My first question is on your strategy for Three Sixty North in Gurugram. Do you intend to launch and sell everything upfront like most of the other Gurugram developers, or do you want to follow a more calibrated strategy of selling over a longer period of time?
You know, we haven't really dwelled that deep into our strategy. We want to see how we are received in Gurgaon. It's a new market for us. We've set a certain internal target which, given the way, there is buzz in the market because everybody knows we are coming, I feel, you know, we are in for some exciting time there.
Just on Gurgaon, obviously it's a big launch and it's your debut in the North market. Any sense on pricing, ticket size, GDV, sales value that you can give? And are we all set for a 1Q launch or it could move towards the festive?
Okay. To start with Three Sixty North, let pricing be a little bit of a suspense. We are still not ready to divulge. We have a very good idea what we want, but we don't want to divulge the price. So, we'll hold that. Everybody now knows that we are doing very similar to a product that we've done which is Three Sixty West. So the sizes are big. These are 5,000 plus and 8,000 plus square feet apartments and they're like they're really top on luxury. You must have read in the papers we've also appointed L&T as our contractor. So, we are good to go on that and demolition happening at a good pace as we speak.
My first question is with the entire pipeline, the launch pipeline that we're talking about, is it fair to assume that FY27-FY28 we should be able to deliver a double-digit growth in sales?
Frankly, it could have been possible this year also had we been able to launch Three Sixty North. So, obviously, the numbers would have been much better. But again, like as a company since we don't give any forward-looking statement or pass any of those, I would refrain from saying anything. But yeah, I mean, everybody can do their math and figure out what we will actually be at if these things play out.
When I look at your residential price between Goregaon and Borivali, so the price delta is not really that much. But if I were to compare the mall rentals, then there's almost 30%-35% delta. At some point over next 12-24 months, do you expect this mall rental delta to narrow, or is it how the market structure is?
So, Borivali has just started. Goregaon has been here for more than 15 years now. So, the rental difference is also because the renewals are already they have already kicked in, some of them terms are over. So, we are literally able to reset the numbers. In Borivali, we'll first have a renewal which will probably be a 15% over whatever they signed us at. And then 5 years later, some 10 years later, some 7 years later, there's a reset of rent. So, that part of it will probably play out only after 5 years. I'd say you'll see a exponential change in numbers.
And then secondly, on Three Sixty West, FY26 where you sold 10 units versus 17 in FY25. So, clearly there is some slowdown in the Worli luxury market. In that context, how should one think of monetization of the balance 2.7 lakh square feet of inventory? Earlier you were confident of exhausting this by FY28. So, should we now build in a longer period here?
You know, again, like I said that now we are the only ones holding that inventory. And hopefully at least within Three Sixty, we don't have any competition. So, this should now pick momentum. I'm hoping that it'll pick momentum now — everybody loves it, and there's enough demand and we've seen, whether it's me or my partner, ex-partner, they've been able to sell that.
And secondly, if you can also talk a bit about where are you in terms of approvals for Adarsh Nagar?
Adarsh Nagar, we are awaiting IOD. I mean, within like a week or 10 days or let's say two weeks, we should get it.
Okay. And then what are the steps from there on?
Business as usual. We should be applying for CC. A lot of work has already been done on that account also. So, three more months for CC and then we can break ground. Once we get CC, we will apply for RERA, then we are good to go.
Any timeline for evacuation of existing residents?
As soon as we get all the approvals, and that's been our strategy everywhere. Once we get 100% approval, we only then ask the existing residents to move out, you know, so that gives them good mental comfort and security also.
Lastly, any update on the progress for the I-Ven land parcel?
I-Ven, we will be, in fact, have applied for renewed CC and you will physically be seeing work in the next 30 days starting.
My first question is, if I see your premium projects, Three Sixty West saw decline in this year as a year as a whole on the pre-sales. And even the new tower H in Borivali did not see a great response unlike Elysian which did relatively much better. So, are we seeing an impact of West Asia crisis on our pre-sales?
Okay. So, firstly, let me begin by Borivali. Very good observation. Firstly, we have just delivered seven, I mean, literally five towers. We've given possession. We have three more towers which, you know, F and G you know, were launched last year and then a year before that. There's enough inventory in within the project itself which is kind of ready or under construction. So, obviously, this eighth tower was received, but I would say it was received well. We only opened limited inventory there and it received well. We priced it high because we ourselves didn't want to rush into too much of sales. As far as Elysian goes, you can see that, you know, this project has been on for the last 15 years. Three Sixty also, I mean, there have been enough launches within Worli. So, and moreover, you know, whatever was the residual inventory of our partner, even that's now sold. So, within Three Sixty, we are reasonably, I can say, monopoly now and we will now start getting traction.
Okay. So, what will be the launch pipeline for this financial year? I mean, high visibility projects?
We are planning to launch Three Sixty North. We are planning to launch a small development on Carter Road, Oceanic. We are we have topped up this again another small project at Malabar Hill, Fairview. We will be launching Tower D of Forestville. These are all four launches in this first quarter itself. Then we have Jardin Tower A which will be launched in Q2. We'll launch Ralliwolf, Mulund in Q2 as well. Adarsh Nagar could be Q2 or Q3, you know, so safely Q3. Enigma, we have a commercial building, we might look at doing strata sale, that also will be launched in Q3. Aurelius on Pedder Road could be Q2 or Q3 or something like that. Again, if things go well, RLDA within this year itself. So, lot on the pipeline.
If I see the pending launch pipeline, a lot of them are 80,000 per square feet to 1 lakh and above, you know, pricing kind of product. Just one question on how would we differentiate such that we don't cannibalize our, you know, product and demand in each of these projects?
Very good question. In fact, very mindful of that. We do have Forestville Tower D, we do have Jardin Tower A, we also have Ralliwolf. These are three projects which are much lower in value. Like we are talking about Rs. 3 crores and Rs. 5 crores — within, you know, Rs. 2.5 crores, Rs. 3 crores and then Rs. 5 crores apartments. But yeah, I mean, you know, and we have this luxury, you know, bit to go. But again, here what we will be doing is even within this area, let's say when we will launch Tardeo, we have a beautiful land parcel in Tardeo, there we are really looking at a ticket size of Rs. 12.5 crores to Rs. 15 crores. And then, you know, when you go into the Adarsh Nagar and all that, that probably is like the Rs. 50 crores, Rs. 60 crores mark.
Just on the RLDA, have we decided on the mix of how much would be for leasing and how much would be for sale considering we will be launching it for sale in Q4?
You know, what we realize is that there are very few Grade A developers willing to sell commercial. So, we feel that if we strategize and do strata sale, we will end up doing really well and it will be great for the cash flows also. So, we will focus on RLDA being a sale model rather than a lease model. So, again, the percentage is not decided. It could be 50-50, it could be 60% sale and 40% held back or whatever. But by and large, we want to do a sale model. We see, in fact, big houses approaching us and wanting to do a stand-alone building for us.
And the second one's more on the balance sheet for Saumil. When I look at your balance sheet in other current liabilities, the advance from customers seems a smaller number and then there is other, other current liabilities. Just some color on that that's moved much between March '25 and '26?
Hi Murtuza, Saumil. So, the advance from customers is purely the advance that you receive from customers. This is — at times customers end up giving you a couple of instalments in advance and all of that. So, if you look at that Rs. 82 crores versus Rs. 97 crores, so I think that's the smaller number that you're referring to. So, not a material movement in that one. The critical one as you have pointed out is in the other current liabilities which is from Rs. 1,855 crores to about Rs. 2,700-Rs. 2,800 odd crores. A large component of that or the largest component of that would basically be the unrecognized revenue. So, this will flush through P&L under the percentage completion method.
The next question I have is with all the BDs that we've done, how much are we looking for in terms of capex cash outlay which is yet to be completed in FY27?
See, most of our land parcels do not require us to pay cash up front. Either it's like even RLDA, we have until 2038 to pay. So, there's a small component that goes upfront and everything else is linked to revenue generated and then passed on to them or a finite date which is much later. So, we genuinely don't have any like major cash going out for land acquisition. At least not in the current ones that we spoke about.
The other thing I wanted to check with you is are you seeing any impact from the West Asia conflict at all, whether in terms of customer interest, especially for the higher ticket size apartments, or on your construction front, are these impacting your raw material — raw material construction expenses or anything at all across any part of the business?
Thank you for asking. Yes, costs are going up. And luckily, we literally, we really make sure we have a lot of contingency built in when we do our budgeting. But yes, costs have gone up. Energy cost has gone up, aluminium has gone up, glass has gone up, labor's become expensive. So, all these are — and then again, I mean, availability of materials become a bit of a challenge. So, these are stressing us out. But like I said, it's a problem for the entire industry and we all are grappling with it. On an overall cost front about 2% to 3% is what we are looking at as a cost increase. But we like I said, it's within the contingencies built. So really, it won't affect the bottom line right now.
Following up on Parikshit's question, if you can just comment on the launches, the overall GDV of launches that are planned for FY27. And if I recollect, you didn't mention Alibaug in that. So, has Alibaug gotten postponed into FY28?
No, no, no. Sorry, it still continues to be there. But yeah, okay. No, it's a slip on our end. We should have actually said Alibaug could be probably third quarter this year itself.
And lastly on Jardin, which seems to have seen a strong uptick this quarter. So, what's driven this strong growth in sales volume in fourth quarter and is there a change in strategy here or payment flexibility or the overall marketing and just, comment on future launches here in Thane?
No, frankly, now the building is showing up from, it's like some of them are at ninth level and so on and so forth. Plus, the way we build Forestville, we were able to do almost, 38 and 40 slabs a year. So, that kind of speed now people are expecting us to do that here as well and they feel that these projects will get ready faster than what they thought they would and hence, you know, you see this entire drive.
On the RLDA project, right, I understand like a large part of the payment is back-ended once the asset becomes operational, you'll contribute from the revenue share. I'm just trying to understand, like because I think the discount rate that we are using for the NPV is roughly about 10.5%-11%. Would we at some point in time once the asset is ready look at financing this via debt where the cost of debt is much lower compared to the discount rate that we have negotiated?
So, it's 10.75% exactly and we are absolutely mindful of that. And that's why just, 20 minutes ago I said that we probably will even look at strata sale. Of course, once we get strata sale, we will ensure that we try and repay them faster. And of course, I mean, there is a clear delta between our cost of money versus what they are charging us and we would love to, make sure that we don't end up keeping this for too long. The only advantage is that this is not a debt, whereas, you'll have to borrow and bring it. But anyway, nevertheless, we are mindful and we will at some point make sure we pay it faster than 2038 for sure.
On the strata sale bit, right, when we look at like because large part of the outlay is back-ended, right, when we look at the IRR of this project, right, it looks quite interesting and quite lucrative, right? So, what's the merit in doing the strata sale versus holding the asset and, converting the land payment into debt once the asset is operational?
Just we want to capture both ends of the market. This is 2 million square feet and there is, we also doing we are also doing Worli where there's commercial again. We have enough. And given the way we are looking at demand, like if there's a nice big house which wants 300,000 square feet office, we would love to do a strata sale and go ahead with it. And we have enough opportunity. So, we're not really worried, that we need to hold this only as such. There's a lot available and we know how to, build this land bank.
My second question was on the launches, right, the launches that you have highlighted for Q1 and maybe even Q2. Assuming that these launches have to come through, we should be, in a fairly stage — fairly advanced stage of approvals, right?
Absolutely correct. In fact, Oceanic we already have approval, Fairview you don't need approval and so on and so forth. So, like, again Three Sixty North we are applying as we speak and all of that.
And lastly just quick update on Tardeo. I think the rehab tower there we had applied for OC. Any update there and when can we have been given freesale portion?
Correct. So, we again 101% within this financial year. It could be Q3 or Q4, but within this financial year for sure.
And lastly launch timeline for Aram Nagar and Bandra this will be FY28 or 29?
So, Aram Nagar we have to do the rehab component first. We may have some free sale component within the rehab buildings because these are 1,000 and 2,000 square feet apartments. So, we may have something going on, but the large part of that development will happen once these guys move out. So, we have to build the rehab component. We will have a parallel strategy, might offer them something and say that once we start their work, if they feel like moving out and allow us to launch. Otherwise, we'll wait. And what it sweetly times with the Sea Link getting ready. The government's also proposing like late 2028 Sea Link connectivity.
Last one to Saumil. This quarter the OCF decline — OCF was kind of flattish compared to our growth in collection. Any reason for the operating cash flow being flat?
Yeah, so typically if you look at it we made a payment of about Rs. 250 crores to RLDA. So for me that appears as a working capital change. So, the OCF is for us any payments that we make typically for that for any advance towards a TDR or towards any FSI or towards any land, then all of those go towards your working capital changes and correspondingly that has an impact on OCF.
Firstly on hotel openings and mall occupancy. What are our expectations by the end of this year?
So, Worli end of this year for sure. Borivali probably early first quarter, second quarter next year, that's Marriott. Ritz-Carlton this financial year itself. These are two mall again, which mall are you talking about the Borivali mall's already launched.
But what should be the occupancy there by the end of this year?
Abhinav, Saumil here. So we have — as we mentioned in the results, we are already at about 72%. If your question was that where we will be by 31st of March 2027, then that's what we are saying that by that date we'll be at 100%.
Sir, second question on I-Ven. What is the final plan now? Total saleable area will be here how much roughly between these three?
So, I-Ven the final plan is we do mall, we do office and we do a small hotel. And you know we signed Aman and it's public news so I can say that. We are tempted to do that, but still working on it. And once we finalize, we'll come back to you. Leasable area about 1.4 million odd square feet.