Arihant Superstructures Limited (NSE:ARIHANTSUP) Q3 FY23 Earnings Concall dated Feb. 06, 2023.
Corporate Participants:
Ashok Chhajer — Chairman & Managing Director
Parth Chhajer — Promoter & Whole Time Director
Abhishek Shukla — Chief Strategy Officer
Analysts:
Kapil Yadav — Dolat Capital — Analyst
Balasubramanian — Arihant Capital — Analyst
Ketan Kotecha — Ketan Kotecha & Company — Analyst
Unidentified Participant — — Analyst
Abhishek Getam — Alpha Invesco — Analyst
Vaibhav Kacholia — VK Capital — Analyst
Presentation:
Operator
Ladies and gentlemen, good day and welcome to the Q3 FY’23 Earnings Conference Call of Arihant Superstructures Limited hosted by Dolat Capital. [Operator Instructions] Please note that this conference is being recorded.
I now hand the conference over to Mr. Kapil Yadav from Dolat Capital. Thank you and over to you, sir.
Kapil Yadav — Dolat Capital — Analyst
Thank you, Michelle. Good afternoon, everyone. On behalf of Dolat Capital, I would like to thank the management of Arihant Superstructures Limited, for giving us the opportunity to host their Q3 FY’23 earnings call. From the management team we have Mr. Ashok Chhajer, Chairman and Managing Director; Mr. Parth Chhajer, Promoter and Whole-Time Director, and Mr. Abhishek Shukla, Chief Strategy Officer.
I would like to hand over to call to the management for their opening remarks. Over to you, sir.
Ashok Chhajer — Chairman & Managing Director
Thank you, Mr. Kapil. Good afternoon, everyone, and thank you for taking the time-out to join Arihant Superstructures Limited conference call to discuss Q3 and nine months to FY2023 results.
First, I will go through key business parameters for Q3 FY2023 followed by the financial highlights of the quarter. Before handing over to Mr. Parth Chhajer. To start with, the company has achieved sales booking of 505 units in the third quarter, which aggregates to INR224.3 crores in value term. Growth of around 22% and — 21% to 22% Y-o-Y, with this, the sales of — for the nine-month period is 1,159 units and INR548 crores in booking value. The total area sold for the period is close to 9.5 lakh square feet and the total collections for the quarter and nine-month period stood at INR89.8 crores and INR318 crores respectively.
During the quarter, the construction will commence for our latest affordable housing project, Arihant Aaradhya, which is located near Kalyan. The project was launched in December ’22 and we have already sold 35% of the launched inventory that is about — that is 440 units. We are gearing up for new launches in the next two quarters, which will brief you on the course of the call. We are also venturing in plotted development space with the addition of 25 acres of Mumbai-Pune Highway, near Hiranandani Fortune City, Panvel. We will again throw more light in the call later. With this, the company has added approximately 2.4 million square feet with gross development value of INR1,100 crores plus with the project portfolio in this financial year.
Now coming to the financial highlights, the total revenue for the quarter stood at INR115.21 crores, as against INR88.6 crores in Q3 FY2022, registering a year-on-year growth of 30.1%, at EBITDA level, the figure stand at INR29.93 crores as against rupees INR18.47 crores in Q3 FY2022, that is a year in — year-on-year growth of 62%. The company has also registered a strong growth in consolidated profit-after-tax of 72.3% to INR19.95 crores in Q3 FY2023 as compared to INR11.58 crores in Q3 FY’22. The nine-month FY’23 too is showing a good picture, the revenues, EBITDA and profit-after-tax, has grown by 24.7%, 28% and 34.7% respectively. The revenue for this period is INR325.7 crores, EBITDA is INR69.2 crores and PAT is INR42.4 crores, which are very close to the full year figures for FY’22. This quarter also marks a breakout in terms of our PAT figures, which has in trailing 12 months has crossed INR50 crores to be precise, it is about INR52 crores. So EBITDA margins have also improved by 57 basis points, so 21.25% and PAT margins by 97 basis points to 13.03%.
With this now, I will hand over the call to Mr. Parth Chhajer, additional Whole-Time Director, Arihant Superstructures. Thank you.
Parth Chhajer — Promoter & Whole Time Director
Good afternoon, everyone, and welcome to the conference call for Q3 FY’23 earnings and business update. Thank you everyone for joining. We are happy to see business grow despite the inflation and higher mortgage rates. The Union Budget 2023 has provided the real estate sector with crucial support and incentives, the government has announced several measures to stimulate investment and economic growth with an increase in capital expenditure infrastructure investment to INR10 lakh crores, which shall boost the economy and create new job opportunities.
Growth in real estate is expected, in-line with the increase in outlay of PMAY and CLSS schemes to INR79,000 crores until 2027. In Q3 FY’23, our company — our company’s construction activities have picked-up quite well in the quarter and we have seen tremendous progress in the execution across all our sites in Mumbai and MMR, Jodhpur, Rajasthan. We have received OC for the new tower at Arihant Adita, other sites in MMR region are also closing towards the delivery and OC applications.
We also launched our Kalyan project in this Q3, Arihant Aaradhya and we have seen a good response from the homebuyers. The product has created a slight disruption in the Kalyan micro-market and offers quality living to our homebuyers at an affordable price when compared to premium pricing in the vicinity. Construction activity is in full swing for four towers. We have also received approvals for Arihant Aayan at Titwala and revised approvals for the Arihant Ashray at Khopoli in Q3, which shall be open for sale in the upcoming quarter. After heartening response of the [Indecipherable] last year, we are also gearing up for the new launch at Arihant Aspire in Panvel.
On the business development front, we have acquired 25 acres of land at Chowk, which is off the Mumbai-Pune highway. This is a total outright purchase of land, wherein we would be venturing into horizontal development. We shall be coming up with lots in development being offered to the plot buyers. The project development potential shall be around 6.6 lakh square feet area spread across 275 plots. Going forward, we also have a good robust pipeline in the coming quarter as well as financial year 2024, which is explained out in the presentation uploaded on the exchanges with them.
I would like to now throw the floor open for questions. So the management is there to take the questions. So over to the questions.
Questions and Answers:
Operator
Thank you very much, sir. [Operator Instructions] The first question is from the line of Balasubramanian from Arihant Capital. Please go ahead.
Ashok Chhajer — Chairman & Managing Director
Yeah, good evening.
Balasubramanian — Arihant Capital — Analyst
Good evening, sir. Congratulations for good set of numbers. My first question, sir, regarding the Aayan project, earlier it was planned Q3 FY’23, now it’s more into Q4. And one more project Shilphata project is planned in Q1 FY’24, I think now it’s moved into Q3. Could you please mention some specific reasons for the delay in the projects?
Ashok Chhajer — Chairman & Managing Director
It has taken not only this, three to four projects are taken up delay in approval of times and with Shilphata project, we are still adding on small portion of more land, hence the design would be completed along with that. There had been the planned approvals for at least two to three phases, which were in Q1, Q2, in this year could not happen up and the delay — due to delay, this would be — having this should be seeing daylight in this quarter and the coming quarters. So we will be able to see up more launches continuously from this as well as in the next quarters.
Balasubramanian — Arihant Capital — Analyst
Okay, sir. My next question, in terms of interest cost are increase little bit INR5 crores to INR8 crores, like what would be the debt levels and what is the finance cost and what kind of maximum [Indecipherable] level has been expect by this year?
Ashok Chhajer — Chairman & Managing Director
Our construction finance happens to be at 12% per annum, which is from STCI and HDFC Limited and because new acquisition have been done and hence the borrowings have been taken up for purchase and acquisition of the new lands and due to this reason, the finance costs has already gone up a bit, but the business opportunities are more far yielding, which can easily satisfy. And still when we talk about debt-to-equity ratios and our control — and debt was our project receivables, we are fairly on a very good comfortable side as till now. Also, we have only three projects, which are mortgage out of 14, which are under-construction. This is how we balance it out, that the company is at a very low-risk, when it comes to debt.
Balasubramanian — Arihant Capital — Analyst
Okay, sir. Sir, on the realization side, you have seen improvement. In FY’22, the realization around INR5,536 per square feet, but in nine month FY’23 INR5,768 per square feet. It’s almost more than 4% increase. You have taken any price hikes during the quarter?
Ashok Chhajer — Chairman & Managing Director
Yeah. We have taken up the price hikes and in spite of taking price hikes, we are seeing sales happening. And this has secured the company’s businesses and it will not erode the profits, which have reached out to be — which are to be taken care due to the rise in construction costs from the last one year.
Balasubramanian — Arihant Capital — Analyst
Okay, sir. Sir, we bought 25 acres land in outright purchase in Mumbai to Pune highway. So what would be the land cost?
Ashok Chhajer — Chairman & Managing Director
This is INR38 crores, INR38 crores best under the registration INR40 crores — INR41 crores.
Balasubramanian — Arihant Capital — Analyst
INR41 crores. Thank you so much sir. I’ll come back in the queue.
Operator
Thank you. [Operator Instructions] The next question is from the line of Ketan Kotecha from Ketan Kotecha & Company. Please go ahead.
Ketan Kotecha — Ketan Kotecha & Company — Analyst
Good afternoon, everyone. First of all, congratulations for the fantastic quarter three results. Since company has been impressive growth and scale-up in last two years, my question is, can we expect the same growth momentum or the business scale up in coming year? Thank you.
Ashok Chhajer — Chairman & Managing Director
Mr. Ketan as we been always told — we tell that we are into percentage completion method. And [Technical Issues] companies had both match each other. And percentage completion method, I’m sure that we — profits are booked in time and when we see the — well, when we see that the sales are growing, automatically the percentage come — on percentage completion method, the revenue recognization as well as the EBITDAs and PAT numbers will always have in CAGR. And it is not like this is one-off and wind fall type of quarter. We are aware that. Yes, whenever there would be rising in sales, we will see up — we will see up the same type of performance after each sale around the building the next quarters. So be tune to it. We would be able to do up and similar kind of performance as we have done in the last 10 quarters, when we talk about after COVID, when we see the all 10 quarters, the company has being able to do a better number than the previous quarter.
Operator
Mr. Kotecha, any —
Ketan Kotecha — Ketan Kotecha & Company — Analyst
Thank you so much. That’s it.
Operator
Thank you. [Operator Instructions] We have the next question from the line of [Indecipherable] for an Individual Investor. Please go ahead.
Unidentified Participant — — Analyst
Very good afternoon. Am I audible?
Operator
Yes, sir. Welcome.
Unidentified Participant — — Analyst
First of all congratulation on great set of numbers. Last year performance we have covered in three quarters. Sir, my question on the PAT margins. So these are the sustainable margins 13% or there is any chances for decreasing in coming time, rate of interest rising scenario?
Ashok Chhajer — Chairman & Managing Director
Basically, the new — any project, which is envisaged and which are taken on newly are worked out within PAT margins of around 20% plus. And when we have seen up in debt cycle of five years, which has through in the past — in the last one decade and the majority of the lands already procured in 2010, ’11, ’12 and it’s been carried out in construction office right manner. In spite of an longer tenure, the projects are profitable and undoubtedly, we talk about one or two projects which are of — which are of 2012 — ’10, ’11, ’12 purchases, the PAT margins are less, but blended out with the new projects and the new — and the old projects, you would be able to see a similar kind of PAT margins in the coming quarters also.
Unidentified Participant — — Analyst
Fair enough. And sir, one more question, is there any fundraising plan or our internal accruals are enough to project the all sites?
Ashok Chhajer — Chairman & Managing Director
Our new acquisitions, funds will be raised. For the current projects, which are ongoing as we have always mentioned in our earlier conference calls also that we don’t — the company does not requires any working capital. It is good enough to raise to have collections and around the projects with our existing without having additional facilities in large. For the new acquisition, yes, the funds will be required. And this is the right time to acquire businesses as we have seen in Mumbai metropolitan region and Navi Mumbai in particular, seeing an big growth, a large growth, which has been witnessed by and which have been accolade by the Honorable Prime Minister during his Navi Mumbai, it was during his visit to Mumbai this last January also — this January. And this is the time to get the best of the businesses acquired. So that the company will have profitable transactions in the next five years from, so we will be acquiring and will be forth it, we basically invite investors to participate in the issuance of equity. And in that case, if we required a little bit of debt also would be procured.
Unidentified Participant — — Analyst
Okay, sir. Thank you and best wishes to you. I wish the momentum and the progress of the company will be continuing in the coming quarters. Thank you very much.
Ashok Chhajer — Chairman & Managing Director
Thank you. Thank you, sir.
Operator
Thank you. [Operator Instructions] We have a follow-up question from the line of Balasubramanian from Arihant Capital. Please go ahead.
Balasubramanian — Arihant Capital — Analyst
Thank you so much for taking my question. Sir, on the balance sheet, receivables — trade receivables have been increased around INR60 crores to INR84 crores from FY’22 to nine months FY’23 [Technical Issues] throw some more light under [Indecipherable].
Ashok Chhajer — Chairman & Managing Director
As and when the sales will increase is always the trade receivables will be aspiring up to be at least [Technical Issues] yes, still the collections are into good flow and we see about home loans and being disbursed, it generally takes around 90 days to a 100 days for an home loan disbursements from the day of client booking, hence the trade receivables would seem always in growth and we would see an increase and this would mean that in spite of good collection, if the trade receivables are in trading that shows that the sales and the client — the sales numbers are also increasing.
Balasubramanian — Arihant Capital — Analyst
Okay, sir. Sir on the project delivery side, I think we have done 471 units in nine months FY’23 we can assume in Q4, we can able to deliver 230 to 250 units. [Technical Issues]
Ashok Chhajer — Chairman & Managing Director
Hello?
Balasubramanian — Arihant Capital — Analyst
Hello, sir, Am I audible?
Ashok Chhajer — Chairman & Managing Director
Yes, you are audible.
Balasubramanian — Arihant Capital — Analyst
Yes, sir. On the project delivery unit side, we have achieved 471 units in nine month FY’23. Is that possible to achieve another 200 to 250 units in Q4?
Ashok Chhajer — Chairman & Managing Director
Yeah, Bala. So we are lined-up for the new deliveries, wherein we have already applied for OC for some projects in Taloja. So we should be able to get another 350 to 400 units under this category in this financial year hopefully.
Balasubramanian — Arihant Capital — Analyst
Fine, sir. Thank you so much.
Operator
Thank you. [Operator Instructions] The next question is from the line of Abhishek Getam from Alpha Invesco. Please go ahead.
Abhishek Getam — Alpha Invesco — Analyst
Hello. Yeah. Am I audible?
Ashok Chhajer — Chairman & Managing Director
Yeah, you are audible.
Abhishek Getam — Alpha Invesco — Analyst
Yeah. Thank you for the opportunity. Sir, I wanted to ask, once the presentation, we’ve released — the note that we have acquired 25 acres. And we also have approval of 51 acres land to be acquired in Raigarh. So is this different from the one which we have already acquired?
Ashok Chhajer — Chairman & Managing Director
Yeah, it is. In addition to the 25 — joining to the 25, so on the completion of acquisition and transaction being completed, this will total up to 76 acre.
Abhishek Getam — Alpha Invesco — Analyst
76 acre? Okay. And this will have a revenue potential of 6.6 lakhs square feet the 76 of the 25?
Ashok Chhajer — Chairman & Managing Director
Yeah. We will be going into plotted development, which is the [Technical Issues] entering today across India. And we are seeing of the change due to the project facilities we’re horizontal development is possible and the travel time is reduced due to the MTHL laying the JNPT corridors etc., which are already done up in Navi Mumbai. And so that the larger projects generally sees up and start to completion cycle of seven to 10 years and the product development, it would see an cycle of two years to three years. So the turnout would be more faster.
Abhishek Getam — Alpha Invesco — Analyst
Thank you, sir. I just wanted to ask is, so the 76 acres, which we’ll be acquiring in Raigarh. So this in all will have a potential of 6.6 lakh square feet.
Ashok Chhajer — Chairman & Managing Director
Yeah, approximately to — any large.
Parth Chhajer — Promoter & Whole Time Director
Sorry to interrupt. 6.6 lakh square feet is for the 25 acres.
Abhishek Getam — Alpha Invesco — Analyst
Understood. So 76 will have how much, so basically okay three times?
Ashok Chhajer — Chairman & Managing Director
We get back to you. Yeah, it would approximately three times.
Parth Chhajer — Promoter & Whole Time Director
Okay, for your information, it would be sold, not on square feet, but on plots and we see around 275 bungalow plots in first 25 acres, as similarly, another 500 plus in the next 50 acres. So the product development would result out to something around 700 bungalow plots.
Ashok Chhajer — Chairman & Managing Director
Okay, okay, understood. But this is not important — here plotting is important because FSI would be constructed by the developer — by the plot by himself.
Abhishek Getam — Alpha Invesco — Analyst
Okay. And sir in this area, this will mostly, what will be the buyer segment — buyer type for this. This will be a second home for the buyer. I mean, like a vacation or more sort of away from city?
Ashok Chhajer — Chairman & Managing Director
It is — the first target customers are for second home, which has seen up and big, big, big spurt in the last 1.5 year right after COVID also and we have seen further development by Wadhwa, right now taking up and huge success in the month of January. And for others — and on the same lines, we see that it is less risk of job. And undoubtedly, the target would be certain home. But when we see this region geographically, we find that we are just five kilometers away from here and there, which is high-rise development and we’re flat — where it is apartment living or for two-bedroom and three bedroom and person would be getting up more than three times the total area of what he gets in apartment in the same cost. So the living style will [Technical Issues]
Operator
Sir, I’m sorry to interrupt. Sir, your voice broke. Can you repeat your line, sir?
Abhishek Getam — Alpha Invesco — Analyst
Hello. Hello?
Operator
Yes, sir. We can hear you now.
Ashok Chhajer — Chairman & Managing Director
[Technical Issues] nearby industry area as well as the — Navi Mumbai area.
Abhishek Getam — Alpha Invesco — Analyst
Understood. [Technical Issues]
Ashok Chhajer — Chairman & Managing Director
Hello, am I audible?
Somebody can take it over.
Parth Chhajer — Promoter & Whole Time Director
Yeah, I could this. We have acquired is in Chowk, which is close to Hiranandani Fortune City at Panvel. So it’s not Patalganga.
Abhishek Getam — Alpha Invesco — Analyst
Okay. Understood. So we said that just [Speech Overlap] to adequate acres, we bought it for INR41 crores, right. That transaction is that.
Parth Chhajer — Promoter & Whole Time Director
Including stamp duty and the distribution charges, yes.
Abhishek Getam — Alpha Invesco — Analyst
Yeah. And so we raised some debt from STIC for this. And then we are now looking for one more capital gain of INR150 crores. So that will be a bit of debt — our debt and equity?
Parth Chhajer — Promoter & Whole Time Director
This would be equity and acquired for the business acquisition, it would be a mix also.
Abhishek Getam — Alpha Invesco — Analyst
Okay. So INR150 crore, you’re looking for an equity raise through IP?
Operator
Sir, your voice is breaking. Mr. Ashok Chhajer, sir, your voice is breaking, sir.
Ashok Chhajer — Chairman & Managing Director
Yeah. Whatever comes first, whatever comes first.
Abhishek Getam — Alpha Invesco — Analyst
Okay. Sir, I missed. Sorry, one minute. Last one minute, sorry, sir. Can you repeat that to me?
Operator
Sir, can you repeat what you said?
Ashok Chhajer — Chairman & Managing Director
So whatever comes first, we’d be looking at that. So it’s not just specifically for equity or specifically only debt, whatever comes first and it will mostly be a mix of both, hopefully.
Abhishek Getam — Alpha Invesco — Analyst
Understood. Thank you. That’s helpful.
Ashok Chhajer — Chairman & Managing Director
Thank you.
Parth Chhajer — Promoter & Whole Time Director
Business to be undertaken is more important and the opportunity loss would be more than any other balance sheet numbers.
Operator
Thank you, sir. [Operator Instructions] We have the next question from the line of Vaibhav Kacholia from VK Capital. Please go ahead.
Vaibhav Kacholia — VK Capital — Analyst
Congratulations on the fantastic numbers.
Ashok Chhajer — Chairman & Managing Director
Thank you. Thank you very much.
Vaibhav Kacholia — VK Capital — Analyst
My question was regarding our margin profile. So can you just explain, Ashok, like out of INR100 crores of sales, what is the operating margin and then interest and then tax?
Ashok Chhajer — Chairman & Managing Director
Abhishek, can you take it over? Abhishek, can you take it over?
Abhishek Shukla — Chief Strategy Officer
Hello? Yeah, Vaibhav, if you’re referring to our nine months figure. The total income for the nine-month period was about INR325 crores and EBITDA was INR69.21 crores. So the margin — the EBITDA margin that we have clocked for this period is about 21.25% and PAT is 42.44%, and PAT margin, it is translating to 13.03%.
Vaibhav Kacholia — VK Capital — Analyst
Right. So, Ashok, you mentioned that new projects we are targeting 20% PAT margin. So what is the thought process?
Ashok Chhajer — Chairman & Managing Director
There were, if you see four — Arihant 4Anaika. The project which is nearing completion or we are applying for occupancy. If individually if that project has seen, some of the new projects, our small sizes, which has — which — not small size, the new project, which can be seen, you’ll find that the margins are to a tune of 24%, 25%, 30%. So we can share with you how project-wise margins have made an impact — contribution. As I told that fewer of the projects where the price got settled — the cost of construction has already increased and where the lands are already with the company in the books since one decade, and in spite of interest capitalization to the land features has already been acquired. The projects are not into losses. Yes, the margins are less in that project today, but what we see coming forward. The time the Airport lands, the projects like Arihant Aspire, which are of mega sizes and which are not giving margins today to an big extent and small jump-in 10% upgrades would make up a big, big difference and we are happy that we have a good stock in-hand in that project also. You see that the airport route, see a delight in ’25 around and the balance project lifecycle is for another five to seven years. So we will get the advantage of margins with the projects which have been — which have been contributing today less, so it is a blended margin, which we see today of 13%, which already has seen as an increase. And you see that the new projects, which we envisage on the — every time we — whenever and project is taken, it is never taken with a margin of 10%, we see that the margin should be at least 20% plus and going-forward after the business cycles are completed, we come to know, how it has really functioned and how the project has the level to perform. So we see that yes, the margins would see marginal increase on Y-o-Y basis in the old projects all gets paid out.
Abhishek Shukla — Chief Strategy Officer
Okay. So sir, basically like operating level, what margins do we target? [Speech Overlap] How much?
Ashok Chhajer — Chairman & Managing Director
20% we target as margins.
Vaibhav Kacholia — VK Capital — Analyst
No. This is at net profit level or EBITDA level.
Ashok Chhajer — Chairman & Managing Director
This is the net profit level.
Vaibhav Kacholia — VK Capital — Analyst
So EBITDA will be closer to 30% and how much will the interest rate sir?
Ashok Chhajer — Chairman & Managing Director
EBITDA would be 30%.
Vaibhav Kacholia — VK Capital — Analyst
And how much will the interest rate typically? What is the planning from our side?
Ashok Chhajer — Chairman & Managing Director
So around it takes — in terms of percentages, just 10% of the total revenues is the interest cost. And when it comes to per square feet basis and filing, so it is something 5% goes towards interest, 5% tax of sell price, 5% towards marketing, 5% towards administration. So 20% of the sale price goes towards this foreheads and around 60% goes towards land cost. So project-to-project, it differs with this cycle. On an average, it would be — on an average, we aspire for margin of around 20% and when we compare with the peer comparers — with the peer developers in and around, we are pleased with better-off.
Vaibhav Kacholia — VK Capital — Analyst
Okay, fantastic. And sir this plotted development, what kind of revenues can we expect per plot or something on an average?
Ashok Chhajer — Chairman & Managing Director
We have not opened up the prices, but it would be sub INR1 crore. And it is around very, very, very hot location, it’s one of the most premium and that is what product development has not seen premium locations. So it has been always very far off where people have been tired, a, he was that whether the projects have been there, two, repute brand developers have never comes into plotted development earlier than 12 months from now. And now when we see that the biggest plans are also coming into it, it would see a new form of real-estate in Mumbai.
Vaibhav Kacholia — VK Capital — Analyst
No. So sir, like what we have paid INR41 crores for the land. So we are hoping to sell each plots of INR50 lakhs to INR1 crore. So what could be the revenue from the entire thing?
Ashok Chhajer — Chairman & Managing Director
We would be seeing up an average of INR75 lakhs as a plot sale price.
Vaibhav Kacholia — VK Capital — Analyst
Okay, got it. Thank you so much.
Operator
Thank you. [Operator Instructions] The next question is from the line of Dheeraj from ElxsiVidya Advisory. Please go ahead.
Unidentified Participant — — Analyst
Hi, thanks for taking my question. If you could tell me the new projects of Avanti and Aayan, under what company are they being launched?
Ashok Chhajer — Chairman & Managing Director
It is in the holding company, Arihant Superstructures Limited.
Unidentified Participant — — Analyst
So will own 100% of it, correct?
Ashok Chhajer — Chairman & Managing Director
Yes. Even the plotted development would be under the holding company. So our majority of the projects have now been taken up in the holding company only, these subsidiaries as and when would see up free cash flows. At that time, it would mean — it would be a thought given that should a new project we acquired in subsidiary or not. But till now further going-forward for the next two years, it looks like all the projects would come in the holding company and with 100% stake.
Unidentified Participant — — Analyst
Okay. That’s a great decision. So, thank you. The other question was for Aspire and Aakarshan [Technical Issues]
Ashok Chhajer — Chairman & Managing Director
Come again please?
Operator
Sir, your voice broke. Mr. Dheeraj, I would request you to use your handset, sir, please. [Technical Issues] Sir, your voice is breaking. We are not able to understand.
Unidentified Participant — — Analyst
Just one second. Yeah, is it better now?
Operator
Yes, sir, much better. Please continue.
Unidentified Participant — — Analyst
[Technical Issues] I was wondering, how are the pricing trends on a square foot carpet basis?
Ashok Chhajer — Chairman & Managing Director
Arihant Aspire is at an carpet basis — data carpet area, INR10,000 to INR11,000 a square feet and Arihant Aakarshan data carpet area of INR7,000 to INR8,000 a carpet area.
Unidentified Participant — — Analyst
And what kind of number are we looking for Avanti?
Ashok Chhajer — Chairman & Managing Director
Avanti would be around INR8,000 to INR9,000 rupees a carpet area of sale price and total number of contribution to the project should be around 1 million — 10 lakh square feet, which would mean around 1,200 houses.
Unidentified Participant — — Analyst
Okay. And how would you say the last two years price increases have been in these three projects? Not these three, but the first two actually Aspire and Aakarshan?
Ashok Chhajer — Chairman & Managing Director
On an average, we have seen up in price hike of around 7% to 8% to 10% on project-to-project basis across all the projects.
Unidentified Participant — — Analyst
Okay, that’s helpful. Thank you, sir.
Operator
[Operator Instructions] The next question is from the line of Girish Gulati, an Individual Investor. Please go ahead.
Unidentified Participant — — Analyst
Yeah. My question is to Mr. Am I audible?
Ashok Chhajer — Chairman & Managing Director
Yes.
Operator
Yes, sir.
Unidentified Participant — — Analyst
Yeah. So, Parth, like, just would like to know, we have a $1 billion worth of sales are coming and what kind of a company, would you like to build over the period of next five years would be like in the mid and see the next-generation has taken over all joined and so just would like to know your vision on the way forward for the company? Thank you.
Parth Chhajer — Promoter & Whole Time Director
Yeah. So as the company today, we are at around 400 employees and with the ongoing projects that we have is, almost like you said, almost $1 billion, INR7,000 crores, INR8,000 crores of seems to be done. We’d like to build a company which is built to last company, which will be. done with the mix of professional, as well as promoters involvement. But a lot of delegation is already given, especially on the sales front, all the engineering front, today also to the professional, they are able to pick-up the call them themselves. Even the Level four, Level three, Level two employees, I’ve been doing that. And the idea is that we build an organization, which will be sustainable, not just for five years, but even beyond. And we’d like to also increase the size of the company from the existing portfolio that we have of around 1.4 crores square feet, 1.5 crores square feet to 2.5 crores square feet over the next half a decade from here. And I feel, positioning us for the [Indecipherable]. The surroundings, the environment is supportive for this company to pick up the growth chart to the next level and the external factors are also supporting us, especially when we talk of the MMR as well. So I think we are one of the few listed companies, who are very much focused on the MMR bell only and we feel the opportunity lies at a great, great extent in this area and we will be the — location we’ve been looking at for the next decade.
Unidentified Participant — — Analyst
Perfect.
Ashok Chhajer — Chairman & Managing Director
Giri, what we see is that given all these things in-place, we would be able to do up four times in terms of everything, maybe the size, the people, the revenues everything, given all the capital in-place. There will be opportunities in-hand, which are coming up in five years, we can take it up to multiplier of four times.
Unidentified Participant — — Analyst
Perfect, perfect. And so far since you were talking about positioning in MMR. So in Mumbai region, Hiranandani, which today is just felt on that trust factor for the customer or whether it is a financer, whether somebody an investor wants to back it up, but trust level what they have build is unparalleled, since we are very large in MMR region. Can we run campaigns according to the trust, not for the stock market, but for the buyers, or it has to go with the buyer, first? And then we will have that backing off all the institutions that in the next half decade since you mentioned that trust level is so high that whatever project or even we are thinking out-of-the box, we have backing off all the institutions, along with us. So maybe the campaigns on along those lines, it is not a question, just a suggestion.
Parth Chhajer — Promoter & Whole Time Director
Well, we are to your suggestion and we will try to implement it at the best levels possible. We thank you for suggestion is well and our idea is also to be a leader in the market, wherever we are operating and to have a very, very respected brand image across the industry, across the vendor section, across the peer developers and obviously, across all the consumers, the potential consumers and the existing consumers. So our vision is to be a company, which and provide all the solutions from a — for a homebuyer, right today’s portfolio also ranges around it INR19 lakhs, INR20 lakhs, going up to around INR3 crores. And now we’ve also ventured out to the plotted development. So if the company has the plateau, it’s — with the market, if the consumer is looking for it. I think then the growth is not stoppable.
Unidentified Participant — — Analyst
Perfect. I would like to thank Mr. Ashok and Parth as well. Thank you so much.
Ashok Chhajer — Chairman & Managing Director
Thank you.
Parth Chhajer — Promoter & Whole Time Director
Yeah, thank you.
Operator
[Operator Instructions] As that was the last question for today, I would now like to hand the conference over to Mr. Ashok Chhajer, Chairman and Managing Director for closing comments. Over to you, sir.
Ashok Chhajer — Chairman & Managing Director
Thank you, everybody. Thank you all investors and others, everybody to participate in the conference call, it was a great insight and stay tuned with us. As retail always that real estate is not on quarter-to-quarter basis, it has to be seen on bandwidth of at least in year basis given the average of — for last two years. We will be doing better than what we have done today. Thank you, everybody.
Kapil Yadav — Dolat Capital — Analyst
Thank you, sir. Thank you all the participants.
Operator
[Operator Closing Remarks]