Signatureglobal (India) Ltd

) SIGNATURE™ )GI,QBAL )

Ladies and gentlemen, good day and welcome to Signature Global (India) Limited Q3 FY24 Earmings Conference Call hosted by ICICI Securities. As a reminder, all paticipants' lines will be in the listen-only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star then zero on your touchtone telephone. Please note that this conference is being recorded.

I now hand the conference over to Mr. Adhidev Chattopadhyay from ICICI Sceuities. Thank you and over to you, sir.

Good morning everyone. On behalfof ICICI Securities, I'd like to welcome you to the Signature Global India Q3 FY24 Results Call. Today, from the management we have with us, Mr. Pradecp Kumar Aggarwal, the Chairman and Whole-Time Dircctor, M. Lalit Kumar Aggarwal, the Vice Chairman and Whole-Time Director, M. Ravi Aggarwal, Managing Director, Mr. Devender Aggarwal, the Joint Managing Director and Whole-Time Director, and Mr. Rajat Kathuria, the Chief Exceutive Officer and the rest of the team.

Id now like to hand over the call to the management for their opening remarks. Over to you.

Thanks, Adhidev. Good moming everyone. Welcome to the camings conference call for Signature Global, covering the third quarter and nine months ended 31st December, 2023, We hope that you have had a chance to review the company's financial performance deails for Q3, press release and investor presentation available on our website and stock exchanges. Lets understand some macro aspects of the India cconomy first. The government's ambitious goal of transforming India into a Viksit Bharat by 2047 is prepared to create a conducive environment for the expansion of the overall ceonomy and the real estate sector as well.

The third quarter saw a positive shift in investment sentiment as the nation continued its step towards becoming an cconomic powerhouse notable prior to the upcoming clections. Even in the recent interim budget, the Finance Minister highlighted the government's commitment towards the home ownership of the middle class. In her speech, her budget specch, the cffort stated a housing scheme would be announced soon targeting the middle class, extending to those living in rented houses with the aim of enabling the construction or purchase their own homes.

This initiative is expected to further boost the middle income housing and affordable housing scctor. Morcover, with the cconomic seenario improving and the average real income of the individual with a 50% increase, optimistic expectations abound for the real sstate sector to thrive across all segments. In a favorable development to the government, fimm focus is on infrastructure development reflccted in the 11.1% increase in the expenditure for the infrastructure in the interim budget.

Impressively, the country's growth for the last quarter exceeded expectations, clocking in the 7.6% The robust performance led the Intemational Montary Fund to upwardly revise India's GDP forecast for both FY24 and FY25. The Reserve Bank of India recently approved a revision Page 2 of 9

of the forecast to 7% for the fiscal year 2024, assuring that India remains a shining flame in the fast-changing global cconomic landscape. This foundation of the cconomy's stability and growth is further proved by the robust performance of the Indian real estate market.

Gurugram stands out as a dynamic real estate matket, especially in the NCR, contributing significantly to the residential supply. According to the latest Magic Brick report, Gurugram has experienced a remarkable 43% growth in its average real estate rate over the last cight quarters.

This substantial increase not only reflects the market strength but also points out its sustained and robust nature.

Millennium City witnessed a remarkable 13.8% quarter-on-quarter rise in the last quarter, advocating Gurugram's key role in the NCR real estate sector. In the current cconomic scenario, Signature Global is strategically positioned to leverage the unfolding opportunitics. Our track record includes steadily achicving operational milestones in recent years. We were dedicated to sustain this momentum in the coming quarter. The company has delivered over 8 million square fect and our ongoing projects arc around 17 million square fect. Signature Globals forthcoming projects are over 28 million square fect, mainly focusing on mid-income housing Moving on to the financial and operational performance of the company, Signature Global achicved best ever nine-month FY'24 pre-sale performance with a reported growth of 414%.

The realization of the period also grew 30.7% to INR9,800 per square fect, significantly encouraging company profitability. Strong pre-sales and realization mumbers added our company to have a net profit of INR21.8 million against the losses in the carlicr quarters. This is a significant milestone for the company.

We believe the robust housing demand from Gurugram or subutbs, which are the focus of our operations, would help s to continuously delivering value to our sharcholders, investors and customers. Thank you for your attention and we look forward to your continued support and engagement.

Iwill now hand over to our CEO, Mr. Rajat Kathuria, for sharing financial performance in detail.

Hi. Good morning, everyone. Thanks a lot for joining us this Monday momning, first thing.

Thanks a lot. And Il like to go a little decper into some of the key operational and financial aspects and then happy to take up any questions. So, pre-sales tend to be good.

I think we are going through a fairly good phase wherein a lot of supply which is being created by the company is getting absorbed at a fairly comfortable pace and this is happening across our portfolio of projects.

So, stepping back a littl, if we really look at our sales growth over the last two years, we grew from about INR1,600-0dd crores of sales which was done back in fiscal year'21. We doubled it Page 3 of 9

)y BLOBAL — by fiscal year '23. We took it up to about INR3,400-0dd crores. And this year also we took up a target to achieve about INR4,500-0dd crores which is about 30% higher than the previous year.

So, by and large we are fairly comfortable in stating that we stick to that guidance and we look fairly comfortable in achievingit. So, if you look at the first nine months itsclf, we have crossed INR3,100-0dd crores of sales. This is about 70% of the anmual target.

Breaking it down a lttle further, we sold about 3,100-0dd — 3,135 units of homes or retail shops which averaged about INRI crore each. So, very much playing that mid-income theme across our portfolio of projccts. So, for about INR3,100-odd crores of pre-sales, we sold roughly similar number of units.

So, sales have been good. This was deconcentrated. So, if I look at the projects, we made these sales across six or seven of our projects. Top six projects contributed more than 80% of the sales.

And it's kind of a comfortable run at various locations or micro-markets within Gurugram.

If we look at the geography, most of these sales came from the Gurugram region. About 95% of the sales were done in the Gurugram region. About 5% came from the Sohna region. And as this entire ninc-month block, we clocked a growth of almost 41% over the previous year which is quite staggering sort of a growth number.

So, our intent remains the same on a forthcoming project basis that we continue to do mid- income housing, play across the spectrum, these homes which are in INR1 crore to INR3 crores sort of range and actoss various micro-matkets, we intend to sell similar sort of products only.

As far as collections are concerned, I think they were also faitly robust, We clocked more than 2,100 odd crores of collections during the first nine months.

This was more than a 50% rise in collections over the same period past year. And we are in a fairly comfortable position to achieve our annual guidance of about INR2,000-0dd crores of operating cash flows. We've already done about 72%. Both sales and collections are growing on quartet-on-quarter basis. So, one, there is an annual increase and sccond, there's a quarter-on- quarter increase which shows like a systemic change in the housing market on a continuous basis. We are sceing an uptrend in both of these key business parameters.

Also, to add on, as a thumb rule, we've witnessed about an operating surplus being created in the company which is about roughly 35% of the operating cash flows. So, even during this nine- month period, we achieved about 36% operating surplus of about INR756 crores. This is the operating surplus which is available for cither growth or distribution purposes. But this somchorw, it's more of a thumb rule, but it tends to be in this range of 35%-0dd even in the previous period.

If we jump on to the portfolio, the way it stands and so the on-going portfolio, as Pradeep ji mentioned, is at about 17-0dd million square foot of which about 30% is in the AHP category, the affordable homes category, and about 70% is in the mid-income category. So, while we've Page 4 of 9

)y BLOBAL — pivoted a lttle more towards mid-income, but these are projects which we arc completing and we are very hopefil of completing them in the rightful timeline.

So, this 17 million square foot is under development. Almost 90% of this on-going portfolio is already sold out. The balance 10% is being sold at a fairly good pace. And in terms of completion, this should get completed by quarter ending March 2026, Two months catlier or Inter is something which we can't predict with absolute precision at this stage. But, our guidance and our endeavour is that we complete entire portfolio, the entire block by March 2026.

This block of 17 million square foot has a revenue potential of INR12,000 crores. So, which means substantial collections and even more revenue recognition, since it's done on a completed contract basis should happen by March 2026. So, that's on the on-going portfolio. But if we talk of the fortheoming portfolio, which is more exciting, this is almost now stands at about 28.4 million square foot.

The portfolio gives us cnough comfort and inventory to grow at a good pace over the next few years to come. I I was to break down this forthcoming portfolio of about 28-0dd million square foot, bulk of it is in our three prime strategic locations. Sector 71, which is on the southern peripheral road is the most strategic and the most prime location within our portfolio, in which now we have 12 million square foot.

A Dot of you who are seeing us over the last one or two years we've been talking about this acquisition, but we reported a couple of joint development agreements getting registered last week. So, this entire 12 million square foot is majorly owned by us. And there is a small portion, which is now held in the form of JDAs, is all, is almost kind of now coming towards the completion.

Besides that, we have about close to 7 million square foot, which is in the Sohna belt, Sohna clevated coridor, which we usually use itin owr sort of communications. That's another strategic location where we've been selling a lot of products in the past. And about 3 million odd square foot is on the northem peripheral road, which is the Dwarka Expressway cxpested to be flagged off sometime soon, the Gurgaon portion of it.

So, if you add up these three primary locations of the company, 12 million in sector 71, about 7 odd million in Sohna clevated corridor and about 3 million on the Dwarka Expressway adds up o a little more than 22 million square foot. The balance 6 million square foot is held across multiple locations. And that's also in our core arca, which is the Gurgaon and Sohna and nearby regions.

Ifwe look at the GMV for this entire portfolio that will be upwards of INR35,000 or INR40,000 crores. So, that gives us a lot of comfort that on a continuous basis for the next three to four years, we'll continue to create more supply. And we are fairly hopeful that the upward trend in the housing market is here to stay. So, we arc fairly comfortable with our land position in the land inventory, so to say, in the company at this point in time. Page 5 of 9

As far as completions are concerned, we expect a lot of completions to take place during this coming calendar year. On the basis of the completions which happencd over this nine month, there arc a couple of interesting points to be noted. So, we completed, we recognize a revenue of about INR519 odd crores, in which 60% of the recognition has come from the mid-income projects, mid-income housing projects, and about 40% has come from affordable homes.

On a weighted average basis, we've reported an adjusted gross margin of about close to 32%- odd. Margins on the mid-income side are - so if you look at the trend, as we are doing more completions on the mid-income side as the proportion of mid-income completions is improving, our gross margin percentages are going up, because on the mid-ncome side, the margins tend to be good. Or rather, I would say better. However, AHP also is profitable, and our GP margins have usually varied in that 23% to 24%-0dd level, whercas on the mid-income side, they've tend to cross 35% in the past.

Also to add on, while we arc witnessing all of this growth, both on sales, collcetions, we've managed to put together a fairly robust sort of forthcoming inventory on the land side. We've stayed fairly disciplined on the debt aspect of the balance shect. So our net debt is above just INR840-0dd crores. This stays within our guidance that we will keep our net debt lower than 1x of the operating surplus. So within nine months itsclf, we've created an operating surplus of about INR756-0dd crores. The net debt as of today stands at about INR843 crores.

During this ninc-month period, we've done a fair bit of investment on the land side. And hence, nct debt rumber has gone up a lttle, but that's because a lot of investments have gone in sector 71 primarily, which is going to be a strategic location for us on a going forward basis. Just to add on, as an estimate, if we were to talk of this INR3,100-0dd crores of sales which the company has done, we anticipate that, the embedded or implicit EBITDA margin on this, sales which has been done is upwards of 30%.

As per our estimates, if's actually closer to 32% of embedded EBITDA, which we are caming on these sales. And while Iagre that accounting tends to be, a little confusing to me personally, but yes, I think if you, look at our estimates on the embedded EBITDA being camed on the sales, or if you look at the operating surplus, which is almost stands at about, 35% of collections, which is again about INR756-0dd crores, these two parameters or yardsticks, are critical for understanding, development company, which uses complete contract method of accounting. So with that, I would broadly, leave it to the floor for any questions.

Thank you very much. We will now begin the question and answer session. The first question is from the line of Mr. Adhidev Chattopadhyay from ICICI Securities. Please go ahead.

Yes, thank you. You could just tell us about the upcoming launches which are planning around Dwatka Expressway and especially on sector 71. If you could give us a flavour of what are the sort of ticket sizes and what sort of product and what is going to be a sales strategy for these projects? And also how would you want to phase out these launches? That is the first question. Page 6 of 9

Rajat Kathur So, Adhider, thanks for the question. So, our next two launches are of group housing projects.

The first one in line is on the Northern Peripheral Road. This is about 2.7 million square foot of group housing being launched. We are just awaiting the final stage approvals before we launch this project. As you arc aware that, we have a massive sort of, distribution at play. There are hundreds of channel partners who arc associated with us and there’s almost like 150, sales ‘members which are within the company. So, with this massive sort of, sales sort of distribution strength, we are fairly confident of a good response and a good outreach, of these projects. So, that's the first project which is going to come up sometime soon.

Immediately thereafter, we are readying our seeond project which is on the, Southern Peripheral Road in sector 71. This is again going to be another group housing project to be launched by the company.

Sure. And also, in the beginning, Pradecpii in is offering remarks alluded to the Gurgaon market and how it is now pretty hot. Do you also help us understand the recent infrastructure developments or the infrastructure which is going to come up in various bels in that arca? How it will or maybe already has had a positive impact on the property prices in and around that arca?

If you could just help us understand that.

Aditya, cffectively, if you look at the entire last decads, Gurgaon has really scen lot of changes both in terms of physical and social infrastructure. If you talk of the physical infrastructure, there have been good sort of, highway development which has been driven a lot by NHAL and the local authorities.

So, whether if's the, you know, Golf Course Road or the Sohna Elevated Corridor or, you know, this new elevated, you know, Dwarka Expressway which is now getting opencd and so many other sort of, interlinkages between these highways, have happencd.

So, that's on the hard infrastructure side. But more importantly, a lot of growth has happened on the social infrastructure. So, whether it be the best in class, schools in the entire NCR region or healtheare facilities or retail spos.

So that's whats created lot of buzz around Gurgaon and has prompted lot of peaple especially from Delhi or South Delhi or affluent places in Delhi to move towards Gurgaon. In parallel, if you really look at the housing growth over the last deeade, cnough homes weren' buik, you know, in Gurgaon to the extent that demand got created. So, that's why, because of this why we sce some sort of sudden price jump which has happened over the coming few years, we feel that demand will stay robust Supply should be better than what it was over the last five to scven years. But still prices may 20 up but at a more moderate pace. But I think Gurgaon now stands out clearly as a preferred sort of, you know, location in the entire Delhi NCR region for a lot of familics while it tends to be a personal decision. But for a lot of families, you know, it quite a sort of preferred location to stay. Page 7 of 9

Sure, sure. Thank you. That was very helpful. I'l come back if there are more questions. Thank you.

Thank you very much. The next question is from the line of Prem Khurana from Anand Rathi, Shares and Stock Brokers. Please go ahcad.

Good morning, sir. Thanks for taking my questions. So, I have two questions. One was, I think in your opening remarks, somebody mentioned that the prices would have gone up by another 46%-0dd over the last 7, 8-0dd quarters, which appears to be, I mean, I think on the basis of it appears to be very, very sharp jump we've seen over the last 7, 8 quarters.

So, given the fact that you expect the price o appreciate even further, I mean, do you see a risk where there could be a situation wherein some of these end users start fecling that they're already being priced out and it is no more affordable? Because I think this entire recovery in the cycle side, because of the fact that its a comveyor bel, if's a comer...

Prem sir, sorry to distutb you. Your audio is not that clear. Is it better now?

Sir, its echo. Can you use your hands-free device? Yes, sir, it's now.

Ithink if you could share your thoughts on, T mean, whether there's a risk of the end users start thinking about only seeing 45%, 46% of price growth, and then ther's this perception that the prices will keep on rising. And since the entire, [inaudible] because of the fact that people started fecling that it's become affordable, because wages have gone up and the prices have not been able to keep up with the wage inflation. And you feel that it is possible to be able to buy a residential unit today. How do you see the price appreciation in the recent past?

So, Prem, that's a good question. And the ideal way to look at this price increase or the way we look at itis that while in last 6 to 8 quarters, the prices have riscn significantly. But if you look at almost like, 4 to 6 years prior to this block period you'l find that prices were almost stagnated.

So it has so happened that, this re-rating has happened, in terms of capital valucs after a reasonable time. But if you look at, prices over the last six to seven years, the rise is kind of moderate only.

Talking of affordability, yes, if you talk of now prime areas within Gurgaon, it is more expensive. And with prices going up, needless to say that, yes, it is less affordable than what it was two years ago. But what has also happened is that, with this infrastructure developments happening, there are new arcas of inhabitation or, choices which are being opted by customers who want more affordable homes.

And a perfect example of that would be, let's say, the Sona Corridor. So while it s called, Sona as a separate, subsidy, but if's just on the periphery of Gurgaon, with the Sona Elevated Corridor, you can actually, do like a 12 to 15 minute ride and be into, prime areas of Gurgaon with lots of, IT offices. Page 8 of 9

We still continue to sell homes at these locations which are mid-income with all sort of, good specs at roughly about a crore per unit. So, or INR90 lakhs or less than a INR1 crore as well. So point is, if somecone wants more affordable homes, yes, there arc options available. They wort be at the prime locations, but there are still options which are within a drivable distance of the, city center. Oh, Prem s, you're ot audible. Hello. Yes, sir. Please go ahead. 1 think you shared it, wherein I mean, you don't intend to kind of Iet the debt go beyond one time.

Prem sir, there is some disconnection from your end.

So, Prem, while we can't hear you, you can email us your query. And, we've done a bit of, more detailed analysis of the cash which was created and the way it was spent, during the year. In our presentation, you could refer to that. It clearly shows on how, we've collected almost close to about INR2100 odd crores of, cash, the way the surplus was about INR756 odd crores. And how we've, spent the surplus and the IPO proceeds, and how that has impacted the debt level.

With current level of our ongoing and fortheoming inventory, we feel that leverage levels are, fairly, disciplined. And on a going forward basis, we are going to stay cautious that this stays within sort of very disciplined levels. And at some stage, we would want to bring cven our net debt to a zero level for which, we'll talk more in times to come. But we are very cautious of the debt level in the company. Thank you very much. As there are no further questions, I would now like to hand the conference over to the management for closing comments.

So, thanks everyone again. I think thanks for taking out time Monday morning. Mondays tend to be very disorienting for me because of random things. But Yes, I think thanks for your time out first thing Monday moming and wish you a great week ahead. Thank you.

Thanks. Tharks, everyone, Thanks a lot. Thank you, everyone.

On behalf of ICICI securities, that concludes this conference. Thank you for joining us. And you may now disconnect your lines. Thank you. Page 9 of 9