Puravankara (NSE:PURVA) Q2 2027 Earnings Call

0:00 Ladies and gentlemen, good day, and welcome to the Puravankara Limited Q2 FY 'twenty seven Earnings Conference Call hosted by Daulat Capital. As a reminder, all participant lines will be in the listen only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Please note that this conference is being recorded. I now hand the conference over to miss Savita Singh from Dollar Capital. Thank you, and over to you, ma'am. Thank you, Aldrich. Good morning, everyone. I am Savita Singh on behalf of Dollar Capital.

0:49 Welcome you all to the Q2 FY 'twenty seven earnings conference call of Puravankara Limited. I would like to thank the management of management for giving us this opportunity to host the call. Today from the management team, we have with us mister Ashish Puravankara, managing director mister Malana Sadhu, CEO South Mr. Rajat Rasturi, CEO, Western Commercial Asset and Mr. Neeraj Bhattam, CFO. I now hand over the call to the management for their opening remarks. To you, sir. Thank you, Savita. Good morning, everyone. I am Niraj Bodham, Chief Financial Officer of Puravankara Limited. Thank you for joining us to discuss our second quarter and first half FY 'twenty seven performance.

1:34 Our results and investor presentation are available on the stock exchanges and our website. Please also refer to the forward looking statement disclaimer in the presentation. The central message this quarter is that stronger sales are being accompanied by better collection, faster customer handovers and a meaningful reduction in net debt. These developments are important because for a real estate company, sustainable growth is not measured by booking alone. It must also be in execution cash generation strength of the balance sheet. Coming to our operating performance. This quarter, we recorded pre sales of INR 2,762 crore, up by 109% year on year on sales volume of 2,380,000 square feet. Average price realization rose 32% to INR 11,607 per square feet and customer collection grew by 24% year on year to INR $130.01 crore.

2:31 For the first half of FY 2027, total revenue grew 60% year on year to INR $19.22 crore. We reported a profit after tax of INR 107 crore. Residency and commercial sales for the period stood at 3,575 crore. In addition, we monetized approximately 5.46 lakh square feet of commercial office space at Puravankara for an asset value of INR $6.26 crore, which is also reflected in this quarter's fee sales. Together, these take our total sales achievement for the first half of the year to 4,200 crore or 37.5 or 1% of our annual sales guidance of INR 11,200 crore.

3:17 Our growth is therefore supported by both our established South India base and increasingly meaningful contribution from the Western markets. Now coming to the collection and execution. Customer collection rose 24% to INR $130.01 crore in Q2 and reached INR 2,500 crore for the first half year, up by 31%. These collections are important to sustaining construction progress and managing our funding requirements. We handed over nine seventy seven homes covering approximately 970,000 square feet during the quarter, taking first half handover to seventeen twenty two homes. Consistent delivery remains priority both for our customers and for the conversion of our development activity into recognizing earnings.

4:04 Our priority is to preserve this connection between sales, construction, collection and delivery rather than treating any one metrics as a full measure of performance. Coming to our financial performance. Revenue from operation rose to ten thirty three crore compared to INR $6.44 crore a year earlier. Total income increased 59% to INR $10.51 crore and EBITDA was INR $2.89 crore, representing margin of 27%. Profit after tax was INR 82 crore compared to the loss of 42 crore in Q2 FY 'twenty six. For H1, total income grew 60% to INR1928 crore and profit after tax was INR107 crore against the loss of INR111 crore a year ago. The quarter includes an exceptional gain of INR149 crore, which we distinguish from recurring operating performance, higher handover supported revenue recognition and our focus remains on improving the consistency of earnings over time.

4:58 Coming to the cash flow and capital management. Our direct cash flow statement shows an operating surplus of INR $5.96 crore for Q2 and INR $4.13 crore after net interest and tax. We also made meaningful progress on leverage. Gross debt declined by approximately INR 180 crore to INR 3,763 crore, while net debt reduced by INR $4.70 crore to INR 2,366 crore. Net debt to equity ratio to 1.26x and our weighted average cost of debt declined to 10.94%. In September, we completed the Puravankara exit at an enterprise value of approximately INR $6.26 crore. This reflects our focus on recycling capital from mature assets to support future growth. The transaction is reported separately from the regular project retails.

5:48 Coming to the development pipeline and outlook for the rest of the half year. At the end of the September, our ongoing portfolio comprised of INR 30 three 0.6 one million square feet. We also had a planned launch program of INR 14 0.5 million square feet with an estimated GDV of approximately INR22600 crores subject to approvals on launch readiness. During H1, we added development opportunity with an estimated GDV of INR14100 crores across Bangalore, Mumbai, Greater Noida, strengthening both our redevelopment portfolio and the geographic reach. Our FY 'twenty seven sales guidance remains INR 11,200 crores, including the Genentech transition. First half sales asset monetization totaled approximately 4,201 crore equivalent to 37.5% of our guidance of this combined value basis.

6:34 For the remainder of the year, our priorities are to execute planned launches, sustain collection, deliver homes on schedule and improve capital efficiency. We remain committed to pursuing growth responsibly and creating lasting value for our customers and shareholders. Thank you for your time. We'd now be pleased to take your questions. Thank you. Thank you. We will now begin with the question and answer session. Anyone who wishes to ask a question may press star and 1 on their touch tone 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 a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question comes from the line of Deepak Puravankara with Swan Investments.

7:30 Go ahead. Hello. Hello. Yeah. Hi. Congratulations on a good set of numbers. Yeah. And thank you for the opportunity. Firstly, wanted to check it out in terms of the launches this quarter. There were the three launches. Out of this, for the Miami, in this quarter, we have sold 17% of the inventory. What about the Western and Ikemen? What percent of inventory was sold out during this quarter? And if you can also throw some light on Miami, I mean, how should we see the sales momentum as... Was it... This project was launched at the end of the quarter and hence, sales momentum was low, or how should we look into Thank you. Thank you, Deepak. I'll just talk about the three launches that what we have had. The one which we had is Puravankara Heritage, and and I think we've had a good sales around 30% was what we we sold during the launches.

8:30 And the other one is Equinox six and this is part of the larger development that we have in Bangalore, which is a 6,000 units complex, wherein that we launched six towers of the last towers of the 6,000 units. And again, it's a continuing sustenance, but with the new launches, and I think we've had really good sales in that also. And Rajat probably will talk about Miami. Hi, Deepak. So just to answer your question, Miami was launched... In fact, we we we... It's a prelaunch stage of Miami. We got the data in August, and that's when we started meeting clients. The the product has got phenomenal response. As you understand, this is ultra ultra luxury product. The current price on which we are doing transactions is all in the range of $1.55...

9:18 1.55 lakh rupees of square feet. So it's it's a high end product. It's getting excellent momentum. A lot of our tractionites have come and seen the product. As I must say, the construction is going on. And even at this stage, while the demolition was going in the month of August and September, we were able to transact close to around three transactions during this period. So it's very encouraging to see Puravankara doing so well in the ultra luxury segment of Mumbai. Okay. And secondly, see, if I were to see on your launch pipeline, it's heavily tilted on the s two, especially if I were to look into the Mumbai, some of the big ticket project like, all these are lined up in the s two.

10:07 And even though in the Bangalore, there is a lot of hell... Healthy pipeline. So just wanted to check it out how confident are we in terms of launching this project, where we are in the role process on these big ticket and as well as on the Bangalore pipeline. And putting it all together, see... I mean, looking at the presales in action, we are at a run rate of 3,500 crores, and we have a guidance of 11,200 crores. So Yeah. So confident are we... And if you can share the perspective in all these aspect, please. Deepak, so the 11,200 crore rupees of launch program that what we have done, what we have given the guidance that what we have given includes $6.50 crore rupees of commercial commercial revenue sales.

10:55 So that Rajat is going to talk about that. With regards to the residential sales and reaching INR 11,200 crores and as you know that we've already reached 37.5% of our target. So in Bangalore, we've had some challenges with regards to approval because of upgradation of the approval system, the paying computer system. So and also that in Vinworth in Kochin, I think in a day or two that we should be able to get our RERA approval. So I'll just take you through some other things that Winworth III that is in Kuchin and we should be able to get RERA in the next two, three days. And so it should be a launch in this quarter itself. Then we have Grand Hills. Grand Hills, we already received the development plan approval and which in all possibility that we should be able to launch that without fail in the fourth quarter.

11:47 Henur Road and this Henur Road is again in the last approval stage and after that is RERA and I don't see going beyond this month. So then we have Kanekapura Road that is today I think we will get the approval and in the next one week or ten days we should be able to get RERA. So there are quite a number of projects and as you know that in the South alone that we have around, we had given a guidance of around 12 projects or so. So even some of them may actually push to the next year, but largely that most of them will come in this within this year. And we are quite confident of reaching where we want to reach in terms of the guidance that what we have given. Rajat will talk about the rest of the things.

12:33 Yeah. Hi. So on the on the West launches for the project, we will receive all the requisite approvals. We're expecting the radar to come by November 20 or maybe slightly earlier than that. So definitely that launch is happening in this quarter. They're not about all the approvals are in process. We have... As as we have targeted, we're gonna be looking at the launch in quarter four. And so is Kapare with the with the approval process is moving ahead. There might be might be a chance that corporate might move to April, May for next financial year, but right now, it looks intact. We're working towards targeting a quarter full launch as well. So from the West Side, I think all the launches that we have planned both in Bombay and Pune look on track right now, except for the fact that corporate might move into quarter of next year.

13:22 To summarize, I think that, you know, we have our pipeline is quite long and, you know, quite strong. And even if, as Rajat said, one project may go to fourth quarter and the two, three projects may go to the next year in South also. But our guidance remains intact and we're confident of reaching that guidance. Yeah. You're right. I I... And just to add to what you said was that Deepak, I mean, just to add to the numbers are including the commercial was around INR 11,200 crores and crossed INR 4,000 crores with our commercial exit. So we seem to be actually on track with our... On our run rate and our plan. Okay. And on the cash flow front, if I were to look on your collection, see, excluding this commercial sales, our...

14:13 If I were to look at your presales in first half, we had grown at a 46%. Whereas, if I'm looking into the pure play racing collection, that has grown at 25%. So if you can just help us understanding this collection part, and also if you can also give a guidance about the collection and operating surplus after tax and interest, how should we look into this as a year? Deepak, if you look at, you know, the pre sales and collection, there is a there is a very relationship of pre sale collection. However, if you look at what this q four... Our q four last financial year and q q one, the substantial sales which we have done in a new project, which is Northern Light and best project in Australia. And the collection and these projects we have awarded the contract in Q1, customer started. So we'll be hitting some collectible mix, collectible milestone in this quarter. And hence, the large sales were done in two, three large projects, their collection will follow this quarter and coming quarter and then there's on the way. We have to hit the milestone and start do the billing and collect the amount.

15:20 So that is explaining our collection. Coming to our operating surplus, the operating surplus this quarter includes our certain collections from the general EBIT as well. However, as you see, we have been generating operating surplus quarter on quarter basis. And this quarter, we'll be meeting our operating surplus guidelines also and as well as overall collection guideline as well. Okay. From the year as a whole, how should we look into the collection and operating surplus after tax? We have given guidance that about we'll be doing a collection about 6,000 crore for year as a whole and operating surplus. We had done last year about I mean, we'll be crossing INR 1,000 crore mark as operating surplus. It should be.

16:14 Okay. So in this, considering this cash flow moment, how should we see net debt by end of this year? Debt reduction is a choice, right? I have the day if you have surplus, so then basically you can put that into the business development. If there are very good opportunities as you can see that in our we are growing as a company more than 30% per annum. So which means that our debt has actually come down by almost INR400 plus crore rupees and when our portfolio size is increasing and our debt is intact or reduced, which means that is a total reduction in any which way considering how the company is growing. So depending on what kind of opportunities the world presents in terms of business development, then we will take the call at that point of time. But having said that, our endeavor is to reduce the debt as much as possible like the way we have done in this quarter.

17:15 Okay. Now touching on the business development side, this time we had two big big acquisition. One on... In the NCR market, which is a new entry. And second is Gorengo Gorengo project in Mumbai. If you can just share your thoughts. I mean, firstly, from the NCR point of view, how should we see launch pipeline and approval there, approval process here and when it should get launched? How is the demand environment, and what was the broader thought thought process for the NCR entry? And secondly, on the Gorenga project, I mean, when should we expect the launch of this project? So, Deepak, the first NCR market, as you know that I think, firstly, as a market in in North, probably the market, there is a definitely a kind of a gap in terms of top branded developers being there. And I think for PURVAKRA entry into the market or the NCR market as a whole, I I think it's something that I think there is a lot of aspiration people over there to get a quality that Puravankara can provide.

18:26 So for us also, I think as a growth market, we've got this opportunity to to buy this land from the authority, which is the greater authority in which the MIC is the area that we bought the land. And we are very hopeful that, hopefully, by end of quarter four or maybe early quarter one, we should be able to launch this. So so I think we're already in the process of submitting our design approvals, etcetera, and we should be able to launch it in next six months to eight months is what we are looking at. We're subject to the approvals coming in. So we're very positive. I think there's a great market. Lloyd has... A lot of brand developers have been great sales in that market, and we obviously look forward to having a pie of that market. Coming on to Bhangranagar, since you're... You know, it's a it's a great market to be there. Bhangranagar, and we've got these two good societies that we have won the mandate last month.

19:18 And I think we should be considering it's a 33 line scheme, which is a cluster scheme. We should be able to get the approvals between period of around eight to ten months from end to end. Because first, we'll go for the development agreement closer and then for the submission of the approval. So between eight to ten, we should be looking at a launch of these two societies. Thank you. A reminder to all participants, you may press star and one to ask a question. The next question comes from the line of Rohan Joshi, an individual investor. Please go ahead. Yes. Hi, sir. I'm audible? Yeah. Hi. Hi, Roh. You are you are audible? Yeah. Okay. Hi, sir. Firstly, congrats on the great set of numbers. So my questions were about the... Like like, what is the company's target to the new land acquisitions to, like, for the full year of '27?

20:08 Like, will the management continue prioritizing the outright acquisitions of land, or will it increase the, like, joint development end of things for redevelopment opportunities? Yes. As you know that in this year that we have done around INR 14,000 crore of total acquisition, right? And with Western North, Narajat is going to talk about it. And in South, we have done Mandur, some INR 2,300 crore piece of GDV and Sannamanikara INR 800 crore and Southeast Bangalore, we have done a project where INR 1,100 crore piece of GDV is there. Similarly, Dodegubi and Sarjapur are in excess of INR 1,000 crore. So our target is to make sure that whatever we sell and that needs to be replenished and plus plus. So what guidance we have given is INR 11,200 crore. So we should be doing at least around INR 15,000 crore rupees of land start growth of GDV acquisitions that we are supposed to do. At this point of time, we've already reached there almost.

21:13 And but again, growth is growth wherever we find greater opportunities we continue to go and acquire. As far as your question is concerned on whether we are going to be buying the lands or we're going to do the joint development agreement and it's again a business call with regard with in respect of what kind of margins are out there in each of the project. And you know when when when when the the buying opportunity is better than the the the cost of the money opportunity. So then you're going to go and do the purchase. And also when you see that, because it's a long cycle, four or five years is what the project is going to take. If we see that that area has got better chances of price appreciation, we definitely want to purchase and joint development agreement and the choice of the landlord as well and also that with less capital investment that we can do a larger GDV. So it's a combination. It's what gets presented and we evaluate on a case to case basis.

22:22 Rajat? No. I I totally agree with you. I think I... For example, in Mumbai, there's a... The opportunity lies only in in in redevelopment, and that's where I think we go and do the development. So if you look at the market, we've done... We bought something directly from the authority, which is where the... This is the way things work in the market. So I think it's it's all upon on the geographies. Also, as in Malano rightly said, it also makes... How it makes economic sense for us between our internal guidelines, how things fit in, and then, we take a call. So we are we are agnostic of what side of kind of kind of transactions we do. It depends upon the opportunity which lies in front of us. Okay, sir. Got it. Thank you. And then the questions also, sir, you're talking about redevelopment in Mumbai. So I just wanted to ask one question that since redevelopment, of course, doesn't require outside land acquisition, so, like, what percentage of cost does Puravankara pay on that? And is this cost enough to offset the tenant compensation and the additional any... Or salary that you have to pay for a renewal of the... Like this unit economics?

23:27 So so we've done a lot of studies in terms of the cost of a renewal by the land if you would have gone ahead and buy the land. So just to put you in perspective, if we go up and buy and do a little busy buying the land, incur including the tenants and the members cost and corpuses that we pay, the cost comes around 40% of the overall land value. So if you look at the numbers, I think that's where the saving comes up. Approximately 60% of your capital is saved if you do the development. Initial outlay. Okay, sir. Got it. Got it. Thank you. That was from my... I will follow-up back in the queue. Thank you. The next question comes from the line of, an individual investor. Please go ahead. Hello. Yeah. Sir, thank you for the... Yeah. Thank you for the opportunity, and congrats for the great set of numbers. I have a couple of questions. Firstly, what are the minimum thresholds, certain thresholds that IRR project margin or ROC we target while evaluating new land acquisition?

24:30 Yes. So I mean, we want more as usual. But anything the GP is the gross profit that anything less than 25% is not what we are looking at. And so all of our new deals are in excess of 25%. And sometimes it can be a little bit lower around 20% if it is a joint development agreement where we are not taking the capital risks. So that is the margin that what we look at when we are underwriting a project. I hope I answered your question. Yeah. I got it, sir. And secondly, what is the gross development margin or project level EBITDA margin that we get on redevelopment? And how it differentiate with the greenfield projects? So Rajesh? I'll answer that, I think. So I think the real trend... In fact, I think the... Since the initial outlay in a different project is is slightly lower than a typical land buy, etcetera, I think.

25:28 And, of course, it depends on which kind of which location in Mumbai you're trying to do a real difference. If you're doing in South Bombay, for example, as a location, your margins are typically in the range of around 30%. Whether if you do something in a in a suburban market where the ranges are between 22 to 25%. So it depends upon the location. It depends upon the deal that you've got. But, typically, if I have to give you a ballpark benchmark, it's going to be... It's around between 22 to 30% is where your numbers lie. And if you compare with the greenfield project, I mean, frankly speaking, in Mumbai market, first, I'm talking about the Mumbai city market. I think getting a greenfield land and and doing development on it, I think the numbers look really, really scary right now. There's hardly any good opportunity out there. So I don't think it's a apple to apples comparison. But if you look at the greenfield product, if you look at the MMR region, will be in the same numbers as as a retail margin, even 20% to 30% margins.

26:20 Yeah. Yeah. Sure. And, sir, lastly, my question is regarding the Puravankara's sales proceeds have been embarked towards debt reduction and how much will be deployed towards ongoing construction and new and acquisitions? Neeraj? Yes, yes, sure. As you can see that during this quarter, we have reduced our net debt of INR $4.70 crore. That includes our repayment of INR $2.50 crore, the debt which was lying against our Puravankara asset and some of the other loans also we repaid out of proceeds of that project exit. And the remaining money we have utilized judiciously in the various working capital of the existing project. And also other point you can note that as both of my CEO said that the kind of the business development they have done or we have done during the quarter and half year, despite this business development, there's no increase in the rather we reduce the debt.

27:18 So that reflects that we utilize the proceeds of the... This project in the... Repaying some of the debt and some of the money lies towards meeting the cost of the acquisition as well as the working capital for the company. Yeah. So hope that answers your question. Yeah. Yeah. That answers my question. Thank you, sir. Thank you. The next question comes from the line of Rahul Singh with Eternal Capital. Please go ahead. Yeah. Hi. So firstly, thank you so much for the opportunity. So just wanted to understand a little bit, and you can correct me if I'm wrong. So the company is estimating almost 1,600 to 700 crores of surplus from the commercial project. Right? And what are the assumptions that we are embedding in this calculation?

28:04 So let's say something like occupancy, capitalization rates, any value what are you estimating? Yes. Yes. I'll give you detail. It's we are referring while we're seeing estimated surplus from our commercial project, we are referring to our only one commercial asset, which is Puravar City, which is completed and where which is OC received and we are in the process of leaving. While we are determining surplus, we are capitalizing the rental of at $6.65 rupees per square feet at a cap rate of the 7.875%, and that is how we estimating our surplus. Okay. Perfect. Any leasing timelines? No. I mean, the... Go ahead and... Okay. Rajat is there. Rajat. Rajat. So so so I think we're looking at...

28:50 We've got a good pipeline already. We fulfilled in lot of RFP... RFPs right now, and we're looking at the 100% leasing business in a period of around six to eight months. Okay. That's fantastic. Perfect. And just one another question. So what are the expected annual rental income over the next three to five years for the lease commercial... Ongoing commercial projects? And what is the split between our direct selling and leasing for the commercial side of things? So so first and foremost, I mean, the two assets that we are now, one is Aero City, which is OC, and as a phase two of it, the new asset that we're starting with the in Bangalore. Both these assets are for annuity income. We are not looking at selling that. If I have to give you a perspective, once both these assets are 100% ready and leased out, we can expect a annual rental of approximately 330 odd crores from these two assets.

29:40 Okay. Got it. That actually answers a lot of the things. Thank you so much. Really helpful. Thank you. The next question comes from the line of Deepak Puravankara Swan Investments. Please go ahead. Yes. Thank you for the follow-up opportunity. Just wanted to check it out on the financial front. See, if I want to look into your margin profile in the books of account, especially for the EBITDA margin, In the first half, it has come down to 15 to 16%, and one of the reason I can figure it out is the other expenses is close to the 22% versus last year, it was 16% odd percentage. If you can just give the broader sense, how should we look into the... I mean, from the handover perspective, things are shaping up very well. But from the margin perspective, how should we look into it?

30:34 No. See, my... See, it's a function of couple of things. If if you look at as a project level, our weighted average EBITDA margin is around 30% across our project, our JD project, our own project and projects in different geographies. That is as per as you can go by each project, what is the EBITDA margin I'm generating. Looking and coming to our reported profit and loss statement is concerned, if you look at that, we are reporting EBITDA margin of between 25% to 27% quarter on quarter basis. This quarter also about 27% is our EBITDA margin. Because if you think that exceptional item, that's not that I would request you to look at differently. Our project is also one of our project and it was open for sale and as we given guidance beginning of the quarter that I was selling that project as in my inventory.

31:23 However, in a manner we sold, restructuring a manner that is why it's been an exceptional item for all accounting regulation. Otherwise, it's a like any other project which we have sold. So our EBITDA margin 27.5% is improving whatever sale we have and we will recognize during the quarter. Why? There's a difference between other expenses. Other expense is comprised of some of the expenses which we do for all the sales and marketing expenses, all approval costs, all raising taxes in the sense we pay that is incurred under other expenses as per the three of the format of financial statement published by the company's. And if a quarter, if they are as you've given a guidance that we are launching six twelve project in South and four project in West, so that requires payment of various approval expenses and initial marketing costs and that is clubbed under the other expense. That is why compared to the previous quarter, other expenses is more.

32:23 I hope I given appropriate explanation. Thank you for the explanation. And if I were to look on the commercial portfolio as a whole, firstly, on the completion of this IPO, did we receive the entire money or still something needs to be received? And secondly, for the Ebel and Aero City project, what is the kind of CapEx we will have to incur to generate the rental income of INR330 odd crores? Rajiv, should I give some input? You can take it over from there? Yes. Yes. So as far as coming to the starting from the Gen Tech, Gen Tech, we have received the entire consideration. However, some it is expected in a manner of some amount we are expected to receive as a deferred consideration by making a small amount about INR 57 crores to INR 60 crores, which we are going to receive as a deferred consideration by meeting some of the leasing obligation, etcetera.

33:15 So beside the profit or the cash flow, which we earn from this transition, we have a further room or opportunity to get another INR 50 crores, 60 crores out of that transaction, which will come this quarter by next quarter. That is as a generic discussion. Coming to Aerocity, Aerocity almost 95% of CapEx we have already invested, only 5% to 7% of the money is yet to be invested, which are some capital item and which is linked to the leasing, etcetera. And we have already received the OC and it says ready for leasing. So there is no substantial or any major CapEx needed for Aerocity. Coming to Hebbal. Hebbal, we have just finalized the acquisition means as a land cost is either paid or provided for 100%. The entire construction costs will be needed once we develop the business model.

34:02 I think some more input others can give in terms of what kind of building their planning and then then the construction cost will have our CapEx. But as far as the land is concerned, 90% has has been either paid or provided for. Yeah. Absolutely. So so just to add to what Nida said, after the line cost, it will require close to 700 crores for the 1,300,000 odd square feet that we are developing over there. And I I think Deepa was referring to the phase two of Aerocity, which is approximately nine lakhs square feet, which is the total composition of Aerocity. That, I think, would need around 450 odd crores. So if you look at broadly around 1,150 crores over a period of next four years will be required for construction finance of these assets. Okay. And finally, on the residential market demand environment, if you can share on both of the micro market, how is the footfall in conversion at this point of time?

34:56 If you can share the prospect on the demand in in Mumbai as well as Bangalore market. Yeah. I'll go first for the South, and then Rajat will speak. So you... As you can see, you know, what is residential sales is dependent and particularly in the markets where we are in the South, is dependent on job generation. And if you look at the off take that we have in office and it's again, last year was a record and this year is even a bigger record. So which means that the jobs are not regularly getting generated and then of course you know underlying thing is the big the city, the migration from rural to the cities that is happening. And so that's one part of things. And if you look at the other side of consumer sentiment and if you look at what has happened in the sales of the cars, is again, that is also record high, which really means that people have a lot of confidence in where the country is moving despite all the problems that we have in the world.

35:59 So that I don't see that we have any kind of slowdown or whether some people use the word phasing out of the demand. I don't see that and it will continue to be there. And also that we always talk about the consolidation that we used to be 200,300 developers and now we have maybe 10, 20 developers in each city doing the work. And so as a listed player with fifty years being there in the business and with a strong... The track record and the brand value that we have, even if there is a shrinkage of five or 10% in the total demand across the country, I don't think that we will get affected by that. That's my view. Rajat?

36:45 No. I think I totally second what Malala is saying. I mean, I can talk on the West Side, probably Mumbai. See, first and foremost, I think our strategy in Mumbai market is very clear that we will be catering to all kind of segments in Mumbai. So even if there is certain segment, which is, say, example, today, the less than two core segment is is a bit slower than the the segment which is, say, more than five core segment, we want to be present in all the segment located to all kind of customers so that we have even growth across the Mumbai market, number one. Number two, I think, yes, there can be some midterm reasons for regarding the best Asia war or anything that's happening. But I think the long term, as Malala rightly said, we we we are we are pretty sure that the demand is going to be there. There's lot of lot of opportunities in the market for a brand like Puravankara to grow.

37:32 And we're very hopeful that adding our numbers will continue with the same CAGR the way we've been growing in last two years. Okay. Thank you for patiently answering my questions. Thank you, and wish you all the best, and wish you happy Diwali to the entire team. Thank you. Thank you, everyone. To you too. Yeah. A reminder to all participants, you may press star and one to ask a question. The next question comes from the line of Vishal Singh, an individual investor. Please go ahead. Hello. Am I audible? Yes, you are. Yes. Good morning. And thank you for this opportunity and congratulations on a good set of numbers. So I just had a question on a presales front.

38:17 So our Q2 presales increased roughly 60% year on year to INR 2,000 odd crores, right? So like could you explain how this growth came? Was it from volume or realizations? Or was it from new launches versus sales from existing projects? Like if you could give some clarity on that, sir. I think the combination of everything. First is that the hard work that we had put together in acquiring these land parcels. And also that the Bichwa Raghavish got launched and even though that the launches that what we planned did not go as per the plan, but we still had some decent launches that has contributed to that. But in our sustenance, we continue to sell well because, as a company that we come up with some really good products and there is that brand value and so those are the kind of things that have contributed to the overall thing. And mostly if you can see that in a Bangalore and Mumbai are the two cities at this point of time, which are the last contributors.

39:24 And in both places that we see that our performance is very, very good on the back of whatever the project that what we have. And the cities are also doing well in terms of their local economies. Rajat? Okay. Okay. Thank you. And another question I had on the pipeline front. So you mentioned in the investor presentation that our launch pipeline has become quite big. So like how much of this pipeline are you expecting to be launched in the second half of this year versus in FY 2028, sir? So I think that we gave a guidance of around INR 20,000 plus crore rupees of total INR 21,000 or 22,000 crore rupees total launches that what we had planned.

40:10 And we are still sticking to that number that where we were and where we are. So maybe there may be some projects that may go out of the out from this year to the next year. So at least INR 15,016 thousand crores projects will be launched in this year. So overall, I don't see that our launch pipeline is quite strong. Apart from that, that we have done quite a bit of business development in this year alone that we have done around INR16000 crore of business development or INR14000 crore of business development. That those things are not listed here. So those things are again for the next coming year in FY 2028, that's the pipeline and the project that get missed in launching in this year, they go to the next year.

40:58 So you know, the the... I wanted for all the people who are listening, and and and I want to give them that assurance that next year launches will be even more stronger than this year because of the pipeline that what we have created. Okay. Okay. Thank you so much. That's it from my side and congratulations on the good set of results once again, Thank you so much. Thank you, sir. Thank you. Ladies and gentlemen, I would now like to hand the conference over to the management for the closing remarks.

41:46 Thank you, everybody, for joining our earnings call for the quarter. And wishing all of you a happy Diwali and happy festivity going forward. Thank you so much. If you have any further question, any information, please write to us. We are happy to answer that. Thank you. Thank you, sir. Ladies and gentlemen, on behalf of Dollar Capital, that concludes this conference call. Thank you for joining us, and you may now disconnect your lines.