Oct 25, 2024 / 12:00PM GMT
Operator
Ladies and gentlemen, good day and welcome to the Q2 and H1 FY25 conference call of Arvind Smartspaces Limited. (Operator Instructions) Please note that this conference is being recorded.
I now hand the conference over to Mr. Amit Sharma from Smart Spaces. Thank you and over to you, sir.
Amit Sharma - Adfactors PR Pvt Ltd - IR
Thank you, Sudan and I belong to Art Factors and we are the IR partners for admin spot space.
Good evening everyone and thank you for joining us on the Q2 and H1 FY25 results conference call of Urban Smart Spaces Limited.
We have with us today on the call, Mr Kamal Singh, managing director and CEO Mr Ainar Suresh, Chief Operating Officer, Mr Mitan Suha, Chief Financial Officer, Mr Prakash Makwana, company Secretary and Mr Vikram Rajpur head Investor Relations.
Please note that a copy of the disclosures is available on the investor section of the website of Urban Smart Spaces Limited as well as on the stock exchanges.
Please do note that anything said on this call that reflects the outlook towards the future, which would be construed as a forward-looking statement must be reviewed in conjunction with the risk that the company possesses.
I would now like to hand over the call to Mr Kamal singer for his opening remarks over to you, sir. Thank you.
Kamal Singal - Arvind Smartspaces Ltd - Chief Executive Officer, Managing Director, Executive Director
Thank you a very good evening and a very warm welcome to everyone present on this call. Thank you for joining us today to discuss operating and financial performance of our smart spaces for the second quarter and half year ending September 30th 24 Diwali is just around the corner and I wish all of you a very, very happy deepa and a very prosperous new year.
The current dealership sector is being given by a strong affinity for home ownership and premiumization launches continue to track lower than demand leading to a decline in inventory levels, inventory overhang for the industry remains comfortable at 12 months further. According to RB data, home loan deployments exhibited a robust 40% YoY growth in financial year '24. Also credit deployment to the housing sector has expanded by 13%. Yoy as of July 24 this indicates a sustained upward trend in both home ownership and credit update.
We expect to persist in near term where branded developers with a low leverage and high design premiumization capabilities will continue to capture emerging opportunities. Coming to the operational update for the quarter. I'm pleased to share that quarter just concluded has been best ever quarter for Irving Smart Spaces with some notable achievements in terms of bookings and launches. For the first time, we have crossed the INR400 crore miles for quarterly bookings. Q2 FY25 bookings include 26% YoY to INR464 crores.
We had a new launch with the name Aqua City at Kangar South and towards the end of the quarter which received a landmark response. Probably the biggest ever plotted in villa launch in Gujarat.
Arun City has achieved bookings of more than 500 crores at the launch itself. It is heartening to see that all our new launches over the last several quarters and several different micro markets have created booking milestone for us.
Our half yearly performance has also been better in terms of bookings and collections. Actual bookings value grew 32% year on year to 666 crores and actual collections grew 6% YoY to INR497 crores.
Our business development initiative especially in vertical development segments are progressing. Well, recently we signed a new residential project on it field Road in Bangalore with 4.2 lakh square feet of saleable area and a potential of 600 crows of top line located near Whitefield ith This is our first project in Bangalore for sending a presence in this growing market. This follows the announcement of bagga and forestal high rise phase both vertical projects in Bangalore.
Now moving from operational update to financial highlights. H1, we have reported a revenue of INR340 crores of 144% on a year on year basis. EBITDA for H1 grew by 1 53% to INR91 crores and pat grew by 1 37% to 47 grows in Q2. We reported a revenue of INR265 crores up to 65% year on year and EBITDA grew by 320% to INR83 crores. Pat for the quarter grew to 93% to 43 growth for the quarter.
Our balance sheet position remains very strong despite expanding operations, our net debt decreased to a negative of INR195 EBITDA from a negative of net debt from a negative debt debt, net debt of 58 crows as on June 30th 24.
A crucial parameter in real estate reflecting the underlying business performance by well is the operating cash flow during the quarter. Operating cash flows amounted to INR106 crores and INR203 crores. During the first half, we estimate an unrealized operating cash flow exceeding 2,986 crores coming from the current pipeline of projects. As we look ahead, the optimism in real estate, especially mid income and premium segments remain very strong at ESL. We have reached a key point in our growth journey. A asset light model which combines quicker life, quicker cycle, horizontal projects and joint venture development agreements, joint venture and development agreements ensure faster project turnaround, strong cash flow generation and higher returns with drawers, cash flows, platform funding and sufficient leveraging capacity. We are very well poised for a scalability in medium to long term.
From an FY25 perspective, we are progressing well to the end of the year. On a very strong note to end the year. On a very strong note given by a solid pipeline of launches and BD in the coming quarters, we can now take questions.
Questions and Answers:
Operator(Operator Instructions) Shreyans Mehta, Equirus.
Shreyans Mehta - Equirus Securities Private Limited. - Analyst
Yeah. Thanks for the opportunity and congratulations on a very strong set of numbers. So first coming on our pre sales, you know, we are riding foreclosure to 30%, 35% growth and given the strong one edge any possibility to revise this numbers. How should one look at the pre sales numbers? That's the first question. Second, in terms of new media pipeline, we were guiding for closer to [INR9,000 crores]. So in terms, you know, we give them 1,000 of crores. So how should one see the second especially from the Mumbai market? These are the two questions on my side.
Kamal Singal - Arvind Smartspaces Ltd - Chief Executive Officer, Managing Director, Executive Director
Thanks. Yeah, I mean, we have had a very strong Q1 on fresh sales last year, whole year. It was around 11 in CRE that we clocked on the on the fresh booking and Q1 is already kind of midway, etcetera. So we're very confident that we will be able to achieve 30% to 35% of growth that we have communicated earlier. This has been a trend for last several years and quarters.
And I I mean, they are hoping that the same should be continued on BD. Yes. So in the first half or cumulatively, in the first half, we've done only 1,000 on rows of BD plus BD and the target has been to do 4 to INR5,000 crores last year. We did in excess of INR4,000 as you very well remember, but we are confident that it's working up towards the the the remaining two quarters. But we are very confident that we should be able to achieve our target of anything between 4 to 512 of BD for this year as a whole?
Shreyans Mehta - Equirus Securities Private Limited. - Analyst
Or is there any Sense on, you know, how much are, I mean, how much beds we are currently evaluating which you know, could give us some flavor in terms of the new video which we can achieve like Mumbai bangalore, how many projects or the size of GDD which we are evaluating?
Kamal Singal - Arvind Smartspaces Ltd - Chief Executive Officer, Managing Director, Executive Director
So as you, as I said, we are targeting to achieve INR4,000 crores to INR5,000 crores as a top line edition this year.
In terms of evaluation, the PTH is normally supposed to be very big in terms of number of projects will be fairly large, a very large team of of professional out there on ground scouting every day. Of course, so many deals will have different stages to cross and next stage A B&C, etcetera will be quite a few. So numbers are not that relevant, the stages at which the these are are very important. And I mean sitting today, I can tell that the number of fairly mature stage projects are fairly healthy and that gives us confidence that we should be able to block this video for this year.
Shreyans Mehta - Equirus Securities Private Limited. - Analyst
Got it, got it. Sure. And one last question from my side, the NH 47 project which we launched. So the entire phase was launched or you know, we are launching it in phases.
Kamal Singal - Arvind Smartspaces Ltd - Chief Executive Officer, Managing Director, Executive Director
Totally launched in several pages. So this phase was I mean you sold just about two thirds of the fee that we lost in these initial days.
Shreyans Mehta - Equirus Securities Private Limited. - Analyst
The third of [435] or you know, cumulatively, we crossed 600.
Kamal Singal - Arvind Smartspaces Ltd - Chief Executive Officer, Managing Director, Executive Director
Around INR900 crores. So we would have sold around 600 crores as on the date of announcement that we did on this. So INR600 out of INR900 odd crores, we take two crows here and there as a ballpark. So we would have sold two thirds of what we launched in this phase. And this is only phase one off of the project and we have one more phase coming.
Shreyans Mehta - Equirus Securities Private Limited. - Analyst
Got it, got it. Sure. I have a couple of more questions. I'll join back in with you. Thank you.
Operator
Biplab Debbarma, Antique Stock Broking.
Biplab Debbarma - Antique Stock Broking Limited - Analyst
Good evening everyone. Do you have any issues in advance to you all. My first question is regarding revenue recognition for the profit development. When do you recognize the revenue.
Kamal Singal - Arvind Smartspaces Ltd - Chief Executive Officer, Managing Director, Executive Director
For the plotting? I need to be developed this when the project is completed. And that's it. I mean, I mean, in the project completion environment, it is about completing the project at the moment project is completed. We start recognizing the the.
Biplab Debbarma - Antique Stock Broking Limited - Analyst
So when you say the project is completed when all the infrastructure amenities are there. But I I'm just trying to understand because for a vertical project, we know OC after OC receive after a few months, you hand over the key. But for this project, how when when exactly do you say the project is complete?
Kamal Singal - Arvind Smartspaces Ltd - Chief Executive Officer, Managing Director, Executive Director
So in a horizontal project, it depends upon what kind of amenities and what kind of things that you promise to the customer on a physical infrastructure side, normally supposed to be ready with all the roads, all the drainage works, all the electrical works, electric solution should be coming and notice from pollution board and other relevant authorities, electricity, etcetera should come, power should be charged. So it's kind of a plug and play situation needs to be ready for the customer to come take and then start construction of house if they want it whenever they want it. So it's all physical interest required as a fully developed plot that needs to be ready before you see the deposit is completed.
Biplab Debbarma - Antique Stock Broking Limited - Analyst
Okay. Okay. Sir, my second question and third question is oh, what are the key launches in the second half of this financial year? And what the beginning of each launch? Which is my second question. And third question, is there a strong possibility of bills in mmr market in second half of F I 25? Thank you, sir.
Kamal Singal - Arvind Smartspaces Ltd - Chief Executive Officer, Managing Director, Executive Director
Sure that there are, there are at least 2 to 3 very important launches planned for the remaining part of the year. This includes a high rise apartment project. One of the finances that we are designing or we designed already in Bangalore that is situated at Banatao.
Then we have a couple of new phase launches coming up at our existing projects, one at the great lengths. So this is one entirely new phase to be launched that should happen in next couple of months. And similarly, we have one fresh new launch adjacent to the existing orchard project as a new phase. So these are the three and then we have one lined up at Sura. So that is one of those bigger projects and this is going to be our first one in Surat.
That is also planned to be launched somewhere towards end of Q3 or Q4 latest for the year. So 4 to 5 launches, four launches rather are the visible launches at this point in time.
Biplab Debbarma - Antique Stock Broking Limited - Analyst
What would be the beginning of these four launches?
Kamal Singal - Arvind Smartspaces Ltd - Chief Executive Officer, Managing Director, Executive Director
So GD BS of these one, you should be to the extent of second.
So around INR2000 crores, if you are not to bifurcate all these projects into further phases, for example, sur is a little big big project. But the entire top line of SURAT is launched in one short, will be more than 1,000 crows. If you were to count that, then around 2000 crores in total, if surat was to be divided into two fields of say, INR500 odd crores, then it's going to be around 15 C grows for the year as a whole.
In terms of the balance one is for the, for the, for the year.
Amit Sharma - Adfactors PR Pvt Ltd - IR
And the third question about the possibility of this program, remember in this financial year?
Kamal Singal - Arvind Smartspaces Ltd - Chief Executive Officer, Managing Director, Executive Director
Yeah. So M MRI mean we, I mean, 1st, 1st fairly decent size project, we are very close to kind of announcing it. Although there are still few things to be done. We in our initial plan would have done that by now, but it is taking a little longer than what we had anticipated. Nevertheless, we are apparently very close to closing, which is relevant and then come out with the details for the same project. So we should be announcing something in near future.
Amit Sharma - Adfactors PR Pvt Ltd - IR
Thank you, sir. That's all they want assist you all.
Kamal Singal - Arvind Smartspaces Ltd - Chief Executive Officer, Managing Director, Executive Director
Thank you. Thank you.
Operator
(Operator Instructions) Akshay Kothari, JHP Securities.
Akshay Kothari - JHP Securities - Analyst
Yeah, thanks for the opportunity. I want you to understand in the NH 4730 AM launch. Suppose I did a booking for a slot of say 50 lakh. And today I am I have to pay only one lakh. Is that correct?
Kamal Singal - Arvind Smartspaces Ltd - Chief Executive Officer, Managing Director, Executive Director
No, as as we speak today, it's 10% received.
Akshay Kothari - JHP Securities - Analyst
Okay. But you have been booking of around 5 45 28 crows and received only collection is only around about 15 clothes.
Kamal Singal - Arvind Smartspaces Ltd - Chief Executive Officer, Managing Director, Executive Director
So if you were to see, we would have easily done more than maybe 5,560 rows at this point in time, I don't have the exact number, but there will be an excess of 55 rows that we we are talking right now for the community.
Akshay Kothari - JHP Securities - Analyst
Okay. I wanted to understand if I have heard many investors actually investing safe for a 50 lakh slott one lakh today and they have booked 32 slots. But some of them are saying we are allowed to cancel. So in case they wish to cancel the plot, would we be refunding that one lakh back?
Kamal Singal - Arvind Smartspaces Ltd - Chief Executive Officer, Managing Director, Executive Director
Yes. So there is a window. So what happens is that we can launch two ways. One is the U A route, the other is the the direct selling route. In this case, we followed the U I route where we first generated interest, ask people to apply, got all these applications to them. And then there is a day or the event which goes for 2 to 3 days at a location where you can handle the kind of crowd that is expected to get a booking number of say 5 600 or there about. So that may be you expect at least 2000 people to come and and take time to actually choose and and do all those things. So that happen that one lac is only for for the initial interest that the customer has to show. Now after this period, if they were to cancel, they can cancel. But during this period or on the day of event, you have to pay minimum 10% before the booking is confirmed, announced and taken into books of account as the sales which has happened. So whatever numbers we are talking about here is post that event and post receipt of 10% money that we take.
Anybody who wants to cancel would have canceled already and only those who have paid 10% are getting counted in the sales number that we are now. So right now in booking form, et cetera, all those amenities are already done.
Akshay Kothari - JHP Securities - Analyst
And by when will this phase one will be completed.
Kamal Singal - Arvind Smartspaces Ltd - Chief Executive Officer, Managing Director, Executive Director
In terms of development?
Akshay Kothari - JHP Securities - Analyst
Yeah.
Kamal Singal - Arvind Smartspaces Ltd - Chief Executive Officer, Managing Director, Executive Director
So it's a very large development. So it's I mean the total period is more than 25 lac square yards which is almost like 2.5 row square feet. So it's 3 to 4 years time that we check and then the next phase etcetera will also be finally running at some point and the sales velocity, etcetera. One great news about this spirit. Is also that the the top nine estimation for this spirit has gone up almost 10%. And that is because we are able to realize some start itself more than what we had anticipated. And more than what we had mentioned in our earlier presentations on the potential top line coming from this place. So we have already we already kind of gone about the threshold pricing and now the estimation for the product is going to be around 10% in terms of top line.
So.
Akshay Kothari - JHP Securities - Analyst
That's great.
So second, we also wanted to understand of what's your view on land aggregation. Last time I did ask about annuity based and you know that there is currently no interest in going into any sort of annuity portfolio but land aggregation since we are currently led free.
In fact, we have cash balance, any views on land aggregation.
Kamal Singal - Arvind Smartspaces Ltd - Chief Executive Officer, Managing Director, Executive Director
So they are not a land banking company per se general. The asset model of the business model is very asset. Like most of these very very large projects of which are in excess of say 10 lakh square yard A four K feet are going up to 2.5 crores k feet, etcetera. I think most of these is that all of these are broadly on joint development basis including Aqua City. So that is the aggregation is outsourced and there are people out there who need to have couple of capabilities. One being capability to aggregate from farmers dealing with the farmers et cetera, who then being, having a reputation to be trusted as partners in a long term arrangement like a GD, which spends anywhere between 4 to 5 to 6 years of relationship with us or for that matter for with any developer finding this combination is, is, is, is is something which needs expertise, needs credibility from the developer standpoint, etcetera. And our company has been able to do it repeatedly. Some of the largest GD transactions have been carried out by us in recent past and even there and every single sort of relationship is a very, very fruitful relationship for us and for the developer for the for the landlord as well. So this is broadly done on that basis. Aggregation is great, but then it has its own risk. We mitigate this risk to a very large extent by outsourcing and that's how we will continue to do. Having said that there are opportunities you could directly acquire directly doesn't or almost never means directly acquiring from the farmers. But there are aggregators who you can send into the market and say that look, this parcel looks interesting, looks like 4,050 acres is already ready and can be done. But why don't you work and make it 100 you start investing in those now those are few but nevertheless, they can also be done in the right proportion. This kind of aggregation risk can be taken, but broadly speaking, aggregation risk is also, as I just mentioned, with some little bit of salt and pepper being spread where we directly involve ourselves in aggregation through medias.
Akshay Kothari - JHP Securities - Analyst
Yeah, that's it from my side. Thanks to and.
Kamal Singal - Arvind Smartspaces Ltd - Chief Executive Officer, Managing Director, Executive Director
All the best. Thank you.
Operator
Eesha Shah, Axis Securities.
Eesha Shah - Axis Securities Limited - Analyst
Hi. First of all, congratulations on a good set of numbers. I have two questions for being again on the cash that we have reduced our net debt further to INR195. And we have an operating cash flow for the quarter of INR100 crores along with this. We also have our unutilized funds from ABC. So, what are PD plans going forward? I would be more aggressive because as we can see, we do not see a lot of deals coming up apart from the ones that are already launched. And the second question is on Aqua City. What are the kind of realizations that we're seeing right now? And what is the growth rate that we're expecting in the realization for Aqua City going forward? Thank you.
Kamal Singal - Arvind Smartspaces Ltd - Chief Executive Officer, Managing Director, Executive Director
Sure. So basically three questions. Yeah, you very rightly said the OCF has been at a healthy 100 work for the quarter, 200 plus work for the half one, etcetera.
He was sitting INR195 of cash in the balance sheet at this point. And of course, there is scope to leverage the balance sheet to some extent, conservative, but at least some extent, and we have little more expensive money in the form of platform money as well. So I put together quite a bit of head to exist to acquire new projects. In fact, that is the task number one for this entire group. The team is absolutely busy doing that. It is bunching up a little more towards these two quarters left for the year. But we are very confident this money will be deployed and we'll be able to create more than 4 to 5 â¹1000 of inventory or pipeline pipeline for the year as we have been talking in the last few calls. So that's on track. We are at this point quite content of deployment. We have always had a very fine length on what we acquire. This also reflects the the ratio of projects which have been able to hit the market almost on time. And at this point as we speak, there is nothing at all which is stuck anywhere in the pipeline. You know, I mean, that's that's says something about the lens which is possibly a little finer than the average fines that industry applies to that extent. We are conservative. But at this point, as I said, the very confident of deploying this and creating a pipeline of 4 to 5,000 work for the year.
Coming to what city, as I just mentioned, we have exceeded our, our targets in terms of what we would have got in the number we sold till date and which is approximately 10% more than what we had as a business plan. We launched this project at something like â¹5200 plus 1800 other charges which roughly translates to â¹7000 per square yard plus taxes and other stuff and some B&C charges, etcetera. So the base price was more like a â¹7000 per square yard. As we speak, it has gone up to something like â¹316,400 plus plus plus. And as we progress, obviously, this will, this should increase further, but that's something in time. We are very comfortable in price in terms of achieving our numbers because we already got a head start and margin out there in addition to what was planned. But generally, I mean, generally we, we do see further increases in price as we progress towards the project. One orbital change comes into the project in terms of pricing when the project starts, you know, showing look and feel and the quality of development, etcetera, etcetera. That's one point in time may be 2 to 3 years into the project when a substantial change comes. But otherwise a terminal increase, a normal increase will keep coming.
Eesha Shah - Axis Securities Limited - Analyst
Oh okay. Thank you. That's it from my side.
Operator
(Operator Instructions) Our next question is from the line of Ahmed from City advisory.
Unidentified Participant
So my.
Question is regarding how does JD work. So usually we work on 20.
25% of the, so let's say AJ D pro product is of a â¹100.
Oh, sorry for â¹100 project. If JD 50% then do we get 25% on this 50 or 25% on the entire 100.
Kamal Singal - Arvind Smartspaces Ltd - Chief Executive Officer, Managing Director, Executive Director
No, no whatever margin we say and we target and the number is absolutely right to be 25%. It's supposed to be on the total value. So whatever is the business value, the sales value, whoever gets it, I mean, eventually landlord or us on the total top line is supposed to be 20%, 25%. So if the, the property value is 100 then my margin would be 20. If the total value is 100 just to repeat, if 50 goes to the landlord on account of land within this INR100 then out of 50 which is remaining with us, I should not spend more than 30.
Unidentified Participant
Okay. Understood. And so my second question is regarding this new project plan. So by then the busy for that, we do a lot, the entire inventory.
Kamal Singal - Arvind Smartspaces Ltd - Chief Executive Officer, Managing Director, Executive Director
So it's all already completed. And with that, we will be exiting this period this year. Hopefully. Yes, I of which only we are in there not.
Okay. 20 units are left and we are hoping that we should be able to achieve this. I mean, we will just come handover started happening. We handed over more of the units, maybe buying a very few number of units from the units which are already sold and now that the project is up and running and visible footfalls have already increased. And we are hopeful that on a substantive basis by the end of this year, we should be able to clear this in India.
Operator
Rithvik Sheth, Arkay Ventures.
Rithvik Sheth - Arkay Ventures - Analyst
Hi good evening, sir. For these are our best wishes for the coming festival season to the entire So a couple of questions from my end this quarter, if we see the selling sales, it has been low in the last 6 to 8 quarters despite having a you know, good inventory of 1,500 to of ongoing project. So any specific reason that you would want to point out anything which was slow moving? Because yeah, that's the first.
Kamal Singal - Arvind Smartspaces Ltd - Chief Executive Officer, Managing Director, Executive Director
Sure. It is a very good question. In fact, this is one question we are addressing ourselves within our system. Although as we speak, the, the, the so sales inventory is almost like agent pros including now the inventory which is getting added due to apos.
But you know, other way to look at the same data is that out of agent grow almost like 7 to 800 close work now is coming from adversity and a place to 13 which have been launched in last few months of this, you know, one or two quarters. So it basically means two things. One as we are launching more and more project avail projects, availability of inventory is improving, sustainance inventory is improving. Before this sustainance inventory itself was so low in the context that we are talking about. And where there was so many projects that the focus which was required to be put into sustainance sale was not coming in itself because the inventory level itself was so low now that we started building this inventory and assuming that 4 to 5 new projects will be launched this year. Once again, obviously, this component will now become more and more important and hence a very, very clear focus has now been brought about on this inventory. And we are very hopeful and confident that we will be able to start locking healthy numbers on on sustenance as well in the coming quarters.
Rithvik Sheth - Arkay Ventures - Analyst
Okay. Got it. So, so assuming we do a 30 35% of pre sales growth in 525. What can be the expected contribution from the sustained sales this year? Any, any 10 that.
Kamal Singal - Arvind Smartspaces Ltd - Chief Executive Officer, Managing Director, Executive Director
So it's about, it's about saying what you count in sustainance and what you found in law, for example, for example, adversities now on what will be, what is it sustainance or is it a new law that I got industry trend is more like a 20 25% coming for sustainance in a high growth environment. I know this one has to do with the cycle that industry is going through and if people are going at 30% 35% and even more in many cases, but obviously, the component of new launches is going to remain very high comparatively are in a steady state situation where the growth rate would be for the industry more like a 10% to 15%. But we are in the zone and most of the players when players are going at 20% 35% there's a component of fresh launches or sales mix will remain high and normally it's supposed to be 20% 25% tenants can get for you.
Rithvik Sheth - Arkay Ventures - Analyst
Got it, got it. And the one more question, you know, in the current context of the real estate industry, most of your peers have been raising funds in the last 12 months. And we we are on the opposite side of the spectrum, you know, like we have had cash over the last one year, two years and we are deploying and also throw out cash and sell our balance sheet continues to improve. So, so what is your view? Are we on the conservative side of acquiring projects or we are a bit slower on the acqui not as aggressive as other players because we want to maintain our ir so just wanted your view on this.
So.
Kamal Singal - Arvind Smartspaces Ltd - Chief Executive Officer, Managing Director, Executive Director
I mean, it's a very, very good, good question. I'd rather say here more towards the student side of investment. Our lens obviously possibly is a little finer as compared to the average industry lens that I just talked about. But having said that we need to invest faster from here onwards, that's what the challenge is and that's what the task is and that's what the key is for the team and we're doing this at this point. I mean, in real estate to invest, housing pro is a five hour job, that's what we don't have. Actually, we have less than that. So to do it, if you were to do it is, is not something that we're talking about. A very difficult ask. But if you to optimize, if you were to be worried about returns and effort, profitless note in our understanding doesn't make sense. I mean, we, we are very conscious of the fact that while top line is extremely important and it can't be the importance of topline cannot be underestimated. And volume skills do throw up benefits. Although to a limited extent in our industry, I buy a house, not because I bought the last house in the same, but I buy the next house because I like the next house. It is secure the previous house that I bought. So that's what the underlying assumption is in our case. And hence we believe that that so it's important to earn, it's important to have healthy margins that is reflected in the books of account. Of course, that compounds the issue that you are saying, but we remain vigilant about profitability being reasonable. At least at the same time, the risks have been mitigated and the money that we have is not large enough. It's a question of when three deals and 1,000 floor is is is deployed. I mean, the value of land that you're talking about in any micro market, for example, Bangalore outskirts where mid price is around â¹10,000 9,000 would be at 300 pro rupee investment doesn't mean more than maybe 3,000 pros of 200,000 crows of total top line. That's where it is. And we are very hopeful that I mean, this should, this should work out and it's not a big amount of money in absolute sense that we need to deploy and will be deployed. So this should happen by the end of this year.
Amit Sharma - Adfactors PR Pvt Ltd - IR
Right. Right. So just one last question, if I can squeeze in the estimated value of our unsold inventory, close to about 7,000 grows as, as per our presentation. And we're looking to add another 3 to 4,000 grows in the second half. So, you know, we have about 10, around 10,000 call by the end of March 25. And this is probably a very significant jump versus three years ago. So do you see F 5 26 27 being an inflection point to go from this 1,000 for presales figure to exponentially higher than F 526. Since we launched new projects in F 526 around 2,500 to 3,000.
Kamal Singal - Arvind Smartspaces Ltd - Chief Executive Officer, Managing Director, Executive Director
Yeah, sure. I mean, the 7,000 or pro is the inventory, which is the inventory inventory and also the pipeline, which is the firm pipeline in terms of in terms of everything which is contacted for etcetera, that one.
I mean, I think the broad answer to this question remains very similar to what we've been talking in the past last year was that we are hopeful that we do 30% 35% this year and this needs to be maintained. So what we are really doing is to ensure what happens next year. For example, do I have enough launches? Do I have enough investments? Do I have enough pipeline? Which will be ready to launch after approval, etcetera when the year starts and ends. I mean that's how we are teaching it. And as a benchmark, they're saying that investments approvals pipeline should all align in a way that my growth of this percentage, 30 odd percent should be maintained. Obviously that's what we are working on and that's what we delivered in the past and that's what we we will keep doing.
Amit Sharma - Adfactors PR Pvt Ltd - IR
Okay, sir. Thank you and all the best, sir.
Operator
(Operator Instructions) RAJ, our job partners. Please go ahead.
Unidentified Participant
How much is the GDP of our Existing ongoing project.
Kamal Singal - Arvind Smartspaces Ltd - Chief Executive Officer, Managing Director, Executive Director
Of all the P put together? You are saying?
Unidentified Participant
Yeah, on.
Kamal Singal - Arvind Smartspaces Ltd - Chief Executive Officer, Managing Director, Executive Director
If you could repeat the question, please, I I didn't get the question. You are one of the entire pipeline DDV,
Unidentified Participant
The entire ongoing projects. Not the upcoming.
Kamal Singal - Arvind Smartspaces Ltd - Chief Executive Officer, Managing Director, Executive Director
Months.
So that's 50,900 right? INR7,000 crores. Can you tell the page number or something on the page 21 right?
Unidentified Participant
That is given on page 21.
Kamal Singal - Arvind Smartspaces Ltd - Chief Executive Officer, Managing Director, Executive Director
01. So it's mentioned as page 20. Also the sheet number is this so yeah, page number 22 0.
Unidentified Participant
Okay. Okay. There are too many figures that that's why I'm sorry.
Kamal Singal - Arvind Smartspaces Ltd - Chief Executive Officer, Managing Director, Executive Director
69 something that is a breakup of the existing kind of inventory and the value G DB? Okay.
Unidentified Participant
I understand and what would be the time of completion of these?
Kamal Singal - Arvind Smartspaces Ltd - Chief Executive Officer, Managing Director, Executive Director
So mostly, I mean, we are, we are saying that 70 80% of our portfolio is oriented at this point. Of course, vertical is now now becoming bigger and bigger. And as we end the year, it should be substantially higher than what it is today. Normally, it is 3 to 4 years that we complete any project that we launch.
Unidentified Participant
On the on this existing 7,000 rows of G DB. So it will be completed in 2 to 4 years.
Kamal Singal - Arvind Smartspaces Ltd - Chief Executive Officer, Managing Director, Executive Director
The slide number 19, it will give you project with visibility on when and this is getting completed, targeted to be completed. All right.
Unidentified Participant
Yeah. Yeah, I just, I just saw it.
All right. And we are planning to launch 3,000 to 4,000 project in H2 F 525.
Kamal Singal - Arvind Smartspaces Ltd - Chief Executive Officer, Managing Director, Executive Director
Right?
No, we said 2000 odd crows if you were to assume surat as one entire phase, although there is a possibility that surat might be divided into two phases. So if it is two phases, then 1,500 odd cros if it is one phase together launched, then 2000 crores from the existing pipeline, we might be lucky that from the inventory dedicated from here onwards, the new bill required in the in the remaining part of the year and the credit that can be launched this year. That will be in addition to that. But from the existing visible inventory already contracted for other projects already contracted for, it should be anything between 1,500 grows to 2000 crows depending upon how we launch to.
Unidentified Participant
All right. So by FY25 end we will have a total GDP of around INR9,000 cores of so of.
Kamal Singal - Arvind Smartspaces Ltd - Chief Executive Officer, Managing Director, Executive Director
The Ongoing Project. 9 to 10,000 Pros. Yes.
Unidentified Participant
And sir, how much would be our a beta on this E.
Kamal Singal - Arvind Smartspaces Ltd - Chief Executive Officer, Managing Director, Executive Director
DD?
Yeah. So roughly 20 around 25% plus minus couple of percentage here and there will be very strong, quarter to quarter and half to half year to year. But generally a ballpark is only 3 to 25% there about.
Unidentified Participant
All right. And it will take 3 to 4 years for completion, right?
Kamal Singal - Arvind Smartspaces Ltd - Chief Executive Officer, Managing Director, Executive Director
Yes, I mean, any individual project but you, you have a sheet which tells you some of them are at a fairly mature stage. So they won't take this much. But normally average life cycle is 3 to 4 years and the sheet is at 90.
Unidentified Participant
Yeah, every year. Do we have a specific. Like an E estimate of plan?
Kamal Singal - Arvind Smartspaces Ltd - Chief Executive Officer, Managing Director, Executive Director
So that list is there, that also is the present. I mean, in the, in the, in your presentation of the list, we are, we just discuss five launches are four launches which are expected in the remaining part, we've only launched a couple of projects this year. So, so I mean, and that list is also available in the investors presentation, anything between 6 to 7 projects at this stage of our of our journey is something which is an average number for the year to be launched.
Operator
(Operator Instructions) Sayan Mata from ECU securities. Please go ahead.
Shreyans Mehta - Equirus Securities Private Limited. - Analyst
Oh, yeah. Thanks for the follow up opportunity. So two questions. One in terms of pricing, what's your take on the pricing? Do you feel there's more scope for improvement from here on specifically to our projects or probably, you know, the best is, you know, now behind us, that's 1st and 2nd in terms of the launches, which we have the planning of 1,500 to 2000. Ours. At what stages are the, you know, the approval? Are we at the advanced stage? Could there be any risk in terms of approvals?
Kamal Singal - Arvind Smartspaces Ltd - Chief Executive Officer, Managing Director, Executive Director
Sure. So first question about the pricing, obviously, the number that we got in in in our sheet for individual projects take care of our best understanding of the pricing at this point in time.
Normally achieving those prices has not been an issue and we rather better them in many or most cases. So that's what has happened even in case of a quality that last quarter, the number that we projected were lower than what we actually ended up achieving in a very, very big loss. So that should continue direction from data, positive data will remain. We we mostly are doing long term projects and in long term projects you create value from two different variables. One is that as time passes, inflation, etcetera, etcetera itself takes care of 5 to 7% of value increase on an analyzed basis. On top of that, if you're creating a destination yourself where the whole area develops and becomes better in terms of lability, look etcetera. That value is in addition to the inflationary things that we are talking about, most of the projects deliver that as well for us. And that is why our growth rates and prices have been more than inflation of the industry of sort of average et cetera. So that's what we we keep doing. But just to remind that those numbers are already there in the in the for sheet and we might better than to rant here and there. But normally speaking, they are all collected there in the sheet.
Our second question is about the whole stages, maybe four projects that we are talking about launching, mostly they are at a fairly advanced stages rather last legs of their launches. Surat is a little, I mean, it's a very, very large one. It it has a set of more approvals to be done at this point where quite okay in terms of ensuring that it is getting launched, this year. But otherwise the rest of the project don't have this long tail also. So at this point, really comfortable about about launching this project especially.
Shreyans Mehta - Equirus Securities Private Limited. - Analyst
Got it. That's it from my side. Thank.
Operator
Thank you, ladies and gentlemen, that was the last question for the day. I would now like to hand the conference over to Mr Kamal Singh for closing comments.
Kamal Singal - Arvind Smartspaces Ltd - Chief Executive Officer, Managing Director, Executive Director
Thanks a lot everybody for participating in this earning call of Arvind Smart Spaces and thanks again for your continued support on this. I hope we have been able to address most of your queries or if there is anything missed out on any of your questions. Kindly reach out to Vikram and he will connect with you off line and clarify and give further information as may be required, looking forward to interacting with you all in the coming quarters and once again, wish you all a very, very happy powerly and thanks a lot. Once again, thank you.
Operator
On behalf of our smart space is limited that confuses conference. Thank you for joining us and you may now disconnect your lines.
Call participants:
Corporate ParticipantsAmit Sharma, Adfactors PR Pvt Ltd - IR
Kamal Singal, Arvind Smartspaces Ltd - Chief Executive Officer, Managing Director, Executive Director
Shreyans Mehta, Equirus Securities Private Limited. - Analyst
Akshay Kothari, JHP Securities - Analyst
Conference Call Participants
Biplab Debbarma, Antique Stock Broking Limited - Analyst
Eesha Shah, Axis Securities Limited - Analyst
Rithvik Sheth, Arkay Ventures - Analyst
Refinitiv StreetEvents Transcript
Q2 2025 Arvind Smartspaces Ltd Earnings Call
Oct 25, 2024 / 12:00PM GMT
