Aditya Birla Real Estate Limited (ABREL) Q1 2027 Earnings Call Transcript

Ladies and gentlemen, good day and welcome to the Aditya Barla Real Estate Q1F.27 Earnings Conference Call, hosted by Mootirah Oswald Financial Services Limited. As a reminder, all participant lines will be in the listen-only mood 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 than zero on your touch-tone phone. Please note that this call is being recorded. I now hand the conference over to Mr. Harsh Patak from Motila Loswal. Thank you, and over to you, sir.

Yes, thanks, Ruthie. Good morning, everyone. On behalf of Motila Loswal Financial Services, I welcome you all to the 1QFY27 earnings conference call of Aditya Villa Real Estate. We thank the management for giving us the opportunity to host this call. From the management, we have with us today Mr. Aakye Dalmiya, MD, Aditya Villa Real Estate, Mr. K.T. Jitendran, MD and CEO, Villa Estates, and Mr. K. Urshad, CFO, Aditya Villa Real Estate. I now hand over the call to the management for opening remarks. Over to you, gentlemen.

Thank you, Hush. Good morning, everyone, and thank you for joining us on our Q1 27 earning call. India continued to demonstrate strong microeconomics momentum in the quarter ended June 26, building on the 7.6% real GDP growth recorded in FI 25-26. One inflation began to form up, with headline CPI rising to 4.38% in June 26. The broader economic environment remains supportive of sustained growth. The real estate sector continues to benefit from this backdrop and even as the composition of investors meaningfully during the quarter. Despite external handling rising from geopolitical tensions, resilient domestic demand with steady investment activities continue to anchor India's growth outlook. From an industry perspective, the strongest demand growth remained concentrated in high-value housing, employment-led corridors, infrastructure-driven micromarkets. MMR continued to lead the market in terms of volumes, while sales in moderate in Pune and NCR. Bengaluru stood out, delivering healthy absorption alongside an increase in supply. The commercial real estate market continues with strong performance, with the office segment recording its strongest quarterly gross leasing performance, led by robust demand from global capability centers and flexible workspace operators. Overall, the sector's two key growth engines are now operating at distinctly different speeds. The innocent demar is becoming increasingly selective. With a greater emphasis on location, product quality, and price discipline, while commercial office demands continue to reach new heights, supported by structural occupiers, demands from global corporates. Against this background, we have sustained strong business momentum in Q1 at FI27. Collection remained robust at Rs.713 crores, resisting 31% of YOY increase. Overall, Rs.445 CR in Q1-FI26. This performance reflects strong collection efficiency, disciplined execution, and continued customer confidence across our projects. Vila Taranya delivered a special strong start. Within just the first three months of receiving their approval, the project achieved booking value of over 1,000 crores, demonstrating strong customers acceptance of robust underlying demand. This performance further strengthens Billa State presence in MMR market and validates our strategy of creating premium, hopefully designed residential community in high-potential locations. Our sustenance series in 2.1 FI27 remain well diversified across the region, demonstrating the breadth of resilience in our portfolio. In MMR, Build-A-Taranya, in the Thane Micromarket, and plotted development at Build-A-Mirda in Boisa, together deliver a strong sustenance booking value of 150 crores following their respective launches in previous quarters. Punya contributed Rs. 119 crore in booking value, supported by continued momentum at Villa Punya Phase II and Villa EVAM. In Bengaluru, the response for Vildad Ramya Phase 4 has been particularly increasing with 91% of the inventory launched within the last two quarters already sold. This storm absorption will reinforce our confidence in Bengaluru as a key growth market for the business. We are, we also continue to strengthen our position in redevelopment segment. With the recent announcement, of another redevelopment project in Vashi, Navi, Mumbai, carrying a potential GDV of approximately 2,600 crores. With this addition, our total residential redevelopment portfolio has increased to approximately 4,300 crores. This represents another important step in scaling a business vertical that offers significant potential across high-demand MMR micro-markets, supported by trusted partnership and disciplined capital allocation. Our commitment to the core real estate business further strengthened by the successful completion of the de-investment of sensory pulver paper to ITC. This transaction has enabled us to significantly reduce our net debt position to nearly zero, materially strengthening our balance sheet and creating greater financial headroom to pursue a larger and more attractive business development pipeline, while maintaining our disciplined approach to capital allocation. Safety remains a fundamental priority across our development. The achievement of 15 million saved man-hours at Villa Niara, a significant milestone and testament to a collective commitment of our teams, partners, and workforce to building a concert where safety is non-negotiable and always come first. As we look ahead, our priorities remain clear. Scale with discipline, execute with consistency, and create developments that are defined by trust, quality, and thoughtful design. We believe a strong brand, diversified portfolio, healthy balance sheet, a customer-first approach position as well to deepen our projects across key markets and capture the opportunity ahead. As we continue to grow, our focus will remain firmly on creating sustainable value, not just through the scale of our business, but through the quality of every development we deliver and the trust we build with our customers and stakeholders. Thank you. Now, we will now open the floor for QA.

Thank you very much. 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 remove yourself from the question queue, you may press star and two. Participants are requested to use answers while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is on the line of Karan Khanna from Ambit Capital. Please proceed.

Yeah, thanks for the opportunity and to acknowledge the team on signing the VASI redevelopment project yesterday. A couple of questions from my side. Firstly, Katie, if you look at slide 4 of the investor presentation. How should one read this? Absorption levels have stayed very healthy for the quarter, even without much of launches at an industry level, implying healthy levels of sustain in sales. But if you look at your booking value of 3.3 billion. It indicates sustained sales have been relatively weaker. So what are your thoughts on this, and what else can be done to really push up sustained sales as a company? And as a follow-up, what needs to happen for the pre-sales trajectory to see a material growth from what we've seen in Q1 for the rest of FI27?

Good morning, Karan. Thanks for your question. So we had about 327 crores of net sales. Actually, the broad sales was much higher. We had a few cancellations and a few terminations for people who are not paying up. And notably, a couple or a little more of them have been from Virlaniyara. So that is why there has been a kind of a dent in net sales. But I think otherwise, if you look at our performance in Pune in... Both the projects in Pune and in Hane, Virla, Taranya, and even in Bangalore, we have had a steady performance. And also there have been price increases. So I'm not really worried about that. We will pick up. Of course, there were no launches, so therefore the numbers are a little muted. But this is largely tempered because of a few cancellations. But let me assure you that these cancellations, we are booking at higher prices. For example, at Niara, we had four cancellations, but two of them we have booked at much higher prices, with at least about 4 crores more per apartment.

Yeah. So just following up on this, and when you said that you had no launches during the quarter, if you look at slide 17, which is 9,600 crores worth of launches that are planned for FY27, what's the current approval status for all these projects, and do you see a risk of slippage for any of these projects into FY28?

So largely, we're more or less on track. But most of the launches are planned for Q3 and Q4, so currently we're on track for all these launches.

Okay. And then second question, Katie, on, you know, now that you've received the proceeds of around 3,500 crores from the sale of pulpit and paper, and with the Khar redevelopment last quarter, and now Vashi that you signed yesterday, with revenue potential of around 2,600 crores, should we now view redevelopment and, you know, JV-led projects as becoming a more important part of Villa Estate's BD strategy? And when you look at, let's say, higher concentration of Mumbai, how are you looking at the market and the overall demand elasticity, let's say, over the next 12 to 24 months, considering that most of the projects that are expected to be launched and most of the BD that you've signed so far is primarily in the MMR market.

Yeah, so the residential real estate market continues to demonstrate strong resilience. Housing sales across India's top cities has grown by more than 8% year on year, which is actually reversing the decline which was witnessed last Q1 to 2025. And more importantly, this growth is being led by premium housing, which is continuing to reflect a structural shift in buyer preferences rather than a mere cyclical demand. And so Mumbai, where else but Mumbai for premium housing. So I think the premium housing demand continues to be very stable, strong, growing, both in price terms and volume terms. So we are pretty confident that we are betting on the right market. However, having said that, we are also looking very strongly into the NCR market, both Gurgaon and Noida, prime locations in these markets, and also in Bangalore, very premium locations. We are strongly following up on our BD acquisitions in Bangalore and also into Pune at the right location. So I think it's more micro market-led. There are certain micro markets in each of these cities which are showing very strong growth trends. And we'll be focusing on those.

This is helpful, Katie. I'll come back in with you. Thank you.

Thank you. The next question is from the line of Akash Gupta from Nomura. Please proceed.

Hello. Hi. Am I audible?

Yeah, Akash. You are. Yeah.

Hi, sir. Congratulations on a resilient performance. My first question is with respect to margins for our redevelopment projects. Is this any different? Like, what margins are we looking at for these type of redevelopment projects?

So, Akash, we are looking at a very premium location for these redevelopments. So, our margins are as good as any other, you know, normal projects. Do not worry for that. We are in the region of about 25 to 30%.

Understood. The second question is on the cash that we have got from ITC. So, is this any tax implication? What is the post-tax cash inflow that we will get from this ITC?

So, Akash, K. Uriya, we have received 3,325 crores. Which is approximately 95% of the consideration amount. The balance 5% will be subject to certain conditions subsequent and certain working capital adjustments which have to be reviewed. Because, you know, it takes time for the working capital to be computed. So that's the balance 5% to be received. Yes, there would be some – there would be a tax outflow on that. That is the process of being worked out, so I'm not in a position to give you that number right now. But, yeah, this is what we have received so far.

Understood. And sir, just from a launch strategy standpoint, we have, just on the Niara launch, what is the timeline?

So, Akash, as you mentioned, we are focusing on large formats, similar formats like what we did in Silas, but slightly modified with fungible options, etc. There are a lot of people who are waiting for combined options, larger formats. So, that has been decided, and we are moving ahead with the approvals. Hopefully, we should get RERA by end of Q2 and kind of launch this early Q3 or mid Q3. That's the current plan now.

Understood. And any feedback on the initial demand for the product? Yeah.

Yeah, as I mentioned, Worldly continues to be a very, very strong market. In the premium segment, it is really commanding good premiums. We have increased our prices for Silas and Tavare. Market continues to show strong demand. We have a strong pipeline, some of whom existing customers and some other customers are waiting for larger formats, etc. So, we are not worried about demand. It continues to be very healthy and strong.

Thank you so much.

Thank you. The next question is from the line of Amit Srivastava from 361 Capital. Please proceed.

Yeah, thank you very much for the opportunity. Sir, my first question is on a medium-term growth prospect for the free sales. In our FY25, when we first hit the 1,000 crore free sales, we have indicated that while annual guidance we may not get, but over the medium-term next 2-3 years, we will reach towards 15,000 crore. But K426, we were at 8000 crores. And this year, looking at the business development and launches,

we believe it could be in the similar range.

So have we recalibrated our growth strategy or timeline or we are confident of achieving the 15,000 crores over the next two years time?

So, Amit, we are absolutely confident of, you know, our guidance and our long-term guidance that we have given. We are all aiming towards that. We are building up our BD pipeline and also showing up on phase launches, and we are very, very confident that we will be able to achieve that.

Okay. And so in terms of, we were talking about last two protests on a commercial real estate portfolio development plan. So can you update us what is the progress we have made so far for any timeline in terms of which project we would like to prioritize first and start?

So, as I mentioned in my last, you know, interaction with you, that we are planning to commence the commercial development from the Birlaniyara project itself, first about 1.3 million square feet. Our attempt, the design is in planning stage, and we are hoping to get the approvals and start commencement before the end of the financial year. I think a four-year time is what we are looking at getting into the leasing stage, and given the current market conditions, I think it should be at least about an 800 crore annual leasing when it is fully stabilized.

This project can be launched parallel to our build-on year update 3, so no problem on that side.

Absolutely no, Shikshan. This is commercial, there is no bond, we just take the approval and start building, start construction.

So what would be the capex kind of assumption on this, if we are 1 million square feet?

Capex? Capex is not, because land is not, we only have to pay for it.

Yeah, so construction is spent basically, if we look at it.

Yeah, that details are there that I can share you if there is too much. I mean, it's not something which is, you know, too big. And if we have also options of going with a partner, with a private equity partner. So you're weighing all of those options. Yeah.

Sure, sure. So last question is in terms of construction spend, last quarter we have guided 4,000 crores for the FY27, whereas we have already spent 440 crores in a 1Q. So, this would be in the same range of 1000 crores for the F0.27, how it will escalate, and what would be the collection guidance for the F0.27?

So, Amit, F0.37 includes a construction cost of around 226 crores. Balance are other costs like approval costs, design costs. So overall, the construction cost is, you know, 226 crores for the current quarter. And yes, around 1200 to 1300 crores is the overall construction cost for the current financial year.

Okay. Sure, sir. And just some clarity on the build-on error phase 2, where the cancellation has happened, in a one-quarter we got 4 units which got cancelled. So any specific research for that?

We had one cancellation in Tower A and three cancellations in Tower B. But two of them have already been booked in the last quarter, one we have again booked at this quarter. So, these happen. People are not paid up. They have struggled payment schedule. Somebody has a debt in one's family, financial constraints. They didn't want to continue, etc. The good news is that we have been booking it up much higher prices. The re-booking has been at much higher prices. At least every apartment we have sold at 4 crores more.

So, what is the current ticket price, sir? For how many of you are?

In Tower B?

Yeah, Tower B. Okay, thank you.

Thank you. The next question is from the line of the state from Access Capital. Please proceed.

Yeah, thanks for the opportunity. Just a couple of questions. First on the BD, I mean, just in case you want to just indicate, you know, what sort of pipeline do we have right now in terms of advanced discussions and would be helpful if you can provide the split across. Yeah, that's my first question.

Our mini pipeline continues to be very strong. We have more than about, you know, term sheets and advance deals worth about more than 60,000 crores in the pipeline. These are reasonably split between NCR, Mumbai, Pune and Bangalore. Of course, because of the push on redevelopment, we have a slightly stronger pipeline in Mumbai. So, otherwise, we have even very strong proposals going on in NCR markets, Pune, Bangalore. So, in all markets, our focus remains equally strong. I think all these markets in the right micro markets, there is very strong demand for premium housing, and that's where we are focusing on.

Sir, any targets in terms of completions in next, you know, one or two quarters? Because probably that would set the tone for, you know, next year's growth. So, out of the 60,000 crores, how much do you expect to, you know, complete in this quarter, next quarter?

Quarterly things in BD is not possible. Whenever we get the right deals, we will, you know, For example, the deal that we concluded, VASHI, that moved very quickly. Within about six months' time or less than six months' time, we could conclude it. There are deals which we are negotiating over the last couple of years also. So this is very difficult for us to really predict quarterly basis. On an annual basis, I've guided you in the range of about 10,000 to 15,000 crores is what we are aiming to do in this financial year.

Got it, got it. And with that, I mean, at least you are confident that FI28, we will have a growth in terms of presence. At least we have reached that stage in terms of business development where we can be confident, slightly confident about next year's growth.

Yeah, so I'm not currently commenting on next year. I'm confidently commenting on a three-year plan. I think that's what I would rather like to tell you. 15,000 crores. In three years time is what I can guide you for.

Fair enough. That's all from my side, and all the best. Thank you.

Thank you. The next question is on the line of Biblag from MKGlobal. Please proceed.

Good morning, everyone. Good morning, Katie. My first question is on cancellations in Niyaraha. So, can you give us some numbers, and if you exclude those cancellations, what would have been our gross sales this quarter?

Gross sales have been more than 700 crores. But as I mentioned, both in these markets were almost full inventory sold, like in Arica or this thing. These are more like a clean-up situation. People are not paid. They have been either terminated and some of them are cancelled. But they are getting re-booked at higher prices.

So these numbers will be reflected in the subsequent quarters?

Yeah, yeah, yeah.

Yeah, yes, yes, yes. Absolutely. So we don't have to worry or leave between the lines? Not at all.

Not at all. Not at all. All these cancellations have been healthy. They will only improve our cash flows and also our top line.

Okay. Okay. So coming to business development, so you have, I said also you had a decent pipeline, and yes, you have close two deals, but you have almost 60,000 crore GDB pipeline, and similar kind of, if I'm not mistaken, you had a similar kind of pipeline. How probable are you that you will be able to do, say, 15? Probability, I'm talking 15,000, 20,000 crore of GDP of business development this year, and what are the challenges you have been facing in business development? I mean, yeah, that's the second question.

So, Biplug, yeah, I have mentioned 10,000 to 15,000, so I'm pretty confident that, you know, we'll be able to achieve that. No reason to believe any other way. As I've always mentioned, you know, the challenges are, you know, the right pricing, right location to get the right product with the right title and, you know, prudent risk management, prudently risk-managed projects. Prices, of course, have gone up. It has to be in tune with the markets and our return expectations, etc. And also, it has to be relatively risk-free. So, that challenge has always remained. It's a question of the right opportunity coming at the right time. As I mentioned, we are chasing several opportunities. Some of them are high-potential opportunities, but it takes a lot of patience to bring it to the right level. So, work is going on cleaning up some of the challenges that you face. This has always happened in the past also. Somewhere it is competition, overbidding, all of that. So, it's a mix of both, right? Clarity, location, sizing, market demand, competitive bidding. It's a mix of all of that. So, we will continue to pursue business development with full vigor, but with full, you know, risk management within our risk management framework. And I'm sure the opportunities will come. We have to be a little patient.

One final question. Sir, I know cash has never been a problem when it comes to business development. But still, any of the cash in your bank, it gives you a lot of strength and confidence, and so would you see now, since we have post this paper sales business and our focus is entered to invest in real estate, so would you see a strong uptick in business development, more so in outright purchase because you have significant amount of cash now?

Yeah, so we always have, you know, if you look at our entire portfolio, the bulk of the deals are outright only. There has been a decent share of joint ventures, but largely, you know, more than 50% is outright developed. So our focus will continue to be that. Just because we have surplus capital will not push us to be, you know, careless or rash in any way. It's very important that we become very careful because coming under pressure and putting, you know, capital in a slightly reckless way could be very detrimental for us in the long run. So our framework of risk management will continue. And I'm sure when the right opportunity comes, we'll strike.

Thank you, sir, and all the best.

Thank you. The next question is on the line of Jay Pardhak from Mothilal Aswan. Please proceed.

Yeah, I'll put that aside. Yeah, so first of all, congratulations for the new business development in Vasi. My first question is around that. So, I think we have an affiliate partner in this project. So, what would be the exact arrangement in this and what is our economic interest in this project?

So, our economic interest is 90%. 10% goes to the partner. Partner has been responsible for handling the, you know, around 500 society members and, you know, dealing with them, executing the negotiations and agreements with them, managing the vacation of them, you know, getting the existing structure demolished. Barricading, rubbing and all of that, making the sites ready for us to move in and clear and also helping tremendously in getting our municipal approvals.

Okay, so what are the margins that we'll be getting on this project late-night?

Around 25, 30 percent is what it is. It's a very high margin, very high, very premium location, extreme with the creek view and all that. Very, very premium from Vashi point of view. We expect to sell in the range of about 38,000, 40,000 rupees per square foot. So therefore, it's a high margin project.

And what is the exact situation in the project? When can we aim to launch this?

We are looking at a Q2 launch.

Q2 of FY28? And so, my next question is on your cash flow statement on slide number 29. So, there is this 282 crores of outflows towards land approval, capital outflows and deposits. What would this exactly be?

So, Harsh, we've made some land payment of around 125 crores out of that, and there is a net deposit outflow of 150 odd crores, and there is some... Now, the deposit is a net number. We have also adjusted some deposits from some of the projects. So, that is the total summation of 283.

Understood. And this 150 crores of land outflow would be towards which project?

So, 125 land outflow is for the Thana project, 125. Okay. And the deposit is 151. So, we've also, you know, given an earnest money deposit for land auction in Noida. So, there is a deposit of that. Then we had to give a deposit for one of the redevelopment projects in Khar. And there has been an adjustment of the deposit given in some other projects. So, the net deposit outflow is 151.

Wonderful. Yeah, those are the questions from my side. Thanks a lot.

Thank you. The next question is from the line of Jai Shah from ATTFE Securities. Please proceed.

Hi, sir. Thank you for the opportunity. So, I have a question on the new e-development that you have entered in Vashi. So, what would be the carpet area for this?

So, our saleable area is about a million square feet.

Okay, a million square feet.

Yeah. It's a million square feet of saleable area. Yep.

Uh, so around net net, so then, uh, uh, so that implies to around, uh, what, uh, 55, 60,000 of, uh, per scapeo date, right? On the carpet, so like versus the carpet over there, which is around 35 to 40. So how, what are those like plans of launches and how are you planning to sell here in such, at such a price?

I think it's very premium locations, very, very premium locations. So largely we'll be looking at, you know, large format, four bedroom, sort of. I think it's a very high demand segment. There's very little supply there. There's absolutely the most premium location in Vashi. So, I think we'll be largely looking at very, you know, carpet areas of almost 2,500 sort there

per unit. Okay, and this would be, uh, uh, and. And the EBRL share for this would be.

Our share, yeah, it's a 90-10 ref share, 90% of us.

Okay, 92 EBR, okay. And, okay, so, and this would be, like, how many towers, or, like, what would you drop to our side over there?

Yeah, so, I mean, design is in progress, but typically, I think, about three or four, four towers, four towers of free staying.

Okay, fair. Okay.

Thank you. The next question is from the line of Shukri from ISAD, Pintred, Private Limited. Please proceed.

Good morning to the team. I have two questions. My first question to Mr. Katie is, if you want to understand a forward-looking guidance, what are the top two to three execution priorities you are focusing on in the next few portals? And alongside that, what do you see as the biggest risk and demand shifts, regulatory changes, or competitive pressures? And how are you preparing to mitigate them whilst strengthening the company's position in the real estate development space? That's my first question. I'll ask my second question after this. Thank you.

So, execution, of course, has always been key priority. All of our projects we give full priority in execution. Birla Niara, Tower A is coming up for possession next year. So, that, of course, is a high priority. We are handing over a few projects this year. Birla Tisya notably being one. The focus is on handing over with the highest customer satisfaction on these projects which we are handing over this year. Navya, one of the faces we are handing over this year. Construction with full focus on highest level of safety and quality, timely delivery within budgets, managing the whole process remains our primary, you know, execution focus. Also, the projects which are in the phase of launching, which are finalized now, design, understanding the customer. Putting all the factors into design, getting the design right, both in terms of construction cost optimization, customer requirements, and also in terms of SSI optimization. And also make sure that it is fast construction friendly. So all of these, you know, is the prime focus for our execution part. Does that answer your question?

Yeah, thank you. Thank you. My second question to Mr. Shah is, along the similar lines only, from a financial point of view, what key risks or challenges do you anticipate in the coming quarters, and what specific measures have been taken to manage margins, cash flow, and strengthen the balance sheet, especially in areas like borrowing costs, receivables, and compliance? Thank you.

So, as we mentioned earlier, our... Net debt is nearly zero now, and we have a good treasury, which we can use for business development and acquisitions. We are in the process of repaying our short-term debt, as in when it comes up for, you know, repayment. That's on the, you know, balance sheet size. As Katie mentioned earlier, despite having significant cash balance, we will be disciplined in our approach in terms of, you know, business development and acquisitions. We are focusing a lot on our collections. We have almost a 98% collection efficiency. And wherever the collections are not coming on time, we are doing a termination. So I would like to use the word termination and not cancellation because we don't want a customer outstanding. So we are very, very focused on our collections. As coming to the project, you know, deliverables or key parameters, we are always We are trying for, you know, making the project cash neutral. So whatever is our outgo in terms of land acquisition, launch, construction, our endeavor is to break even at the earliest so that our project is secured and thereafter we play on margin. And that strategy has played out well in the past and we will continue to do that. So we are not going to change our strategy in terms of focus on net cash flow.

Thank you and best wishes.

Thank you. Thank you. The next question is from the line of Bhavesh from Whitestone Financial Services. Please proceed.

Hi, Vavish. Yeah, my question is on two points.

Vavish, we cannot hear you.

Your voice is very faint.

Yeah, it's better. Yeah. So, my question is on commercial property development side on Worley Land. So, earlier, in our earlier plan, we had around 65 lakhs square feet of FSI, right? So, out of this, we are planning 10 lakhs square feet of commercial property, you said in earlier question, answer. Is it right?

You are right, about 1.3 million is our. Allocation right now for commercial, we may change it, modify it later, depending on how we see the demand.

And you are also evaluating partnership with IFC or MUSG, whichever institutional platform. Yeah, we haven't decided who yet.

Yeah.

And one more question was regarding Niara 1, Niara 2, how many flats are sold? Thank you very much.

Thank you. The next question is on the line of Akash Gupta from Namora. Please proceed. Yeah.

Hi, my honourable.

Yes, Akash.

Hi, sir. Sir, again, just wanted to have your thoughts on business development. Frankly, Villa Estates has lagged peers in business development over the last one and a half years, and these peers have also closed deals which are at fairly similar margins. Cash has never been a problem for us. So, I just wanted to understand that why have we lagged on business development versus peers over the last one and a half years? Is there something different that we are looking for, or are we being, like, too conservative at the risk of growth? Just the thought process there.

Yeah. So, as I mentioned, there is no dearth of teams. We have a, you know, stable framework which we have maintained. So our risk management framework has been pretty robust and strong, and we completely believe in that. And I think it is very essential in a cyclical industry where we don't know when the markets will change. The due diligence has to stand the test of time and cycles. And from that point of view, if you are challenging saying that we have been lagging for the last one and a half years, I would also like to point out, if you look at a larger framework, We have a pipeline of about 70,000 crores of GDV, of which, of course, 32,000 is launched, but still we are 42 and we are adding prudently every year. So, I really don't want to pitch myself and say that I am lagging somebody in the last six months or one year or so. What we have to look at in a business like real estate is really long term. So, in the long term, how are we adding value, how are we creating value, and… Also, minimizing value destruction. Sometimes when cycles go the other way, we have to also ensure that there is not substantial value destruction. So, all of that points are very important, and it's very much possible in real estate when cycles change, that would be violent, volatile changes, which can take the entire company down. So, we have been very careful and prudent from that point of view. If you are asking me, are we too conservative? I don't think so. I think I would rather choose the word prudent.

Thank you so much.

Thank you. The next question is on the line of Swecha Jane from Ian as well. Please proceed.

Hi, sir. Thank you for giving this opportunity. So, most of the questions are answered. However, I have a few questions. So, one thing was regarding the commercial real estate. I also wanted to understand, are we also looking at, you know, the redevelopment of Century Bhavan and Birla Centurion?

Oh, Birla Centurion is a relatively new building.

Okay, so that will not go under redevelopment.

Yeah, for surely not in the near future. Okay. Yeah. Century Bhavan, of course, that's a very strong possibility. We are evaluating and looking at the possibility of that.

Okay. So, on the commercial real estate that you mentioned in the earlier comment that you're looking to develop this year, what is going to get under redevelopment? Not the Century Bhavan, is it?

No, I was not talking about redevelopment. I was talking about building, I mean, start commencing construction or development of a million square feet in Birla Niara, a completely new whole.

Okay, completely new. So our older commercial real estate that we have, are we looking to redevelop those buildings?

Not in the near future. We have two commercial buildings, Birla Arora and Birla Centurion. Together, they are giving us roughly about 140-250 crores of annual income. They are fully occupied, 100% occupancy, and there is no reason, and these are not very old buildings. So, we are not really looking at redevelopment of these buildings in the near future. The only possibility is Century Mahavan, which is a very old building. Yeah. Otherwise, you know, our current focus will be on constructing a new office building in the Birla. The Nihara plot. And also, we are looking for other opportunities outside. We are looking at good opportunities for acquiring new land for commercial development in Mumbai, NCR, all of these.

Understood. And, sir, post the ITC money that we received, how much is the net debt?

Our net debt, as I mentioned earlier, is virtually zero. Okay. So, in that sense, we don't have much debt remaining. Cross debt will remain because we have construction, finance, and long-term pensities, etc., which will not be paid off, but net debt is virtually zero.

Okay, understood. And, KT, sir, I know I've heard a lot of people, you know… And expressing their views and concerns on the BD. And I also have similar question on this line. You know, while I've heard you saying that, you know, we are not conservative, we are prudent, and I completely understand that. And you also mentioned that, you know, there are various aspects that we look at, you know, whether it's the product, the right pricing, and I understand all of that. But I just wanted to understand the thought process, you know, that we as a group, you know, think of because 60,000 crore is a big pipeline, you know, which is really commendable that we are working on that. But at the same time, you know, when we look at the numbers, you know, essentially, we've really not done anything in past one and a half year. And I think that's where, you know, other people on this call also have some kind of, you know, questions regarding this. So I really want to understand, you know, out of so many parameters, what is that one thing? You know, something must be really stopping us in, you know, signing that, you know, deal. So I just want to understand your thought process. You know, because we all have 100% trust on you, on the company, and we are doing commendable job on all aspects, you know. But this is something which is something which I think all of us are just, you know, waiting to have those tie-ups, and we are just waiting to, you know, to have that thing. So, just wanted to understand from me, you know, what is it that is.

Thank you for your confidence in us. I really appreciate that. There is no one thing. It's actually, you know, the one thing that I ask all of you is to have patience. That's only one thing I ask you. We are, you know, pursuing several strong deals, and we are confident of... Closing them, but all these deals require patience. Some of them we have been negotiating for more than 18 months, 24 months. We were doing due diligence. It's not the commercials have been closed, but due diligence. We all understand land parcels are large. There are issues. Land parcels may have litigation. Some of them may have NCLT. So most important for us is the right location, the right micro market, the right axle. Yeah, and if it is a JDA, the right partner, and understanding and building that trust and ensuring that, you know, the agreement is closed in the right way. So it's not just one factor. It's a combination of a few factors. All of them have to come together. The only thing I can say is that, you know, financial resources are just not a constraint at all. We have plenty of that. The brand is strong. We have to make sure that the location that we... You know, get into this commensurate with the stature of the brand. So that's all at this point of time.

And so just one clarification, the 10,000 to 15,000 crore is this year's target, is what we have internally, right?

Absolutely, absolutely.

Okay, okay. Thank you, sir. Really appreciate this.

Thank you. The next question is from the line of Kunal from Atlas. Please proceed.

Hi, I'm Avidil.

Yeah, yeah, you are, Kunal.

Okay, so my first question is, is the Noida 150 land now completely out of picture?

Yes, it is.

Okay, thank you. And my second question is regarding Niara Tower C. So, your presentation mentions the total UDB and the sustainability of this. It roughly translates to 69,000 rupees per square. So, like, is that a reasonable approximation for the launch price?

So, it's too early to talk about a launch price, but sensitively, it will be in the range of about 1 lakh to 1 lakh 20,000 rupees per square foot.

So, that means that the total GDV would be revised then? Because the presentation is...

This is the available area. I'm talking on carpet. I'm talking on carpet area.

Okay.

This is the available area. So, I think this is right.

And my third question is regarding the position timeline for Tower 1. Can you give us a take or narrow it down to a quarter when you expect the position for Tower 1?

Yeah, so we have within the RERA timelines of March 28, hopefully by 27, Q3, we should be ready to handle. But handle will take its time. People come in inspecting and all that. So it will be in that period only, Q4.

Okay, and what margins do you expect for tower 1?

Margins, margins are very healthy, I mean, I don't want to disclose now, but it's all in the, here the margins are in between about 40-50%.

Okay.

40 plus.

Thank you.

Thank you. The next question is from the line of Himanshu Zaveri. I am well, sir. Please proceed.

Yeah.

Hi, Katie. Hi. Hi, Himanshu.

So, my particular question is about the NCR market. So, how do you see the market in terms of the pricing and all that? Because what I feel is that the particular areas in the market, the prices are heated up quite a lot. And what is the view on the Noida market also because there I find a lot of shortage of land from what I hear from the sources.

Okay, I think NCR market has some fraud, but if you, it's a combination, if you get the right pricing and the right sizing, as I always mentioned, backed by a strong brand and good location, I think, you know, you can do very well. We have, you know, three projects in Gurgaon, all to have done exceedingly well. It has been our best performing market for us among all markets, Gurgaon. And I strongly believe in that market, but we have to be careful in choosing what I mentioned, all the four factors to get it right. And there have been very fantastic launches in the last quarter also by some of the real estate other companies. So I'm very excited by this market. Market has a fair share of investors, but I think given the urbanization, given the demand for larger apartments and the growth of wealth in that segment, there is, I see, very exciting potential for the premium housing in that market. Noida, of course, as you very rightly mentioned, there is absolutely no supply of land, and the demand is huge. The lack of quality players. So I think it's one market which I would love to get into. We are trying very hard, hoping that we succeed sooner than later. But I think that's also a very, very exciting market.

And KT, just to have your view, are we also participating in some of the options where, you know, there are huge land parties available?

Yeah, yeah. Because I think, because of the terms of land, I think we have to participate as the best way to get land in Noida. Not just in Noida, we are also looking for opportunities to participate in Gurgaon.

So I don't want to compare with other companies, but just... To understand, like, options obviously you have to bid for a very fair and high price to get the land, right? But then we are just maybe falling a little bit short here and there for the huge land parking, right? Because one or two good deals and then we are through, you know, with the DDD in Gurgaon.

Yeah, so as within our, you know, framework, what we think is the right pricing, we will put our best foot forward.

And just about the century government one, KT, there we are planning commercial or residential?

I mean, largely, I mean, the location commands the commercial presence. So that's what we would aim for. But we are weighing all options.

So, just asking because just two buildings away, the Obergh 360 residential one has done amazing, you know?

I know. But this is part of a commercial complex. This is a smaller plot. So, yeah, so we are weighing all of that.

Okay. Any news on the Prabha Devi land, which we have a smaller pasture, which is a very sea-threatening?

No, not in the anvil now. Not in the anvil now. At a later date, right? Can't talk about it now. Okay. Thank you, KT. That's all.

Thank you. That was the last question for today. I now hand the confidence over to the management for the closing comments. Over to you, sir.

Thank you. With a strengthened balance sheet and a resilient portfolio and continued customer confidence, we are well positioned to pursue the possibilities ahead. Thank you, everyone, for your time attending today's call. We are truly excited for the time to come and to... And look ahead to reach you again with a lot of more news in our next call. Once again, thank you very much, and appreciate your all-time support and understanding for the success of our business. Thank you, and have a good day.

On behalf of Aditya Bidla Real Estate, that concludes the conference. Thank you for joining us, and you may not disconnect your lines.