Ladies and gentlemen, good day, and welcome to Sunteck Realty's earnings conference call for Q1 FY 2023. We have with us today Mr. Kamal Khetan, Chairman and Managing Director of the company, Mr. Manoj Agarwal, Chief Financial Officer, and Mr. Prashant Chaubey, Senior Vice President, Corporate Finance and Investor Relations. Please note this call will be for 45 minutes, and for the duration of this conference call, all participant lines will be in the listen-only mode. This conference is being recorded, and the transcript for the same will be put up on the website of the company. After the management discussion, there will be an opportunity for you to ask questions. 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 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. These forward-looking statements are based on the expectations and projections and may involve a number of risks and uncertainties and other factors that could cause the actual results, opportunities, and growth potential to differ materially from those suggested by such statements. I now 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's first quarter earnings call for the financial year 2023. Hope each one of you and your family are safe and healthy. At the outset, similar to previous quarter, I would like to reiterate yourself to the guiding principles of new Sunteck, what we call Sunteck 3.0. The Sunteck 3.0 focus on three key priorities. One, maintain a strong balance sheet and cash flow. Two, continue to do market acquisition in line with our business development strategy. Third, building an exceptional team. In the quarter gone by, we have achieved a strong growth in both pre-sales and collections. This continued strong operational performance has enabled us to generate close to INR 600 crore of operating cash flow surplus on the cumulative basis for the past 2+ financial years. I'm happy to note that in the quarter gone by, we successfully launched one of our new growth engines, Sunteck Beach Residences at Vasai West. I am delighted at the overwhelming response received by the project. We are also eyeing launch of other projects in the upcoming quarters. This will enable us to maintain strong growth in the pre-sales as well as the collections. On the execution front, construction is in full swing at all our projects, namely Sunteck City Fourth Avenue and Sunteck City Pinnacle at the ODC, Goregaon West. Sunteck Maxxworld and Sunteck One World at Naigaon. Sunteck BKC 51 and Sunteck Icon at BKC, at BKC Junction and Sunteck Crest at Andheri East. Business development has been one of the core strengths of our company. We intend to continuously leverage this strength of ours, just like the 23 million sq ft of acquisition we have done post the first wave of COVID-19 pandemic. Our endeavor is to do similar acquisitions going forward over time. I'm very proud of the team that we have built at Sunteck in the last 15 years, and we are laser-focused on strengthening it further. 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 you, Manoj. Thank you, sir. Good afternoon, 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 have 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. Our pre-sales grew by 89% on year-on-year basis in Q1 FY 2023 to INR 333 crore compared to INR 176 crore in Q1 FY 2022 last year. Collections grew by 66% year-on-year basis in Q1 FY 2023 to INR 285 crore compared to INR 172 crore in the last year. With respect to the financial highlights, we have reported a consolidated revenue of INR 144 crore in Q1 FY 2022-23 compared to INR 93 crore in Q1 FY 2022. Consolidated EBITDA for Q1 2023 is INR 45 crore as compared to INR 21 crore in Q1 FY 2022. Consolidated profit after tax for Q1 FY2023 INR 25 crore as compared to INR 3 crore in Q1 FY2022. EBITDA margin for the quarter stood at 31% as against 22% in last year's same quarter. We can now open the forum for questions from 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'll wait for a moment while the question queue assembles. Participants are requested to limit their questions to two per participant. If time permits, please come back in the question queue for a follow-up question. We'll wait for a moment while the question queue assembles. First question is from the line of Adhidev Chattopadhyay from ICICI Securities. Please go ahead. Yeah, good evening, everyone. Firstly, congratulations to the team for a great start to the year. We had alluded in the last quarter to an INR 1,800 crores sales guidance for the year. Obviously, with the Vasai launch has helped us in the first half. If you could outline what are the other launches for the rest of the year, and if you could just quantify what is the GDV of the launches, the value what we'll be launching then during the rest of the year. That is the first question. Adhidev, as you see, we have already launched SBR and we from there we got a very overwhelming response. Initially, if you see, most of the sales were from the three growth engines of Sunteck, which is BKC, ODC, and Naigaon. Now, with getting SBR to the additional as a fourth engine to the portfolio of Sunteck, that itself we are confident with additional one project we will be able to achieve sales what we have given the sales guidance. Over and above, if we are able to launch obviously one or two more projects, the sales will only go upward from there. If I'm understanding correctly, so you mean another INR 500-600 crores of incremental sales annually should come from this project? Am I understanding it correctly? What do you think? Yeah, easily INR 400 crore-INR 500 crore we should be expecting. We have already done this kind of sales just in the last launch of just one and a half months or two months it was, the launch. We have already done the sales of Sunteck's SBR. We have already achieved the sales of INR 225 crores, which was in less than two months. Okay. Fine, sir. Fine. Second question is on business development pipelines. You alluded in your opening remarks that you are still looking at adding land bank across the area. Any specific micro markets and any quantification of what sort of deals we can expect during this year? Thank you. We are looking very aggressively. Obviously, it will be too early to disclose. There are a couple of deals which are, I can say at an advanced stage. I can only say we are trying to balance the portfolio across all the segments, looking at from ultra luxury segment to mid-income segment and also the affordable segment. We have, the acquisitions are in line that we can balance our portfolio, so that the growth is proportionately across all the segment. Fine, sir. That's helpful. I'll come back in the queue. Thank you. Thanks. Thanks, Adhidev. Thanks. Thank you. Participants, you may press star and one to ask a question. The next question is from the line of Yashwant Shetty, Individual Investor. Please go ahead. Yashwant, may I request you to unmute your line from your side and go ahead with the question, please. Hello. Go ahead. Hello, can you hear me? Yes, sir. We can. Okay. My name is Yashwant Shetty. Maybe there is some issue. Thank you for the opportunity. I want to know that in the balance sheet of March 2022, inventories are showing like, sir, about INR 4,000 crore. In the latest presentation of quarterly results, we can see that BKC is holding INR 1,500 crore of standing flats or something inventory. May I know, like, it is already included in this INR 4,000 crore or it is a separate one? Good evening, Yash. The question that you have asked is the market value of the BKC inventory. The INR 4,000 crores of inventory that you see in the balance sheet, that is the book value of the inventory. BKC will be out of that INR 4,000 crores, BKC is close to INR 700 crores. The value that you see in the presentation, that is basically the market value of the BKC inventory. Thank you so much. Okay. Thank you, sir. Thank you very much. Thank you. Thank you. Thank you. Thank you. The next question is from the line of Aditya Mehta from GK Capital. Please go ahead. Yeah. Good afternoon, sir. Thanks for the opportunity. Sir, I have two questions. First one is there any limitation on the number of projects we can launch simultaneously in a financial year? Because if we see the launch size of SBR, it was around 500 odd units, if I'm not wrong. Is there any limitation on the team front that we are restricted on the team side that we can launch only- More project in a year? I don't think it's that is the case. Because for that micro market, you cannot launch like 5,000 apartments at a time. That is the reason. Looking at the demand and supply, obviously, Aditya, we saw that the demand would be the market absorption capacity won't be more than 500 apartments in that micro market. Accordingly, we launched that many apartments, and we got a very good response on the same. Obviously, we have done our homework, and we have seen that how much absorption can happen, and accordingly we did the launch. Okay? Okay. Going forward, can we launch two projects simultaneously in a quarter? Because we have huge lineup of projects. Yeah, we have done in the past, and we continue to. We will do it, obviously. We have done in the past, and if there are two projects to be launched simultaneously in the same quarter, we will do, definitely. Thank you. Aditya Mehta to come back in the question queue. The next question is from the line of Pritesh Sheth from Motilal Oswal. Please go ahead. Yeah, thanks for the opportunity. Just to clarify, SBR Vasai contributed around INR 225 crore of sales this quarter? Yes. SBR is INR 225 crores. Okay. What is the status of your couple of projects in Borivali, Kalyan and the Vasai development? I mean, you have given the pipeline about when we are going to launch it, but you know, at what stage they are right now to have that visibility that you know, they are going to comfortably launch within a stipulated timeline that you have set. Pritesh, these are all at obviously various stage of approval stage. We all know that there are always uncertainty in terms of getting the approvals. Approvals are not in the hands of the company. Although we are trying our best to get the approvals. Looking at the past track record of Sunteck, that how fast we have turned around when we took Naigaon and how fast we have turned around SBR after acquisition of the project. Similarly, we are looking at the similar speed, and we'll try to turn around these projects also and try to launch them ASAP. I cannot give you exact definite timeline because of the approvals, how much time it will take. I can say at least we can be looking at one launch in next one or two quarters, minimum 1 big launch out of the new acquisitions. From the old acquisitions, the launches will continue, like from Naigaon, the additional phase, from ODC, maybe the additional tower, from, let's say, SBR, again, launching additional towers in SBR. So all these existing projects, there will be launches. The new launch, definitely we are looking at least one launch in next one in the second quarter or the third quarter. Which one it should be? Like, more likely Kalyan or Our endeavor is to launch all projects together, but it will be very difficult which one will be the first, very frankly, Pritesh. Okay. Very clear then. Secondly, on your business development, obviously you have continued your focus there. After that 23 million sq ft which you acquired post-COVID, we have a bit, I mean, slowed down a bit. I'm not criticizing, but are we right now focused on launching the existing pipeline we have, then you know looking at more business development maybe a year and a half afterwards? Or you know we'll continue to look at BD and you know continue to build the pipeline from there? Pritesh, definitely it's there is nothing like because the launches are going on, we'll not acquire. Or when the acquisition is going on, we'll not launch. Obviously, both have to go hand in hand, and the growth has to be across everything and every department. Obviously we are not looking like we'll do acquisition after one year or we'll do no launches. It is all going hand in hand, I can say. Okay. Okay, got it. That's it from my side and all. Thank you, Pritesh. Thank you. Thank you. 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 next question is from the line of Parvez Akhtar Qazi from Edelweiss. Please go ahead. Good afternoon, sir, and thanks for the great performance. Couple of questions from my side. First, when do we expect the completions of the four under-construction commercial projects that we have currently? The second question is to Prashant. What is the balance inventory currently left in the ODC project? Thank you. I'll answer the first question, and I'll leave the second question for Prashant. Parvez, as far as completion of all the 4 projects, Sunteck Crest, we are looking to complete it in second quarter or maximum Q3. If not Q2, Q3. Similar is the situation for Sunteck Icon and Sunteck BKC 51, both the projects on the junction of BKC, whether it will be in Q3 or maximum Q4. Maybe the fourth project, Sunteck Pinnacle, might go for the next financial year. Otherwise, three projects we are looking to complete in this financial year itself. Hi, Parvez. The three projects that we have launched in ODC, that is Avenue One, Avenue Two and Fourth Avenue. In all these three projects put together, we have close to around INR 800 crore of unsold inventory which is pending to be sold. This does not factor in the balance receivables. Over and above this, Parvez, we have close to 4 million sq ft of additional potential which is yet to be developed. This is the status of ODC. If you could also give the unsold inventory number for Naigaon. Yes. Parvez, in Naigaon, in Sunteck Westworld and Sunteck One World, there is hardly any inventory which is pending to be sold. In Sunteck One World, we have close to INR 500 crore of unsold inventory, which is pending to be sold. This does not factor in the balance receivable, which we have to receive from the sold inventory. That is the status of the ongoing projects and the additional launch yet to be launched area is close to 8 million sq ft. Sure. Thanks, and that's it from my side, and all the best. Thank you, Parvez. Thank you. Thank you. Participants, you may press star and one to ask a question. Next question is from the line of Kunal Lakhan from CLSA. Please go ahead. Hi. Good afternoon. Can I just briefly give us Hi. Status on the Borivali project, if you know, if the land has been handed over, if the RERA has been cleared for filing approval? Kunal, Borivali project, obviously the land. Once they already shut the club and all, and then the COVID came, obviously, and the approvals got slightly delayed, and that's why the approval was taking time. In fact, we voluntarily allowed the landlord to start the club once again. We are now expecting the approvals to come, hopefully looking at the current situation and the way the approvals are moving. I think we are looking to get it cleared in maybe next one or two quarters. If that comes, obviously we will be all excited to launch the project. Mm-hmm. The club is operational, you said, right? Yeah, the club is operational. That does not require too, but they can just give two months, three months notice, and they can just shut the club. Okay, sure. My second question was on our BKC. I mean, we have not seen much of a traction in the last year or six quarters or so. When do we think, you know, we can, you know, see some, you know, traction picking up in this project? Because, you know, we are like sitting on heavy inventory and it's been a while, you know. How should we look at monetization of this project now going ahead? Last quarter, if you see, Kunal, we have sold one apartment in Signature Island. I can only say this Q1, we could not sell anything. Q2, the traction is very good, and I think we will at least conclude, if not three deals, at least two deals in BKC. Okay, that sounds good. Sir, lastly, on the business development side, last few projects that we acquired were on the outskirts of the city limits. How should we look at business development as strategy going ahead? You know, would we still pursue, you know, projects outskirts of city limits, or would you look at projects within MMR region? It's not, Kunal, if you see it's balanced. Even out of that, like three, four projects that were BKC, Borivali's SK Resort has been within the city limits. If you look at Vasai, which is again a mid-income segment project, although it is on the outskirts. Going forward, as I said in my opening remarks also and in one of the questions I answered just now, that we are very clear we want to balance the portfolio. Looking at even upper luxury segment, mid-income segment and affordable segment. Obviously to get into mid-income segment and upper luxury segment more now, obviously the more deals have to be, they have to be within the city limits. Within the city limits. Sure. Thank you so much, and all the best. Thank you, Kunal. Thanks. Thank you. The next question is from the line of Prem Khurana from Anand Rathi. Please go ahead. Thanks for taking my questions. Sir, most of my questions are already answered, just a couple from my side. One was, I mean, just want to understand from, I mean, we recently delivered our Westworld project. I mean, almost around 2 million sq ft area, and it was our first project in affordable and true sense. Just want to understand any learnings that you have from this phase that we've delivered and the learnings that, I mean, ideally from this project you would want to use when you, whenever you launch your or projects in let's say Kalyan or Vasai. Were you able to kind of stick to our costs that we had in mind now when we started this project? Good question, Prem. In fact, if you look at, I think we were very cautious because this was our first project where we were entering into the affordable project. We were, I think that made us actually more conservative, and we were very, very cautious. The one thing we saw that in fact, since we were very cautious, I think what margins we were looking at were in the affordable, which was 15%-20%. I think now it is upward of 25% and close to 30% EBITDA margin. Which is very, I feel being there, we have been very good. I think so cost increase has already offset by the increase in pricing. I think what paid us is the good quality of construction and the speed of the construction and the timely delivery of the project. I think that If we maintain that for our future projects, I think we will always be commanding premium. If you look at in Naigaon, I think we are commanding the highest premium, I think at least 25%-30% over our competitors in that micro market. I think if we continue to give the quality and the construction timelines within the timeline, I think we will be able to deliver all our projects with a better margins and better brand. Second was on the recent launch, the Beach Residences. I mean- Sir, sorry to interrupt you. Can I request you to speak little louder? Yeah, sure. Am I audible now? Yes. Thank you. Sure. My second question was on Beach Residences that we've recently launched. I think the total development potential is almost around 5 million sq ft of area. I think 5 million sq ft at a single location only group housing would be too kind of dense of a project. It'll be too much of high-rises, right? Do we have any plans? I mean, how do we intend to kind of have mix and match between the various product categories, let's say luxury, I mean, villas or plots? Or do we intend to do only high-rises at Vasai? No. You have to look at Prem, the size of the 5 million sq ft is within 50 acres. It is not on 10 acres. In Mumbai city, most of the developers are doing like 5 million sq ft on six acres, seven acres or eight acres. This is 5 million sq ft on a 50 acres of land. Obviously we'll be doing lot of things and villas and the towers and everything. Not definitely we like to leave lot of green areas. For that obviously we'll do towers and we'll do high-rise towers for the sake of luxury, but not for making it congested or over a high density. It's for making it in fact more greener and more better and more beautiful. Sure. Any mix in mind as of now, or is it still fluid, I mean, in terms of mix that you would like to have in terms of let's say villas or different kind of apartments that you would wanna offer? We've started with two and three, so I mean, how would the configurations be? Let's say, I mean, whenever you launch your incremental phases, would we stick to two and three or there'll be three and four? And how much of these would be eventually villas? That's it from my side. Thank you. We are seeing. In fact, good thing, Prem, one thing we are seeing is there is a huge demand for bigger and the larger apartments. Definitely now from two and three, we may move to gradually move to three and four, and maybe then with a four bigger apartment and maybe more luxury. We are seeing there is a good traction for our, in fact, a bigger ticket size. There is more demand for three bedroom than the two bedroom. In fact, there is a lot of inquiries from people that, "Do you have four bedroom or a larger three bedroom?" Obviously now the new launches will be in line with the demand, and there is definitely a lot of demand for the villas. Although we didn't launch this time, we wanted to see the demand. Whenever now looking at the demand, we'll look at also launching the villas as well. We want to be flexible as and when looking at what kind of demand we would like to cater to that demand, but not compromising the luxury quotient of the project. Sure. Thank you. Thanks. Thanks, Prem. Thank you very much. I would now like to hand the conference over to Chairman and Managing Director, Mr. Kamal Khetan for closing comments. Sir, can you hear us? Sorry. Thank you, everybody, for attending the call. If you have any further questions and queries, you may please call us and call Mr. Prashant or our CFO, and we'll be always available for that. 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.