Ladies and gentlemen, good day, welcome to Sunteck Realty's earnings conference call for Q3 FY 2023. We have with us today Mr. Kamal Khetan, the Chairman and Managing Director of the company, and Mr. Prashant Chaubey, the Chief Financial Officer. Please note that this call will be for 30 minutes. For the duration of this conference call, all participant lines will be in the listen-only mode. This conference is being recorded. The transcript for the same may be put up on the website of the company. After the management's discussion, there will be an opportunity for you to ask questions. There is a Q&A session. We request to restrict questions to two per participant. Should you need assistance during this conference call, please signal an operator by pressing star then zero on your touch-tone phone. Please note that this conference is being recorded. 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 business statements, plans, and strategy of the company, its future financial conditions 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 actual results, opportunities, and growth, and growth potential to differ materially and those suggested by such statements. I now will turn 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 third quarter and nine months earning call for the financial year 2023. Hope each one of you and your families are safe and healthy. In the first 9 months of 2023, we have achieved robust growth in both pre-sales and collections. This continued strong operational performance has enabled us to generate close to INR 311 crore of operating cash flow surplus, which further makes the balance sheet more stronger, taking the negligible net debt ratio from 0.19 in FY 2022 to 0.14 in nine months of FY 2023. On the cumulative basis since FY 2021, we have generated close to INR 830 crore of operating cash flow surplus. All our existing growth engines, namely Sunteck City at Goregaon West, Sunteck World at Naigaon, and Sunteck Beach Residences at Versova West, are throwing positive cash flows on sustained basis. We have been felicitated by IFC, the World Bank Group company, with EDGE Green Building pre-certification for our six ongoing projects, four residential and two commercial. Our endeavor is ensuring that the company's projects are designed sustainably as next-generation buildings keep the environment well-being at the center of its mission. I would again now like to reiterate that in the past three years, we have acquired 25.5 million sq ft across micro market of MMR, with a gross development value of INR 20,000 crore. This is our company's best-ever performance. Our endeavor is to maintain this momentum going forward. I'm very proud of the team that we have built at Sunteck in the last 15 years, and we are growing and strengthening it further. I would now hand over the call to our CFO, Mr. Prashant Chaubey, for his comments. Thereafter, I would be happy to answer your questions, if any. Over to you, Prashant. Thank you, sir. Good evening, everyone, and thank you once again for joining us today and taking out your valuable time for this conference call. 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 financial and business performance numbers. Our pre-sales grew by 12% year-on-year in Q3 of FY23 to INR 396 crore compared to INR 352 crore in Q3 of FY22. Collections grew by 13% year-on-year to INR 304 crore in Q3 of FY23 compared to INR 270 crore in Q3 of FY22. For the nine months, similarly, the pre-sales grew by 33% and the collections grew by 42% respectively. With respect to the financial highlights, we have reported a consolidated revenue of INR 314 crores in the nine months of FY23. Our operating cash flow surplus stands at INR 311 crores for nine months of FY23. 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 the 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. Requesting all the participants to restrict to two questions per participant. The first question is from the line of Adhidev Chattopadhyay from ICICI Securities. Please go ahead. Yeah. Good evening, everyone. Am I audible? Yes, I hear. Yeah. The main question is that could you just now give us on what is the upcoming launch pipeline for the next six to 12 months? Therefore, what are the sort of sales targets in terms of overall sales you're looking at over the next couple of years? Some updates on where the approvals, at what stage are we in the different projects? Thank you. Adhidev, as far as the sales numbers, I think Prashant will give you an update on the coming to the update on the approvals. I'll get on. Good evening, Adhidev. Adhidev, as in the first nine months of FY23, as you are aware, we have done a year-on-year growth of 33%. On a Compounded Annual Growth Rate basis for since FY18 till FY22, we have delivered a pre-sale growth of 22%. Going forward, our target is to deliver pre-sales growth of around 20%-30% on a compounded annual basis. That is the target of the company which it wants to achieve going forward in the coming years. In terms of launch pipeline, Adhidev, as you are aware, we have acquired 25.5 million sq ft in the last three years, which has a Gross Development Value of INR 20,000 crores. These projects include projects in Borivali West, Mira Road, Kalyan, Vasai. All these projects are going to be launched in the, out of which Vasai we have already launched in FY 2023, and in the coming financial year, in FY 2024, our endeavor is to launch Mira Road and Kalyan project. Adhidev, obviously before March 2023, we are looking to launch at least one project out of these two projects, Kalyan and Kalyan or Mira Road, at least one project. We are quite confident, and we'll do that because the approvals of both the projects are at very advanced stage. We are trying obviously both the project, but it will be too ambitious to say that both the projects will be launched before 31st March, but at least one for sure. We are doing a new activation launch of a new tower in Vasai West also. These two are the big launches, one coming from mostly Mira Road or Kalyan, and the other one, the activation of new tower in Vasai West. Okay, sir. Thank you and all the best. Thank you. Thank you. Thank you. Next question is from the line of Harshvardhan Agrawal from IDFC Asset Management. Please go ahead. Hi, sir. Trust you all are doing well. Thanks for the opportunity. Just wanted to understand, last quarter we said that we'll be achieving an INR 1,800 crores of pre-sales this year, this financial year. Looking at the run rate that we have currently, we seem to be falling short. How should we look at it? Harshvardhan, if you see our track record from last two to three years or whatever, the Q1 has been better than the Q2, sorry, Q2 has been better than Q1, and Q3 is better than Q2, and Q4 is better than Q3. Q4 which is the best quarter for always has been for Sunteck. I think we are waiting for that Q4 quarter. We are very confident, if not INR 1,800, we'll be very close to INR 1,800. Uh, so- That's because we are banking on at least one launch out of this Mira Road launch or the Kalyan launch before the March 31st. Okay. Sir, if we just were to look at the numbers of the INR 1,800 crores, we are currently at more or less within INR 1,100 crores already. What we need is INR 700 crores. What is your expectation that this new project will contribute as to what percentage of this remaining INR 700 crores? We are looking at least, approximately around INR 350 crores coming from there. Got it. Got it. Sure. Sir, one last question is, from a PPT, specifically Slide number 29. If I were to look, compare the slide from 2Q PPT versus 3Q PPT, absolutely nothing has changed in terms of numbers. Is it fair to assume that, during this quarter, there was no launch per se that was done within the existing projects also? Harsh, Prashant this side. Yeah. From the existing projects, as you are aware, last time what we had communicated is that we had already launched two projects, that is Sunteck One World and Sunteck City 4th Avenue. The higher floors of Sunteck City 4th Avenue was launched in the third quarter, and Sunteck One World, new launch, new activation was done in the third, in the third quarter, in the quarter gone by. These projects were already launched, and with new approvals, we launched new phases of these projects which were already launched. That's why the numbers have not changed. Okay. Basically, the way we should look at it is it already launched column that we have. It is when we put a number there, it's for the entire project that we put up. Correct. Correct. There, like for example, the entire Sunteck One World is there. Entire Sunteck City 4th Avenue is there. Oh, okay. Okay. That's why, although we are achieving some sales number, but it's not increasing the launched number per se. Correct, Harsh. Correct. Got it. Sir, just one last thing regarding our pre-sales target for FY 2024. What target do we have for say 2024? Harsh, as we said that, Prashant already said that we are looking at growth of 20%-30%. On a conservative side, we can assume to, from Q, FY 2023 that FY 2024 will be at least more by 20%-30% on our pre-sales number. Okay. Just if I were to quickly do the number that comes to somewhere around INR 2,300 crore-INR 2,400 crore. That's, that will be the number that we are talking about. Yes. Whatever that number is, I think we are pretty confident because the kind of acquisitions we have done, I think, Harsh, you will appreciate. Obviously, the approvals have to come. I think we are turning around the projects, we are trying our best to get the. We are putting pressures on our landlords because the approvals, we put the obligation of getting the approvals from the landlords. That is what we are doing. I think, if you look at Vasai, we turned around very fast. Again, Mira Road, if we can launch it before 31st March, I think it will be a record time. Like in less than a year, after acquisition, we have turned around the project and launched it as well. I think we are pretty confident that 20%-30% growth for the next year should be very comfortable. Sir, just if I can slip in one last question. Is again, this is regarding a Borivali project. In last quarter, we had said that we are looking to launch Borivali, Kalyan and Mira Road maybe in the next four, five months. Right now it's like 2023, 2024 we are looking to launch Mira Road and Kalyan. Is it that our Borivali project is moving to say probably after 2023 launch? Last time also we said that we will try to launch at least one or two projects minimum in this financial year. Out of which I think Vasai we already launched. Now we are out of the three project Borivali, Kalyan and Mira Road, if you ask me the way it will go, first two launches will be either Mira Road and Kalyan or Kalyan or first Kalyan and second Mira Road or Mira Road, the way the approvals are coming. Thereafter we can look at Borivali project. Thank you. A request to all the participants, please restrict to 2 questions per participant. Next question is from the line of Pritesh Sheth from Motilal Oswal. Please go ahead. Yeah, hi. Thanks for the opportunity. Just on, you know, the launches, you know, I had, I also had a similar question on Borivali, but any update on the Pen-Khopoli Project, launch? You know, we had again signed that land parcel quite some time back. Any update if you can provide? Just again reacting on the previous question, Borivali can still happen in FY 2024 or is it a FY 2025, thing? Pritesh, first I'll answer for your Borivali project. Borivali project, I would like to launch it maybe yesterday, because as we all know, that's a great land parcel. It's, it's I think one of the most best land parcel one can get it in Borivali West. Unfortunately, approvals are not in our hands. Again, even if we are trying our best, although the approvals is the obligation of the landlord, and obviously he is also looking to monetize it ASAP. We are helping him, and we are trying our best to get the approvals as early as possible. We are not looking at FY23. We should be looking as early as possible. We'll try to launch it in FY24. Okay. On Pen-Khopoli? Pen-Khopoli is I think it's a plotted development and some villas development. I think we are waiting for again, there also some small approvals. That's not a big project in terms of gross development value, if you look at it. I think we are working on it. I think once we get some clarity, I would like to comment on it. Sure, sure. just lastly, again on, launches. Any phased launches that you're planning in Naigaon or Borivali in FY 2024? Obviously, in all the projects, which are the existing projects, like let's say in Sunteck City, we will be looking at some more inventory to be launched in Sunteck City, Borivali West. Coming to Naigaon, again, we will be launching some few more towers of Sunteck One World. There are two, three towers more which have not been launched. Plus there will be a second phase of Sunteck Maxx World, which is the, as big as Sunteck Maxx World first phase. It is as good as the, again, a big launch of more than 2,000-2,500 apartments that we are looking at. Obviously, if we launch Mira Road this year, then we will be launching Kalyan next year. There are quite a big pipeline for the next year, FY 2024. I think that's how it is. In next 12, 15 months, what is the, you know, sales value that we are probably looking at launching, that could probably give us a clarity on, you know, what sort of, you know, pre-sales be able to clock? So just on, you know, the overall sales potential of the launches that you are planning. Pritesh, project to project, phase-wise launches, I think we'll have to then calculate how much exact value or if again, Prashant can give you a rough idea. We are looking at... Prashant, can you give the numbers? Hi, Pritesh. Prashant this side. Pritesh, if you go through Slide number 29, up to FY 2024, the target of the company, the goal of the company is to launch close to 7.5 million sq ft. That is the goal. If we are able to achieve 80%-90% of that, we will be easily achieving our pre-sales target of 20%-30% growth. Thank you. Pritesh, I'll request you to come back in the queue. I request all the participants, please restrict to two questions. The next question is from the line of Kunal Lakhan from CLSA India. Please go ahead. Good evening. My question was again on the slide 29. Our 20%-30% growth outlook for 2024, can it happen without, say, Borivali not getting launched or it is contingent upon Borivali getting launched in FY 2024? Also I wanted to understand what is there in others, in others of 1 million sq ft, which projects are there for FY 2024? We definitely when we are talking about 2,400, 2,300, whatever that 20%-30% growth, we are definitely not considering Borivali into it. If that happens, we will be much above the growth of 20%, 25%, 30%. In fact, we'll be crossing more than 30% growth. Conservatively, if you look, we have not even taken Borivali into the next year target. Our endeavor is definitely to get the approval for that as well and try to launch as much as possible. In other projects, like projects like Pen-Khopoli Project, some commercials, small within the existing land parcel, some retail. All those put together is the other others. Nepean Sea Road is not included in others, I'm assuming. no, not at all. Neither Nepean Sea Road is included nor our Borivali is included. Borivali is included above, right? It's shown separately. Borivali is included above, correct. not in the others. Okay. Sorry, I thought it's mentioned in. It's mentioned separately. Yes, that's fine. Sure. Kamalji, what's the status on Nepean Sea Road project, if you can highlight? very, frankly, it will be very difficult to comment the, that when at least, to launch in maybe in FY 24, it looks to be very frank, I want to be very straight. It looks difficult. We can target it maybe in FY 25. Sure. Thank you. I'll come back in the queue. Thank you. Thank you, Kunal. Thank you. Next question is from the line of Nishit Shah from Nuvama Wealth. Please go ahead. Hello. Yes. Good evening, sir. I'm relatively new to the company, so pardon my ignorance. Just a couple of questions. First on the bookkeeping side. In terms of area, I mean, can you just highlight how much area that bookings that we have received in maybe in Q3 as well as the corresponding quarter in the last year? Hi, Nishit. Prashant this side. In Q3 FY23, we have sold close to around 0.35 million sq ft. Close to 3.5 lakh sq ft, that is what we have sold. Okay? Okay. In quarter three of FY22, we have sold close to around 0.30 million sq ft. That is 3 lakh sq ft roughly. Okay, got it. The last quarter would be? Last quarter was also close to around 3 lakh sq ft, Nishit. Okay. Okay. Secondly, on the cash flows, basically if we see the first half that, in the first half we have kind of done a cash flow of say around INR 225 crores. That is our operating cash flow surplus. For the nine months it received around INR 311 crores. From the quarterly run rate in the first half we have seen a dip to around say INR 86 crores for this quarter Q3. Is there any one-off or any specific reason why is there a dip? There is a dip in the debt you mean to say? No, no. Operating cash flow. No operating cash flows, Nishit what you have to understand is that, when sir spoke about the approvals that we have, you know, we have applied for Kalyan and Mira Road. These approvals, the payment has gone from Sunteck because the landowners, we fund the landowners via loan mechanism which is interest bearing. This money. Okay. This money is going towards the payment of those. That also becomes part of your working capital changes. It is not shown as a separate item as a capital expenditure. That is why you will see that dip if I may say so. Great, sir. Got it. Those were my two questions. Thank you. Nishit it is a kind of in fact treasury management for us because obviously when we are lending to the landlords it is 14%, 15% or 16% and the cost of borrowing for Sunteck is I think close to 9% in single digit. Okay. Got it. Got it. Thank you so much. Thank you. Next question is from the line of Alpesh Thacker from Antique Stock Broking. Please go ahead. Thank you for taking my question, sir. My first question is on the BKC project. What exactly is happening there? If I'm not wrong, you know, luxury market, overall market has been doing good. Are we seeing any traction there or what is the challenge with that project? If I'm not only, there is no sale for last couple of quarters. I just want to have your view on with that project and what is the monetization plan going ahead? Sorry, there is a disturbance I think at your background. I think can you repeat the question? Yeah, sure. So my question is regarding the BKC project. Can you take it from some background where there is no noise in the background, please? Sure. My, the question is regarding the BKC project. What exactly is our monetization plan there? I see that there is a kind of slowdown in the monetization of that project, while the overall luxury market has been doing quite decent, for last, you know, one year. Just your thought on that project. Alpesh, obviously, your concern is right, I think, to a certain extent, obviously, because we have not been able to do not much sales in the last few quarters about in terms of BKC. We are aggressively trying our best to monetize the project. There is... Means we are trying the best way how we can monetize. I don't have a answer right now for that, how it will happen, when it will happen. But- Yeah. We are trying our best, I can only say that much to you. Okay. Are we seeing any, you know, inquiries or the visitations like that is tracking up or, you know, picking up, that sort? Like in last, let's say one or two quarters, like more visitations or the inquiries about this project. Any momentum there? Alpesh, I would say the inquiries have only increased and number of hot deals are quite decent number which are there. I don't want to commit anything till the time we conclude the deal. You will see some action in this current quarter and next coming quarters. I can only say that. Thank you very much. Ladies and gentlemen, we'll take that as the last question. I now hand the conference over to the Chairman and Managing Director, Mr. 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 very much. On behalf of Sunteck Realty, that concludes this conference. Thank you for joining us. You may now disconnect your lines. Thank you.