Keystone Realtors Ltd (NSE: RUSTOMJEE) Q1 2026 Earnings Call dated Aug. 05, 2025
Corporate Participants:
Unidentified Speaker
Boman Irani — Chairman and Managing Director
Sajal Gupta — Chief Financial Officer
Analysts:
Unidentified Participant
Pritesh Sheth — Analyst
Harsh Pathak — Analyst
Murtuza Arsiwalla — Analyst
Presentation:
operator
Ladies and gentlemen, good day and welcome to the Keystone Realtors Limited Q1FY26 earnings conference call hosted by Access Capital Limited. As a reminder, all participant lines will be in the listen only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference call, please signal an operator by pressing star then zero on your touch tone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Pritesh Seth from Access Capital Limited. Thank you. And over to you sir.
Pritesh Sheth — Analyst
Thank you Shruti and good evening everyone. Welcome to the call. Firstly, congratulations to Keystone Realtors team for a strong quarter across parameters. As usual we have with us the management of Keystone realtors represented by Mr. Boman Irani, Chairman and Managing Director, Mr. Chandra Mehta, the Executive Director Mr. Parsi Chaudhary, Executive Director and Mr. Sajal Gupta, the Group CFO. I’ll hand over the call to the management for their initial comments and then we can open the floor for questions and answers. So over to you Bhavan sir.
Boman Irani — Chairman and Managing Director
Thank you. Good evening everyone and welcome to our Q1 FY26 earnings conference call. I’m Domini Rani, Chairman and Managing Director of Keystone Realtors Ltd. And I extend my heartfelt gratitude to all of you for joining us today. I’m pleased to report a strong start to FY26 marked by three significant first time milestones. This quarter has been our highest ever quarterly presales of 1068 crores. Two, this has also been our highest quarter where we had the highest quarterly launches worth 3967 crores. You know our pre sales which is at 1068 crores is a 75% growth on the same quarter last year.
And collections of 575 crores is a 19% growth on the same as for the same quarter last year. The third milestone that we have is the launch of three projects during the quarter with a GDV of totally 3967 crores. Twice the launch value recorded in the same period last year. So the momentum is clear reflection of the strength of our product portfolio and the resilience of our overall strategy in line with our proactive approach to business development, we added three projects in Q1 with a combined GDV of 7727 crores. This exceeds the entire guidance of FY26 for business development by more than 1.25x reinforcing the success of our Asset Light Capital efficient model.
The Sharp Focus on Redevelopment within MMR as one of the most trusted names in this space, Rustamji is uniquely positioned to unlock long term value in a fast evolving market and with a healthy balance sheet, a very strong capitalization, we remain well equipped to pursue emerging opportunities and create sustainable value for our stakeholders. We are confident of carrying forward this momentum and delivering a fantastic year ahead which is going to be strong and filled with consistent growth. Our presales are tracking in line with our expectations, positioning us for the next phase of our revenue growth.
The sharp rise in demand reflects both our strategic direction and growing trust that the customers have placed in our developments. As we move forward, our goal is clear to continue delivering exceptional value to our customers, upholding the strength of our brand and leading the business with both passion and purpose. Further, consistent growth in collection is a clear indicator of strong customer confidence in our brand as well as the quality of our project delivery and customer engagement practice. A key strategic focus area continues to be accelerating the pace of construction not only to uphold and exceed our delivery commitments and enhance customer satisfaction, but also to optimize our collection cycle.
With faster progress on construction milestones, we are witnessing a direct positive impact on cash flows. Our construction spends have also increased from 191 crores in Q1FY25 to 238 crore in Q1FY26. This is a 25% year on year growth. This achievement is particularly significant given the strict constraints that developers normally in MMR face with regards to working hour regulations, noise regulations, logistic challenges in certain localities and limited machinery movement in those areas. We are building our ability to overcome complex on ground challenges and drive new standards in speed, quality and efficiency in the real estate landscape.
As mentioned, we have launched three projects with a total estimated GDP of 3967 crores in Q1FY26. This is twice the value of launches done in the same period last year. This further strengthens our future revenue visibility. It is worth noting that we have already achieved 57% of our full year FY26 launch guidance, setting a solid foundation for achieving our targets. We are particularly encouraged by the strong pipeline of upcoming Launches we made significant strides in the BD business development. In Q1FY26 we’ve added three strategic redevelopment projects with a cumulative GDP of 7727 crores. Like I said before, we have already surpassed our full year guidance for FY26 business development by 1.25 times in one quarter alone.
This is an exceptional achievement and underscores the strength of our sourcing capabilities and our strategic focus. These additions are fully aligned with our commitment to consolidating our leaderships in the redevelopment segment across the MMR region, further reinforcing our long term growth strategy. With these developments we have strategically entered the micromarket sign in Lokhandwala. The Redevelopment initiative in GDB Nagar Saiyan represents one of Mumbai’s most significant urban transformation projects undertaken in collaboration with Mada, the project is set to benefit over 1400 families and 200 shops and establishments in the area. With regards to this endeavor as more than a redevelopment effort actually it is a commitment to restoring trust and rebuilding communities, further improving the quality of life of residents.
All our company projects are rigorously vetted using very set criteria by our investment committee, ensuring disciplined underwriting and healthy margins. We focus a lot on the bottom line while we are very very clear that top line growth is also important. Since FY23 we have added 25 projects with an estimated GDP of 25,490 crores. Of these, 21 are redevelopment projects of which 19 cater to Midmark and aspiration category alone. This aligns perfectly with our strategic focus, capturing value through urban consolidation while maintaining volume through high demand and mid segment offerings. In addition, I’d like to highlight our enhanced focus on cluster redevelopment.
This is more intricate and high impact model that involves aggregating and securing consent from multiple societies to enable integrated development across larger urban spaces. This also allows us to be able to create better developments going forward with a lot more amenities being offered to existing members as well as incoming purchasers. This also unlocks greater value through scale and efficiency and like I said enhances the overall livability and infrastructure for the residents. We have recently achieved significant progress in this segment with acquisition of multiple large scale structures including the Lokhanwala Cluster, the GTB Nagar, the Bindoshi Cluster in Mallard east and then Mallard west cluster that we have gotten done.
This positions us uniquely as Mumbai’s probably largest redevelopment company. These strategic editions highlight our ongoing commitment to growth and leadership. I am confident in our ability to consistently take on and successfully deliver newer developments with a strong and diversified portfolio across MMR including having various price brackets from value housing to luxury. Our strategy ensures resilience and growth across market cycles. The redevelopment opportunity in Mumbai continues to be significant and we are a trusted leader in this space. We are ideally positioned to capitalize on this momentum and and we are backed by a very strong balance sheet cash reserve and we are fully positioned, well positioned to fully capitalize on these opportunities.
During Q1 FY26 we generated an OCF operating cash flow of 118 crores. Moving to our consolidated financial performance, we reported a revenue from operations of 273 crores for Q1 FY26. Our liquidity our gross debt stands at approximately 304 crores and with a gross debt to equity ratio of 0.11 is to 1 as of 30 June 2025. This is very well within our guidance. Our total free cash at the end of Q1FY26 is 714 crores, making for a very strong liquidity position. Our net debt for the same period is zero. We are also pleased to share that ICRA has upgraded our credit rating from ICRA from A to ICRA A plus with a stable outlook.
This reflects our robust financial profile, strong project pipeline and disciplined capital allocation strategy. I’m proud to share our progress on the ESG initiatives as well. Our Bellevue Vistamji Bellevue Project in Cassara is now registered as our first Carbon Net Zero project with igbc. Our focus has been on designing and executing net zero carbon initiatives for the two clubhouses at Bellevue Cassara System G Bellevue Cassara we are advancing several key actions including initiating a sequestration study to assess carbon credits from our forest area development. We are mapping the existing water bodies and planning newer ones for rainwater harvesting and thereby achieving Net zero water and we are processing an LOI for renewable solar energy for all the amenities of the development.
We are exploring natural wastewater treatment methods that eliminate the need for traditional STPs in our clubhouses. Additionally, the design submission approval process with the IGBC is well underway. On the sustainability front, we made good progress on our Business Responsibility and Sustainability report. The data for all applicable principles has been uploaded by our stakeholders with supporting evidence and the Principle 6 audits are complete across all ongoing projects. Our first sustainability report aligned with the Global Reporting Initiative Framework is currently in progress. Further, we strengthened our ESG compliance by conducting ISO 14001 and ISO 45001 awareness sessions and advancing their documentation.
We formalized a green procurement policy and shared our supplier code of conduct with 20 key material vendors receiving full acknowledgment as we prepare for FY27 BRSR compliance. Our Q1 FY26 performance reflects a strong execution, a robust growth and continued market leadership. To summarize, Q1FY26 has been a quarter of record achievements and strategic wins. Strong sales, great momentum, disciplined collection, landmark launches, proactive business development. Now we are on a solid path to deliver on the potentially great market and exceed our FY26 goals. We remain committed to exceeding our guidance and delivering long term value to our stakeholders.
The favorable marketing condition, market conditions and our strategic strengths position us for the next wave of expansion. Like we say at Vistamji, we’re not just building homes, we’re shaping thriving future ready communities. Thank you for your trust and support and the continued partnership. We look forward to your questions now.
Questions and Answers:
operator
Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press Star and one on their touchstone telephone. If you wish to remove yourself from the question queue, you may press Star and two participants are requested to use answers while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Harsh Pathak from MK Global. Please go ahead.
Harsh Pathak
Yeah hi Boman and team and first of all congratulations for the strong set of numbers reported during the quarter and strong business development activity. So my first question is on the pre sales guidance. Are we revising our pre sales guidance upwards and what kind of growth can we expect in the next year since we have done a commendable progress on the new BD especially in the last one year and I guess the projects added in FY25 and Q1 will have to be launched in the next one to 1.5 years. So any revision in our guidance.
Sajal Gupta
Thank you for your question and thank you for the compliments as well. I think we are super excited about the three first times that have taken place in Q1. Like I mentioned, 1068 crores of presales, close to around 3967 crores of launches, project launches and most importantly crossing our entire guidance of BD by 1.25 times for the year. Look, quite honestly you know the 1,068 crores of pre sales which has happened in the first quarter which is almost 25% across in 25% of the entire target is a huge first in a lot of other ways also because Quarter one usually has the slowest sales.
If you see any of the years. For most of the developers, quarter 1s are always the slowest. Whereas quarter, you know, the quarters with all the festivals, which is now Ganpati and then going into Diwali, I mean Dasala Diwali and the basic holiday season hold great promise. And always the last quarter is where there’s a lot of good initiatives from developers leading to great buying. Having said that, I’m very happy not to exceed my guidance as of right now. I will continue to perform. And when we give our quarter 2 results, at that point of time, your question may be a little more relevant because we would first like to fill our investors with what we achieved in the first two quarters before making, let’s say a new guidance statement.
So as of right now, we maintain our guidance at 4,000, but I assure you we will fill all our investors like we do with our customers.
Harsh Pathak
That’s encouraging to hear. And so since you have, you know. Already done a very strong bid in the first quarter itself. So how to look at the new. Business development for the rest of the year in the redevelopment space or maybe any outright basis and what is the overall cash capital deployment that we target in the current year?
Sajal Gupta
So harsh. Again, a very good question. This bumper that we have achieved, you know, with that 7700 crores of BD that we have done is also something that we have to put on the rails and you know, get towards development. Most importantly, what I’d like to state out here is bd, especially on the redevelopment front is not like a one off thing, it’s a continuous process. While we’ve entered two new markets, Saim and Lokhanwala, where we see great promise. One of the projects that we acquired in this quarter is also part of a larger cluster of Bindoshi where again there is a tremendous future promise because all these projects except Lokhandwala, most of them fit the mid month and aspiration category where the sales are probably the highest in terms of volume.
Lokonwala is going to be extremely interesting with the success that we’ve seen at Barsova and the kind of development that we can do over 20,000 plus meters of land. It allows us to create the same magic created with elements and you know, maybe even more because over here high rising or the high rises will be better and we will be able to create more meaningful layouts for people to live and thrive in. So having said that, your question was deployment. Look, we have a free cash availability. Of 700 plus crores. We always have extremely, very strong financial partners who are able to back us Sometimes with equity, but the debt market. Definitely is extremely strong. We’ve reduced the price of our cost of our borrowings as well. And as we move along, I believe we will create more and more momentum for sales, allowing for more and more free cash flow to take place. And as of right now, like I mentioned in my entire starting introduction to this quarter, we are extremely focused on bottom line. While we believe top line is critical and important for the market, but the bottom line is most important for our shareholders. And as such, if you ask me what my deployment of cash this year. Would be, I think it would be. About 800 odd crores going forward.
Harsh Pathak
So the point of profitability that you just mentioned. So given this increased competitive intensity in the redevelopment space, do we maintain the same level of embedded EBITDA margins at the project level? Or have we seen some shrinkage? Or maybe, you know, our strategy of cluster development enables to have better margins even with the increased competitive intensity. So how are we placed on the margin sprint?
Sajal Gupta
If you remember in the last earnings call we had actually mentioned that we are at an inflection point and we are more or less proving it as of right now. Look, redevelopment is like I tell people. All the time, it is somewhere where. Not only intelligence, wisdom, money, but a very strong experience counts. Right? And this is something where we proved our metal by housing more than or completing 10 and rehousing more than 2,000 families. Right. And again, I must say this is a little distinguished from even slum redevelopment where I would like to think that it operates on a totally different scale where people are generally happier because there are set guidelines in terms of the additional area that one can get, et cetera. So the movable points are too few, whereas in a redevelopment there are plenty. So it takes a great set of overall understanding and experience to get into this field. Of course, the very fact that so many developers are getting into the redevelopment space only kind of is a validation to our initial foray into this.
When I remember that I had to make a two hour presentation to SBI just to get funding for a redevelopment project. And today to see so many developers get into this space is.
operator
Hello, sorry to interrupt. Hello. Sorry to interrupt. The management has been credit this. Hello, the line for the management is having static, so could you please repeat what you said?
Boman Irani
People are questioning. Yes.
operator
Static and management line.
Boman Irani
Yeah, yeah, I think it’s not clear. One second. Let me call Jeevika and inform them.
operator
Yes, sir, sure. Ladies and gentlemen, the line for the management has been reconnected.
Sajal Gupta
And I would like to State that the glitch was an Internet glitch. So sorry about that but nothing we could do.
operator
Go ahead, you can continue.
Harsh Pathak
No, so actually you know your commentary got interrupted in between but no worries that I’ll understand that maybe one on one but so another question I had was, you know, which is the last one from my side. Any major projects getting completed in the. Current year it can add to the top line.
Sajal Gupta
So harsh in the, in the last quarter, towards the end of the last quarter or maybe early start of this quarter we completed, we got the part OC Paramount. The full OC is expected during the course of this financial year only. Apart from that we are expecting a completion of the Crown Sea Tower that is expected towards the late quarter three, early quarter four which will also give us an opportunity to account for the significant revenue. Apart from that, apart from that we. Have a couple of small projects which should also help in terms of boosting the revenue recognition during the year.
Harsh Pathak
Yes. Yeah sure. So yeah sure that that answers my question sir. Thanks a lot and I’ll understand the response and margins better offline.
Sajal Gupta
Sure. Thank you.
Harsh Pathak
Thank you. Thank you.
operator
Thank you. Thank you. A general reminder to all the participants. Anyone who wishes to ask a question may press star and one on the Touchstone telephone. Our next question is from the line of Pratish Seth from Access Capital Ltd. Please go ahead.
Pritesh Sheth
Yeah, thanks for the opportunity. So first question is on our BD strategy where we have seen a marked difference in terms of projects we used to acquire earlier. The size of the projects we used to acquire earlier versus now clear focus on cluster redevelopment. Is it a strategic change or is it more to do with the opportunities that are available in the market and they’re ready to grab it. So your thoughts on that and second on a follow up to that, how does that change our execution strategy since we are taking these large projects what all we now have to be ready about, you know by executing these large size projects and any change in terms of timelines but versus the usual society development to now these cluster development.
Boman Irani
Yeah, thanks, thanks. Thanks for that. You know a we should tell you that we are developers that have been doing township developments. You’re aware of 217 acres of development in Birar where we did everything from. You know, building the roads to the. Entire infrastructure to the water supply, to the power supply to actually building the buildings, creating the lifestyle. And our thane project is 127 acres plus. So a let me put it this way. There is nothing that we have to learn on this account. For the larger developments we’ve also done elements, which is 20,000 plus meters, seasons which is 15,000 plus meters, Paramount which is again 3 plus acres. So we’ve done these kind of developments in the past. Crown itself is a four plus acre development. So we’ve done these developments. Two, we are also as a company never under pressure to acquire newer projects, right? So we have the ability to pick and choose the kind of projects that we want.
So difficult projects are only those where you do not have the customer or the existing members buy in. And largely we’ve seen that when we get selected, it’s by a 90% member vote itself. So all these larger developments, including what we’ve taken up at GTB Sign, are because of A the location, because of the fact that a cluster development affords better profitability. C it allows us to use our skills of doing the larger developments quicker. And you asked the question about in terms of the time of launches. First of all, the good news is today the one Shakti matter which was stopping a lot of developments in Mumbai has gotten cleared and that will allow us to kind of move forward and launch more projects in the next few quarters.
And these projects will also be adding significantly to our bottom line as well as our top line. And the time taken for a cluster is primarily more when we are working on the cluster. So let’s put it this way, before the DA is signed, once the DA is signed, more or less, it follows the same trajectory of about 13 to 15 months before when it gets launched. And that’s because all the hard work has largely been done before the DA gets signed. So we’ve got a full grip on everything that needs to be built in that area.
The entire market research is set, design teams have already done largely what kind of layouts will be created, the customer base is identified. So we worked out the larger part of the piece before the DA gets signed. After the DA gets signed, there’s a process of putting up the plan to the committees, getting their final sign off on it and then actually putting it to the authorities to be able to give the approvals. And this approval process, as you are aware, takes anywhere between six to nine months and you know, thereafter RERA, etc. So that’s why we position ourselves for a 13 to 14 month launch.
Having said that, we’ve turned around projects in six months time from the date we got selected as a developer. And further, I think we will also be trying to do the same with our project in Sign, which is the GTB Nagar, because a It is an initiative of mada. It’s a CNDA project which means that MADA is literally working towards making sure that these 1400 people are rehabilitated plus 200 odd shop owners are rehabilitated. And towards the larger public interest, there will be a little more unison in the way of working, a little more push to get the project launched at the quickest.
So internally we are setting targets to complete this project in four years end to end, which will also help create a very healthy bottom line because as you’re aware, you know, delays are what kind of kills most projects in real estate.
Pritesh Sheth
That’s helpful. So yeah, that answers and just to follow up again, so the three cluster developments, windowsi, Malad west and gtb gtb I presume would be launched this year itself, considering how confident you are and rest two next year or all three next year.
Boman Irani
So good question. Gtb definitely because of the push and the support that MADA is offering, would get launched in this year. It is their desire that we launch. It within a quarter itself, but that. Is the speed at which we are working. But let’s say in about six to eight months the project will be launched. And like I said, we want to complete that project in four years end to end and we are gearing up for that kind of development. And again that being a maybe mid month to aspirational category, we are also expecting quicker turnaround in terms of sales to be able to make it possibly a cash flow positive project. But all this is just the effort that we are putting in right now with regards to Zindoshi. Yes, the planning has largely been put in place now.
We will show it across to the members and then from there on we will take it further into the approval stages. Given that this project would take about six months for approvals and thereafter about one and a half to two or three months to get the rest of the paraphernalia out. It would go into the early quarters of the new financial year and Lokhandwala could be a little longer. But our endeavor will be to launch it within 13 to 15 months. And there’s one more cluster which is the Mallard west or I think you left out Lokhanwala earlier.
So the Mallard west also will take that much time itself, maybe 13 to 15 months to kind of get a launch around.
Pritesh Sheth
Sure, sure, got it. And just one last. Sorry, couple of more questions I think. I’m not sure if you mentioned the same issue, but this environmental clearance which has been delayed, where are we in terms of hearing that? From the Court and by what time you think this issue will get sort out.
Boman Irani
So the best news yesterday was that we won in England and the best news today is that we won in Supreme Court. So that also I’m waiting for a third good news also to come along. You know they said to always follows the pattern where the third one also comes. So let’s wait for a day. But no, the one Shakti matter has been resolved with the court accepting the standoff, the developers and the government wherein it states that the center may not be in a position to be able to assess hundreds of or thousands of proposals that come from across the country and the state is better equipped to do it.
So it’s back to the state and I think that will lead to a lot of positive growth of our market as well as of the buyers hopes.
Pritesh Sheth
Sure, sure, that’s helpful. That’s it from my side for now. I’ll jump back into the queue for any further questions. Thank you.
operator
Thank you. A reminder to all participants, anyone who wishes to ask a question may press star and one on their touch tone telephone. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The next question is from the line of Murtuja from Kotak securities. Please go ahead.
Murtuza Arsiwalla
Yeah, hi sir. Thanks for allowing this question. Just a question. You know, you talked about your cluster development where the government supports coming. We’re seeing some, some of the other developers also progressing on slum rehab projects. Is there an increased element of support. From the government coming in in terms of some of these slum rehab projects? Is there more support from the administration that is coming in and would that possibly lead to a lot of supply given the amount of land that we have in the city which is under slums?
Sajal Gupta
Thank you for that question. It’s actually a very good question. I must just reiterate a little bit of history. We got into this business in the year 1996 and from there the two things I remember cyclically, the questions used to be where is the land in Mumbai? And the second question used to be wouldn’t there be an oversupply if this came in? And what we’ve seen is consistently the city has managed to operate well with both. Of course there will be periods of time when the supply may exceed, let’s say a demand of a particular type of particular.
But I have never seen this play out across the market. So just to give you an idea, MMR is one of those unique markets that is, that is across price points, across geography, across types of homes, across you know, just, just the need for a home in that area. And all of these demand a different set of, I would like to say supply coming in right now. With regards to your first question, I think there are two things the government is very strongly talking about. I think we are again facing the problem, aren’t we?
Boman Irani
No, no, we’re good.
Sajal Gupta
Oh thank you. Great. So there are two things the government strongly stands behind. One is a slump free Mumbai. And towards that definitely the administration is happy to work to be able to make that happen. And the second one is definitely to see wherever redevelopments, especially of those buildings like the one that we had at GDP that we’ve tied up leads to, you know, Mada and of course any other governmental agency would also give the same kind of support to get that off the ground. Now that should come to you, lead to the next question that you raised.
Wouldn’t that lead to oversupply? You know, the first thing is there’s a lot of commercial demand in the city of Mumbai. And if you look at a large number of these developments that are getting announced, whether they be sra, whether they. Be Dharadi, whether they be, you know. Mada’s initiative of, well the Motilal Nagar. Which is also something that is so. Huge is all moving towards or largely I would like to say we are rehabilitating about 1200 homes and 200 slum dwellers and 200 shops. I think what we are creating close to around 800 shops. We are creating as many commercial opportunities in that area as we are creating residential. And the absorption is extremely strong in certain categories of the homes itself. So for instance, midmark, which I told you is the 1 to 3 crore segment sees a very strong demand and aspirational which is in the 3 to 7, but I would say 3 and a half to 5 crore segment again sees a very strong demand.
I’m happy to state out here that before we tied up for GTB we had actually carried out a deep study of the entire market and what kind of markets we can serve with the products out there. And it was quite heart warming to see that infrastructure growth in the city of Mumbai has led to a great amount of demand growth in the area. And the fact that commercial development is also improving, it also means that there’s a lot more job opportunities getting created other than this. Mosazar, you are aware that there are various types of, you know, residential demand getting created, student housing being one single ladies accommodation being another senior care being a third and all of these are getting addressed in this upcoming supply that is coming in, I’d like to just state that larger developments, especially the clusters that we are undertaking are all studied for are all in our launches.
We would have known exactly the kind of customer we are addressing. And towards that we take great amount of pain to be selective about the projects that we do and the markets. That we do it in. So GTB allows us to enter sign whereas the Lokhanwala cluster allows us to. Enter Lokhanwala, which I told you is a follow up to the success we’ve. Had with our Versoa launch. So overall we are pretty excited about. What we are doing going forward.
Murtuza Arsiwalla
Thank you so much sir.
Sajal Gupta
Thank you.
operator
Thank you. A reminder to all participants, anyone who wishes to ask a question may press Star and one on their touch tone telephone. If you wish to remove yourself from the question queue, you may press Star and two. Our next follow up question is from the line of Pritesh Seth from Access Capital limited. Please go ahead.
Pritesh Sheth
Yeah, thanks for the opportunity. Again, a couple of questions. First, I think you mentioned in the presentation that whatever we launch this quarter, we have sold 8% within the quarter itself. How would you read the market scenario based on that response to our new launches? Because I think earlier probably we have done well when we have launched projects. So just your read that and then I’ll have one more question.
Boman Irani
Thanks Ritesh. So basically to throw some light on our new launches, fortunately for us all the projects that we launched in this last quarter were in the premium segment. And we’ve seen that about 8% by volume, 9% by value stock has already gotten sold. And you should remember that we always speak about the first six months of sale in which we try and lock in close to around 40%. I would not like to say six months. It is up to the plinth. So if it takes six months or. Eight months or so, we should be. Able to lock in about 40% of the sales in these projects. And given that it’s been a first quarter launch, I think we’ll more than well achieve that in this financial year itself. Going forward, the project launches that are coming up will be in the midmark segment which is the 1 to 3 crore kind of price point. And those like I already mentioned are also extremely high demand products that come out depending on where they are coming out. So if they’re close to, let’s say. A metro station, there’s always a little more or any kind of transport hub. They’Re a little more valuable.
Pritesh Sheth
Got it. And one last for Sajal sir. I Think the gap between gross collections and net collections has widened. For us this quarter it’s around 62% versus usually around 75, 80% since last four, five quarters. Can you just explain the reason for that? You know why that gap and how should we see it going ahead?
Sajal Gupta
The collections that you look at in our collection summary and the collection that you look at in our cash flows under three adjustments. Number one, that in the cash flows we don’t consolidate the collection at our joint venture projects and at our diem projects. For these two categories of the projects we consolidated the actual amount of the money that we received. For the DM business. The DM fee actually that we received we include in our cash flow statement. And for the JV project, whatever the we actually get physical cash in. Is that what we count? The third thing that we met of this collection is with the sales and marketing cost.
So these are the three reasons. There is no such formula as to what this percentage is. Depending on the quantum sections in these categories there could be a difference. But these are fundamentally the reasons. In the cash flow it is a collection which is a beneficial collection to us. Wherein the operational collection, the entire collection that we are working on.
Pritesh Sheth
Sure. For this quarter, what was higher? Was it higher from the JV projects and the net of amount is a little lower?
Sajal Gupta
Yeah. The collections from the JV project and the DM projects was 208 crores. So that was a significant number because our one of the projects at Matunga is doing extremely well both in terms of sales and collection and is contributing well to our collection and therefore well to our cash inflow in terms of dnt.
Pritesh Sheth
Sure, got it. That’s helpful. That’s it from my side.
Sajal Gupta
Thank you.
operator
Thank you. Thank you. Thank you. Ladies and gentlemen. This was the last question for today. I now hand the conference over to the management for closing comments. Over to you sir.
Boman Irani
Thank you on behalf of the management at Rustamji for joining us today. For any further always available one on one to answer them. Thank you for your faith and trust in us. And we look. Good evening.
operator
Thank you on behalf of Access Capital Ltd. That concludes this conference. Thank you for joining us and you may now disconnect your lines.
Boman Irani
Thank you.