Sumit Woods Limited — Call Transcript 2025

Feb 14, 2025

14th February, 2025

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BUILDERS & DEVELOPERS
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To

National Stock Exchange of India Ltd

Exchange Plaza, 5th Floor, Plot No. C /1, G Block, Bandra - Kurla Complex, Bandra (E), Mumbai – 400051, Maharashtra, India.

(NSE Symbol: SUMIT)

Sub : Transcript of earning conference call held on February 11, 2025, for the quarter and nine months ended December 31, 2024

Ref: Regulation 30 and 46 of Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 (the ‘SEBI Listing Regulations’)

Dear Sir/Madam,

In furtherance of our letter dated February 12, 2025 informing that the Company has uploaded the audio recording of the conference call and pursuant to Regulation 30 and 46 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended from time to time, please find enclosed the transcript of the Earning Conference Call held on Tuesday, February 11, 2025 to discuss the operations and financial performance for the quarter and nine months ended December 31, 2024.

The transcript of the earning conference call is also being uploaded on the website of the Company at:

https://www.sumitwoods.com/investors.php

Kindly take the same on your records.

Yours faithfully,

For SUMIT WOODS LIMITED

Digitally signed by REKHA JAYESH REKHA JAYESH BAGDA BAGDA Date: 2025.02.14 12:56:25 +05'30'

Mrs. Rekha Bagda Company Secretary & Compliance Officer

Sumit Woods Limited

B - 1101, Express Zone, Diagonally Opp. to Oberoi Mall, W.E.Highway, Malad (East), Mumbai - 400 097 Tel.: 022- 2874 9966 / 77  Fax : 022-2874 3377 CIN No. : L36101MH1997PLC152192 Email : contact@sumitwoods.com  www.sumitwoods.com

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“Sumit Woods Limited Q3 & 9M FY25 Earnings Conference Call”

February 11, 2025

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MANAGEMENT: MR. MITARAM JANGID - MANAGING DIRECTOR, SUMIT WOODS LIMITED

– MR. BHUSHAN NEMLEKAR EXECUTIVE DIRECTOR, SUMIT WOODS LIMITED

– MR. JATIN WAGHELA MANAGER OF ACCOUNTS AND FINANCE, SUMIT WOODS LIMITED – MS. PRIYANKA DHRUVA ACCOUNTS AND FINANCE HEAD, SUMIT WOODS LIMITED – MS. REKHA BAGDA COMPANY SECRETARY, SUMIT WOODS LIMITED

– MODERATORS: MS. CHANDNI CHANDE KIRIN ADVISORS

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Moderator:

Sumit Woods Limited February 11, 2025

Ladies and gentlemen, good day and welcome to the Sumit Woods Limited Q3 and 9 Months FY25 Earnings Conference Call hosted by Kirin Advisors.

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 the conference call, please signal an operator by pressing *, then 0 on your touchtone phone. Please note that this call is being recorded.

I now had the conference over to Ms. Chandni Chande from Kirin Advisors. Thank you and over to you.

Chandni Chande:

Thank you. On behalf of Kirin Advisors, I welcome you all to the conference call of Sumit Woods Limited. From the Management Team, we have Mr. Mitaram - Managing Director; Mr. Bhushan - Executive Director and CFO; Mr. Jatin - Manager of Accounts and Finance; Ms. Priyanka - Accounts and Finance Head and Ms. Rekha, who is Company Secretary.

Now, I hand over the call to Mr. Bhushan. Over to you, sir.

Bhushan Nemlekar:

Good afternoon, everyone. Warm welcome to Sumit Woods Limited’s Q3 and 9 Months Financial Year 25 Earnings Conference Call. It is a pleasure to connect with you all today and we truly appreciate your time and continued support. As this is our first earning call, I will like to begin by sharing our overall Company, our journey and key business highlights before getting into the quarterly performance.

Summit Woods Limited has a rich legacy of more than 39 years in the real estate sector. We are delivering high quality residential and commercial projects across Mumbai and Goa. We are established in 1986 as Sumit Construction and evolved into the trusted Real Estate Development Company and later incorporated Sumit Woods Limited in 1997. Over the years, we have built a strong reputation of superior construction quality, sustainable development and delivery on time. That is the key motto. Our growth journey has been remarkable. We have completed more than 64 plus projects of 45 lakh square feet of developed space and delivering more than 7000 apartments to our happy families.

Currently, we have 3 ongoing projects, 7 upcoming projects, further reinforcing our commitment into urban transformation. With focus on MMR and redevelopment of Mumbai, we have more than 15 lakh square feet of space under construction and a robust pipeline in future development. We are one of the preferred developers in the Western suburbs of Mumbai. We take pride to be an NSE listed Company from 2018, and we have been actively members of MCHI, NAREDCO and BDA. As our Company continues to grow, plus we have more than 100 team members in our Company who help us to deliver our projects and give dream houses to our customers on time. Right now, there is a lot of on redevelopment in Mumbai and because of that our focus is

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Sumit Woods Limited February 11, 2025

also redevelopment of projects in complete Mumbai region, from Borivali, Malad. Santacruz, Dadar to up to South Bombay.

Now, I will go on to the details of our Q3 Financial Year Business Highlights:

This quarter has been a strategic significance for Sumit Woods as we continue to strengthen our presence in real estate sector. We are pleased to announce two major projects of redevelopment projects where we have been selected for redevelopment, one which is in Malad East, which is strategically located near Malad East Station and one in Prabhadevi just behind Siddhivinayak temple where we have been selected as a redevelopment developer. Both revenue potentials of the project is around Rs. 730 crores. This reinforces our commitment of transforming Mumbai skyline with premium and quality houses.

Additionally, I am happy to inform you that we have successfully raised Rs. 86 crores capital infusion form of equity shares and convertible warrants, which has further strengthened our balance sheet as well as our appetite to take more projects as a growth capital and in turn give value to the shareholders. Further, I am very much happy to inform as a milestone, our credit rating has been upgraded to Acute BBB+ with stable outlook, which serves as a strong endorsement of our financial discipline and business fundamentals.

Now, turning to our Financial Performance, for Q3 FY:

Our standalone income stood at Rs. 26.62 crores and EBITDA at Rs. 3.94 crores translating an EBITDA margin of 14.80%. Our net profit for the quarter was Rs. 1 crore and the net profit margin was 3.76. For the 9 months of this financial year, our standalone income is Rs. 67.74 crores with an EBITDA of Rs. 14.68 crores and EBITDA margin of 21.67%. Our net profit for this period stood at 6.03, reflecting net profit margin of 8.9%.

On the consolidated basis, if you see for Quarter 3 FY, our income stood at Rs. 30.90 crores and EBITDA at Rs. 5.80 crores translating in an EBITDA margin of Rs. 18.77 crores. Our net profit for that quarter on the consolidated is Rs. 2.03 crores and net profit margin at Rs. 6.56 crores. And for the 9 months of the financial year, our consolidated income reached Rs. 110 crores and EBITDA of Rs. 17.6 crores with an EBITDA margin of 15.47. And the net profit stood at Rs. 6.49 crores reflecting a net profit margin of 5.70%. This number reflects our steady revenue growth, operational efficiency and evolving market dynamics. Looking forward, we are quite optimistic with the real estate trajectory with the recent budget and the RBI’s soft stance on the interest rate and that is going to be favorable for the affordability of housing and the eligibility of housing loans for the buyer. With the robust pipeline and a commitment of sustainable development and focus on execution excellence, we are confident in our ability to capitalize on emerging opportunities and create a long-term value for all stakeholders.

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We have been in this industry for more than 39 years and we see a complete transformation of Mumbai skyline going next 3-5 years with lot of development projects happening. On top of entire Sumit Woods’ team, I like to extend my heartfelt gratitude to all our investors, customers, employees and partners for their trust and continued confidence in our journey. I thank you all for coming for this conference call and I open the floor for the question and answer and look forward to addressing your queries. Thank you.

Moderator:

Paras Chheda:

Bhushan Nemlekar:

Paras Chheda:

Bhushan Nemlekar:

Paras Chheda:

Thank you very much. We will now begin the question-and-answer session. Anyone who wishes to ask a question may press ‘’ and ‘1’ on the touchtone telephone. If you wish to remove yourself from the question queue, you may press ‘’ and ‘2’. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. We will take our first question from the line of Paras Chheda from Purpleone Vertex Ventures LLP. Please go ahead.

Hello. Yes. Thank you for this opportunity. I just wanted to understand, at the moment what is our, let us say, current project size, which are already signed and need to be executed? And over what kind of duration do we have to execute these projects? That is my first question. And should I just continue with my question, or shall we keep it like you want to answer that and then?

No, I am okay. So, I understood the first question. I will answer if you want.

Yes, my second query is what is our current debt level as on end of December 2024? And my third query is, in general, just for this quarter for the December quarter, the overall sales value is generally lower compared to last year on a consolidated basis and slightly softer EBITDA margins also. So, somewhere the execution of projects has upward a little bit or something, just wanted to know that also?

So, I will just start with the first question where you asked. So, if we have already acquired around Rs. 2,500 crores of project which has already been shared on the Exchange and out of which around Rs. 700 crores of projects we have already started on the pipeline which is Param Project-1 and now the Hedavkar Wadi which is at the Prabhadevi. Both projects we have already acquired the lands, done the development agreements and we are in the process of getting the approvals in place. So, this project execution will happen over the next 3-5 years. That is the thing. In terms of debt, I am very much happy to inform you because we raised equity of around Rs. 83 crores. So, we have reduced the debt by exact number. I will give you later on. Right now, my debt is around Rs. 35 crores on the balance sheet. So, we have reduced by Rs. 25 crores our debt in this quarter.

Because as in September, I see about Rs. 92 crores of consolidated debt and so as of end December, it stands around Rs. 35, is it?

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Bhushan Nemlekar:

And in terms of end December, on the consolidated basis, it will be around somewhere Rs. 55 crores.

Paras Chheda:

Rs. 55 crores.

Bhushan Nemlekar: In terms of standalone it was Rs. 35, but around consolidated basis it will be Rs. 55 crores. In terms of the current quarter numbers, what happens because we do have percentage completion method, this we have not completed or got the OC of any project in this quarter or new launches have not happened, only on whatever the launch and whatever progress is there that is ongoing. So, this quarter has been a subdued quarter for them, but we are expecting. So, the reason for the subdued quarter is we are just on the ongoing projects. We have not got OC of any of the ongoing projects or we have not launched any new project in this quarter. That is why the numbers look so good, but going forward, the projects that we had launched in August-September, we are expecting to achieve 25% as per the accounting standard norms and the revenue will be recognized that we are expecting to get OC of the project by March, so even the numbers.

Paras Chheda: Sir, if you don't mind, would you repeat from the project that started in August-September, you were saying on that?

Bhushan Nemlekar: So, the project we started on Param which we launched on August-September, we achieved good sales there, but the revenue recognition will happen only after a certain percentage of agreements are registered. So, accordingly, in Quarter 4, we expect that revenue will be recognized in that quarter. Same way for Param, we are expecting OC to get received in March after the 100% completion I think before quarter will improve that. Same with the Gurukrishna project, which revenue we hope to get recognized in Quarter 4. So, the numbers are not reflected in this current quarter. Same we will be completing getting our OC in Gurukrishna which is a project which going on in Ville Parle expected by March. So, a lot of revenue will be recognized in March. So, that is the reason this quarter was subdued.

Paras Chheda: Sir, you would expect, let us say, Q4 quarter to be reasonably good broadly?

Bhushan Nemlekar:

Yes. See, I tell you because real estate is not like FMCG business, where every quarter whenever we launch, the quarter goes up and when we complete some project, revenue gets recognized. So, normally, there can be a bulgy effect in quarters that way.

Paras Chheda:

Right, but typically, let us say, Q4 will look good and hopefully, on an annual basis, we will sort of continue to do well.

Bhushan Nemlekar:

Yes, it will be a positive trend.

Paras Chheda:

Just last one thing, sir. Now, we have, let us say about Rs. 2,500 odd crores, right and let us say this year, last year we did Rs. 180 crores and this year we could do whatever Rs. 200-Rs. 220

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Sumit Woods Limited February 11, 2025

crores somewhere in that region. I am just sort of guesstimating. So, for FY26 and FY27 for the next 2 years, what kind of revenue in general do you think you could be executing generally? I mean ballpark numbers?

Bhushan Nemlekar: Very difficult to give a number, but we have in hand. Paras Chheda: But like a broad target in mind, which may or may not get labeled?

Bhushan Nemlekar: We want to be on a positive territory. We see that the Company should grow at least 20%. That is what our target is. Paras Chheda: Understood. And this operating EBITDA margins will be sort of? Bhushan Nemlekar: That hopefully will increase because the projects we have taken now are at a better location where we get, we find a better realizable value of the product plus lot of debt level has gone down. So, that will also help us to add to the margins. Paras Chheda: Right. Correct. That is good enough for me. Thank you.

Moderator: Thank you. Before we take the next question, we would like to remind participants to press ‘’ and ‘1’ to ask a question. Next question is from the line of Jairaj Jain, an Individual Investor. Please go ahead. Jairaj Jain: Hi. Thank you for the opportunity. So, like my first question is, can I share some detail about the customer response and free booking status for your like Prabhadevi redevelopment project? Bhushan Nemlekar: So, Prabhadevi redevelopment project we have acquired in December. So, we are expected to launch in Quarter 2 or Quarter 3 of next financial year I am talking about. So, there we are expecting to launch 3 BHK and 4 BHK apartments. That is what our target is to launch there. Jairaj Jain:* And are you getting us any kind of bookings and all like what sort of?

Bhushan Nemlekar: So, right now, we have not done any booking. We are at an approval stage. So, once we get the approval and RERA in place, then we will start the bookings of the project. Jairaj Jain: So, like what will be the anticipated contribution of this new redevelopment project? Bhushan Nemlekar: We are expecting a topline of around Rs. 500 crores to be added to around roughly Rs. 500 crores. Jairaj Jain: In FY26 or next quarter?

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Bhushan Nemlekar: No, it will be executed next 3 years because normally the project cycle is 3-5 years. So, once we launched, then after 3 years it will get executed.

Jairaj Jain: Great. Thank you.

Moderator: Thank you. We will take our next question from the line of Madhur Shah, an Individual Investor. Please go ahead.

Madhur Shah: So, tell me, how was the Reserve Bank of India rate cuts impacted the housing demand and your sales pipeline? Bhushan Nemlekar: So, what we see as Reserve Bank of India stand, they want to have a softening interest rate regime going forward. So, we see that maybe a 0.25 basis point may not have a big impact, but the stance is very clear that don't want to raise any interest rate. They want to soften it more and more. The RBI is going on a softer stance with the rate of interest, but the banks eventually have to transfer that to the customers. So, we are waiting for the banks to see that the end effect to come and I see that in next one month, we will see that effect.

Madhur Shah: And also tell me what is your Company's perspective on the revised income tax plan in view of the real estate demand?

Bhushan Nemlekar: So, as per the budget that announcement was made, I think it is quite clear middle class focus centric budget that government wants more and more people to come on the income tax new regime and then they have given up to Rs. 12 lakh, if you are able to file the return, you will get the rebate, so you don't have to pay tax. So, definitely, the disposable income in the hand of individual is going to be more and that is going to help the economy and once the other industries in the economy play better, automatically, the real estate gets benefited out of it.

Madhur Shah: Thanks. That is it.

Moderator:

Thank you. Ladies and gentlemen, to ask a question, please press ‘*’ and ‘1’ on your phone now. Next question is from the line of Riya Bansal, an Individual Investor. Please go ahead. Riya.

Riya Bansal: Yes, hi, good afternoon. Thanks for the opportunity. So, my first question is that what were the key drivers behind the growth in total income or Q3 FY25?

Bhushan Nemlekar: So, we are now taking projects in our Sumit Woods Limited plus we are taking bigger projects. We are taking projects in our Sumit Woods standalone balance sheet projects now, plus the size of projects has gone up. So, the revenue topline, if you see minimum projects, we are looking at in the current year as well as the future is Rs. 200 crores plus projects. So, because of that and the capability to execute the project is already there with us. So, that is going to help us to get more projects and execute larger projects at the same time.

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Riya Bansal:

Thanks. My next question is that what were the primary reasons for the decline in consolidated total income for 9 months FY25 as compared to 9 months FY24?

Bhushan Nemlekar:

The reason is that because in this quarter there were no new launches or no new completion of the project. So, it is just a continuity. So, certain revenue has not gotten in this quarter. Going forward, we will recognize once we get the Param agreements registered more than 25%, we will be able to recognize. And then that is the reason, and the projects have been completed. So, in the consolidated balance sheet, all the projects, so there is no revenue, no new revenue is going to come into standalone balance sheet. So, that is the reason if you see a dip in the 9 month’s period.

Riya Bansal:

Thank you so much.

Moderator: Thank you. We will take our next question from the line of Mahesh Seth, an Individual Investor. Please go ahead.

Mahesh Seth: Thank you for the opportunity. And my first question is EBITDA margin for 9-months FY25 is around 21.67%. So, my question is that how sustainable is this level of profitability in upcoming quarter?

Bhushan Nemlekar: So, we are quite hopeful that will be able to better our margin going forward because we have reduced our debt a lot plus the revenues that new projects we have taken in the city side like the Dadar, Mahim and Santacruz which will help us to improve the margins in the project. With the question of EBITDA margin, going forward we look because we have taken projects at better locations which will give us a better value. So, we see a good incremental EBITDA margin going forward that is going to be thing. So, I think Quarter 4 or next Quarter 1, Quarter 2, you will see the reflection of that.

Mahesh Seth: So, the main reason will be the debt reduction and the new project which were are going to complete?

Bhushan Nemlekar:

Yes, debt reduction and the two projects. Yes.

Mahesh Seth:

Got it. And can you also discuss the specific challenges faced by the Company in maintaining the consistent net profit growth?

Bhushan Nemlekar: So, if you see in this financial year, Maharashtra, we had two major elections and real estate industry is quite, we have lot of liasoning with government departments, we have to liaison for our approval purposes, so 2-3 months of the central government and then the state government elections. So, roughly around 4 months of activities where reduced, so that is the reason lot of approvals processes took little time, so that is the challenge we face. Otherwise, in terms of execution, in terms of financial closure, in terms of sales and revenue, right now, the market is

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good and it can be reflected. So, in terms of challenges we face is getting the approvals on time from the authorities. That is the major challenge we face. But I think now, both the elections are behind us and the government is very clear. So, going forward, we see a smooth transition in next 4 years.

Mahesh Seth:

Bhushan Nemlekar:

Moderator:

Sara Kaur:

Bhushan Nemlekar:

Sara Kaur:

Bhushan Nemlekar:

Got it. Thank you. Thank you, sir. Thank you for answering.

Thank you.

Thank you. Ladies and gentlemen, to ask a question, please press ‘*’ and ‘1’ on your phone now. Next question is from the line of Sara Kaur from YV Capital. Please go ahead.

Thank you. My question was that can you highlight the challenges that we face in project execution and how you are being addressing those challenges?

So, going forward, all the things we look at, we will require sustainable development. So, going forward will on the sustainable. The challenge is having skilled manpower in the sustainable development So, the biggest challenge for execution will be having the skilled labor going forward. Having the skilled carpenter, skilled mason, skilled fitters, skilled plumbers, so that is going to be a challenge, and a lot of skill development will have to be done at that level to get the project execution. Right now, we currently get those people, but as the scale skill and as the skill city increases, we will require that kind of skilled labor. So, we are focused on getting the quality contractors on board to execute the projects, but it is not a big challenge as such, but going forward, 3-5 years, we will have to see to get more and more skilled labors in the workforce.

And my next question was, how does we positioned ourselves against the competitors that are there in Mumbai real estate market?

So, Mumbai real estate market is a quite huge market, like I always say Mumbai has different micro markets, Western suburbs, Central suburbs, then Juhu and Andheri area, then South Bombay, Navi Mumbai. So, there are a lot of developers who do Greenfield projects as they buy out lands and do projects. We focus more on joint ventures and redevelopment. So, we don't buy out much land, we do redevelopment. And there is a fair competition, but with the track record of 38 years, 39 years at what apartments delivered, so lot of, wherever we bid for our tenders for redevelopment, we get a preferred choice and with the financial strength that we have now, that we have created in last 5-7 years, we are able to get good projects. So, the Prabhadevi project we got was a better project in a better location. In going forward, we are bidding for many new projects also and we hope that we will get a few more projects of that, so the competition is there, but we are happy with the competition, and we are updated. We want to be ahead of the curve of the competition.

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Sara Kaur:

Bhushan Nemlekar:

Sara Kaur:

Moderator:

Paras Chheda:

Bhushan Nemlekar:

Paras Chheda:

Bhushan Nemlekar:

Paras Chheda:

And my last question was that recently, we have seen there was a hold from the government side on the infrastructure that were happening in Mumbai because of the health, because of the air condition, so how we see that coming in future and how we are going to tackle such conditions to put the particular project on hold?

So, Mumbai, in a way it is an island best because of the winds and all, we don't find big challenges but in December and Jan, particularly when we have little fog around, there is a challenge and this is a challenge for the whole city and as the citizens of the city, we are also concerned that our air quality has to be good. So, whatever precautionary steps that we take on our side to control in terms of the dust particles being getting polluted or whatever controlling measures that the corporation and suggest, we all follow that as per the norms which help us to reduce the construction, but going forward we see there will be some kind of policy that BMC will formulate for such kind of activities which includes infrastructure development like roads and metros as well as for the construction development. So, we see in a way, there will be a policy going forward which all the citizens will have to follow and it is in the interest of the city because we will get some quality air for everybody.

So, that is all from my side, thank you.

Thank you. We will take our next question from the line of Paras Chheda from Purpleone Vertex Ventures LLP. Please go ahead.

Yes, sir. Sir, you mentioned that you have got Rs. 2,500 crores of orders or projects to be executed over the next 3-5 years and some of the previous projects have sort of come to an end, so we will have new launches etc., coming forward. So, now, of this Rs. 2,500 crores projects, could you sort of elaborate broadly, in terms of what kind of revenue could it be back ended, which projects could be the ones that are starting and the size of those projects just broadly elaborating over the next 3-5 years, how the revenue could pan out on these?

See out of the Rs. 2,500 crore projects, Sumit Param, which is roughly around Rs. 400 crores topline is already launched in August. Then there is.

And that one could be executed over the next two years?

Yes, two years. Then there is Gurukrishna project which is already at a completion stage, which revenue has been already recognized. Then, we will see a project in Bhayandar which we had which we will be launching. And there will be a project in Santacruz in Sumit Pragati Bhakti Sudha that also we are expecting to launch in next 2 quarters. So, around 4-5 projects, we are expecting to launch in next Quarter 2 to Quarter 3. So, we see a good pipeline.

And what was the size of these projects broadly?

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Bhushan Nemlekar: So, roughly, if you see total will be Rs. 1000 crores plus projects that we will be launching. So, with the current already launched and next 2-3 quarters, I expect around Rs. 1,000 crores projects to be launched in the next 2-3 quarters subject to the approval and RERA getting in place. So, what happens, sometimes that approval gets one month delayed, then the quarter changes from Quarter 2 to Quarter 3 or sometime late. So, it can happen that one quarter here or there, but we are expecting to launch around Rs. 1,000 crores of project in next 2-3 quarters.

Paras Chheda: Sir, just one follow up question. When you say that you had the project launch, how is the revenue recognized, just to understand, how does this process work, sir?

Bhushan Nemlekar: So, revenue is recognized as per that percentage completion method. So, once the project is launched and we sell and we take the booking from the customers, 10% is received as per RERA we register their agreement of that unit. ICAI Institute rule, 25% of the work has to be completed to start recognizing the revenue in a project. So, we have to follow that method. So, the launching when we say we launch a project, we take the booking, so we have the commitment, but the percentage goes in next 3-4 years as per the cycle of the project.

Paras Chheda: So, let us say, if you have certain pre-bookings on a project, you cannot recognize that revenue in that immediate quarter, you will have to complete 25% of your work? Bhushan Nemlekar: Yes. Paras Chheda: To recognize those pre-bookings etc., revenue that you?

Bhushan Nemlekar: So, that is an advance like in our books and then once we register and complete 25% of the work, we recognize the revenue. Paras Chheda: And there from, after doing the 25% as and when you proceed with the project, you will keep recognizing the? Bhushan Nemlekar: It means once the project goes 50%, then the 50% is recognized as per the schedule of the project. Paras Chheda: So, in terms of 25% is how it is recognized, is it? Bhushan Nemlekar: Yes, not in terms of 25%, it can be 40%, it can be 60%, for minimum 25% has to get completed to recognize the revenue, to start recognizing. Paras Chheda: So, once you have done, this is the last question, let us say, 25, once you have done that 25 in a quarter and you recognize the previous pre-booking etc., that is all done, now the project is in progress.

Bhushan Nemlekar: Yes.

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Paras Chheda: So, for the next quarter, how will you recognize the revenue? What could be the metric there? Bhushan Nemlekar: Just to give an example, if 25% next quarter say 15% work is completed as per the total work, so 40% will be recognized then, 40 then that 15% will be recognized in that quarter. Paras Chheda: Understood. So, that incremental 15% will be recognized in that quarter? Bhushan Nemlekar: Yes.

Paras Chheda: So, on and so forth. So, minimum 25 is to be done and then on whatever actual basis where you have completed 10%, 15%, 30% or 20% that will be recognized in that particular quarter? Bhushan Nemlekar: So, there is RERA guidelines also which we have to follow, and RERA has actually helped us to streamline that guidelines and we follow that and accordingly recognize the revenues. Paras Chheda: I understood, but broadly, this is how it is. So, first 25% and then on actual basis whatever you complete you recognize in that quarter?

Bhushan Nemlekar: Yes.

Paras Chheda: Thank you, sir.

Moderator: Thank you. Ladies and gentlemen, we will take that as the last question for today. I now hand the conference over to Ms. Chandni Chande from Kirin Advisors. Over to you.

Chandni Chande: Thank you everyone for joining the conference of Sumit Woods Limited. If you have any queries you can write to us at research@kirinadvisors.com. Once again, thank you for joining the conference. Thank you, Bhushan sir. Bhushan Nemlekar: Thank you. Thank you for hosting. Thank you. Moderator: Thank you. On behalf of Kirin Advisors, that concludes this conference. Thank you for joining us and you may now disconnect your lines.

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