Arkade Developers Ltd (NSE: ARKADE) Q2 2025 Earnings Call dated Nov. 13, 2024
Corporate Participants:
Amit Mangilal Jain — Chairman & Managing Director
Samshet Shetye — Chief Financial Officer
Analysts:
Kush Bafna — Analyst
Mangesh Bhadan — Analyst
Devang Shah — Individual Investor
Pramod Kumar — Analyst
Aniket Rekar — Individual Investor
Akash Sharma — Individual Investor
Manoj — Analyst
Sopan Parikh — Individual Investor
Aditya Shah — Analyst
Presentation:
Operator
Ladies and gentlemen, good day, and welcome to Arkade Developers Limited Q2 and H1 FY25 Earnings Conference Call. This conference call may contain forward-looking statements about the company which are based on beliefs, opinions and expectation of the company as on the date of this call. These statements are not the guarantees of future performance and involve risks and uncertainties that are difficult to predict. [Operator Instructions]
I now hand the conference over to Mr. Amit Jain, Chairman and Managing Director of Arkade Developers Limited. Thank you. And over to you, sir.
Amit Mangilal Jain — Chairman & Managing Director
Good evening, everyone. I would like to extend a warm welcome to you all to Arkade Developers Limited maiden earning conference call for the second quarter and half year ended 30th September 2024. I would like to express gratitude to all of you for taking out time and joining us today. We have on call with us Mr. Samshet Shetye, CFO; and Adfactors PR, our Investor Relations team. We believe you have got the chance to go through our results, press release and investor presentation which are available on our website and uploaded on exchanges. Since this is our maiden earnings [Technical Issues]
Operator
Ladies and gentlemen, we have lost the connection for the management. Please stay connected while we reconnect them to the conference. Ladies and gentlemen, thank you for patiently holding. We have the line for the management reconnected. Over to you sir.
Amit Mangilal Jain — Chairman & Managing Director
Since this is our maiden earnings conference call, I would like to take you through the journey of our company, as well as recent updates before we get into the operational and financial performance for the second quarter of the financial year.
So, Arkade Developers established in 80s is a real estate development company with a focus on high-end residential property. Over the years, we have successfully built a reputation for developing top-tier residential projects, driven by our deep understanding of the market and a commitment to quality. We are proud to be a dominant player amongst the top-10 developers in MMR, one of India’s most lucrative and high-growth real estate market. With continued demand for luxury homes in the MMR, we are well positioned to capitalize on the market’s growth.
Over the past few years, we have consistently outperformed the market. Our strategic approach, combining new developments on our own land and successful redevelopment projects across Mumbai has allowed us to capture significant market share in high-demand areas of Western suburbs like Borivali, Kandivali, Vile Parle, Goregaon, Santa Cruz, where we have built a strong foothold in both supply and absorption. Backed by a reputation for delivering projects on time in prime locations and with exceptional quality, we continue to lead the charge in creating aspirational living spaces.
We have a rigorous process before acquiring any projects. We are proud to announce the timely delivery of our projects, well ahead of the RERA deadline. This accomplishment underscores our commitment to a customer-specific approach and [Technical Issues] ensure sustainable and robust growth in our top line as well as in our bottom line. Our focus on sustainability, innovative design and [Technical Issues]
Operator
Sir, we are losing your audio in-between.
Amit Mangilal Jain — Chairman & Managing Director
[Technical Issues] urban living in Mumbai. With this strong foundation [Technical Issues].
Operator
Sorry to interrupt sir, your voice is breaking in between. Ladies and gentlemen, we again lost the connection for the management. Please stay connected. Ladies and gentlemen, thank you for patiently holding. We have the line for the management reconnected. Over to you sir.
Amit Mangilal Jain — Chairman & Managing Director
So with this strong foundation, we are poised for continued success, delivering long-term value for investors and setting new benchmark in the industry. In 2024, we took a significant step in our journey by becoming a public listed company. Our initial public offering, which raised INR410 crore through a fresh issue of 3.23 crore equity shares was met with strong investor interest, leading to the oversubscription of 113 times. This marks a major milestone for us as we continue to expand our business and deliver sustainable value for our stakeholders.
We can have few lines on the industry outlook. According to Knight Frank report on Indian real estate for July to September 2024 quarter, the highest sales volume was recorded in Mumbai at 24,000 units which is a new high for the market. Since early ’23, stable interest rates and a resilient economic outlook have fostered strong home buyer confidence and sustained demand through 2024. This trend aligns with a 13-quarter upward trajectory, reflected most notably in the increased share of sales within the premium segment.
In quarter two financial year ’25, properties priced at 1 crore and above represent 46% of sales, a substantial rise from 35% in the same period last year. The desire for larger, more comfortable living spaces and an elevated lifestyle, a preference that gained momentum during the pandemic, continues to drive this demand shift. Conversely, sales volume for properties within INR50 lakh to INR1 crore range, and those priced below INR50 lakh declined by 14% and 13% year-on-year respectively, as home buyers increasingly prioritize premium properties. Meanwhile, pricing across all market segments have shown significant year-on-year growth. In sequential terms, price levels have largely held steady across most regions, underscoring the reduced demand and the shift in buyer preference towards high-value residential assets.
Coming to our recent development about our company, I am thrilled to announce the successful launch of Arkade Views & Vistas, a testament to our commitment to delivering luxury living that meets the highest standards of excellence. This project further solidified our position as a leader in high-end residential segment and underscores our dedication to enhancing the living experience of our valued clients. In the last quarter alone, we proudly completed and handed over 380 homes across our Arkade Aspire and Arkade Crown projects, a clear reflection of our promise to deliver superior quality homes on time.
Building on this momentum, we recently launched Arkade Rare at Bhandup West, a project poised to redefine urban living in the area. Designed to attract strong interest in the market, Arkade Rare will feature a thoughtfully planned mix of 432 residential units and 43 commercial units with options of both 2 BHK and 3 BHK apartments. This development covers a substantial 7.25 lakh square feet of construction area and will be delivered in a single phase with an estimated sales value of INR750 crore-plus. We are confident that this ambitious project will contribute meaningfully to the community and elevate the standard of modern living in the region.
As a part of our strategic growth plan, we continue to actively seek out and acquire prime land in key locations throughout the Mumbai metropolitan region. This focus allows [Phonetic] us to expand our project portfolio while pursuing promising redevelopment opportunities that enhance both our brand and communities we serve.
Sustainability remains the core principle of our approach. We are unwavering in our mission to combine luxury with environmental responsibility. Through eco-friendly and efficient construction practices, we ensure that each development is sustainable as it is occurrent. Our long-term vision is to lead in sustainable, high-quality housing across Mumbai and its neighboring regions, including Thane and Navi Mumbai. We remain committed to building a future whereby luxury meets responsibility, providing homes that inspire while setting new standards in the real estate industry.
I now hand over [Technical Issues] financial performance with you. Thank you for your patience.
Samshet Shetye — Chief Financial Officer
Thank you, Amit sir. Now, I’ll just brief you about the financial number for records. On consolidated basis, the revenue for H1 FY25 was INR378 crores against INR273 crores in H1 FY24, registering a growth of 20%. EBITDA for H1 FY25 was INR102 crores as against INR74 crores, registering a growth of 36.9% on a YoY basis. Profit after tax stood at INR73 crores compared to INR54 crores, which is up by 35.2% YoY. Net worth of the company increased to INR826 crores from INR323 crores as at March 31, 2024. Our net debt as at 30th September 2024 is nil against INR46 crores of debt as of March 31, 2024.
Coming to Q2 numbers — Q2 FY25 numbers, consolidated revenue for Q2 FY25 was INR203 crores which is slightly down by 3% compared to INR211 crores in Q2 FY24. EBITDA for Q2 FY25 stands at INR60 crores as against INR64 crores in Q2 FY24. EBITDA margin for Q2 FY25 stood at 29.7% versus 30.7% in Q2 FY24. The profit after tax is at INR43 crores as against INR47 crores in the corresponding period for last year. The PAT margin for Q2 FY25 was 21.3% against 22.7% in Q2 FY24. In the quarter, the company achieved sales booking of 67,000 square feet of area. The pre-sale for Q2 FY25 was INR215 crore which is up by 12%. And collections grew by 43% to INR179 crores.
We can now open the forum for questions and answers.
Questions and Answers:
Operator
Thank you very much, sir. [Operator Instructions] First question is from the line of Kush Bafna from Bafna Brothers Finance & Property Agent. Please go ahead.
Kush Bafna
Yes, sir. Congratulations on a steady set of numbers. I’m calling from Chennai. I wanted — I had a couple of clarifications on the balance sheet. One was if you could provide some details on the investments under current assets of around INR13 crores or so. And also, the trade receivables which have actually gone up in the last six months from INR8 crores to INR20 crores. Thank you.
Samshet Shetye
So Samshet here. So investments are in — are with the associate companies of INR8 crores [Phonetic]. And second question about the trade receivable, which has increased to INR20 crores in H1 FY25, these are basically the demand raised by us within the last 10, 15 days of September. And they have realized this money in the first 15 days of October.
Kush Bafna
Okay. Okay. Great. And sir, the latest project which has been launched by — and you said that the construction is going in full swing as per your performance. So any details on that as to how many bookings would have come on the launch date?
Samshet Shetye
For this Rare project, Bhandup project, we have accumulated about 50 bookings.
Kush Bafna
Sorry, sir, I didn’t get you. Sorry.
Amit Mangilal Jain
Yeah, we have accumulated 50-plus pre-sales. And the consideration for that would be around INR80 crore on the day of booking.
Kush Bafna
Okay. Alright. Thanks. Thank you. Thanks a lot. That was my question.
Operator
Thank you. Next question is from the line of Mangesh Bhadan from Centum Broking. Please go ahead.
Mangesh Bhadan
Good afternoon, sir. Am I audible?
Operator
Yes. Please go ahead.
Mangesh Bhadan
Hi. Sir, the question from my side is regarding the new project launches, the two projects that we have launched, one in September, second one in October. So when do we expect these projects to reach the threshold of, say, 15% construction or 25% construction so that it starts — we start booking revenues for the same?
Samshet Shetye
So we recognize the revenue based on a threshold of 25% completion of the construction cost. So the project which we have launched recently will be eligible next year.
Amit Mangilal Jain
Arkade Vistas and Arkade Rare and Arkade Views, these three projects should be up for offering next year onward 25%.
Mangesh Bhadan
Okay. And sir, second question is related to the cash on books. So, basically, just wanting to understand what are the plans, and have you identified any land for development in — or probably the [Speech Overlap]
Samshet Shetye
We have identified a couple of land parcels and we are in process of acquisition of them. Yeah, one is in Thane, and the other one is in Mumbai. And they are in the process of acquisition. And you’ll hear from us soon.
Mangesh Bhadan
Understood. I’ll just come back in queue if I have more questions. Thank you.
Operator
Thank you. Next question is from the line of Devang Shah [Phonetic], an Individual Investor. Please go ahead.
Devang Shah
Hello.
Operator
Yes, please proceed.
Devang Shah
Yes. Good evening, sir.
Amit Mangilal Jain
Good evening.
Devang Shah
[Foreign Speech]
Amit Mangilal Jain
[Foreign Speech] On the first week of booking we got close to 60 bookings, which is [Speech Overlap]
Devang Shah
How much, sir?
Amit Mangilal Jain
Close to 60 on the first weekend itself. And the bookings are still ongoing very well.
Devang Shah
Very nice. [Foreign Speech]
Amit Mangilal Jain
Total [Foreign Speech] approximately 200 units.
Devang Shah
[Foreign Speech]
Amit Mangilal Jain
[Foreign Speech]
Devang Shah
Very nice. Thank you.
Amit Mangilal Jain
Thank you.
Operator
Thank you. Next question is from the line of Pramod Kumar from Tridev Office [Phonetic]. Please proceed. Pramod Kumar, your line is unmuted. Please go ahead with your question.
Pramod Kumar
Yeah, thanks for the opportunity. Sir, just wanted to understand what is the ballpark IRR numbers that a company considers while undertaking [Technical Issues].
Amit Mangilal Jain
So our EBITDA — our PAT is in the range of 20% to 23%, if you’ve noticed, over past few years consistently.
Pramod Kumar
Right. No. So what I’m trying to get at is, say, for example, if it is a project that is especially being developed where you’re having a construction — a new construction. So basis on the capital deployed, what kind of ROEs that we expect from that particular project?
Amit Mangilal Jain
Samshet, can you throw some light?
Samshet Shetye
So we maintain an EBITDA margin of about 28% to 30%. I mean that’s the range. We don’t have any debt as such — large term debt — or the longer-term debt.
Pramod Kumar
Right. Sir, if you can give a breakup of this EBITDA margin between your Rare project and [Speech Overlap]
Amit Mangilal Jain
Yeah, because the books are consolidated. We do not have separate — like they’re consolidated in the parent company.
Pramod Kumar
Right, sir, but on consolidation you would be understanding what is — where is the margin higher [Speech Overlap]
Amit Mangilal Jain
The margins are higher in our own land projects vis-a-vis redevelopment projects. So if we are having a margin of, say, 20% to 23% PAT, you can assume a margin of 15% in redevelopment vis-a-vis 30% PAT in outright projects.
Pramod Kumar
Right. Fair enough, sir. I’ll come back in the queue.
Operator
Thank you. Next question is from the line of Aniket Rekar [Phonetic], an Individual Investor. Please go ahead.
Aniket Rekar
Good evening, sir, and thank you for the opportunity. Hello? Am I audible?
Amit Mangilal Jain
Yeah, yeah. Good evening.
Aniket Rekar
Yeah. So sir, I have a few questions. So sir, can you provide an overview of the key growth drivers for the Arkade Developers in the coming quarters?
Amit Mangilal Jain
So coming quarter, we should have strong sales from this recently launched project of Arkade Rare which is in Bandup. We are nearing completion of two more projects. One is Arkade Aura in Santa Cruz and other is Arkade Prime in Marol. So we expect the residual inventory which should be readily available in the project with OC, that to be sold. We also have unsold inventory in two of our projects which are with OC, that is Arkade Aspire and Arkade Crown in which we expect the residual inventory to be sold.
Aniket Rekar
Okay, Okay. And sir [Speech Overlap]
Amit Mangilal Jain
So ready inventory in two projects, ready inventory in two nearing completion projects. And plus, the velocity of recently launched Arkade Rare. So that should give us a healthy second half of this financial year.
Aniket Rekar
And, sir, how is the demand scenario in these upcoming projects which we have launched?
Amit Mangilal Jain
Demand is very good, as we’ve always said. Demand is very healthy. Like for all these projects with built-in amenities, layouts that you see, the demand is very healthy in the mid-segment, you know, value premium projects.
Aniket Rekar
Okay. So sir, in terms of the pricing perspective, how are we — differentiate us with the competitor in the real estate industry?
Amit Mangilal Jain
We are almost always in the top two, three projects available in terms of pricing in the micro market. In Goregaon, barring Oberoi [Phonetic], our rates are second-highest. In Borivali and Santa Cruz, we are first highest. In Eastern suburbs also, we may be, say, in the top three people as per the
Pricing, if not first and second.
Aniket Rekar
So I have heard the name, that Sunteck Realty. So they are developing more projects in the Naigaon side. So do we have any upcoming projects over there or no?
Amit Mangilal Jain
No, not nearly — not in the near future. You may hear from us in the coming year something to do within Thane.
Aniket Rekar
Okay, [Speech Overlap]
Amit Mangilal Jain
But more so, we are focused in Mumbai proper and we are able to identify projects in Mumbai.
Aniket Rekar
Okay. And sir, can you outline the margin difference between these redevelopment projects and [Speech Overlap]
Amit Mangilal Jain
So as I said in the last question, like redevelopment projects are low on capital investment. And because of the same, the competition is more and the margins are less there. They are in and around in the range of 12% to 15% of the top line. And outright projects like your own land projects can target a margin of 25%, 30% of the top line basis.
Aniket Rekar
Okay. Sir, how much land we have currently in our portfolio?
Amit Mangilal Jain
So we are having Bandup land which is three acre. We are having Mulund land parcel which is two acre. And we are in the process of acquiring a couple of land parcels, which are in process of acquisition. You’ll hear from us soon. And barring this, we have redevelopment projects in Western suburbs as well. Okay, thank you, sir. Thank you so much. This is from my side.
Operator
Thank you. [Operator Instructions] Next question is from the line of Akash Sharma [Phonetic], an Individual Investor. Please go ahead.
Akash Sharma
Yeah. Hi, sir. Sir, I have a few questions. First one is regarding our competitive landscape. So we are in a very competitive market. Right. And so, sir, how do you differentiate — so how do we differentiate ourselves from local competitors, especially in Mumbai [Speech Overlap]
Amit Mangilal Jain
Our delivery track record in itself is very impressive and which is known to people in micro markets, the delivery track record. And committing less and delivering more in terms of amenities, and the track record of timely completion, it has a big equity of trust and faith in the audience in the markets, amongst clients. That’s the reason to get impressive pre-sales, if you’ve noticed, always.
Akash Sharma
Okay, sir. And as Mumbai [Technical Issues] so how do we see the demand evolving for residential property?
Amit Mangilal Jain
It’s an always ever-evolving market. The demand, as we said, as I’ve mentioned in my report, what Knight Frank says, they’ve been seeing continues uptick only in the demand. The registrations are growing, the ticket size of units is growing. People are preferring premium apartments. Luxury apartment is in demand more than the affordable product. And the demand is always up and kicking.
Akash Sharma
Okay sir. And, sir, my last question is generally on a larger landscape for the company. So what are some of the most significant milestones that we have achieved in the past few years?
Amit Mangilal Jain
So we’ve achieved occupation of two projects this year. We are expecting two more occupations. We have unsold inventory in those projects. All the projects are debt-free. And we’ve recently launched the Bandup project. We’ve launched the project in Goregaon, Arkade Vistas. We are expecting a couple of more launches in the coming quarter. Each quarter you may see one or so new launch. We have a good pipeline available and we are in process of acquiring land parcel by the equity that we have. So, all in all I see a healthy future.
Akash Sharma
Okay sir. That’s it from my side. Thank you, sir.
Amit Mangilal Jain
Thanks.
Operator
Thank you. Next question is from the line of Manoj from Rajani Office [Phonetic]. Please go ahead.
Manoj
Hello. Am I audible?
Amit Mangilal Jain
Yes. Yeah, you are.
Manoj
Hi, sir. Congratulations on a good set of numbers. Also, sir, just wanted to know — hi. So actually how is the coordination handled, like, for example, if we discuss a land, so what is the approval process, final one?
Amit Mangilal Jain
The approval — like, it takes normally — we allocate a year for the projects that are involving environmental clearance for approvals in itself from IOD to CC to environmental clearances and various other NOCs from the fire office, from the Tree Department. We have our own liaison department. And we have a set of professionals to get all the approvals. And we are equipped, like, we are used to getting approvals on a day-to-day basis. We are subject matter experts. So it’s a no-brainer. So from acquisition to launch, normally a year is more than enough. If the projects are smaller ones, say, standalone building, it can be in six months also.
Manoj
Understood. So we can assume on an average it’s one year, right?
Amit Mangilal Jain
Yeah. If the projects are bigger, which are preferred area. Yeah.
Manoj
Alright, sir. And secondly — so sir, just wanted to know, like, that the competition is very high in this particular sector and it has been like increasing [Speech Overlap]
Amit Mangilal Jain
The competition is high because the demand is high. Yeah, you can complete. Yeah.
Manoj
Yes, sir. So just wanted to ask like how have we managed to grow it at such a rapid scale in last two years?
Amit Mangilal Jain
So we’ve grown organically. It’s not last two years. It’s been like — I am completing three decades into business. So whatever projects we’ve delivered on time, before time, delivering more than what we promised, that is coming back to us. So it’s like a bamboo shoot growth story. It’s not two years. It’s been now three to four decades that we have been doing the same thing. And people around us have seen us doing that. So the trust and the faith is helping.
Manoj
Great, sir. And sir, just one last thing. So any comment on your Bandup project, like what is the [Speech Overlap]
Amit Mangilal Jain
It’s one of its type. It’s one of its type project. I would request you to visit the project to see it for yourself.
Manoj
Okay, sir. So it will be a premium [Speech Overlap].
Amit Mangilal Jain
Yeah, yeah, it’s a premium project. Yeah.
Manoj
Alright, sir. As of now it’s all that I wanted [Speech Overlap]. Thank you so much, sir [Speech Overlap].
Operator
Thank you. Next question is from the line of Sopan Parikh [Phonetic], an Individual Investor. Please proceed.
Sopan Parikh
Hello. Am I audible?
Amit Mangilal Jain
Yeah, you are.
Sopan Parikh
Yeah. Hi sir. Good evening.
Amit Mangilal Jain
Good evening, Sopan.
Sopan Parikh
I have a couple of questions. What is our sales and marketing strategy in terms of using channel partners?
Amit Mangilal Jain
So we have a standard brokerage scheme, which is linked with the number of flats that you sell in a quarter. The number of — like, what revenue you make in a year. Like, we have a tieup with few channel partners, wherein we enter a yearly contract basis revenue. So if you, say, achieve bigger slabs, so if you sell for INR100 crore in a financial year across all our projects, you get incentivized brokerage. And the normal standard practice for a single flat seller is 2%. But if you end up selling more flats within a stipulated time, there are, on a regular basis, incentive schemes that we come up with for our CPs. And we provide them with support — sales staff support, telecalling support, collateral support. So we equip them with training of the product to their team.
Sopan Parikh
Okay. Sir, have we hired any, like, marketing team or something like that or [Speech Overlap].
Amit Mangilal Jain
No, we have our own in-house sales and marketing team, which is very competent. Yeah.
Sopan Parikh
Okay. And also, sir, I wanted to ask, is there any other project other than Bandup as of now?
Amit Mangilal Jain
You’ll soon hear from us. We are coming up with a project in Santa Cruz. We are coming up — a project with — in Bangur Nagar. So we have lineup of projects every quarter. We have a project coming up in Malad [Technical Issues] And the ongoing projects we have — we have projects in Goregaon East, Jay Prakash Nagar that’s ongoing. We have a project in Mulund that is ongoing, Sarvodaya Nagar. We have project in Malad, Sunder Nagar. In Vile Parle East, we have an ongoing project.
Sopan Parikh
So, these are like long-term projects for how many years?
Amit Mangilal Jain
So we have a good pipeline available for three year at least. And more is in acquisition.
Sopan Parikh
Okay. And so since we are only in Mumbai, so do we have any plan to expand into new geographies [Speech Overlap]
Amit Mangilal Jain
As of now, we are studying Thane market. Yeah. And as much as projects we can get in Mumbai, we would prefer that because it’s the most mature market.
Sopan Parikh
Okay, sir. Also I wanted to ask, sir, what is the cost of construction as a percentage of sales?
Amit Mangilal Jain
So that would vary like — the sales price would vary and the percentage will change. So if you have a project in a premium market, the cost of construction will be lesser percentage against if you have a project in Thane, Thane where the rates are 20,000, the cost may be 4,000, which is 20%. And say in Santa Cruz market where you have a rate of 50,000 and cost of construction may be 5,000, it is 10%. But broadly it ranges between 3,500 to 4,500 per square feet, based on the details of the product.
Sopan Parikh
Okay. And do we have any kind of peers like — that you think that is your competition?
Amit Mangilal Jain
No, no. We believe in consistently doing what we are good at. So that helps us. Yeah.
Sopan Parikh
Okay. Thank you.
Amit Mangilal Jain
Thank you.
Operator
Thank you. Next question is from the line of Aditya Shah from Metal Wealth [Phonetic]. Please go ahead.
Aditya Shah
Just a couple of questions. Am I audible, sir?
Amit Mangilal Jain
Yeah, you are.
Aditya Shah
Yeah. I just wanted to know what are the PAT margins on redevelopment projects and on new projects.
Amit Mangilal Jain
Yeah, I just replied to this twice. So the — though we do not have separate account on project-wise basis but normally PAT for a redevelopment project is in the range of, say, 10% to 15% currently. We’ve had — we’ve seen better margins in the past. And the PAT for outright projects can be double of that, say, 25% PAT on outright projects.
Aditya Shah
Sir, can you come again on the percentage?
Amit Mangilal Jain
25%-plus on the outright projects. Yeah.
Aditya Shah
Okay. And going forward, what do you target more, more into the new project segment or in the redevelopment segment?
Amit Mangilal Jain
So we are having a separate BD team for both the segments, for redevelopment as well as land projects. Our wishful — our wish is that we have more of land projects. But then redevelopment has — present this potential. Western suburbs, you have so many buildings up and waiting for redevelopment. So you cannot ignore that as well. It will help to have your presence in both, because land availability is scarce. So in case you do not manage to find land on a regular basis, the availability for redevelopment projects is more.
Aditya Shah
Okay. And sir, what is the strategy on increasing your geographical spread?
Amit Mangilal Jain
As mentioned, we are entering Thane market. So that is [Speech Overlap]
Aditya Shah
No, sir. By that I mean, how do you plan to expand [Phonetic] out of Mumbai or Maharashtra? How do you plan — any strategy in place for pan India, something like that?
Amit Mangilal Jain
No, no. Not pan-India currently. Currently, we are focusing only on MMR. That’s a mature market and healthy market. And we see immense potential within the MMR region.
Aditya Shah
Alright. And one last question, sir. What is your annual spend on marketing budget?
Amit Mangilal Jain
Our spend on marketing budget is 2% of our top line, plus brokerage which is separate. So marketing is 2%, and 2% maybe the brokerage.
Aditya Shah
Okay. And that remains consistent with your top line or [Speech Overlap]
Amit Mangilal Jain
Yeah. We try to allocate that much fund to the marketing.
Aditya Shah
Okay, sir. Thank you so much, sir. If I have any more questions, I’ll join the queue.
Amit Mangilal Jain
Welcome. Yeah.
Operator
Thank you. Next question is from the line of Pramod Kumar from Tridev Office. Please go ahead.
Pramod Kumar
Hi sir. Thanks for the opportunity again. Sir, just one small bookkeeping question. I see, sir, as on H1 ’25, your total equity or your net worth is about 827 crores. But if I just do the numbers looking at FY24 equity and all it comes to roughly around some 430-odd crores. And also, what is this difference of 200 crores? Is it the revaluation result?
Amit Mangilal Jain
Samshet, do you get the question?
Samshet Shetye
Yeah. Yeah. Hi. Samshet here. So there is no revaluation done. But the issue we have — came out with, public issue, that has given us 430 crores. 410 crore is the public issue and 20 crores of pre-IPO. So that has been added to the net worth. [Speech Overlap] Sorry. As of March ’24, it was 323 crore. And now it is 827 crores.
Pramod Kumar
Correct. So what is the cash on the books as on date?
Samshet Shetye
That is the — we have got the funds on 24th September. So which is for the object which I mentioned in the — obviously, the public document. So these funds are lying from the IPO process which are in the fixed deposit.
Pramod Kumar
In the fixed — what would be the quantum? About 400 crores you said [Phonetic].
Samshet Shetye
Out of 400 crores, about 380 crores are in fixed deposit as of 30th September.
Pramod Kumar
Okay. So we don’t have — our other income resolution is 2 crores. So we’ll get the full benefit of that [Speech Overlap].
Samshet Shetye
No, we got these funds on the 24th September. So we recognized only smaller part as income during 46 days.
Pramod Kumar
Okay. Correct. Thank you, sir.
Operator
Thank you. Ladies and gentlemen, we will take this as the last question for the day. I would now like to hand the conference over to the management for the closing comments.
Samshet Shetye
Hello. Samshet here. I thank the entire team of Arkade Developers for their untiring efforts and hard work and dedication which drives the company forward through various market conditions. Also, I appreciate all of you for participating in our conference call. Please do get in touch with our Investor Relations team for any further questions. Thank you.
Amit Mangilal Jain
Thank you.
Operator
Thank you so much, sir.
Amit Mangilal Jain
Thank you everyone. Yes. Bye-bye. [Operator Closing Remarks]