Modis Navnirman Limited (MODIS) Q1 2027 Earnings Call Transcript

Ladies and gentlemen, good day and welcome to Modi's Navnirman Limited Q1FY27 Earnings Conference Call. As a reminder, all participant clients will be in the listen-only mood and there will be an opportunity for you to ask questions after the presentation concludes. If you do need assistance during the conference call, please signal an operator by pressing star then zero on your touch-tone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Mahatmoudi. Thank you and over to you, sir.

Good afternoon, everyone, and thank you for joining Moody's Non-Nirman Q1 F523 Mornings Call. On behalf of the management team, I sincerely appreciate your time and interest in our company. Before I get to the numbers, I would just like to brief about the company that is Moody's Non-Nirman Limited. The numbers what we speak... Sorry. Since I founded Dinesh Moody, Setup Moody is now Nirmand in 2009, we have built this business around one simple belief that we don't just build walls, we build homes. This isn't a tagline for us. It is a filter which we run in every decision which we take, which society gives with partners and how we design a tower, how we treat our family that has trusted their money and time with us. And the roof which we provide them over their heads during a redevelopment. A house becomes a home with love, and that is the standard we hold ourselves to project after project. I say this deliberately that it is easy because it is easy in this industry to be measured purely on land banks and square footages. We would be rather measured on trust, and this quarter, I think you will see that trust translated into both scale and performance. Now, I would like to give you a brief about the financial performance we have done in the quarter. The revenue from operations grew 27.92% year-on-year to 58.26 crore, compared to what it was last year's Q1 FY26, 45.54 crore, and it has grown 13.15% from the Q4 of FY26. EBITDA grew 14.25% year-on-year to 11.65 crore from 10.20 crore given in Q1-FY26 and rose 54% subsequently in Q4-FY26. The profit after tax grew 25.81% year-on-year to 8.54 crore compared to 6.79 crore which was given in Q1-FY26 and rose 92.04% in Q4-FY26. Basic EPA for the quarter stole 4.36 against the quarter F126 of 3.47 rupees. One number I want to specifically mention is the area close, which in Q1 F527, we have sold around 44,000 square feet. To me, that number, the best taxes was actually happening on the ground, and more families are choosing us to make home with us quarter and quarter. I would like to also give you a brief on the expansion which we have achieved in the Q1 quarter. In this quarter, we have undertaken one more new project, that is Lee's Given Society in Santa Cruz West. Like we had promised in our other phone calls and presentations that we will be expanding in the Bombay zone. So till now we were... We had projects in the western zone, but now we have responded to the Santa Cruz and other sides of Bombay. Together with this, currently we have 6 ongoing projects and 14 completed projects and 5 upcoming projects across Bombay and its region, taking our portfolio to 25 premium residential projects. This isn't just for growth shape. Every one of the projects in a micro market, we understand D.C., Malla, R, Kandivali, Borevali, Daisar, Goregao, and now R, which comes to us through our redevelopment model, which we have always kept an asset-like model, in wherein we partner with societies rather than competing for lands in open market. This keeps our land cost low and puts our capital where it belongs into construction and into families basically for their home and not into land bank setting ideal or balance sheet for quarters and quarters. Execution on the ground, I would like to give you a brief of the first quarter which is going on. The execution is photo-steady across all six projects, Rashmi Square has completed 22 slacks, Rashmi Signature completed 28 slacks, Rashmi Delight has completed 14 slacks and Rashmi Monarch completed 13 slacks, Rashmi Icon and Rashmi Avenue both are prognostically criminously on their plink stage. This is exactly the kind of discipline and on-schedule execution we want every investor and every home buyer to able to set their watch by. Looking ahead, so when people asked us how different we are from every other union state company, this is our answer. We are not changing the biggest land banks in Bombay. We are building the most trusted name in Mumbai redevelopment. One family, one society, one home at a time. Our job is now to keep doing exactly what has gotten us here, discipline, execution and ground, financial provisions on the balance sheet and widening our reach into the neighborhood status. That are ready to grow with us. With this, I would like to keep the floor open for any questions.

Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and not on their question on telephone. If we wish to remove ourselves from the question queue, you may press star and to participate in the request that we will answer while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembled. A reminder to all participants, anyone who wishes to ask a question, may press star N1 on their stream telephone. The first question is from the line of Rohit Mehra from SK Securities. Please proceed.

Hi, sir. Good afternoon, and thank you for the opportunity. So, my first question is, how many of you projects do you expect to add during the 527?

Yes, but in redevelopment, there is no guarantee how much projects win because it is a tender process wherein we fill our tenders, then society takes their time to study, to select, to do everything. So, I can't promise on the number which we are undertaking, but yeah, probably we are in good positions in two to three development stages wherein we are in the top three category. So, We are expecting this plus whatever more tenders come and whatever we achieve in that.

Got it, sir. So pertaining to that only, so are you seeing any changes in the pricing trends across your team acromarket?

No, there are no pricing trends. Pricing trends have been similar to what it is. Price room is micro-market and project specific. See, what happens is, if it is a well-connected area in the western suburbs, projects with good amenities and strong connectivity, the rates have been pretty much good enough. There has been no much volatility in terms of the pricing.

Got it, got it, got it. And just on how operational this is, are there any challenges pertaining to the labor availability and other things or costs per se?

Sorry, I didn't, I could not get you. Sorry.

So, I just want to know that are there any challenges pertaining to the labor availability or the cost for the labor? I know that's right.

No, no, no, no. That is the long one. There have been no issues for operational at any of our projects. Got it, got it, sir.

That's it from my side. Thank you.

Thank you. A reminder to all participants, anyone wishes to ask a question, they press star and one on their custom telephone. I repeat, anyone who wishes to ask a question may press star N1 on their touchtone telephone. The next question is from the line of Mahesh Kumar from MEO Investment.

Please proceed.

Mr. Kumar, are you there?

Hello, hello, how are you?

Yes, hello.

Hi, good afternoon, sir. So, I just wanted to ask on the macro scenario in the real estate market. So, we see in several few quarters there has been a ramp up in the supply of the basically residential apartment, but there is not that much demand in the market. What is your view, like how is the demand setting up, and how should we expect the demand going forward?

In terms of demand and supply, I would agree with you that the supply has a bit increased, but demand is still there. For people, the flats and everything, in real estate, the demand is always going to be there because being Bombay a financial capital, I don't see the demand drying up. Supply has boosted up a little bit because the government has made their positions clear on the MARA land, SRE lands and everything. So supply has increased, but I don't see any issue in the demand. Demand trend, I mean, it is going to be the same.

Okay, and one more question, sir, on your accounting. So, I wanted to just ask, like, how do you account for revenue when you, you know, do the project? Is it on completion basis or, like, is it on project completion basis or, you know, percentage completion? The present is completed. Okay, okay. And we have seen around 20% revenue growth. What was the, you know, key driver behind this performance if you could get to London?

This is launching of new projects, then the completion of projects. So we completed Rashi Celestia in the last quarter. So the inventory was ready to move it. So, that changed the two projects, Rashmi Signature and Rashmi Square have been tremendously there on nearly on the closing stages in efforts in the Southwater will be probably handing over with OCI. So, the projects are on the completion stages. So, that also drives pay. Because, you see, there are less chances of now the project getting stopped. So, people tend to buy more.

Okay, okay. And just one question on your stock. So, you've seen that the liquidity in your stock is very low. So, just wanted to ask why it is very low in the current market.

I have no idea. That is purely the, what do you say, the market side. I don't see the market side or anything. So, I'll not be the one.

Okay. Okay. Thank you very much, sir. That is from my friend and all this for some information. Thank you.

Thank you. The next question is from the line of Nibesh Pandey from NP Inventment. Please proceed.

Hello. So, I'm already here? Yes. Thank you. Thank you for giving this opportunity. So, sir, I have a couple of questions. So, first thing, sir, do you see a scope to expand into new markets or would you continue to focus on the western suburbs of Mumbai?

No. We continue into all the sectors of Bombay, all the areas of Bombay. It is not that we are just in... To one area or part of Bombay, we are expanding. We have expanded into Khar. Our major portfolio was into Khandiwili, Buriwili, Mallard and everywhere. Now we have expanded to Khar as well. So we are step by step. We have projects. We are into tender processes in Parla. We have a discussion for VarCopper as well. So, we are looking into it. Nothing finalized because all these takes time. Everything is going on in bits and pieces.

Got it, got it. And the next question is, as you grow, what are you taking to build stronger brand recognition and customer confidence?

See, our major, major, for customer confidence has been delivery of timing. That has been our core. So, we focus more on completion of the project rather than making just the brand visibility and everything. So, we always believe in word of mouth more rather than brand positioning or branding yourself as someone in real estate. If my project speaks, so I get, if I am delivering a project, I have 200 family. So if I complete the project on time, I have 200 people who are going to speak of me and word of mouth. So customer satisfaction has been our major goal into this. In brand development, you can say.

Okay, understood, understood. Sir, last question. Sir, what are the key challenges or risks you foresee as the business grows? And, sir, how are you preparing to address them, you know?

I think there are no challenges we are as of now facing. The war, the war thing which has now succeeded initially during the... Fourth quarter in April, May, there were few challenges, but now everything has subsided.

Okay.

Understood, sir. That's not my question. Thanks a lot.

Thank you. The next question is from the line of Madhav Das, an individual investor. Please proceed.

Mr. Martha, while you're there?

Mr. Madhav.

Hello.

Hello. Yeah, please proceed. Yeah.

Yes. Thank you for the opportunity. So, actually, I have a couple of questions. One is that, what are the key operational priorities for the management over the next 12 months?

In terms of what you are asking, key operations in the next 12 months, can it be a little specific?

So, sir, exactly what are the official priorities I've been about because of posting and dropping bills?

I can't hear you properly. Your voice is not audible.

Hello, sir. May I request you to rejoin the queue, please? Thank you. The next question is from the line of Muskaan Pateyan from JK Investment. Please proceed. Hello.

Hi, sir. Hope I'm audible. I have a couple of questions. One of them being, how do you see the demand outlook, especially in Mumbai's redevelopment market, especially over the next few years? And another question along the similar lines is that, are you guys in any way evaluating opportunities beyond the existing operating markets? Like, will your focus will remain on Western suburbs of Mumbai, or will it also expand to other parts of the country, perhaps?

The first question is regarding a demand. The trend which we have seen since all these years, the demand has never gone down in Bombay. So demand, in terms of demand, I am very skeptical that it is going to go on a higher side rather than on a lower side.

So demand, I don't see any issue for the next few years as well.

In terms of the second question, wherein you are asking me regarding our expansion, we have expanded into different parts of Bombay, particularly we have taken a project in Khar, we are evaluating other projects, eastern suburb of our Bombay, Gajkobot Head also we are exploring. So, in terms of exploration, in Bombay, yes, we are, and neighboring parts of Bombay also, but not, as of now, not in any other city of Bombay. Bombay except Maharashtra we are looking or even in Maharashtra we are not looking to expand tremendously in other parts of Maharashtra. We are going to be around Bombay only as of now. Then we are obviously hoping to expand into other cities of India.

Okay, that makes sense.

I also wanted to ask you that is it possible for you to just briefly explain your accounting standard in detail, please? I just wanted to understand this so that investors can understand how you show your financials, how many projects are in hand, and things like that.

Accounting standard, we follow the index wherein we follow the project percentage completion method. And currently, we have fixed projects ongoing for them of 5R in pipeline. And 14 years completed. So, there will be more than this. Individual, what do you, anything you require, I can explain more in detail if you require.

No, that sounds great for now. Thank you so much. Thank you. Thank you.

The next question is from the line of Divya Reddy, an individual investor. Please proceed. Hello. Am I audible?

Yes.

Hi, sir. So, my question is, can you provide an update on the field and inventory position across your ongoing projects?

Hello. Hello?

Yeah.

You want in 20 seconds?

Yeah, in 20 positions.

See, Rashmi Square has been nearly sold of around 80%. Okay. Rashmi signature has been nearly sold of 50%. Then goes to Rashmi Delight, Rashmi Delight has nearly gone around 40%. And other than that, Manoh sales is nearly around that 20-25%. And Rashmi, Airbnb and Rashmi Icon was just started to be much done hardcore inventory selling in those two projects.

Okay. And so, what is the current pipeline of redevelopment opportunities?

We have good opportunities going on. We are very skeptical into projects. We are evaluating, probably taking more, two to three projects in this year.

Okay, that's great, sir. Yeah, that will be all from my side. Thank you, sir. Thank you. The next question is from the line of Takshi Singh, an individual investor. Please proceed.

Thank you so much for giving me this opportunity. My question is, as the company is scaling up, so how do you actually plan to ensure that there is timely execution while also maintaining financial discipline?

We do the basics right. That is what I can say. We just don't focus. We focus more on the completion of the project and our decisions being the management team very small and tight. The decisions of the project are taken very fast. So there are no lapses or delays in completion of the project. So, that is one good thing which we have. Plus, the management also has weekly or visits at site for completion of the project. So, that helps us in delivering the project on time.

Also, I wanted to know that how are you intending to sense in your brand and also the increase the customer trust has the company changed us?

We are looking into projects. We are positioning our... Sending our brand in digital presence as well, in terms of making experiences. Now we have started a few things in terms of real estate where in which we used to not follow. So, in terms of we have investor meets, not investor meets, planning partner meets, we have broker meets, we apply all those so that the real estate market, our brand. It's now recognizable on all those sectors as well. Plus, now we have sale lounges and we are creating that. So, that all helps us in, you know, positioning the brand in a better way.

Okay. Okay. Thank you so much, sir.

That would be some insight.

Thank you. A reminder to all participants, anyone who wishes to ask a question, they trust our N1 on their telephone. The next question is from the line of Yes Parker, an individual investor. Please proceed.

Hi, sorry. Am I already done?

Yes, sir. Can you speak a little loud either or just a little slow?

Okay. So, I had a question. So, revenue grew around 20%, but EBITDA grew nearly 14%. So, our margins came from 22.3% to nearly 19.8%. How much of this is project mix versus construction cost pressure, and where do you see the sustainable margins normalizing?

I would say the major hit was because of the war. Because what situation happened, the cost of materials is really increased. There were panic buying, buying going in the market. People used material shortages were there, labor shortages were there. So a little hit has been gone on that side, but that has stabilized it now. So, now, this quarter, I think so, it will be on track what we have been showing. So, I don't think there will be major differences. We took hits in the first quarter, obviously because of this thing, of the war situation.

And so, as competition for redevelopment opportunities increases, are you seeing any deterioration in project economics through higher society expectations or revenue sharing requirements? And what minimum returns threshold do you maintain before taking on a project?

See, every project has a different feasibility because now there are various schemes which are going into redevelopment. First, five years before pipeline, it was basically one scheme only. Now there are different schemes. So what society is using, different economics comes of a different project, but healthy margins of around 20 to 30 percent should be expected in every project.

Right, sir. And, sir, you mentioned that one new project secured in quarter one, and four already in the pipelines. Could you give us the stage of these four opportunities, and their aggregate development potential and expected timelines for conversion or something?

If you see the ZV, all the four projects are nearly upwards of 800 CR. Which we have already given. It will be upwards of 800 CR. The projects are starting from now. The Rashmi Paradise will be starting in this quarter. Rashmi Gold and Sheetal probably in the third quarter. And at the Thar in the fourth quarter and Govindalvi, there are some government issues. Government has put stay in the whole area of that section of 500 meters. So, Rashmi's Govindalvi project is a little on hold. So, projects will be going into this year, starting this year.

Mm-hmm. Right, sir. And last question from answer. So across Square and Signature, which together contribute around 60% of our quarter one's revenue, are project margins sort of track with the original underwriting assumption or is it below because of the war?

It will be little below because both the projects were nearly at a stage where the projects were on a completion higher side. So we had to procure materials and everything during the worst time only. So margins will be little hit but nothing major. In terms of if you will see the overall picture, in terms of a two, two and a half year timeline, margins will be not majorly hit.

Okay. Can I ask one last question, sir, just related to capital? So, as we are, as the company has larger redevelopment projects, how should we think about capital employed, poor project, and the potential increase in working capital? What leverage feeling will the management maintain?

Practically, we still have no thought of anything because every project comes with a different economics. So what happens is every project has a different economics. So you can't, you know, plan everything accordingly beforehand. So we have not, the management has not thought into anything as of now.

Right. Okay, sir. That answers my question. Thank you so much for the opportunity.

Thank you. The next question is from the line of Uzair Hariniwala, an individual investor. Please proceed.

Yeah, thank you for the opportunity. So, I have a couple of questions. So, my first question is, you have a 10.11 lakhs to asset under construction and another 10.5 lakhs to asset in upcoming pipeline. So, could you please help me to understand the revenue and profitability potential embedded in this pipeline and what kind of growth we are looking for over the next two, three years?

See, in terms of, I told you, the upcoming, which I told you that, which is there, the GDP of the upcoming present is nearly in the stage of around 800 CY. And if we maintain everything, 90-20% margins which we maintain, so, profitability will be on those lines.

Okay, sir. And, like, during this quarter, how was the customer demand, particularly in the Mumbai retail market, and are you saying are you supposed to be larger or a more premium home, sir?

Every market is different. So, in Skandevili, Borevili, also larger homes, you have to make the project, you have to market the project that way. So, the demand is as such that if you market the project in a luxury segment, you will be getting clients in the luxury segment, and if you market it in a different way, so the project goes into that line. So, the demand has been there for both the size, being a luxury and being an economical flat as well.

Okay, and I also want some clarification on our two projects, Rushly Square and Rushly Signature. So, it appears in a very advanced stage of construction. So, could you please help me to update on the current booking and sales status of this project and what is the inventory remaining in this project?

The remaining inventory, I don't know the exact details, but I can just give you a percentage by this. In Rushly Square, around 80% of the inventory has been booked. And Rasul's signature, probably 65-70% of the inventory, 65% will be as in book.

Okay.

Okay.

Thank you.

Thank you. As there are no further questions from the participants, I now hand the conference over to Mr. Mahatma Gandhi for closing comments. Over to you.

Thank you all once again for your time and the thoughtful question. Today we have faced with the progress we have made this quarter as we continue to scale our projects reasonably while staying true to our core of value of affordability. We remain super confident in the growth roadmap we have laid for FY27. On behalf of the entire Moody's now name hunting, I thank each and every one of you for your continued trust and support. Thank you everyone and have a good day.

Thank you. On behalf of Modi's Navnirman Limited that concludes this conference, thank you for joining us and you may have disconnected lines. Thank you.