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Edited Transcript of PURVA.NSE earnings conference call or presentation 14-Feb-20 12:00pm GMT

Q3 2020 Puravankara Ltd Earnings Call

Karnataka Feb 20, 2020 (Thomson StreetEvents) -- Edited Transcript of Puravankara Ltd earnings conference call or presentation Friday, February 14, 2020 at 12:00:00pm GMT

TEXT version of Transcript

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Corporate Participants

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* Kuldip Chawlla

Puravankara Limited - CFO

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Conference Call Participants

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* Sri Karthik

* Tirath Muchhala

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Presentation

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Operator [1]

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Ladies and gentlemen, good day, and welcome to the Puravankara Limited Q3 and 9 months ending December 2019 Earnings Conference Call. We have with us today on the call, Mr. Ashish Puravankara, Managing Director; Mr. Kuldip Chawlla, Chief Financial Officer; Mr. Vishnu Moorthi, Senior Vice President, Risks and Control; Mr. Neeraj Gautam, Vice President, Finance; Mr. Abhishek Kapoor, Chief Operating Officer, Residential.

(Operator Instructions) Please note, this conference is being recorded. I now hand the conference over to Mr. Kuldip Chawlla, Chief Financial Officer of Puravankara Limited. Thank you, and over to you, sir.

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Kuldip Chawlla, Puravankara Limited - CFO [2]

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Thank you, and a very good evening, and a very warm welcome to all of you. My name is Kuldip Chawlla. Thank you for joining us on the Q3 FY '19/'20 earnings call for the quarter and the 9-month period ended December 2019. We hope that you would have had some time to go through our quarterly earnings presentation, and the financial results for the quarter and the 9 months ended December 31, 2019.

With your permission, I will start with a short update on the business and the financial performance during the quarter and the 9-month period. And after that, me and my colleagues would be delighted to answer any questions that any of you may have.

On the policy and regulatory front, the recent announcements in the Union Budget continue to be supportive of the real estate sector. The Finance Minister spelt out 3 themes for the budget that include an aspirational India focused on economic development and building a caring society. We believe that our sector fits all 3 themes and there's an opportunity for accelerating the potential of the realty sector in revolutionizing India and providing strong growth for the nation as well as for our company. At the same time, our discussions with capital providers post what has been a bold RBI credit policy as laid out by the RBI Governor are positive for clean, well-governed and well-organized businesses that are gaining market share as consolidation gathers momentum.

There are multiple drivers for homebuilding: consolidation tailwinds; middle class prosperity; and finally, the government itself with its various measures to propel the economy and the sector. Our strategy to move into affordable housing over a decade ago, is a big beneficiary of the Union Budget on both the demand side as well as the supply side. For example, to drive the ambitious goal of housing for all and affordable housing, the deduction of up to INR 1,50,000 for interest paid on loans taken for purchase of an affordable home has been extended. There have also been extensions for the tax holiday on affordable housing projects. A significant proportion of our launch pipeline, nearly 7.5 million square feet, is in the affordable segment.

Q3 FY '20 saw booking value of INR 402 crores, an increase of 9% on a year-on-year basis, driven by provident projects, importantly, with good pricing power. We are encouraged by the average price realizations, which are improving across all the categories and both brands. We continue to push sales of our ready-to-move inventory. For the first 9 months of the year, combined sales numbers for both brands were up 46% to 966 units and in value terms, up 61% to INR 616 crores.

Coming to the detailed financial performance for the quarter and the 9 months. First for the quarter. Consolidated revenues for the quarter were INR 528 crores. Earnings before interest, taxes, depreciation, amortization, INR 115 crores, profit before tax, INR 26 crores and profit post taxes, INR 16.1 crores. The operating surplus at INR 165 crores for the quarter remained steady.

Next, for the 9-month period ended December 31, 2019, consolidated revenues were up 23% at INR 1,797 crores. EBITDA, INR 408 crores, up 13% year-on-year. Profit before tax was INR 133 crores, up 21% and profit after tax at INR 87 crores was up 16%. The operating surplus was INR 505 crores for the 9-month period as against INR 174 crores for the year-ago 9-month period, a small increase of 190%.

Our efforts at pairing our debt levels continue. Our gross debt reduced by around INR 86 crores in the quarter, and INR 180 crores for the 9-month period. Debt for recent and new residential projects is minimal. Our debt-to-equity ratio has continued to improve steadily in the last 4, 5 quarters and at the end of the quarter ended December 31, 2019, stood at 1.36. The weighted average cost of debt stood at 11.77%.

To summarize, we continue to work through and sell our ready-to-move-in inventory, which enables better collections and a higher surplus. Both of these have helped drive reduction in our debt and a more resilient balance sheet. Our sales of ongoing projects continue. Our net debt-to-equity has been trending down, and we see this continuing. At the same time, we are launching new projects across both our brands to take advantage of our dominant position in the 5 focus markets of South and West India.

Commercial projects are also expected to see further progress over the next couple of quarters as we diversify our real estate business. May I also take this opportunity to draw your attention to the estimated surplus of INR 6,885 crores as against the reported net debt of INR 2,590 crores. As of December 31, 2019, we have INR 1,907 crores of receivables from customers against their agreements from units sold. In addition to this, we have an estimated INR 2,926 crores of operating surplus to be realized from the sale of ready and ongoing opened unsold inventory.

Further, we have an additional INR 2,052 crores of estimated surplus to be realized from projects that are approved and would progressively move into construction and the open for sale category.

Overall, we are enthused by the steady sales growth over the last 9 months, reduction in both ready inventory levels as well as debts. As always, we continue to focus in building an efficient, value-centric business and help our customers realize their aspirations of homeownership and commercial spaces.

With this, we open the floor for questions. Back to you.

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Questions and Answers

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Operator [1]

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(Operator Instructions) We have a first question from the line of Rahul S, individual investor.

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Unidentified Participant, [2]

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Sir, my first question is basically, I'm looking at -- most of the new launches are going away from Bangalore. So are there any learnings that you had that you've been able to transfer from Bangalore to other new geographies?

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Unidentified Company Representative, [3]

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So no, we have, I think, equal number of launches coming up in Bangalore, but your observation is right. In terms of, yes, Pune is going to see a few more launches. But Pune, we've already had -- 2 years ago, we had a successful launch, which was our Silversands Phase 1, which we sold, I think, close to 700 units out of the 800 in Phase 1. So we have some experience. We have a local team there. So we know that market well now. Then we have some launches coming up in Mumbai as well. Then we have Mumbai -- launches coming up in Chennai, which -- we've been in that market for the last -- over 10 years, we've been in that market. We have another affordable housing launch coming up in Cochin. Again, we've been there for a long time. So it's spread across 5 cities.

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Unidentified Company Representative, [4]

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I'll just add to that. In terms of learnings that we've had from Bangalore, there is a lot of strength in our distribution network between both the brands. And we are leveraging that -- the brand and the distribution network and the learnings we have had in Bangalore, in these new markets, especially in the West because the way we are taking our product to market down South is a little different than the way they take it to market in the West. But -- so we're using both -- the strategy which exists in the West as well as ours originated ideas of how we take the products to market here down South into these markets. And I think we've been excited with the response we have got so far in all of the markets that we have taken new products to.

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Kuldip Chawlla, Puravankara Limited - CFO [5]

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Manifestation of our learnings in these markets is actually -- as they say, proof of the pudding is in the eating, 3 years '16, '17, '18, 3 new markets, Hyderabad, Pune, Goa, significant market share gains over established branded national level players in all these 3 markets as well as local players.

So we are enthused by what we see, and we believe that we have significant opportunity to leverage our brand as we move into the West, for example.

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Unidentified Participant, [6]

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Okay, okay. Sir, on the Bhandup project, I can see -- hello?

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Kuldip Chawlla, Puravankara Limited - CFO [7]

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Yes.

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Unidentified Participant, [8]

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Hello?

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Kuldip Chawlla, Puravankara Limited - CFO [9]

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We can hear you.

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Unidentified Participant, [10]

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Yes. Sir, I was looking at the presentation, there's a Bhandup project that's in deferred.

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Unidentified Company Representative, [11]

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No, no, no. The Bhandup project, we said it's under review. Basically, we are renegotiating the commercial. So while the JV has been signed, money paid, registered, we have done a wee bit of planning, but we see that because of the size, right? We are having to go to all that, which is affecting our construction costs, and therefore, our profitability. So we have approached the landlord to renegotiate the terms, which is under process.

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Unidentified Company Representative, [12]

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This is largely due to the DC Regulations and the changes that happened to the reservation on that particular plot. So because of the change in the product itself and the way it has to be designed, we have no choice but to approach the land owner and look at the terms again.

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Unidentified Participant, [13]

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Okay. And how's the reaction for Purva atmosphere been?

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Unidentified Company Representative, [14]

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We are quite excited with the response so far. And we believe that, that market has got a great potential. That product is not available in that market. And I think we will see the results by the end of this quarter.

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Unidentified Participant, [15]

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Okay. And sir, coming to realization, I just noticed that the Puravankara completed projects has got about 13% growth. The provident has not seen the same growth rate. So any comments on that?

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Unidentified Company Representative, [16]

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You're saying the completed projects, right?

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Unidentified Participant, [17]

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Yes.

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Kuldip Chawlla, Puravankara Limited - CFO [18]

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It's a function of the product mix.

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Unidentified Company Representative, [19]

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And also the volume of inventory available.

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Unidentified Company Representative, [20]

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Today, if you look at -- in terms of provident completed inventory, we had one project in Coimbatore, which we had -- if you can go back to Jan of last year, we had about 200-odd units. The project was almost ready and we had about 200-odd units, which are unsold. That market uptake was a little slow. So there, we corrected -- we're not doing any more projects in Coimbatore, so we corrected the price a bit, but fortunately, we've sold 160 units plus in the last 12 months. So basically, it's the product mix which was showing the realization lower. If you go to Provident ongoing projects, you'll see that realization has shot up.

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Unidentified Participant, [21]

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Right.

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Unidentified Company Representative, [22]

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And also, it's also a reflection of the quantum of inventory that we have between PHL and PL. We have more inventory and more choices available in PL. And hence, you will see better absorption of RTM in PL.

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Unidentified Participant, [23]

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Okay, okay. And sir, could you please comment on the commercial side, I mean, Provident has done really well.

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Kuldip Chawlla, Puravankara Limited - CFO [24]

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What would -- sorry, could you repeat the question again, sir?

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Unidentified Participant, [25]

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The commercial side. The commercial reach of this level of Provident.

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Unidentified Company Representative, [26]

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The commercial reach? I'm not able to understand.

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Unidentified Participant, [27]

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I mean, when do you see the commercial projects picking up?

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Unidentified Company Representative, [28]

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Oh, that. Okay. Commercial projects of Puravankara. So 1 project, I think we should begin -- so today, we approximately have a portfolio of about, I think, 10-plus million square feet. Out of which a little over 7.5 million square foot of land is already available with us. The first project we should start construction probably 30 days from now. There are 2 more projects where we are in the final stage of sanction. As and when we get that sanction, which is -- one is in Yeshwanthpur, which is the Metro Cash & Carry, which we're doing along with Keppel. So that we should get the final sanction and work should start probably in the quarter. The third one is, again, 3 kilometers here from MG Road. Again, that's a 100% owned property of Puravankara. That work should start again, I think, in a quarter.

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Unidentified Participant, [29]

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Okay. Okay, fine. And sir, my last question's on the debt, Kangra has just come down from 1.51 to over 1.36 over the last 4, 5 quarters. Where do you see this level in the coming year?

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Kuldip Chawlla, Puravankara Limited - CFO [30]

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I think you should -- directionally, we should be looking at around 1.1 levels over the course of the next 4 to 6 quarters.

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Unidentified Participant, [31]

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Okay. So this is post FY '21?

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Kuldip Chawlla, Puravankara Limited - CFO [32]

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Yes.

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Operator [33]

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(Operator Instructions) We have next question from the line of Tirath Muchhala from Elusividya Advisory.

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Tirath Muchhala, [34]

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Can you hear me?

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Unidentified Company Representative, [35]

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Yes, we can.

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Tirath Muchhala, [36]

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So one of the -- I think the debt raises that you guys did in this quarter was something at 14%. There was some NCDs. So could you explain what is the kind of capital that's available right now for you guys? Is it really a bad situation? Or is it getting better?

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Kuldip Chawlla, Puravankara Limited - CFO [37]

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This 14% debt was, a, raised without any hard collateral, number one. Number two, it had end-use complete flexibility, and it had multiple other benefits of being able to use it in and out of various types of projects, a.

B, our average cost of capital continues to be in the 11.5% range. And this is just short term money, which doesn't have long-term implications for our cost of debt. So it was more like available line of credit, which we draw on an as-needed basis.

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Unidentified Company Representative, [38]

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So just to add to this, there has been a constant capital raise that is going on. We have found a lot of support from most of the financial institutions who are working with us as our partners. And we haven't seen any significant challenges in terms of raising capital in the marketplace because I think the financial -- the performance of the company has also generally been received very, very well by the financial institutions. The way we are progressing and the strategy with which we are progressing has also been well received by the institution. So there's a lot of financial institutional support to us, fortunately, from the capital raise perspective.

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Kuldip Chawlla, Puravankara Limited - CFO [39]

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It may also be relevant to add here that not only do we have a large amount of construction debt to drawdown -- which we're able to draw down anywhere between 10% to 10.5%, all-inclusive. So there is complete flexibility, it's a function of the end use. Construction debt is available. In fact, post the RBI governance credit policy, discussions with lenders indicate very clearly that they are looking for good, clean, organized, well-managed, well-governed developers to give money to.

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Tirath Muchhala, [40]

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Superb. That's quite nice. It's good to hear. The other thing about the warehousing space. Could you guys elaborate a bit more on what's happening with Morgan Stanley? Is it a concrete structure? Or is it like depending on the opportunities?

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Unidentified Company Representative, [41]

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Look. So as of now, we have arrangement with Morgan Stanley for the warehousing platform. This is -- barring the existing projects that they already had on board, this can be taken across the country. Currently, we are evaluating a land parcel on the Bangalore highway where the title and due diligence is on, and that would be the first.

Second, we have our own land, which is on the Chennai-Bangalore highway, in Sriperumbudur, where we have already submitted our plans for sanction. As it gets sanctioned, that project will come into this JV company. So that will be in -- our equity contribution to the platform.

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Tirath Muchhala, [42]

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And this Sriperumbudur would be extensive parcel, correct?

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Unidentified Company Representative, [43]

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Sriperumbudur is 35 -- sorry, 42 acres of land on which we're doing well all in phases.

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Tirath Muchhala, [44]

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Right. And is there any plan in terms of warehousing because there are certain deals where you have a forward purchase or things like that. Is it with that in mind? Or what...

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Unidentified Company Representative, [45]

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No. So the strategy behind the warehousing currently is that we will -- we believe the maximum value accrual happens from land to 1 year of stabilization and lease. So that is the maximum value accretion that happens. So the strategy of this platform is to acquire the land, build a warehouse, lease it, stabilize it and then at the right value, knock it off. And to redo this cycle, but not to hold it currently.

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Operator [46]

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(Operator Instructions) We have next question from the line of Sri Karthik from Investec.

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Sri Karthik, [47]

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I have a couple of questions from my side. When you're looking at your sales momentum in multiple cities that you operate in, has there been a marked difference in the performance of the salaried versus self-employed, that is one, from a sales perspective. And the second one is the recent changes that have been announced with regards to taking away some of the dispensations in budget. Would that impact the incremental -- does that impact our overall thought process on how the government is thinking on the overall real estate sector? Because assuming that at some stage, if the government decides to take away all the benefits being given to the salary segment, that could have some impact on the housing sales.

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Unidentified Company Representative, [48]

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So -- I'll answer your second question first. So one thing, if you see the price points, even today, the markets that we are present in and the price points that Puravankara -- which is under INR 1.5 crores and Provident, which operates in the INR 45 lakh to INR 75 lakh bracket. These are all end user sort of -- end-user demand. So these guys are not typical investors and investing.

We also do this check wherein once we hand our possession within the year, we see almost 70%, 80% of these projects being occupied. So I don't feel that over time, that it will really affect buying because it's an end-user demand. There is real demand in the market today for a value product. Having said that, as of now, we have not seen any difference. We'll have to wait and watch to see if it will change any sort of buying behavior.

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Unidentified Company Representative, [49]

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I think real estate continues to be the largest saving and investment opportunity for every individual in this country. And that demand while might have kind of pent-up our view is that, generally, in the consolidation phase, the shift is towards larger branch and the faith of the customers in larger brands to derisk their investment is much higher.

So from that point of view, we see that, that demand which is spent up is pretty much there. And to answer the first question, at this point in time, we haven't seen any major shift in terms of salary or self-employed purchases in terms of the buying or absorption level. So at this point in time, we haven't seen any change. And our view is that the demand is going to sustain. And so far, the results are also showing the same.

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Unidentified Company Representative, [50]

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Then government has directly extended the benefit of

(inaudible)for another 1 year. So as of now, we see the benefit is still there. And government's intention is to encourage that plan.

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Unidentified Company Representative, [51]

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Given this (inaudible) has to be deposited to the banks only if [issued] up to INR 5 lakh has brought some fear to the investors. They want rather to invest in a real estate and balance their portfolio, not to keep the money in fixed deposit. So therefore, we believe that this real estate especially the housing, definitely, it will attract more investors.

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Kuldip Chawlla, Puravankara Limited - CFO [52]

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Specifically, we'd like to mention that the benefits that are there today -- which, let's say, theoretically, 3 years down the road will go away, a couple of lakhs in a INR 15 lakh, INR 20 lakh product is meaningful. But for the ticket price of value for money that would -- provident is in, which is INR 35 lakhs to INR 65 lakhs, INR 70 lakhs, that impact amount is very, very small in relation to the total.

Does that answer both your questions?

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Sri Karthik, [53]

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Sure, sir. Just a follow-up on the self-employed bit. So for example, if I were to look at our performance in Coimbatore, which is a business-dominant city where white collar jobs are much lower. That's having some impact on our sales performance. I wanted to see if that's reflected in some of the other -- for our experience -- of the other cities also. Maybe Kolkata versus Bangalore?

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Unidentified Company Representative, [54]

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Okay. If you see, Bangalore in fact, we have sold exceptionally well over the last 12 months. And I think you're right in that sense, I think, depending on the city or depending even on a specific micro market, if I had to take Bangalore for example, West and North Bangalore are more salaried, but if you go to Magadi road, there, I think it is more self-employed. But we really haven't seen any marked change over the last 2, 3 quarters in terms of buying.

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Kuldip Chawlla, Puravankara Limited - CFO [55]

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Just specific data on Green Park, Coimbatore. I'm giving you calendar year data sales in value terms, 2016, '17, '18 and '19, all this data is for 12 months ended December.

Green Park sold INR 2 crores -- a little over INR 2 crores in 2016, a little over -- around INR 5 crores in 2017, sold INR 3 crores, INR 4 crores in 2018 and INR 67 crores in the 31 -- 12-month period ended December '19. Incidentally, we've seen a similar thing in markets like Mangalore -- I'll give you a project -- or maybe in Bluemont 4-years, same period, INR 20 crores, INR 17 crores, INR 22 crores, INR 86 crores.

I can give you similar data for Chennai. And interestingly, for Puravankara in Chennai. Projects like Windermere, Swanlake, year-on-year, we've seen a 35% CAGR. What's happening, sir, is that even in -- let's say, Chennai, sells, example, 20,000 units in a year, 3 years ago. Today, let's say, it's selling only 17,000 units. 3 years ago, organized players were selling 4,000 units out of that 20,000. Today, those same organized players have 8,000 units out of the 17,000.

So we are gaining market share in these smaller places. It has less to do with the types of buyers. Yes, Coimbatore may have more self-employed professionals. Our sales have more to do with the product, the features, the customers' perception of our quality, delivery, so on and so forth.

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Operator [56]

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(Operator Instructions) We have next question from the line of Rahul S, individual investor.

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Unidentified Participant, [57]

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Sir, I just want to know about the debt profile. What is your plan for repayment in FY '21?

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Kuldip Chawlla, Puravankara Limited - CFO [58]

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Over the next 2 quarters -- so over the next 2 quarters, we have about INR 75 crores to INR 90 crores a quarter and then we have about INR 110 crores, INR 120 crores a quarter. So very comfortable. So in the FY '21, we're about INR 450 crores to INR 470 crores of prepayment.

And I would like to add that as each quarter goes by, this number keeps reducing because we are prepaying a lot of our debt.

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Unidentified Company Representative, [59]

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Out of collections.

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Kuldip Chawlla, Puravankara Limited - CFO [60]

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Out of collections. Basically, our ready-to-move inventory sales are continuing to do well, and that is enabling a rapid reduction in our debt.

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Operator [61]

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(Operator Instructions) We have next question from the line of Tirath Muchhala from Elusividya Advisor.

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Tirath Muchhala, [62]

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So this is about 2 of the news articles. One was about the co-living thing that we are doing in Bombay. So, a, are we doing it in more locations? And, b, is it on hold or what's the progress on that?

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Unidentified Company Representative, [63]

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So we're doing it in 2 locations. The first one would be Bombay, which is Goregaon East right next to the Nirlon IT Park. The designing is complete. We are now progressing towards sanctions and approvals. The second one is in Bangalore, which is off the Outer Ring Road in Bellandur. That -- the designing is almost complete. It's part of a residential development. So the front half is going to be co-living, and the back is going to be residential. That also designing is complete and we will be now proceeding for sanctions. We're going to see how these 2 work out and then take it from there.

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Tirath Muchhala, [64]

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Okay. And do we plan to own these or eventually sell them?

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Unidentified Company Representative, [65]

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So right now, I think once we -- we're in talks with 4 operators -- from the top 4 operators in India. We are also in talks with 2 international operators from the U.K. The -- one of the operators within India has expressed interest in picking up some equity in the Bombay project. So those discussions are on, quite an early stage.

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Tirath Muchhala, [66]

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All right. And the other thing -- which is, again, a news article, was something about projects, which are a little stuck in the western part of India. And how you guys are actively looking at these things. So if you can give like a broad view on what's happening there and how aggressive you guys are?

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Kuldip Chawlla, Puravankara Limited - CFO [67]

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Sure. Firstly, context, dislocation in the credit markets has created over the last couple of years, significant opportunity to take on projects with both -- with first wide developers, which has -- can come with approvals and with no land title/aggregation risk, so ready to market. The opportunity is for us to essentially leverage our brand to be able to deliver homes that are quality, speedy, well designed, so on and so forth. Credit providers who have linked to these -- are either in our existing pool or would like to do business with us and have confidence that we can help them solve their problems. We are at a stage where we are continuously evaluating these things because we want to be sure that what is the right sort of risk to take, do we take a RERA risk. We should not sacrifice our INR 3,000 crores, INR 4,000 crores of business for this. So we are looking at these very actively but we will do this with a very fine-tooth comb.

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Unidentified Company Representative, [68]

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So if you look at West, for example, 7 out of the 11 projects that we have between Bombay and Pune, 7 are from existing local developers there, right? Now in the current scenario, we continue to get a lot of proposals. We are trying to stay clear, at least right now, of projects that were launched partly constructed, partly sold because of that whole RERA risk, other liabilities in terms of taking over a half-built project, structure, et cetera.

So what we are evaluating is we're evaluating their vacant land of people in that situation, vacant lands or projects where they have half approvals or full approvals and then evaluating that on a commercial basis and then sort of proceeding.

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Tirath Muchhala, [69]

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All right. And for all of this, will we require more equity capital in terms of any kind of fundraising? Because in the industry, there are quite a few players who are raising equity capital at this time. So is that something on the anvil? Or do we not need it right now.

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Kuldip Chawlla, Puravankara Limited - CFO [70]

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So I think there are 2 ways: one, there are sets of projects where capital providers are already there, and it doesn't need equity, it needs expertise. It might require a small deposit to have [skin] in the game, which is very small in the overall context. So that is one category.

The second is that if it requires capital, we are privileged to have relationships with equity capital providers to be able to draw on that, should it be required. But we want to be very clear that we're going to look at the appropriate return on capital employed.

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Unidentified Company Representative, [71]

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Just to add to this, there are a whole lot of capital providers who are raising capital only for such assets and such opportunities, and they are looking for partners like us and to develop and take on these opportunities. So that's the line of credit or line of equity capital that's also available to us.

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Tirath Muchhala, [72]

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So we don't -- essentially, we don't need equity capital desperately?

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Kuldip Chawlla, Puravankara Limited - CFO [73]

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This will not be a capital-intensive opportunity for a very large part of the opportunity metrics.

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Unidentified Company Representative, [74]

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At the company level, I think equity will be required in terms of our commercial vertical that we're developing right now, right? The whole 10 million plus square foot. So at that -- for the commercial vertical, we are looking at a platform deal, where we get in the projects that we have on hand as our equity contribution, so that we have the right balance between debt and equity on the commercial vertical itself.

On the residential bit, with our change in selling strategy where we're able to sell upfront within the first 2, 3 quarters, more than 50% of the phase that has been opened up for launch, we have financial closure. So from that angle, not much equity is required there.

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Unidentified Analyst, [75]

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All right. And may I ask one more question or?

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Unidentified Company Representative, [76]

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Sure. Please, do.

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Tirath Muchhala, [77]

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So I don't know if I missed the comment on this. But the Chembur projects that we are planning, which I think is -- is it [Atmosphere] again?

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Unidentified Company Representative, [78]

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No. [Atmosphere] -- we haven't named it yet.

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Tirath Muchhala, [79]

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Yes, okay. Sorry. So the Chembur project, have we started receiving any kind of feedbacks from from potential customers about how they are receiving the Puravankara brand?

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Unidentified Company Representative, [80]

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Yes, yes. That is already there. In fact, we have had very, very positive response generally from the market. People come looking as to where the product is, where the project is. The inquiries are coming in even before we have started to decide as to when we're going to open the inquiry. So there is a lot of traction for the brand in the West and we are seeing a lot of interest from end users, customers, a lot of channel partners who are waiting in anticipation for our launches. Because there's a tremendous amount of faith in the brand. So yes, there's a lot of excitement in the market.

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Operator [81]

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(Operator Instructions) Thank you. As there are no further questions from the participants, I'd now like to hand the conference over to Mr. Kuldip Chawlla for closing comments. Sir, over to you.

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Kuldip Chawlla, Puravankara Limited - CFO [82]

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Ladies and gentlemen, thank you so much for your time on a Friday evening. If there are any further questions, we're happy to take them offline. Thank you once again for your time and attention. Have a wonderful weekend.

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Operator [83]

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Thank you very much, sir. Ladies and gentlemen, on behalf of Puravankara Limited, that concludes today's conference call. Thank you for joining us, and you may now disconnect your lines.