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Ajmera Realty & Infra India Limited (AJMERA) Q4 FY23 Earnings Concall Transcript

Ajmera Realty & Infra India Limited (NSE:AJMERA) Q4 FY23 Earnings Concall dated May. 11, 2023.

Corporate Participants:

Sonia Agarwal — Manager, Investor Relations

Dhaval Ajmera — Director

Nitin D. Bavisi — Chief Financial Officer

Analysts:

Jeevan Patwa — Sahasrar Capital — Analyst

Gopal Agarwal — Ajman Advisory — Analyst

Rakesh Roy — Omkara Capital — Analyst

Rishikesh Oza — Robo Capital — Analyst

Unidentified Participant — — Analyst

Nikita Mehta — Galaxy Investments — Analyst

Presentation:

Operator

Ladies and gentlemen, good day, and welcome to Ajmera Realty & Infra India Limited Q4 FY 2023 Earnings Conference Call. We have with us today Mr. Dhaval Mehta, the Director of the Company; Mr. Nitin Bavisi, the Chief Financial Officer; and Ms. Sonia Agarwal, the Senior Manager of Investor Relations.

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. [Operator Instructions]. Please note that this conference is being recorded.

I now hand the conference over to Ms. Sonia Agarwal. Thank you and over to you.

Sonia Agarwal — Manager, Investor Relations

Thank you. Welcome everyone to the quarter four and full-year FY ’23 conference call of Ajmera Realty and Infra India Limited. We are pleased to have you all with us. The call will commence with opening remarks by Director, Mr. Dhaval Ajmera and will be followed by the business performance discussion by our CFO, Mr. Nitin Bavisi. The operational updates of the company have already been shared in the second week of April 2023. The investor presentation and the press release based on the financial results adopted by the Board can be downloaded from the company website and have been uploaded on the Stock Exchange.

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 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

Hello, everyone, good afternoon and welcome all for this conference call. Firstly, I would like to thank you for joining over here. I hope all of you are well and doing fine. I just wanted to give and understand that we as overall as the economic conditions across the world and we have seen how India has been — become more resilent in projecting mainly significant higher growth as compared to the global average which is very foreseeable in the near future. I also — we also have experienced and witnessed that the Indian economy has experienced a robust growth due to strong domestic demand, which has been augmented by government initiatives focused on infrastructure and investment. These measures include one district one product, districts export hub initiatives, PLI schemes etc.

And moreover, coming to real estate. I think the recent decision by RBI to pause the rate hike has also seen an impact, a positive impact on the market sentiment, and, thereby, people connecting and probably making the decision faster to buy homes. Overall, with all these things we have seen a good growth and contribution towards the real estate sector and the economy as a whole. Sales volume growth is expected to be healthy with maximum sales driven by end-users and then there is a visible preference for — from these buyers for organized and branded developers in all across the regions not only Mumbai, obviously from Mumbai and Bangalore but all across India.

In MMR region, we see that despite this hike in input costs, although we have not reached to pre-COVID levels, obviously, the price has stabilized in terms of input cost as compared to what it was earlier, but with also incremental home loan rates, interest rates, we have seen the demand for residential use being higher. People are continuing to buy homes, and, thereby, it is only helping companies like us to ensure that we grow year-on-year.

We, Ajmera Realty recognize that each city has its own uniqueness and understanding about the demand-supply, about what a particular city requires in terms of obviously demands for Bangalore and Mumbai are different, but with our strategic planning has helped us in successful launches, strong collections and also thanks to our execution, which has been great over the last few years. I’m very happy to announce that over the last year, we have done about INR842 crores of sales, which has been a 95% jump as compared to FY ’22 quarter of INR431 crores. The volume — the sales volume has also increased to 50%, that is 3.7 lakh square feet as compared to the earlier year.

This improved performance are a result of a strong demand for our quality projects situated at strategic locations and obviously, the brand Ajmera is creating its own legacy to continue with this momentum. Coming to the project updates, starting with our mid-luxury segment, Ajmera Manhattan in Wadala, it’s been the prime one, we have seen a great record sales of INR572 crores from this project, whereby, I’m very happy to announce that we have done 40% of our inventory of this project has been sold and the construction status of these two towers that one is at foundation stage and other is a ground level, we still have to reconstruct 40 floors more. So this shows the confidence amongst the buyers for this project and obviously, the brand Ajmera which has helped us in locking sales.

The affordable segment project in Wadala known Greenfinity has also been doing significantly well with close to sales to about INR155 crores which is 80% of the total inventory and the balance work and balance — now the work is almost complete. We have a minimum 5% to 7%, 10% of work left, which we are confident to finish this coming quarter or two. The commercial boutique office project we cover at Sikova in Ghatkopar has also been a very good success story for us where we have completed the project and sold to close to 85% and these both projects have been started just two years back and it’s nearly complete, getting to a completion within the stipulated time as we add results.

At Ghatkopar, we are coming up with our new premium residence project known as Ajmera Eden were all our necessary approvals have been in place, the RERA is in place and we are expecting the sales to happen to commence this quarter. This high-end residential development is also coming up here in Ghatkopar, and another one which we are obviously currently doing is in Jiegu known as Ajmera Prive, which is close to INR33 crores of sales in two quarters, selling approximately 23% of the inventory. Mind you, in projects like Juhu, these are usually sold towards the near completion or at completed stage, but we are happy to announce that we’ve already sold 23% of this inventory.

Our mid-luxury project Nucleus which is located in Bangalore has also sold 90% of its residential inventory. Our, C-wing which is at an advanced stage of construction almost about 80%, 90% done, we should be expected linked to be get completed in the next few months and this should be getting to come in closure this year.

Also, our other projects at Ajmera Lugaano and Ajmera Florenza, which is in the northern part of Bangalore has also started doing significant progress where we’ve achieved the full financial closure for the project and during this quarter we are also gearing up for its sales and we are hoping to start looking at numbers coming from the coming quarters.

I’m happy to announce our latest land acquisition in Vikhroli East in Mumbai, which has been a great volume in this market in Mumbai MMR. With this prime location and estimated gross value of around INR550 crores. The upcoming project is likely to be a preferred choice for prospective buyers which we are targeting to be the aspiring new entrant buyers because that’s where we see that kind of buyers coming in this micro-market, along with the price bracket, which we are planning to keep it, which will help us get new buyers and new aspirants to probably buy homes for the first time. This acquisition aligns with our growth strategy and has expanded our launch pipeline for the current fiscal year with our launch expected of this to be by the fourth quarter of FY ’24.

In the year FY ’24, we have a visibility of total four launches including the Vikhroli and Ajmera Eden project and all of these projects are in MMR. So total estimated revenue from all these more launches is approximately INR2,000 crores and estimated carpet area to sell is about one billion square feet. The total revenue visibility from our existing projects and is about 2000 crores and the total revenue visibility from the existing as well as the new launches, FY ’24 will be about 4,000 crores.

We further plan to unlock the land potentials, which we are fully paid and owned by the company. Additionally, we continue to evaluate projects in joint-venture, joint development, or for some redevelopment projects to ensure that we continue with our growth strategy, which is ultimately to ensure that we grow 5X from where we are and that is where we all are striving towards.

I would like to take this opportunity to thank all our stakeholders for their continued support and trust in our Company. We remain committed to delivering sustainable growth and creating long-term value for our shareholders. With our strong pipeline robust financial position and talented team, we are confident in our ability to navigate the market challenges and seize opportunities for growth.

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 the company. Thank you very much.

Nitin D. Bavisi — Chief Financial Officer

Thank you, sir, for such an insightful opening, and good evening, everybody. The financial and operational numbers have already been uploaded onto the stock exchange and I would like to highlight a few key parameters and a few highlights for the order for guidance.

Regarding our annual operating operational performance, I’m pleased to report that in the sales value terms, we have clocked the sales of about INR842 crores, which is about 95% growth over FY ’22 number. Further in — it’s not only the doubling of the sales from the FY ’22, we have surpassed the number which was the COVID year FY ’21 in which we had INR630 crore of the sales we have surpassed that number as well in this particular financial year.

In terms of value. Volume-wise, we have say sold 370,000 square feet on carpet basis, which is also 50% year-on-year growth. In terms of the collection, we are 1.35x that of FY ’22. Absolute number is INR532 crores for FY ’23.

Moving on to the quarterly operational performance, I would like to touch upon the sales value, which is INR140 crores, indicating year-on-year growth of 16%, volume-wise, it is stable, which is about 69,200 square feet on carpet basis. Additionally, the collection has also remained very buoyant, and it is INR103 crores for the quarter.

As regards to the financial performance for the entire FY 23, our revenues stood at INR441 crores, EBITDA stood at INR134 crores, which is 9% jump over FY ’22 number, and EBITDA margin has improved to 30% in FY ’23 from 25% that in FY22. Additionally, the PBT is INR96 crore indicating a 56% Y-o-Y jump and PBT margin also has improved to 22% in FY ’23 from 13% in FY 22, the PAT has grown 1.6x from that of FY ’22 level and the PAT margin has also expanded from 9% to 16%. Absolute basis, the PAT is at INR72 crore for the entire year. Our quarter four FY ’23 revenue stood at INR118 crore with a quarterly EBITDA of INR35 crores and an EBITDA margin of 29%. The quarterly PBT stood at INR19 crores and PBT margin at 16% and PAT stood at INR15 crore and which is 8% on a Y-o-Y basis and 42% on a quarter-on-quarter basis increased and PAT margin at 13% as compared to 8% in-quarter four that of last year FY ’22.

During the year, we have on the back of good cash flow collections on the launches and ongoing projects we have debt deleveraging by about INR54 crores, INR54 crore is the 7% reduction on our annual basis. FY ’23, our secured debt remained at INR776 crores, resulting in a debt-equity ratio of one-to-one. So we are on our journey to bring down the debt-equity ratio to one and then further going down to sub-one-level, which we had indicated as our payables. The successful launches of Ajmera Manhattan and Privy along with good amount of sales collection in the other projects, robust collection and repatriation from UK has helped us in this — achieving these operational numbers and debt reduction.

As regards to existing and ongoing projects, as well as the upcoming launches, which provide us a good revenue visibility of INR4,000 crores plus and completed projects and advanced-stage projects which we have the revenue visibility of about INR300 crores plus, which we anticipate to be realized over next six to 12 months. Our mid-stage project revenue visibility of about INR1,677 crores, which we anticipate to realize over the next 36 months.

Looking at our estimate for the launches for FY ’24, we have a revenue potential of about INR2,000 crores plus. So estimated cash flow from the existing progress for that portfolio. It’s going to be about estimate debt of INR870 crores. We are fully confident and remain committed in achieving our business objectives. Thank you for your patience listening to our credentials and our achievements. We now open for any questions, any further interactions. We look forward to your further guidance.

Questions and Answers:

Operator

Thank you. We will now begin the question-and-answer session. [Operator Instructions]. The first question comes from the line of Jeevan Patwa from Sahasrar Capital. Please go ahead.

Jeevan Patwa — Sahasrar Capital — Analyst

Yeah, I believe the sales value has been pretty good actually this year only INR840 crores. So any guidance you want to give for next year, how much you see to be on this particular base because the base has become really strong, these INR840 crores. Do you think will be able to cross INR1,000 crores sales next year?

Dhaval Ajmera — Director

So definitely as with the current project pipeline, which we have, we are launching four projects and with our existing projects which are under construction and nearly ready to sell, we are estimating that will definitely come near or definitely cross around INR1,000 crores in the coming year, which will help us obviously grow because that’s where eventually we all want to continue growing this company.

Jeevan Patwa — Sahasrar Capital — Analyst

Second part is, so there was some meeting last time said there has been some positive you want to give us. So what was it that you didn’t?

Dhaval Ajmera — Director

That was regarding the one particular structure deal which we are working on and that’s something which is still a work in progress because of the nature of the deal is that of the structure and bigger private-equity, global private-equity players involved. So that particular — that deal, once it is stratifying definitely we should come back with the positive news about it.

Jeevan Patwa — Sahasrar Capital — Analyst

Okay. Okay. And by when do you think that will happen and maybe in this quarter, next quarter?

Dhaval Ajmera — Director

It is a work in progress, sir. So we should be coming back to you sooner.

Jeevan Patwa — Sahasrar Capital — Analyst

Third question is on the consumer lines. So is there any update you want to share on land, when can we actually see some launch in the consumer?

Dhaval Ajmera — Director

Consumer land as we had also said, last time, we are looking at a very strategic plan and the launch plan for this particular project. Obviously, this being our largest one we want to ensure that we are taking entire boxes properly in terms of every aspect for approvals, infrastructure, etc, everything and we really want to bring this stable with a complete clarity and we — that is why we are taking a little more longish time. While we do what we are doing with consumers and obviously we will, it’s not that we have lifted at the backend and not doing any work the work at the back end is continued to do at a large and a better progress than what it was, but we want to bring this up at the right time maybe in some few tie probably a year-plus and then we ensure that we get a proper clarity and a proper vision for the entire project and not just launches like that.

Jeevan Patwa — Sahasrar Capital — Analyst

Perfect. And the last question, sir. So how much we are able to repatriate the funds and how much is still left?

Dhaval Ajmera — Director

So for the UK market, we’re happy to share that the repatriation has started in the second half of the financial year. So we have received about 14 crores and the balance one is in pipeline?

Jeevan Patwa — Sahasrar Capital — Analyst

14, you said, 14.

Dhaval Ajmera — Director

14, yes, sir.

Jeevan Patwa — Sahasrar Capital — Analyst

14 crore, and how much is left?

Dhaval Ajmera — Director

About another INR55 crores should be expected.

Jeevan Patwa — Sahasrar Capital — Analyst

Okay, so that is expected this year FY ’24.

Dhaval Ajmera — Director

Yeah.

Jeevan Patwa — Sahasrar Capital — Analyst

Okay, and what about the Middle East?

Dhaval Ajmera — Director

Bahrain is going to take a little longer. As we have also been guiding because we have 10,000 plus square meters of the inventory entitlement. We exited the project, we received the down payment back in ’21, so that is going to be at least about a two years time from now.

So by next one-one and a half year the project should start getting ready over there. Work is going on in full swing, and then the inventories will start selling and we should expect from 18 months to 24 months.

Jeevan Patwa — Sahasrar Capital — Analyst

Okay. Hello? Hello?

Operator

Ladies and gentlemen, the management line has been disconnected. Please hold while we get them reconnected. Ladies, for being on hold. The management has been reconnected. Thank you and over to you.

Jeevan Patwa — Sahasrar Capital — Analyst

Hello?

Operator

Please go ahead, Mr. Patwa.

Jeevan Patwa — Sahasrar Capital — Analyst

Yeah, well I was thinking that we have actually tested a few markets earlier like the Middle East and the UK, and then sometimes Ahmedabad. So do you think now, we should be focusing more on the Mumbai market as it has about more opportunities, more lucrative than putting our bandwidth in other markets, I think Bombay offers more, better this can revert towards.

Dhaval Ajmera — Director

[Technical Issues] strategic plan. If you see from the last two years, three years we have been more focused on Mumbai and MMR region and that’s where we continue to grow. As a company, we are now going to focus on three main cities that is Pune, Mumbai, Pune, and Bangalore and obviously if the opportunity rises, Ahmedabad but these are going to be our core focus areas, and all of these, obviously, Mumbai to a level will be largish more as compared to others. Sorry, Mumbai and Bangalore.

Jeevan Patwa — Sahasrar Capital — Analyst

Perfect, Dhaval Bhai. Thanks a lot.

Operator

Thank you. Before we take the next question [Operator Instructions]. Next question comes from the line of Gopal Agarwal from Ajman Advisory. Please go ahead.

Gopal Agarwal — Ajman Advisory — Analyst

Thank you for giving me the opportunity. So while we see that debt has reduced to some extent this year. So what is the kind of debt levels that you are expecting for the next two to three years? Basically, if you could get some kind of rain, if you have any target debt-to-equity ratio that you have to do nearby, that would be helpful.

Dhaval Ajmera — Director

Sure. So I’ll cut into two parts, one being the corporate-level debt which is our endeavor to budget ahead of its scheduled timelines and this is growth pipelines and the launch — launches of the project, there would be definitely a working capital of the project-level debt or the construction finance nature of the debt which will continue to be a growth driver as we move forward. So that’s the overall mix of the debt going to be. In terms of the guidance, as we are at our one is to one debt-equity ratio currently. So going forward in next about two to three years, the time spent which you are envisaging definitely very significantly below one which we would be operating into.

Gopal Agarwal — Ajman Advisory — Analyst

Okay. Got that. Sir, in terms of your land bank, other than Kanjurmarg, what are the other launches that we can expect from business any announcement that we can expect some time?

Dhaval Ajmera — Director

So as we said, there are four projects, which we are going to launch this year. One, obviously going to be the Vikhroli acquisition, which we just did that project coming up over. Then there is a project in Ghatkopar, Ajmera Eden. There is a project coming up in — two projects which are coming up again in Central Mumbai. These are the four planned projects which we are going to launch this year and beyond this also at the backend starting to make preparations for other areas wherever we have the land bank, like Wadala, in Pune, all those places wherever and Bangalore, wherever we have doing the entire workings and all of that is already in progress to ensure that we start launching it soon.

Gopal Agarwal — Ajman Advisory — Analyst

Okay. And what’s the status on the market yard, I have not heard much on that.

Dhaval Ajmera — Director

So market yard project in Pune has — there are some issues, which has come up over there and we are trying to resolve those issues and then launch it. So hopefully, we are expecting that to get solved in one or two quarters, and after that, we probably will bring the project back.

Gopal Agarwal — Ajman Advisory — Analyst

Thank you. Thanks a lot. That was all from my side.

Dhaval Ajmera — Director

Thank you.

Operator

Thank you. Next question comes from the line of Rakesh Roy from Omkara Capital. Please go ahead.

Rakesh Roy — Omkara Capital — Analyst

Hi, sir. Maybe sir, I missed can you share the detail of the Central Mumbai One and Two projects which were mentioned?

Dhaval Ajmera — Director

So these projects are in Central line of Mumbai. One is in Bhandup and other, I would not like to detail — reveal the details much right now which we are just working on the finer details. We should be expected to finish all the clearances and come back to you soon.

Rakesh Roy — Omkara Capital — Analyst

Okay. Thanks.

Operator

Thank you. [Operator Instructions]. Next question comes from the line of Rishikesh Oza from Robo Capital. Please go ahead.

Rishikesh Oza — Robo Capital — Analyst

Hi sir, thank you for this opportunity. Sir, my first question is regarding 2000 projects that you’ve been launching. So firstly, what kind of sales velocity are we expecting here?

Dhaval Ajmera — Director

So these projects where we launch, all are different. One is an affordable segment, one is a mid-affordable, other is a little up. So there are different, different areas, one is the luxuries as compared. So, every project will have a different velocity. While the affordable segment one, which we launched in Bhanduk is going to be probably envisaging have a good launch with good clocking of numbers, obviously, because the ticket size is going to be smaller, whereas the Ghatkopar one is a little luxury as compared to others. So definitely the velocity of sales cannot as compared to the affordable. So every project has its own nuances where basis their sizes and volumes the sales will happen, but overall when we see, we are targeting to see 10% to 15% to happen during the launch phase of the sales, sales volume, and, thereafter, then probably go into a sustainment mode and bring up some schemes to jack-up the sales again in between. So that’s how we are planning to do the sales launch.

Rishikesh Oza — Robo Capital — Analyst

Okay, but on an average basis, can we say like three years would be a fair assumption? Okay, so for sales point of view these projects.

Dhaval Ajmera — Director

Yeah, overall, on an average three years is a fair assumption is between three to four years, we should be able to finish off this.

Rishikesh Oza — Robo Capital — Analyst

Okay and existing projects, whilst the future projects, what kind of EBITDA margins, I was looking for to achieve here.

Dhaval Ajmera — Director

So as we have the expanded EBITDA margin, 25% plus currently, and going forward this is the operational efficiency and kind of debt reduction plan which we have, we should be having further expansion to these numbers.

Rishikesh Oza — Robo Capital — Analyst

Okay. Okay. And sir, just one last question. What kind of revenue [Technical Issues] are we expecting to do.

Dhaval Ajmera — Director

Sorry, you are not very clear with your question.

Rishikesh Oza — Robo Capital — Analyst

So basically full. Before I kind of what number of DTVs are they expected to do?

Dhaval Ajmera — Director

Your voice is breaking sir, in between, we will not be able to asking about the debt in FY ’24, is it?

Rishikesh Oza — Robo Capital — Analyst

No, no, I’m asking about deliveries in FY ’24?

Dhaval Ajmera — Director

Well, deliveries in FY ’24, so in terms of deliveries we have around six — four projects, which are almost completed are or nearing completion with OC and we are expecting around, I would say If I have to look at Greenfinity, Sikova, Nucleus in Bangalore and Nucleus Commercial, all these projects are on the verge of completion. So put together, if I have to look at the number, it will be in the range of about 4.5, 5 lakh square feet.

Rishikesh Oza — Robo Capital — Analyst

Four to five lakh square feet. Okay. And then talk about [Technical Issues].

Dhaval Ajmera — Director

Sorry.

Rishikesh Oza — Robo Capital — Analyst

In crore, rupee terms what would that be?

Dhaval Ajmera — Director

So in rupee terms, I think we have about INR200 crores, which is the sales potential out of the balance inventory available in these projects, which are the low-hanging fruits and which are under advanced stage of completion.

Rishikesh Oza — Robo Capital — Analyst

Okay, okay, no problem. Thank you.

Operator

Thank you for. Next question comes from the line of [Indecipherable] Tandon from MBS. Please go ahead.

Unidentified Participant — — Analyst

Hello, sir. Thank you for the opportunity. I would like to ask, as there is no change in the status of Bangalore projects Lugaano. What’s the rate on this? Are we facing any issue there?

Dhaval Ajmera — Director

No, we are not facing any issues over there. In fact, we have in fact we have covered for a faster execution of this project, we’ve actually closed down financial closure with a fund, and also sales have been proactively been very strong over the last few quarters, few months and the results of the same shall be declared in the coming quarter, where we shall start seeing the numbers actually rising up and that’s why we are. So the work at site is absolutely on and there are no issues coming on over there.

Unidentified Participant — — Analyst

Thank you. So, sir, on a pro-forma what made on your commercial portfolio as we had mentioned to target the commercial portfolio, about one-third of the total portfolio. Can you provide any directional changes on that?

Dhaval Ajmera — Director

So as you know, we’ve already in terms of commercial projects of our existing portfolio. Sikova was one where we are 85% complete and we are nearing handing over everything in the coming few months. The Nucleus, the Ajmera Nucleus project as morale project which has the commercial portfolio of about a lakh plus square feet has also been completed and now it is ready in Bangalore and we are about to — we are already negotiations to get those leased out or sold. As far as other projects are concerned, we are under pipeline for building up some commercials within our existing land bank and probably at the right time with the demand of those particular micro-market where we feel will actually give us the value that’s where we want to do it to launch that project, but eventually, as we said. While we essentially will continue and we also envisage to see we have about one-third of any, some particular project to be as commercials.

Unidentified Participant — — Analyst

Okay. Okay. Thank you, sir. What is the outlook for the real estate market in the company’s primary operating regions? How does the company plan to capitalize on market opportunities?

Dhaval Ajmera — Director

So, as I said, the market and the real estate is looking very-very positive and buoyant in spite of all these rate hikes, we still continue to see good demand coming and the sales velocity also happening. And even if you look at our sales volume, which has been almost double as compared to last year, even though with all these things. So what I see is listed players with — which have been in the market for a longer period, and which has gotten deliveries will always continue to enjoy this real estate demand in preference towards them as compared to others, and that is why if you see, we are very buoyant, and continuing to have aggressive growth plans and look at least four-five projects or something like that coming year-on-year for launches.

Unidentified Participant — — Analyst

Okay. Okay. Thank you, sir. I will join the queue.

Dhaval Ajmera — Director

All right.

Unidentified Participant — — Analyst

Okay. Thank you.

Operator

Thank you. Before we take the next question [Operator Instructions]. Next question comes from the line of Nikita Mehta from Galaxy Investment. Please go ahead

Nikita Mehta — Galaxy Investments — Analyst

Thank you so much for the opportunity. My — I have just a couple of questions. My question, first is regarding the demerger. It’s pending now for some time now, like what are the — what is the update on that and when are we expecting some movement in that?

Dhaval Ajmera — Director

Yeah, you are very much right in terms of your reading about the status, they are still at a petition level bent up, which is the final leg of the regulatory process at NCLT. So it has not yet come on the hearing at a petition. So we expect that to happen sooner. And then, accordingly, we can update about the development.

Nikita Mehta — Galaxy Investments — Analyst

Okay. Noted, sir. And sir, in terms of guidance, if you can give me some sales guide, what are we expecting the annual sales to be in terms of volume as well as value in the coming two-three years, if you can help me with that?

Dhaval Ajmera — Director

So if you pragmatically look at the current sales value, which is around INR800ish crores, of which we have done. And with the current portfolio where we have around we’d be almost near end current projects which are under construction. We have about an unsold inventory of INR1,400 odd crores, plus the new pipeline of INR2000 crores, which we are going to launch this year. We put together about INR3,500, INR4,000 crores is what we see other projects which are there in our hand. Then we are looking all of these to get completed in the next three to four years’ time. Obviously, the new launches will take three to four years from today from FY ’24, to, but the earlier ones also which we have already launched like Manhattan, Lugaano, Ajmera Lugaano, Florenza, all those projects are also we are targeting to get complete in three to four years’ time. So put together INR4,000 crores coming in four years is what we see and a total of about two odd million square feet of development coming in. So, on an average, if I have to look at, at least by 500,000, 600,000 square feet coming overall on an average year-on-year with INR1,000 odd crores as an average year top-line.

Nikita Mehta — Galaxy Investments — Analyst

Okay, okay. That was really helpful. Thank you.

Operator

Thank you. [Operator Instructions]. Next question comes from the line of Sushti Tandon [Phonetic] from MBS. Please go ahead.

Unidentified Participant — — Analyst

Okay, thank you, sir. Every year, we are seeing a lot of non-Mumbai base developers making an entry in the Mumbai MMR region. What’s your take on this increasing competition?

Dhaval Ajmera — Director

Well, Mumbai has really reference to a lot of developers from Mumbai obviously, and outside because this market is growing primarily because there has been a great infrastructure push which has come from the government, which is actually making Mumbai city very nearer and suburbs very nearer to each other. Obviously, this means a lot of ease of communication and for every suburb and every area, so hence. And obviously, Mumbai being the financial capital of India, which has seen and with the economic growth of India, I think all these factors put together it just shows the demand for Mumbai coming across, and hence there has been a great demand and if you look at launches or projects which are coming up with good branded and good players which have been in any particular micro-market for longer or have given good deliveries has seen success. So I don’t think whoever has been in this particular micro-market or if any good entrant players coming in will definitely start seeing success if the product and deliveries have been on-time.

Unidentified Participant — — Analyst

Okay. Okay, sir. That’s it. Thank you.

Operator

Thank you. Next question comes from the line of Rishikesh Oza from Robo Capital. Please go ahead.

Rishikesh Oza — Robo Capital — Analyst

Thank you for the follow-up. Sir, my question is regarding the pending collection. Could you give us a number for pending collections that we have for the projects we have already sold?

Dhaval Ajmera — Director

So in terms of the existing portfolio, it make even though overall cash flow generation, which is going to be about INR870 odd crores estimated payments. In terms of the pending collection it is INR620 crores from the — all the three baskets like completed, advanced-stage projects and mid-stage projects.

Rishikesh Oza — Robo Capital — Analyst

Okay. Okay, thank you.

Operator

Thank you. Ladies and gentlemen, that was the last question for today. We have reached the end of question-and-answer session. I would now like to hand the conference over to Mr. Nitin for closing comments.

Nitin D. Bavisi — Chief Financial Officer

Thank you, everybody, for your participation and very insightful questions which really going to help us further to improve and come back with very robust performance — performances. Till then, we wish that everybody remains safe and happy. Take care. Goodbye. [Operator Closing Remarks].

Tags: construction
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