Ladies and gentlemen, good day, and welcome to Sunteck Realty's earnings conference call for the Q3 FY 2022. We have with us today Mr. Kamal Khetan, the Chairman and Managing Director of the company, Mr. Manoj Agarwal, the Chief Financial Officer, and Prashant Chaubey, SVP Corporate Finance. Please note, this call will be for 60 minutes. For the duration of this conference call, all participant lines will be in the listen-only mode. This conference has been 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 statement, plan and strategy of the company, its future financial condition, and growth prospects. These forward-looking statements are based on the expectations and projections and may involve a number of risks, uncertainties, and other factors that could cause actual results, opportunities, and growth potential to differ materially from those suggested by such statement. I would now like to hand the conference over to Mr. Khetan, the Chairman and Managing Director of the company. Thank you, and over to you, sir. Thank you for joining Sunteck Realty Q3 FY 2022 earnings call. Hope each one of you and your family are safe and healthy. Over the previous quarters, I have introduced you to the guiding principles of the new Sunteck, what we are calling Sunteck 3.0. Sunteck 3.0 is focused on three key priorities. Maintain a strong balance sheet and strong cash flows. Second, continue to do marquee acquisitions in line with our business development strategy. Third, building an exceptional team. Given our strong balance sheet, high brand recall, and strong execution of projects, both our pre-sales and collections are registering healthy and rising growth on a sustained basis. This has also enabled us to grow our business and fiscal prudence by maintaining net debt equity ratio at sub 0.25. In the last 18 months, through excellent cross-team coordination at the organization level, we have succeeded in acquiring approximately 23 million sq ft across MMR. This has enabled us to double our growth engines from 3 to now 6, namely BKC, ODC Goregaon West, Naigaon, Vasai West, Kalyan, and Borivali West. We have close to 36 million sq ft of development portfolio now across all these 3, 6 locations. All these locations give us a clear visibility for the coming 7-8 years. The strong project pipeline has allowed us a slew of launches over the next 12-18 months across all segments. We are confident that these launches will scale up our pre-sale to achieve the next leg of growth for Sunteck and continue to witness rising market share. There is a continuous flow of business development opportunities that we are currently evaluating. Our endeavor is to capitalize on our strength of business development and do similar acquisitions, taking our portfolio from current 50 million sq ft to approximately 70 million-75 million sq ft over the next 18-24 months. We are not just focusing on our pre-sales growth but profitable growth. We have achieved an average EBITDA margin of 35% in the last five years. Going forward, we are looking at upward of 35% margin from our current portfolio. Last but not the least, I'm very proud of the team that we have built at Sunteck in last 15 years, and focused on strengthening it further. Thank you. I will now hand over the call to our CFO, Mr. Manoj Agarwal, for his comments. I would be happy to answer thereafter your questions, if any. Over to you, Manoj. Thank you, sir. Good evening, everyone, and thank you once again for joining us today, and take out your valuable time for Sunteck. Hope all of you are safe and well. The financial and operational numbers has already been published on the stock exchanges. I believe all of you must have gone through the same. Now, I would like to highlight the key financials and business performance numbers. Starting from the pre-sales. Our pre-sales grew up by 29% on Q-on-Q basis in Q3 FY 2022 to INR 352 crore compared to INR 272 crore in Q2 FY 2022, and 1% year-on-year basis from INR 349 crore in Q3 FY 2021 last year, same period. Collections grew up by 30% on quarter-to-quarter basis in Q3 FY 2022 to INR 272 crore, compared to INR 207 crore in Q2 FY 2022. 7% on year-on-year basis from INR 250 crore in the last year. For the period 9 months ended FY 2022, the pre-sales grew up by 23% on year-on-year basis to INR 800 crore compared to INR 651 crore in the last year. Also, the collections grew up by 41% on year-on-year basis to INR 649 crore, compared to INR 459 crore in the comparative period last year. With respect to the financial highlights, we have reported a consolidated revenue of INR 128 crore in Q3 FY 2022 compared to INR 136 crore in Q2. On 9-month basis, the revenue for FY 2022 stood at INR 357 crore compared to INR 419 crore in the comparative period last year. The consolidated EBITDA for Q3 FY 2022 is INR 35 crore compared to INR 37 crore in the last quarter. EBITDA for 9 months stood at INR 92 crore compared to INR 98 crore in the last year. During last 9 months, we have taken 50% concession benefit on premium and approval payments and paid INR 222 crore in advance to get the benefit of the same. We can now open the forum for questions from the participants. Thank you very much. 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 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 question queue assembles. A reminder to the participants, please limit your questions to two per participant. Should you have any follow-up, may we request you to please join the queue. The first question is from the line of Puneet from HSBC. Please go ahead. Yeah, thanks for the opportunity and congratulations on, you know, good performance. My first question is, with respect to land acquisition. You talked about acquiring 23 million sq ft of land since pre-COVID. Why do you see a need to acquire more land? And how different are the land prices or the terms of agreement versus what you did during the pre-COVID and the COVID period? Puneet, good evening. Why do we need land for acquisitions? Definitely, this is a raw material for us, and we continuously need that to grow the company. I don't think we cannot survive if we don't have a proper land acquisitions strategically on right time. This is looking at the timing, obviously, where the consolidation is taking place in the industry. I think it is the best time to do acquisitions and that too at the asset light model and with the better terms than what we would get, obviously, before pre-COVID. Okay. So you're saying the terms are better than pre-COVID even now? Versus the COVID period, are the terms equivalent or worse or better? It is better. It is better for you. Even when you look at the COVID period of 2020 and 2021, the deals which you are sitting on negotiating are better than 2020 and 2021? Yeah. We are. I can say if not better, they are similar, but not bad, not as bad as pre-COVID levels when there was like everybody or anybody was there. We know that lot of consolidation has already taken in the industry, and that has only given us a edge because the few players are left, very few players we all know and that's where organized and listed players are definitely getting that benefit. Okay. In terms of this land acquisition, what kind of, you know, land parcels are these? Are there auction land parcels, or do you have to JVs or are there slum and slash redevelopment, business redevelopment potential as well? Puneet, we definitely don't do any slum redevelopment, and we have not done any redevelopment projects as well. These are all JDA's asset light model with most of the landlords, and it is there in the public domain. I think if you must be tracking Sunteck, all these deals are there in the public domain. Understood. That's helpful. My second question- Mr. Puneet, so sorry to interrupt, but for any follow-up, may we request you to rejoin the queue, please. The next question is from the line of Kunal from CLSA. Please go ahead. Yeah, good evening, Kamalji. My first question was on the BKC sales. In the last 9 months, we haven't seen much happening there. Going forward, what will be your strategy to, you know, revive sales here and, you know, what is the monetization timeline that we are looking at for? Kunal, definitely we are concerned about the BKC sales going slightly low. One thing is you have to understand at one point of time, Sunteck was doing almost the just two years back, in fact, 60%- 65%, 50%- 60%, 2-3 years back, 50%- 60% of the sales would be from BKC. Our dependency on the BKC sales have in fact gone down. At the same time, nevertheless, we know that we cannot forget doing sales at BKC. We are finding out we are doing different strategy, and we see very frankly right now some action going forward in this sector especially in BKC project, and we'll see some improvement in the sales from this project. Okay. Sure. Sir, on your slide 17 of your 27 presentation, you've given the timeline for the new launches. I wanted a particular update on Borivali project, you know. Can you give us an update where we are? When do you expect the site to be handed over and then, you know, submit the plans for approvals and the final launch? Because it's been. We acquired this project in March 2021, and we are expecting the launch to happen in FY 2024. Just trying to understand, like, you know, what is happening here. Obviously, there is a registered definitive document with the landlord. It's a JDA model. It is a landlord prerogative to get approvals as per the agreement. He has to get the approvals. We are seeing the approvals, the way the approvals are moving. There are obviously a lot of approvals before we start the projects, as we know. We are not expecting all these approvals to come before the end of 2023, financial year 2023. That's why on a safer side, we have tried to show that the launch which we expect during the financial year 2023-2024. Sure. Thanks, Kamal. Thank you. The next question is from the line of Adhidev from ICICI Securities. Please go ahead. Yeah. Good evening, everyone. Thanks for taking my question. Just couple of questions. Firstly, sir, we have done around INR 800 crore in 9 months this year. Any guidance you'd like to share for this full year? For FY 2023, for the INR 1,800 crore guidance you have given up, could you break it up into how much would come from ODC, Naigaon, BKC, these projects which you already have, plus how much would come from the new launches which you plan next year? That's it from my side. Yeah. Thank you. Adhidev, thank you so much for asking the question. In terms of the target for FY 2022, we are targeting close to INR 1,300 crore of pre-sales for the entire year of FY 2022, right? In the Q4, that is the quarter which is currently ongoing, we have launched our third phase in Naigaon, which is Sunteck One World. The kind of response that we are receiving is quite encouraging. That gives us confidence in terms of achieving INR 1,300 crore for the current financial year. In terms of FY 2023, in slide 27 of our presentation, as you can see, we will be launching close to 3.35 million sq ft of portfolio. That portfolio plus the foundation, plus the sales from other ongoing projects that we already have, we are very confident that we can achieve INR 1,800 crore target that we have given in our presentation. Thank you, Adhidev. Okay. Okay. That's it from my end. Thank you. The next question is from the line of Venkat from Tata AMC. Please go ahead. Hi, sir. Am I audible? Yes, you are audible. Yeah, yeah. Thanks a lot for the opportunity. Sir, my first question pertains to the sales figure. Basically, we had initially guided for around 1,500 odd crores in FY 2022 and FY 2023, 20-22 billion. Any reason why we are kind of, you know, revised it kind of downwards? Then again, the way that we are kind of adding to our gross development value, the conversion of the same isn't reflecting in terms of our pickup in sales, right? How should we think about this? Yeah. Good evening, Venkat. Venkat, Kamal Khetan here. What we are talking about the revision, very frankly, we were looking at upwards of INR 1,300 crore. As we know that there is always an uncertainty of getting the approvals. We were looking at least one new launch from the new acquisitions what we have done, let's say like Vasai or Kalyan. Definitely the approvals have not come in line with what our expectation was. We are definitely looking, we have missed this quarter. We'll miss this quarter for the approvals of one of these projects. We are really confident those approvals will go to the next quarter. We... Hence, that's why we had to, maybe we were looking at 1,300 + pre-sales, but right now that's why we want to restrict it to 1,300. Right. Sir, if the approvals are slipping to the next quarter, ideally what you were originally guiding for FY 2023, there should be some upward revision or at least, you know, reinforcement of that guidance, right? Again, when we look at FY 2023 numbers also, they are kind of revised downwards. Where, what exactly are we missing here? No, Venkat, very frankly, we are very clear that INR 2,000 crore getting achieving that, we don't want to revise next time. I would put it that way. There are always some uncertainty we all know. If we are getting any new project started, there are a lot of approvals which is required in this segment, in real estate sector. As a sector. We know that uncertainties are always there, we want to be conservative. I can guarantee that if all the approvals are in line and what we are targeting this time, the approvals, the projects which will be launched in next financial year, FY 2022/2023, we will definitely see not only 1,800, maybe about INR 2,000 crore. At the same time, on a conservative side, we want to give a guidance of INR 1,800 crore, so we don't need to revise downward next time. Right. Sure, sir. Thanks for that update. I mean, one request is whenever you are guiding to the markets, if you could please take that conservatism into consideration whenever you are guiding, because obviously you would be the person who would best know about this business, right? Versus the investors. That's one request I would want to place on record. My second question is, and there is a request to this as well. With respect to the way that you are planning your investor presentation, if you could make it more consistent, because in this quarterly presentation, we don't really see a walk down of the cash flow, right? Which is really important for the investor to understand, because that's the single most important metric that investors would like to look at. If you could kind of incorporate that in all the future presentations. Just as a continuation of that, could you help us understand, I mean, how the collections, what were the collections, what were the spends, different type of spends, and then the net debt figure at the end of Q3 FY 2022? Hi, Venkat, this is Prashant this side. Trust you are doing well. Venkat, we have tried to better the presentation and make it more investor friendly. We are happy to take your suggestions and from next time onwards, we would incorporate all your suggestions. Thank you so much for being candid with us. As far as the cash flow is concerned, Venkat, as you are aware, we have done INR 800 crore of pre-sales in the current 9 months. The break-up of the pre-sales is as follows. In the luxury segment, in the Q3, we have done INR 77 crore of pre-sales. In the mid-income segment, we have done INR 139 crores of pre-sales. In the affordable segment, we have done INR 111 crores of pre-sales. The balance comes, 25 crores we have done in our ongoing commercial projects. That translates to INR 352 crores. In terms of collections, Venkat, in the Q3, from the luxury segment, we have collected INR 115 crores. From the mid-income segment, we have collected INR 123 crores. From the affordable segment, we have collected INR 119 crores. From the commercial segment, we have collected INR 12 crores. We take your point, Venkat. We will try to incorporate this in the presentation as well. Thank you so much. Thanks. Thanks a lot. Wish you all the best. Thank you. The next question is from the line of Parvez from Edelweiss Securities. Please go ahead. Yeah. Good evening, sir, and thanks for taking my question. Two questions from my side. First, what is the kind of inventory that we have currently in the ODC project? Second is with respect to the Naigaon project, have we launched the entire 1.25 million sq ft in the third phase that we were targeting to launch in Q4? And what is the pricing that we have kept for this phase three? Thank you. First is inventory in ODC. Parvez, can you repeat your question, second and third? The first question is what is the kind of inventory that we have in the ODC project currently? The second is, in your opening remarks, you said that we have launched the third phase of Naigaon project. Have you launched the entire 1.25 million sq ft that you were planning to launch in Q4, in Naigaon phase three? And also what is the pricing, which you have kept in this phase three for Naigaon? These are my two questions. Thank you. Coming to your second question, the Naigaon Phase 3 has been launched in line with what we were looking at. The pricing is similar, I would say, to the market, what we are selling the current products at. It is at the same, in line with the existing sales which is happening. Great. The first question, Prashant, can you give the inventory? Hi, Parvez. With regards to the inventory at ODC, I would like to break it up for you from currently ongoing and the future. In the currently ongoing, Parvez, we have close to INR 1,000 crores plus of unsold stock which is available with us across SunteckCity 4th Avenue, SunteckCity 1st Avenue and SunteckCity 2nd Avenue. This is because in the 1st Avenue and the 2nd Avenue we have got extra approvals. Because of that, there is a generation of new inventory. Secondly, in our upcoming projects in ODC, we have a total inventory of plus INR 5,000 crores. That is the breakup of inventory for you, sir. Thank you. All the best. Thank you. Thank you. The next question is from the line of Pritesh from Motilal Oswal. Please go ahead. Hi, sir. Good evening. Thanks for the opportunity. Just on the launches. The ODC launches that we are planning for FY 2022, 2023, these are going to be the new avenues or these are going to be the, you know, higher floor inventory which you are planning to launch? Yeah, Pritesh, it will be a combination of higher floors and the new tower launch. New tower launch will happen in 2022 or 2023 or 2024? I can only say that the total put together, we are looking at the launch area of close to 0.6 million sq ft, which will be from because we, as we discussed in the past one of the questions, that there are always uncertainty in getting some approvals. We are confident that at least 0.6 million sq ft we will be able to launch, taking the combination of new tower and higher floor launches put together. Sure. Got it. I think that's it from my side. Thank you. Thank you. Thank you, Pritesh. Thank you. Thank you. Before we take the next question, a reminder to the participants, anyone who wishes to ask a question may press star and one at this time. The next question is from the line of Mohit from Leverage Capital. Please go ahead. Yeah, hi. Thanks for the opportunity. My question is essentially on Avenue One, while you're talking about the, you know, higher floors, etc. When we do channel check, we understand that, you know, for even the existing ones, the amenities is not ready. You know, the gym is just about 400 sq ft between 440-odd flats. How do you plan to sort of really scale up your luxury projects? In light of that, do you want to do more luxury projects? Or, you know, you think management capabilities lies best in Naigaon, Kalyan, etc.? Thank you. Mohit, I don't need to explain the credibility of Sunteck. Sunteck has started the journey with BKC Signature Island project. I don't know your market sources from where you have got this feedback, but as of today, I can proudly say there are some of the best corporate people staying in our projects in BKC. We are pretty confident. In fact, Sunteck is known for the luxury and whether it is maybe in a uber- luxury segment or in the mid-income premium segment or maybe in the affordable segment. We'll continue to command luxury and we continue to command premiums across all our projects. Sorry to say that, if you think that Sunteck would be only doing affordable, I don't think we would be getting so many BD development projects on an asset light model where the landlord is trusting Sunteck with his land property, which is worth like close to INR 1,000 crores, INR 800 crores. I don't know where you have got your channel checks done from. Thank you. Thank you. Thank you. Thank you. I would now like to 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. Thank you. Ladies and gentlemen, on behalf of Sunteck Realty, that concludes this conference. We thank you all for joining us, and you may now disconnect your lines.