Ashiana Housing Limited (NSE: ASHIANA) Q2 2025 Earnings Call dated Nov. 15, 2024
Corporate Participants:
Binay Sarda — Investor Relations, E&Y LLP
Vikash Dugar — Chief Financial Officer
Varun Gupta — Director
Analysts:
Shivam Prashar — Analyst
Himanshu Upadhyay — Analyst
Rohit Balakrishnan — Analyst
Saket Shah — Analyst
Saurabh Goel — Analyst
Rishi Singhal — Analyst
Presentation:
Operator
Ladies and gentlemen, good day and welcome to Ashiana Housing Limited Q2 FY ’25 Earnings Conference Call. [Operator Instructions]. Please note that this conference is being recorded.
I now hand the conference over to Mr. Binay Sarda from E&Y Investor Relations. Thank you and over to you, sir.
Binay Sarda — Investor Relations, E&Y LLP
Thanks, Tanmayya. Welcome everyone and thanks for joining this Q2 FY ’25 earnings call for Ashiana Housing Limited. The results and the investor presentation have been mailed to you and it is also available on the stock exchange. In case if you have not received the same, please write to us and we’ll be happy to send it over to you.
To take us through the results for this quarter and answer your questions we have today with us Mr. Varun Gupta, Whole-Time Director; and Mr. Vikash Dugar, CFO. We’ll be starting the call with a brief overview of the company’s performance of this quarter and then we’ll begin the Q&A session.
I would like to remind you that everything said on this call that reflects any outlook for the future which may be construed as a forward-looking statement must be viewed in conjunction with uncertainties and risks that they face. These uncertainties and risks are included but not limited to what we have mentioned in the prospectus filed with SEBI and subsequent annual reports which you will find on our website.
With that said, I’ll now hand over the call to Mr. Vikash Dugar. Over to you, sir.
Vikash Dugar — Chief Financial Officer
Thank you, Binay. Good afternoon, everyone. I hope all of you and your families are keeping healthy. I welcome you to discuss the performance of the second quarter of FY ’25 for Ashiana Housing Limited. Thank you for joining us today.
Area booked recorded at 7.29 lakh square feet in second quarter of FY ’25 vis-a-vis 4.43 lakh square feet in the first quarter of current year. Increase in area booked was attributable primarily to launch of Ashiana Amarah Phase 4 in Gurugram wherein 2.95 lakh square feet was sold out of 4.79 lakh square foot. Value of area booked at INR672.54 crores in the second quarter vis-a-vis INR235.32 crores in the first quarter of FY ’25.
Total pre-sales for H1 FY ’25 at INR907.86 crores. We constructed 6 lakh square feet in the second quarter vis-a-vis 4.9 lakh square feet in the first quarter. Total construction for half year of the FY ’25 was at 10.92 lakh square foot. However, as anticipated, our total revenues are lower for the quarter at INR59.53 crore vis-a-vis INR128.51 crores in the first quarter, reflecting the lack of project deliveries during Q2 FY ’25.
Likewise, our PAT for Q2 FY ’25 stood at negative INR7.55 crores. This performance was mainly due to the fact that aside from one phase in Ashiana Shubham in Chennai, no new phases were delivered in the first six months of the current year. That said, we are optimistic about a strong second half with several key projects delivery scheduled, which would positively impact our full year earnings and profits. We continue to maintain our guidance of INR2,000 crores of pre-sales in the current year.
Pre-tax operating cash flow recorded at INR78.18 crores vis-a-vis INR75.29 crores in Q1 and INR74.92 crores in Q1 FY ’25. Pre-tax operating cash flows for the half year was at INR153.11 crore. Cash flows continue to be healthy due to higher collections driven by better sales across projects in general.
On this note, I would like to conclude my remarks. We will now be happy to discuss any questions or suggestions that you may have. Thank you.
Questions and Answers:
Operator
Thank you very much. [Operator Instructions] The first question is from the line of Shivam Prashar [Phonetic] who is an individual investor. Please go ahead.
Shivam Prashar
Hello. Yeah, hi, sir. I just want to ask that, is there any plans of buying land in Gurgaon as you don’t have any other land other than the Sector 80 HSIIDC-1?
Varun Gupta
Hi, Shivam, as of now, we don’t have any active ongoing negotiations in Gurgaon. We continue to look for parcels. But in our opinion, the Gurgaon market has become very expensive on the land side and I don’t — at these prices, we are finding very hard to find commercially viable transactions in Gurgaon at this moment of time. So we are in conversations but very slow overall in the offtake there. We are focusing more on other neighborhoods where we find commercial viability.
Shivam Prashar
Okay, so sir, like this, we have been listening from past couple of quarters that we are finding Gurgaon expensive. But if we look at your peers like everyone is buying land in Gurgaon. So is there any specific reason that we are not able to find the land at good prices or the peers are getting it at a higher prices?
Varun Gupta
Well, that is a matter of relative perspectives. In the — whatever the peers have paid for lands in auction, which I am aware of prices, they were significantly above the price I would have been willing to pay in some of those auctions, and we looked at in NCR, we participated in two of those auctions and the final closing price was significantly ahead of our walk away price, and so in our opinion, those prices are expensive, but these are — this is all relative, right? So they might have a different lens to apply to the market and that’s their view.
Shivam Prashar
Okay. And sir, what would be the price realization per square feet in the Sector 80 land that you are having as compared to the Amarah? Will it be lower or higher because it’s like a bit far from Amarah I guess.
Varun Gupta
Hard to comment on it, Shivam, It could be either higher or lower, it’s not going to be too further away from each other. So it’s going to be similar price points, tad bit lower, a tad bit higher will depend at the time we launch the project and at that market scenario at that specific moment of time. But we expect them to be not very divergent in price points.
Shivam Prashar
And sir, any update for the balance units of Phase 4 and Phase 5 of Amarah? And the price…
Varun Gupta
So, Shivam, I will take this last question. There are some people in the queue. After this, we would request you to get back in the queue if that’s okay. So there is — in the sense of Ashiana Amarah’s Phase 5, that launch is expected in the fourth quarter of this financial year. We are working on RERA application there which we hope to post soon and then after RERA, go ahead and launch. And Phase 4 of Amarah, we continue to sell Phase 4 Amarah and the total units sold in the quarter and as on date in the project are updated in the deck that we have given and the launch sales were anyways given out separately. So we have sold a few units since launch and October sales were also good in Amarah Phase 4 from a sustain and sales perspective.
Shivam Prashar
Okay. So, sir, what’s the pricing on the balance Phase 4, even like it’s higher than the previous one or it’s low?
Varun Gupta
Yes, yes, the unit pricing is higher because the launch discounts have been taken off the units, and I hope to continue to increase pricing as well. So I don’t know when the next price increase will come but the launch discounts have been taken off, so effective pricing is [Technical Issues].
Shivam Prashar
Thank you.
Varun Gupta
Thank you, Shivam.
Operator
Thank you very much. The next question is from the line of Himanshu Upadhyay from BugleRock PMS. Please go ahead.
Himanshu Upadhyay
Yeah, hi. Good afternoon or good evening.
Varun Gupta
Good afternoon, Himanshu.
Himanshu Upadhyay
Yeah. Sir, my one question was, we did a premium housing project: One44 in Jaipur. What were our — are our key learnings and then the potential for such — what is the potential for such projects in Jaipur? Can it be a 3 lakh square feet to 4 lakh square feet product every year in Jaipur which can be higher margin? Any thoughts on that pricing product 8,000, 9,000…
Varun Gupta
So, first, we call them Elite Homes, Himanshu, so a good question over there. So one learning on that is that the audience here that comes in is very different from some of the audience that we’ve been regularly catering to. Some of it is what we have catered to earlier, maybe they had invested in other projects and now buying to live here because now they suit their requirements.
So one learning was that there are customers who were searching for this kind of an offering from Ashiana. So, there were a customer pool. So the hypothesis which went correctly that there was a customer pool which wanted Ashiana kind of projects in Jaipur but in bigger sort of size and a little bit more closer proximity to the city which One44 provides. And I think that’s been our biggest sort of learning that there is a market for this and we have learned how to sort of a little bit position this, how do we sort of cater to their needs. So there have been some sales learnings also along the way that we have gone ahead and done.
And yes, I see a about 2 lakh to 4 lakh square foot annual market for Elite Homes in Jaipur for Ashiana to play out. It will take some time to build out because we’ll need to do a couple of more projects before we can start doing this like, sort of an annual basis. Maybe take another project of 4 lakh, 5 lakh square foot and then take it from there into the next step and then take it from there would be the ideal way to go about doing this. But definitely seems like there is a good market for this in Jaipur.
Himanshu Upadhyay
Okay, and one more question on Jaipur only. The land we are leasing in Jaipur for residential development of 20 acres, can it be possible that the other developer from whom we are buying this land or — not buying but leasing, also launches the project if they see success in our launches and can lead to increased competition in that micro market as they have a huge land bank? Or is there some exclusivity that for next three years, we will have the first right of launches and sell in that market and then the other person can come up? Any thoughts here or — because it’s a residential housing or a general purpose housing, not senior living, what we did with them in Chennai.
Varun Gupta
Okay. So, two, three things, Himanshu. A, even though it is a lease, it is effectively a buyout because that’s the structure in Rajasthan. Even all our regular projects earlier have been leasehold. Freehold came in very later in any way, so it’s been a sort of a — generally it’s a very long tenure, 90-year lease kind of a structure, so they are not — they are effective, in commercial substance they are sale of land, okay? And we’re going to develop and do that. That’s the — from a commercial substance perspective.
And yeah, the landlord is free to go ahead and develop themselves, they are free to sell other parcels to other developers who can also come in. At this moment of time, I think more development there would actually be good for the neighborhood because actually it will develop the neighborhood. And second, having done Ashiana Umang with the size and scale it is there in that micro market and our brand name in Jaipur in general, we will — in my opinion, we are market leaders there and we will set the tone in the market, so we don’t worry about competition so much coming in, in that perspective because our products are very differentiated as of now and we do enjoy decent cost structures as well.
So, I would be actually happy if few more developments came because they will perk up the market and create — and therefore create a different level of activity in that neighborhood as compared to here, right? And supply is — it will not create an oversupply situation to me even if two, three more developments came in at the same larger development.
Himanshu Upadhyay
Okay, thank you. And one last and I’ll join back in queue. We have got CC for Ashiana Utsav in Lavasa. Any thoughts on when we want to launch it because the CC we got in July is nearly four, five months, we have not launched it. So any thoughts here?
Varun Gupta
Yeah. We have not put a specific thought to that yet, Himanshu. We’ve been trying something alternative with it to see if we can find one single buyer or some other thought process of leasing it out in between. So there have been some alternative options being explored. So it’s hard to comment exactly when we will take that up.
Himanshu Upadhyay
Okay, thanks for answering.
Varun Gupta
Thank you, Himanshu.
Operator
Thank you very much. The next question is from the line of Rohit from ithought PMS. Please go ahead.
Rohit Balakrishnan
Good evening. Thank you for the opportunity. So, sir, based on your Slide 16 on the presentation, is it correct that you sold — in terms of delivery for this year, you have a delivery of at least INR657 crores in this year. So based on that, around INR480 crores will be in the coming H2. Is that understanding correct, sir? And this could increase as well.
Varun Gupta
Yes, yes, that understanding is correct, right. About…
Vikash Dugar
Inventory also.
Varun Gupta
Yeah. So INR666 is what we expect to deliver if things go as per plan, and if you remove the first half, whatever is left should come in the H2. That’s correct. And another INR90 odd crores of unsold stock in those projects are remaining. Depending on how the pace of sales on those projects continue, that should also come up for delivery. And there is some completed unsold inventory like Ashiana Town where we have sold, which is — which will come up a little bit more over and above on top of this.
Rohit Balakrishnan
Fair enough, understood, sir. And sir, was good to see that you’ve done two land deals in — one in Jaipur which you briefly spoke about just now and then also in Bangalore. So the Bangalore deal — so both are sort of expected to be complete by then? I mean I think there are some CPs left so just wanted to get a sense.
Varun Gupta
We think — yeah, so the Jaipur one is a 90-day period is expectations from the date of the agreement. So let’s say early next quarter is when we hope that it get concluded and about four months for CPs in general is what we would expect in Bangalore from the date of the agreement. So again middle of next quarter is what we would sort of expect those CPs to get completed and for us to move forward this year.
Rohit Balakrishnan
Okay. And once done, then how long would be the launch specifically in Bangalore because it’s a new market for us? So how long will you take to sort of get to a launch kind of level?
Varun Gupta
12 to 18 months is what my general expectations are. I’m hoping we can move things faster, but yeah, that’s what I would say would be, 18-odd months is what I would take in Bangalore.
Rohit Balakrishnan
Okay, sure. And sir, you are still maintaining your INR2,000 crore of pre-sales guidance. So that would mean that you need to be closer to INR1,100 crores in the second half. So what are the key launches that you have in the second half?
Varun Gupta
So, we have Amarah Phase 5. We will be launching Phase 2 of Nitara, Ekansh Phase 4, Ashiana Swarang, Ashiana Amodh’s Phase 2, there is some more in Tarang as well. Yeah, that’s…
Vikash Dugar
Major piece would be Amarah.
Varun Gupta
That should be — of this, the biggest piece would definitely be Ashiana Amarah.
Rohit Balakrishnan
Right, right, right. And, sir, in the ones that we have launched already, if I’m looking at your Slide 15, I think, yeah, so I think there is — I mean most of the projects are — so we have about 75 lakhs of saleable area, and we’ve booked about 58 lakhs already. Within the ones which are significantly — like I mean where there is some bit of unsold and I think some of this has launched recently also, so, just wanted to get a sense, there is Advik Phase 2, that seems a bit slow. Is that correct or we have some portion — quite a bit of portion unsold, so is that slowly moving or my understanding is wrong?
Varun Gupta
What — Ashiana Advik if you look at it has been doing about 30,000 to 40,000 square foot on average a quarter and that’s fine. Ashiana Advik Phase 2 was launched in the first quarter of this year, and senior living projects are not that we get a rush of sales at launch. We generally sell the project through the life. So at 40,000 units a quarter, we will be okay with it, there’s no challenge. And, so, I’m not uncomfortable at all with Advik’s sale volumes.
Rohit Balakrishnan
Got it. And on similar line, sir, on Malhar and Pune Phase 2 and 3, I mean Phase 3 rather so…
Varun Gupta
Yeah, again Phase 3 was launched, so in Q2 actually, so Phase 3 the sale volume is at — completely at launch. We have also wanted to move in Ashiana Malhar from selling very quickly at launch to be more comfortable in selling progressively as long as we get a better price. Pune pricing was a little bit of a concern to us. So we — and Phase 1, 2 we wanted to sell a lot of volume to get the project going.
In future phases we are okay with a little slower sales because you still have time in the project, so cash will anyways come in as when the project will get built. But the project has gotten a sense of financial security now to get through and get going and put that together. So pricing will definitely move up.
And with that in mind, I think Malhar was also considered the same way. If you look at even let’s say Amarah Phase 4, we didn’t sell as well in terms of square foot volume as Amarah Phase 3. But we nearly achieved as much sale price in total revenue terms, because we upped the sale prices and we want to continue to sort of get some pricing there as we go forward because we are in the later phases of the project.
Rohit Balakrishnan
Right. So just two more questions. So one on — so in this year, you’ve already mentioned that you’ll be in black for the entire year. But any sense on what kind of profitability will you see because Phase 2 will be there and I think — I mean Phase 2 onwards, the profitability — sorry, that was unknown. Sorry. In general, I wanted to get a sense from this year what kind of profitability will you start — will you see?
Varun Gupta
So, I think profitability for this year would probably be very similar to last year except for Ashiana Advik, which is a high-profit margin project, cheaper land and all. It’s FY ’26 onwards where I see our overall profit profile changing significantly ’26, ’27, ’28, those will be higher margin projects in general. This year again that — similar to last year kind of profit margins. Last year I believe we did a 9% PAT margin if I’m correct, so, somewhere probably around there, maybe a tad bit better than that.
Rohit Balakrishnan
Right. And then just last question is, I mean so from here on, this year FY ’25, let’s say you get close to INR2,000 crores. We don’t have a lot of surplus land now left to really like continue with the growth rate that we would want, given the upcycle and like you mentioned, obviously the land prices are going up. So two, three years out, how do you see — I mean of course next two, three years the deliveries are going to be up. So your reported numbers will be better and at better profitability also. But from a pre-sales point of view and scale of our business, how do you see that we have entered — we have scaled up a couple of cities, Gurgaon, Pune, also now hopefully entering Bangalore now. So I mean would be glad to hear some — your thoughts.
Varun Gupta
Okay, yeah. So, Rohit, I’ll take this up. I’ll give an answer. I would just request after this, if you can come back in the question queue as well, some people will ask few questions and join back the queue. So after this one, please, if you can come back in the queue. I’ll take this up and I’ll give a little bit of a [Technical Issues]. So it becomes — from a management perspective, this challenge comes in right now is to should we deploy capital at these times in the market. Largely we find the lands overpriced but sales velocity is good. Should we keep speeding the sales pipeline to improve pre-sales and is that the only thing we should look at or should we be a little bit more fearful that if things turn off and if we have paid — overpaid for land, where will we get stuck and how will the markets behave? Unfortunately, there is no sort of straight-line answer to this, okay?
In my view, though, has been that let’s worry about annual pre-sales a little less, okay? Our objective is to create the capacity to do those, have the brand, have the sales machinery, the construction capacity and do that. Can we live with a little bit of aberration here or there? We probably could. So first of all, yes, pre-sales couple of years might be out. But for me, whatever we have on stock right now, if we sell this, build this out, we can recognize close to INR2,000 crores of profits from it. And if we can get that in the next five, six years from a earnings and the perspective — growth perspective, I think we’ll be solid from the kind of base we are at and let’s say we realize these entire profits by 31st March ’30, which we intend to do between this kind of number. From our total revenue, cash flow, earnings, return on equity, return on capital employed, we are sort of doing very, very well compared to the current net worth, current profitability and we do that out there.
So we are — but then the question of pre-sales comes in and stays with us. So the way we have looked at it is this, that we will allocate capital from an ROE lens, and where we find capital very — land very expensive, we will see what we can do to ensure that our return on equity remains good. So one is either lower the capital employed through joint ventures. Second, look at smaller-scale projects like we had taken up One44 in Jaipur which is 4 lakh square foot. We have taken up another small project in Jamshedpur. Again, very little capital employed but can we buy small amounts of stock that we can turn around a little faster and quicker? So even if we have risk on the stock becoming too expensively priced, my risk is limited to a smaller number. So that’s one.
Third, can we find pockets of value where people are not looking, where I can still see to make good margins and numbers? So we saw this opportunity in Jaipur. So we have gone ahead and done a large transaction. Again, these are things where I can be completely wrong, right? Future might tell me otherwise. But that said, we saw that in Jaipur we have delivered a project which saw us do something larger. So we are looking at it from that lens and to do, and see senior living is another where we want, where we can find opportunities to do more scale and continue to increase that number. So that’s the way we are chipping away at this problem right now slowly and slowly and get there.
Right now, we have good stock from another couple of years perspective for the next two years. After that a little bit of challenge might come in. But we have made up our mind if we might be — like in Gurgaon, I’d rather live with the problem of not having something to sell for a year or two rather than having the problem of having such an expensive land that selling it at profits or even a regular return just becomes very difficult and we don’t have the flexibility of having the liquidity available to respond to it as well.
Between those two errors, I’d rather make the error of not having enough stock to sell. That’s according to me which side we will err on because having cash does provide flexibility in that aspect. So that’s where we are coming from and I can tell you this much, in my opinion now, we can see some signs of frothiness in a few markets. Sales are not going as well for some developers that we hear. We are hearing some slight reduction in prices, oversized units and some of that will get start — getting talked more and more about in some micro markets.
And I’m sort of kind of glad in some of the places where we did not do transactions like in some auctions where somebody paid a lot more than us and you feel bad at that point in time, like why didn’t I get a deal that I want, but we look at it now and we’re like, yeah, that was a good thing we did. We shouldn’t have paid that price that other people pay right now. So that’s how I am thinking about this, that rather err on that side of the mistake, that we had rather not have stock to sell rather than having overpaid for stock.
Rohit Balakrishnan
Thank you so much. That was very elaborate. Thank you very much.
Varun Gupta
Yeah, thank you, Rohit, yeah.
Operator
Thank you very much. [Operator Instructions] The next question is from the line of Saket Shah [Phonetic] from — who is an individual investor. Please go ahead.
Saket Shah
Yeah. Hello?
Varun Gupta
Yeah. Hi, Saket.
Saket Shah
Hi. Sir, my question was how are we planning to raise the funds for expansion and is there any roadmap for its utilization and improvements in margins in our projects?
Varun Gupta
Okay, so two, three different things. So first, if we’re going to raise money, we will raise money by way of debentures or loans. We have a platform tied up with IFC to invest in our funds and that’s a INR225 crore platform. We’ll be utilizing some of that platform for some of our projects. We’ll also probably take approval to raise secured debentures in case we need to do some secured debentures like we did to ICICI Pru earlier on in the year, we can do that and take some construction finance if needed. But construction finance will be a small piece because most of the funding we will need probably will be for land acquisition. But we’ll do that at that time when it comes to acquire more lands as and when we go ahead and do that.
And operating cash flows remain very robust and strong, we have had over INR150 crores of pre-tax cash flows from current projects in this half year already and they seem to be robust. And on margins, we — as I elaborated earlier, from FY ’26 onwards I would see margin expansion to start happening for us because the higher margin projects will come up for delivery like Ashiana Amarah, Ashiana Ekansh, these are higher delivery projects — margin projects Nitara, Prakriti, Advik, basically things we have launched over the last three odd years are the ones which are higher margin projects.
And as and when they come for delivery, you will see better reported margins coming.
Saket Shah
Okay. And in terms of current ongoing projects, do we see any cost overruns and environmental compliance cost or cancellations with respect to any projects and will they affect our further half H2 FY ’25 sales? So…
Varun Gupta
Right now we continue to have a guidance of INR2,000 crores of pre-sales for this year. I don’t know what the future will look like. Things change or events come in, I honestly don’t know, Saket, to comment on the same. From a cost perspective, costs in general have been increasing and will continue to increase because of compliance, environment, and construction costs therefore will go up in that regard. But that said, I expect, even after that, margins to continue to improve because the kind of pricing we have sold some of these units at, I think we’ll have good margins FY ’26 onwards.
Saket Shah
Okay. Thank you. Thank you.
Varun Gupta
Thank you.
Operator
Thank you very much. The next question is from the line of Saurabh Goel from R Systems. Please go ahead.
Saurabh Goel
Hi. Thank you very much, ma’am. Hello, sir. I had a question related to profitability. However, I already got the answer from Himanshu’s questions. But still, I have a question related to profit margin. So how much profit margin we are expecting for upcoming years ’25, ’26, and ’27, if we are talking about some estimation?
Varun Gupta
Okay. So in FY ’26, we should hit low-teens, okay, or maybe 12% plus to — 12% to 13%. And FY ’27 onwards, I would expect to have 20% net profit margins.
Saurabh Goel
That’s really great, sir. Thank you very much, sir.
Varun Gupta
Yeah, so we see two things are happening. Degree of operating leverage is going to come into play as you can see the expected revenues are increasing at a different level. So fixed costs will get spread over sort of a much higher revenue base. And secondly, as I said earlier, the projects which have launched — we have launched in the last three years, pricing has been on the upswing. So you will see gross profit margin expansion as well at the project level. Both in that combination will lead to improved margins.
Saurabh Goel
That’s nice to know, sir. And it means profit margin will be double from 9% to 20% — up to 20% in 2026, right — sorry, in ’27, right?
Varun Gupta
’27. So ’26 should be according to me around 12% to 13% is what I would expect FY ’26 profit margin.
Saurabh Goel
Thanks a lot, sir, for your answer. That’s nice.
Varun Gupta
Thank you.
Operator
Thank you very much. The next question is from the line of Shivam Prashar who is an individual investor. Please go ahead.
Shivam Prashar
Yeah, thanks for the opportunity. Sir, any price band that you have decided for the Amarah Phase 5 right now?
Varun Gupta
Shivam, no, we haven’t decided the exact Amarah Phase 5 price bracket yet. Again, that will be done closer to the launch time. In Gurgaon and any project right now, the market is such that all pricing decisions are made like four, five days, five weeks, maybe two weeks prior to launch, that kind of a thing.
Shivam Prashar
Okay. And any — like can you just tell like why the Bangalore launch takes 18 months from now? And also that when are you expecting the Sector 80 launch in Gurgaon?
Varun Gupta
So, Sector 80, I would expect either in the first quarter or the second quarter of the next financial year. So, Sector 80 we have sort of now gotten some clearances, some clearances are going on. And Bangalore will just take longer because we don’t know the city, yeah. So we don’t know the approval methodology, we will take longer to set up a team, we will take longer to set up a show flat and a sales office and do all of that. It just take — it will take six months more than what usually would take four months more than what usually it would take.
Shivam Prashar
And any other city also you’re exploring?
Varun Gupta
No, nothing else. Nothing outside of Bangalore that we are — it’s a new city we are exploring. Panvel we are looking at, but we see it more as an extension of Talegaon already where we are servicing Bombay with senior living.
Shivam Prashar
Okay, okay, okay. Thank you.
Varun Gupta
Thank you. Thank you.
Operator
Thank you very much. The next question is from the line of Rishi Singhal [Phonetic] who is an individual investor. Please go ahead. Mr. Rishi, your line has been unmuted. Please proceed with your question.
Rishi Singhal
[Foreign Speech]
Varun Gupta
[Foreign Speech]
Rishi Singhal
[Foreign Speech]
Varun Gupta
[Foreign Speech]
Rishi Singhal
[Foreign Speech]
Varun Gupta
[Foreign Speech]
Rishi Singhal
[Foreign Speech]
Varun Gupta
[Foreign Speech]
Rishi Singhal
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Varun Gupta
[Foreign Speech] miniscule in terms of impact to the balance sheet in terms of rupee value.
Rishi Singhal
People are living there, right?
Varun Gupta
People are living there. Correct. They are living there and they’re living there happily [Foreign Speech]
Rishi Singhal
[Foreign Speech]
Varun Gupta
[Foreign Speech] I agree with that. That’s the worst-case scenario. We are looking for some other solutions which can be easier on the management bandwidth. [Foreign Speech]
Rishi Singhal
[Foreign Speech]
Varun Gupta
[Foreign Speech], go ahead, please.
Rishi Singhal
[Foreign Speech]
Varun Gupta
[Foreign Speech] They don’t have the budget really to finance it and acquire it. [Foreign Speech]
Rishi Singhal
They want to make a housing colony out of there? [Foreign Speech]
Varun Gupta
[Foreign Speech]
Rishi Singhal
[Foreign Speech]
Varun Gupta
[Foreign Speech]. So we will — project to project, market to market, we’ll make decisions as in they fit the bill of our risk appetite, our return requirements, and then the way we operate. [Foreign Speech]
Rishi Singhal
[Foreign Speech]
Varun Gupta
[Foreign Speech] But I think the Gurgaon land markets will also sort of taper off a little bit. [Foreign Speech]
Rishi Singhal
So, just for example, [Foreign Speech]
Varun Gupta
[Foreign Speech]
Rishi Singhal
Okay, okay, okay. That’s very good to hear. [Foreign Speech]. In general, long-term [Foreign Speech] Is anything new, what you’re thinking? [Foreign Speech]
Varun Gupta
[Foreign Speech] we are not seeing anything outside of senior living. The other thing is, though, as we get scale in a few more markets than just sort of Jaipur earlier — on Bhiwadi earlier, I think what will happen is different markets will be in different stages of a cycle at different moments of time. So it will bring some stability in that nature. So I hope that also happens as we go along.
Right now I hear some relatives of mine telling me [Foreign Speech]. I think one of the other things, that India will not have one sort of continuous real estate cycle across all markets across all regions at the same time. So that will bring some stability as well, that we will be participate across a few miles [Phonetic].
Rishi Singhal
[Foreign Speech]
Varun Gupta
[Foreign Speech] But that would be good. [Foreign Speech]
Rishi Singhal
[Foreign Speech]
Varun Gupta
[Foreign Speech] over the last 12, 24 months. Do we see a lot of supply coming into the market?
Rishi Singhal
[Foreign Speech] Okay, thank you.
Varun Gupta
That’s the other thing, Rishi. Thank you, Rishi.
Rishi Singhal
Okay, thank you.
Operator
Thank you very much. [Operator Instructions] The next question is from the line of Saket Shah, who is an individual investor. Please go ahead.
Saket Shah
Hello?
Varun Gupta
Yeah.
Saket Shah
Yeah, I just wanted to ask one question. So — one or two questions. How we see the FY ’25 revenue total — on totality basis and at what percentage it would be rising for FY ’26 and ’27 and same way for EBITDA margins?
Varun Gupta
Okay, so do you have slide…
Saket Shah
No, sir. No, I don’t have. Do you have the deck? No, no, I don’t have. That’s why.
Varun Gupta
Okay. So if you look at our deck, Slide 16 of our deck gives you a sense of the expected revenues in each financial year, okay? These are obviously subject to us delivering the projects on time to meet those expectations. So FY ’25 we are looking at probably a total revenue this year, FY 2025, around INR700 crores, INR750 crores, and that rising to probably about INR1,100-odd crores in ’26 and going up to INR1,700 crores in ’27.
And EBITDA, we don’t track as a number. So I don’t know the margins on that. As I said, on a percentage margin, we are looking at about 9% this year, going up to 12%, 13% next year, and then expanding to probably 20% after that. And over the, let’s say, cumulative period of 1st April ’24 to 31st March ’30 where we expect to consume most of our ongoing projects and future projects, these are excluding deals, land deals which have been done in the, let’s say, 12 odd months, whatever we — 1st April, we expect to generate about INR2,000 crores of profits from these projects over this six years. That’s the kind of basic thought process that we have. And average profit margins should be in the high-teens over this life cycle.
Saket Shah
Okay. Yeah. And with respect to inventory, so I guess old hanging inventory is only of Lavasa. So rest all the inventory, whichever is there is of the newly project — newly completed projects. Am I right?
Varun Gupta
There is some inventory left from some other project which is covered in Slide 26 of our deck, again Bhiwadi still contributes majority of this with Ashiana Town and Ashiana Surbhi leading the pack. Of this, Ashiana Town we have been selling consistently well and now we have come down to very — it’s down to 53,000 square foot as compared to I believe 5.5 lakh square foot at one point of time, and should be cleared out in the, let’s say — in the next three, four quarters, we should be able to clear out Ashiana Town. And we’ll pick up Ashiana Surbhi after that to clear out in Bhiwadi.
Saket Shah
Okay, thank you. I have no questions. Thank you very much.
Varun Gupta
Thank you. Thank you, Saket.
Operator
Thank you very much. The next question is from the line of Rishi Singhal who is an individual investor. Please go ahead.
Rishi Singhal
[Foreign Speech]
Varun Gupta
[Foreign Speech] We have seen good volumes in Bhiwadi and I think Bhiwadi will continue to do well for us going into the future. We are finally actually looking at deploying money there also. So we are looking for land in Bhiwadi, we hope to do one — hopefully we’ll do one project there as well, one more land there, and we are excited about Bhiwadi going forward.
Rishi Singhal
[Foreign Speech]
Varun Gupta
[Foreign Speech] I don’t know the exact number, but INR3 crores to INR4 crores.
Rishi Singhal
[Foreign Speech]
Varun Gupta
On a book value basis, yeah.
Rishi Singhal
[Foreign Speech] Okay, that’s it. Thank you very much. Thank you.
Varun Gupta
Thank you, Rishi.
Operator
Thank you very much. As there are no further questions, I would now like to hand the conference over to the management for closing comments.
Vikash Dugar
We would like to thank all of you for being on this call and being so patient with all the questions and answers. If we were unable to take any questions, please feel free to write to us directly or reach out to us directly. And with that, we would like to conclude the call. A lot of the material we have spoken about is posted on our website and you can also email your queries for any further clarification. Thank you once again for taking the time to join us on this call. Thank you.
Operator
[Operator Closing Remarks]