Ladies and gentlemen, good day, and welcome to Sunteck Realty's Earnings Conference Call for Q3 FY 2024. We have with us today Mr. Kamal Khetan, the Chairman and Managing Director of the company, Mr. Prashant Chaubey, the Chief Financial Officer, and Mr. Abhishek Shukla, the Vice President of Strategy and Investor Relations. Please note, this call will be for 30 minutes, and for the duration of the conference call, all participant lines will be in the listen-only mode. This conference is being recorded, and the transcripts 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. There is a Q&A session, and we request to restrict questions to two per participant. Should you need assistance during this conference call, please signal an operator by pressing star and then zero on your touchtone telephone. 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 strategies 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 statements. I would now like to turn the conference over to Mr. Khetan, the Chairman and Managing Director of the company. Thank you, and over to you, sir. Very good afternoon to everyone for joining us today, and thank you for taking the time to participate in our company's earnings conference call for the Q3 and nine months of the financial year 2024. On our operational performance front, we have registered a robust pre-sales of INR 1,237 crores in nine months of FY 2024, as compared to INR 1,066 crores in the same period last year, which is a growth of about 16%. Our cash inflows, including collections, stand strong at INR 940 crores during the same period. This has enabled us to almost become a net debt zero company, by further reducing our total net debt to only INR 49 crores. Our net debt to equity ratio now stands at just 0.02x. Today we have a robust and diversified pipeline of projects spanning over 50 million sq ft. We have more than doubled our GDV in less than three years, from INR 13,650 crores in FY 2022 to now INR 30,000 crores in FY 2024. We expect to maintain the same growth momentum in the coming years by once again doubling our GDV from INR 30,000 crores to INR 60,000 crores in less than three years. We have a strong foothold in MMR market, and we are taking the maximum benefit of this deep consolidation in the industry. Now, we are also expanding our annuity income business by creating the commercial portfolio at two key business districts of MMR, namely Bandra Kurla Complex and Oshiwara District Centre, with total potential capital value of INR 5,000 crore. As we now already have completed two commercial projects at BKC Junction, namely, Sunteck Icon and Sunteck BKC 51, and both these commercial projects are fully completed and which are waiting. One of which is already leased out, and second is almost will be leasing out in this quarter. With respect, and these, both these two rental assets is fetching average return of 30% on the invested capital. With respect to revenue recognition in the financial statement, I would like to reiterate that as per Ind AS, the Indian Accounting Standard, the company follows the project completion method and not the percentage completion method of accounting. Hence, to understand the financials of the company better, it is suggested that one should look at earning number on a yearly basis rather than the quarterly, quarter-on-quarter basis. In FY 2024, our project, Sunteck Maxwell, is getting completed. Similarly, in FY 2025, we will be completing Fourth Avenue, the phase of Sunteck City, in Goregaon West. However, to give you a better perspective on the financial performance, we have provided a pro forma P&L basis, the operating performance, that is, the profitability of our operations in respect of the presales in the nine month period of the current financial year. As you will observe, the EBITDA for rupees for nine months, FY 2024, would be INR 4,436 crore on presales of INR 1,237 crore, resulting in an EBITDA margin of 35%. We have been able to achieve this performance with the contribution of our highly experienced and talented team that we have built at Sunteck over the last decade, and support from our trusted investor community and other stakeholders. I will now hand over the call to Mr. Prashant Chaubey, our CFO, for more information on the earnings performance of nine months, FY 2024. Over to you, Prashant. Thank you very much, sir, and good afternoon, everyone, and welcome to the earnings call for the Q3 of financial year 2024. The financial and operational numbers have already been published on the stock exchanges. I believe all of you must have gone through the same. Let me give you some of the brief highlights of the financial performance. Our pre-sales stood at INR 1,237 crores and INR 455 crore in nine months of FY 2024 and Q3 of FY 2024, compared to INR 1,066 crores and INR 396 crores during the same period last financial year. Our cash inflows stood strong at INR 940 crores in nine months, FY 2024, and INR 438 crores in Q3 of FY 2024. We have generated an operating cash flow surplus of INR 304 crores in nine months of FY 2024. On the P&L front, the company follows project completion method of accounting and have reported a revenue of INR 138 crore and INR 42 crore in nine months of FY 2024 and Q3 of FY 2024, respectively. With this, we can now open the forum for questions from the participants. Thank you very much. Thank you. 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 withdraw yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question. In order to ensure that management is able to answer queries from all participants, kindly restrict your questions to two at a time. You may join back the queue for follow-up questions. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Pritesh Sheth from Motilal Oswal. Please go ahead. Yeah, thanks for the opportunity. First question is on the pre-sales. So, I, I, you know, understand that, Kalyan, Sunteck Crescent Park was launched this quarter, but I don't see any mention of, you know, that project contributing to, you know, pre-sales, for this quarter. So just wanted to know, you know, how has been the response and, you know, how much should we expect, you know, its contribution, from next quarter onwards? That's my first question. Hi, Pritesh, Prashant this side. So in the last quarter gone by, we have launched one tower of Kalyan Sunteck Crescent Park at the back end of the quarter, and from that, we have done a pre-sales of close to around INR 73 crore. And going forward, Pritesh, we are of the opinion that on an annual basis, we'll be able to do close to INR 250 crore to INR 300 crore of pre-sales from Kalyan every year. The INR 73 crore is included in current quarter's number, is it? Yes, Pritesh. Yes. Okay. Okay. Okay, got it. That clarifies. Secondly, on, you know, your pre-sales guidance of INR 2,000 crore for this year, we are roughly INR 750 crore kind of short of achieving that, you know, in and in Q4. So definitely, you know, we would be launching certain projects. So, you know, what are our plans of launches, you know, in this quarter? Or do we expect that ongoing inventory, whatever we have, will be, you know, taking care of that, that shortfall that we have? Yeah, Pritesh. This is Kamal Khetan. Pritesh, so we are now sort of around close to INR 750 crore for the final quarter. But if you see the last three, four financial years, fourth quarter has been the strongest always for Sunteck in terms of pre-sales, and that we are confident we'll maintain that. And because now there are six growth engine after the launch of Kalyan, so the sales, what we are doing now continuously, that also will be added on the pre-sales of this quarter, of the Kalyan launch. So that is continuous because that is not. Because it was towards the back end of the quarter, so most of the sales have also come in this quarter. So we are confident also we will be launching a project, the third tower of Mira Road, we have where we have almost exhausted our inventory, which we launched one year back, so we see now more demand in that, that micro market. Plus, we are launching one new phase in Naigaon. With all these two big launches, I think we are confident that we'll be able to achieve INR 700 crores to INR 750 crores to meet our target of INR 2,000 crores of sales. Sure. That is helpful. So I'll... I have a few more questions. I'll jump back in the queue. Thank you. Thanks, Pritesh. Thanks. Thank you. The next question is from the line of Mohit Agarwal from IIFL. Please go ahead. Yeah, thanks for the opportunity, sir. So my first question is on your business development strategy. So in your presentation, you mentioned that you are seeing multiple opportunities available in the distressed and the affordable side. So could you elaborate a bit, what are we looking at? Are there any, you know, land parcels that you're looking at? Are there any redevelopment projects? So that is my first question on the business development. So, Mohit, Kamal Khetan. So we are confident because there are projects which are already, we have, there is a clear visibility from ongoing deals, what we have done, that how we will be making, taking. We are confident that from INR 30,000 crore to take it to INR 60,000 crore. We ongoing the already acquired projects like Borivali, which we are confident that we will bring it to the GDV value, because we are seeing the clearance happening very soon, which we have not taken into consideration, which was acquired, I think, more than two years back. Now we see that happening more, happening again. We are increasing our size by acquiring adjacent plots in Nepean Sea Road. There we are -- we will almost double the GDV value in our Nepean Sea Road. Plus obviously, we are in talks with several, one or two more projects, which are towards South Mumbai, in the uber luxury segment. With all this, we are confident that we will be like for INR 30,000 crore, another adding in next thing, next three years. We are seeing clear visibility for this year, INR 10,000 crore, which will come very easily from the existing and the new projects what we are acquiring. So, just to understand this, sir, INR 10,000 crore GDV from additional area that you are acquiring in Nepean Sea Road, and the one or two more projects in South Mumbai that you are saying. Is that a correct assumption? Yes, yes. And one, we are all, like in Bandra, we are also talking one in Bandra, which will, which hopefully we'll be announcing all of this very soon, you'll see. And plus, a Borivali project, which is already acquired but not added to the GDV value because we were not certain about the approval status. Now, we are quite confident that approval will come in next few months, so we will be adding that also to the GDV value. Sir, any, any GDV or any, you know, area in terms of the Bandra project, how big this could be? And, like is it Bandra East or West? If you give me some clarity on that. I would not like to mention this on this call, very frankly. Okay, sir. Okay, okay. But no color on the GDV also, right? No, I can only tell you that it will be born. It will be more than INR 10,000 crore in this year itself. One, in one year itself. Okay. Understood, sir. My second question actually was on the Borivali project, sir. You mentioned that project is now moving, so any timeline that you can put? Can it launch within FY25? So I can only say, launching, I won't be confident that whether we'll be able to launch in FY 2025, but, we will be able to add, because as we get the main key approval, which we are expecting very soon, we are confident that we'll add that project into our portfolio, like into the GDV value, in this current financial, in the coming financial year, FY 2025, FY 2026. FY 2024, FY 2025. Sure, sir. That's very helpful. I have some more questions. I'll come back in the queue. Thank you. Thank you, Mohit. Thank you. The next question is from the line of Biplab Debbarma from Antique Stock Broking. Please go ahead. Thank you. Good afternoon, sir. Thanks for the opportunity. So, my first question is on the commercial portfolio that you are building. In that ODC, when will you commence the construction of the project, and how will it be funded, sir? Hello? Biplab, yeah. Hi. So for the commercial project. Yeah. So Biplab, yeah, commercial project, obviously, what we are looking in ODC is, you know, the land is already paid for and fully paid for, so we don't need any debt on that. And obviously, we don't have any debt on the balance sheet. We can easily take the debt. But just to next tell you, the kind of cash flow which is there from the already detailed what is done, and also when we are launching the commercial project, means we'll start the execution of the commercial project in the Fifth Avenue of Sunteck City, we'll be also launching one or two towers of residential project in the same Fifth Avenue. So those one or two towers will be... The cash flow from those two towers will be much more than the money required for the construction cost of the commercial building of the Fifth Avenue. Can you assume that in FY 2024-2025, construction will commence for commercial projects? Yes, commercial projects, as well as we are looking to also in FY 2025, we also want to launch one more tower, because we are almost now getting depleted- Yes, sir. with the inventories in ODC. So we will be launching one residential tower also in the same Fifth Avenue. Yes, sir. My second question is, you know, you have six growth engine. As the inventory gets depleted, you'll launch a new phase in each of these projects. And but in addition to these six growth engine, what will be the launch pipeline? I know, ballpark launch pipeline in the for next one year. I mean, Nepean Sea Road, you have, you have mentioned Borivali. And you have mentioned a few projects that is on the anvil. So is there any visibility in new location? What kind, which are the projects that will be launched? So new location right now, I can only tell you that, see, our growth of CAGR of what we are talking about 25% CAGR growth, which we are confident we will achieve even we just launched Nepean Sea Road, one Nepean Sea Road. As per as if you see the numbers, because of the sixth growth in the already there and the seventh is Nepean Sea Road gets added, we will easily achieve that CAGR. But I think, let's hope we can launch more projects. We are trying, obviously. I said in my last question, like, we are confident that we will be able to put Borivali in the GDV value, but we'll try our best, but we are not sure whether if we can launch Borivali West or any other project which we are acquiring or acquired, or already acquired. But here we are pretty confident about right now, Nepean Sea Road, which will at least give us a guaranteed growth of 20%-25% CAGR. Sir, one final question for final- Sorry to interrupt. We request you to please rejoin the queue for follow-up questions. Okay. Sure, sure. Thank you. The next question is from the line of Abhinav Sinha from Jefferies India. Please go ahead. Hi, sir. Couple of questions. So firstly, on the BKC, we have seen good movement now for a couple of quarters. So what do you attribute this to? And, you know, what can be the sales run rate now from here? So that's the first question. So, Abhinav, yes, great. We did already last quarter, we did two sales. This quarter, again, we have done two sales, from BKC. We are confident that, with this momentum, the way that we are seeing the inquiries picking up, in BKC, we are confident that we'll be able to maintain this momentum, and this will go on. I think this should deplete our inventory faster than what we were anticipating. Great. These are not in revenue this quarter, right? I understand. Yeah, yeah. So this should be coming in the revenue, maybe in the fourth quarter or the next year. It will come into the revenue, depending on the registration. Sure. And so second question is on the debt side. So, you know, now we are almost net cash. But I just wanted to check, with a lot of these GDV addition opportunities, what are you comfortable with here in the medium term on the, you know, debt addition of year end? So, fortunately, we know there is a huge consolidation which has happened in the industry. If we are getting the projects, Abhinav, without putting the money, or why should I just put the money and just to... I can even go with the current cash flows, the debt of even 0.25, 0.3, which can be enough money for the company for to further growth. But the cash flows are so strong, fortunately, if you ask me, today, I don't think even if I grow very exponentially and very crazily, I don't need to go above 0.2, 0.25 or 0.3. But I don't think even we'll be able to reach that kind of debt, looking at our strong cash flows. Great. Thanks and all the way. Thank you, Abhinav. Thank you. The next question is from the line of Sarang Gupta from Dwaya Asset Management. Please go ahead. Hi. Just a quick question on the GDV addition. Like, how do you think about the current market conditions? And, you know, if the market, the real estate markets have been doing well, and the listed companies have been, you know, the stocks have been performing well, sentiment as well. Do you still think that there are opportunities in this market for you to acquire projects, you know, like you have in the past, with high margins and returns? Or do you, you know, expect that the new crop of projects you're acquiring won't be as attractive as what you've done in the past? Yeah. Hi, Sarang. So current market conditions, I would say today, we are actually, if you see, Sarang, we are in stable housing loan rates. At least the rates have been stable now. Comfortable affordability, what we look at, low inventory hangovers now in MMR region. Government push towards the infrastructure growth and seeing that, government is putting too much of money into the infrastructure, especially in MMR market. Rising income levels of the people, consolidations and preference towards the reputed brands. With this, we are very, very confident that we should be able to see this as growth going forward, at least for a couple of years. In terms of acquisitions, very clearly, I think, Sarang, I mentioned in my last few questions as well, that we will be growing our GDV value from INR 30,000 crore to INR 60,000 crore in less than three years. And all this, what we are talking, without any compromising in margins, and maybe not putting too much money in the projects also. That's why, because the consolidation has become, the last few years, the consolidation has been so strong, I think we will take the maximum benefit out of that consolidation. Very helpful. Very helpful. That was, that was all I had. Thank you. Thank you, Sarang. Thanks. Thank you. The next question is from the line of Prem Khurana from Anand Rathi. Please go ahead. Yeah, thank you for taking my question, sir. ... So my first question was with respect to our partnership with IFC. Would you be able to offer any comments on, have we made any progress on that platform structure? Have we been able to identify anything? And related to this is eventually, I mean, this quarter, we sold our treasury shares, which is why the balance sheet has turned sturdier. So I mean, eventually, when I look at your balance sheet today and the way it is with your cash flow situation, it does not seem as whether you need any IFC money to be able to grow. So now when you say, I mean, we want to go from 30 to 60, would this 30 additional include IFC platform, or this is without IFC? So definitely we have IFC platform. We don't need money, but since we have signed that with IFC, we would definitely like to do at least as a good partner. It's a reputable partner, and we look at growing exponentially. And this is in the low, mid-income segment, where we can do acquisition and make our... We can buy the land and make it asset light. So that is a big strategy because we can make money from the up, from... We can make more better IRRs from the upside. So there, where we don't compromise our return on our equity, and we still make good money out there. Because the margins in lower income, lower mid-income segment is obviously margins would be lesser than the premium segment and the uber luxury segment. That helps us to maintain our margins. So that is one of the reason also, and being such a reputable partner, I think we would like to go ahead and do some put some projects in that pipeline, in that platform. We are exploring already two or three opportunities with IFC, and that, if that fits into our criteria and we are working on that, we will obviously update the market about it as well. Sure. We definitely don't need just the capital for any other further growth, which I already mentioned in my last question as well. Sure. And, sir, I mean, eventually, when you... Let's say, when you want to launch a new phase at Mira Road or Naigaon, you want to release some more inventory, how easy or difficult is it to be able to kind of configure your new offerings in a manner wherein, these new offerings do not compete with whatever is already there available? Because, I mean, when I look at, let's say, locations like Mira Road and Naigaon, and these locations are meant for certain type of offerings, right? So how easy or difficult is it to be able to kind of differentiate, your new offerings so that, I mean, the new units do not compete with the existing inventory, and you get to have contributions from our existing as well as the new launches? So, Prem, yeah, it's actually, in fact, when we have already launched the project in Naigaon, when you're talking about Naigaon, we have already launched three big, large phases. So which was first phase was Sunteck WestWorld, second phase was Sunteck MaxxWorld, and the third phase was Sunteck OneWorld. Which were almost more than 2,000 apartments in each phase. So we have a large experience of that micromarket, obviously, and we know that market, micromarket, what inventory goes faster and what inventory goes slower. So obviously, when we are launching the fourth phase, obviously we will be launching the best inventory, which will move faster. In fact, that becomes very easier. It only sometimes becomes difficult when you're launching in some new location. Although we do a lot of research and marketing research in our what will, what ticket size will sell, what sizes will sell, and what will be the fast-moving inventory. But still, when it comes to our location where we are already launched, we have enough data to understand what will sell, what will not sell. So in case of Mira Road and Naigaon, we... Mira Road already we have done, like, two, two tower ka launches. So we know what inventory has moved faster and what inventory is moving slow. So when we are launching the third tower, it becomes very easy for us to see that which the inventory which has moved faster, if we launch that inventory, that will be easier for the market to absorb. Sure, sir. Thank you. I have a few more. I'll come back with you. Thank you and all the very best. Okay. Thank you. Thanks. Thank you. We have the next question from the line of Vasudev from the Nuvama. Please go ahead. Yes, thank you for the opportunity, sir. So my first question is on the pricing front. So, so what kind of price hikes and pricing scenario are we looking at? Like, how much have we done so far? And for the new projects, what kind of premiums are we expecting to charge on the existing market prices? Yeah, Vasudev, hi, Kamal Khetan. The focus of the company is now on the sales volume, boss. Because we have good, already we have good EBITDA margins, prices have already increased in past quarters. We are now focused towards the sales volume. We are very clear in terms of price increase. We have taken same in line with the market, whatever we are selling right now. And the company's at current prices is maintaining a healthy margin. So as a result, the focus will be only on more on the volume growth than the prices. Nevertheless, when we see there is an opportunity where we can increase the price, we will always look at it. But for right now, if you ask me, we are more focused towards driving the volume than the prices. Okay, got it, sir. And I just have a few bookkeeping questions, if you can help me with unsold inventory in Naigaon, Vasai, Mira Road, and what is our current receivables and pending cost of construction against that? ... Vasudev, I'll connect with you offline, and I'll give you this data. Prashant will send it. Okay, sure. No problem. Thank you. Thank you. Ladies and gentlemen, we have the next question from the line of Pritesh Sheth from Motilal Oswal. Please go ahead. Hi. Thanks for the follow-up. Just two questions. Firstly, since you mentioned that, you know, you are looking to acquire an adjacent plot at Nepean Sea Road, will that impact the launch timeline for Nepean Sea Road project? Yeah, Pritesh, Hi, Pritesh, we are very clear that whatever we are acquiring that has nothing to do with the launch pipeline timeline for the current project. We will be launching our current project irrespective of that second project, but that second project will only add to the value of it, but it will not delay the project. That can only increase the number of floors. It will not be a separate building or something. Got it. Thanks. And second on, you know, revenue recognition that is coming up for next quarter from Maxwell. You have mentioned about the revenue potential. In terms of margins, would it be like similar, 20-odd% PAT margin that we have, you know, indicated in our presentation? And with that, you know, probably we are expecting around INR 100 crore of PAT from just that project, add to that, you know, whatever loss you are generating first nine months. So can the PAT be roughly 120-odd or 120-odd crores in, you know, for full year, FY 2024? Pritesh, the margin that we have given, this is the operational performance that includes all the segments of the company. If we are talking particularly about Sunteck Maxwell, that will give us... Our internal target for that project is 25%-30% EBITDA margin. So that is what we work it, work with there, and this is that you should do your calculations. Sure, got it. That's helpful. That's it from my side. All the best. Thank you. Thank you. Ladies and gentlemen, we will take that as the last question. I would now like to hand the conference over to the Chairman and Managing Director, Mr. Khetan, for closing comments. Over to you, sir. 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 us. We look forward to your continued support. Thank you once again for joining us today, and please be safe. Thank you once again. Thank you for taking out the time for Sunteck earnings call. You may now disconnect your lines.