Analyzing...
MR. BIPLAB DEBBARMA - ANTIQUE STOCK BROKING LIMITED
C H O R
Page 2 of 20 Ladies and gentlemen, good morning and welcome to the Aditya Birla Real Estate Limited Q1 FY '26 Post Results Conference Call, hosted by Antique Stock Broking Limited.
As a reminder, all participant lines will remain 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 the operator by pressing “*”, then “0” on your touch- tone telephone. Please note that this conference is being recorded.
I will now hand the conference over to Mr. Biplab Debbarma from Antique Stock Broking Limited for opening remarks. Thank you and over to you.
Thank you, Ryan. Good morning, everyone, and welcome to the Q1 FY '26 Earnings Call of Aditya Birla Real Estate, hosted by Antique Stock Broking.
Please note certain statements made during this call may be forward-looking in nature and are subject to risks and uncertainties. Actual results may vary materially.
Today, we have with us the Management of the Company represented by Mr. R. K. Dalmia – Managing Director, Aditya Birla Real Estate; Mr. K.T. Jithendran – Managing Director and CEO, Birla Estates, Mr. Snehal Shah – CFO, Aditya Birla Real Estate, and Mr. Keyur Shah – CFO, Birla Estates.
Without further ado, let me hand over the call to Mr. Dalmia. Over to you, sir.
Thank you. Good morning, everyone, and welcome to the Earnings Conference Call for the 1st Quarter of the Financial Year 2026.
As many of you know, at Aditya Birla Real Estate, we are in the midst of a strategic transformation, shaping the Company into one of India's most focused and future-ready real estate platforms. Financial '25 was a landmark year in this journey. And we have entered Financial '26 with the same level of discipline and long-term ambitions.
During the 1st Quarter of Financial Year 2026, our primary focus was on execution, consolidation, and preparing for a robust launch pipeline in the quarters ahead. We began this year with the backdrop of a resilient Indian economy.
With strong microeconomics fundamentals and stable GDP growth projections, the long-term structural demand for quality real estate remained unequivocally strong. It is within this promising context that we are executing our refined strategy with a focus towards the real estate business. And therefore, we are in the process of divesting our paper business.
India's residential real estate sector is in the phase of steady growth, driven by execution excellence, product differentiation, and brand trust. The market has seen good traction, with absorption of exceeding new supply by 8.3% in Financial '25. The luxury segment continued to
Page 3 of 20 outperform, fueled by a descending domestic audience and growing interest from NRIs. Mumbai Metropolitan Region, MMR, Pune, Bengaluru, and NCR continue to remain the key market, contributing to 50% of units sold in Financial Year 2025.
As this was a quarter without any new project launches for the Company, our efforts were concentrated on driving sales momentum in our existing portfolio and ensuring strong construction progress across all sides. Consequently, our booking value for the quarter stood at Rs. 423 crores, which grew by 61% year-on-year. The area sold for the quarter grew by 327% year-on-year to 0.3 million square feet. Our collection for the quarter grew by 12% year-on-year at Rs 545 crores. This performance reflects the sustained interest in our marquee projects and underlying strength of Birla Estate's brand, even in a period of planned consolidation ahead of our next growth Phase.
One of the most notable developments during the quarter for our Company was that Birla Estate concluded a $50 million or around Rs. 420 crores investment from International Finance Corporation, IFC, a member of World Bank Group. The investment has been made in Manjri project in Pune, having approximately 3.13 million square feet saleable area, and in the Thane project with approximately 6.43 million square feet saleable area. This partnership shows a strong vote of confidence from one of the largest and highly respected global investors. The partnership also boosts our ESG credentials and supports sustainable, inclusive development.
Additionally, on the ESG front, we achieved the Bureau of Energy Efficiency certification for both Birla Aurora and Birla Centurion, recognizing our efforts to create energy-efficient, environmentally conscious development, and set a new benchmark in sustainable real estate.
On the marketing front, we increased our investment, strengthening our brand and forging a deeper connection with our customers. We raised our IPL association by becoming the principal sponsor of the Royal Challenger Bangalore, which significantly boosted brand visibility and making Birla Estate one of the most recalled real estate brands during the season.
Looking ahead, our growth trajectory is clear and well-defined. Our total portfolio now has a gross development value potential of around Rs. 70,000 crores, providing us a multi-year growth visibility. For the remainder of Financial '26, we have a robust launch pipeline with an estimated gross development value of over Rs 13,900 crores. This included much-anticipated projects such as the next Phase of our marketing Birla Niyaara Project Worli new Phases at Birla Navya in Gurgaon, and our new developments in high-growth corridors like Thane and Boisar in MMR.
With that, we can now open the floor for questions-and-answer sessions. Thank you.
Ladies and gentlemen, we will begin with the question-and-answer session. The first question comes from the line of Karan Khanna from Ambit Capital. Please go ahead.
Page 4 of 20 Thanks for the opportunity and good morning to the entire team. My first question to you, KT, if you can talk a bit about the luxury housing market in Mumbai, particularly because we have seen some signs of slowdown in the MMR luxury market. If you can also talk a bit about the Niyaara project, where we have seen Rs 360 crores of sales in the 4th Quarter and this quarter that is down to about Rs 60 crores? How are you thinking about sales velocity for the balance Rs. 2,300 crores of inventory that you have in Phase-1 and 2? And more importantly, how should one think about the launch of Niyaara Phase-3 later this year?
Yes, hi, good morning. Yes, so, Worli as a luxury market continues to be very strong, we are very bullish on this market. It's true that there have been more launches, more projects have got launched here. But I think it will be too premature to judge the demand of the market unless there is a clear launch which has happened.
As far as we are concerned, we had a strong quarter last year. And this quarter, we had a few cancellations. Otherwise, I think still there was not more than five or six units which were sold over the quarter. Actually, Q1 is a little early for the momentum to pick up. But we are very confident the number of walk-ins, the number of demands, the number of strong leads that we still have, the price which is holding, the demand for the product, etc. I think we are very confident that we will have a strong response over the year. And we are very excited and looking forward to the new phase launch, which will most probably happen in the last phase of Q3 or early Q4.
Sure, this is helpful, KT. My second question, if we look at the launch pipeline for FY '26 and beyond, the Slide 17 of the investor presentation, for the nine launches that are slated for later this year, can you give some timelines in terms of what could be the launch distribution across the three quarters for rest of FY '26?
Yes. So, most of the launches are, in fact, almost all launches are kind of pitched in Q3 and Q4, since we had a very strong launch quarter in Q4. We will be planning all these launches as per our planned calendar, it was stated to be in Q3, Q4. The good news is that for Manjri, we have already got the RERA. Our launch preparations have started. But unless we are completely ready in terms of going into the market, we will take our time. We have enough time. So, either it will be in the last quarter of Q2, but most probably in the first Phase of Q3. All the others, I can assure you, we are going well as per the track and we are pretty confident of launching all this in various months of Q3 and Q4.
Thirdly, in Slide #27 of the investor presentation where you have spoken about the estimated surplus potential from the launch projects which stands at about Rs. 7,300 crores, and you previously mentioned that the surplus potential from launch and pipeline projects would be closer to Rs. 22,000 crores. Two questions here. One, do you still expect to realize about Rs. 15,000 crores in surplus from the pipeline projects? And two, what would be the total surplus cash flow that would accrue to Birla Estates?
Page 5 of 20 Yes, I will ask Keyur to answer this question.
So, Karan, basically we have estimated the collections from already the inventory, which is sold, that is over Rs. 11,000 crores, which is the sold inventory. From the unsold inventory, we will collect around Rs. 6,000 crores. So, that is how we have estimated the collections. And after reducing all the costs pertaining to the completion of the entire project, we estimate Rs. 7,300 crores of surplus. So, that's how we have considered it. So, so this is Birla's share in the -- Yes.
And lastly in terms of BD, what's the progress here? Are you on track to achieve the Rs. 15,000 crores BD target that you had mentioned earlier?
Yes, so BD we have guided, I mean, last year, as you know, we did about Rs. 25,000 crores. We have very strong pipeline in all our regions, our targeted regions. But this whole process, as you know, it takes its own time. We have to make sure that we do the right deals and the right returns and the right market, right location, right pricing. So, we are pretty confident of doing somewhere around that, I cannot assure you it will be whether Rs. 15,000 crores or Rs. 10,000 crores or Rs. 20,000 crores, but that's what we are targeting. And we are well on course of achieving that.
Sure. That's it from my side. I will come back in the queue for any follow-ups. Thank you and all the best. Thank you, Karan.
Thank you. We take the next question from the line of Akash Gupta from Nomura. Please go Hi, sir. Hi, Akash. How are you?
Yes, I am great, sir. Thank you for the opportunity. Sir, my first question is with respect to the Sector 150 Noida project and the IHP JDA project. What is the status of those two projects? As well as the Thane approvals, where are we for these three projects?
So, as far as Noida 150 is concerned, we have not made much progress, and I am not very hopeful. We are not really counting on that. What was your second question?
The status of the IHP JDA project, Mantra Road, and as well as the Thane approvals with respect to the Thane project.
Page 6 of 20 The IHP is also going slow, unfortunately. We are hoping that there will be some progress. It's really not happened, but pretty hopeful that this will come around. So, we have not taken it in our target for launch this year. And Thane is going okay. Thane, we are gearing up for the launch.
Okay. So, even Thane, we should expect it in the third quarter? Yes. Q3.
And my second question, sir, if you can give us some visibility with respect to the third tower, Niyaara, any visibility on what type of configurations are we looking at and what type of price points we are looking at?
Akash, we are planning to do this launch in Q4 or late Q3. So, we are still in the process of firming up the pricing and the configuration. So, at the right time, we will let you know.
Okay. Thank you. That's all from my side. I will join back in the queue.
Thank you. The next question comes from the line of Dixit Doshi from Whitestone Financial Advisors Privates Limited. Please go ahead.
Yes, thanks for the opportunity. My first question is regarding the Niyaara only. So, I think net, net you said that we had some cancellation, but so net, net we are maybe around 99 or 100 flat.
So, obviously, the market looks slightly slow, but you are much more confident. So, do you have any number in mind that let's say 120, 125, 130, this much X number of flat will be sold and then only we will plan for the third phase?
Ladies and gentlemen, we have lost the line of the Management. Please stay connected while I rejoin the management. Mr. Doshi, we have the Management reconnected. If you can please repeat your question for the Management. Thank you.
Yes. So, my question was that the market looks slow in the Worli, but you are quite confident of launch. So, my question is that, do you have any number in mind where let's say 120, 130, X number of units will be sold in Tower-2, then only we will plan for Tower-3?
We have already achieved that number, Dixit. I mean, we were planning about two-thirds and then we shall move ahead, so we are around that. So, we are now fully gearing up for launching the new phase.
And my second question is, in earlier calls you have mentioned that the cost is around Rs. 25,000 in Worli. So, is it also for Tower-1 also?
All inclusive, it's an average cost for the entire over the next five, seven years. That's what it is. It includes all towers.
Page 7 of 20 It's an average cost including all towers. Okay fine, that's it.
Thank you. We take the next question from the line of Amit Srivastava from B&K Securities. Please go ahead.
Yes. Hi. Thank you for the opportunity. Sir, my question is on a launch pipeline, basically. So, if you look at for the FY '26, we have a very strong pipeline of Rs. 14,000 crores, which is going to be launched over the next six quarters. But if you look at for the future, we have a strong GDP of Rs. 44,000 crores going ahead. But a larger part of this is concentrated in Worli and Thane around Rs. 25,000 crores, which will be launched over the phased manner in multiple years. And considering that the new projects which we will sign in the next couple of quarters, that will take around one more year time to launch. So, are we getting sort of a launch pipeline in FY '27 to maintain the Rs. 14,000 crores, Rs. 15,000 crores of launch for that year?
Yes. So, to keep the momentum of growth going, we will of course keep looking for addition of new projects, but not the cost of financial discipline and returns and the brand equity, etc. So, we realize that to keep the momentum growing we need to add new projects in all locations. And we are mindful of that and we are working towards that.
So, basically, we are confident that we can launch similar kind of numbers in FY '27? That's all.
Yes, we need to add projects. We are working towards that. Only that we are being careful that we add the right projects and we take the right risk and maintain financial discipline.
Sure, sir. And in terms of the project specifics, in Bangalore we have a GDP of Rs. 3,000 crores, we sold around Rs. 800 crores plus. This quarter we have not seen much traction in that. So, have we not launched any new tower or what was the project specific update if you can give?
And any progress on our Century Bhavan development plan?
So, as far as Birla Evara is concerned, we had launched an inventory of Rs. 1,594 crores or thereabouts and we have sold about Rs. 900 crores. So, I think we can still have enough room to move ahead. As you know, there was a slowed down in the 1st Quarter in terms of picking up and all the noises around the IT industry, etc. But I think the real momentum will pick up when the festival season starts and the product is very good as the product comes up. So, we will take stock of that whether we want to launch the next few buildings that are there depending on demand consumption of the current phase. But happy to note that we have sold more than 50% of the inventory. And yes, so the rest of the inventory, we will time it accordingly. And Century Bhavan, sir?
Page 8 of 20 Century Bhavan, yes, that's planning in progress, still several options we are considering. So, the key thing is to time it with the overall market supply and also do not want to clash it with Birla Niyaara. So, that work is going on. We are in no hurry to launch that.
So, next question is basically on a very good strategic alliance which we have done with Mitsubishi. So, sir, wanted your thoughts on the long-term perspective on how he is going to play in development scale of our Company? We see it as a scalable partnership, how is it across project specific? And how are we going to prioritize the future projects because we have Mitsubishi which itself is a large partner and the way we have got IFC so have we shown these projects to Mitsubishi also , actually how it is working out?
Yes, so we have been pretty fortunate to have such good partners. Both are very, very high- profile partners. Mitsubishi globally, not only in terms of financial strength, but also in terms of real estate know-how. And IFC, of course, equally strong, financially strong, sustainability, huge focus on that. And very high in terms of feasibility of projects, checking in all the right risk requirements, etc. So, our projects have stood very high in their profile. And I think they were also, of course, IFC, we just signed it last quarter, but Mitsubishi and we are going great. They are looking forward to many more such profitable ventures.
And I think it's a very good strategy that where we are not doing JDAs, and you think there is too much concentration of capital, and we could perhaps divest it and do a proper risk management strategy for Birla Estate going forward, maintain stronger financial discipline, learn a lot from how to do large-scale business and focus on execution, etc., safety, faster construction technologies. So, it's a very win-win, good partnership that we have evolved and we are looking forward to building it further.
Okay, great, sir. And last, sir, just a clarification on our paper business sir, when can we expect the completion of the deal?
Paper deal is on track. We expect to complete this process by end of Calendar Year 2025.
Okay, sir. Thank you very much for the update.
Thank you. The next question comes from the line of Puneet from HSBC. Please go ahead.
Yes, thank you so much, sir. My first question is, if you can elaborate a bit more on what value is Mitsubishi bringing to the JV? And also, if there is a plan to do similar sort of setup in Worli as well because you guys will have land bank which is adjacent to each other. Any thoughts there?
Yes. So, Mitsubishi, of course, as I mentioned, the value is immense. We told you, when they came into the project after we have worked on this Sarjapur land quite a bit, we have worked on the risks, and they have given us an adequate and quite profitable premium there. And also, we are getting a 6% DM fee. And over and above that promote, which is also very lucrative.
More important than just the financial part, we are more interested in the strategic partnership that we are looking at them and the kind of the knowledge and experience and know-how they bring into real estate. They were almost 70, 80 years global real estate Company, $70 billion or thereabouts globally. So, very sophisticated ways of working processes, etc. What really worked with us is our transparency, processes, fair play, the legacy of the brand, etc. So, the value systems matched and therefore they were also very happy. Among several developers in India, they chose us to go ahead with.
As regards to Worli's concerned, we are not really looking at, you know, a partnership for the residential portfolio. We really do not need it. We are well established in Worli and the capital investment is not much. So, I think we are not really looking forward to partner with them in the residential part of the Worli portfolio. While we are thinking also about developing the commercial portfolio, there it could be a worthwhile exploration process or whether they would be interested and we are exploring amongst several other large institutions. Mitsubishi is also a candidate for that.
Understood. That's very helpful. And secondly, on the IFC JV, will that limit you to do projects on the affordable nature or are you free to do upper mid-income, mid-income, etc.?
As you know, none of our projects are affordable in that sense. Projects are all very aspirational, higher mid-income or premium. So, really, I think there is absolutely no such limitations.
Understood. And thirdly, if you can also talk a bit about, any new cities that you are planning to enter at this point of time?
Right now, as we see, given our management bandwidth, focus required, complexities of approvals in various cities, real estate essentially being a very regional play, RERA also differs from region to region. I think we are very happy to establish ourselves, consolidate, expand ourselves in the four cities we have chosen. They continue to be the most sought after four top cities. I think there is a lot of work for us to do here and establish ourselves. So, that call of moving into a few or expanding into more cities is a little further away. We always be looking and we are watching out, we are looking out any cities which are showing strong long-term potential. And I am sure there will be some cities which will come up and we are keeping a close watch on all of that. But at the moment, we are focused on growing ourselves and expanding ourselves in the four cities that we have chosen.
Okay, that's helpful. And lastly for Keyur, there is this rental income of Rs. 275 million which declined both Y-on-Y and Q-on-Q, so how should one think about it?
So, both our properties are fully occupied. There is one of the things for renewal was underway, so that will get normalized at the full year end.
Page 10 of 20 No worries, Puneet, our rental income is increasing, and we are at a 100% occupancy. So, absolutely no worries there, Puneet.
Yes, which is why I was surprised to see a decline here, I thought it should have been a pretty stable number.
Momentary, transitionary stage where once we are in process of renewing a rent, so there will be maybe a month or two of rent-free period, etc., But in the long term, it's only growing, yes.
Okay. And on the cancellation for Worli which you talked about, what kind of amount do you end up forfeiting? Forfeiting? Yes, if somebody cancels.
We abide by the RERA laws, whatever, 10%. Whatever the laws that is there as per RERA, we follow the RERA rules clearly. And also, as a long-term customer, this thing, we take a look at it, what kind of reasons are there for cancelling, is it very serious. So, we take a view from our long-term customer-centricity point of view.
Understood. Thank you so much and all the best.
Thank you. We take the next question from the line of Dhananjay Mishra from Sunidhi Securities. Please go ahead.
Yes, thanks for the opportunity. So, most of our launches will be coming in Q3 or later part of Q4, we have unsold inventory of close to Rs. 6,000 crores, so what kind of sales booking we are looking at in Q2 or overall FY '26?
So, I hesitate to kind of give any forward-looking guidance on this part. We will do our best and all markets are looking stable. But as you know, Dhananjay, the bulk of the real spikes come from during launches, that's where the whole excitement is. The bulk of the growth prospects will come in Q3 and Q4 when the launches happen. So, we will be really looking for our numbers to be, I mean, bulk of it will come from the launches. So, it should be similar, I mean, what we are doing currently or steady or maybe better than this, we expect Q2 should be if there is a pickup, momentum, etc., depending on overall market sentiments. But the real punch will come from the launches.
Okay. But Q2 should be much better than Q1 and overall FY '26 will be some growth on number of FY '25, right, that is the right side of the answer?
Page 11 of 20 I have in the past told you that we are not really giving you guidance where it's too short-term, too much impacted by short-term events, uncertainties, interest rates fluctuations, international news, etc. And of course, the entire approval system is subject to severe shock and uncertainties.
So, really, I would not like to do the injustice of guiding the team into something which is not very certain. So, that's why we have taken a long-term view of giving you a long-term three-year horizon where we are more sure of giving more certain guidance. So, I really do not want to kind of take you into any other direction. So, we are focused on giving a long-term growth and long- term guidance to you. Thank you, Dhananjay.
Thank you. We take the next question from the line of Mr. Biplab Debbarma from Antique Stock Broking Limited. Please go ahead.
Good morning, everyone. Sir my first question is on the IFC deal. So, on the recently announced private equity deal involving IFC, sir, it appears that the transaction has been done close to our acquisition cost. I mean, Thane is around Rs. 600 crores and Manjri is around Rs. 300 crores.
And if you see, 44% to IFC for Rs. 420 crores translated into some Rs. 950-odd crores. So, it looks like we are doing the deal close to acquisition cost. So, I mean, given that we are on the verge of receiving proceeds from the paper business divestment, what was the urgency or liquidity need to close this pay deal? And what is the strategic rationale? I mean, why did you actually do this deal? And have you received the funds from IFC already or is it still in the process? So, this is my first question, sir.
So, Biplab, before I hand over to Keyur to give you all the details of the deal, on a strategic level I just want to express to you that if you carefully look at these two deals, both the Thane deal and the Manjri deal, you would very clearly appreciate that we are not paid the full value of the land. These are both deferred land acquisitions. So, we have not really paid the value of the land.
In fact, we have paid only a part of it and that is true for both these particular projects.
Having said that, there is also a premium that we have taken in terms of warehousing interest in both these projects. So, it is not at the acquisition cost, it is a higher cost than that. But the larger and broader game is that whenever there is a kind of acquisition where concentration of capital is because of the outright, it is more than that we would look at. So, I think it is a very effective financial risk management strategy that we get a strategic partner thorough sharing the risk.
And you must understand that all of these are equity in nature. They are not any structured debt or equity in the form of a debt or something like that, it is pure equity. And the upside and downside, both are very shared proportionately. And these are not requirements for capital and capital will keep coming and going, we may have a paper discounting, a paper may go, we may get some capital, we may go to raise capital from many other sources, etc. But I think it is a good
Page 12 of 20 long-term strategy to have global partners who will also help us give a second opinion on the kind of acquisitions we are making, capital always available, and that too people who understand and willing to take the risk.
And to make these partnerships, I think, forge these partnerships really when we actually do not need them. When we actually need and we go to people to get the right thing, to get the right valuation. So, I think it's not that I looked at my 12 months or 6 months requirement and said, oh, there is a shortage of capital so let's run to somebody. These are all long-term calls taken over the next 5, 10 years, how should we grow the business, good times, bad times, etc. So, that's how we sort this out at the strategic level.
Just to add, Biplab, these transactions with both Mitsubishi and IFC take 12 to 18 months or more to conclude. So, at that time when we were initiating the discussion, there was no divestment of paper on the table. And now we have demonstrated that we have global partners who are putting their balance sheet money for 15, 20 years and we also kind of get access to their way of working. And IFC has categorized this under the green category for this particular investment. And we want to be cutting-edge in ESG, that's one of our mandates and charters because that's going to be the future. Also, we earn DM fees and promote on all the transactions.
So, in a way, it's a win-win for us. So, that's the reason why we decided to go ahead with this.
And going forward, whenever we need to access capital, these partners are readily available to put capital with us because all the heavy lifting has already been done. And now we have a platform in place which can be quickly replicated.
So, Biplab, it's a double-engine strategy. Also, it just opens up another capital avenue. Capital is never adequate. There are always opportunities where we need capital, and also, it's risk management. So, it works to us both ways very well.
So, basically, this is not just a short-term divestment for liquidity needs, it's basically a long- term strategy. You got it.
Understood. And my second question is on the upcoming launch of Tower-3, Niyaara. So, just trying to understand what would be your target customer segment? I mean, obviously, HNIs.
But I mean, are you focusing on NRIs? How much do you think like 10%, 20% would be sold to NRIs? I know you will pay by the year, but HNIs from other Indian cities or specific offshore geographies like Gulf, UK, North America.
I am asking this question given that significant competing supply are there in the Worli market, all by leading developers. And you may be aware of them, many of them are listed also. So, just trying to understand how do you intend to position Niyaara and how do you intend to differentiate? And what would be the target audience? Because it's very important for us, for
Page 13 of 20 Birla Estate and that Niyaara third tower to do as well as Tower-1 and Tower-2 did. Yes, sir. That's my second question.
Yes. So, Biplab, if you may allow me, I know Niyaara has already created a very strong position in the market. Irrespective of time, over the last few years, it has firmly established itself as one of the most premium developments based on the design, based on the brand equity, based on the investment we have done in understanding our consumers and positioning it accordingly.
And more importantly, on the size of the project, the plot size itself. I do not think, however, marquee developers are around, with all due respect to all of them, they have the advantage of such a fantastic location and the size of the location. So, that plays very heavily as a heavy advantage to us. So, we are not really concerned about positioning or repositioning Niyaara.
Niyaara is very firmly positioned primarily by these qualities which I mentioned, which I think is hard for anybody else to replicate, because they do not have what we have.
Having said that, from tower to tower, of course, there will be tweaking and amendments, etc., depending on the short term or the current market ups and downs, demand supply gap, etc. So, that we are carefully tuning it so that not primarily, in the long term I think everything will get sold. I mean, the product is so good and so premium positioned, but largely from maximizing the off take at the launch time. So, with that, we are working in progress. Of course, it will be slightly different from Tower-B, different from Tower-A. We are trying to bring out some things. Too early for us to disclose it today.
And the market, of course, like what happened in the past, will be heavily from the South Mumbai, coupled by the large Indian cities, the mofussil cities of Maharashtra, and like it has happened in the past from the Middle East, Singapore, UK, US, we have had a pretty strong 20- plus-percent demand from all these sectors. So, I think that demand will continue.
Great. And, sir, that question, have we received the funds from IFC already, that Rs. 420-odd crores? Yes, we have received everything. Thank you, sir. The funds were received in July.
Okay. In July. Okay. Fine. Thank you, sir. Thank you. All the best.
Thank you. We take the next question from the line of Himanshu Javel, an investor. Please go
Page 14 of 20 Yes. Hi. So, I wanted to ask, there is a lot of redevelopments happening around the Mumbai, as you are aware. So, what are your views three to five years down the line? Do you think the excessive supply of redevelopment will be affecting our long term plans for the Company? In terms of supply, I am talking.
Yes, very valid. I think the way forward for the development of Mumbai will be substantially skewed towards redevelopment. Redevelopment has its pros and cons. But as you know, Mumbai, there is hardly any industrial land available. Most of that got consumed. The last few are up for taking. And buildings have got old if you look at South Bombay and other major parts of the island city and even now the suburbs.
So, I think redevelopment is a very strong phenomenon and it has to be addressed. And we also believe that we should have presence there and we should create a niche there. We are working towards it. We have a dedicated team looking at the opportunities. And I think the biggest advantage we have as a brand is the trust, because redevelopment largely works on trust.
Families move out of their societies, out of their plots, trusting and giving to the developer, hoping that the developer will get them back to their plot within a reasonable amount of time.
So, I think, we have a huge advantage there and we are working towards creating a strong presence in that market, taking a strong market share. Of course, the ticket sizes would be small, but I think it can quickly scale up by the number of projects. So, we consider that as an essential part of our future bidding strategy for Mumbai.
Sir, are we looking at some big redevelopment projects for the Company?
We are. We are. We are very aggressively looking at adding some projects through that channel. Okay. That's it from my side. Thank you, Himanshu.
We take the next question from the line of Akash Gupta from Nomura. Please go ahead.
Thank you for the opportunity again. So, sir, my question was regarding to build up Punya. I think this year we are planning to launch roughly Rs. 20 billion of GDV here. I think we already have RERA approval for this one, so what is the reason for holding this project?
Akash, we had the RERA for the first phase. And after that, remember, last year we could launch only a small part of the inventory because of some changes in rules. We need another fire service floor above the 17th floor, etc. So, we could launch only till 16 floors. Now we are gearing up.
We need a new RERA, some free NOCs, etc., which all we have covered. We have got environmental clearance also. We are awaiting the RERA. And then we will launch a big tranche this year.
Page 15 of 20 Got it. Got it. And, sir, I just wanted to understand on the cash flow situation. So, how should we look at the year-end net debt for the Company?
So, Akash, from the way the cash flows are, we are expecting very strong cash flows from our booking collections. As we have always been saying, our outflows are lesser than our collections.
So, from an overall operating level, we will be cash surplus, including after the debt servicing, which is planned to be done. So, we will be cash surplus from that perspective. Further, the proceeds from the sale of business also will kind of help us from our overall cash flow position.
So, we are very, very comfortably placed from our cash flow position.
Okay. And, sir, just wanted to understand, like, are we waiting for this proceeds from this ITC deal to come in and then we go for a lot of BDs? Is that how we should think about it?
Akash, Snehal here, that is not the case. We are not waiting. We have sufficient scope to borrow additional money without affecting our debt-equity ratio significantly. So, that capability we have. As Keyur mentioned, first of all, there will be some cash surplus coming from the real estate business, which will be first used for the BD. And if there is any additional capital required, we are quite in a good position to borrow extra to meet that requirement. So, it is not that we are seriously waiting for the paper deal. Paper deal, when it happens, it will only help us reduce our debt. That's all.
Got it, sir. That's it from my side. Thank you.
Thank you. We do have follow-up questions from the line of Himanshu Javel, an investor. Please go ahead.
Yes, KT. So, I was essentially looking for the Prabhadevi project, the Century Bhavan I think.
So, I wanted your views on that, what are your long-term plans? Because as you know the Oberoi 360 has done extremely well in terms of premium project housing, so what are our plans for the project?
I do apologize to interrupt you, Himanshu. We have lost the line of the Management. Please reconnected while I rejoin the Management. Thank you for your patience. Himanshu, we have the line of the Management reconnected. Please proceed with your question.
Yes. Hi, KT. So, I wanted your views on the Prabhadevi Century Bhavan project. As you know, the Oberoi 360 project has done extremely well, so what is our long-term plan for that particular project? Are we looking at the same kind of premium project? Because it's an extremely prime location for the Company.
Yes. So, we do not have any plans right now for that project. It's not in our short-term plans. We will look at it at the right time.
Page 16 of 20 Okay. And the investor presentation is showing the Worli, new plot is the one which we bought recently, right? Right.
And there's a small plot showing the Worli West project, that's a small one? Yes, that's about 3.5 acres. That's not part of the diagram. That's not part of the Niyaara, right? Yes, that's not part of the Niyaara.
That is not part of the map that is there. It is not in the map that we have presented.
Okay. And what are the particular places where we are looking for the BDs in this financial year, particularly Mumbai, etc.?
Mumbai is very strong focus. NCR, both Noida, Bangalore and Pune.
And KT, your views on the NCR region? Because I was reading some articles, a lot of supply is coming in for NCR, and the pricing also is looking very, very, you know, the prices have gone up very sharply in the last three, four years. So, your views on that?
So, see, what I see is that, the right location pricing, the right pricing is very important. If you overprice in a location, then there's a good chance a project may not really take off, which has happened enough, I think, for a few projects recently. So, I think right pricing, right location, strong brand, absolutely the right design, I think understanding your consumer, all those factors, if you get it all right, I think there have been extremely successful launches, as you would have noticed in the last quarter, with strong brands. So, I think if you read the market right, I think there is enough and more opportunities. And we are pretty bullish on that market.
Thank you, KT. And good luck for the future. Thank you.
Thank you. We take the next question from the line of Rahil from Crown Capital. Please go Hello. Good morning. Sir, have you given any presales and collections guidance for this year, FY '26?
Page 17 of 20 No, I think I already mentioned, we are not giving any guidance. We are more focused on the long term. Can you hear us? We are not giving any annual guidance for this year, because it really doesn't make sense, given so many uncertainties and approvals, etc. We are rather happy giving you our long term three year guidance, which we have guided you for an annual sales of Rs. 15,000 crores, in no particular order. So, it will be more back-ended. So, that's the best I can sort of give a direction today.
This Rs. 15,000 crores by when? Sorry, your voice was dropping.
In three years' time. For the next three years, yes, annual sales.
Got it, got it. And this collection, which you have mentioned, the surplus in your presentation by when, like, what timeline will they come in for the Company?
Yes. So, we have already started getting enough and more collect surpluses. It started from last year. We have amped it up this year. And it will continue to have more and more surplus as we go on. We already had a surplus, a pretty reasonably healthy surplus this year, by the time we end this year. And we expect that to keep growing, the gap year on year.
Okay, fine. Got it. Thank you and all the best.
Thank you. We take the next question from the line of Isha Shah from Nirzar Enterprises. Please go ahead.
Hello, sir. Sir, my question is, how are we moving in terms of execution across all the projects? Like, is it going as per our timeline?
Yes. So, I think the most key focus as a Company we do is on getting projects on time with primary focus in safety, quality, timelines, and within the budget. So, far, I am very happy and proud to say that all our projects are as per our timelines.
Okay. Thank you, sir. That was from my side.
Thank you. We take the next question from the line of Sujit Jain from Bajaj Life Insurance. Please go ahead.
Yes. Thank you. I hope I am audible. My question is, I think sales has been an issue, at least for this quarter for us. Others have also reported people like Oberoi etc. And luxury segment, it looks like in terms of pre-sales is under pressure. And when we hear commentary from housing finance companies also, yesterday one of the largest has also spoken about soft real estate market. So, in this scenario, how do you ensure that rather than reacting to a potential slowdown in sales, proactively you kind of get your pre-sales going?
Page 18 of 20 So, Sujit, if you would have noticed the trend, likely the real surge in sales happens during the launches and bulk of the inventory gets absorbed during the launches. So, it's really hard to judge any kind of trends when there are no launches. Again, I know the markets, and speaking for ourselves, most of the markets that we are representing, there is hardly any offtake of housing finance. It's not much. It's less than 50% or much lower than that. Having said that, I would not say our pre-sales has been far below expectations, it's been more or less as we had expected.
Because of the huge absorption in Q4, bulk of our inventory had got absorbed. So, there was a lack of good inventory because there were no launches. And because of the very strong absorption of Q4, we are left with very poor relative inventory in Q1. So, I would not say that there is a reflection of the market at all. I think market is still going good for the right brand, as I mentioned in the past, for the right location, right pricing.
If you get carried away and do overpricing, yes, then there is a risk of poor response. So, I think we are very prepared, and we are very positive of the market, the segments in which we are in.
We look forward to a very resilient future real estate in the next nine months. I think the festival season is also going to really pump-up demand. There is a lot of new launches coming at the right locations. And if you design the product right, price it right, I think there is no cause for worry. The overall macroeconomic demand supply positions are very strong, and we expect that to continue for a few more years.
I get that. But when I look at, and you can correct me on these numbers, Niyaara, you have Phase-2 and Phase-1 put together roughly Rs. 2,400 crores of inventory to be sold.
So, if I look at, I am looking at selling this inventory as per our strategy closer to possession. If you look at Tower-1, out of 414, we have already sold more than 400 apartments. So, I am not really pushing, as you can imagine. So, if you sold more than 90% and these are very leftover inventory, we are not really looking at pushing or selling these things. So, you have to contextualize it in the right thing.
As far as Niyaara-2 is concerned, we almost sold about 99 out of 148. And we are not really pushing it because the bulk of the inventory is gone and there has been a huge uptake in Q4. We still sold a sizable one in Q1. We had a few cancellations because of some long-term pending issues for some of the customers. And there is so much demand coming in, so much inquiry coming, strong leads, so I am not really Sujit, worried about lack of demand. Demand is very much there.
Sure. Just on pre-sales, while you are not guiding, as you said, is it safe to assume that you will exceed what you did in FY '25, and by a decent margin? It has to be strong, like you said.
Exactly. So, you are basically trying to put words in my mouth. I cannot say that. So, I will refrain from giving you any sort of guidance of that sort. I maintain my position that we are
Page 19 of 20 looking at a larger long-term view. Rs. 15,000 crores per annum is what we are looking at. And it's not going to be a straight line.
Directionally, would the pre-sales be strong this year as well, that is what we are trying to figure.
Yes. Once the launches come up, I think it's going to be very strong. We have got Rs. 13,000 crores plus of launches coming. So, very, very excited and looking towards that. Okay, perfect. All the best.
Thank you. We do have follow-up questions from the line of Mr. Biplab Debbarma from Antique Stock Broking Limited. Please go ahead.
Sir, two quick questions. One is on the paper business divestment. I was under the impression that the deal would be closed in this quarter, I mean July-August. But now it looks the deal would be closed towards the end of the Calendar Year 2025. So, could you clarify if there is any risk or uncertainty around the deal not closing as planned?
No, there are no uncertainties. And the deal is on track. And we expect to complete by the end of this Calendar Year 2025.
Okay, sir. And second question is on the payment; land-related payment is still pending for Manjri and Thane projects. How much we have paid or how much are still pending in Manjri and Thane both, how much do we have to pay?
In Thane, the payment has already been made. And with the IFC funding coming in, there is no further payment which we have to contribute to.
I mean, land payment is pending but that will come from that part of it.
Yes, but we do not need to contribute as in Birla Estates point of view. Our commitment is already fully made.
Okay, that's all. Thank you. All the best.
Thank you. Ladies and gentlemen, there are no further questions from the participants. I now hand the conference over to the management for their closing comments.
Thank you all for participating in this Earnings ConCall. If you have any further questions or would like to know more about the Company, please reach out to our IR managers at Valorem Advisor. Thank you for your interest in our Company. Thank you.
Page 20 of 20 Thank you. On behalf of Antique Stock Broking Limited, that concludes this conference. Thank you for joining us. And you may now disconnect your lines.