Ajmera Realty & Infra India Limited (NSE:AJMERA) Q3 FY23 Earnings Concall dated Jan. 30, 2023.
Corporate Participants:
Sonia Agarwal — Manager – Investor Relations
Dhaval Ajmera — Director
Nitin Bavisi — Chief Financial Officer
Analysts:
Pankaj Tanna — Varun Investments — Analyst
Jeevan Patwa — Sahasrar Capital Private Limited — Analyst
Harish Shah — HS Capital — Analyst
Shree Gopal Agarwal — Aagman Advisory LLP — Analyst
Bhupendra Tiwary — ICICI Securities Limited — Analyst
Sudharshan — — Analyst
Avinash Gupta — — Analyst
Tanushree Dutta — IndSec Securities — Analyst
Presentation:
Operator
Ladies and gentlemen, good afternoon, and welcome to Ajmera Realty & Infra India Limited Q3 FY 2023 Earnings Conference call. We have with us today Mr. Dhaval Ajmera, the Director of the company; Mr. Nitin Bavisi, the Chief Financial Officer; and Ms. Sonia Agarwal, the Senior Manager for Investor Relations. [Operator Instructions]
I now hand the conference over to Ms. Sonia Agarwal. Thank you, and over to you.
Sonia Agarwal — Manager – Investor Relations
Thank you. Good evening, everybody. And thank you for joining us for the Ajmera Realty & Infra India Limited third quarter FY ’23 conference call. We will begin the call with the opening remarks from our director, Mr. Dhaval Ajmera, followed by the business performance from our CFO, Mr. Nitin Bavisi. The operational updates of the company have already been shared in the second week of January. The investor presentation and the press release based on the financial results adopted by the board can be downloaded from our company website and have been uploaded on these stock exchanges.
Before we begin, I would like to state that some of the statements in today’s discussion may be forward-looking in nature reflecting the company’s future outlook and may involve certain risks and uncertainties that the company may face.
I would like to now hand over the call to our Director Mr. Dhaval Ajmera. Thank you, and over to you, sir.
Dhaval Ajmera — Director
Good evening, everyone. Thank you for joining the Ajmera Realty & Infra India third quarter and nine months FY ’23 earnings call. We are pleased to share the highlights of the successful operation performance of the last nine months with you.
As India came to be recognized as the fifth largest economy in the world last year, favorable tailwinds and good performance in the real estate sector has trended the positive sentiment. This has translated into commercial and residential real estate becoming more stable investment options. While low home loan rates have led to increased demand in the residential sector last year, this industry has continued to sustain demand despite the increase in interest rates and rising housing prices. With reports of an expected downturn in the global housing market, Indian real estate is likely to further expand on the back of a massive infrastructure push by the government, strong end user demand, and resilience in the sector in general.
Coming back to our company, I would like — I’m very pleased to share that we have recorded a sales of INR701 crores in the period of nine months of FY ’23. This value is 1.6 times of the FY ’22 annual sales number and also surpasses the annual sales of FY ’21, which was outstanding for the company at INR615 crores. The nine-month sales volume has also increased by 69% year on year to 301,000 square feet. These incremental sales illustrate demand for our high-quality construction and the confidence among the buyers across existing, ongoing, and especially recently launched projects.
Moving to project update across our locations. The product offering from Wadala suburbs in Mumbai spans across ready-to-move-in luxury projects from our ready-to-move-in projects like Aeon, Zeon, Treon, and our midmarket projects like Greenfinity and the compact luxury projects like Manhattan which is under construction. After successfully launching Ajmera Manhattan at the beginning of FY ’23, it went on to be recognized as the top-selling housing project in Mumbai eastern suburb. We have booked sales of INR526 crores corresponding to 37% of sold inventory from the project as on 31st December 2022.
We exhibited fast-paced execution capabilities at Greenfinity where the superstructure was constructed in around 13 months. The project is currently at finishing and MEP stages, and its completion is expected in first quarter of FY ’24. We have already booked sales of INR147 crores in this project, corresponding to about 76% of the inventory. Another example for our strong execution is the commercial boutique offices at Sikova in Ghatkopar in Mumbai. The project completion is expected also in quarter one FY ’24 as it also is nearing completion stage, and we have booked sales of INR187 crores corresponding to 77% of the inventory.
As announced earlier, we have been aggressively scouting for various low capex development opportunities to expand the Ajmera footprint across the city of Mumbai, including redevelopment projects. As a furtherance to this, we acquired the high-end residential project in Juhu known as Ajmera Prive where we recently launched it after getting the completion certificate and RERA certificate in the month of October and very happy to announce that in such a high-end development — although it being such a high-end development, we’ve already sold — and started selling — sold about 10% of its inventory.
From Mumbai, moving on to Bangalore, which is our mid-luxury project, Nucleus, 84% of its residential inventories were already sold. For the residential wings of Nucleus A and B, we have received OC and is ready-to-move-in project, whereas nucleus C wing, which is currently under construction at an advanced stage of completion. We’ve also received the OC of the commercial project, and we are very much aggressively speaking to a lot of end user buyers to have a tie up so that we can be able to sell or lease that.
Under the affordable segment, we have partnered with Xanadu, a marketing company, to amplify sales momentum for our Lugaano and Florenza project. During the balance of FY ’23 and ’24, we have a total of three more potential launches with an estimated carpet area of 1 million square feet for an estimated revenue of INR200 crores odd. We are confident on launching two of these projects in the coming quarters very soon with a total revenue visibility with an estimated of about INR4,000 crores, which is coming from our existing and ongoing projects. We have a further potential development of 11.8 million square feet from our own land banks which is established very much in Mumbai and MMR region, which is considered as a real estate gold mine because land is very scarce in Mumbai as we all know. We will unlock this massive development potential according to the market demand and supply situations in the years to come. The success of Ajmera Manhattan will certainly accelerate the unlocking of this potential.
As a leading real estate player, we stand by the tenets of robust execution and timely project completion and continue to aggressively evaluate asset-light JV/JDA models and also look at some projects which are available under distress or a tie up which will help us grow and the partner also grow strategically. We’ve had a great run in the recent quarter despite some macroeconomic headwinds, and we expect this momentum to continue. We are optimistic that the sustained resilience in real estate sector and the strong brand value will aid in our achieving 5 times growth plan.
I would now like to hand over this conference call to our CFO, Mr. Nitin Bavisi, who will take you through the performance highlights of our company. Thank you very much.
Nitin Bavisi — Chief Financial Officer
Thank you, sir, and good evening, everybody. On behalf of the company, we welcome you to the earnings call of the third quarter [Phonetic] and nine months FY ’23. The financial and operational numbers have already been uploaded on the exchange. I would like to take you through the key operational and financial performance numbers.
To start with the operational numbers update for nine months. Sales stood at INR701 crores, which grew 126% on YoY basis on the back of recent launches during this period. The sales volume for the period stood at 301,000 square feet recording a significant growth of about 69% on YoY basis. Our collections were also robust which recorded at INR429 crores, which is almost 42% jump on a YoY basis.
Coming to the quarterly operational numbers, we recorded sales value of INR128 crores, which is an increase of about 19% YoY. The sales volume has also improved marginally to 63,595 square feet carpet basis. The collections for the quarter improved very significantly by 40% [Phonetic] YoY to INR116 crores. The realization per square feet also improved 16% on a YoY basis to about INR20,152 per square feet during this period.
Coming to the financial performance, which is even more exciting and I’m happy to share that during the nine months of FY ’23 our revenue stood at INR323 crores, which is about 6% increase on a YoY basis. What is more exciting is the EBIDTA and the PAT level where the margin traction has happened, our EBIDTA stood at INR99 crores, which is 24% increase on a YoY. The EBIDTA margin stood at 31%, and the PBT stood at INR77 crores, which is an 82% increase YoY basis. The PBT margin also improved to 24%. Our PAT grew by an impressive 80% and stood at INR56 crores, while the PAT margin improved 720 basis points on a YoY basis to 17%. It is my pleasure to share that this PAT of INR56 crores has surpassed the annual PAT level of INR46 crores that of the FY ’22. The PAT margin exponentially grew by about 88% as compared to 9%, which was the prevailing margin range in which we were operating till FY ’22.
Our total revenue stood — for the quarter stood at INR81 crores, which is 15% rise YoY. Our quarterly EBIDTA improved to INR23 crores, a 11% increase on YoY basis. The EBIDTA margin stood at 29%. The quarterly PBT stood at INR15 crores, a 19% increase, and the PBT margin stood at 19%. The quarterly PAT stood at INR11 crores, a 10% increase with the margin at 13%.
What is more significant because of this robust cash flow from the operating, the sales collection, and as well the repatriation [Phonetic], the debt profile has improved significantly and that’s really showing into our numbers. We deleveraged during this particular quarter by about INR38 crores, which is about 5% of the total debt book which was outstanding. And we stood at INR788 crores as we speak in terms of the quarter three FY 23.
The debt reduction was supported by continued sales momentum, robust collection from U.K. and repatriation, and the sales collection from the ongoing and the launch projects received during the quarter despite actively working on the business development. So happy to share that we are putting a very striking [Phonetic] balance between the business development side, which is a low capex growth proposition versus the deleveraging proposition because that’s the — at peak level of interest rate cycle, we want to keep our interest outgo on our check basis. The debt equity ratio stood at 1.04 is on 31st December 22, which was 1.1 as compared to the earlier quarter. So as we have been giving the guidance that we want to operate under 1%. Significantly, we are into that particular journey, and we are very confident in the coming quarters we should be bringing this debt-equity ratio further down.
Weighted average cost of the debt is about 13%, which is because of the — we know that RBI reported upward revision. Because of that, the overall cost of debt has gone up. We have a total revenue visibility of about INR4,100 crores plus from the existing ongoing project and as well the future launches. To be precise OC-received projects, that is the completed projects, namely Aeon, Zeon, Treon; Nucleus A, B, which is the first phase of the residential; and the commercial phase of the Nucleus, we have the revenue visibility of INR141 crores, which is indexed [Phonetic] about six months we should be clocking this into our income statement.
Advanced stage projects, namely Sikova, Greenfinity, and Nucleus C wing, we have a revenue visibility of INR257 crores. That is also envisaged about emphasized about less than a year now. And our mid-stage project, namely Manhattan, which has just started; Lugaano, Florenza, and Prive, which is also just launched project, we have the revenue visibility of INR1,700 crores and which is going to be within the lifecycle which is about 36 months from now on. The future launches in FY ’23 and ’24 have an estimated revenue potential of INR2,000 crores. The estimated cash flows from the existing project portfolio is about INR900 crores plus. So with this set of numbers and the guidance and the exciting business development initiatives, I would like to say that we are committed to come back with a very robust numbers going forward.
And I would like to now open the session for the Q&A, please. Thank you.
Questions and Answers:
Operator
[Operator Instructions] Our first question is from the line of Pankaj Tanna [Phonetic] from Varun Investments [Phonetic]. Please go ahead.
Pankaj Tanna — Varun Investments — Analyst
Good afternoon, sir. Pankaj Tanna [Phonetic] here. Again, a good set of numbers. I just — in the end you mentioned that your revenue expectation for existing project portfolio, not the one that is going to come up, is about INR2,100 crores, and your cash flow is expected to be to the tune of about INR900 crores. Is that correct?
Nitin Bavisi — Chief Financial Officer
Yes, sir.
Pankaj Tanna — Varun Investments — Analyst
Okay. So that works out roughly about 40% figure.
Nitin Bavisi — Chief Financial Officer
Yes. So that is because of the overall unlocking of the cash flows from the already the projects which are undergoing, and we have the pre-sales numbers also available. The revenue which is the accounting concept which is the revenue — the sales has already been clocked and the revenue is yet to come into the income statement because of the POCM method of the revenue recognition. However, the cash flow is more of a forward that what is the receivables plus balance inventory to sell, balance cost to complete, and the debt on the project. That all set of numbers will decide the future cash flows. That is what our guidance about the INR2,000 crores plus which is an accounting revenue forward to come into income statement and about INR900 crores plus coming into the cash flow from the existing portfolio.
Pankaj Tanna — Varun Investments — Analyst
Okay. No, because basically when I see INR2,100 crores, you are talking about unrecognized revenue of INR573 crores and estimated value of unsold area of INR1,547 crores. That works out to INR2,100 crores. So on that you are expecting that over the next two years or next three years lifecycle of these projects to get over would be about nine months, which is about 40%, whereas your numbers for the current year is showing a return of roughly about 15% to 17%.
Nitin Bavisi — Chief Financial Officer
That is something which is the 17% which is the PAT margin which you are talking about. And you are right in terms of your reading. The number of that of the cash flow which is going to be unlocked from the project is about INR900 crores plus.
Pankaj Tanna — Varun Investments — Analyst
Okay. Yeah. And as far as your potential launches, I see that Central Mumbai 1 you have postponed it to December ’23. Earlier I think it was slightly earlier than that. Or was it always December ’23?
Nitin Bavisi — Chief Financial Officer
Correct, correct. So the projects where we are going to launch, we had earlier planned, yes, we are looking at a little later. We have put it in as a conservative number in terms of launch with the current approval status and things which we need to take currently, which is under our routine process. So that is where we pushed it a bit, but we are confident to launch it prior to that.
Pankaj Tanna — Varun Investments — Analyst
Okay. And Central Mumbai 2, and Ghatkopar are definitely slated to be March ’23?
Nitin Bavisi — Chief Financial Officer
Yes. Yes, Ghatkopar and Central Mumbai 2, both are going to be launched in March. Central Mumbai 2 maybe a month here and there, but it is under pipeline.
Pankaj Tanna — Varun Investments — Analyst
Okay. I think that’s about all. Thanks a lot.
Nitin Bavisi — Chief Financial Officer
Thank you.
Operator
Our next question comes from the line of Jeevan Patwa from Sahasrar Capital. Please go ahead.
Jeevan Patwa — Sahasrar Capital Private Limited — Analyst
Dhaval bhai, just wanted to understand how much is the debt at the corporate level and at the project level out of the total debt.
Nitin Bavisi — Chief Financial Officer
Total debt we have about INR788 crores, and at our corporate level, we have about INR550 crores as a general corporate loan, and rest of the other debts at project at Manhattan, Sikova and then Bangalore projects.
Jeevan Patwa — Sahasrar Capital Private Limited — Analyst
Okay. So this corporate level debt can be retired in like one year or so as we…?
Nitin Bavisi — Chief Financial Officer
Yes. We do have very exciting things on the table, and we should be coming back, and we will pleasantly surprise on this score as well.
Jeevan Patwa — Sahasrar Capital Private Limited — Analyst
When you will surprise, Nitin ji?
Nitin Bavisi — Chief Financial Officer
Very soon, sir.
Jeevan Patwa — Sahasrar Capital Private Limited — Analyst
Next quarter?
Nitin Bavisi — Chief Financial Officer
Hopefully.
Jeevan Patwa — Sahasrar Capital Private Limited — Analyst
Okay. Thanks a lot, Dhaval bhai.
Operator
Thank you. Our next question comes from the line of Harish Shah [Phonetic] from HS Capital [Phonetic]. Please go ahead.
Harish Shah — HS Capital — Analyst
Thanks for the opportunity. I’ll take I’ll take up some questions. If you can guide what are the annual sales and that would be in square feet which you are targeting in the coming years?
Nitin Bavisi — Chief Financial Officer
So if you see right now, we are at around 300, 000 odd square feet which we have sold. And going forward I think our whole target should be around 0.5 million square feet and plus going ahead with the kind of numbers coming up. But our target should be in the range of 0.5 million to 600,000 square feet in the coming years.
Harish Shah — HS Capital — Analyst
Okay. So if you can quantify that, by when you will be reaching the target and what would be the strategy to achieve that target?
Nitin Bavisi — Chief Financial Officer
So two things, our strategy to achieve that target is obviously launching with the pipeline launches what we have in the coming quarter, number one. Number two is with the existing projects which we have unsold inventory, if we look at even at a sustaining level of sales, which we are doing even more than that, but on a conservative side also if we look at it, we will be able to achieve this in the next financial year.
Harish Shah — HS Capital — Analyst
Okay, thank you. And just to close, just some details about your Manhattan project. When can we expect the next phase to start? And any things in pipeline?
Nitin Bavisi — Chief Financial Officer
So right now we’ve not established a timeline for it, but we are looking at certain preset numbers in terms of sales. Otherwise we will be competing within ourselves only, so while we finish one phase of it, we would like at a significant level, let’s say, we reach around 60%, 70% is that’s when we want to launch the phase 2 of it. So while looking at what we are, I think in the coming probably one year’s time, we are looking at to launch — hopefully to launch by then.
Harish Shah — HS Capital — Analyst
Okay. Couple of last questions. What’s your take on redevelopment opportunities and are you looking for like — how confident are you on looking to buy a couple of them?
Nitin Bavisi — Chief Financial Officer
Well, I personally believe that redevelopment is the future for Mumbai because that’s where the land which: A, is available with clean title; B, it is available in an established location; and third, a micro market with better projects like these will only upgrade the living lifestyle. So we are very, very gung ho about redevelopment and looking very aggressively to look at projects in this segment. Sorry, what was your next question?
Harish Shah — HS Capital — Analyst
So any update on if you have bagged any redevelopment projects or something like that?
Nitin Bavisi — Chief Financial Officer
So we are in active discussions with a lot of societies in different suburbs of Mumbai. While it is very premature for us to declare it, but soon we should be having some declarations coming in because we should — once we have some NOCs and LOIs on place with the society, that’s when we would like to declare.
Harish Shah — HS Capital — Analyst
So that would be stalling [Phonetic] in the next couple of quarters?
Nitin Bavisi — Chief Financial Officer
Yes.
Harish Shah — HS Capital — Analyst
Okay. My last question. What would be — in your past con calls, you had mentioned a lot of developments on JVs and JDs. Are you still actively pursuing them?
Nitin Bavisi — Chief Financial Officer
Yes, we are actively pursuing them. While it is a little challenging to have those kind of JV/JDAs, means in the terms which we — seem favorable for our company, but we are actively looking at a lot of projects which we are under discussion and hopeful that we should be able to close a few soon.
Harish Shah — HS Capital — Analyst
Thanks for the opportunity, and I wish you all the best.
Nitin Bavisi — Chief Financial Officer
Thank you.
Operator
Thank you. Our next question comes from the line of Shree Gopal Agarwal from Aagman Advisory. Please go ahead.
Shree Gopal Agarwal — Aagman Advisory LLP — Analyst
Thank you. Sir, my question is related to debt reduction. So while we have achieved some decline in terms of debt this quarter, so do we expect this trend to continue in the coming quarters and to what extent if you can throw some light?
Nitin Bavisi — Chief Financial Officer
Shortly, as we have been giving the guidance, in this particular quarter, we have deleveraged by about 5% which is a very significant one, and we expect that we are striking the balance between the business development initiatives and the operating cash flow to utilize for the deleverage. So this trend definitely going to be continuing. And as I guided that something exciting on the general corporate loan also is in store kind of a thing. So we should be coming with very pleasant surprises on this particular front as well.
Shree Gopal Agarwal — Aagman Advisory LLP — Analyst
That’s great. Sir, related to your international project, so any update related to saying this quarter we are expecting some kind of repatriation as before? Have you started receiving the same? And what’s the update on those projects, mainly London and Bali, is what I’m referring to?
Nitin Bavisi — Chief Financial Officer
As we have guided, the earlier repatriation is that from the U.K. market, the London. And happy to share that about INR14 crores odd which has been received in this particular quarter and the significant or the entire one which is sitting into leveraging [Phonetic] number which is almost about now 35%, 40% contributed out of this repatriation. And this trend is likely to continue because of the repatriation also expected in about next one or two quarters to complete from U.K. market.
Barring, as we have been saying, we have the inventory entitlement. So those ones is definitely going to take some time, maybe at least about 1.5 years to under construction property to come into existence and the sales repatriation which will be coming to our balance sheet.
Shree Gopal Agarwal — Aagman Advisory LLP — Analyst
Great. Sir, I’ll just squeeze in one more question. So if I talk about the future potential, you have around 11.8 million square feet. So when do you — if you could give some kind of timeline and some kind of more color as to when you plan to start developing the same, and if you are planning to do it yourself or some JV, JD, or what external partners do you envision [Phonetic] that you will be doing all these developments?
Nitin Bavisi — Chief Financial Officer
So we are looking at development — as we say, some part of it is obviously from our Wadala land and other property. While we have to look at the market response and analysis and market salability point of view. We may have the land bank, but we obviously need to look at what the demand and supply requirements are. And accordingly, we are planning to continue with our growth and project pipeline, which as I said earlier that with sales targeting of about 0.5 million to 600,000 square feet in the coming year, we will continue to grow that in terms of our numbers, which will automatically bring in those pipelines of our existing land banks and our new tie ups which we plan to do in the coming quarters, which will also help in improvising our numbers and sales.
Shree Gopal Agarwal — Aagman Advisory LLP — Analyst
Thank you, sir. That’s all from my side. Thanks, again.
Operator
Thank you. [Operator Instructions] Our next question comes from the line of Bhupendra from ICICI Securities. Please go ahead.
Bhupendra Tiwary — ICICI Securities Limited — Analyst
Hi, sir. Am I audible?
Nitin Bavisi — Chief Financial Officer
Yes, please.
Bhupendra Tiwary — ICICI Securities Limited — Analyst
I have one question. Sorry [Technical Issues].
Nitin Bavisi — Chief Financial Officer
Sorry, your voice is cracking.
Bhupendra Tiwary — ICICI Securities Limited — Analyst
Yeah, just a sec. Is it okay now? Hello?
Nitin Bavisi — Chief Financial Officer
No, we could barely hear you, please.
Bhupendra Tiwary — ICICI Securities Limited — Analyst
Is it okay now?
Nitin Bavisi — Chief Financial Officer
Much better.
Bhupendra Tiwary — ICICI Securities Limited — Analyst
Yeah. So my question was largely on the Kanjurmarg project. Been a while. Any update on the same? What is delaying launch? And I’m asking specifically because it’s a big piece and possibly a big chunk of our overall potential that will come over the mid and long term. So that was my only question.
Nitin Bavisi — Chief Financial Officer
So Kanjurmarg, we are under design and development stage, while we obviously want to launch the project and we would like to do that very soon, but we are just wanting to bring that project in a very different style as our strategic plan, and we want to do it in a better way where we really plan to make it as a big announcement and a big launch, which will actually give a complete clarity for which we are ensuring that all necessary approval, requirements, whatever is there, we clear it out once and for all in terms of obviously not take approvals process by process but all at one stage and then probably launch. Hence, we want to — our entire strategy is to launch it at a very established and a longer way. Hence, we are taking a bit time, but we will do it soon once we are very — once we have everything in hand. And that’s when we want to really establish that micro market in a very largish way, and that’s when we want to like to launch that project.
Bhupendra Tiwary — ICICI Securities Limited — Analyst
So conservatively, can we say that we are say a couple of quarters or maybe…?
Nitin Bavisi — Chief Financial Officer
Well, I wouldn’t want to honestly put a timeline to it because it can be soon, it can be later. But while we are clear with all our processes that’s when we would like to launch. Because having said that, we have enough — we are continuing to grow with our — probably our existing properties and also with new JV/JDAs, which is continuing having our growth trajectory together is what we want to really focus and take this up ahead.
Bhupendra Tiwary — ICICI Securities Limited — Analyst
Fair point, sir. Sir, I had one more question, and basically, just wanted to understand how many commercial projects do we have in our portfolio.
Nitin Bavisi — Chief Financial Officer
As of now, we have two commercial projects which are ready — one is almost ready which we will be delivering by the first quarter next year FY ’24. And one in Bangalore which is ready with OC where we are under discussions with some buyers to take it off. Hello? Can you hear us?
Bhupendra Tiwary — ICICI Securities Limited — Analyst
Yeah. Thank you. Sorry, I’m done.
Operator
Thank you. Our next question comes from the line of Sudharshan [Phonetic], an individual investor. Please go ahead.
Sudharshan — — Analyst
Hi, Dhaval, this is Sudarshan here. So just wanted to check this. 11.8 million square feet which you said you have future pipeline, how much would be the Wadala?
Dhaval Ajmera — Director
Wadala is around 4 million square feet.
Sudharshan — — Analyst
And rest would be the Central Mumbai, that 10 lakhs and all that you’re mentioning or any other lumpsums in there?
Dhaval Ajmera — Director
There different areas. A few are in central, few are in different parts of Mumbai, but primarily, the ones which we would like to really clear out is the Wadala one which is 4 million square feet out of the level 11 million.
Sudharshan — — Analyst
And this 11.8 million doesn’t have Kanjurmarg.
Dhaval Ajmera — Director
No, it has. It’s not that it doesn’t have, it has.
Sudharshan — — Analyst
Oh, it has Kanjurmarg also.
Dhaval Ajmera — Director
Yeah.
Sudharshan — — Analyst
Okay. Now Kanjurmarg has been there for long. So by some point of time you will be looking at timelines, no?
Dhaval Ajmera — Director
Correct.
Sudharshan — — Analyst
So do you think you will be able to give us some sort of a visibility on that?
Dhaval Ajmera — Director
Yeah. as I said in the earlier question also, Kanjurmarg is something which is like one of the rarest piece of land available for any one of developer like us. And we want to really bring out the best of the value to the project for which we are ensuring that we bring in the best of the design, best of the names, the best of the tie-ups to make sure that we get the better valuation which will ensure our long-term capability and vision for our company. And hence we are taking a bit of time to ensure we bring the best out of that the project.
Sudharshan — — Analyst
No, I understand, Dhaval. That should be the way, but at least you will have to put some timeframe, no? It cannot be indefinite forever because we have been discussing for last 12 months this consumer. It’s not that I’m asking you for the first time. This we’ve been discussing for last 12 months. At some point of time, you will have to give some visibility about the timeline.
Dhaval Ajmera — Director
No, but see, that’s what I’m trying to say that the visibility of the timeline is there that overall we are — it’s a largest land bank and large project, which we will be launching soon. But for us, right now we are also focusing on other projects of ours which is Wadala, which is also having a great potential in terms of the top lines and the bottom line, and the other JV/JD projects which we are looking. But having said that, it’s not that we are sidelining Kanjurmarg. But as I said, we will bring it up at the right time, which may be probably year or 1.5 year ahead.
Sudharshan — — Analyst
And any development on the demerger NCLT process?
Nitin Bavisi — Chief Financial Officer
Yeah. That one is at the last leg and the petition hearing is likely to happen, and that’s where the stage it is kind of a thing. We are very hopeful that we should be coming back and having the asset traveled [Phonetic] into the SPV level.
Sudharshan — — Analyst
Okay. Thank you. All the best.
Operator
Thank you. Our next question comes from the line of Avinash Gupta [Phonetic], an Individual Investor. Please go ahead.
Avinash Gupta — — Analyst
Hello. Yeah. Hi, Dhaval bhai. Dhaval bhai, I just wanted to understand your views on the market overall, right, how is the market, and specifically Bombay, how do you see [Indecipherable] because earlier demand was good, but now demand is sustaining or [Indecipherable] pricing moving.
Dhaval Ajmera — Director
So the market, if I have to look at — if I see generally overall has been a good run in the last year for sales all across sectors and you must have seen that in a lot of developers’ portfolio which are listed. But at the same time, overall demand was also good. Having said that, what I personally see is that the top end projects or the top end houses or whatever that is still under demand and probably not being affected with the current interest rates and all of that. But there is a slight, I would say, hesitance coming from the mid-segment buyers or the affordable buyers because of the hike in interest rate.
Having said that, they also understand this is a temporary phase and this cannot be sustained longer. So it’s not that they are completely delaying the decisions to six months or nine months or something like that. But maybe earlier if I would say the closing — from a site visit to a closure was let’s say a month, it probably has been shifted to 1.5 month, but it’s not like largely being slowed down, to be honest.
Avinash Gupta — — Analyst
[Foreign Speech]
Dhaval Ajmera — Director
Yeah. So they are taking a bit longer because they want — every buyer comes with a hope that maybe the prices in terms of interest rate just might go down or there will be some announcement. But if the value is right and they see this product being good at their budget, I think people are still jumping their decisions and going ahead very well aware that probably the hike is just a temporary phase and not permanent.
Avinash Gupta — — Analyst
[Foreign Speech] market was good, to be honest. This quarter still the same market status or [Foreign Speech]?
Dhaval Ajmera — Director
It’s too early in the month — while this month has been fairly okay for us, we are hopeful that it will continue like this in the coming quarters — coming few months also. So I don’t see a decline coming so much in the economy.
Avinash Gupta — — Analyst
Thank you. Thank you very much.
Operator
Thank you. Our next question comes from the line of Tanushree Dutta [Phonetic] from IndSec Securities [Phonetic]. Please go ahead.
Tanushree Dutta — IndSec Securities — Analyst
Hi, am I audible?
Nitin Bavisi — Chief Financial Officer
Yeah.
Tanushree Dutta — IndSec Securities — Analyst
Thank you for taking my question. I just wanted to understand with so many real estate players launching projects and more established developers coming in the MMR region, do you see this impacting the supply chain — supply-demand chain? And how do you think will Ajmera be able to differentiate itself given the intense competition?
Dhaval Ajmera — Director
Thank you for the valid question and a nice one, I would say. I personally feel that real estate is in a very good demand. Secondly, Mumbai is undergoing a massive change in terms of infrastructure to what it was earlier. So my personal take is Mumbai is slowly but steadily gaining or regaining, I would say, its financial status position, which it already was, but now with the kind of infrastructure facilities coming, there has been a good demand for houses in Mumbai micro-market or MMR micro-market, I would say, which contributes to probably 30% of the overall real estate market in India.
And primarily when we see successful launches of projects maybe like ours in Manhattan or other established developers, one thing has come out very clear post-COVID is that people are preferring to buy; A, either it is a ready house with occupation certificate; or B, they would probably invest in projects with those developers who are either established, who have delivered, who have been in this business since a longer time, and also if it adds on as a thing at least what I personally feel is that if the player is listed because they are more — they’re perceived and they are more transparent probably than others, because everything is open to the public at large.
So that as Ajmera, I feel we stand an advantage and that was clearly seen in our launches which happened recently over the last one, two years taking Manhattan or even Prive, I would have to say, the Juhu project which honestly we thought that probably would be started getting sales towards the fag end of the construction. But even just under excavation stage and under construction stage, we are seeing good demand and sales actually clocking in.
Tanushree Dutta — IndSec Securities — Analyst
Thank you for that detailed answer. Just one more question if I may ask, what is the pricing trajectory for your existing and upcoming project?
Dhaval Ajmera — Director
So every project has different pricing. Obviously, the Wadala ones are in the range of INR28,000, INR30,000 per square feet, Juhu ones are in the range of INR45,000, INR50,000, Bangalore ones are around INR10,000, and Ghatkopar Sikova is around INR17,000, INR18,000. So every project has a different price range.
Tanushree Dutta — IndSec Securities — Analyst
Okay, understood. Thank you for that answer. I will join back the queue. Wish you all the best.
Dhaval Ajmera — Director
Thank you.
Operator
Thank you. [Operator Instructions] Our next question comes from the line of Pankaj Tanna [Phonetic] from Varun Investments. Please go ahead.
Pankaj Tanna — Varun Investments — Analyst
Yeah. Just one additional question. Today there’s some note that has come saying that you’ll have acquired some Ajmera Luxe or something like that. So what exactly is that? And made it 100% subsidiary.
Nitin Bavisi — Chief Financial Officer
Yeah. So this is one company, private limited, which we are making as 100% subsidiary of ARIIL, the listed entity. And this particular is going to be a project SPV, which we are eying for a business from development perspective.
Pankaj Tanna — Varun Investments — Analyst
Okay. I just saw that note just now, so I was just wondering what it was.
Nitin Bavisi — Chief Financial Officer
[Indecipherable] please.
Pankaj Tanna — Varun Investments — Analyst
Okay. Thanks a lot.
Operator
Thank you. [Operator Instructions] Since there are no further questions, I would now hand the conference over to Mr. Nitin Bavisi for closing comments.
Nitin Bavisi — Chief Financial Officer
Thank you, everybody, for your participation and time devoted for understanding our group numbers and way forward and our strategy to take the discussions forward. We look forward to connecting with you everybody on the call and as well offline for any further clarification or help [Phonetic] you may require. Till then, stay safe, stay healthy. Thank you.
Operator
[Operator Closing Remarks]