Arvind SmartSpaces Limited (NSE: ARVSMART) Q1 2026 Earnings Call dated Jul. 29, 2025
Corporate Participants:
Unidentified Speaker
Kulin Lalbhai — Executive Director and Non-Executive Director
Kamal Singal — Managing Director and Chief Executive Officer
Priyansh Kapoor — Director and Chief Executive Officer
Analysts:
Unidentified Participant
Amit Sharma — Analyst
Amit Sharma — Analyst
Eesha Shah — Analyst
Shreyansh N. Mehta — Analyst
Ritwik — Analyst
Dhananjay Mishra — Analyst
Amit Srivastava — Analyst
Harsh Pathak — Analyst
Ronald Siyoni — Analyst
Naysar Parikh — Analyst
Amit Agicha — Analyst
Presentation:
operator
The conference is now being recorded. It. It. It. Sami Sa. Sam. Ladies and gentlemen, you’ve been connected to Urban Smartwave Limited Q1 and FY26 post results earnings Conference call. Please stay connected. The call will begin shortly. Ladies and gentlemen, you’ve been connected to ARVIND Smart Switch Limited Q1 and FY26 Host Results Earnings Conference call. The call will begin shortly. Ladies and gentlemen, good day and welcome to The Arvind Smartphones Limited Q1 and FY26 post results earnings conference call. As a reminder, all participant lines will be in the listen only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing then zero on your touchstone phone.
Please note that this conference is being recorded. I now hand the conference over to Mr. Amit Sharma from AD Factors PR. Thank you. And over to you, Mr. Sharma.
Amit Sharma — Analyst
Thank you. Good afternoon everyone and thank you for joining us on the Q1FY26 results conference call of Advanced SmartSpaces Limited. We have with us today on the call Mr. Colleen Lalbhai, Vice Chairman, Mr. Kamal Singhal, Managing Director, Mr. Priyansh Kapoor, CEO Mr. Vikram Rajput, Head Business Development, MMR and Investor Relations. Please note that a copy of the disclosures is available on the investors section of the website of Urban Smartspaces Limited as well as on the stock exchanges. Please do note that anything said on this call that reflects the outlook towards the future which should be construed as a forward looking statement, must be reviewed in conjunction with the risk that the company possesses.
I would now like to hand over the call to Mr. Kulin Lalbhai for his opening remarks. Thank you. And over to you sir.
Kulin Lalbhai — Executive Director and Non-Executive Director
Thank you. Good afternoon and a very warm welcome to everyone present on this call. Thank you for joining us today to discuss the operating and financial performance of Azim SmartSpaces for the quarter ended June 30, 2025. I am happy to be a part of this earnings call and look forward to interacting with all of you in times to come as well. I would like to begin by discussing the recent initiatives we have undertaken to strengthen the leadership team. After my opening comments, Kamalji will as usual take you through how the real estate environment is shaping up and also the broad highlights of this quarter.
This will be followed by a brief statement by Priyansh as well. We at Arvind smartspaces are very excited about the growth opportunity in front of us. Under Mr. Kamal Singhal’s leadership, we have built a wonderful platform with strong profitability and cash flow and has strongly established our brand in the geographies we are present in this start point, along with the opportunity of a rapidly consolidating real estate market presents a fantastic opportunity for us to significantly scale up our business. In this context, the recent leadership augmentation at Arvind Smart Spaces is a strategic move aimed at driving the company’s next phase of growth and geographical expansion and also a part of its long term succession planning.
Priyansh Kapoor has been appointed as CEO and whole time Director, bringing with him a proven track record in scaling businesses particularly in the high growth market like MMR. Mr. Kamal Singhal will continue as Managing Director and Board member ensuring continuity, strategic oversight, prudent capital allocation and overall mentorship of the team. We believe that this business is going to create significant value and hence the coming together of a very strong leadership team is a critical step in ASL’s journey towards becoming a leading real estate player in India. I’m delighted to welcome Priyansh and I’m confident that with his vast experience and deep understanding of the real estate business he will be able to build on this foundation that has been set and will further scale the company to the next orbit in the coming years.
With this, let me now take a. Moment to talk to you about other. Organizational changes we have implemented to future proof the company. At Arvind Smart Spaces we believe that building a scalable and agile organization is critical to sustaining long term growth. One of the key success factors in our sector is the ability to respond swiftly when growth opportunities arise. With this in mind, we have been proactively restructuring our organization to be decentralized yet accountable as a model. We have created chief Business officers to drive city level performance. These leaders are responsible for growth, profitability and delivery within their geographies. Their accountability is clearly defined in terms of contributing to the company’s bottom line.
This approach not only enables sharper execution but also gives us the agility to scale into new markets while maintaining strong operational discipline. Our long term blueprint is built on disciplined capital allocation, an asset light development model and a thoughtful design led product offering. As we look ahead, our strategic priorities will be to expand our footprint across high potential micro markets, deliver differentiated products that resonate with the evolving customer aspirations and build a future ready talent driven organization that consistently creates value for all stakeholders.
With that, I will now hand it over to Kamal Bhai to take you through the operational and financial performance of the quarter.
Kamal Singal — Managing Director and Chief Executive Officer
Thank you Gullil Bhai for the clear and thoughtful overview of where we stand today and the direction that we are heading towards building a scale, scalable and high performing enterprise. India has shown a remarkable economic resilience through the first half of 2025 despite ongoing global uncertainties. Whether it’s geopolitical tensions, evolving trade dynamics or supply chain realignments, the macro indicators remain strong and with Reserve bank of India projecting GDP growth of around 6.5% for both financial year 25 and 26, India continues to stand out as one of the fastest growing large economies in the world. From a real estate standpoint, we are seeing the residential sector entering into a healthy recalibration phase.
The fundamentals remain solid and the sector seems poised for renewed growth. The recent reduction in RBI’s repo rate has helped improve affordability, especially in mid and affordable housing segments. This is boosting end user demand and also easing financial costs for developers, enabling them to execute faster and better capital cash flows. On the regulatory front, we have seen some changes through financial year 2025 but the environment is now showing signs of stabilizing. We expect this to support a steady revival in project approvals and new launches which in turn should act as a strong catalyst for growth in pre sales and market activity.
We believe the residential sector is well positioned for a strong and sustained growth trajectory through the remainder of 25 and beyond. Moving to our operational performance for the quarter one bookings were at 175 crores and collections were at 191 crores. While the performance has been subdued, we are confident of strong bookings growth with a slew of launches lined up in the remainder of the year. These include Banagatta Orchard Phase 2, ITPL Road, Pankapoli, Surat Industrial park and Mankol and a couple of other new projects which will be having a short trust signing to launch cycles.
So the plan is to ensure at least 5 launches for the cumulative top line of around 3000 to 4000 crores for this year. On the business development front we are actively evaluating several opportunities and we are confident of maintaining a healthy addition to the pipeline in line with the performance seen over the past couple of years. We are on track to conclude the ongoing business plan of adding new projects with a cumulative top line of around 5000 crores to add the projects across the markets of Ahmedabad, MMR and Bangalore. Now moving on to operational update from operation Update to the financial highlights in Q1 we reported a revenue of 102 crores up 37%, EBITDA at 24.5 crores up 205% and PAT of 12 crores up 159% year on year basis our P and L continues to show healthy growth driven by strong execution and revenue recognition from our ongoing and completed projects which for this tend to sustain.
Supported by a disciplined approach and steady delivery momentum, our balance sheet remains strong, a noteworthy achievement as we continue to scale our operations. This reflects our consistent focus on maintaining financial discipline, ensure liquidity and viability alongside growth. As of 30th June 2025 our net debt stands at a negative 50 crores. During the quarter operating cash flows amounted to rupees 27 crores. We estimate an unrealized operating cash flows exceeding rupees 4000 crores coming from the current pipeline of projects and this is expected to be realized in in next three to four years. We remain positive about demand scenario.
We are witnessing this in the sector. Lower interest rates, supporting government policies and rising disposable income continue to support home buyers demand. Over the medium to long term we believe the sector will witness further consolidation in favor of organized players driven by stronger execution, rising capital intensity and improving cash flows. This is an opportunity we are well positioned prepared to capture backed by our healthy balance sheet, growing brand equity and disciplined approach to our business development. Our strong launch pipeline for the year ahead makes us confident in our ability to deliver strong sales performance this year.
I’m delighted to welcome Priyans to asl. I look forward to work closely with him as we move forward in pursuit of our corporate initiatives. All operational decisions will now be driven by him from a strategic growth and diversification perspective. There are no changes in our plans. Our ambition to be a leading real estate company in the country remains very much in focus. Starting the real estate business at Irwin Limited and serving as MD and CEO at ASL over the past 15 years has been amongst most fulfilling chapters of my 25 year journey at Urban. As I envision my own role, I would like to focus more on strategic direction, business development initiatives and other strategic initiatives of the company, making sure that the long term perspective we are able to deliver our company’s vision.
With that, I’ll now like to hand over the call to Priyash.
Priyansh Kapoor — Director and Chief Executive Officer
Thank you Kulin and Kamalji for a warm welcome and good afternoon to everyone. It is a pleasure to be part of Urban Smart Spaces, a company with strong reputation in the real estate sector. I would like to thank Kuldin Albhai, Sanjay Lalbhai Kamalji and the entire ASL board for trusting me with this leadership role. ASL is now well positioned to harness the full potential of its execution capabilities, a robust portfolio across key geographies and the enduring strength of the group’s brand and legacy. I look forward to partnering with the exceptional team at ASL to gain new heights and shape a gold future ready and talent centric automation.
Thank you. And now we can open the floor for questions.
Questions and Answers:
operator
Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on their touchstone telephone. If you wish to remove yourself from the question queue, you may press Star and two participants are requested to use handsets while asking a question. Ladies and gentlemen, we’ll wait for a moment while the question queue assembles. The first question is from the line of Isha from Access securities. Please proceed.
Eesha Shah
Hi, good afternoon everyone and thank you for the opportunity. I actually have a couple of questions from my side. First one being any changes in the pre sales guidance that we have currently. Are we still going for a 25 to 30% growth for FY26 which is around 1690 crore and similarly for FY27, do we still see a 2190 crore kind of presale? Second would be related to the demand scenario as we are seeing a lot of job cuts in the IT industry. Do we see any changes in the demand coming from especially the Bangalore regions or probably the weekend home regions for Ahmedabad?
Kulin Lalbhai
Sure Isha. So as far as pre sales is concerned, we definitely see a growth which is more like 30 35% this year. As you are aware we have normally been growing by this number, I mean around 30% thereabouts the past several years. Last year was a little down. We do more like a 15% kind of number. But we will maintain 30 35% growth this year because we’ll also get some advantage of this pent up growth which was missed out last year to that extent. So yeah, for sure we should be pretty confident that looking ahead and where we are, we are talking right now, 30 35% growth should be achievable.
On the second question, job cuts, etc. I mean these are some of the macro trends which are emerging which we are seeing. We have been seeing some or the other of these uncertainties in the last few quarters. But per se we believe that India is on a very strong wicket vis a vis other peer nations. We are one of the fastest growing economy. We remain so with a very healthy margin so to say. And basic factors, basic, basic economic fundamentals remain very, very strong. So in the medium to long Term, we don’t see any significant worry on that part.
But yeah, I mean, in the short term, few things will happen and some aberrations, some calibrations and recalibrations will continue to happen. But we see this momentum to be quite widespread and quite deep and hence there are no immediate worries that we see on the demand side.
Eesha Shah
Okay. And sir, last question would be on. The operating cash flows trend, are we seeing slower collections than before? So any particular reason for that?
Kulin Lalbhai
The collection obviously is a function of what we sold in the past and what we are selling right now. This quarter has been primarily driven by sustainance sale and launches are getting a little bunched up towards Q2, Q3 and Q4 as we sell more towards the launch. I mean, pretty much two thirds of what we sell every year on an average basis comes from new launches which have not happened in the current quarter. But they will obviously be covered up and made up in the quarters to come. And hence we are very confident that our collection will catch up with the sales that we are expecting to catch up in any case.
Eesha Shah
Okay. Okay, thank you. That’s it from myself.
Kamal Singal
Thank you.
operator
Thank you. The next question is from the line of Shreyanshmeta from Equitas. Please receive.
Shreyansh N. Mehta
Yeah, thanks for the opportunity. So if you could highlight, you know, the launches which you are expecting this year, which quarter and what could be the GDV in terms of, you know, I’m assuming that it would be under phases, especially Surat and other projects. So if you can, you know, provide some color on the launches which you are expecting this year and especially on the timelines, which quarter’s
Kulin Lalbhai
launch obviously is. One of the most important target that we are chasing this year. We definitely want to achieve a number between 3000 crores to 4000 crores of fresh inventory to be launched within this financial year. The breakup of this 4000 crores is broadly like 1000 crores each coming from Ahmedabad and MMR and 2000 crores coming from Bangalore. Now within this there are quite a few moving pieces. We might end up exceeding this number as well. But broadly speaking, 4000 is the broad number that we’re looking at in terms of fresh launches and that should be comfortable for us in achieving our target of growth of around 30, 35% in the fresh stage.
That’s the perspective and obviously we are getting bulged up more towards Q3 and Q4. Q2 will definitely see at least one launch. But if you were to count five launches on an average basis, we might be one plus or one minus. But five launches we were to do this year to achieve 4000 crores, then four will happen between Q3 and Q4 and one will happen in Q2. That’s the target and that’s the expectation. That we have at this point in time.
Shreyansh N. Mehta
Got it. And Surat would be skewed towards Q4. Is that the broader understanding?
Kulin Lalbhai
Yeah. Looking more like Q4. Yes, correct.
Shreyansh N. Mehta
Got it, got it. Sure, sure. So in the presentation we’ve written a statement that we had pilot launched the industrial park. So any specific reason why we did a pilot and how do, how should one read into it?
Kulin Lalbhai
So I mean we always do that. I mean if you. A couple of times in the past as well. So this is basically to say that when the formal launch will happen, we’ll have a big bang event, lot of channel partners will be mobilized, not only within the city and state, but also outside, etc. Etc. Industrial is a little different cup of tea. We need to do things a little differently in terms of where and who to approach, etc. Etc. So what we’ve done is we fixed the launch to be formally done within this quarter, that is one.
And then we started talking to a few people explaining them the product, explaining them what is the offering really. And then you talk directly to some of the potential users, you get to know about the product, tweakings to be done, some changes to be done, etc. Etc. That’s our last opportunity that we take for the launch or the phase that we are launching for a particular project. We did that and a very similar pattern was followed for Aquacity as well. So we did that and we’ve done a little bit of a sale coming out of this pilot.
Now it’s the time to roll it out on a bigger basis.
Shreyansh N. Mehta
Got it, got it, got it. Sure, sure. And so lastly on the BD guidance which you are saying of say 5,000 odd crores, broadly speaking, you know, how much would be Mumbai, how much would be Bangal and will it be now, you know, given the comfortable debt levels, will we go for land acquisition or will still, you know, continue to have that gbjd?
Kulin Lalbhai
If I understood your question correctly, breakup. I already told us from new video. Yeah, Newbuty. I mean it’s more like in the context of how much we’ll invest in what city, what is the directional quantum or investment we have in mind. If that is the right way to approach this question, then the answer is 40, 40, 20, 40% each going into the markets of Bangalore and Ahmedabad and 20% going into the new market of MMR. MMR obviously is going to take time before it becomes full fledged market for us. So we have to take baby steps and hence this number will be a little lower in the short term.
Eventually it should exceed Ahmedabad for sure. But in the medium, rather short term it is 40, 40, 20. That’s how the investment plans are. What was the second part of the question? You can repeat that.
Shreyansh N. Mehta
So it was just in continuation whether you know, I mean how much would be towards land acquisition, you know and how much towards jv. Jd.
Kulin Lalbhai
Sure. So we have been JD heavy traditionally speaking and that broad trend will remain obviously it has to in our scheme of things moderate a little bit towards outright as well. We have on the funding side as we’ve been talking we have enough ammunition there to invest more like in the region of 900 to 1000 crores in next three quarters. So to say that means we have flexibility. JD, JVs remain a priority because in terms of capital allocation, return, etc. Etc. And optimization of return on equity they make a lot of sense. The brand is firing in the marketplace.
We get a lot of opportunity, we get a lot of offers and we continue to do so. In fact, couple of very interesting deals are in the discussion right now as we speak as well. So JD will keep firing. It will remain most likely the most important source of structuring for us. At the same time we have enough firepower to get into some deals which are on outright basis. So you’ll see a mix of both as we’ve always been doing but little more heavier on outright going forward as compared to the last four quarters.
Shreyansh N. Mehta
Got it? Got it. Sure sir. Thank you. That’s it for myself. Thank you and all the best.
Kulin Lalbhai
Thank you.
operator
Thank you. Participants who wish to ask a question please press star and one at this time. The next question is from the line of Rithwick State from one of the Nanshans. Please proceed.
Ritwik
Hi, good afternoon sir, just one question from my end to Kulinji. So what would be your three to five year view in terms of, you know, the contributions? We are focusing on Ahmedabad and Gujarat along with MMR and Bangalore on these three geographies. So what would be the contribution that you would expect would be a reasonable scale in the next three to five years from these geographies and you know in terms of mix also in vertical and horizontal. If you could just give your vision for the company. Hello? Hello? Am I audible sir?
operator
Yes sir, you are audible.
Ritwik
Can you hear me?
Kulin Lalbhai
Sorry?
Ritwik
Can you hear me now?
Kulin Lalbhai
Yeah.
operator
Yes sir.
Kulin Lalbhai
Yeah, sorry. So as I was saying in the opening comments, I think we have a very bold ambition for this company. I think Arvind in whichever businesses it operates in tends to always be one of the leaders in both textiles, in the fashion space. We are a top company in the top three, top five. And our ambition also in real estate will be to become a top 10 developer in the country. And that is why all the moves which we are making in terms of our organizational readiness, our talent density, our capital base which we need to deploy towards the growth opportunities, I think all of this is being aligned with that bold vision of becoming a leading player in the space.
And I think the fact that we have also opened up Mumbai is kind of with that thought in mind that there is a different kind of scale that the company has an ambition to reach. I think we have been talking about 30% growth in the last five years and I think even on a much larger base we intend to keep that kind of growth ambition and maybe even accelerate it a bit. So in the next five years you will see a significant improvement, significantly increase our base in both Bangalore and Mumbai. Bangalore, of course we have deep roots.
We have been there for more than 10 years and we are now in a position to almost participate in every micro market of Bangalore. Which means there will be large number of new project launches in Bangalore and the next five years will also see us seed Mumbai as a company. Our DNA has always been to lay the foundation first. So we don’t sprint into markets. We go step by step, understand them deeply. We’ve been a company where profitability and focus on cash flows has been the mantra. We are never going to leave that mantra. That has been our strength in the past and it will remain our strength in the future.
So in a sense we are going to augment the scale significantly but keep the DNA still focused on profitability and cash flow. And I do believe the next 5 to 10 years should be the most exciting of the company.
Ritwik
And sir, in terms of your group time commitment, where would Arvind smartspace be versus the overall other companies that you would also be managing? So if you can give us some color on that and incrementally is that incremental time and energy is going towards Arvind Smart or it is similar across the group companies as we’ve seen before.
Kulin Lalbhai
No, I mean you will see all the moves which we are making are clearly not a business as usual way of taking decisions. As a promoter group, we have identified this company as being a very special opportunity. We believe that it can become one of the biggest companies in the group overall. And that is why from a commitment of capital and time and more importantly the inputs that have been put into the business, all of them have been thought through to ensure that we really capitalize on the opportunity. Not look at it as just one more interesting business but look at it as a business which can significantly scale.
In fact in terms of the capital that will be deployed in this business over the next three years will be the largest in the entire group. And that kind of gives you an indication of how the asset base is going to compound. So we are taking this very seriously and lot of time, focus, energy and all the right inputs we will put to ensure that the opportunity gets converted into reality.
Ritwik
Right. Okay, thank you. And just one more question to Priyank. Hello sir, just one question. Where do you see and what is your vision for Arvind smart space in next three to five years and when, when you’ve seen your previous firm growing from sub 2000 crores to today 30,000 crores. So now what kind of excitement brings to you for similar trajectory over the next decade or so for Arvind’s partner?
Kulin Lalbhai
Thank you Ritik. Very interesting question and I think just in fact building on the answer that Kulin mentioned. So we are all very excited about this opportunity that platform presents and I think Arvind brand has a huge legacy. Real estate is moving towards branded players. So we see a lot of synergy coming our way. Like Kudin mentioned, we are trying to be in the top 10 developers. That is our medium term goal in terms of what we are trying to work towards. I don’t want to put a specific three to five year plan to it but I think that is what we are working towards.
We want to scale meaningfully but at the same time continue to focus on profit as well as cash flow as a key metric. And of course looking at building a fairly large business in the three markets that we are currently identifying.
Ritwik
Okay. Okay. Great sir. All the best and thank you.
operator
Thank you. The next question is from the line of Dananja Mishra from Sunidy Securities. Please proceed.
Dhananjay Mishra
Yeah, thanks for the opportunity. Am I audible? Yes.
Kulin Lalbhai
Yeah.
Dhananjay Mishra
Yeah. So. So in MMR reason how do you see this society redevelopment business? I mean do a lot of other players are looking at. Because there’s no outcast land availability, lack of land availability in this MMR reason. So a lot of other players are entering into this space and it is equally asset light. So how do you see this these market for the wind smart perspective. And also, do you have a team who are good enough to deal in this market?
Kulin Lalbhai
Sure. It’s a very good and important question to answer. MMR as a market has 3, 4 very important kind of keywords. One of them is that the market is huge, number one. Number two, there are quite a few established players, but at the same time there are quite a few more than what one could have expected. Unorganized players. And they still kind of take up a very significant chunk of the overall market. And the third thing about MMR is that there are projects which are very different in size and scale. They are very small projects to medium sized projects to very large projects, not only in terms of the top line, bottom line, also in terms of the scale of construction at.
So you got markets, you got scale, you got size, you got organized players, you got unorganized players. And we are talking put together a very, very large market, possibly the largest, one of the largest in India. And hence we see a play for various kinds of players within the market. Having said what Priyansh also said in Kulingbe also said in their earlier comment, the most important thing that we kind of identifies the consolidation that is happening across India and more so in Mumbai. Mumbai has very little space, very little land to expand, and hence redevelopment is the mantra pretty much.
I mean, majority of the action that you see in terms of new development is happening out of redevelopment. And hence this is the biggest opportunity within the biggest market that we are talking about. We clearly see a very important niche for us as a brand, as a company with a very strong Gujarat connect and a very, very strong Gujarat oriented demand in that city makes us place, I mean, getting our place a little better than many others. The brand has a very strong resonance. It is known, it is identified, and it is associated with all the kind of positives in terms of legacy, etc.
And when it comes to micro markets, I mean, I was surprised to see many of the large micro markets where redevelopment space is pretty much 90% still occupied by unbranded players in this market. And hence a very, very big opportunity still remains untapped when it comes to organized players. So despite competition, despite lot of players now jumping into this market segment, we see a lot of scope still untapped for the organized players like us and hence a clear niche and opportunity.
Dhananjay Mishra
Yeah, thank you. And all the best for your.
Kulin Lalbhai
Thank you.
operator
Thank you. The next question is from the line of Amitravastav from BNK securities. Please proceed.
Amit Srivastava
Yeah, hi. Am I audible?
operator
Yes, sir.
Amit Srivastava
Yeah, thank you very much for the opportunity. My first question is to Korean Bhai. So basically he highlighted given a good roadmap for the next five years to 10 years. And as we are trying to position ourselves in top 10 players are a well known name in our real estate market. So just wanted to understand that in the process what are the changes which we can feel are going to witness. Like today we are still have done the reasonable scale but still our positioning is towards a more plotted second home kind of positioning. So can this business model will shift towards a more luxury, more premium or more main market kind of positioning.
And now we’ll be slightly going ahead positioning in a MMR market which is a large market of Anglo. The positioning will much increase versus the Ahmedabad there some kind of restriction can come or we can maybe scale up much more in Ahmedabad itself in a bigger way. How the things will change over the next three to five years. Looking at the business metrics.
Kulin Lalbhai
Yeah, thanks for that question. I think first thing I’d like to highlight is how the last decade of exceptional kind of work in building a very profitable business model allows us to now have the dream that we are having. I think the way in the last five years we have been able to identify opportunities and scale up the business that is now driving an incredible growth in our operating cash flow. So the reason we are going to be investing 1000 crores a year is actually a function of the platform now achieving the scale and we are able to now reinvest with this scale.
So the first highlight I would like to make is the next five years look very different because of the hard work that has happened in the last five where we now have a right to play, a right to bet and much bolder and bigger. Second big theme which is going to be there in the next five years unlike the past is that we have two extremely large markets outside of Gujarat where we can really go deep. And Bangalore is a market we really like. It is a market which has a very vibrant middle class which is the space we play in.
And we have learned that city and established our roots there very well in the last 10. So with this now ability to deploy much larger capital accelerating, Bangalore is a very natural thing for us. We understand Bangalore very well and we are confident of launching multiple projects. In fact, Bangalore has been a vertical first city for us. It’s not been horizontal. Rich horizontal has been a larger part of our overall mix because Gujarat has historically been the larger part of the mix. So as we double down on Bangalore, it’s actually just Scaling up what we know how to do well, which is the vertical design LED product which is delighting customers in Bangalore and Mumbai will be as I mentioned earlier, seeded in a very smart way.
We do believe the brand resonates with the Gujarati community in Mumbai in a very unique way. And we want to bring both our second home horizontal capability where I believe the company is very, very strong and the redevelopment capability which we will build to provide, as Kamal Bhai said, a new niche and carve out a new niche for ourselves in the Mumbai market. So the second big transition that you will see in the company is how the share of non Gujarat will go up. The third shift which is linked to the second shift will be kind of vertical being much more as a mix because naturally the two markets we are talking about scaling up are going to be vertical first.
So as a natural kind of outcome of these two cities going up, you will see the vertical mix going up. And as Kamal bhai mentioned, since we are going to be deploying broadly 1000 crores a year, you will see much more capital of our own at play which means the outright component in the overall business model will go up. So I think these are some of the things you should look at. And as we are going to become a three city model we have structured our company to reflect that reality. So we will have three empowered leaderships and companies with a very strong central kind of role.
And that complementarity of strong city leadership with a very strong backbone of the center is what we feel will allow us a great combination of agility as well as control.
Amit Srivastava
Okay, it’s very helpful just to add into that. So can we expect gradually our business model in terms of from asset light model will slightly going towards a more capital intensive given more ownership will happen, more vertical side will happen.
Kulin Lalbhai
I think as Kamalpay said we will remain still JD intensive which means as a percent JD will still be larger than outright. But today’s JD percentage will probably be going down and outright percentage will be going up.
Amit Srivastava
Okay, great. Helpful. Sir, next question to Kamal Bhai just he has already given outgoing put on phase new phases of launches. Just wanted to Understand sir, last two quarters in a Q3 Q4 we slightly missed our guidance and one of the reasons we gave that certain projects got slipped. So logically it should have been come in a Q1 but still this quarter also launches was not there. So what has happened? Sir, we understand that it will be more back ended but what is the problems we are facing in terms of the launches?
Kulin Lalbhai
Yeah, so Mikhail I mean last year, last quarter we definitely missed and we grew just about 15% instead of 30% that we would normally do. And this was mainly on account of one project which got shifted. This is the project at Banagatta Road in Bangalore that we are talking about. With a top line potential of around 400 odd crores. This project is, I mean there are a couple of regulatory changes which came about in Bangalore. Initially it was due to about single site approval that was made mandatory which was earlier, not the case with the size that we’re doing.
So we’ve overcome that hurdle. We’ve gone through the deal and got that approved. Unfortunately, there is one more change which has very recently come into the market of Bangalore which says that you need to leave 5% land in addition and over and above what you used to do earlier for a project of this size, scale and this vicinity and geography. So this change is being incorporated right now. Unfortunately we hit two new guidelines which came on the way while the project was almost about to get approved, etc. This has happened with many developers and hence it’s a market trend so to say.
And that’s why we’ve seen that there have been persistent kind of over enough timelines on project launches in Bangalore happening in many, many cases. And broadly we are falling into these two buckets that we just talked about. Unfortunately this one of the project got sucked into both these buckets one after another. But other than that I think on the rest of it last year was okay. I mean barring this one exception, this should get resolved by the end of this quarter. And either by end of this quarter or early next quarter we should be able to launch and cover up for this.
The rest of the things are moving and as we just said we are very hopeful that within this year we should be launching anything between 3000 crores to 4000 crores minimum 5 odd launches that we are talking about and we might actually exceed this number. And once that is done, we obviously will show a very healthy growth in terms of fresh sales. We’ll not only do our normal 20, 25, 25, 30% growth, we should also do a little more than that because of. Because they are also hoping to cover up on the missed launch that we just talked about last year.
Amit Srivastava
Okay, thank you sir. It’s really helpful. Thank you for the opportunity.
Kulin Lalbhai
Thank you.
operator
Thank you. The next question is from the line of Harsh Pathak from MK Global. Please proceed.
Harsh Pathak
Yeah, hi. Thanks for taking my question and congratulations Priyansh for the for your role as CEO. So my Question is, you know, first of all on the Surat project, so what is our progress there? Are we, I mean we are facing some issues with the JV partner. Is that behind and how should we look at the launch this year?
Kulin Lalbhai
So yeah, I mean this project is running a little behind the curve now, but we are all trying to move ahead. It is a little technological kind of issue that we are resolving right now. Very hopeful. I mean while these are issues which take time to resolve and move ahead per se, the project is pretty much on track and we are very, very hopeful. Hopeful that this will be done. These are very large projects, we call them as LTBC, long term allocation projects measuring more than 2, 300 acres etc. Etc. And hence to get all these things sorted on the land, multiple kind of owners involved, etc.
Etc. Takes a little bit of a time. This time it has taken a little longer than what we had anticipated. But the good news is that this project is on track. We are very hopeful of entering Surat in a very big way. This is a very decent size, rather large size project that we’ll be starting with and hence extremely excited about this project as a company, as a, as a group here. But we should be able to move ahead on this pretty soon.
Harsh Pathak
So since the launch is scheduled for this year, Q4 in case if the, you know, legalities don’t get resolved, if the project slips to the next year. So do we still remain confident with the 30 to 35% growth guidance that we have given for this year?
Kulin Lalbhai
So when we say 3000 to 4000 crore rupees of launch, it will have some inbuilt flexibility, some margins, etc. Etc. So if we have six to seven projects to launch, we’ll plan for five this year and hence any individual slipping does not necessarily jeopardize the overall kind of target that we are chasing. So we should still be in a decent position. But yeah, of course it all depends upon the size, scale and number of launches that we’re able to achieve at the end of the year. But generally speaking would have some inbuilt margins and inbuilt kind of feasibility within our plans.
Harsh Pathak
Okay, understood. And sir, when is the Copuli project plan launched? So a launch plan in this year.
Kulin Lalbhai
Or the next, I mean most probably end of this year before.
Harsh Pathak
Okay, so are we facing any NGT problems there? Because this is the case which we are seeing across. Mm. So is that the case for this project and how are we placed there?
Kulin Lalbhai
No, there are no NGD issues here. This Land is pretty much in an area which otherwise is an area where environment clearances etc are all happening even zoning wise and otherwise we are pretty comfortable. All the processes are on right now as we speak. Approval, conversion, environment, etc etc. We don’t anticipate and see any known issue at this point in time. And hopefully we should be able to launch this before this year ends.
Harsh Pathak
And sir, one last question from my side. So like you explained regarding the redevelopment space in the MMR region. So. And with Priyansh also joining now his focus has been more towards the MMR side in his earlier stints. So how do we look at MMR now and what kind of of GDV additions can we look for during the current year and the next in MMR region?
Kulin Lalbhai
So I mean mmr, as I just said it’s a market we are seeding. We have generally been conservative when we enter into a new market. We took decent time before we established ourselves in Ahmedabad. Then we went into Bangalore, took baby steps. We would always prefer to walk before we run. That’s what we’ve done in three historically. Because we think that every market, every geography is a new business for us. And that’s how we are going to be taking Mumbai also in that sense. But Priyansh entry into the business changes quite a few of these dynamics.
Because we strongly believe that Priyansh knows these markets for a very long time. He’s delivered scale there, he understands nitty gritties. And hence addition of Priyansh and his joining and leading the team will change quite a few dynamics. As far as scaling up and speeding up of MMR as a market for us. That should really, really help in the very short term. We are allocating almost like 20% of our CapEx for this market. But this should get very, very. This should get augmented very very soon with Priyansh entering and leading the team.
Harsh Pathak
Sure sir. Fine. Those are my questions. Thanks a lot.
operator
Thank you. Thank you. Ladies and gentlemen. In order to ensure that the management is able to address questions from all participants in the conference please limit your questions to two per participant. The next question is from the line of Ronald from ICICI Security. Please proceed.
Ronald Siyoni
Thank you for the opportunity sir. Sir, on the launch pipeline front, like what I was assuming that around 400 crores will be sustained sales and these five projects would be around 3700 crores. So you would have to sell almost about 30% odd in these projects to achieve that target of 30% growth which seems a very tough task especially for NH47 project. The thousand Crore odd projects to sell, you know, 30%. Especially few projects are back ended in Q3, Q4. Are you confident enough, you know, to sell that much in a larger project when the launches are skewed more towards the end of the year?
Kulin Lalbhai
Sure. I mean when we said five or launches should help us achieve these numbers, we have a very strong launch pipeline. Otherwise more than 5. For example we have ITPL Whitefield project in Bangalore. We have Banagatta, we have Orchard phase two. We have Industrial park to be launched. We have got Mancold which we announced a couple of quarters back. It’s ready to launch. We are of course Surat remains a strong candidate for launch. Mmr, we have one project already announced and we are very hopeful that one more should be announced very soon and it might end up getting launched this year.
And we are also kind of trying to add couple of such projects in all these three markets put together which have shorter sign up to launch cycle and hence it should also be getting added into this year’s launch pipeline. So all in all it’s a very widespread launch pipeline that we’re talking about and picking and choosing five of them is something that we are targeting. Otherwise the probability and possibility of launching more than five is pretty decent, healthy and achievable. That’s one on the volumes and sales because they are all getting bunched more towards H2, not necessarily Q4, they are more getting bunched towards H2.
Historically we have been selling more like 30 to 40% in the first burst itself. That’s how the company is configured and that’s what our target has always been. That the time of launch, we price it right, we propagate it right. We do product in that sense. Right. And other things aligned to that kind of objective where we end up selling 30 to 40% at the time of launch for the phase that we launch. That is something that we have been achieving, achieving in the last several, several launches in years. And we are pretty confident that selling 30% should be something which is a bare minimum to sell at the time of launch of any project.
Ronald Siyoni
Great sir. And secondly sir, on the industrial park project like two transactions comes to around 550 per square feet. While your you know estimate of 1350 crore for the project gives around 700. So about 20% of discount to the current pricing which you have done for the pre launch. So are we confident enough that you know we would be able to get more than 20, 25% hike for this project to achieve that, you know GDV of 1350 crore for the project. So are we confident that such kind of pricing movement you know in year would be possible? You know.
Kulin Lalbhai
Yeah, I mean I think we are a little more than 5,550 per square feet in this particular case where we just started. Plus this is just a pre launch and second aspect is that in our industrial park there are quite a few concepts which are bringing to the market for the first time. And there are some very very significant value add which will improve our top line and bottom line. One such example is the introduction of JLD for example in a private kind of setup which is never offered or rarely offered by any private developer for industry.
So we’ll have inbuilt CETP. We are planning to have inbuilt JL D0 liquid discharge facility which is normally not the case. And these value adds will significantly increase our realizations compared to the industry norm etc. And hence the guidance of 1350 is pretty much achievable. I mean we are on track and. And this is, this is quite, quite achievable.
operator
Thank you. The next question is from the line of Raj from Arja partner please.
Unidentified Participant
Hello. Yes we can hear you. Our share or the overall share?
Kulin Lalbhai
Sorry, can you repeat the question please?
Unidentified Participant
The figures which you have given in the PPPT it consists of only our share or it consists of the overall business including the JD share?
Kulin Lalbhai
No, this is our share. So whatever is. I mean you’re Talking about the 4,000 crore rupees something that’s the Sunday less.
Unidentified Participant
Cash flows and all these things. All the figures it comes to passer of the right.
Kulin Lalbhai
All expenditure money to be paid to the landlord, JD share, JV share etc. Etc. Retained by us, our chair. Yes.
Unidentified Participant
Calculations. So in the ongoing side total unrealized sale will be around 5300 crores. Am I right? Something, something around that.
Kulin Lalbhai
Could you tell us which slide you’re referring to?
Unidentified Participant
I just calculated, see.
Kulin Lalbhai
Okay so if you have. If you have calculated something it will be good to connect offline with Vikram. I’m sure you will have Vikram contact available or you can take it from the conference and just get whatever clarifications you wanted. Otherwise the presentation has many date. I mean a lot of data but you can get clarifications that you. You need.
operator
Thank you. The next question is on the line of Nasser Parikh from native investment manager. Please proceed.
Naysar Parikh
Yeah hi. I just want to understand from a growth perspective which even a previous participant asked last year we grew I think bookings 15% this quarter. Obviously we are down full year guidance. Also I think bookings single digit growth maybe. So how do we look at the bookings growth going forward? If you can just talk a bit about it. Because two years seem to be not. We are not reaching that 20% plus growth that we want to do.
Kulin Lalbhai
No, it’s only about the last year for the first time that we grew by 15% before. There’s always been more than 25, 30%. And very specific reason that we just discussed for the last year and rather last quarter was one miss on the launch of which we are now trying to make happen. I mean this quarter or possibly next quarter. Apart from that we are broadly on track. We always achieve 25, 30% and this year the match that we have done and we explained and discussed in this call and even earlier is that we should be growing better than.
There will obviously be some additional sales coming from the launch that we missed last year. And this year’s specific launches are on track. And we are pretty confident that we will end up doing something like five launches this year which will be more in the region of 3000 crores to 5000 crores fresh inventory coming into the sales pipeline. So to that extent, I mean at this point we are pretty hopeful and confident that a growth of 30, 35% should be achievable. Okay, but it basically means we have.
Unidentified Participant
To book 500 crores almost every quarter, right?
Kulin Lalbhai
Yes, yes, on an average basis.
Unidentified Participant
And do you see collections also to kind of, you know, be. Because collections, you know, have been bit tepid. I know you mentioned that, you know, but its collections are growing slower than bookings and so do you see collection space also picking up in the later part of the year from a growth perspective?
Kulin Lalbhai
I think both these questions are in a way connected. Sales and collections both are driven by launches. Pretty much 2/3 of what a real estate company typically does these days comes from fresh launches and the rest is supposed to be sustainance to that extent. The sustainance side is taken care in Q1 as well. And 75 crore broadly coming from sustenance is the average that we wanted in any case. So that’s done. So it’s about launches really. If you are able to launch the kind of projects and the kind of number that we want to achieve in the remaining 3/4, then sales and collection is a function of that and should happen, it will happen automatically.
But otherwise collection efficiency wise and otherwise we are very healthy from whatever was collectible, etc. For the sales that we’ve done in the past, obviously there Was no fresh launch. We’ve done very, very decent and this is as per what we would have anticipated and hence otherwise collection engine and efficiency is pretty healthy. Now it’s a function of launching from here onwards and if launches go right as planned, sales and collections both should come back on track. Should be on track.
operator
Thank you. The last question is from the line of Amit Agija from Edgy Hawa. Please proceed.
Amit Agicha
Yeah.
Kulin Lalbhai
Yes, you’re audible please.
Amit Agicha
Yeah. Thank you for the opportunity. So my question was connected to the employees like with only 456 points higher than outsourcing. Like how project quality and execution control. Like any plans to scale in house, execution team or technology usage to improve the efficiency.
Kulin Lalbhai
So if I understood your question correct then you are saying that we are a 450 odd outfit and are we scaling up or not enough for the volume and skill that we are talking about? Is that the question?
Amit Agicha
Yes, yes.
Kulin Lalbhai
Oh yes. So it’s a great question. It’s about team, it’s about being future ready. We’ve always requested upfront in teams. We always, I mean I remember we talking and discussing this point in the last call as well where I said that you would normally prepare and size the team based on what we’ll need the next year. So if next year target is 2000 crore, we’ll rather be ready by the end of this year to take that kind of a volume. That philosophy has been followed for last several years. We’re doing that right now. So you can rest assured that if we are building the team today, it’s supposed to be ready and sized enough for next year’s volumes.
This 450 number has to go up. Definitely. All this very detailed exercise has already been done. Right now we are under execution of that strategy and recruitment etc. You will see the data on that pretty soon and we are obviously scaling up to the size that we are talking about.
Amit Agicha
What are the top three strategic risks you foresee in scaling to 5,000 crore plus top line?
Kulin Lalbhai
So I mean this are external and internal. External obviously is macro factors. I mean India is at this point at least twice pretty decent and healthy. But there are still some geopolitical risk which we all carry as economy, as country, as region etc. Etc. That’s one on the internal side. Rather than calling them a risk, I’ll rather call them as challenges and something that we need to overcome. Mostly it’s about execution. Fortunately we’ve seen a very stable demand cycle and environment for the last few years and hopefully that continues the Cost side is also pretty stable for the last at least four to five quarters and it’s expected to remain so.
And hence cost side is also not something which is worrying us too much. Sales side is broadly being taken care and we are ramping up our sales engine. We done pretty well on our digital sale technology on that, etc. Etc. But one thing that we should all be very, very focused on is execution. When one scales up, execution is something which tends to get a little on the, on the. And that’s one important kind of focus that we don’t want to lose that needs scaling up the team getting into right technologies. Our controls and SOPs have to be up there.
Our selection of vendors have to be absolutely right. Our financial engine has to continue to work so that we can perform and pay on time. That has never been the challenge, but nevertheless this is something which is an important so the overall execution engine is something that we should all be focused on. That is what we are right now focusing. At the same time, for the long term and medium term growth, it’s important to keep acquiring fresh projects which are profitable. And this company, as Kulinbai very rightly said, is not only about adding to the top line and scaling up the business, it’s about scaling up profitably and meaningfully.
And another challenge other than execution will also be to keep finding projects which are not only of size that we wanted, but also profitable enough for us to cross the length that we apply on profitability side of it. The third challenge, if I were to count one more, is to make sure that our entry and our establishment into the new market of MMR goals, right? That clearly is an important piece in overall scheme of things. But there the addition of Priyansh coming as a leader is obviously one step that we’ve taken. One of the most important steps that we’ve taken to make sure that we are prepared and prepared in advance to do that and achieve that in this very, very critical market going forward for us in that sense.
So these are the three things that I’ll be very focused on. I’ll say that the convention needs to be very focused on.
operator
Thank you very much. Due to time constraints, that was the last question. I now hand the conference over to the management for the closing comments. Over to you sir.
Kulin Lalbhai
Great. Thank you everyone for participating in this earning call of Armin smartspaces. I hope we have been able to address most of your queries. However, if there is anything missed out on any of your questions, kindly reach out to the Vikram and he’ll connect with you offline and clarify and give further information as may be required. Looking forward to interacting with you all in the coming quarters. Thanks again for your time. Thank you.
operator
Thank you on behalf of Arvind smartspace limited that concludes this conference. Thank you for joining us. And you may now disconnect your lines. It.