Brookfield India Real Estate Trust REIT (BIRET) Q3 FY23 Earnings Concall Transcript

Brookfield India Real Estate Trust REIT (NSE:BIRET) Q3 FY23 Earnings Concall dated Feb. 08, 2023.

Corporate Participants:

Shailendra Sabhnani — Senior Vice President

Alok Aggarwal — Chief Executive Officer, Brookprop Management Services Private Limited

Sanjeev Kumar Sharma — Chief Financial Officer

Ankur Gupta — Managing Partner and Director

Analysts:

Puneet Gulati — HSBC — Analyst

Kunal Tayal — Bank of America — Analyst

Sri Karthik Velamakanni — Investec — Analyst

Sameer Baisiwala — Morgan Stanley — Analyst

Presentation:

Operator

Ladies and gentlemen, good day and welcome to Brookfield India Real Estate Trust Earnings Call for Q3 FY 2023. [Operator Instructions]

On the call, we have the following persons Mr. Ankur Gupta, Managing Partner, Brookfield Asset Management and Director, Brookprop Management Services Private Limited; Mr. Alok Aggarwal, Chief Executive Officer, Brookprop Management Services Private Limited; Mr. Sanjeev Kumar Sharma, Chief Financial Officer, Brookprop Management Services Private Limited and Mr. Shailendra Sabhnani from Brookfield.

I now hand the conference over to the management. Thank you and over to you, sir.

Shailendra Sabhnani — Senior Vice President

Thank you. Good afternoon, everyone and welcome to the third quarter FY 2023 earnings call for Brookfield India REIT. We continue to deliver robust performance with around 1 million square foot of leasing year-to-date, with around two-thirds being contributed from new leasing and the balance of renewals. We have also achieved 10% average escalation on 3.5 million square foot of leased area to-date.

Our occupancy has remained stable, while achieving a 9% NOI run rate growth over FY 2022 and our NOI run rate as of December 2022 stood at INR916 crores, as a further embedded growth potential of 18% through a mix of new leasing, re-leasing and MTM potential, that is well supported by a robust 2.2 million square foot leasing pipeline.

We also continue to evaluate select sponsor assets, which will further grow the REIT portfolio organically and the balance sheet continues to remain robust with a 32% LTV, a AAA rating, which has enabled us to achieve highly competitive pricing. On the recent budgetary announcements, we are putting together a representation along with industry participants which my colleague Sanjeev will further elaborate.

With this, I will hand over to Alok for a deep dive into the business update. Thank you.

Alok Aggarwal — Chief Executive Officer, Brookprop Management Services Private Limited

Thank you, Shailendra. Very good afternoon to everyone. I’m pleased to announce that we have delivered another quarter of stable performance for our unitholders. We have seen a consistent improvement in the physical occupancy at our assets in the quarter ending December. Comprising the holiday season in many organizations, our assets have continued to witness physical occupancies of over 50%. This increase in physical occupancy is driving increased leasing enquiries. We continue to attract new tenants to our world class portfolio and many of our existing high-quality tenants are looking to expand their footprint in our portfolio assets. Our leasing remains on track and we have a healthy leasing pipeline.

During the last quarter, we leased 3,32,000 square feet, comprising 2,41,000 square feet of new leasing and 91,000 square feet of renewals. Additionally, we signed expansion options of about 40,000 square feet. The total lease area of the portfolio has remained stable at 11.9 million square feet and we have maintained our committed occupancy at 83% and effective economic occupancy at 88%. Our existing leases have delivered robust embedded growth with a 12% average escalation on 1.5 million square feet during the quarter.

In the last nine months, we have achieved gross leasing of 9,49,000 square feet, with a healthy mix of existing and new tenants taking up space. Additionally, we have signed expansion options of 1,17,000 square feet and have a robust leasing pipeline with 2.2 million square feet of ongoing discussions. This should provide a further fillip to our leasing recovery. We have added many new office tenants into our portfolio in the year till date including Aristocrat Technologies, LTIMindtree, and McGraw Hill.

Backed by robust cash flows from our underlying assets, the Board has approved a distribution of INR5 per unit this quarter. We remain on track to achieve our H2 FY 2023 NDCF guidance. It has been one year since we completed the acquisition of Candor TechSpace N2. We are pleased with the leasing success we have achieved in this asset, with the last new lease signed at a rental 15% higher than the income rental — income support rental of INR60 per square feet. The newly completed tower at the asset, Tower 11A has been 77% leased to Aristocrat, a leading mobile game developer. The balance 23% is available with them as expansion option, making the tower fully committed within seven months of completion.

ESG continues to be a key component of our overall strategy and we continue to work towards a sustainable future with our target to achieve net zero by 2040. The applause we have received such as GRESB Five-Star rating and the prestigious Golden Peacock Award [Indecipherable] our face that we are making meaningful progress and invigorates us to increase our efforts to create sustainable campuses.

We remain closely connected with the communities that we operate in and we recently launched the Trees of Hopes campaign with the objective of providing education to children, which has seen a fantastic response from all our stakeholders.

The REIT has an attractive acquisition pipeline and is evaluating 6.5 million square feet across two assets, Candor Techspace G1 in Gurugram and Downtown Powai in Mumbai. These acquisitions if materialized, would help broad base the REIT and diversify our offering to our tenants. Backed by our high-quality portfolio, we continue to remain focused on the path of accusation for our unitholders and we’ll continue our efforts to deliver long-term value to our partners and communities.

Now I would like to invite Sanjeev to provide the financial updates. Thank you.

Sanjeev Kumar Sharma — Chief Financial Officer

Thank you, Alok. Good evening, everyone. I’m pleased to announce that we have achieved an NDCF of INR168 crore, means INR5.01 per unit in quarter three of financial year 2023 and are on the track to achieve our full year guidance of INR20.25 per unit. For the nine months of financial year 2023, we have already achieved an NDCF of INR15.26 per unit.

The Board has approved the distribution of INR168 crore or INR5 per unit this quarter. With this, we have distributed INR509 crore or INR15.20 per unit for the nine months of financial year 2023. There were recent budgetary announcements regarding taxation of a component of distribution that accounts for around 50% of our current distributions. It is pertinent to note that apart from distributions, REITs provide capital appreciation, driven by embedded growth drivers in the underlying assets and the taxation on capital gains of REITs remains unchanged.

We are examining the impact of the budget announcements and along with industry participants are evaluating next steps, including making appropriate representations. Our operating lease rentals for the quarter are INR207 crore, which is 43% higher than the same period last year.

The adjusted NOI for the quarter including income support from the Sponsor Group is INR240 crore, which is 60% higher than quarter three financial year 2022. For the nine months of financial year 2023, we achieved a 33% growth in our operating lease rentals at INR616 crore and a 48% growth in our adjusted NOI at INR716 crore, which is primarily driven by the addition of Candor TechSpace N2 into the portfolio and a significant improvement in our CAM margins over financial year 2022.

The improvement in our CAM margins was driven primarily by some of occupiers moving to the higher hours of operation and because of the higher physical attendance we have seen at our assets. We continue to maintain a strong balance sheet with a 32% loan-to-value and robust cash flow generated by our high-quality assets have ensured that our debt is rated AAA stable by CRISIL.

This has enabled us to see a limited increase in the average interest rate to 7.95% as on 31st December 2022, which is 119 basis point increase in the interest rate during nine months of financial year 2023 as compared to 225 basis point increase in the repo rate during the same period. With the highest credit quality and minimal refinancing risk, we have witnessed only a partial pass through of increase in bench markets to our borrowing costs.

Thanks, everyone. With this, I would request the moderator to open the floor for Q&A.

Questions and Answers:

Operator

Thank you very much, sir. [Operator Instructions] The first question is from the line of Puneet Gulati from HSBC. Please go ahead.

Puneet Gulati — HSBC — Analyst

Yeah, thank you so much for the opportunity. My first question is obviously with respect to the tax, so based on your assessment, what is the implication if the budget proposals go through? And secondly, what is the industry and you trying to do about it? And then related to that, how does it impact the ROFO proposition?

Ankur Gupta — Managing Partner and Director

Puneet, this is Ankur. So, one is — this is not taxation that we’re talking about as applicable uniformly for everybody. So, let’s just make a distinction. So to say that this is the impact is not going to be a holistic answer. Second, we’ve heard a lot of commentary around that this was at — principal repayment to the REIT, etc, as almost relates to not paying taxes, debt repayment, the way we’ve all learned happens from post-tax income as applicable.

So I think there is a little bit of commentary that’s required and there is a little bit of confusion that needs to be plugged in. As Sanjeev mentioned, we are making representations to make some of the point is well established, just like dividends are paid from post-tax income, debt repayment on the principal side also happens — have — also happens from net operating profit after tax, right?

Puneet Gulati — HSBC — Analyst

Yeah.

Ankur Gupta — Managing Partner and Director

And then finally, the capital gains nature of suitable capital adjustment as it relates to principal payment are already in the code right now. So on all three counts I would say that this needs a clarification and we have as Sanjeev said made a presentation or are going to make a presentation because this just impacts — clarity is required. So, sorry, there was another question that you had.

Puneet Gulati — HSBC — Analyst

Yeah, so what is it do to the ROFO proposition, right, in case there is no change in the budget proposal and it does get pass through, how does it impact the ROFO proposition there?

Ankur Gupta — Managing Partner and Director

Sir, these are long-term aspect, this is a product which has dividends, it has a product that has capital appreciation, etc. So I don’t think fundamentally things change. Of course, it’s not great if tax code incurred with too frequently or for the decision that gets created, which I don’t think is going to be the case. India has a very robust REIT environment, we’ve learnt our regulations from the best — from the best places in the world. And I think clarification will come through is my understanding or at least my hope to grow the REIT through acquisitions remains our strategy.

Puneet Gulati — HSBC — Analyst

Yeah. So just related to that, if I may, Ankur, since you are there, on the news article which related that Brookfield Powai portfolio might get sold to GIC, is that something that you would even evaluate or should we think that everything that Brookfield hold will ultimately flow into the REIT?

Ankur Gupta — Managing Partner and Director

I don’t think it’s fair for me to comment upon a media article here, but even in the presentation we’ve put out and in the speaking notes that Alok just mentioned, Downtown Powai is being considered as part of the ROFO portfolio.

Puneet Gulati — HSBC — Analyst

Understood. That’s helpful. My other two questions are just a bit on financial side. There was a positive tax impact of almost INR309 million for this quarter, are we likely to see more of this in the remaining year or all those refunds are done with?

Sanjeev Kumar Sharma — Chief Financial Officer

So, Puneet, Sanjeev here. As you know, how our tax regime works, the withholding tax gets deducted every quarter and then in some quarters refunds comes. So over a period of time, it’s tax neutral I will say, because some — in some quarters you will see negative where withholding tax is deducted and some quarters you will see refund, so it’s a continuing process, which will happen perpetually.

Puneet Gulati — HSBC — Analyst

For this year, is there more to come or are we done with fiscal 2023?

Sanjeev Kumar Sharma — Chief Financial Officer

There are certain refunds in the balance sheet outstanding. We can’t exactly comment on the timing whether we will be able to get those refunds in the current quarter, because we are only one quarter away from the year-end or in the coming quarters.

Puneet Gulati — HSBC — Analyst

Okay. Understood. And can you also clarify how much of your unoccupied portfolio is SEZ now?

Ankur Gupta — Managing Partner and Director

What was the question?

Puneet Gulati — HSBC — Analyst

How much of the unoccupied portfolio is SEZ?

Sanjeev Kumar Sharma — Chief Financial Officer

By square footage, I would say most of our vacancy right now is in the SEZ portfolio.

Puneet Gulati — HSBC — Analyst

Okay. Understood. And last if I may squeeze in, there are some big expiries due in FY 2024, especially from Kensington, any update or color you want to give there?

Alok Aggarwal — Chief Executive Officer, Brookprop Management Services Private Limited

So, Puneet, this is Alok. I think we have mentioned in past that discussions have progressed well and it’s just a question of time, we should be able to get confirmation from tenant for further renewal and confirmation. We are in advanced stage of discussions, very advanced stage.

Puneet Gulati — HSBC — Analyst

Understood. That’s helpful. Thank you so much and all the best, yeah.

Alok Aggarwal — Chief Executive Officer, Brookprop Management Services Private Limited

Thank you.

Operator

Thank you. [Operator Instructions] The next question is from the line of Kunal from Bank of America. Please go ahead.

Kunal Tayal — Bank of America — Analyst

Great. Thank you. I just wanted to follow-up on the developments that came through as part of the budget. Ankur, on the repayment of debt, is there representation about trying to get it reversed or see what workarounds might be possible, if you could clarify that one?

Ankur Gupta — Managing Partner and Director

So — the industry is making a joint representation, it’s not probably fair for me to make my assessment. But as I said that there are clarifications rather reversals that are required right now, because as I said, one is, there was — again, there’s a lot of chatter around that this was a channel which was the kind of, I would say, “loophole around taxation” that’s not — right, so that’s a clarification required. And the existing course provide for dealing with such repayments of debt, leading to restriction. So I would say it’s a matter of the tax code of the country to be interpreted properly and clarifications required from the budgetary — from the announcement made during the budget, but we’ll have to wait and see how this plays out.

Kunal Tayal — Bank of America — Analyst

Right. Okay. And then on the SEZ part of it or the DESH bill, mindspace of the view — was of the view that again the industry would sort of talk about trying to make adjustments to the existing policy itself. So do you have any thoughts there as to how fast could we see progress on this particular front, etc?

Alok Aggarwal — Chief Executive Officer, Brookprop Management Services Private Limited

Kunal, this is Alok. So we had multiple decisions with governments and regulatory bodies. I think there is sufficient progress has been made here and that’s an indication we have, difficult to commit timelines, but there sufficient progress has been made. At the same time, what we also is — and you have seen the lease of Aristocrat, what has been done. We are reaping all our properties and we see sufficient attractiveness for ESG properties also. So both angle, sufficient progress with government, difficult to commit timelines, I think two months more, but at the same time, we are seeing interest also there for SEZs and we continue to work with tenants for leasing of SEZ properties also.

Kunal Tayal — Bank of America — Analyst

Yeah. Okay. And then the last one from me, your average rentals at INR64, it basically feels unchanged over a span of eight quarters. I was wondering as to why should that be because you’ve been getting the escalations, is that mainly because of any sort of a mix change may be caused by N2 or anything else going on there?

Alok Aggarwal — Chief Executive Officer, Brookprop Management Services Private Limited

Yeah. So one reason, so we can look at the details, but of course, we have seen lot of leasing in N1 and of course, leasing in N1, we have kind of now gone from almost INR50, INR52, now INR60, INR63. So that is — that is one reason where and when the leasing rental is lower.

Kunal Tayal — Bank of America — Analyst

Okay. So this all be mix led is your guess, correct?

Alok Aggarwal — Chief Executive Officer, Brookprop Management Services Private Limited

Absolutely, absolutely.

Kunal Tayal — Bank of America — Analyst

Okay. All right. Thank you.

Operator

Thank you. We’ll take our next question from the line of Sri Karthik Velamakanni from Investec. Please go ahead.

Sri Karthik Velamakanni — Investec — Analyst

Yeah, hi. Thanks, team. Just a quick clarification on the taxation changes in the budget. In the current form, will there be any benefit to the cost basis on the capital gain?

Ankur Gupta — Managing Partner and Director

Sorry, Sri Karthik, if you could just clarify your question and I mean, we tried to clarify from our position on the tax, but as you would appreciate that is all — we all have the same information, but if you could just clarify your question, then we’ll try to see what best we can do.

Sri Karthik Velamakanni — Investec — Analyst

Yeah. If the principal repayment instead of being classified as principal repayments, they are classified as income, earlier the cost basis would have been lowered because of this. Now the capital gains component at least would be adjusted upwards, so there’ll be lower capital gains and has lower capital gains tax, is that the right understanding?

Ankur Gupta — Managing Partner and Director

I mean, that so when we — when we stated that there is existing law or tax framework to deal the entire picture, you’re right that both can’t coexist. So we won’t be in a position to answer what part of it is the right answer, because there is a little bit of confusion there and that’s the clarification of the industry as sought. Repayment in our opinion is not — repayment is repayment, we can’t classify as be the impact, right?

Sri Karthik Velamakanni — Investec — Analyst

Understood. So just to clarify this, effectively the outcomes are, if they sort of roll this back then effectively our capital gains increase, if they do not, then you get a benefit there, is that the right understanding?

Ankur Gupta — Managing Partner and Director

Your first part is probably the right understanding as it relates to the treatment to date anywhere before the recent announcements came in, so I don’t think anything changes on that front.

Sri Karthik Velamakanni — Investec — Analyst

Understood. Okay. This is very helpful. The second question is, what percentage of our operating assets are classified as SEZ? And could you also quantify if what percentage of that area is vacant currently?

Alok Aggarwal — Chief Executive Officer, Brookprop Management Services Private Limited

So this is Alok, so out of assets you have, N1 is non-SEZ, other assets are SEZ and as we have mentioned that 90% of the vacant area is in SEZ.

Sri Karthik Velamakanni — Investec — Analyst

Okay. And are you also looking to selectively denotify some of this depending on obviously approvals there?

Alok Aggarwal — Chief Executive Officer, Brookprop Management Services Private Limited

Yeah, subject to approvals, we can look at de-notifying it makes — if it makes — it’s accretive for us, we can look at it. But right now, you can de-notify new buildings, but not the old sort of occupied buildings, that, no, it is not there.

Sri Karthik Velamakanni — Investec — Analyst

Understood. And lastly, because you have — the way you have mentioned your NOI growth over a Q4 base, the way to interpret this is, of course, that a 9% absolute growth so far is effectively annualizing to 12% to 13% on a full year basis, is that the right interpretation out here?

Ankur Gupta — Managing Partner and Director

I don’t think that’s the right interpretation, it’s comparing studies or run rate to run rate. So the right interpretation is if you extend that to 18% potential, this portfolio has a stabilized potential of more than INR1,100 crores of income per year.

Sri Karthik Velamakanni — Investec — Analyst

Okay. Got it. Understood. All right. So that is all from me. I’ll come back in the line. Thank you.

Alok Aggarwal — Chief Executive Officer, Brookprop Management Services Private Limited

Okay.

Operator

Thank you. As there are no further questions from the participants, I would now like to hand the conference back to Mr. Ankur Gupta for closing comments.

Ankur Gupta — Managing Partner and Director

Thank you. Sorry, there are a few questions, if you can take it.

Operator

Yes, sir. We just got a question from Sameer Baisiwala from Morgan Stanley. Please go ahead.

Sameer Baisiwala — Morgan Stanley — Analyst

Hi. Thank you so much and good afternoon, everyone. Couple of questions. One is if you can just talk about what does 18% embedded NOI growth over a period of time can translate into DPU growth?

Sanjeev Kumar Sharma — Chief Financial Officer

So, Sameer, we’ve just talked about the NOI growth that we see from here on, on a run rate basis to stabilization. I think DPU will be — will be a factor of some other aspects as well like financing, etc. So you probably make assumptions with respect to other factors. But otherwise, this is broadly how we think NOI is shaping up, as we continue to look at the portfolio stabilizing.

Ankur Gupta — Managing Partner and Director

In other words, Sameer, this requires almost nil capital investments, so all of this should — should ultimately flow through the DPU.

Sameer Baisiwala — Morgan Stanley — Analyst

Okay. Okay. So, what you’re suggesting is that your DPU growth should broadly track NOI growth going forward?

Ankur Gupta — Managing Partner and Director

Yeah, there is about 15% to 20% embedded growth in DPU for potential of the existing operating portfolio.

Sameer Baisiwala — Morgan Stanley — Analyst

Okay. Ankur, that’s very helpful. Thanks for that. And the second question I had was taking from your press release that you have achieved 10% average escalation on 3.5 million square feet of leased area in nine months. So if you can just talk about it is, I mean normally it would be 15%, but is there any — one-third of the leases been on annual escalation, is that what’s driving it? If you can just talk about this?

Ankur Gupta — Managing Partner and Director

Our escalation in the Kensington asset are typically the annual escalation of 4.5% to 5% and Candor assets typically have a 15% escalation every 36 months. So the blended average of that in the nine months is 10% figure we see.

Sameer Baisiwala — Morgan Stanley — Analyst

Okay. That’s very clear. So there is no change to 5 percentage and 15 percentage, yeah, so it’s just a mixed thing, yeah?

Alok Aggarwal — Chief Executive Officer, Brookprop Management Services Private Limited

Absolutely.

Sameer Baisiwala — Morgan Stanley — Analyst

Yeah. Okay. And sir, the page on the inorganic option, so G1 rentals are at INR75, just curious is this the market rate in that neighborhood or is it very highly under-indexed?

Alok Aggarwal — Chief Executive Officer, Brookprop Management Services Private Limited

So you’re talking about G1, yeah. So this is a in-place rent, so this is a in-place rent and, of course, so the leases have been signed earlier. Of course, today when we look at leases could be happening at about 15% to 20% more rental than what is in-place rent.

Sameer Baisiwala — Morgan Stanley — Analyst

Okay, which means if and when this asset comes in, will come with a fair bit of mark-to-market upside, that’s what I was trying to get to.

Alok Aggarwal — Chief Executive Officer, Brookprop Management Services Private Limited

Yes, absolutely, absolutely.

Sameer Baisiwala — Morgan Stanley — Analyst

Sir, one final question from my side, is on the CAM recovery. How does this work? And is it — now at 50% physical occupancy, are you pretty much there or you think there is some more scope for CAM to go up?

Sanjeev Kumar Sharma — Chief Financial Officer

So Sanjeev here, Sameer. Normally our CAM is cost plus margin basis. So whatever we incurred in the expenditure, the margin is added and recovered. With the physical occupancy of 50%, there is a headroom of I will say, reasonably good headroom for CAM income to increase. If you just go to our Slide number 13 where we have shown the organic growth potential, where we are talking of increase of 18% in our NOI, 30% to 35% a potential of increase in the CAM margin itself is there in our portfolio when we will get stabilized NOI.

Sameer Baisiwala — Morgan Stanley — Analyst

Yeah. Okay. Got it. Yeah, I can see that, yeah. Thanks for that. And, sorry, one more. I think it’s a bit about the budget announcement, but just one more. This is going to be — if it goes through it’s going to be applicable from first April 2024. So you would have say five quarters, is there anything that you can do to mitigate the impact?

Ankur Gupta — Managing Partner and Director

We are not sure that that’s the right understanding.

Sanjeev Kumar Sharma — Chief Financial Officer

Sameer, this is applicable from AY ’24, which means it would be next FY, so applicable from 1st of April next year for the coming months.

Ankur Gupta — Managing Partner and Director

2023.

Sameer Baisiwala — Morgan Stanley — Analyst

Okay. Oh, I see. Okay, got it. Yeah. Thank you so much. Yeah.

Operator

Thank you. Our next question is a follow-up from Puneet Gulati from HSBC. Please go ahead.

Puneet Gulati — HSBC — Analyst

Yeah, thank you so much. So this is effective for FY 2024, right, if it goes through? For your FY 2024 income will be subject to this taxation or FY 2024 distribution?

Ankur Gupta — Managing Partner and Director

Distribution will be.

Puneet Gulati — HSBC — Analyst

Yes. Understood. Okay. Can you give some sense of what is achievable rents for all of your forward locations currently?

Ankur Gupta — Managing Partner and Director

So is that a specific question on assets because we have stated the market trend versus in place, etc, but happy to answer any particular questions.

Puneet Gulati — HSBC — Analyst

Yeah. No, so like-to-like for each of the five assets that you have, if you can give some sense of where those leasing rents are moving currently.

Alok Aggarwal — Chief Executive Officer, Brookprop Management Services Private Limited

Yeah. So let me kind of — and I will — let me talk about what the leases we have signed in last six months. So let’s take N1, for the N1, we are crossing INR60, INR62, INR63 or even touching INR65, INR68 smaller spaces, that’s the kind of a number we are talking about. N2 now we have something at INR70, but I think INR65 is a rent what has got in last three, four months what we are signing. When we talk about G2, it can be around INR90, for smaller space could be INR90 plus, for our larger spaces could be slightly lower than INR90, so that’s where we are in G2. Then on Calcutta, what we are hoping to sign something maybe should happen mid-40s, anything between INR43 to INR45 and Mumbai can vary between INR115 to or rather I would say INR122, INR125.

Puneet Gulati — HSBC — Analyst

So there hasn’t been any meaningful increase in the market rentals for say over last quarter, right, that’s the message I should take or?

Alok Aggarwal — Chief Executive Officer, Brookprop Management Services Private Limited

No, I think, if you really look at Noida, which was in the mid-50s to 60s, now we are processing INR62, INR63 which is N1. N2 we were signing around INR60, we have crossed INR65. We have crossed INR65 there. Gurugram, we continue to be range between INR90 to INR95, Calcutta now we are around mid-40s, again an increase of course something has to be realized in short time. And Bombay is around INR120, INR125 we have indicated earlier.

Puneet Gulati — HSBC — Analyst

Understood. That’s helpful. Thank you so much.

Operator

Thank you. So that was the last question. Over to you Mr. Ankur Gupta for closing comments.

Ankur Gupta — Managing Partner and Director

Okay. Thank you everybody for your participation today and we look forward to getting back in touch with you shortly. Thank you. Have a good evening.

Operator

[Operator Closing Remarks]