Sobha (NSE:SOBHA) Q2 2027 Earnings Call

0:00 Ladies and gentlemen, good day, and welcome to the Sobha Limited q two FY twenty seven earnings conference call hosted by ICICI Securities Limited. 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 mister Adi Dev Chattopadhyay from ICICI Securities Limited. Thank you, and over to you, sir. Hello. Good evening, everyone, and I'd like to welcome everyone on the Sobha Limited call today.

0:45 From the management, as always, we have with us mister Jagdish Nanginini, the managing director, and mister Yogesh Bansal, the chief financial officer. I'd now like to hand over the call to the management for their opening remarks and comments. Over to you. Thank you. Thank you, Adesh. Good evening, everyone, and thank you for joining today's call for Q2 and H1 'twenty seven earnings. I extend a warm welcome to all our investors, analysts and stakeholders. I'll briefly highlight our business performance and key developments before I hand over to our CFO, Yogesh Pansal. H1 'twenty seven was the strongest half year in the Sobha's history with sales value of 5,862 crores, a strong 47.2% year on year growth. We sold 3,760,000 square feet across 2,260 units, with sales volume growing at 32.4%.

1:46 Sobha's share of sales value also reached a record of INR 4,874 crores. In Q2 FY 'twenty seven, this is our second highest quarterly sales of INR 2,206 crores, with a growth of 16 year on year with 1,420,000 square feet across eight twenty eight units. Average price realization improved to $15,522 per square feet in Q2 from 13,648 representing 13.7% growth. For H1, realization increased to 15,604 per square feet compared to 14,028 last year, reflecting our strong product positioning and favorable sales mix.

2:37 From a city market city performance point of view, Bangalore remained our largest market, contributing 3,385 crores or about 58% of first half of sales and NCR of about INR $19.74 crores, which is again about 34%, Kerala at INR $3.57 crores, which is about 6% and remaining cities at 2.5%. Following significant launches in Q1 and Q2, Q2 witnessed healthy sustenance sales, particularly from our launched project in Q1, Sobha One World and SOBHA NEOPULISE in Bangalore and SOBHA Crescent and Aranya in Gurgaon.

3:22 This demonstrates sustained customer demand beyond the initial launch phase. Overall, we are on track for our guidance and hopefully exceed in terms of sales for the entire financial year. Coming to new launches. During this quarter, we launched two projects, which is Sobha Boulevard, which is a project development project in Mysore and Sobha Bellevue, high rise and apartment project, about 4.3 acres, two ninety eight homes of about 830,000 square feet in Calicut. Overall, for the first half, we launched five projects across Bangalore, Gurgaon and Calicut, aggregating to 7,910,000 square the customer progress in world.

4:23 We are are quite very confident of launching at least nine projects, exceeding 11,000,000 square feet during the remainder of FY 'twenty seven. As of 09/30/2026, our unsold inventory stood at approximately 15,000,000 square feet, providing a healthy growth visibility. On execution front, we completed seven twenty homes, covering 1,490,000 square feet across nine wings and blocks in Q2. H1 completion stood at thirteen ninety one homes, covering 2,560,000 square feet across 17 rigs. Our balance sheet coming to cash flows and financials briefly.

5:16 Our balance sheet continues to be our key strength. We maintained a net cash position of about INR $3.22 crores with a comparative borrowing cost of INR 7.75% and remaining focused on sustaining a zero net debt position throughout FY 'twenty seven. We achieved our highest ever cash inflows for the both for the quarter and half year. Q2 collections reached more than INR 2,000 crores at 2084, and our net operational cash flow was INR $4.22 crores. This financial strength supports our future investments while maintaining prudent capital allocation. As of end of this quarter, we had 22,040 of revenue yet to be recognized from units already sold.

6:04 We expect while the quarter level margins appear lower, we continued as we continue to recognize lower margin projects and as we recognize future projects, which we are on course for completion and handovers, we are quite confident that our margins will significantly improve, and we should be able to deliver at least 50% over PAT over 50% growth of PAT over last financial year by the end of this financial year. During Q2, our contracts manufacturing and retail businesses generated about two twenty five crores, an increase of 31% quarter on quarter, and the external order book stood at INR $5.40 crores.

6:54 Our commercial rental portfolio contributed INR 24 crores in income during the quarter. We expect these businesses to maintain steady performance and with the scope for marginal growth. Also, in this quarter, as part of our plan to deepen our expertise in terms of execution, we have acquired a small business of fire and safety from Sobha Projects and Trade Limited, SPTL, and this would enable us to execute fire protection services across all our projects as we scale towards a larger volume delivery. With this remarks, I will conclude my opening remarks, and then I will hand over the forum to our CFO, Mr. Yogesh Pansal, for his remarks on the financial performance.

7:51 Good evening, everyone. Let me take you through the key financial highlights of Sobha's performance for the second quarter and first half of FY 'twenty seven. The first half has been marked by strong operational cash flow, continued investment in project execution and expansion of our development pipeline while maintaining a healthy balance sheet. We recorded our highest ever half yearly operational cash inflow of $40.09 crore, generated positive operational cash flow of INR $7.55 crore and closed September with a net cash position of INR $3.22 crore. Coming to cash flow. Operational cash inflow for the quarter stood at $2.84 crore compared with INR $2.46 crore in the corresponding quarter last year.

8:41 Real estate collection contributed $19.22 crore. Again, this operational outflow was INR $16.42 crore, resulting in positive operational cash flow of INR $4.42 crore for the quarter. For the first half, operational cash inflow reached 4,009 crore with positive operational cash flow of INR $7.55 crore. Construction expenditure continue to be an important area of cash deployment. During the quarter, real estate project related outflows stood at $8.26 crore, while sales and marketing expenditure was INR 103 crore.

9:29 We have made land payment amounted to INR $6.17 crore during Q2 and INR $9.87 crore for the first half. These payments are aligned with our objective of strengthening the development pipeline while continuing to fund existing projects. After accounting for land payments, capital expenditure and financing related movement, the overall net cash movement was negative $3.37 crore for Q2 and negative INR $4.86 crore for H1. Our operation continued to generate positive cash flow while we deployed capital towards existing projects and further growth. Moving to our reported financial performance. Total income for quarter stood at $10.17 crore compared with INR $14.69 crore in Q2 of the previous year.

10:23 Real estate revenue contributed INR $7.49 crore, while contractual manufacturing and retail operation contributed INR $2.25 crore. Quarterly EBITDA stood at INR 119 crore, representing a margin of 11%, while profit after tax was INR 33 crore. For the first half, total income stood at INR 2,347 crore EBITDA like INR $2.49 crore in profit amounting to INR 84 crore. Our gross debt as on 09/30/2026 stood $150.05 crore against cash and cash equivalent of INR $18.27 crore.

11:11 Our debt to equity ratio stood at negative 0.07, while our average borrowing was at 7.75. Maintaining financial discipline remain a key priority. We continue to focus on optimizing borrowing costs, maintaining adequate liquidity and balancing investment in new opportunity with the funding requirement of ongoing projects. Looking ahead, our existing portfolio provides meaningful visibility on future cash flow and revenue. As of '20 as of 09/30/2026, receivable from sold unit together with sale value of unsold inventory stood at 31,814 crores against estimated remaining project cost of 1,900 to INR 97 crore.

12:03 This represents project level marginal cash flow of 12,517. Including forthcoming projects, the projected real estate project level marginal cash flow increased to INR 19,748 crore. This will provide visibility on the potential of our existing development portfolio. To conclude, our priority remains clear, sustaining operating cash generation, progressing project execution, maintaining balance sheet strength and ensuring disciplined capital allocation. We remain committed to delivering sustainable growth, strengthening financial performance and creating long term value for our shareholders.

12:51 Thank you. Now we can open we can now take your questions. Thank you very much. We will now begin with the question and answer session. Anyone who wishes to ask a question may press star and then 1 on their touch tone phone. If you wish to remove yourself from the question queue, you may press star and then 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. Again, to register, please press star and 1. Your first question comes from the line of with HDFC Securities. Please go ahead.

13:42 Yes, sir. Hi. Congratulations on a great for the. So my first question is, in this quarter, we have seen very strong gross margins, almost 48%, maybe I think recent quarter highs. So is it right to understand now that the legacy low margin projects will be behind us? And as the deliveries improve from here on in the coming quarters, is this level of material is this level of gross margin is maintained, so you can see a sharp uptick in the EBITDA margins from Q3 onwards? Parikshit, the EBITDA margin as we go forward, like I said, the remaining the entire revenue to be recognized is close to INR 22,000 crores.

14:29 It has got excellent EBITDA margins. And we believe that we will be able to maintain our costs and be able to deliver those margins as we progress forward. So increasingly, you will definitely see an increased margins. And whether there's going to come from Q3, Q4, yes, they would. And like I mentioned in the opening remarks, as of now, we estimate that from a PAT point of view, this financial year, we will be able to deliver at least 50% of growth over the last financial year. And from the next financial year also, it's going to be even better. So overall, from a P and L standpoint, we're quite confident considering what we have done in terms of presales, the sales value that we achieved and the pace of development that we are doing and the handovers that the visibility that we have. So we believe that it's going to be an uptick from ours from now on. Also, in the previous quarters, I had guided that from Q3 onwards, this financial year, it should start looking better. And we believe we are on we should be on track for that.

15:55 Okay. That's great answer, Jagdish. As my second question, in this first half, we have spent a significant amount, almost INR $9.87 crores on the land outgo. So if you can help us understand how much was this for this current year new acquisition? And how much GDV we have added corresponding to this land CapEx? Yes. So yes, this financial year in the first half, we did spend the cash outflow for land has been significant. Close to about 30% of that cash outflow was towards settlement of old dues from for our existing projects, which is now fully complete. And any new cash outflow that would go from now on will be for addition of new lands.

16:51 So that's number one. Number two is, in the first half, we also added three more lands in Bangalore. And as and when they would we have started procurement of land. And as and when they reach the approval stage, they will become visible in the project pipeline. And I believe that it will take about one year, one years point for them to show up in that. And one more in Gurgaon. So overall, we have not given specific GDV for the investment that we have done, but we have done significant progress in terms of adding new projects in Bangalore, in NCR, and we had purchased one land in Mumbai.

17:39 So all put together, we have and remaining parts, which is that's about another 50%, remaining 25% has gone towards existing lands where we had to do consolidation and remaining payouts to the land owners. So is it right to assume like what million square feet does it mean it will be close to INR 9,000 crores in 1H? We will be able to provide that estimate separately, Parikshi. I don't have the GTV right now. Just the last question on the launch pipeline of Q2 and Q3 and Q4, if you can help us understand how much. So you did quantify in terms of million square feet. So in terms of projects and sizes, if you can help us and split that into Q3 and Q4, that will help.

18:30 Yes. Q3 and Q4, we have tentatively about, like I said, about eight projects that we can we are looking at launching, three in Bangalore, one in Hyderabad, one in Chennai, one in Gurgaon, one in Greater Noida and one in Thrushore. All of them put together, they will be about INR 12,000,000 odd crores, and that might be about a value of close to about INR 18,000 crores. And in Q3, specifically, you can call out some large projects in Q3, which are the ones that you can name a call out? And also on the RADAR, what is the status for these projects? Yes. So these are highly time sensitive in terms of approvals. So we are on track for some of them, but you never know what's the next surprise that we might get.

19:20 So I would it's while Q3, we are confident of doing at least two to three projects of these. I'm hoping that it can be higher and probably half of this in Q3 and half of this in Q4. But they are very, very tight in terms of time lines, any slip up here and there because of any reason, they might quickly go towards Q4. That's number one. Number two is even while we might get all approvals, we might choose not to launch them for better preparation and better response. And hence, even like, for example, this time, even though we got the plotted development approval for Boulevard in Q1, but we actually chose to launch it in Q2 so that we can have a slightly better preparation. It's a smaller project, but at the same time, the same approach, we will be able we would take further larger projects and also the new launches.

20:23 So while approvals are one aspect of launching a project, some preparation for that also is required. So Q3, Q4, in both these quarters together, we should be able to do these launches. And we are fairly in advanced stage in terms of all approvals for all these projects. Any specific projects that you can call out, that would be helpful. Like I think Crystal Metals was one which was spending for quite some time. So if you can name some projects for Q3. I mean, you have high visibility on getting approvals and launching. So that would be helpful for our analysis. Yes. We can give those details separately, Prakash.

21:08 Okay. Sure. Sure. Thank you, sir. And I'll join back. Thank you, Parish. Thank you. Ladies and gentlemen, we request participants to limit to two questions each, and we join the queue for any further follow-up questions. Your next question comes from the line of Parvesh Ghazi with NuvaMa Group. Congrats on the great set of numbers. So my first question is, I mean, you mentioned about 11,200 crore as the GDV of in H1. Ballpark, what would have been the yield in H1 from these INR 11,000 odd crore? So from our sales of about INR 5,800 crores, what we have done in the first quarter first half, sorry, about 70 odd percent has come from the new launches.

22:12 Sure. And the second question is, you've also given segment wise breakup of our H1 sales. Roughly 36 odd percent has come from ticket size above 5 odd crores. And I think that ties in with the general trend of premiumization in the industry. Now looking towards H2 and the 11 odd million square feet of launches that we're looking at H2. In general, what would be a segment wise split of these 11,000,000, 12,000,000? Good question, Parviz. I will not generalize like that because it's heavily dependent on the project mix and the kind of product that we initially launched.

23:02 And the sales value that we are achieving in the last few quarters, majority of that sales is coming through new launches. So considering the mix of the new launches, it typically varies. Like for example, you can see, even in Q2, the mix from about 36 odd percent of the total overall H1, you can see that greater than INR 5 crores is only 26.2%. So there are certain projects that do contribute to higher ticket size. But the launches we are going to do in the future, they are largely I mean, there a huge mix of all across ticket sizes, mainly between, I would say, between INR 2 crores to 5 crores. So hence, whenever you see a spike in terms of in the higher ticket sizes, that might be because of good traction in that particular segment in that quarter. But overall, if I look at, again, the inventory that we have, so majority of that inventory would lie between INR 2 crores to 5 crores, I would assume it's more than 70%.

24:22 Sure. And last question, fair to assume that this INR 5 crore plus ticket size would largely be in the NCR? Yes. You're right. Most of the units that have contributed to more than INR 5 crores are from Gurgaon specifically. And we have one off projects in Bangalore and in one of course, what we have in Mumbai as well. But you're right, majority comes from our NCR or Gurgaon sales. Thank you. Your next question comes from the line of Girish Chaudhry with Aventus Park. Please go ahead.

25:09 Yes. Hi. Good evening, Jagdish. Good evening. My first question, yes. So you've seen strong sustained sales, right? And on that specifically, if you could give some more details on the Hoskote project. I mean, what kind of sales we have seen this quarter? And how and when are you thinking about the Phase II launch? Evening, Girish. So entire project is a very large one. We have overall value of about INR 7,500 crores. And we have done over INR 2,500 crores till now. And that too, we have not launched all the towers in the project. But the response to the project and sustenance of that is quite good.

25:59 Similarly, in our projects in CR as well, what we have launched in Gurgaon, specifically Crescent and also Aranya, that's where we have been doing the project for the last two years. So things have the sustain sales have been good. And also this quarter, the sustain sales in one of our projects, Sobha New Polys, which was quite flat for the last one point five years or so, has picked up quite well after we started completing our towers and handing over to the customers. So the sustained sales are, again, quite steady. And we see that as a positive sign for projects where we have launched and also seeing steady traction.

26:49 Got it. Got it. Any thoughts on the Phase II launch of post coating? When you say Phase two launch, exactly what you mean? The total GDV I believe the total GDV of the project is INR 7,000 plus crores, right? So yes. So in this quarter itself, we launched one more tower. And so that will take us to almost 65% of the total inventory being released and a little lower and as we progress towards higher sales, I mean, more inventory getting released and also consumed, we will keep releasing based on two factors.

27:39 One is on the extent of sales that we are seeing. And second is the kind of the development plan that we have. So on both these based on both these parameters, we'll keep releasing the inventory. It's not that we have specifically Phase II as a separate launch that we would do. We would do tower wide launches going forward. Got it. Got it. That's helpful. And my second question on the acquisition of Sobha Trade and projects, if you could give us more details around what's the profitability debt of the company? And also, I mean, going ahead, how do you see the numbers? I mean, does this require any CapEx?

28:27 So if you can just give some details, how should we look about this acquisition? Sure. So our projects and trade, we are acquiring the fire and safety business profit. So which in which essentially, the fire and safety business has been delivering about 70% of its business has been for Sobha itself. So and they have an order book of about INR 180 crores now, of which, again, 70% of that is Sobha's projects. As we scale, we believe that there are both from a strategic and financial point, it makes sense for us. Strategic will just help us increase our ability to coordinate better and also deliver faster for our projects. That's number one. Number two is from a cost standpoint, it would take a little bit of cost because there is a GST benefit that we currently lose.

29:31 There is a certain ability to procure better through our scale of operations and some of the synergies that we might bring in. So with that, some the cost reduction can happen, and hence, that will help us. So overall, we think that it is quite help quite strategic and advantageous for us to have this business within our own operations. Lot And a of this is going to significantly increase from here the on. And from a margin point of view, I mean, there is not going to be no CapEx involved because it's a services business and whatever CapEx is already there, that's good enough. And going forward, if at all, if there is any working capital requirement that we will have to fund it. But otherwise, there is no additional incremental investment that needs to be done apart from what we are doing at the time of acquisition.

30:45 Got it. Thank you. Thank you. The next question comes from the line of DeepLab Debharma with MK Global. Please go ahead. Hi, Jagdish. Good evening and congratulations on the strong quarter. So we see that in the forthcoming projects, have now three MMR projects. Last quarter, it was one. So just wondering what would be the where you have acquired these two new projects? And overall, what would be estimated GDP of these three MMR projects? I mean, I think there is a slight confusion there. We should have corrected it. Actually, three would three is actually two. One is additional FAR or, let's say, saleable area that we would load into the existing one after what we have already leased in, which is an ongoing project. And second is the new project.

31:53 So actually, that addition of that new FAR is coming in two stages, and hence, we counted as two and plus one is the Chandivili project three. So that's a clarification. So you have added Chandivili projects? Yes. So our the land acquisition for Chandivili is complete, and now we are at the design stage and going forward for the approvals. And how big would that project be like in terms of GDV, 1,000 crores or INR 800 crores? Yes, about INR 1,000 crores is what we estimate. Okay. Okay. And my second question is on the margins. You have guided the margins will see uptake from 3Q onwards and will be very healthy in FY 'twenty eight onwards. So could you give us some insight like when you see uptake now currently it is in single digit.

32:51 Should we expect, say, the second half or third quarter, fourth quarter onwards, something like 15% consolidated basis for EBITDA margin? I mean, what range the margin would be? And FY 'twenty onwards steady state, what kind of consolidated EBITDA margin should we expect? From a for the second half of FY 'twenty seven, I think the EBITDA margin should fairly be much higher than 15% for the whole of FY 'twenty seven. And from FY 'twenty eight, of course, I have been mentioning in the previous calls also that it will go towards 20% and beyond.

33:40 See, one of the main reasons for us, like probably I have mentioned it previously in the previous call, these current lower margins are or at least it's visible like it's lower margins is because of four to five factors. One, in I mean, particularly if you see this quarter and the last quarter, the or specifically this quarter, what we could recognize as the revenue itself has been lower because of handovers that we could do and also the completions that we did, it's a part of cyclicality in terms of in some quarters, it will be more and some quarters, it might be less. But over a period of time, they would normalize. Whenever we recognize a lower revenue, however, our fixed cost in terms of overhead and also the elevated sales and marketing costs will continue to be there. And hence, you can see a lower margin. And as the new revenue that scale of revenue that we will start recognizing, those would normalize. That's one.

34:47 So second is also is that the some of the new projects that the projects that we would recognize in future are the ones where we have our own land and there, the margins would still be far superior than typical projects that we do. And those will also start contributing much higher. And third is we still have some of the old projects where the margin is lower. And till the time we completely recognize those, those will pay down on the overall margins. That I think in the next two quarters also, those will reduce quite a bit. And the effect of the higher margin projects will start looking up from next two quarters. And also, will as I mentioned earlier, it would be an upward curve in terms of overall margins, and it should stabilize over about 20% plus in terms of EBITDA.

35:50 And you have done exceedingly well in first half in terms of pre sales, almost INR 5,800 or 900 odd crores. And considering seasonality, that's what we see the trend second half does always better than the first half. So does it mean that simple arithmetic, will cross 12,000, 13,000 of prepaid in this financial year, considering we have seen decent sustained sales. And also, we have a healthy launch pipeline. So what's your thought on it? Yes. Both factors, like you mentioned, can contribute to a good sales number.

36:42 So hence, we would hope and also not we will work towards exceeding what we have given as a guidance from a sales point of view. If all of the factors come through, then definitely, we should be seeing much better than what we have guided at the beginning of the year. So both factors, which is sustenance sales being strong and new launches being successful, we should do much better than what we have guided. Thank you. The next question comes from the line of Murturja Arciwala with Kotak Securities. Please go ahead.

37:30 Hi, Satish. Just a question on your segment sort of financials, when we look at the numbers, there is an other unambiguous expenses, which is reasonably large, generally across quarters between 7% to 10%. How should we think of it when we think of EBITDA margins, the other annual incremental expenses? What is the nature of these expenses where we can't be apportioned to either the resi or the contract and manufacturing segment? That's my first question. Evening, Mukhita. So these expenses, you're talking about is can you help me where you what numbers are you looking at? So if I look at the reported financials, for instance, in the second quarter, we have other unallocable expenditure in the consolidated segment report of INR 977,570,000, right, which on a net revenue of about INR 9,600,000,000,000.

38:33 So it's about 10 in the current quarter. Yes. That's essentially the overhead expense, which is a fixed expense for us on a quarter on quarter, which is essentially including our own staff and overheads and also part of marketing and incentive that we pay out. So that should it has two components. One is a fixed component, which is for fixed overheads, which is inflationary or as we probably slightly lower than the growth that we are experiencing. Second is the second part of it is directly proportional to the sales that we will end up doing.

39:21 So shouldn't we allocate the sales related expenses to part of either the real estate or contract and manufacturing? I mean, I'm just trying to appreciate that when we look at your segment results, which is a few lines above that, it obviously shows slightly better margin. And when you look at the consolidated, which is a combination of the real estate and contract and manufacturing, where the margins may appear even weaker because one takes into consideration the other allocable expenditure. So I'm just trying to understand how do we better appreciate this particular line item? Sorry, you are right. Most likely sorry, in this part, I would like to clarify again. Sales and marketing expenditure would remain in the real estate segment. This is unallocable expenditure is largely the overheads that and we that should be quite flat or let's say inflationary in nature.

40:26 Okay. Okay. The second question is generally when I think of your business mix, what proportion of your projects would be through a joint development agreement where there is a share of revenue to the landowner versus projects which are doing 100% sort of outright purchase of land and there's no share of payment to the land, because the outright purchase. So like is it a eighty-twenty, is it a seventy-thirty, what's the mix between generally speaking, not a particular quarter or a particular year? Sure. Yes. On an aggregate level, out of overall sale or the inventory that we have, roughly eighty two percent eighty two percent to 85% is what is our share in the sense.

41:17 Typically, the I mean, as an overall example, is 50% is, let's say, own projects and the remaining 50% are joint development projects. The joint development, let's assume it's a 35% landowner share, then it's roughly 17.5%. So about 82.5% is what we take as our share. In terms of projects, it would be roughly fifty-fifty, half the projects that you would do through joint development mechanism, half would be kind of all? As of the current land bank and the of the projects that we plan to launch, yes, that's the case. At an aggregate level, it is about 80% to 83%. Yes. Got it. Got it. Thank you so much.

42:13 You, Mathur. Thank you. Your next question comes from the line of Prakash Sheth with Axis Capital. Please go ahead. Yes. Hi. Thanks for the opportunity, Jagdish, and congrats on a good assessment quarter. Just a couple of questions. One, continuing the previous question on the unlockable expenses. So that has increased considerably versus last year. Last year, full year, we had INR 200 odd crores. You know, in first half itself, we have done one ninety. You know, reason for that and, like, when you talk about 30% as the project level EBITDA margin, you know, should we then exclude another 10%, which would be the corporate overhead and your EBITDA margin should be around 20% for the resi segment is what how should we look at or yes, so some insights on that.

43:11 Good question, Pritesh. I do not have the exact details of that. Can we get back to you? Sure. No worries. I'll take it offline. Second question on the launches. So I think when we talked about the contribution of launches in first half, that was 70% of the current sales. So we would have done roughly INR 4,000 crore from the, you know, launches, which are around 11,000 crore of total GDP. So we have sold 40%. But in this, we had one large project that was Sobha One World, which would have, obviously, in terms of proportion would have been lesser.

43:57 Wanted to understand if there are, you know, any such large projects planned in h two, which have a GDV of more than 3,000 per order, at the launch time itself. Just trying to understand how should we think about the velocity that way? Yes. Right. So when we take a when we do a launch of the project, the we typically do take the entire value of the project as part of the launch value instead of taking what's been released. So hence, you would tend to see that it is a smaller portion of the overall. And specifically, like you mentioned, it's for a larger project, it is more prominent.

44:43 So the some of the projects that we project pipeline that we have, which is over 3,000 crores, we have one such project in Bangalore, which we plan to launch it this in the second half. That should be also of similar size, slightly lower similar or slightly lower than the One World project. That's one. And second, there is one more project in Bangalore, which we plan to launch towards the end of the year. That also will not be maybe INR 3,000 crores, but towards INR 2,500 plus. Sure. So two projects of large size in second half?

45:31 That's right. Sure. Okay. Okay. And just one last on the approvals. While I think it's business as usual for most of the cities, but specifically checking for Chennai, after the new government came in. Any delays in terms of approvals that you're noticing or considering they just came they've just come in and trying to settle down. So what are the time lines for Chennai launch that you are seeing now? We have very limited presence in Chennai. We are planning to launch one project in the next half. And we have just completed one project in Sobha, Akbar. And most of the approvals even after the new government has come in has been quite swift.

46:19 We have not experienced any kind of delays. In fact, it's quite quick in terms of transition and business as usual. Got it. Fair enough. Okay. That's it from my side. Thanks and all the best for the second half. Thank you, Pritesh. Thank you. Your next question comes from the line of Parikshit Kandupal with HDFC Securities. Please go ahead. Yes, with this, thanks for the follow-up. Sir, just to clarify, so when you said 15% margins, EBITDA margins for F4 of was it for FY 'twenty seven or second half of FY 'twenty seven? Second half of FY 'twenty seven. Okay. And the other question is like how what is the deliveries planned for H2 FY 'twenty seven, if you can help us quantify million square feet or in value. So how much deliveries you are looking for FY the second half?

47:15 Overall, our plan for deliveries this year is about 6,000,000 square feet. So which would mean, again, we have already done close to INR 2,500,000, 6,000,000. So about another INR 3,500,000 is what we plan to do in the second half. This will come in, that means almost 10,000 or INR 11,000, it will be about INR 3,000 crores 4,000 crores of revenues for second half? Yes. In that, we will have to take, which is our share. That will be one. And second is, while we complete this, does not necessarily translate into handovers, which at which point, we actually recognize the revenue. So there might be some inconsistencies there, but largely, what you are saying is our ballpark numbers.

48:11 Okay. Got it. And just a last thing, if you can, given what is happening on the geopolitics on interest rate increase macro. So how are you looking at your macro markets? Surprisingly, Gurgaon has been holding up despite everyone on them is calling out that will be the first market to go down that's been holding up quite well. Developers are reporting good sales, sustainable sales has been strong. So just wanted to pick your brain next couple of quarters or three to four quarters, how do you think the macro market will behave? It's very difficult for me to comment on what exactly is going to happen on macro. But clearly, there is certain caution related to what's happening in terms of interest rate increase and a combination of geopolitics and AI.

49:09 There are several factors which can lead to, let's say, someone being a little cautious. But when we look at the data in terms of what's the interest level that we are seeing on a leading indicators basis, which is our inquiries and visits to marketing offices. So they seem to be quite steady. And like you're seeing, substance sales seems to be quite good. So if there is any further worsening of it, then it might be different or any positive thing also will turn to be even better for So I see it quite positively in the sense that even in spite of these negatives so called negative sentiment being playing out, most of the leading indicators seem to be quite steady, and what we are seeing on the ground seem to be quite good. Interest levels are high, and that's quite positive, which, in fact, means that if there is any kind of positive events that would turn out that can turn out from here on, then things can be even better than what we are seeing today.

50:33 So you are seeing good demand across your markets like MCR, Bangalore, Mumbai, Tucson, right? The key markets, I mean, the demand continues to remain quite strong on the ground for you? Yes. We see that it's quite good. There might be pockets, some of the projects where we have one project cities. There, it might be specific to micro market, specific to project. But otherwise, overall, I would still think that we are quite the overall demand seems to be quite steady. No, the project is doing well now. I mean, the one which we have launched in 1Q, I think, towards just when the politics started, the war started. So have you are you seeing good momentum on the sustaining side there?

51:20 Sobha, Rivauna, it started out well. I would not say that it is that we have seen a rapid start. But post that, we launched the project in March of last financial year, which is in the midst of just what has begun, and there was quite a bit of caution in there. So it started out a little slower, but the interest levels are quite good and sustenance is the demand and the walk ins that we are seeing is quite robust. And hence, we have started to make good progress to site as well. So I would see it's an end user market specifically for that project.

52:07 And I believe that it's going to be a very steady project in terms of sales and overall completion of the project. You. The next question comes from Bhapla Deeparma with MK Global. Please go ahead. Just one small clarification I wanted. I think I missed that part. So in the second half, what is your pipeline in terms of GDV and million square feet? I missed that part. Yes. Because we have about eight projects that are lined up and say about 12,000,000 square feet should at the same average price of about INR 15,000 crores, it's about INR 18,000 crores.

52:53 Okay, okay. Thank you. Thank you. Ladies and gentlemen, that was the last question for today. I now hand the conference over to the management for closing comments. Thank you, everyone, for joining today's call. Vishu and your families a very happy Vijayadashmi. I hope we have answered most of your queries. For questions where we said we'll have to revert to you, we will do so very quickly. And for any other further questions, please reach out to us. We'll be happy to take clarify those. Thank you, everyone, and wish you the best. Thank you. Ladies and gentlemen, on behalf of ICICI Securities Limited, that concludes this conference.

53:40 Thank you, everyone, for joining us, and you may now disconnect your line.