the kind of response. The moment we are very clear that more and more modes of transport of railway open up, we'll see the momentum picking up in that segment at that micro market. Okay, sure. Sir, if I just squeeze in a last question. Do we have the sales breakup for quarter broadly? I think the presentation. I may have missed it. Yeah. I'll. No. Prashant can answer. Hi, Adhidev. Yeah. Hello. Yeah. Adhidev, we have done INR 146 million in the high income upper and ultra-luxury segment of pre-sales. In the mid-income segment, which is premium luxury, we have done INR 1,000 million. In the affordable aspirational luxury segment, we have done INR 1,190 million. In the commercial we have done INR 380 million. All in all, we have done INR 2,760 million of pre-sales in quarter two. Okay, fine. Thank you. Thank you. I'll come back in the queue for more questions. Thank you. Thank you. The next question is from the line of Varinder Bansal from Omkara. Please go ahead. Yeah. Hi, everyone, and thank you for taking my question. You know, I just wanted to understand a very basic question. When I see your slide number three and the way you have done a lot of acquisitions, and if I see the stretch of the, you know, from even Parel to Kalyan and all, you know, you are present everywhere. Compared to, say, someone like Oberoi, which is only into three, four places. Our pre-sales number are still, what, INR 270 crore-INR 280 crore on a quarterly basis. With all the acquisitions what you are doing, is there any target in your mind which you have that you know, what you guys are targeting for the next two, three, four years upon completion of many of the projects you have undertaken, and you said that you are still open for a lot of acquisitions going ahead? Good question, Varinder. Thanks. Varinder, we are very clear that we are poised to grow exponentially, so that is one thing very clear. That's why we are strengthening our sales team as well simultaneously. We have mentioned in my last analyst call also that we have internalized and we have got one of the best. I can say we are creating one of the best sales team. We know that we are acquiring so many projects, so we have to continuously launch. If you see in the past we have Sunteck was dependent, in fact, more on only two or three projects. Now we have seven to eight growth engines, which was like when we first it was like BKC, ODC or Naigaon, that's all. Now we can talk slowly that it will be BKC one growth engine, then ODC will be the second growth engine. Naigaon will be the third growth engine. Vasai will be the fourth growth engine and so on. Kalyan and all these are the big land sizes parcels, and these are like 40 acres, 50 acres, when I'm talking about Vasai and Kalyan and all these locations. If you see these sizes, these are the like for us as a manufacturing factory for next 8-10 years. This each factory will continue to give you a cash positive cash flow, successful operating cash flow of like INR 100 crore-INR 150 crore per annum. With the kind of acquisitions we have specially done right now, and we are almost among the one of the top developer in Western suburb in terms of size. From Borivali, if we talk about from Bandra to Virar, we must be having the highest million sq uare feet in terms of acquisitions. Once this approvals comes and which, because all these acquisitions, most of it is done in last 18 months. Once this approval comes, I think company, you will see the sales momentum also obviously going up. No, no, I understand, sir. You know, whenever I see some announcement coming from you, there is a number of INR 4,000 crore, INR 5,000 crore, INR 6,000 crore which is put on one project. You know, I think recently there was an announcement for Vasai project, right? It said there's a potential of revenue for that kind of money, you know, or sales from that project. When we're talking about 4, 5, 6 acres, you know, which are there since last, say, 18 months we have acquired. I'm just, you know, thinking that what kind of pre-sales number you guys are targeting, you know? Is there any target what you have that going ahead, you know? Because we are, we may be acquiring a lot of things, but we are still one-fourth of what, you know, say, Oberoi is doing in terms of quarterly pre-sales number. I can only say, in next two years, you will see these numbers going to very next two years because all these projects will be operational. You will see these numbers going to exponentially. You will not be surprised to see bigger numbers than any other of our some of our competitors. I would put it that way. Okay, I'll take the liberty to ask last question, sir. Sorry to interrupt you. I'll request you to come back in the queue. Thank you. Thank you. Participants are requested to ask two questions per participant. The next question is from the line of Biplab Debbarma from Antique Stock Broking. Please go ahead. Good evening, sir. My first question is, your aspirational sales. Out of INR 119 crore or INR 120 crore that you have done this quarter, what would be the contribution of Vasai project, sir? Biplab, it will be right now for project-wise, if you want the numbers, I think Prashant will be able to give you separately offline. If you want the segment-wise, he will be able to share with you the numbers immediately. Segment-wise, I have. That's fine, sir. Second thing is on your overall sales velocity. Just trying to understand that your Naigaon project has been, in the initial two, three years, it has been doing something like INR 400 crore-INR 500 crore per year. Do you think that with the launch of this new phase, you'll be able to get back to that kind of momentum? I think in the first two quarters, it's a little bit muted compared to what we have seen in the initial period of the project cycle in Naigaon. I think there was no big launch. We are very confident. Naigaon, we have been from last three years, you can see we easily achieve sales of close to INR 400 crore-INR 500 crore. We are confident year-on-year we will only see a growth on that number. We don't see numbers going down from there. Any of our locations, especially ODC, Naigaon and any of the new upcoming locations. Okay, sir. Thanks, sir. I'll come back in the queue. Thank you. Next question is from the line of Pritesh Sheth from Motilal Oswal. Please go ahead. Hi, sir. Thanks for the opportunity. Firstly, on the launches, you mentioned for the new project Vasai probably in Q3, Q4, and Borivali sometime this year or initial part of next year. What about Goregaon next phase and Naigaon? I don't know if you have mentioned, but in the course of repetition, when would be the next launches will happen for Goregaon and Naigaon? Pritesh, Naigaon, if you, I don't know. Sorry, I think you missed out. I already replied that, Naigaon we will be looking to launch in the second half of FY 2022. Coming to ODC we have some higher floors of Avenue 1 and higher floors of Avenue 2, plus the higher floors of Fourth Avenue. We, before launching any new tower, we have, I'm talking the higher floors which we have not launched before, in all put together three to five and to seven towers. We will be like, we will like to launch those seven towers higher floor, which is equivalent to the inventory of more than one tower or two towers. We will be launching that, and that is not difficult for us to launch. Though that definitely we'll be launching in the second half of FY 2022. Got it. Thank you. Sorry, I must have missed that. Secondly, on your latest acquisition, that is plotted development in Pen. We are seeing increasing acceptance of these kind of projects like plotted development, but particularly in Pune outskirt markets and Bangalore outskirt markets. What was your view about this plotted development when you acquired this project? What kind of customers that we are looking to target? Because I think for Mumbai outskirts, it is kind of a not very known thing that we are seeing. Your strategy on that. We all know that COVID has made a demand for second home very, I mean, like there is a huge good demand of second home. To take the benefit of that second home demand, obviously we see this location is very attractive. This is something similar to what people prefer to go to Karjat. Hence we are targeting that segment. There is not too many good locations in Karjat. This is Khopoli-Pen, I believe, this is a very known location, in fact, for people who know and who have done research for buying a second home in and around Kharghar for those locations. This is also a new location, I feel, and we feel a good traction coming whenever we decide to launch that as well. Okay. Target customers would be? Sorry, just to follow up on, I mean. Target customers, we are looking at some mid-income group and some HNI. I feel that should be our target customers. Sure. Thank you. We have different sizes of plots, so that it doesn't take much time for these launches and all. I think the approvals are only the key, and we are very confident of even that. Again, we put that responsibility on our landlords, and we are confident that that also we should get very quick. Sure. Thank you. That's all for me. Thank you. Thank you. The next question is from the line of Venkat Samala from Tata Asset Management. Please go ahead. Hi, sir. Thanks a lot for the opportunity. My first question is, we had initially guided for FY 2022 sales booking value of about INR 1,500 crore, right? Could you please confirm if we are on track to that? Yes, Venkat. Thanks for asking question. Yeah, so we have kept a target of close to INR 1,400 crores- INR 1,500 crores, and we are on track, and we are confident to achieve near to that number. We are very confident. Understood. Thanks for that. Venkat, that doubt definitely is coming from you. I can understand, because no big launches we could do immediately right now. We are looking- Right. that to be happening in this current half of the financial year. Right. I mean, then the H2 run- rate would be then about INR 1,000-odd crores, right? That you would need. We are looking to. That is where I was coming from. Yeah. We are looking at numbers which is close to that. Understood. Sure. Thanks for confirming that. Secondly, with respect to collections, I understand YoY jump is huge, but then when I compare with Q4 FY 2021 numbers, it's still meaningfully lower. I mean, Q4 FY 2021, you've done around INR 320 crores. In Q2, it was INR 207 crores. Any aberration there that we should note? No, no. Prashant here. Venkat, there is no aberration. It generally, as the construction is progressing and as the projects are getting sold, receivables are coming to us. In fact, just to help you out, recently we have received our occupation certificate for our Sunteck City. That collections also you will start seeing it coming in the third and the fourth quarter. Overall, there is no aberration. It's just in the normal ordinary course of business, you will see collections moving up significantly going forward. Should we expect Q3, Q4 collections to be closer to INR 300 crores and upwards of that? Venkat, in the first half we have done INR 380 crores of collections, which is an 84% jump over last year. In the third and the fourth quarter, definitely you will see collections moving upwards. Our target last year we had achieved INR 780 crores of collections. This year we are definitely looking at INR 1,000 crores of collections. Okay. That's helpful. Thank you. It will be like almost 30%-35% up or 40% up from the last year's target. Right. That's helpful. Thank you. Wish you all the best. Thank you. Participants, you may press star and one to ask a question. The next question is from the line of Aditya Mehta from G.K. Capital. Please go ahead. Hi, sir. Thanks for the opportunity. Sir, you mentioned that you have received OC for Avenue two, so we will be delivering in current quarter. What about the Naigaon? Naigaon also we are looking phase one to be delivered in this half of the financial year, FY 2022. We'll see obviously OC of that project as well. What is the approximately unrecognized revenue in both of these projects? Prashant, do you have it? Aditya, we are now following in Avenue 1 and Avenue 2 percentage of completion method. There all the revenues are getting recognized as the construction is progressing. Whereas for Sunteck WestWorld and Sunteck MaxXWorld, in Sunteck WestWorld we are following project completion method of accounting, and in Sunteck MaxXWorld we are following project completion method of accounting. The revenue recognition for Sunteck WestWorld will be closer to around INR 400 crore unrealized revenue. For Sunteck MaxXWorld, the revenue will be recognized once the project is completed, which is close to around INR 700 crore. Okay, sir. Sir, my second question, we have launched Sunteck Pinnacle in ODC. Is this a green signal for our commercial portfolio over there or just it is a testing or a small launch, soft launch? It's both. It's both because it gives us both comfort. First we sold it to DMart, you know, in the same development for INR 100 crores. Now we wanted to test it as well and we want to because it was a standalone building, we didn't want to retain it as a rental asset, and we wanted to see a demand. We can say that I can share with you the demand is really, really good, and we are really excited to look to see that when can we launch our big ODC commercial portfolio. Okay. Now there's no doubt that we will not be converting it to a residential or something, we will be going ahead with the commercial only. Commercial potential is always there. We can always convert. See, today there is a huge demand of residential also. Mm-hmm. If I see that the residential is giving me a faster and a better cash flow, it does not stop me from simultaneously starting one more phase of residential and simultaneously one more phase of commercial. We have so much, such a big land bank there and the huge potential of our FSI unexploited. That will go for long, long time. That all will go for a long time. Okay. Got it. Thank you, sir. I'll get back in the queue. Thank you. The next question from the line of Varinder Bansal from Omkara Capital. Please go ahead. Sir, I have two questions, okay. Again, from the presentation, you know, you have done what in last three years around INR 36 million acquisition. I think this could be almost what you as a company did in the last 10, 15 years or even more. I just want to understand, these numbers are good, but on the, you know, on the organization side, are you adding more people? What is happening in terms of, you know, getting more and more people in terms of execution? Because execution will be something which is very important, right? Because now you're trying to do what you have done in the last 15, 20 years, you know, and so is there any plan on that side? Yeah. Good questions, Varinder, once again. Varinder, you see, we obviously started this company with the first one initial million project in BKC with no team, with zero team. Today, in 15 years we are among the sizable company and some of the big players of the real estate in Mumbai MMR region. Now there is a foundation has been made very strong, I can say in last 10 years, 15 years. Now with that same foundation, we are very confident now growing. We have grown exponentially whereas most of the developers, we know that this industry has gone through the worst time in last 15 years. In that 15 years, we have grown the company exponentially. Now when it comes to execution, let me share with you the execution Sunteck is doing right now is in-house construction with very few developers, I think, or no developers. Big branded developers, no one is doing execution on their own. They are dependent on either the L&T or any other developer or any other contractor. In fact, Sunteck has an in-house team and which gives a quality which is as good as any big contractors. Looking at that, if you see, if there is even a doubt with you Varinder that Sunteck, how will we execute? We have that because we are operating in MMR market where the margins are very good and high margins. We can always outsource the execution to construction company like L&T or any other, like, let's say Capacit'e or any other contractor. We have done that in the past also. When we were growing exponentially that time also we have done that. We are right now the team is so strong, we are confident at least whatever projects we have acquired till now, we can execute in-house without taking any outsourcing the construction to the third party contractor. That is very clear. We are very confident. That even if that wherever we feel, we can always outsource it. Okay. You know, I was honestly talking about the organizational structure, but I'll just do my second question before, you know, I got cut. Also, you know, there has been talks that there is some promoter equity which you want to sell in the market. Can you please clarify on that? Yeah. In fact, there is no promoter equity which is getting sold in the market. The equity which is a treasury stock of Sunteck in one of the subsidiaries of Sunteck, which is Sunteck subsidiary. The stock is a treasury stock of Sunteck Realty. It is lying there for more than 10, 12 years. It is only that it is not doing justice to the company by keeping that stock in the subsidiary. Our tax consultants like KPMG or PwC, the PwC especially, have advised us obviously we should get rid of that stock which is lying in the subsidiary. That is the only reason and whenever that stock gets sold or we decide to sell, we are not in a hurry. It has been lying there for last 10 years. Whenever that gets sold, the money will go to the company, Sunteck Realty. It will not come to the promoter. That is one thing. How much is it, sir? It is in the subsidiary. The stock got sold by the subsidiary. The money will come to the subsidiary of the Sunteck. No, no. How much is the percentage of equity? That is close to almost 4% of the company. That is close to 4% of the company, which is huge. Sunteck is not in a rush. We are in a I think we have one of the strongest balance sheet. Our debt equity ratio, net debt equity ratio is like close to 0.16. The cash flows are too strong. We are not in a rush. But we can, we know that we have to, so we have to get rid of it at one point of time, anytime at the right time we'll see, we'll definitely a right investor that will look at site, which will only enhance the value of the company. That money, if it comes in the Sunteck, that will only go for the growth of the company and that will only take the company again for the next phase of growth. Got it, sir. Thank you so much. Thank you. Thank you, Varinder. Thank you. The next question is from the line of Parvez Akhtar Qazi from Edelweiss Securities. Please go ahead. Good afternoon, sir, and thanks for taking my question. My first question is, what is the kind of residual inventory that we have in ODC and Naigaon projects? Second, what is the status of our under construction commercial projects, around near BKC? Thank you. Parvez, the exact numbers detail, I think that one second, Prashant can give them. Parvez, you want the unsold inventory detail in ODC and Naigaon, right? Yeah, yeah. In ODC we have Avenue 1, Avenue 2, and Avenue 4. All three put together, we have close to around INR 1,000 crore-INR 1,100 crore of unsold inventory. In Sunteck World Naigaon, we have close to around INR 400 crore of unsold inventory. You said INR 200 crores? INR 400 crore. INR 400 core. Okay. Sure. Parvez, sorry, Kamal Khetan here. Yeah. I believe you are asking about the existing ongoing or there is further exercise that you are talking about inventory or. I am asking for the existing projects which have already been launched. What is the unsold inventory that we have? Okay. That is fine. I think that Prashant has already given. Yes. Thank you. Yeah, Parvez, you had one more question. About the BKC commercial projects. Yeah, the BKC commercial projects, Parvez, we are happy to note that all the approvals are in place for us, and the construction is in full swing. We intend to complete both these projects, Sunteck ICON and Sunteck BKC 51, in the coming 12 months. That is the timeline for us. All the approvals are in place. Sure. Thanks. That's it from my side and all the best for future. Thank you. Thank you, Parvez. Thank you. The next question is from the line of Abhishek from Yes Securities. Please go ahead. Yeah. Good evening, sir. Just, one question. Can we do a percentage of completion method and completed contract method, I mean, simultaneously? Don't we need to reverse back the percentage completion method revenues? Abhishek, definitely going forward. These were the old projects where before the Ind AS came, we were matlab we were already following this percentage completion method. Those projects are almost near completion. That we have to continue obviously. Otherwise it could have been a problem. I think. Samarth. I mean, where we think we should stop on adding new projects because, as Samarth rightly said, we have added 36 million sq ft. The only question is not about adding project, but the execution also. Where we see the project addition for next one or two years or what could be the number that would we say that it is sufficient for at least five, 10 years kind of view or something like that? Abhishek, to answer very frankly, we are very clear. We are not stopping here. I can. Only time will tell that we are able to. So obviously we are not a 30-year-old company or 40-year-old company. Your question, your doubts are very... Your thinking is very clear. I can understand you're not wrong. But when we were doing BKC also, people were. That was the first project of Sunteck and these were the doubts that whether Sunteck will be able to complete the BKC project at all because it's such a high-end project and the first maiden project. Same was the question when we took all of a sudden 23 acres in ODC, Goregaon West, which is like a big project and the company was that time only four years young or five years only. The company started as good as real estate in 2006. and 2010, we straightaway acquired 23 acres of land parcel in Goregaon. There was a big question mark that whether Sunteck will be able to execute such big. That time obviously we also were worried. We got in L&T to do the execution. We launched three towers. Out of those three towers, two towers we gave it to L&T for execution and one tower we started. Going forward, we realized we slowly built the team. We saw the systems and process of the L&T, and we tried to better that, and we created an in-house team so that we can further execute all our projects in-house, and we did that. Same thing when Naigaon we took. We realized that Naigaon, before taking Naigaon, we had to build our execution team. We built that execution team and we didn't outsource in Naigaon, which is a big. What we did in Naigaon first phase was equivalent to what we did in last 12, 13 years across all the projects. It was a big jump. It was like almost 100% increase in construction area. That time also, Sunteck could ramp up the team and take it to almost double the construction quantity, which was again in-house. Today, not only the first phase of Naigaon, second phase of Naigaon is going and various projects, different projects are going. Whatever I repeat, whatever projects we have taken right now, we are confident that all of those projects we can execute in-house. Going forward, even if we have a doubt, so we will not compromise our growth due to feeling that we'll not be able to execute. We can always outsource to companies like L&T or Capacit'e. That is not a problem. Execution is absolutely not a problem. Got it, sir. Thank you. Thanks so much. Thank you. Thank you. The next question is on the line of Adhidev Chattopadhyay from ICICI Securities. Please go ahead. Yeah, thanks for taking my follow-up question. Just again, couple of questions. First, sir, what is the movement we are expecting in our BKC projects, considering that the market is pretty decent right now? And secondly, because of the FSI premium, the 50% concession, have we availed any benefits during this financial year? And could you quantify what are the savings we would have done, if any? Thank you. I will ask Manoj would like to take this question. Ask him to. Yeah, Manoj here. On FSI, there is totally INR 250 crore benefit available for us, and we've already availed of approximately, I can say INR 70 crore-INR 75 crore. The balance we will be availing before December. That is the deadline, December, yeah. Okay. Fine. The other on the BKC part, on the inventory monetization. Adhidev, BKC definitely we are aggressively now getting it. We are seeing there is good traction. Thanks to also Jio Drive, which has come, the mall which has come there. We are seeing the convention center again, coming up very soon. It was all due to the COVID. In fact, BKC was kind of because all the commercial locations were not fully operational. Now we are seeing a lot of traction, and God willing, we will see some good numbers coming up from the sales from the BKC as well. Okay. Okay, sir. Yeah, hope the things pick up over there as well. Yeah. Thank you and all the best. Thank you, Adhidev. Thanks. Thank you. The next question is from the line of Venkat Samala from Tata Asset Management. Please go ahead. Hi, thanks. Thanks a lot for the follow-up. Sir, you did mention that most of your projects currently that you are executing, you are doing in-house. If you could throw some more color on what is the team size and also on the quantum of the total asset value that you may be employing to develop those projects currently. You know, in the future, keeping in mind the expansion of your development pipeline, how do you think this could look like in the next two to three years? I mean, how much more investment would be needed to scale up your team? Good question, Venkat Samala. Again, I would say we have today a staff strength of close to 500 people, which is a current staff strength. We know we need to increase this. We are trying to use most of the technology and IT to increase the numbers less and use technology for doing most of the job. We are looking in the future, whatever we want to employ minimal number of people, like let's say team of 500 we would like to increase to, let's say 650 to 700 people and still manage this kind of business. Because we like to outsource some small things which does not affect our margins much. We are very clear. In my opening remark also, I made it very clear, our average operating margins right now were 25%. In spite of taking more project and going aggressively, we are now very clear our operating margins will be above 30% right, going forward. When you're talking to the current CapEx, like what we are putting every year-on-year is close to INR 500 crore per year right now on construction we are putting. Going forward, we are looking to put almost close to INR 1,000 crore. Right. What will be the total value of the assets that you use for construction? That is very negligible. Oh, okay. We take it on rentals and outsource. We don't try to own it ourselves because that's a pain. That will not be visible in the balance sheet then. Yeah, that's not much. That is negligible. What we feel we have to maintain the quality and we have to keep it with us, we try to keep it ourselves. Otherwise, small equipment, we outsource it. Understood. Right. My last question would be. Yeah. Okay. Sure. Please go ahead. Okay. Yeah. So now that you forayed into this holiday home segment, are you seeing more opportunities to grow into that segment? And how much would this be your focus area? Was it like, you know, was it just opportunistic that, you know, you got this, but is it also the case that there's a large opportunity here as well, and therefore maybe some of your focus would also be on this moving forward as well? How should we think about this? Venkat, you're to a large extent you're right. It's not that you can grow a company on this, but why, if we are in real estate, we should not leave any opportunity which is coming. We are seeing COVID has brought this new opportunity. Why not exploit it? We are using our satellite model even in doing this. We are totally keeping the company risk-free. In case of this, like the demand is all of a sudden it's, let's say this demand may we see that evaporates after two years or three years. Even in that case, company should not be bleeding or something. We are very clear it will be more as a opportunistic and we're seeing a huge demand, so we may acquire, we may sponsor one or two more projects under this segment. Okay. Thank you. Thanks a lot. Thank you. Thank you very much. Ladies and gentlemen, that will be the last question for today. I will now hand the conference over to the Chairman and Managing Director, Mr. Kamal Khetan, for closing comments. Thank you all for taking out the time from your busy schedule today. In case if any of your queries have been left unanswered, you can get in touch with me or my team. We look forward to your continued support. Thank you once again for joining us today, and please be safe. Thank you very much. On behalf of Sunteck Realty, that concludes this conference. Thank you for joining us. You may now disconnect your lines. Thank you.