Eldeco Housing & Ind. Ltd. — Call Transcript 2025

May 29, 2025

Digitally signed by CHANDNI VIJ DN: c=IN, o=PERSONAL, title=9649, pseudonym=4ce0ea6706814cf99e394272ca0a6109, 2.5.4.20=91093c0d6ba1af4bc385ea8be4df8a6882774 b6d7f78217bf4b3eba276a070dd, postalCode=226016, st=Uttar Pradesh, serialNumber=74f0f260c4860dd16088d4c1b5f8fea53 325d3e968e31189a9c9e1c63ab7bc32, cn=CHANDNI VIJ Date: 2025.05.29 15:44:13 +05'30'

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“Eldeco Housing & Industries Limited Q4 FY25 Earnings Conference Call”

May 23, 2025

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MANAGEMENT: MR. PANKAJ BAJAJ – CHAIRMAN AND MANAGING DIRECTOR

MR. MANISH JAISWAL – GROUP CHIEF EXECUTIVE OFFICER

MR. SANJAY AGGARWAL – GROUP VICE PRESIDENT, (ACCOUNTS AND TAXATION)

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Moderator:

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Ladies and gentlemen, good day and welcome to Eldeco Housing and Industries Limited Q4 and FY25 Earnings Conference Call.

As a reminder, all participant lines will be in the listen-only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference call, please signal an operator by pressing “*” then “0” on your touchtone phone. Please note that this conference is being recorded.

I now hand the conference over to Mr. Abhishek Bhatt from E&Y Investor Relations. Thank you, and over to you, Mr. Abhishek.

Abhishek Bhatt:

Thank you. Thank you everyone for joining us on the call.

Before we proceed to the call, let me remind you that today's discussion may contain forwardlooking statements that may involve known and unknown risks, uncertainties and other factors. It must be viewed in conjunction with the business risk that could cause the future results, performance or argument to differ significantly from what is expressed and implied by such forward-looking statements. Please note, the results and presentation are available on the exchanges. Should you need any assistance to receive them, you can write to us and we will be happy to send them over.

Today, we have on the call, the Senior Management of Eldeco Housing and Industries Limited, which is represented by Mr. Pankaj Bajaj – Chairman and Managing Director; Mr. Manish Jaiswal – Group Chief Executive Officer; Mr. Sanjay Aggarwal – Group Vice President (Accounts and Taxation).

We will begin with the highlights of the quarter and the year ended, followed by Q&A. Now, I would like to hand over the call to Mr. Pankaj Bajaj for his opening remarks. Over to you, sir.

Pankaj Bajaj:

Thank you Abhishek. So, good afternoon and thank you for joining us today for our Q4 FY25 Earnings Call.

FY25 was a mixed bag for us. We faced delays in approvals and launches in many of our projects with the result that our overall fresh area booked at 5.1 lakh square feet was significantly lower than last year 7.8 lakh square feet. However, this decline in area booked was set off by much higher realization per square feet, primarily due to the launch of our luxury project Eldeco Trinity.

After all the delays, we launched Eldeco Hanging Gardens also but in the new financial year, in April, 2025 we will give you update for that in the next presentation for the next quarter. Though, I must tell you that we got a phenomenal response with nearly 70% inventory booked within first week of launch. We are also in the process of launching another group housing project at Eldeco Skywalk currently. The other achievement for the year was successful aggregation of 50 acres of land on new Jail Road in Lucknow. We have planned an integrated township of plots,

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villas and multistoried apartments here. The project, under the name of Eldeco Salano Garden, has a gross development value of about Rs.1,000 crores.

During FY25 our operational margin remained low, largely because of Imperia Phase-1, from which majority revenue was recognized. The booking of sales and marketing expenses for the recent launches of Latitude 27 and Trinity have also been front ended, while the revenue from these projects will be recognized on completion. This has also caused an apparent decline in our net profit margin, but it's going to be get covered up in the future quarters. Operationally, we have achieved significant milestones this year. Collections for FY25 grew by 105% year-onyear to Rs.253.9 crores, fresh bookings of Rs.337 crores were about 15% lower than our guidance, primarily due to the delayed launches of Hanging Garden and Skywalk. Realization per square foot witnessed a growth of 32% year-on-year, and stood at Rs.6,568 per square foot. Construction spend saw a growth of 60% year-on-year, and stood at Rs.156 crores. The quarterly results are with you, so I will not repeat them here.

Looking ahead, we are optimistic about our growth trajectory, apart from Eldeco Salano Garden, we are right now in the process of aggregating developable lands at a few other locations in Lucknow. Together, all these projects give a good visibility of revenue and profit growth for the Company. For the past few years, the Company has been declaring a dividend of 400% in order to provide a consistent reward to our shareholders. This year, in spite of a lower PAT, lower profit after tax, the Board has recommended a slightly higher dividend of 450% in order to reward our shareholders for their patience and long-term association. This decision also reflects our confidence in the Company's prospects of profit from its current batch of projects under execution. I will now open the floor for any questions if there are any.

Moderator:

Thank you very much. We will now begin the question-and-answer session. The first question is from the line of Bharat Gupta from Fair Value Capital. Please go ahead.

Bharat Gupta:

Sir I have a couple of questions first, which is in regard to Eldeco Trinity. So, it's been a year since we launched this project and if you look at the presentation, so we have been able to sell nearly 1/3[rd] of the total units. So just wanted to understand, is it primarily driven by a higher competitive intensity or relative oversupply within the market, which is somewhat holding us back in terms of aggressively positioning ourselves in doing the pre booking?

Pankaj Bajaj:

So regarding Trinity, we always expected it to be a slower velocity kind of project, because it's the highest project in Lucknow in terms of luxury and the per square foot pricing. So given the stage at which the current construction is, which is we are just coming out of the basement and casting the first slab or so, it is a very decent performance. In any other project, we would expect it to be more than 50% booked at by this stage. But right now, we are okay with this given that it's a luxury project and there is a limited market for Lucknow, it's not our strategy to go for luxury project. This was the location where we thought that we could build a luxury projects and have a brand rub off on our other projects. So yes, the lower sales yes, admittedly there, but it is to be expected. But we do expect, by the time the project is built, it will be sold out.

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Bharat Gupta:

Right. The realizations are primarily driven by Trinity, which is of a higher realization product, but generally x of it, if you look what will be the stable realizations for the rest of the projects which we are currently ongoing?

Pankaj Bajaj: So, we have recently launched Hanging Garden, which was at about Rs.7,000 a square foot, Skywalk is at a lower price of what Rs.5,500 a square foot. Latitude is currently selling at about Rs.6,500 a square foot. So, let's take Rs. 6,000-Rs.6,500 per square foot as a stable natural realization.

Bharat Gupta: And sir in terms of the land acquisition. So can you just help us understand what kind of a land we were able to acquire during the last quarter, and what's the position if we look till date? Pankaj Bajaj: Do you have a copy of the presentation with you?

Bharat Gupta: In that it's mentioned that we have been able to aggregate the land parcels primarily. Just wanted to understand, with respect to the quarter which is gone by during which? Pankaj Bajaj: Let us get back to you, I have the total, I don't have the quarter wise data.

Bharat Gupta: Okay. Sir also, in regard to the Imperia there has been because of the higher cost which we have built under the Imperia Phase-1, taking into account the club facilities and everything so that is led to the drag on the margins. But how do we see going forward over FY26 will the position of Imperia Phase-2 will start taking place during the year or?

Pankaj Bajaj: Yes, it will start taking place, I answered this in our last quarter concall, and I am sure you must have been in that call also, because you remember our answer that Imperia Phase-1 has a lot of common facilities loaded on to it, which are common to both Phase-1 and Phase-2. So the margins are lower in Phase-1, but the margins are much higher in Phase-2, and the weighted average has come back to normal. So, Phase-2 will start getting recognized this year, because we are targeting to apply for completion certificate sometime in October and receive them by say December, and I hope in the last quarter we start recognizing revenue, in which our margin will be much higher there, upwards of 40% if not 45%.

Bharat Gupta: Sure. Last question sir from my side, in terms of the pre-sales number previously, you guided for near about 380 odd crores. So should we bake-in given out that we will be rolling out Skywalk and the impressive launch of Hanging Garden, so should we factor in a 400 crores, kind of a pre-sales number for this fiscal year?

Pankaj Bajaj:

So for this year we had guided about Rs.400 crore, and we have been short of that, we are about Rs.340 odd crore. So we will make up for that plus we will make, I had said that generally we would be at Rs.400 crore will be a new normal so that whole. So, I think on the whole, we should be touching Rs.500 crores this year. Minimum, I will be disappointed if it is anything less than Rs.500, I would expect it to be higher than that.

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Bharat Gupta:

And we will be rolling forward this Jail Road project this fiscal year?

Pankaj Bajaj: Yes, so we have received the major license approval, but there are subsequent approvals which follow from that, they will take another couple of months in the RERA approvals we are looking at around Diwali launch. So yes, around Diwali we should launch it, which is about the 3[rd] Quarter.

Pankaj Bajaj: And that will be a bigger project this year. Moderator: Thank you. The next question is from the line of Aniket Singh from Care PMS. Please go ahead. Aniket Singh: I have two set of questions. First, like what are your thoughts on the upcoming year in terms of new project launches, are there any specific initiatives or strategies you would like to share? Pankaj Bajaj: You said two questions, which is a second question? Aniket Singh: First question is like, what are your thoughts on the upcoming year in terms of new project launches, are there any specific initiatives or strategies that you would like to share? Pankaj Bajaj: So, we have already, I already answered that in response to Bharat’s question previously. In the current quarter, we have already done two launches, the Hanging Garden and even disclosed that we have got very good responses, the second launch of the year Skywalk is currently underway. I expect to be slightly slower than Hanging Garden in terms of sales, but on the whole, we should be good for these two projects, which are the launches are happening in the current quarter. Then in the third quarter, we will have probably have the launch for Solano Garden. And Solano Garden will be a big project for the Company in terms of its top line. So that will be the 3[rd] Quarter now given all these three launches this year, coupled with the sustenance sales of our existing projects, Latitude 27 and Trinity, I have already given a guidance for more than Rs.500 crores pre-sales in the current year.

Aniket Singh: Okay. And sir, my second question is, like as you mentioned about the acquisition of 50 acres of land, how much of this land has been utilized so far? Pankaj Bajaj: Nothing, zero. Nothing has been utilized. The project has not been launched yet. That's the project we are talking about, Solano Garden. That will get launched in the 3[rd] Quarter we are still awaiting approvals. Aniket Singh: Okay.

Pankaj Bajaj: Yes, so no sales have been done, as you know that we can commence sales only after the RERA registration, which is subsequent to receiving all other approvals. We are in the process of getting approvals, then we spend some time preparing the site. I said that we should launch it anywhere between September to November, depending on how fast or late we get the approvals.

Moderator: Thank you. The next question is from the line of Kunal Tokas from FVC. Please go ahead.

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Kunal Tokas: Okay, just three quick questions. First, any updates in regard to merger with the unlisted arm? Pankaj Bajaj: No, there is no update there. Kunal Tokas: Okay. And is there any progress in expanding outside of Lucknow in UP for example, Gorakhpur, over the next say two years? Pankaj Bajaj: Yes, most probably will expand to Gorakhpur, we are already in negotiation with some landowners there, but there is nothing formal right now that I can formally disclose. Kunal Tokas: Okay. But is this expected to happen this year or next year? Pankaj Bajaj: See, the thing with the deals is that it happens, it can happen in a couple of weeks, or sometimes you will be struggling with it. I would not like to put a number but suffice to say that we are working on it, I don't know. Kunal Tokas: Okay. Only Gorakhpur or any other regions as well? Pankaj Bajaj: At the moment only Gorakhpur. Kunal Tokas: Okay. And the last question is that, we have a strong balance sheet with about Rs.123 crores in cash. First is, how do you plan to utilize it and can we expect you to be more aggressive in taking over debt, because you now have the cash position to support it? Pankaj Bajaj: So the thing is it’s a peculiar situation with real estate companies, I don’t know if you have been tracking other real estate companies balance sheets, they have started showing a lot of cash on their books. But the peculiar thing about real estate Company is that this cash is not available to use, and this paradox is because of the RERA guidelines which has come in, which mandate us to deposit 70% of all collection into a RERA designated escrow account which can be used only in the project. And that money, even if it is collected in advance, remains stuck in the project account till the project receives completion certificate. So a lot of this money is stuck in RERA accounts is not really available for use. So even we have Rs.130 crores, not a lot of it is available for use. As on the liability side of the balance sheet, you will also see some loans, like somebody can ask why do you have, cash on the balance sheet and also loan. And that is true for a lot of real estate companies. So you do end up with that money is idling in RERA account at the moment. It gets unlocked only on completion of the project, but once the completion happens it is for you to use. So yes, going forward, given this anomaly, I do expect the loan on the Company to increase, which will primarily be for our business development. We largely do not need loans or construction finance to finance our construction which is being financed from advances from customers.

Moderator:

Thank you. The next question is from the line of Gunit Singh from CCIPL. Please go ahead.

Gunit Singh:

Sir, in the PPT our total value of Eldeco Imperia Phase-1, as well as Twin Tower was to be around Rs.195 crore so Rs.130 crore to Phase-1, and about 65 crore for Twin Tower. So, since

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both were completed in FY25 I just would like to understand, what percentage of both the projects have we booked in the revenues in FY25 and how much spillover can we expect in FY26?

Pankaj Bajaj: I don't have that number readily, one of my colleagues on the call would like to take it up. Sanjay, Manish, do you have this number? Manish Jaiswal: Sorry, can you please repeat the question? Gunit Singh: Yes, so the total, as per the presentation the total value of, area for Eldeco Imperia Phase-1 was about Rs.130 crore, and for Eldeco Twin Tower was to be about Rs.65 crore, and both were completed in FY25 but our revenues are very short of that. So, I just want to understand, what percentage of revenues from both the projects have we booked in FY25 and are we to see any spillovers in FY26 from these two projects? Manish Jaiswal: So, I don't have an exact percentage, but I can tell you that most of the revenue from both these Imperia Phase-1 and Twin Tower are recognized. As a follow up reply Abhishek would send you the exact number also post the call. Gunit Singh: Alright, so you mentioned that the majority revenues from both have already been recognized? Manish Jaiswal: Yes, baring a little bit. Gunit Singh: Alright. And our next project completion would be Imperia Phase-2, which would be in Q3 of FY26 so, for the first couple of quarters, we do not have any large revenues being booked. Is that a fair assumption, because majority of these also have been booked in FY25? Pankaj Bajaj: No, Imperia Phase-2 will come probably, we will start booking revenues in the third or fourth quarter, because as I said we are going to apply for completion certificate in the coming time. We are targeting September and October, though our commitment to our customer is sometime next year. So it's gone for an early completion we have done good execution aside. So if we apply for completion in September and October we probably get the completion certificate within a couple of months after that, so I don't expect revenue recognition to start before Quarter 4, actually. Moderator: Thank you. The next question is from the line of Varun Gupta, an Individual Investor. Please go ahead. Varun Gupta: So, I have two questions first question is on the Eldeco Select revenue recognition by when we can expect the revenue recognition for this project? Pankaj Bajaj: Varun please go ahead now. Varun Gupta: So my first question is on the Eldeco Select project where we have applied for the completion certificate. So by then we can recognize the revenue, is there any timeline?

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Pankaj Bajaj:

Completion certificate will take a couple of, the project is ready, the customers have moved in, but completion certificate is held up for some technicality. I don't know about Manish or Sanjay can you confirm to me have we already recognized revenue in this project Select, or have we not?

Manish Jaiswal: Regarding Phase-2? Pankaj Bajaj: No, Eldeco Select. Manish Jaiswal: No, sir nothing for Eldeco Select. Pankaj Bajaj: We have not recognized. Manish Jaiswal: No. Pankaj Bajaj: So we are trying based on technicality on which it is stuck. So we should be able to get it closed in a couple of months. So, the moment we get the completion certificate, it will all be recognized, though let me tell you, it makes no difference to our cash flows. It's only a revenue recognition, it's all in our books, all money has been received, all construction has been done, so there's no cash flow impact of this, but there's a technicality of getting a completion certificate before we recognize the revenue. Varun Gupta: And what kind of margin we can expect out of this project? Pankaj Bajaj: No, it's a very small project it's only 24,000 square feet, so margin would be higher. Varun Gupta: 27 crore is the booking value, which I can see in the presentation. Pankaj Bajaj: Yes, it is not very big in terms of the Company, like a total company’s sales we had this year, we are targeting Rs.500 crores of pre-sales. So it's not a very material number, but the profit margin should be about 40%. Varun Gupta: And second question is on the Eldeco Trinity, where I can see like, if I would see the quarteron-quarter trend in the booking value, and the booking value is close to Rs.5 crores in Quarter 4. And one of the participant has asked this question like, what is the reason for the slow sales, you have already answered that question. I just want to know whether there is any price drop in the realization front in Eldeco Trinity, or we are keeping the same price?

Pankaj Bajaj: No, there is no price drop in fact we are awaiting the finishing of our sample apartment. We have gone a little slow on our marketing here because we want to kind of re-launch the project after our sample apartment is done, and we are trying to do a good job show real luxury to the Lucknow market. In fact, we expect there to be a price uptick rather than a drop in this project, but maybe it will happen this quarter or a quarter after subsequent quarter, once they are able to unveil our sample apartment.

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Moderator: Thank you. The next question is from the line of Prem Poddar from Value Equity. Please go ahead,

Prem Poddar: So this is with regards to Eldeco Solano, as sir has mentioned in his opening remarks, the GDV is close to Rs.1,000 crores okay, so can we assume that the numbers would bake in FY27? Pankaj Bajaj: In terms of revenue recognition? Prem Poddar: Yes. Pankaj Bajaj: No, not that early it's a big project, revenue recognition will take about four years to come in. Prem Poddar: Four years, right? Pankaj Bajaj: Three or four years, the first revenue recognition could be we are in FY25 first revenue recognition at the earliest would be FY28 if not FY29 but of course, the fields and construction and everything is going to commence this year.

Prem Poddar: Okay. So, again continuing the question, so can we assume that see, last year we have closed with the revenue exit of close to Rs.145 crores, top line. And so going ahead, can we aspire of a number of more than Rs.500 to Rs.600 crores in FY28-29? Pankaj Bajaj: I can't say year-to-year, but all these numbers you can derive from the presentation. If you look at our unsold value and sold value for projects where revenue has not been recognized, it should be close to Rs.1,600 or Rs.1,700 crore. Then we have new launches, where GDV is Rs.1,000 crore. So total revenue which is to be recognized over the next five-six year is about Rs.3,000 crores, Rs.3,500 crore. Now, in which year how much will get recognized, that's very difficult to give, but the total number I can give, and I can give you the total period, period is about five to six years with the current set of projects. Of course, we are going to add more projects. The current set of project is about Rs.3,000 crore, or maybe Rs.3,500 crore, and that should all get recognized in the next five to six years. So does give an annual earn rate of Rs.500, Rs.600 crore but it's going to be, I guess it will be quite back ended. So the pre-sales will happen, but the revenue recognition will be back ended on completion.

Prem Poddar: Okay, got it sir. And sir again, just a small extension of the same question. So, I believe recently, we have launched Eldeco Hanging Garden and Eldeco Skywalk which is a group housing project. So what would be the GDV for these two projects approximate ballpark?

Pankaj Bajaj: About Rs.180-190 crore each.

Prem Poddar: So both go together, right sir?

Pankaj Bajaj: No each, so put together about Rs.360 crores.

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Moderator:	Thank you. The next question is from the line out Suhas Khular, an Individual Investor. Please
	go ahead.
Suhas Khular:	A couple of questions here. One is in the presentation Eldeco Imperia Phase-2 is mentioned, as
	expected completion date September 25, in earlier presentation the completion date was
	mentioned in the year 27. So just can you confirm, is it 25 or 27?
Pankaj Bajaj:	No, it is not a typo. We've done well, so we have accelerated our completion. So, I have already
	answered in response to one of the earlier questions that are legally mandated, completion date
	is somewhere in 2027 what is committed to our customers, but we have been able to achieve
	good progress. So that is even reflected in our execution numbers this year, our execution
	numbers, our construction spends are really increased as compared to last year, with the result
	that we have achieved good physical progress on site. Sep’25 we hope to apply for the
	completion certificate. We will probably get the completion certificate sometime in December
	of 2025 and revenue recognition will start in the last quarter. So, there is a small typo to the
	extent that the expected completion date, which is written as Sep’25 is not the date of receipt of
	completion certificate. It's our internal date for application of completion certificate.
Suhas Khular:	Understood that’s great to hear that fast track completion. Another quick one, I remember there
	was a loan to a related party in the books. Now, as you move ahead and we are acquiring land,
	and also next year, there will be a lot of construction spend, is that loan going to come back?
Pankaj Bajaj:	I guess that loan will come back, but that we will figure out how quickly, because that loan is
	earning interest, and we are anyway sitting on surplus cash on this balance sheet. So that loan,
	sometime during this year we should expect for it to come back, if not full, then in parts.
Moderator:	Thank you. The next question is from the line of Majid from Pinpoint. Please go ahead.
Majid:	Sir my first question is, what is the embedded EBITDA currently and going forward what would
	be the EBITDA margins?
Pankaj Bajaj:	I have not understood the question. If you can explain the question?
Majid:	For this year FY25 what is the embedded EBITDA margins?
Pankaj Bajaj:	I don't understand the concept of embedded EBITDA margins you will have to explain.
Majid:	Sir embedded EBITDA, because there are multiple projects what is the overall margin per se
	project?
Pankaj Bajaj:	So, as a percentage or as an absolute number?
Majid:	Both.

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Pankaj Bajaj:

So we have already discussed this at length. In Imperia 2, we are looking at upwards of 40% gross margin, and the other projects are closer to 25%-30% so the weighted average should be in early 30. And I have also discussed the total GDV, which is there with the Company. So to get to the actual absolute numbers, we simply multiply that GDV with the margin percentage. So if we are going to do 3,000 crore or 3,500 crores over the next five years. Then gross margin should be about Rs.600-700 crore or Rs.800 crore, but that’s gross.

Majid:

And secondly, sir what type of the collection you are receiving so far for FY26 out of the presales?

Pankaj Bajaj:

You are not audible, can you repeat you are not clear?

Majid:

So, what I am saying is, for FY26 what is the expected collection and we are looking from the existing project and from the upcoming launches, any sort of number you can give sir?

Pankaj Bajaj:

I am afraid, I don't have that projection, I don't have it we may have to get back to you on that.

Moderator:

Thank you. The next question is from the line of Yash from ICICI Bank. Please go ahead.

Yash:

Sir, can you just share your views on the market, Lucknow market because there is an apprehension of overall market slowdown, that's it?

Pankaj Bajaj:

So, two contradictory forces here. One is Lucknow market, which I have always said, the last two, three years, I have been saying it's an under supplied market, given the overall GDV of Lucknow, given its status as one of the leading cities of the country, the overall absorption numbers are quite low in terms of housing supply, and that is primarily not because there is not enough demand, but because there is not enough supply. And that's the reason why we keep resisting this temptation, and these many people want us to move outside Lucknow, but we feel that Lucknow itself is so under supplied. We should just, cut down and double up our supply there. So the local market is very good because of infrastructure upgrade, the investment that the local government is putting into the city, the social infrastructure, the airport, everything is doing well for Lucknow, but other contradictory forces. Yes, there is an overall slowdown in the related demand and sentiments all across the country. There is no doubt about that. So, to that extent even Lucknow, the sentiment I would think is a little down, though we have not seen it in the numbers yet, because we did a great launch for Hanging Garden just two weeks ago, but I think that it will not remain immune to that slight slowdown. Now, which are the two forces, that only time will tell but Lucknow itself doing well, but overall real estate sentiment is definitely down. So, that’s the best I can answer.

Moderator:

Thank you. The next question is on the line of Runit Kapoor, an Individual Investor. Please go ahead.

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Runit Kapoor: So, I want to know for this quarter, just two projects have been completed, the Twin Tower and Imperia Phase-1, how much area was booked, and what are the pre-sales for these two projects for the quarter, and if there is any pending inventory for this?

Pankaj Bajaj: This question has already come earlier. I didn't have the answer, I asked my colleague Manish to answer that, and Manish also did not have the answer. So we will have to get back to you on this. Somebody already asked this question, we don't have this number right now. Abhishek, if you can take down the details, we will get back to them on it. Runit Kapoor: Sure. And one more question was like, your unlisted entity Eldeco Infrastructure, they have acquired a quite a few land parcels. So, I believe like by when can we achieve any clarity on this merger, because I feel like, as a there is an overhang on our Company always remains, because the other entity has a large exposure to other cities, so the geographical concentration risk is there. So our stock is like trading below the NAV, because of that reason. So by when you think you feel that there will be a update on the merger, by this year end or what?

Pankaj Bajaj: But we have never committed on any merger, where is this talk of merger coming from. There is no update on our side from this. The two entities are completely different, they don’t compete with each other. We do not cherry pick projects, the listed entity works only in Lucknow it does not work outside Lucknow and unlisted Company, however attractive a project might be, it will not enter Lucknow that is left for the listed entity. There is an interest agreement where the two are completely separate entity. There is no talk of any merger at the moment. Runit Kapoor: Okay. And so any other areas are we looking out like you said Gorakhpur, so any other cities in Northern India? Pankaj Bajaj: At the moment we are focusing on Lucknow because we feel I have already answered that, it's an under supplied and underserved market. There's a lot of potential, we have not ourselves, I would be the person to say we have not done justice to the potential of the Lucknow market, where I think there is an opportunity to grow multiple times in Lucknow itself, and somehow we have not been able to grab that opportunity we will work hard on it, and the results will start coming this year. I have already shared some of the numbers. Coupled with that we are trying to venture into a neighboring market of Gorakhpur. This itself will more than keep us occupied, there is no reason for the Company to get diluted in its attention by going elsewhere.

Runit Kapoor: Okay. And last question is, what business development spends are we looking how much land acquisition can we expect in this year? Pankaj Bajaj: So we will be, if you look at a presentation the slide number #13, there is section which says land bank for forthcoming projects under planning. We have already acquired 31 acres in three different locations. We are not disclosing the location because we are still aggregating the land. I expect that this number should reach about 100 acres this year, this 31 acres should become 100 acres. And the big one we did last year was Solano Garden, and it has already done wonders to our GDV, if we are able to take this 31 acres to 100 acres, I will be more than happy.

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Runit Kapoor:	This 70 acres, what would be the outflow expected in cash?
Pankaj Bajaj:	It should be about Rs.250 crores.
Runit Kapoor:	So our debt should be at the end of this year, what to expect the debt levels to be?
Pankaj Bajaj:	We have not done these kind of granular projections, but yes we will have to dip into debt. We
	also have cash on the balance sheet, but as I answered one of the earlier questions, a lot of that
	cash, and which keeps fluctuating is logged into RERA accounts. Now as and when these RERA
	accounts get unlocked by way of completion certificates, that money will also be available,
	depending on when and how much of that money becomes available, the debt number will
	change, difficult to too many varying things, varying parts here to say that this will be a number
	at the end of the year, higher than where we are.
Runit Kapoor:	Just to put it another way, are you looking at the equity partnership with HDFC Capital, your
	unlisted entity did that so?
Pankaj Bajaj:	Not required at this stage, we can easily manage this kind of CAPEX with our internal resources
	and with some debt, we don't need to do a high cost kind of arrangement with HDFC Capital at
	the moment.
Moderator:	Thank you. Next question is from the line of Manan Patel, an Individual Investor. Please go
	ahead.
Manan Patel:	Sir the first question is on the Solano Garden. So it being a very large GDV, so do you expect to
	launch it in phases, like we did with Imperia or we will launch it at one go?
Pankaj Bajaj:	No, it will be in phases. So we will be launching a horizontal part of the development first, by
	that, I mean the plots and the villas and then it has multiple vertical components, small group
	housing components, which will come two or three years from now, it's the same model we
	followed in Eldeco City, where we built the villas and plot first and now we are sequentially
	launching the apartments. So we in Eldeco City we have already done Eldeco City Breeze,
	Eldeco City Dreams, Twin Towers, Latitude 27 and now Skywalk. They are all part of the same
	project. So, we will be following the same pattern in Solano Garden.
Manan Patel:	Understood. And sir the second question on Hanging Garden, so if you look at two years back,
	the kind of realization we got for Hanging Garden, that is also very good and the velocity was
	also great, so in that context. So the first part is, do you plan to hold on to the rest of the inventory
	for now or if you get an opportunity we will set it off. And secondly, how confident are we that
	like of launching these kind of higher realization projects going forward?
Pankaj Bajaj:	So the first question Hanging Garden, we would prefer the latter which is, sell it as an when the
	opportunity comes, we are not in the business of holding on to inventory. We are a developer,
	we are not an asset holder. So very clear about our business, so having said that we are also not

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desperate in terms of getting all the sales upfront. We have already sold 70% of the inventory, and we have not even begun excavation on the ground. The project will take two and a half, three years to complete, we will be very happy by the time we get completion, if everything is sold out, so the balance 30% we have to sell over three years. We are able to sell it within the first year itself. I will be very happy, if it takes three years, I will not be too sad either, but I will be not happy if on completion, I still have unsold inventory. I don't foresee that to be happening. So that's the first part. The second part is, if we are going to be launching high end projects going forward, no that is not our strategy. Trinity is a one-off project where our realizations are very high, mostly it will be in the Skywalk and Hanging Garden range, which is about 6,500-7,000, 7.500-6.000 per square foot range. As an average apartment size of 1,500 or 1,800 square feet we are talking about a ticket size of Rs.1.2-1.5 crores, which by any token cannot be considered luxury it is just upper mid income aspirational kind of so that's the strategy.

Thank you. The next question is from the line of Gunit Singh, from CCIPL. Please go ahead.

Moderator: Thank you. The next question is from the line of Gunit Singh, from CCIPL. Please go ahead. Gunit Singh: So, first of all, I would like to understand EBITDA margins of the Rs.3,500 crore GDV in the coming five years. And secondly, I would like to understand the Rs.300 crores worth of other current liabilities in the balance sheet. So what comprises of that, is it advances from customers or if you can help give a breakdown of that?

Pankaj Bajaj: So, I would guess it would be advances from customers, but I would ask my colleague Sanjay to throw more light on it.

Sanjay Aggarwal:

Advances from customers only, sir.

Gunit Singh:

All right.

Pankaj Bajaj: And your questions about the margin, which we have guided about 30% margin. Gunit Singh: Alright. Is that gross margin or EBITDA? Pankaj Bajaj: Gross margin.

Moderator: Thank you. Ladies and gentlemen, as there are no further questions from the participants, I now hand the conference over to the management for closing comments. Pankaj Bajaj: Thank you, Abhishek, and thank you everybody for your time today. We will see you next quarter, with hopefully even better number. Thank you. Moderator: Thank you. On behalf of Eldeco Housing and Industries Limited, that concludes this conference. Thank you for joining us, and you may now disconnect your lines.

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