Lodha Developers Limited (LODHA) Q1 2027 Earnings Call Transcript

Ladies and gentlemen, good day and welcome to the Lothar Developers Limited Q1 FY27 Earnings Conference Call. As a reminder, all participant clients 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 call, please signal an operator by pressing star, then zero on a touch-to-one phone. I now hand the conference over to Mr. Chintan Parekh, Company Head of Investor Relations, for opening remarks. Thank you, and over to you, sir.

Thank you, Leo. Welcome to Lodha Developers Q1F527 Conference Call. Today, we have with us Mr. Abhishek Lodha, Managing Director, Mr. Prashant Bindal, CEO Lodha Residences,

Mr. Shashil Kumar Modi, Group Finance Director, Mr. Sanjay Chauhan, Chief Financial Officer. I would now like to invite Abhishek to make his opening remarks. Over to you, Abhishek.

Thank you, Chintan. Good afternoon, everyone, and thank you for joining us. I hope you're doing well. As we had laid out at the previous call, from this quarter onwards, the primary lens through which we would like you to assess Lodha is accounted profit after tax. The numbers that are audited, that flow into book value, and against which return on equity is actually computed. Alongside this, I would also ask you to watch operating cash flow because profit and cash together are the same. Please note that accounted profit will not be a trend line quarter on quarter. Under percentage of completion accounting, quarterly revenue is a function of three things that do not move in lockstep. Receipt of minimum sale proceeds I would like to highlight that land monetization is not an exceptional item for this company. It is a planned recurring pillar. We now hold about 660 acres in our data center park. Of this, of the first phase of 370 acres, we have already monetized about 130 acres, and we intend to further monetize about 150 acres over the next three to four years, which itself will generate close to 10,000 crores. an additional approximately 300 acres of optionality in our data center park. Further, through our land co, which is now shaping and coming together, we intend to monetize land for non-competing uses, for example, back office, where we have surplus land, like thus overall sales every year. In terms of our guidance for fiscal 27 on last year's PAT of $34.3 billion, and hence approximately $41 billion of PAT, Q1 has delivered ahead of the curve. We are not raising guidance on the strength of one quarter, but we will endeavor to offer cash, the number I would like to also talk about. Collections for the quarter were $42.1 billion, up 46% YOY. That converted to $18.9 billion of operating cash flow. After investments, 2.8% amongst the lowest in the industry, supported by our AA rating and 7A up. Funding all of our growth from operations while simultaneously deleveraging is, in my view, the pre-sales for the quarter were $46.3 billion, up 4% year-on-year. That is below our trend line, and I want to explain it properly rather than quickly. This was a decision, not an outcome. We launched almost nothing on the residential side in the first quarter in Mumbai of approximately $0.4 million square feet. In terms of where the Middle East situation stands now, the conflict has not resolved. Let me give you least NRI buyers represent about 4% to 5% of our sales, roughly a third of our total NRI business, and sentiment there remains subdued. There is an offsetting dynamic we think that is not yet fully played out. Uncertainty abroad is and will cause NRIs to see the same pattern from U.S.-based buyers for immigration-related reasons. Last year, about 350 billion INR flowed from India into Dubai real estate. A material part of that will now stay in India. Our supply chain is about 95% domestic, so availability has not been a problem. Energy-intensive input costs have risen. If the situation persists for a full year, construction costs to rise by between 1 to 1.5%, which spread across a 3 to 4-year build period and assuming no price response, is in project-level EBITDA impact of between 35 to 75 basis points. For context, our overall construction cost inflation since April 2022 leaves us is that a prolonged conflict increases uncertainty, and I will not pretend otherwise. But on the evidence in front of us today, the impact does not look materially negative to our fiscal 27 delivery. If Russia-Ukraine is any guide, this kind of volatility works itself out over the medium term, and we will, of course, keep you updated if that assessment changes. In terms of the rest of the year, we reaffirm our $240 billion pre-sales guidance for fiscal 27, and we expect each one to be 40% to 42% of the full year, as we had mentioned in the year itself. The balance of the year of the sales will happen in each calendar carries about 20-plus projects and phases, totaling approximately 250 billion of GDV, including our first launch in NCR, as well as continued growth in Bangalore and Pune. The Mulun-Airoli-Palawa Freeway opening, which brings Airoli within a 20-minute drive and Mulun within 25 minutes, As well as the Aparthane, the immediate outlook for Q2, a good start in July, and coming to data centers and our rent code. The most significant and investment fund into our green data center path at Palawa, joining AWS and STT. The transaction was concluded at approximately $420 million per acre. The previous transactions in calendar 25 was at land at Palawa has risen more than 15 times over the last five years. Three independent global operators, AWS, STT, and now Digital Edge India, have reconfirmed that this location is setting up greenfield data centers in India and perhaps in Asia. And that, as I had mentioned earlier, we hold approximately 660 acres of land in our green data center park with about 6 to 8 cents U.S. cents per transmission line and approval under the Maharashtra Green Integrated Data Center policy. Of this, about 130 acres has now been sold, and we expect to monetize a further 150 acres over the next 3-4 years at an average of about 600 million per acre, generating approximately 90 billion of further sales. This will fund the build-out of about 1 gigawatt of powered shell on approximately 90 acres, which will generate over 20 billion of annual rental income by approximately 300 acres, gives us further optionality. Let us build out on our balance sheet, and we will evaluate the same. To underline the capital structure of how we are building out, the data center build is largely self-funded from land sales inside the same park. It does not add to group leverage, and it does not compete with our DevCo for capital in any significant manner. On the broader NUT business, our exit run rate for June was a contribution from data centers. The target is over $30 billion, i.e. 10 times by Fiscal 32, of which about $20 billion plus will come from data centers, $6 billion from retail and offices, and about $4 billion from warehousing and industrial. Our estimate faces the land that has already been acquired and where development activity is already progressing. It does not take into account assets that are under development ahead of underwriting. The substantive part by restating what we are committing to. Our guidance of about 20% past growth over the medium term taking us beyond $85 billion. The runway is not our constraint.

Thank you, Abhishek. I hand it over to Prashant for his remarks. Over to you, Prashant. Hi, everyone. Good afternoon. As Amhishek indicated, we achieved a pre-sales of 4,600 crores for the first quarter. More heartening is that our profit for the quarter was best ever at Rs. 13, 1367 crores, more than doubling on a Y-on-Y basis. The call is no longer seen as just a bare necessity of shelter, but a lifestyle-enhancing investment decision. This has led to a significant expansion in the premium and luxury segment in the industry. This quarter was no different with a long share of our sales of almost 60% coming from premium and luxury segments. We remain the trendsetter in the Nagli segment across multiple locations and not only in South Mumbai, thus continuing to gain market share on a continual basis. The impact of this trend has further accentuated the importance of brand and confidence of the consumer on the organization's ability to deliver on its purpose. A brand with strong execution focus and ability to struggle across multiple segments will do well in the long run. I also believe that at some point, when the overall macro situation and inflation, as well as interest rates are conducive, the middle income segment will also start to do well. Thank you. Our property is very high. The consolidation in the industry is, I think, the single biggest trend. By some estimates, the contribution of the branded pair in MMR market is still sub-30. It was less than 20% five years back, and it has moved to almost 30% by end of 2025. But our view is that this number could easily go to 40% to 45% by end of the decade, as the weakest player with no brands keep exiting the space. This will keep the industry structure good for the branded developers like us and very good for the consumers because the consumer's basic expectation is a great quality product, product on time, and great services. And for that, you need resources, you need experience, you need expertise, and you need that operational strength. And I think Lodha is a developer. We provide everything on that regard. As far as the Lothar development business performance is concerned, as Abhishek pointed out, the biggest strength of our business is balance. The balance is how much business are you going to get from your existing products and how much business from the new launches. We have always kept the balance in the range that 70% of the business, 65% to 70% coming from the existing projects, and 30% to 35% coming from the new launches. And also, we try to keep balance between the geographies as well as the categories of the business. What this ensures for our business is consistency and in absolute consistent that that is what we have given over the last five years.

So typically, 30% to 35%, as I said,

of the business, of the pre-phase is given by new launches. But, you know, in this quarter, we have had no such launches, and despite that, we delivered a business which is in consistency. So, when you look at the overall business for the year and when you compare with the quarterly business, all the quarter one business has been driven mainly in the sustainable business coming all from the existing business. Most of the new launches will be happening in the second half of the year coinciding with the festive season. We have one launch that has happened in the month of July in Bangalore, and the kind of the first good results that we are getting there are extremely encouraging. And that reinforces our confidence in the structure that we have built on Sustainance Business as well as the new launches. We have six to seven. We have one more launch coming up in Bangalore, two in Pune, and we'll also be entering the NCR and two in MMR. And we are very confident that, with the confidence that the Sustainance as well as the new launches will take us to the yearly goals. You know, one of the biggest trends of ours, which is less understood, is our ability to innovate and being the first to bring in new products in the market. For example, we clearly identified a gap in the commercial market in the grade-A developments for sale product. We brought in our commercial for sale product in Worley last year, which was hugely successful and continues to drive strong sales. We are similarly also innovating new product categories within our existing projects. We are going to see multiple new project launches at Palawa as well as other locations within NMR and other cities. Even in Bangalore, where we did the new launch, we went ahead of the market curve and introduced the product at a price point, which was almost 30% higher than the existing price points available. But the consumers have clearly given us a huge confidence by really accepting the product. So just to sum up, in the first half, as Amhishek said, that we will achieve 40% to 40% of our guidance of the pre-sales and the remaining in the second half. So, if we see our basic strength is, you know, focus on profitability, our portfolio across mid-income, premium, and luxury segments are now well balanced with mid-income, which is anything below 3 crores, is now about 50% and remaining coming from premium and luxury segments. The diversity, this diversity and across the cities and categories helps us paper over any volatility presented by other factors such as conflicts in Middle East or impact of high inflation and interest rates on entry-level homebuyers. While pre-sales remains one of the key KPI for us, the biggest KPI is the profitability and delivery of the pack. With the brand strength, even more, pricing power continues to enhance even in the newer markets. In the near terms, we expect to enhance our pricing by 5% to 7% across different micromarkets over the year. This sort of pricing growth, which is still below the white-collar salary growth of 9% to 10%, keeps the affordability intact and helps in boosting the volumes. On the strength of our brand, we have the lever to further take the price growth up by at least 100 to 200 BPS, which will straightaway give us confidence in the margins. Our new markets are now performing very well with Bangalore now entering the growth phase. We are also starting the operating in the NCR. With this, we would have four cities which will be contributing to our pre-sales in 26-27. While MMR will remain our dominant home base, new cities together will start contributing our 30-45% of our pre-sales in the median term, which makes our portfolio even more balanced. The strength of the other positive thing that we have seen is that the conversion number which we are seeing, especially from quarter two from July onwards, is in upwards of 8% and above. And that is a very positive sign for us. And we believe that in long run, we hope to reach the holy grail of 10%. And once we reach the 10% mark, the kind of advantage it gives in velocity and more importantly, margins will be very significant. To sum up, we remain very confident of our, fairly confident of our delivering our guidance for the year. We have built a very granular plan which enables us to achieve the guidance and with the right margin delivery. With this, I hand over back to Chintan. Thank you, Chintan. Thank you, Vashant. Here we can open the floor for Q&A.

Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask questions may press star and 1 on their touchstone telephone. If you wish to remove yourself from the question queue, you may press star and 2. Participants are requested to use handsets while asking questions. Ladies and gentlemen, we will wait for a moment while the question queue assembles.

To ask questions, please press star and 1. Ladies and gentlemen, to ask questions, you may press star and 1 on your touchstone telephone.

We have the first question from Pritesh Sey from Access Capital. Please go ahead.

Yeah, thanks for the opportunity. A couple of questions on the data center side. Firstly, you know, just one to understand the value of the landfill that we did this quarter, and I'm assuming everything would have been recognized in revenue as well, And what kind of margins we are, you know, reporting for those land sales. That's my first question.

Hi, Pritesh. In terms of the value of land sales for the year, for this quarter, the total including the data center and some other sources of land sales was approximately 1,200 crores of pre-sales. Out of that, it is not 100% because there are...

Bad 600 crores. It's 60 acres. Everything falls under that MOU which we have with the Marasta government, or for now it's just 400 acres, and then we can expand to, you know, 60 acres. Okay, awesome. And just on the rentals part, right, I think earlier we had an estimate of, you know, 30 billion rentals coming from this powered shell that we are targeting. In the presentation, now I see 20 billion plus kind of a number. Is it, you know, just a conservative estimate, or, you know, this is something which is now revised downwards based on the transactions that we are seeing on market, or how should we think about it?

Pritish, there may be some gap in understanding. Our numbers have not...

Got it. So, for data center powered still, it would be 20 million per megawatt kind of annual rentals. That's it from my side. I have a few more, but I'll probably join back the queue. Thank you.

The next question, a request to participants to please limit your questions to two per participant. Should you have follow-up questions, we request you to rejoin the queue. The next question is from Abhinav Sinha from Jefferies. Please go ahead.

Hi. Good to see the strong P&L numbers that we have this time. Just a couple of questions on data center bid. So firstly, on the incremental size that we have allocated for the business, where are we on power availability, and what are you expecting on the demand side, which has prompted this big jump?

Hi, Abhinav. The demand environment for data centers continues to strengthen. We have to note that this is not demand which is national or regional. This is global demand. And as data center operators look to locate their sites, they will look at Virginia, they will look at Scandinavia, they will look at Johor, and they will look at India. So, therefore, from an Indian perspective, it's important to note that this is not about competition within India, but it is about how India can position itself and gain share at a global level. Given India is very critical, primarily in terms of time, because from breaking ground to getting a data center operation in India can be done in under three years compared to four and a half, five years in the West. As well as in terms of cost, where the cost of building power shell as well as turnkey shell in India is the fact that the government in India is very proactive, both at the state levels, and equally and more importantly, these factors in place, India is emerging as a strong location. You know, the reason for the expansion of our belief that the park has created immense co-operators, either STT, which is a TEMASEC and KKR subsidiary, and now Digital Edge India, which is a joint venture between Digital Edge Singapore and NIIF, which is supported by the government of India. These are all evidences of how important this park is to the global We now expect to further scale up our efforts to do development of clientele in the U.S., which is actually hope that we can further increase capacity. We think that in this segment, capacity, our direction of play, and so far that's played out. We also are making good progress towards the leasing of the first of our boxes, which will be held on our balance sheet. And we hope that in the course of this, in terms of incremental power, I would like to conclude by stating that the positive mindset of the governments and the regulators is very supportive of expanding India's data center capacity and our park and Navi Mumbai slash Palawa of India's budget.

That's very helpful. Second question on Palawa, but there seems to be some uplift in sales in the current quarter, and Mr. Bindar also hinting at better outcome there during the year. So, you know, what do you see as, let's say, the launch timeline of the premium inventory there, and can we, you know, see big price uplift this year, or maybe that can take another odd year?

Abhinav, we expect that the connectivity, which is ready, physically ready, will open. This will not only unlock the higher categories within residential, and therefore we can count on that starting to surface from the fourth quarter, though I would say meaningful might not be visible in the numbers till early next fiscal. But this will also start unlocking the land co-site because as this connectivity comes through and as we know that next year on 15th August, the bullet train is going to start operations on a part of its life. I would say is that calendar year 2027 is...

Thank you.

Thank you. Next question is from Kunal Lakhat from CLFA. Please go ahead.

The question is on the pre-sales guidance. You know, we maintain that guidance, and does that factor in the sustained impact of the Middle East war on the NRI demand? And if, say, hypothetically, at the war end, is there an upside potential to this guidance?

Hi. You know, this question is something which is very difficult for us to take form a view on because, you know, when will the war end? What will be the nature, quote-unquote, of the end? And how will that impact demand? I think, as I mentioned in my remarks, so far what we see is that the impact is contained. The duration has extended beyond what we assume, but we don't yet, given the other strengths, expect that in spite of that, we will maintain our pre-sales guidance. And let's review it once it actually ends and what that nature of the end is. Thank you.

Just on the data center bit, don't you expect the leasing activity for the data center to come in? And, you know, what kind of demand are you forecasting in terms of, like, would it be, like, simple racks slash cabinet demand, or it will be more, you know, so to speak, like, you know, hosting the servers and, you know, the end-to-end build-to-suit kind of demand. So what kind of demand are you sensing there?

In terms of leasing, as I mentioned in my response to Up and Out, we expect that the leasing for the first of the boxes within that one gig of PowerShell that we intend to build will conclude in this fiscal year. We are in talks with a couple of large operators for that and hope that there will be good progress over the next six to nine months. As we have laid out earlier, our current strategy is to move from the sale of land to additionally, in addition, building powered shell. That means that we build the physical, the activities after that, which is in the chips, those are not within our purview or focus right now because we don't really believe we yet have the technical competence. Now, it's only PowerShell and then the operators, the hyperscalers, the new. So, we are really looking at it from a very wholesale, not in the business, in the chips and the racks, which is highly capital-intensive, technological. We are not in that part of the business.

And just the last one, you know, on the data sentiment again, similar to the committed supply of, say, 3 gigawatts on the electric side that we have from state as well as national grid, Do we also have a commitment on the water supply side, especially considering the usual pressure on water resources that we have in Arash?

I think it's important to understand that water consumption in data centers does not use any fresh water. There is zero planned utilization of any fresh water in our green data center park. The reason it's referred to as a green data center park is because it will operate at amongst the highest levels of sustainable data centers anywhere in the world. And the water that will be used will be all recycled water. The Mumbai region, the MMR as a whole, generates about 3,500 MLD. I'll repeat that number, 3,500 MLD of recycled water, which is generally thrown out into the sea. Now, with the build-out of infrastructure and under the leadership of the Honourable Chief Minister and his long-term vision, a large part of this water, rather than being thrown into the sea, will become a revenue source for the municipal corporations and municipal councils by being redirected for usage of fresh water at any of the green data center parks. And it is about utilizing the water which would otherwise be thrown out, the recycled water which would otherwise be thrown out into the sea. If that 3,500 MLD was to be effectively used, Mumbai could probably support. Obviously, that's a long, long story, and we are not. But yes, we do have good availability of recycled water from the industrial areas around where our data center park is located. And again, I repeat, there will be a data center park will only use recycled water which would otherwise be thrown out into the sea and not use any fresh water.

Thank you. The next question is from Aakash Gupta from Namora. Please go ahead. Hi, I'm an audible.

Hi, sir. Congratulations on a great set of numbers. So my first question is with respect to your Palawa land parcel. Right now, what I understand is out of 4,000 acres, we have allocated roughly 600 acres towards the data center. My question is, is there a change in strategy for the Palawa land parcel where we move primarily from residential to more towards data centers eventually, where this mix, which is currently at probably 15%, eventually moves to 20%, 25%, or is there a constraining factor where this type of story can never happen?

I think, you know, we would all agree that, you know, and many of you have been tracking our company for long, that two years ago, our land at Palawa and Aparthane is usually valuable because this kind of large aggregated land and rare and 800 acres year marked for a significant amount of land other than what's been year marked for these two in the order of 3,000 acres, which is yet to be, and therefore can be allocated to whatever use makes more sense, including based on market demand factors and so on. Now, on the residential side, as a connectivity to Airoli and Mulun this year, significant upside in the residential demand as well as the price points. Further, we expect that the land go, that we have now sold the land in Palawa at similar price points, about 500 million coffees, things like that. So, there are various uses of this land, including, of course, the fact that the data center is now at about 600-plus acres.

Understood. That's the question I had. Thank you so much.

Thank you. The next question is from Gaurav Khandilwal from J.P. Morgan. Please go ahead.

Hi. Good afternoon. Thanks for taking my questions. I just have one question. I know that our focus metrics have evolved, but could we get some sense on how are the embedded margins this quarter, excluding the land sales?

Margins for the, excluding the Lancet for this quarter are early 30s mark.

Got it. So this is still within the guidance range of 32 to 34, which we had guided for this year.

That's correct. I mean, of course, the margins for what we guided to are the margins for the company. We don't guide to margins by any segment. So obviously, there is outperformance this quarter where the margins are much higher. But that's got to do with the fact that we've done in this quarter There are approximately half of the land sales that we would expect to do in the year. So that sort of forward loading has moved the margins up.

Got it. And just a follow-up question on land sales, are you having any discussions? How does the pipeline for land sales look for the rest of the year?

I think, you know, as I mentioned, the data center piece is gathering a lot of momentum.

Amazing. All right. Thanks for that. Those are all my questions.

Thank you. The next question is from Marikshit Kanthal from HTSC Securities. Please go ahead.

Hi, Abhishek. Congratulations on the land deal. My first question is whenever you sell a land, say a one-acre land to a data center plant, so how much care price do you need to incur on that on a cash flow basis? I mean, you did tell you made 40% margin, so I just want to understand how much cash flows that would result in.

I'll defer that question.

So, basically, from a cash flow standpoint, effectively, most of the sales price adjusted with the tax effectively gets to the cash flow on a net basis.

But do you need to enter any KPIs while selling this land to, say, a data center client? So, you have a historical land cost, and on top of it, you need to provide a minimum base again for some connectivity, some plug-in play kind of info. So, typically, if you have a RFQ for, say, 100 acres or, say, 1 acres, how much typical CAPEX would go on a per-acre basis to realize the 42 crore on that land?

Parishit, yes, you are right. Obviously, when we look at the overall infrastructure, we are not looking at the infrastructure for any specific particular box. That is more for the entire 3 gigawatt as of now that we are developing, and to that extent, yes, we would have certain expense, certain CAPEX to be incurred, but those are In the bigger scheme of things are not too material, but yet, let's say a number of more like 500 to 700 crore that we will incur over period.

The second question, Shavishai, we have already sold NAND to AWS, STD, and now digital. So, has some work started there, and a related question, so when we also start building out our data center in the course of next two, three years, So, will we compete with these players? How will it work or basically just want to understand that?

In terms of whether work has started, yes. Several of the players have completed their design and tendered their works and obtained their approvals and some of them have commenced physical activity at site. In terms of, we also expect for our own box to start physically. In terms of competing, I think it's important to note that data is not provided.

Okay. Just the last question on the key markets on the residential side. If you can help us understand, I mean, how is Bangalore behaving? What's your initial view on NCR? And even in MMR, especially on the luxury side, have you seen any improvement on the luxury sentiments? I think last quarter we had some fall through sales because of the geopoliticals. How do you feel the demand coming back now? Any initial sense on that?

Yes, I think in MMR, I think the impact of the start of the Middle East crisis, that has abated. So we've gone back to a normalized behavioral pattern in terms of the closure of high-value sales. Bangalore is shaping quite well. We had, as Prashant mentioned, a launch this quarter, and that's, you know, started off very well.

The next question is from Pitlup from MK Global. Please go ahead.

Good afternoon, everyone. My first question is on the data center, 660 acres that we have worked here now. How much capacity do you think that can be developed ultimately on these 660 acres? And for that full build-out, how much power requirement would be needed?

The evolving, because technology continues to evolve quite rapidly. The power density of land has changed quite significantly.

So how much power tie-up do we have currently?

We currently have tie-up for 3 gigawatts.

So 3 gigawatts, the data center we can build without any new tie-up. That is awesome. And second is, the question is, you know, on the overall competitive advantage, you and other players are also getting aggressively into data center. So just trying to understand, what is the competitive advantage for a player like you? So, is it primarily access to large, contiguous land parcels and type to power? So, suppose if a developer, say, some developer, hypothetically, he has both, say, a lot of land parcels in Navi, Mumbai, or Dombi Valley, and also has a power type. Do you think they can also become a competition?

Yes, so I think the primary requirements for this business are relationships that want with the various capacity builders.

Thank you. That's all from us.

Thank you. The next question is from Jatin from Bank of America. Please go ahead.

Great, thanks. This is Kunal. Abhishek, continuing on the previous topic, just wanting to better appreciate the doubling of land price point in 12 months. So how much of this would be coming from the fact that as demand for data center land goes up, the market itself is risen, and what component comes from the fact that, you know, you are able to offer something unique in the land parcel that you own?

I think it's important to note that the early price points that we offered were really to create the location. So I would say that we are moving more towards market price. We think fair market price is more about 50 for a modest amount of cost.

Got that. Thank you. And then just a quick follow-up. I heard you on the commitment or the access to 3 gigawatt of power that you already have. But we also hear that data center also needs access to power for long durations. So would you be signing up contracts with the power agencies for, let's say, a 10 to 15-year contract? Or would it be like in short bursts and then there might be the risk of price increase beyond that?

Thank you very much. We'll take that as the last question. I would now like to hand the conference over to Mr. Anand Kumar for closing comments.

Thank you, everyone. I hope all the questions were answered. In case you have any more queries, please reach out to either me or Chimpan Thank you very much.

On behalf of Loda Developers Limited, that concludes this conference. Thank you for joining us, ladies and gentlemen. You may now disconnect your lines.