Brigade Enterprises Limited (BRIGADE) Q1 FY23 Earnings Concall Transcript

Brigade Enterprises Limited (NSE:BRIGADE) Q1 FY23 earnings concall dated Nov. 14, 2022

Corporate Participants:

R. Jaishankar — Executive Chairman

Atul Goyal — Chief Financial Officer

Ravi Ahuja — Chief Operating Officer

Pavitra Shankar — Managing Director

Nirupa Shankar — Joint Managing Director

Analysts:

Adhidev Chattopadhyay — ICICI Securities — Analyst

Parikshit Kandpal — HDFC Securities — Analyst

Pritesh Sheth — Motilal Oswal — Analyst

Rakesh Wadhwani — Monarch Networth — Analyst

Dilip Agarwal — Individual Investor — Analyst

Siddhant Dand — Goodwill — Analyst

Parvez Qazi — Edelweiss Securities — Analyst

Biplab Debbarma — Antique Stock Broking — Analyst

Presentation:

Operator

Ladies and gentlemen, good day, and welcome to the Brigade Enterprises Limited Q2 FY ’23 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. [Operator Instructions] Please note that this conference is being recorded.

I now hand the conference over to Mr. M.R. Jaishankar, Executive Chairman. Thank you, and over to you, sir.

R. Jaishankar — Executive Chairman

Good afternoon. It’s my pleasure to welcome you all to the Brigade Enterprises Q2 FY ’23 earnings call. I’m joined by our newly elevated Managing Director, Ms. Pavitra Shankar; and Joint Managing Director, Ms. Nirupa Shankar. Our Executive Director, Mr. Roshin Mathew, the Senior Management team; Amar Mysore, Executive Director; Mr. Atul Goyal, CFO; Mr. Vineet Verma, CEO Hospitality; Mr. Om Prakash, Company Secretary; and Mr. Pradyumna Krishnakumar, Chief Business Development Officer have also joined. We also have Mr. Ravi Ahuja, our newly appointed Office COO. He brings to the table a deep understanding of the commercial office market and joins the team to focus on leasing.

Keeping with overall well thought out succession strategy for the group, we recently announced the internal elevation of Pavitra and Nirupa, as MD and Joint MD respectively. Both have independently played lead roles in the expansion and growth story of Brigade for the last decade or more. With their future-oriented thinking, clear vision, their passion for advanced technologies and sustainable growth, I’m confident Brigade will continue to rise to even greater height under their leadership. I wish them both the very best in their new roles. And I’m confident that they will excel with the support of the executive directors and senior management. As Executive Chairman, I will continue to be closely involved in the company and in its strategic direction.

With regards to the results, I’m happy to report that H1 FY ’23 has been extremely positive with a strong increase across our financial numbers. Our real estate business vertical continues to lead the growth with contributions from all other verticals, including retail and hospitality. We expect to sustain and grow the momentum in the coming quarters with a good pipeline of new residential projects, leading business and continued growth in the hospitality business in H2 FY ’23.

Coming to our Residential segment or Residential business, our Residential segment continues to exhibit a strong track record, with net new bookings of 1.15 million square feet with a value of INR761 crores in Q2 FY ’23. Bouyed by our strong sales performance and pace of construction, the collection trend has also been very healthy with a net value of INR987 crores, which is a 14% increase over the previous quarter.

Overall, for H1, we have increased our net sales by 12%, revenue by 18% and collections by 45% on a year-on-year basis. The reception from customers have been encouraging for our new projects like Emerald Block at Brigade El Dorado, and also Brigade Nanda Heights, located in North and South Bangalore respectively. We had some exciting new projects lined up for Q3, which should carry forward this momentum.

As regards to Office segment, leasing of our Office business was at 0.55 million square feet in Q2 FY ’23, 50% of which was towards our investors share and projects meant for sale. We saw higher demand for our East and North Bangalore office premises. Automobile, IT, flex operators and BFSI sector was seen leasing space last quarter.

Our efforts will be focused on Brigade Senate in Bangalore North, Brigade Tech Gardens and WTC Chennai, Brigade Tech Gardens in Bangalore East and WTC Chennai. We are hopeful that the upcoming days will accruing for development of enterprises and services hub will catalyze our leasing efforts in our SEZs. Collections remained stable at 99%. And outlook for the next quarters look positive, hopefully with our 1 million square feet across all properties.

As regards to retail segment, retail sales consumption showed 38% growth during H1 FY ’23. Footwear, bags and accessories saw a 50% growth over pre-COVID levels, family entertainment saw a 47% increase, F&B saw a 40% increase, electronics saw 36% increase over pre-COVID levels, whereas multiplexes achieved 83% of their pre-COVID sales, new lease rentals saw an average growth of 33% for fresh lease.

Hospitality segment continues to grow with an all-round improvement in our numbers, with both our top line and bottom line registering higher than pre-COVID levels. Our occupancies reached 103% of the pre-COVID performance. Our revenue stretched 121%. And our AGOP, adjusted gross operating profit, reached 143% of the pre-COVID levels for the same period. Even average room rents have shown an upward growth of 12% over the pre-COVID levels. Our primary demand segments such as room, F&B and MICE business continued to grow mostly through domestic channels.

This brings me to the end of our business highlights. Thank you for listening. I now request Atul Goyal, our CFO, to take you through the financial highlights. Take care, and stay safe. Thank you.

Atul Goyal — Chief Financial Officer

Thank you, sir. After business update, which has been put by the Chairman, good afternoon, everybody. On behalf of the company, we would like to welcome you to the earnings call for Q2 FY 2023. So to start with consolidated financial performance for Q2 FY ’23, the consolidated revenue for Q2 FY ’23 stood at INR912 crores versus INR776 crores for the same quarter last financial year, an increase of 18%. The consolidated EBITDA for Q2 FY ’23 stood at INR249 crores versus INR216 crores in Q2 FY ’22, an increase of 16%. EBITDA margin for Q2 stood at 27%. Consolidated PAT stood at INR52 crores, compared to a loss of INR14 crores for the same quarter last financial year. Consolidated PAT after MI stood at INR78 crores, compared to INR12 crores in Q2 FY ’22, an increase by 6 times.

The Real Estate segment clocked the turnover of INR632 crores and EBITDA of 13% in Q2 FY ’23. Real estate corrections for Q2 FY ’23 was INR1,036 crores versus INR881 crores in Q1 FY ’23, an increase of 18%. The leasing segment clocked the turnover of INR489 crores and EBITDA of 72% in Q2 FY ’23. The hospitality segment clocked a turnover of INR91 crores and an EBITDA of 31% in Q2 FY ’23. Overall collection for Q2 FY ’23 was INR1,422 crores versus INR1,210 crores in Q1 FY ’23, an increase of 18%.

With respect to consolidated financials for H1 FY 2023, the consolidated revenue for H1 FY ’22, ’23 stood at INR1,832 crores versus INR1,168 crores in the same half year ending of last financial year, an increase of 57%. The Real Estate segment clocked a turnover of INR1,286 crores and EBITDA of 13% in H1 FY ’23 versus a turnover of INR858 crores and EBITDA of 18% in H1 FY ’22.

Real Estate collection increased by 45% to INR1,917 crores in H1 FY ’23 from INR1,319 crores in FY ’22. The leasing segment clocked a turnover of INR365 crores and EBITDA of 75% in H1 FY ’23 versus a turnover of INR248 crores and EBITDA of 73% in H1 FY ’22. The hospitality segment clocked a turnover of INR181 crores and EBITDA of 32% in H1 FY ’23 versus a turnover of INR61 crores and EBITDA of 7% in H1 FY ’22. The consolidated EBITDA, including other income for H1 FY ’22, ’23 stood at INR500 crores versus INR326 crores in H1 FY ’22, an increase of 49%. EBITDA margin, including other income stood at 27%. Overall collection for H1 FY ’23 was INR2,633 crores versus INR1,654 crores in Q1 FY ’23, an increase of 59%.

Coming to debt position, gross debt of the company stood at INR4,015 crores as on 30 September, 2022. There was a reduction of INR59 crores in real estate debt in Q2 FY ’23, because of good collections and repayments. So reduction in residential debt has continued since last year. The cash and cash equivalent stood at INR1,789 crores as on September 30, 2022. Consequently, the company’s net debt outstanding as on September 30, 2022 is INR2,226 crores, out of which Brigade’s share is INR1,491 crores.

Cash flow from operating activities stood at INR731 crores in H1 FY ’23, as compared to INR369 crores in H1, an increase of 98%. The average cost of debt has increased by 44 bps as compared to increase of repo rate by 190 bps since March ’22. Our debt equity stood at 0.60, lower than last quarter. We have a trade rating of A plus stable, which has been assigned by both CRISIL and ICRA, which will increase lender and investors’ confidence. The company has strong liquidity position and to meet operation and expansion plans.

I now hand over the mic to the moderator for questions. Thank you.

Questions and Answers:

 

Operator

Thank you very much, sir. Thank you. [Operator Instructions] The first question is from the line of Adhidev Chattopadhyay from ICICI Securities. Please go ahead.

Adhidev Chattopadhyay — ICICI Securities — Analyst

Yeah. Good afternoon, everyone. Thank you for the opportunity. Sir, first question is maybe on our leasing pipeline. So we got 1.5 million square feet of vacant space and 1 million square feet of leasing pipeline. So considering what you have mentioned on the DESH Bill, which is awaited, so now when do you expect to now fully lease this out? What is the fresh target? Because I believe, you were earlier looking to do it by March or June of next year. So is there a — is the target remains same or is there any change to that? Thank you. That is the first question.

Ravi Ahuja — Chief Operating Officer

Sure. This is Ravi Ahuja. The target of course remains the same, and we are — while there has been a visible slowdown in the overall market and the DESH Bill is proposed to be tabled in the winter session. Having said that, apart from all this, we are focusing on building a heavy pipeline, about 1 million square feet of pipeline, which is basically here for us to deal with and convert over the next one or two quarters. So we are hopeful that this pipeline will see some conversions going forward in the next 3 months to 4 months.

Adhidev Chattopadhyay — ICICI Securities — Analyst

Sir, you alluded to some significant slowdown in leasing, like you are referring to which period exactly?

Ravi Ahuja — Chief Operating Officer

That is, if you were to refer to the market reports of the IPCs, visibly, if you were to compare quarter two to quarter one of FY ’23, there is a 30% slowdown reported by them. Having said that, we green shooted that there’s a 30% growth when you compare quarter two FY ’22 to quarter two FY ’23, if you compare it with last financial year. So of course, COVID had some ball to play, but that shows a healthy comeback compared to last year. This slowdown of course will be moderated and will pick up given the pipeline which we have. And I’m sure that’s demonstrated by the market sentiments as well.

Adhidev Chattopadhyay — ICICI Securities — Analyst

Okay. Sir, the second question is on the land payments. Obviously, our residential debt has come down quarter-on-quarter. This is a question for Atul. So what would be the expected pending land payment will be during the second half of the year, especially towards the Mount Road, Chennai and KIADB land in Bangalore? And accordingly, how much should the debt or the net debt rather go up by the second half of the year if you factor that in? Thank you.

Atul Goyal — Chief Financial Officer

Yeah. So we have around INR1,000 crores of land used. And I think in next two quarters, we should incur around INR600 crores to INR700 crores, which the land payments will happen. We don’t need to take any debt, because adequate cash is there in the balance sheet. But we’ll see, if required we’ll take, otherwise the cash is there, even QIP cash is there. That will all be used for the repayment — for the payment of the land.

Adhidev Chattopadhyay — ICICI Securities — Analyst

Okay. Sir, just to clarify, this Mount Road channel be fully paid and we can look forward to allot some time towards the end of this year, or that is going to be done in tranches?

Atul Goyal — Chief Financial Officer

No. So I think by Q4 we’ll pay Mount Road. The approvals are also going on parallelly. And we are targeting — so we are targeting in four quarters we should launch this. Of course, residential will be launched first.

Adhidev Chattopadhyay — ICICI Securities — Analyst

So sir, the exact — the launch will happen in second half FY ’24. Is it correct way of assessing?

Atul Goyal — Chief Financial Officer

I’ll let Pavitra answer.

Pavitra Shankar — Managing Director

Yeah. So as Atul mentioned, Mount Road will be a mixed-use project. We’re going to lead with the residential portion, which is around 60% of the total 1 million square feet that we are aiming to build. We are in the process of design and approvals that generally takes a little of time in Chennai. So we are anticipating in the — it’s actually part of our next rolling four quarters estimate of when it will launch. So potentially in Q2 of FY ’24 is what we’re looking at.

Adhidev Chattopadhyay — ICICI Securities — Analyst

Okay. Second quarter FY ’24, did I hear it correctly?

Pavitra Shankar — Managing Director

Yeah, yeah, yeah, yeah.

Adhidev Chattopadhyay — ICICI Securities — Analyst

Okay, fine. Fine. I will come back in the queue with more questions. Thank you.

Operator

Thank you. The next question is from the line of Parikshit Kandpal from HDFC Securities. Please go ahead.

Parikshit Kandpal — HDFC Securities — Analyst

Yeah. Hello. Hi team for the good quarter. So my first question is, sir, if I see the launches, hardly about 2 million square feet of launches have happened in the first half and almost more than 50% is from the existing projects, new phases. We have a very strong pipeline of 15 million square feet in the second half. So if I have to look this in the perspective that first half could be largely driven by sustained sales, if you can give some of the granularity on the second half launches, especially the big ones, that will be helpful?

Pavitra Shankar — Managing Director

Sure. So let me just give some context. At the beginning of the financial year, we had basically indicated around 10 million square feet of launches, 8 million of which was from residential. As you indicated and as we have done in Q1 and Q2, 2 million of that is already launched. Of the remaining 6 million, 2 million of that is plotted development. We have good visibility for that to happen in Q3. And mostly Q3, those launches should be happening. The remaining project will also come into Q4.

So we actually have pretty good confidence that most of the large projects that we were expecting to happen this financial year will happen. Some of it which we had liked to see in Q3, it is [Technical Issues] with, say, the final RERA approval, but they’re all in a [Technical Issues] in terms of the design approvals on that front. So we’re pushing very hard. And we believe we should be reaching what we had mentioned in terms of the overall launch plan for this financial year. Now every quarter, we give a rolling four quarters [Technical Issues] So now in this quarter, as we’ve seen it increased to 13, because we’ve included some of the additional launches that we expect in Chennai coming up in Q1 and Q2 of FY ’24.

Parikshit Kandpal — HDFC Securities — Analyst

Okay. And my second question is on the INR1,000 crores, as Atul mentioned, needs to be made towards the land payment. So is the potential gross development value added in this 15 million square feet or this will be over and above that?

Atul Goyal — Chief Financial Officer

It will be above.

Pavitra Shankar — Managing Director

Yeah, it will be over and above that, because the land bank, that INR1,000 crores remaining to be paid, that is not all going to be launched within the next four quarters. So it is over the span of the next — we usually have like a five year look out. So a lot of that is not necessarily going to be launched right away. So the timing also of the payments will go accordingly.

Parikshit Kandpal — HDFC Securities — Analyst

This INR1,000 crores of land, the large part of that would be the Mount Road, right? I think more than INR500 crores alone will be from Mount Road?

Pavitra Shankar — Managing Director

Yeah, the Mount Road is a big portion of it.

Atul Goyal — Chief Financial Officer

Yeah. So it is a big portion, but definitely, we have also paid around INR100 crores already in the Mount Road. So it will be INR400 crores, but let — there are a lot of JDAs which are there, for which we’ll make the payment for INR1,000 crores. So, as and when other purchases of the land will come, it will get added to that.

Parikshit Kandpal — HDFC Securities — Analyst

My question was, Atul, that how much of gross development value we have added. So if I understand correctly, about 1 million square feet will be coming from Mount Road and half of that will be residential?

Atul Goyal — Chief Financial Officer

Okay, I got it.

Pavitra Shankar — Managing Director

Yeah. So let me answer that. Basically, for the pipeline that we have for the next four quarters, we’re looking at around — we have said we would launch around 13 million, so around 15 million or so total project value. Of course, some of it will be phased in terms of the launch. So which is why I’m telling you the GDV will be around 15 million.

Atul Goyal — Chief Financial Officer

Yeah. So for land bank, it will be around 4.5 to 5 and 13 what we are launching.

Parikshit Kandpal — HDFC Securities — Analyst

So this INR1,000 crores will have about 4.5 million to 5 million square feet of sellable area. And in terms of GDV, this will be how much, like INR3,000 crores plus?

Atul Goyal — Chief Financial Officer

This — it will be INR3,000 crores, you’re right.

Parikshit Kandpal — HDFC Securities — Analyst

Okay. Got it. And my last question is on commercial pipeline. So now the thing is this SEZ leasing. So is it contingent on DESH Bill, this 0.85 million which is residual in Tech Gardens? It is largely contingent on the DESH Bill or besides that we also have a back-up plan of leaving it out over the next 3 months, 4 months?

Ravi Ahuja — Chief Operating Officer

Hi. This is Ravi again. So clearly, this is not contingent on the DESH Bill. We already have a pipeline today, which is not relying on the DESH Bill. Should the DESH Bill happen, I think the traction will only improve and incrementally from here.

Parikshit Kandpal — HDFC Securities — Analyst

Okay. And just the last one if I may squeeze in on the total business development. So what was the total gross development value added in the first half? And in the second half, how much you are looking to add?

Pavitra Shankar — Managing Director

So in the land bank or what we have launched?

Parikshit Kandpal — HDFC Securities — Analyst

No, no. Pavitra, I’m asking how much is the new land tie-ups or JDA JVs outright, which we have done in the first half? And how much you’re targeting as a year as a whole to build our land business pipeline? So I wanted the gross development value of that.

Pavitra Shankar — Managing Director

All right. That value, I’ll have to get back. But recently, we have just added [Technical Issues] around 3 million to 4 million square feet in the last two quarters in terms of new projects.

Parikshit Kandpal — HDFC Securities — Analyst

Okay. Got it. And the similar number you’re looking for the second half?

Pavitra Shankar — Managing Director

See we have a number of things working on it right now. When we are able to disclose, we will be able to let you know.

Parikshit Kandpal — HDFC Securities — Analyst

Okay, Pavitra. Thank you. Those were my questions.

Operator

Thank you. The next question is from the line of Pritesh Sheth from Motilal Oswal. Please go ahead.

Pritesh Sheth — Motilal Oswal — Analyst

Hi. Thanks for the opportunity. Firstly, congrats to Pavitra and Nirupa on the elevation of respective roles. My question is firstly on Twin Towers. We have seen a muted spending for those. Since now we have a clear leasing pipeline, what is the expected timeline that we could complete this project?

Nirupa Shankar — Joint Managing Director

This is Nirupa here. I’ll just take that question. So we are expecting to complete it by — in the next year or so. So by January or March 2024 is when we’re planning to complete it.

Pritesh Sheth — Motilal Oswal — Analyst

Okay. Got it. And secondly, in terms of residential margins which have been tepid since last two, three quarters, obviously, I can understand the timing and maybe your related key projects that might have started recognition. But what is the trajectory that we expect going forward? Should we expect to get back to that 18%, 20% margin that we used to generate anytime near soon?

Atul Goyal — Chief Financial Officer

So I’d just like to clarify, revenue is going as per AS 115. Overall, it is — sales is around INR800 crores and our revenue recognition [Technical Issues] crores. So if you take gross profit of around 20% — 25% and if you convert it into a INR800 crores of revenue on rolling quarter, it will come to around 20%. So that is a difference, because we are not able to realize the revenue as AS 115 based on what we are doing the actual sales — pre-sales actually.

Pritesh Sheth — Motilal Oswal — Analyst

Sir, so this should continue probably for next two, three quarters and after that we’ll start recognizing whatever we have sold in the last couple of years?

Pavitra Shankar — Managing Director

So there are two projects which will start coming up for handover and revenue recognition. Those are two of the blocks in Brigade Cornerstone Utopia and two more blocks in Brigade El Dorado. So we see an increased revenue recognition over the next — potentially next two to three quarters, we should be able to see that coming.

Pritesh Sheth — Motilal Oswal — Analyst

Sure. Got it. Very much clear. And lastly, just the break-up of collections, if you can provide across residential, commercial, leasing and hospitality?

Atul Goyal — Chief Financial Officer

So you want for Q2 or H1?

Pritesh Sheth — Motilal Oswal — Analyst

For Q2.

Atul Goyal — Chief Financial Officer

Q2 residential is INR987 crores. Commercial sale is INR49 crores. Lease — commercial lease is INR150 crores. Retail is INR52 crores. Hospitality, INR119 crores. And maintenance PMS, which is INR66 crores. Total is INR1,422 crores.

Pritesh Sheth — Motilal Oswal — Analyst

Sure. Got it. Thanks. All the best.

Atul Goyal — Chief Financial Officer

Thank you.

Operator

Thank you. The next question is from the line of Rakesh Wadhwani from Monarch Networth. Please go ahead.

Rakesh Wadhwani — Monarch Networth — Analyst

Hi. Thank you for the opportunity. Sir, I have one data point question. In commercial leasing business, you provided a P&L separately. The EBITDA margin has come down from 75% to 72%. Any particular reason, because the leasing has increased, I think EBITDA margin would increase?

Atul Goyal — Chief Financial Officer

So yeah, it is a combination of — see, three revenue stream goes into our leasing business; one is office, one is retail and one is PMS, which is our maintenance business. So there has been some waving of margins in maintenance business, because of which it has increased. Leasing business margins have been intact. So we have taken in tandem also one of the associate company also now. So we are now overall — we are overhauling and we are trying to improve its performance also. So that’s a difference. But over the quarters, you will see that it will earn out at 75%.

Rakesh Wadhwani — Monarch Networth — Analyst

Okay, okay. Thank you. And sir, second question on the residential part. You have given a guidance of 12 million to 15 million new launches coming in the next 12 months. This is very, very good and encouraging. Just want to understand from the long-term perspective, what is the pipeline that you want to launch every year? I do not want a particular number, but what is the management thought process? Because the more the inventory we have, the chances of more selling. Our competitors are also coming up with more launches. So just wondered your thought process on that?

Pavitra Shankar — Managing Director

Yeah, hi. Thank you. Yes, we do have an aggressive pipeline [Technical Issues] visibility for it over the next four quarters. We intend to keep growing at the pace of 15% to 20% is what we’ve always communicated. Given the headwinds — sorry, the tailwinds for the residential sector, as we can see so far [Technical Issues] we’re confident that this is possible and feasible with our land bank. While certain projects move from the land bank into the pipeline and then [Technical Issues] looking at adding new projects. Chennai has also been a very good market for us. We are looking to make it a very strong second market to Bangalore. And as we’ve communicated earlier, our focus is going to [Technical Issues] market. So given all of this, we plan to basically cement our leadership position in these three markets in South India and focus on residential, plus supported by smaller markets where we have a presence like Mysore.

Rakesh Wadhwani — Monarch Networth — Analyst

So just one, just reiterating your point. Can we assume 10 million to 12 million new launches in the coming years also, not for the one — next year one year? Do we have that much pipeline with us?

Pavitra Shankar — Managing Director

So as I mentioned the numbers earlier, we have around 13 million over the next four quarters on a rolling basis. So of the 13 million, 2 million of that is from [Technical Issues] and the rest is from residential.

Rakesh Wadhwani — Monarch Networth — Analyst

Okay, okay. Thank you. That was from my side. Thank you.

Operator

Thank you. The next question is from the line of Dilip Agarwal, an Individual Investor. Please go ahead.

Dilip Agarwal — Individual Investor — Analyst

Yeah, hi. Thank you for the opportunity. My question was similar which was already asked around the EBITDA margin on the residential space, which is, if I see the historical investor presentations, just talking about 20% in FY ’20, which has now gone to 13%, but that was answered by Atul. Thanks.

Pavitra Shankar — Managing Director

Sorry, I just want to clarify on the previous question. It is actually 13 million for residential only, plus 2 million for the commercial. So the 15 million outlook for the next four quarters.

Operator

Mr. Dilip Agarwal, you can go ahead with your question, please.

Dilip Agarwal — Individual Investor — Analyst

Yeah, yeah. My question was already answered, because it was similar to this EBITDA margin of 13%, which is coming in the real estate.

Operator

Thank you. The next question is from the line of Siddhant Dand from Goodwill. Please go ahead.

Siddhant Dand — Goodwill — Analyst

Yeah, hi. Thank you. Hello? Can you hear me?

R. Jaishankar — Executive Chairman

Yeah. Your voice is not clear.

Siddhant Dand — Goodwill — Analyst

Yeah, hi. You said you commented that you still have some QIP cash available. So my understanding was, why did you dilute equity at this lower valuations instead of monetizing our hotel and office assets? And clearly, office asset deals were happening at that time. Just wanted to comment around that. And future strategy regarding equity dilution?

Pavitra Shankar — Managing Director

Sure, sure. So while it is tough to sort of [Technical Issues] how it was maybe four to six quarters ago, at that point in time, the outlook for office, retail and hospitality was quite poor. And we strongly believe in the quality of our portfolio and we did not want to dilute at that stage. So at the time, we took a call to basically do an equity dilution. Of course, till then the stock has done extremely well. So that’s been a great thing for our investors. But that’s basically why we did not want to actually dilute in terms of the asset portfolio itself, since we were not in a market to look for any kind of distressed valuation.

Siddhant Dand — Goodwill — Analyst

Okay. And what’s the future strategy regarding equity valuation or something you’re not looking at it any time in the medium or long-term?

Pavitra Shankar — Managing Director

[Speech Overlap] No.

Siddhant Dand — Goodwill — Analyst

Okay. Thank you.

Operator

Thank you. The next question is from the line of Parvez Qazi from Edelweiss Securities. Please go ahead.

Parvez Qazi — Edelweiss Securities — Analyst

Yeah. Thanks for taking my questions. So a couple of questions from my side. First to Pavitra. What is the outlook on the housing demand side? Have we seen any impact of the increase in mortgage rates or the — talk about the slowdown that we are seeing on the tech sector as far as housing demand is concerned?

Pavitra Shankar — Managing Director

Yeah. Hi, Parvez. So far, actually, we’ve not seen any real impact. Even though the interest rates have been increasing, we haven’t seen that impact the number of people who come forward for mortgages as well. Roughly that’s been around 55% to 60% of our customers who tend to opt for home loans. So we haven’t seen really a drop off in terms of how many of those customers actually ask for the sanction letters and so on.

I think it’s because historically speaking, these are still decent rates. I think, maybe we’re all pegged to what was the historical low in the past two years. But relatively speaking, it’s still a decent rate. In fact, in 2019, ’18 and earlier, the rates were more like 9% to 11% and those were the years where we did some of our best numbers prior to COVID. So I don’t think this is going to impact.

That said, we’re keeping a close eye on it in terms of our future pipeline, in terms of sizing, how we want to size things, how we want to price and keep an eye in terms of how ticket prices may also increase and affordability. So we are keeping an eye overall in terms of being flexible in terms of what the portfolio is going to be going forward. Yes, most of our customers come from the IT sector and related sector [Technical Issues] in the markets of Bangalore, Chennai, Hyderabad, there does not seem to be any impact at all or any reduction in not just the bookings, but also in the flow of walk-ins and inquiries happening digitally.

Parvez Qazi — Edelweiss Securities — Analyst

Sure. And what in your view would be the outlook on the pricing side? I mean, I know we had taken two rounds of price hikes over the last one year, but how do you see things pan out in future?

Pavitra Shankar — Managing Director

I think, we are in a position to continually drive the pricing. What we’ve learned over the past few years is that the consolidation has allowed good brands to actually be aggressive with their pricing, also because this is — markets where we operate, they are generally not a market where there is huge margins. So we do need to try to look at pricing and see wherever we can push it up where the market is going to allow that to happen. I think the strength of the brand, the ability to deliver quality and on time and also figure out what the customer is looking for is what has helped Brigade in the past. So we will look at continually trying to push the pricing and of course, look at ways in which we can keep costs under control as well.

Parvez Qazi — Edelweiss Securities — Analyst

And a couple of data-specific questions for Atul. Sir, first, what was the rental contribution from VTG and WTC this quarter?

Atul Goyal — Chief Financial Officer

This quarter from BPPL that is Tech Gardens was INR36 crores and revenue from the WTC Chennai was INR32 crores.

Parvez Qazi — Edelweiss Securities — Analyst

And what could have been the contribution, I mean, a ballpark that would suffice to pre-sales from our launches during this quarter?

Atul Goyal — Chief Financial Officer

I couldn’t get you.

Parvez Qazi — Edelweiss Securities — Analyst

What was the contribution of launches to pre-sales this quarter? I mean, the projects which were — four projects that we launched this quarter, how much did they contribute to pre-sales?

Pavitra Shankar — Managing Director

Yeah. So in terms of how much the new launches contributed, it was around 50%.

Parvez Qazi — Edelweiss Securities — Analyst

Sure. And lastly, what would have been the non-Bangalore sale this quarter?

Pavitra Shankar — Managing Director

Sorry, the non?

Parvez Qazi — Edelweiss Securities — Analyst

Non-Bangalore.

Pavitra Shankar — Managing Director

Non-Bangalore. So over the last couple of quarters, it’s reduced. This last quarter, it’s around 80% from Bangalore. Again, this should increase as our launches from Chennai start to pick up and some of the launches we have planned for the Hyderabad as well.

Parvez Qazi — Edelweiss Securities — Analyst

Thanks, and all the best, team.

Pavitra Shankar — Managing Director

Thank you.

Atul Goyal — Chief Financial Officer

Thank you, Parvez.

Operator

Thank you. The next question is from the line of Biplab Debbarma from Antique Stock Broking. Please go ahead.

Biplab Debbarma — Antique Stock Broking — Analyst

Good afternoon to everyone, and congratulations to Pavitra and Nirupa. So my first question is on the DESH Bill. Sir, just briefly, what’s the DESH Bill? And how it’s going to help Brigade Office portfolio?

Atul Goyal — Chief Financial Officer

So see, this is a bill where government is trying to enable the SEZ to utilize some of the spaces at non-SEZ where they are asking that, okay, you can lease some of the spaces without having a net foreign exchange under and without reversing your GST or other benefits which you have used. Yes, of course, there will be some equalization levy, which government has put. So we are waiting for that.

So right now, if you have to convert an SEZ into non-SEZ, you have to de-market that property separately. And of course, you have to return all the GST or the benefits — other benefits which you have taken. So this is a DESH Bill. And they are tabling in this winter session. If it happens, it will definitely help SEZ all over India, because then they can partially do SEZ, as well as a non-SEZ.

Biplab Debbarma — Antique Stock Broking — Analyst

Okay. Thank you. Thank you, sir, for that. Second question is on your commentary — in one of the commentary you mentioned that there is a bit of slowdown in office space overall based on the IPC reports. But in previous experience, did you see any slowdown or kind of interest going down or kind of timeline of negotiation getting stretched? How is your experience in terms of inquiry and pipeline in Northeast? Do you see any change — stable change in the last, say, one, two quarters, [Indecipherable] clients are inordinately delaying the negotiations or the interest has gone down or their negotiation is hard on the rental? Any change in client attitude?

Atul Goyal — Chief Financial Officer

Yeah. So the numbers with us in quarter one and quarter two do show a slight slowdown impact even for our transactions, but they’re not due to any transaction falling through, it is postponement of decision primarily. And therefore, we are hopeful that given the delay in quarter two booking of these deals, deals will essentially happen before the H2 ’23. Having said that, just to point out the answer to your question, there has been a small visible slowdown. Our quarter 1, we reported 400,000 square feet of office take-up, while quarter 2, we’ve reported close to 300,000 square feet of office take-up.

Biplab Debbarma — Antique Stock Broking — Analyst

Okay, okay, okay. And one final question if I may. There are a few big players, which are entering Bangalore market and also existing non-Bangalore players are increasing their footprint, so yes, the market is very robust, I know. But with the change in competitive landscape, how do you see in terms of supply? Now many people would be chasing the same deal, maybe many people are chasing a few deals and buyers have lot of choices. So sir, in the changing competitive environment, definitely, Bangalore is a good market, do you — have you seen any perceptible change? Any increase in competition in terms of customers or in terms of deals? Have you seen anything on the ground, sir? That’s my final question.

Pavitra Shankar — Managing Director

Yeah. Certainly, it’s getting more competitive, obviously, because Bangalore is a good market. Those who do not have a presence in Bangalore, look to it as maybe a potential driver for their own portfolio. Brigade, of course, has always maintained a leadership position. We’ve grown it over the past 36 years. And it is our top market and we intend to maintain our leadership position.

In terms of looking at land, it is more competitive. But that said, there are still only very few [Technical Issues] actually do outright purchases, who can actually close deals [Technical Issues] the way we would. I would say, we continue to be very selective in terms of the kind of deals that Brigade closes. Number 1, we are extremely focused on the quality of titles, the location, the quality of our [Technical Issues] most important. So while there is competition and maybe other deals out there, it’s very [Technical Issues] the kind of new lands that we will take up. So I think this is something [Technical Issues] and in future, it will actually the kind of projects that we take up and the timeframe in which we can deliver without any issues to the customer.

Biplab Debbarma — Antique Stock Broking — Analyst

Thank you. Thank you. That’s all.

Operator

Thank you. The next question is from the line of Rakesh Wadhwani from Monarch Networth. Please go ahead.

Rakesh Wadhwani — Monarch Networth — Analyst

Hi. Thank you. Thank you for the follow-up opportunity. I have one question regarding the leasing. So in the last quarter, we have given a guidance that we will be reaching the 100% or 95% of the occupancy in the next 12 months. Are we — do you think we will be able to do this?

Ravi Ahuja — Chief Operating Officer

Yes. As suggested earlier, our target doesn’t change. The slowdown that we spoke about is hopefully going to culminate into these postponed deals which were not falling through. And should they culminate, we will certainly be on target.

Rakesh Wadhwani — Monarch Networth — Analyst

Okay. Thank you. And sir, one last question. Any update on the hotel portfolio? There was a discussion that you — that the company might sell a stake in that. Sir, just wanted to understand the strategy. What is the like view of the management? Whether they will be selling the majority stake or the 25%, 40% stake? And what — the fines will be used in that business or they will be used in the Hospitality business? Thank you.

Nirupa Shankar — Joint Managing Director

Nirupa here. I’ll take that. So basically, maybe prior to COVID, we were in a very close discussion to close a private equity partner. But of course, both COVID and during COVID things changed. Now again, the hotel business has started to do very well. And it is not a bad time to restart some of the discussions. So we are — there are a couple of discussions and interest levels coming in. We’re at preliminary stage, so I don’t want to — can’t report anything much. But now since the hotels have started to do well and they have related to do well, unless of course there is some major macroeconomic issue, we think it’s a good time to actually start discussions again. If we do sort of find an equity partner then some of the funds will remain with the BHVL company, so that we can grow the business. And partially, we might have a primary and a secondary component to whatever investments we get.

Rakesh Wadhwani — Monarch Networth — Analyst

Okay. That was very helpful, ma’am. Thank you.

Nirupa Shankar — Joint Managing Director

Thank you.

Operator

Thank you. [Operator Instructions] The next question is from the line of Adhidev Chattopadhyay from ICICI Securities. Please go ahead.

Adhidev Chattopadhyay — ICICI Securities — Analyst

Yeah. Thanks for taking my follow-up. The first question is on our residential sales guidance for this year. Sir, earlier you mentioned that we could do up to INR4,000 crores on the higher side. So any update on that? Any fresh numbers or does that remain intact?

Pavitra Shankar — Managing Director

Yeah, no fresh number. I think, we’ll stick with that as the higher side. And low front — low side that [Technical Issues]

Operator

Excuse me, this is the operator. Mr. Chattopadhyay, there is some disturbance from your line. Can you please check? Please go ahead now.

Adhidev Chattopadhyay — ICICI Securities — Analyst

Yeah. I think the lower end around INR3,500 crores for the year?

Pavitra Shankar — Managing Director

Yeah, that should be okay [Technical Issues]

Adhidev Chattopadhyay — ICICI Securities — Analyst

Looking at the hotels, now we have seen that hotel doing quite well, almost INR60 crores of EBITDA in the first half. And considering that many of the newer hotels are opened just prior to COVID, so over the medium term, what do you think is the EBITDA potential for your hotel portfolio, let say, maybe a couple of years out once all the new hotels — newer hotels have also stabilized their operations? Thank you.

Atul Goyal — Chief Financial Officer

Yeah. So I think the EBITDA potential for all the hotels when they stabilize should be in the range of INR175 crores to INR200 crores going forward. We are — this year, we may close EBITDA number, we are not supposed to give guidance, but it can — it will be a very healthy EBITDA with a healthy PBT this year.

Adhidev Chattopadhyay — ICICI Securities — Analyst

To go with that? Hello?

Operator

Mr. Chattopadhyay, you’re cutting off. Can you please check your line and then repeat your question?

Adhidev Chattopadhyay — ICICI Securities — Analyst

Hello?

Operator

Sir, we request you to please rejoin the queue. We are unable to hear you clearly. [Operator Instructions] The next question is from the line of Pritesh Sheth from Motilal Oswal. Please go ahead.

Pritesh Sheth — Motilal Oswal — Analyst

Hi. Thanks for the follow-up opportunity. Just one question on the launches that we are planning for second half, that is 2 million square feet plotted land other 4 million square feet from your Residential segment. What should be the gross development value of those launches that we are starting?

Pavitra Shankar — Managing Director

Just one second.

Pritesh Sheth — Motilal Oswal — Analyst

Sure.

Pavitra Shankar — Managing Director

Yeah. If I’m looking at the entire project value, around INR3,600 crores. Of course, when we launch the project, it could be done in phases, RERA phases as well. But mostly, we have the full sanctions and everything. So beyond that, we don’t expect any delay in further phase launches. So around INR3,600 crores to INR3,900 crores.

Pritesh Sheth — Motilal Oswal — Analyst

Okay. And that will be released at probably one go, right, as you are saying?

Pavitra Shankar — Managing Director

No. Like I said, a couple of the launches while we — they are fresh launches and they are not new phases and existing township projects. So for those, we would be phasing them out as well.

Pritesh Sheth — Motilal Oswal — Analyst

Okay. Yeah. Thank you. That’s it from my side.

Pavitra Shankar — Managing Director

What I am saying is there is no approval risk for that matter. Once it gets launched, there is no approval risk for subsequent RERA phases.

Pritesh Sheth — Motilal Oswal — Analyst

Sure, sure, sure. Thanks. That’s it from my side.

Operator

Thank you. [Operator Instructions] The next question is from the line of Biplab Debbarma from Antique Stockbroking. Please go ahead.

Biplab Debbarma — Antique Stock Broking — Analyst

Ma’am just two questions. One is, in the next four quarters, you mentioned 13.5 million square feet. Are these new acquisitions including Mount Road project included in that 13.5 million square feet or this new acquisition would be incremental to that 13.5 million square feet?

Pavitra Shankar — Managing Director

Yeah. So as I said, it’s actually 15 million total, 13.5 million was for residential. In the residential, we are looking at launches of Chennai projects to come in towards the last — towards basically mid of FY ’24. So we are giving a rolling four quarters projection, which means the Mount Road project will most likely come into Q2 of FY ’24. That’s sort of what we’re aiming at right now.

Biplab Debbarma — Antique Stock Broking — Analyst

That means it has been included. Second thing is about your Chennai portfolio. You have a pipeline and you said that non-Bangalore portfolio would increase as well. Just trying to understand Chennai market. My — our understanding is Chennai market is kind of segment market, but you have been doing very well in Chennai. So can you give us some insight how is the money? Is it the market growing or you are doing well within that market, you are increasing the market share? How is the markets which is seeing rebound as we have seen strong momentum in other key markets of India?

Pavitra Shankar — Managing Director

Yeah. So I’ll say it’s a bit of both. Yes, Chennai did seem to be a little slow. Back in 2016, ’17, when we had launched our first township project, Brigade Xanadu there, we actually found it a little slow in terms of uptake from buyers. But that said, during COVID and beyond, once we started launching next phases of Brigade Xanadu, once we launched our residences at the World Trade Center Chennai project, we actually saw a dramatic improvement in terms of absorption in the Chennai residential market. I think it’s due to a couple of things. One is, of course, the quality of Brigade as a brand, our ability to show our strength in terms of mixed-use and residential township development, which is why both this [Technical Issues] extremely well.

The second is that Chennai market itself, I would say, does not have local players. While there are some, there aren’t as many local players who are scaled up as much as say other market entrants like Brigade into the market. So we have actually seen a lot of opportunity in the Chennai market as a result and we’ve continued to acquire new land parcels in Chennai, both JDA and outright. And then the areas that are doing well are actually where we are located, which is West Mogappair, Old Mahabalipuram Road. And we continue to look for good land parcels in these areas and beyond.

Biplab Debbarma — Antique Stock Broking — Analyst

Thank you, ma’am.

Operator

Thank you. Ladies and gentlemen, we’ll take the last question for today from the line of Parikshit Kandpal from HDFC Securities. Please go ahead.

Parikshit Kandpal — HDFC Securities — Analyst

Right. Thanks for the follow-up. So firstly, I wanted to just focus on the Mount Road project. So how will be the structure now? So you did mention that revenue will be far. So how much is the total residential development and gross development value and what will be the commercial portion?

Pavitra Shankar — Managing Director

So as of now, we are looking at the total development size of 1 million square feet. We are planning for 60%, around [Technical Issues] 60% to be residential and the remainder will be office and retail.

Parikshit Kandpal — HDFC Securities — Analyst

And this 60% will be having how much? Like 0.5 million will it be like INR1,000 crores of gross development value or I think last time you mentioned about INR1,500 crores, if I remember correctly?

Pavitra Shankar — Managing Director

Yeah. About INR1,500 crores of GDV for the residential side.

Parikshit Kandpal — HDFC Securities — Analyst

Okay. Thank you, Pavitra and congratulations. Sorry I missed that, on your elevation. I hope Brigade goes to newer heights under your leadership. Thank you.

Pavitra Shankar — Managing Director

Thank you so much. Thanks.

Operator

Thank you. With this, I now hand the conference over to Pavitra Shankar, Managing Director, for closing comments. Over to you, ma’am.

Pavitra Shankar — Managing Director

Thank you. Good afternoon, everyone. Thanks for taking the time to hear from us today. We have a few other highlights that we’d like to share with you all. We are happy and proud to share that our Chairman, Mr. M.R. Jaishankar, who has conferred the prestigious Bharat Ratna for M. Visvesvaraya Memorial Award 2022 by The Federation of Karnataka Chambers of Commerce & Industry, FKCCI. Mr. Jaishankar was recognized for his outstanding contribution in construction and building sector, as well as in the fields of education, health, community development, social and philanthropic work. Another incredibly noteworthy achievement is his own inspiring professional journey.

We were also recognized by Construction World [Technical Issues] Builder Award for showing significant growth and resilience despite changes due to the impact of the pandemic. Our IT and digital team also won the best Information Technology Department of the Year in Real Estate at the Tech Excellence Awards 2022. This kind of recognition and awards received from experts and institutions along the way are testament to our commitment and hard work towards being an organization with world-class performance and processes.

Brigade’s REAP, our real estate tech accelerator program, continues its stock leadership journey in Proptech with Propagate 2022, an event to address the rapid urbanization in our cities by presenting cleantech and sustainability solutions. So that development can happen in a more responsible manner. This event will be held in Bangalore on November 29th [Technical Issues] funds and the start-up community. It will be an event that will bring together key influencers and start-ups to inspire and propose smart solutions.

The Indian Music Experience Museum will be conducting its next big event in partnership with the Manchester Museum, United Kingdom. The event called RhythmXChange will be held between the 25th and 27th of November. It’s a collaborative project that promotes connections between India and the UK. through rhythm traditions.

Brigade has been a strong supporter of sports through multiple avenues, but especially women in sports. In line with these efforts, Brigade Foundation supported the Women in Sport initiative, a Bangalore-based platform for health and fitness by sponsoring 30 women at Ironman 70.3, Goa. We strongly believe that by encouraging women in sports [Technical Issues] continue to pursue their dreams and achieve great heights. We’ve also sponsored a concurrent program, where deserving women cricketers are being trained to compete at the highest level.

And with that, it’s a wrap for this quarter. We look forward to speaking to you again soon. Thank you, everyone.

Operator

[Operator Closing Remarks] The consolidated EBITDA including other income for H1 FY 20 two’ 23 stood at 500 crores, once a six crores in H1 FY 22, an increase of 49% EBITDA margin including other income stood at 27% overall collection for H1 FY 23 was 2,633 crores versus 16, 54 crores in Q1 FY 23, an increase of scripted 9%. Coming to debt position. Gross debt of the company stood at four zero-one five crores as on 30th September, 2022, there was a reduction of 79 crores in real-estate debt and in Q2 FY 23 because of good collections and repayments so reduction in. Residential, that has continued since last year the cash-and-cash equivalents stood at one. 79 crores. As on September 30,, 2022, consequently the company’s net-debt outstanding as on September 30,, 2022 is 2,200 and 206 crores out of, 14, 91 crores. Cash-flow from operating activities stood at seven, 31 crores in H1 FY20 as, compared to 369 crores in adjuvant and Kings of eight questions the average cost of debt has increased by 44 bps as compared to increase of repo rate by 190 bps inspired 20 to our debt-equity stood at 0.60, lower than last quarter. We have a credit rating of A-plus stable with, which has been assigned by both CRISIL and ICRA which will in, which will increase lenders and investors confidence that company has strongly predict liquidity position and we to meet expansion plan. I now want to hand over the mic to the moderator for questions and that’s. Thank you so much sir. Thank you ladies and gentlemen we will now begin the question-and-answer session. Anyone who wishes to ask a question may press star and, one on your Touch-Tone 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 will wait for a moment while the question queue assembles. Thank you. The first question is from the line of Adhidev Chattopadhyay from ICICI Securities. Please go-ahead. Yeah, good afternoon everyone thank you for the opportunity so first question is maybe on our leasing pipeline so we got 1.5 million square feet of vacant space and a one million square feet of leasing pipeline. Considering what you’ve mentioned on the build which is our weighted so. Now, when do you expect to now fully leased-out what is the fresh target because I believe you earlier, looking to do it by March or June of next year. So is there in that’s the target remains same or is there, any change to that thank you that’s the, first question. Sure this is Ravi the target of most remains the same and. We are right, there has been a visible slowdown in the overall market and the dish is proposed to be tabled in the winter session. Having said that, apart from all this we are focusing on building a heavy pipeline about one million square feet of pipeline which is basically. Here for us to deal with and convert over the next one or two quarters so we are hopeful that this pipeline will see some conversions going-forward in the next. Three to four months. You alluded to some significant slowdown in leasing like you are referring to which period. Exactly. That is if you were to refer to the market reports of AIPC’s. Visibly but if you were to compare. Quarter-to-quarter one of FY 23, carries a 30% slowdown, reported by them. Having said that the green shoot is that there is, a 30% growth when you compare quarter two FY22 quarter two FY 23. If you compare it with last financial year so. Of course, overnight some to pay but. That shows a healthy back. Compared to last year. This slowdown of course may be motivated and will pick-up given the pipeline which we had and I’m sure that’s demonstrated by the market sentiments as. Okay. The second question is on those on the land payments, obviously residential that has come down quarter-on-quarter the question is vital. So-so what would this is the expected tending Land team and, we’ll be doing the second-half of the year in, it was the amount end of TIAA added back or and accordingly. How much would the debt the net-debt rather go up by the second-half of the year if you factor that in thank you. Yeah so we have around 1,000 crores of land-use and. I think in next. Two quarters we should incur around 600 to 700 crores which land payments will happen need take any debt because adequate crush is there in the balance sheet but we’ll see if required we will take-out the way. The cash is there even QIP cash that will all be used for the repayment for the payment of the land. Okay sir so, just to clarify this small growth that will be fully paid and we can look-forward to allot sometime towards the end of this year or that is, I’ve got to be transient tranches. No, So. I think by Q4 will be amount crore. The approvals are also going on parallely and we are targeting. So we are targeting improved spot as they should lines have been. Of course the resident doesn’t belong. But exact launch will happen in second-half of FY 24 is it correct way of assessing so yes so but so as that Arthur mentioned or will be a mixed-use project we are going to lead with the residential portion which is around 60% of the total one billion revenue that we are aiming to build. We are in the process of design and approvals that generally leads a little bit of time in Chennai Sylvia anticipating it’s actually part of our next rolling four quarters estimate of when it will launch so potentially in. Two of FY 20 forward before we are looking at. Okay. Second-quarter FY 20 is that did. I hear it correctly yeah yeah yeah okay fine, fine, I’ll come back-in the queue with more questions yes thank you. Thank you. The next question is from the line of Parikshit Kandpal from HDFC Securities. Please go-ahead. No hi team for good quarter so. My first question. Is sir if I see the launches. Hardly about 2 million square feet of launches have happened in the first-half and. I was more than 50% is from the existing projects, new phases. We, have a very strong pipeline of 15 million square feet in the second-half so if. I have to look this the perspective that first-half could be largely driven by the financing if you can give some more granularity on the second-half launches, especially the big ones. And then we have. Sure so, let me just give some context at the beginning of the financial year we had basically indicated, around 10 million square feet of launches eight of which was from residential as you indicated and as we have done in Q1 and Q2 2 million of that is already launched of the remaining 6 million, 2 million of that is plotted development we have visibility for that to happen in Q3 and and multi Q3 those launches should be happening the remaining project will also come into Q4 so we actually have pretty good confidence that most of the large projects that we were expecting to happen this financial year will happen some of it which we had like to see in Q3 it. Receive the final Zara approval but we are all-in. In terms of the design approvals on that front so we are pushing very hard. We should be reaching what we had mentioned in terms of the overall launch planned for this financial year now every quarter we give a rolling four quarters. Look so now in this quarter that has increased to 13, because we’ve included some of the additional launches that we expect in Chennai coming up in Q1 and Q2 of FY 24. Bruker. And my second question is on this 2000 crores mentioned, needs to be made-for the land payment so is the potential jumped gross development value-added and this 15 million square feet or this will be over and above that. It will evolve. Yes, It will be over and above that because the land-bank that 2000 crores remaining to be paid that is, not all going to be launched within the next four quarters so it is over the span of the next we usually have like a Five-Year look out so a lot of that is, not necessarily going to be launched right away so the timing also prepayments and go accordingly. This 1,000 crores of lines, a large part of that would be the ready. I mean I think more than 500 crores the loan will be from the amount or. Yeah the Monroe is, a big portion of. Yeah so it is, a big portion but definitely we have also paid around 100 crores already in the amount so it will be 400 crores but let there are not JJ’s, which are, therefore, which will make the payment for 1,000 crores so. And then when other purchases of the land will chemical get added to that. My question was that then how much of gross development value we have hundreds if I understand correctly about