Signatureglobal (India) Ltd (NSE: SIGNATURE) Q2 2025 Earnings Call dated Nov. 11, 2024
Corporate Participants:
Pradeep Kumar Aggarwal — Founder and Chairman
Rajat Kathuria — Chief Executive Officer
Analysts:
Adhidev Chattopadhyay — Analyst
Murtuza Arsiwalla — Analyst
Vaibhav Saboo — Analyst
Deepak Poddar — Analyst
Abhishek Khanna — Analyst
Presentation:
Operator
Ladies and gentlemen, good day, and welcome to Signatureglobal (India) Limited Q2 FY25 Earnings Conference Call hosted by ICICI Securities. [Operator Instructions]
I now hand the conference over to Mr. Adhidev Chattopadhyay from ICICI Securities. Thank you, and over to you, sir.
Adhidev Chattopadhyay — Analyst
Good morning, everyone. On behalf of ICICI Securities, I’d like to welcome everyone to the call today.
Today from the management of Signature Global, we have with us Mr. Pradeep Kumar Aggarwal, the Chairman and Whole-Time Director; Mr. Lalit Kumar Aggarwal, the Vice Chairman and Whole-Time Director; Mr. Ravi Aggarwal, Managing Director; Mr. Rajat Kathuria, the Chief Executive Officer; Mr. Manish Garg, the Deputy Chief Financial Officer; and Ms. Preetika Singh from Investor Relations.
I would now like to hand over the call to the management for their opening remarks. Over to you, sir. Thank you.
Pradeep Kumar Aggarwal — Founder and Chairman
Good morning, everyone. Welcome to the quarter two and H1 FY25 earnings conference call of the Signature Global. I am delighted to discuss our operational and financial performance with you all. I hope you have had time to review our investor presentation and result press release. India’s real estate sector is expanding rapidly supported by resilient economy valued at $493 billion. It contributes 7.3% [Phonetic] to the national GDP and account for 18% of the employment, making it a second largest job creator after agriculture.
Looking ahead, the sector is projected to contribute 15.5% to the India’s economy output by 2047 with an estimated valuation of $5.8 [Phonetic] trillion, with the growth is driven by the factors like urbanization, rising disposable income and increased demand for residential and commercial spaces. In Gurgaon, infrastructure upgrades and transforming the landscape, key projects like DMIC, Sohna Elevated Road, Southern Periphery [Phonetic] Road and Dwarka Expressway are strengthening Gurugram appeal as a real estate hub. Within this expanding region south of Gurugram, Sohna region has likely to become the third largest residential market after the Dwarka Expressway or New Gurugram.
A recent report by the Square Yards shows that new residential development in Sohna region have grown rapidly since 2020, surpassing the total supply of the entire previous decade. Signature Global’s integrated township Daxin Vistas located at the Sohna corridor is one of these popular developments. It has been met a strong response recording impressive presale figures.
Let’s talk about our financial results for the first half of the FY25. We have seen an impressive 217% year-on-year growth in presale, thanks to successful launch of key projects like Titanium SPR and Daxin Vistas in Sohna region. In the second quarter of FY25 alone, presales were up by 184% compared to last year, showing how well we are meeting the current market demand. Our revenue also saw rising by the 342% year-on-year in H1 FY25 with quarter two FY25 alone showing the remarkable 650% growth over the previous year due to completion of our few major projects. Additionally, our collections grew by 60% year-on-year in H1 FY25, ensuring we maintain a strong cash flow and robust operations.
Our operational and financial performance underlines our commitment to delivering high quality products and amenities in the mid-income housing and premium segment. Our strategy would be focused on offering the right price, right size and the right location for our real estate product, a combination that continue to strengthen our market position. By focusing on excellence and innovation, we aim to constantly meet or exceed in clients’ expectations. Our strategic initiative and strong execution capabilities not only drive the growth but also enhance operational effectiveness and maintain a competitive point in the industry. Through these efforts, we are building a strong foundation for a successful future for the Signature Global and our stakeholders.
With that, I would like to conclude my remarks and hand over to our CEO, sir, Rajat Kathuria, who will take you through our financial performance in detail. Thank you once again for your attention.
Rajat Kathuria — Chief Executive Officer
Hi. Good morning, folks. Thanks a lot for joining the call this morning. So we have had a fairly good first half of the year. Usually, the perception is that second half of the year tends to be better for real estate companies, but we’ve always maintained that this is hugely supply constrained market and hence we need not go to the kind of typical perceptions. So the H1 was particularly good for us. So during the first half, we launched two large projects. One was Titanium SPR in Sector 71 Gurgaon, which is one of the most premium locations where we have a fairly good amount of land position as of today. So that project saw a tremendous response.
And just towards the fag end of the second quarter or H2, we launched a fairly large integrated township in Sohna, which is called Daxin. And even over there, needless to say that it’s shown a fairly good response and that’s what contributed to most of our sales during the second quarter. So in a span of about 10 days between September 20th and September 30th, we crossed about INR2,300 odd crores of sales just from that one single project. Daxin comprises of two key components. There are actually three components. We have launched two components out of those three components. One is the mid-income housing, where we do these premium floors, and this is like very bread and butter business for us to keep doing these floors, where we recorded sales in excess of about INR1,300 crores in a span of about 10 days.
In addition, for the first time, we launched Industrial/IT-ITeS plots. These were like plots ranging from, let’s say, 600 square yards to 700 odd square yards could be used for multiple sort of commercial purposes. But we saw phenomenal response on that particular product segment as well, which is for the first time, we tested it and we were overwhelmed with the response. So we sold plots which are worth more than INR1,000 crores within that one project and that too within a very short span of time. So fundamentally if you see during the first half, we’ve launched two large projects, both of them saw very good response.
We’ve now achieved almost close to about INR5,900 crores, about INR59 billion worth of sales during the first six months. And it’s kind of a consistent trend. Even if we were to see the trailing nine months, on a YTD basis if were to look at the performance, in the March quarter, we had launched the first group housing project by the name of Deluxe DXP, that saw a good response. In Q1 — Q2 calendar year, we launched Titanium SPR, Q3, we launched Daxin. All these three projects have been seeing good response, and this is the kind of fresh inventory being created. If we leave fresh launches, we literally kind of dried up all our erstwhile inventory. So as we are creating supply, it’s kind of getting absorbed. So on a trailing nine-month basis, we’ve comfortably crossed even INR9,000 crores worth of sales.
So we are clocking on a monthly basis of about — we are at a run rate of about INR1,000 crore plus. On the presale basis which is what we’ve always been talking that Gurgaon is a fairly deep market and one can achieve good sales if we can do consistent supply. So few takeaways effectively on the sales front. We stay confident of our annual guidance, which was of INR10,000 crores. Current sales are happening at an average pricing of about INR13,400 [Phonetic]. So we are — fairly put, we are confident on the embedded EBITDA margins about 35%, which we’ve been talking about. Sales have — are continuing to be good. So we had Diwali at the end of October. So even October as a month, we’ve seen like good festive sort of sales happening. Too premature to talk of numbers but we’ve seen like good response even during the festive season.
Moving on to collections front. During the first six months, we’ve done collections of almost like INR2,100 odd crores. The collections are much higher vis-a-vis the same period in the previous year. But we’ve sold quite a lot during the first half of this year. While that should continue, collections will also spruce up during the second half of the year. So we stay put on our annual guidance as far as collections are concerned. On the operating surplus side, I think very much on predictable lines. Our surplus after incurring hard cost, SG&A, other costs, etc. was almost close to 40%. We strive to achieve about 45% operating surplus by the end of the year, but for the first six months, the numbers stood at about 38% odd.
So our surplus was in excess of INR800 crores, which we used primarily for further land acquisition, about INR500 crores plus went into acquisition of a fresh land in Sector 37D. Close to 3 million square foot of area got added as part of this land acquisition, which will have development potential in excess of INR4,000 crores. In addition to that, our net debt number also reduced by INR140 crores. So our net debt is stable. While we are growing at this phenomenal pace, if you look at the trend ever since we’ve listed, our net debt is in that INR1,000 crore plus or minus range. So given the kind of growth which is going on, with every passing quarter the balance sheet strength is improving. So it’s INR1,000 crores — stands at about INR1,000 crores. This number I think for the balance six month period should come down significantly by the end of the year.
I don’t think this number should be more than INR500 crores to INR600 odd crores. So given the current size and scale of the Company, we feel net debt position is gradually coming down to a near zero sort of level. In addition, I think portfolio remains — looks good. We’ve — some top line numbers, we’ve completed close to about 12 million square foot till date. We’re also in advanced stages of completing another 16 odd million square foot. Next six quarters to seven quarters, we should complete another 16 million square foot. So an average completion timeline of about four quarters to five quarters from today, we are completing significant number of ongoing projects. Also in terms of recently launched or forthcoming projects, we have a robust inventory of about 35 million square foot with a GDV potential in excess of INR50,000 crores.
There are a couple of takeaways, if you look at this 35 million square foot/our current plan position, which doesn’t come on the face of the financials, but I would like to highlight those. First and foremost, we’ve always adopted this strategy to own land rather than doing any sort of service contracts or collaborations per se. So we’ve been working preferably on own land. Bulk of this land is again owned by us. More than 90% of the GDV potential of this 35 million square foot pertains to the Company. So there’s less than 10% which will accrue to any joint development related, pertains to landowners who would have done, my mistake, joint developments with us. So that’s the second key aspect.
And thirdly most of the land is already paid for. So there could be minor or minuscule payments of INR100 crores, INR200 odd crores, but by and large, the land is fully paid. So in a way as you look at our portfolio, since land is owned and paid for, as we will collect more money from our customers, a lot of it will be available to the Company for either future expansion or for debt reduction. A fairly small percentage of that particular collection will accrue to any particular landowners who are currently working with us. So that will continue to make our balance sheet and cash position increasingly healthy. As far as completions are concerned, we are going on track. Our annual guidance is to complete projects worth INR3,800 odd crores. We always anticipated that this will be happening more towards the second half of the year. So Q3 and Q4 should witness completions much more than the first half. So we stick to our guidance that we’ll complete projects worth INR3,800 crores and hence to look at profitability on an annualized basis will give a far superior perspective than looking at the first half. And on the debt, I said a little while back that we do anticipate to bring it down further. And hence that principle which we’ve been talking about that the debt should never be in excess of 0.5 times the annual operating surplus, I think will comfortably be getting met. So by and large, if I have to say we are sitting on a good launch position.
Our guidance was to launch projects worth INR16,000 crores for the year. We’ve done launches worth INR9,000 crores for the first half. For the — there is — so even in Daxin, we’ve launched part of the project. The overall potential is actually close to about INR8,000 odd crores. So by end of Q3, we would have achieved most of our launch guidance of about INR16,000 crores. It could be INR15,000 crores, INR16,000 crores in that range we would have done, the launches which we were planning for this year.
And even in terms of sales, we look comfortable for the INR10,000 crore sales for the year. Embedded EBITDA, we are fairly confident and comfortable with regard to 35% embedded EBITDA. So by and large, I think we are sticking to our core strength of focusing on Gurgaon, which we feel is a fairly underserved market. There’s a lot of work to be done, and we are confident at the end of the first half of the year with regard to the guidance which we had given at the start. So by and large, that’s about it from the numbers side.
Happy to answer any of your queries or questions. Thank you.
Questions and Answers:
Operator
Thank you very much. We will now begin the question-and-answer session. [Operator Instructions] The first question is from the line of Murtuza Arsiwalla from Kotak Securities. Please go ahead.
Murtuza Arsiwalla
Yeah. Hi, gentlemen. Congratulations on the sales performance. A couple of questions is one, if I look at the amount, you’ve had fairly successful launches and to that extent, incremental sales would likely depend on new launches because you don’t have too much of unsold inventory. While you have given us the broader guidance on the launch profile for the year, can you give us some color on specific projects and timelines of these projects that could be launched over the next few quarters that helps us sort of get a better handle on the sales trajectory? That’s one.
Number two, you talked about embedded margins of 32% in ’24, 35% in first half ’25. It’d be useful if you could give us on the cost side for the remaining 65% of costs, let’s say, what is the composition between construction costs, approval costs and land spends generally over the current sales that you are doing? And overall, when we speak with investors, there’s generally a concern with the kind of price appreciation that you’ve seen in Gurgaon that market may sort of have picked up. So any color that you could give, not just on your projects but on the overall Gurgaon market sort of would be useful? So these are the questions from my side. Thank you.
Rajat Kathuria
Sure, Murtuza, thanks for your question. So Murtuza, ballpark numbers for this year are targeted launches are of INR16,000 crores, of which there are two larger projects which are getting launched. We’ve done Phase 1 in both Titanium SPR as well as Sohna, which is Daxin. Both these projects have Phase 2 launches as well which are also happening within this financial year. Put together, these two projects will have a launch potential of excess of INR13,000 plus crores.
So in third quarter/early Q4, we would have completed Phase 2 launches of both of these projects as well. In addition, we have another township project called City of Colors in Manesar, which we launched during the October month. So that will come as we update the Q3 numbers. That’s already happened. We’ve also launched a project by the name of DXP Twin Tower, which also contributed a little to Q2 numbers. But that’s again a project worth almost in excess of about INR2,000 odd crores. And there’s another launch in Sector 37D, which is coming up. So by and large, by December, you would see this entire INR15,000 crores to INR16,000 crores worth of inventory getting launched. Hence it would be good for us to achieve sales of this year and it will carry on into the coming year as well. So that’s on the launch front.
Your second question was around the cost side of this balance 65%. So on the cost side, we’ve been fairly, I would say, fortunate, our land cost is quite low, which is in current selling price terms less than 10%. So land price including approvals is not crossing 10% of the sale value. Being more precise, our land costs on a standalone basis is lower than INR1,000 a foot of FSI on a portfolio wide basis. It could be slightly higher or lower on a specific project wise basis. But on a portfolio level, it’s less than INR1,000 a foot, which means that including approval cost, we are not spending more than 10% on land plus approvals. Ballpark construction is not going to exceed anywhere between 40% — 40% to 45% of the overall sale value, and you could assume the balance 10% for selling, marketing, SG&A, contingency as well. So that’s why the 65% is like a well buffered sort of cost target for whatever sales are currently happening.
To your third question on the Gurgaon market, I would say if you look at it on a whole decade basis, starting year 2012, 2013 till date, I don’t think the market has gone up more than an inflation linked sort of a percentage. Yes, a bit of rise happened during 2022 and 2023. On the price rise basis, markets again found this kind of, by and large, a stable position. I don’t think there’s any sort of steep spikes happening in the market right now while the volumes tend to be reasonably good. So — and even if you look at the overall perspective, see, our sales per square foot basis, our realization is at about INR13,500 a foot.
Substance over form, it doesn’t seem as if something is really expensive for the kind of product being offered. The product which is being offered is actually comparable to any product being launched, not in like uber luxury segment but in any mid-income or premium segment across the country. So we feel INR13,000 a foot to INR14,000 a foot is a fairly good price both from the producer as well as the consumer perspective. So we don’t feel much of a challenge with the current pricing — price point in the market.
Murtuza Arsiwalla
Rajat, if I could just follow up with two more. If you could give some sort of color on what is the growth that you are targeting, let’s say, for ’26 and ’27 on the sales side, any ballpark numbers that you may want to leave us with? And just to be certain when you look at the cash flow statement that you put out for first half ’25, the construction expenses include approval expenses or that is clubbed more with the land spends?
Rajat Kathuria
So 10% is, I think, land and approval, by and large, both put together. Construction, yeah, I think, 40% is good for construction. It’s not going to cost more than that. As far as growth is concerned, Murtuza, I think, we’ve not given any formal guidance as yet. But yeah, I think 25% sort of spike on an annual basis is something quite achievable, which will be through mix of both value growth and volume growth. Some 8% to 10% value growth is something which one should envisage even in the years to come and the balance should come from a volume basis.
Murtuza Arsiwalla
Sure. Thank you.
Operator
Thank you. [Operator Instructions] The next question is from the line of Vaibhav from Nippon AIF. Please go ahead.
Vaibhav Saboo
Yeah, hi, thanks for providing the opportunity and congrats on a good set of results. So a couple of questions from my side. First on Daxin, like you have mentioned that the full project is around INR8,000 crores GDV. So this includes — so how much is residential and how much is the industrial plots? And second is that like INR23 billion, which is the — sorry, INR23 billion, which is the sales which has been achieved. So this includes the INR10 billion from industrial plots or is it like INR23 billion residential?
Rajat Kathuria
Yeah, sure. So, Vaibhav, thanks for joining the call. So in Daxin, by and large, you could assume a 75:25 split between residential and industrial plotting component on an overall basis. As far as the sale which happened during the last quarter, INR1,300 plus crores came from the residential component and INR1,000 crores came from the industrial plots component.
Vaibhav Saboo
So just to clarify when you said INR25 billion, so that is like a INR50 billion launch after which INR25 billion was residential, INR25 billion was commercial. Is that correct?
Rajat Kathuria
No, I think the residential component is higher. It’s about 65% component of the project launch was from the residential component. Industrial, it was 35%. Putting it conversely, see a lot which we — or whatever we launched in the industrial component, a much higher percentage of that got absorbed in a very short span of time.
Vaibhav Saboo
Understood. And just secondly on the collections front, this quarter seemed to be a little bit muted. So any guidance as how we should see it coming out for the rest of the year? And just one last question if I could add. The construction expenses, so in the financial statement, the cost of material seemed to be nearly double that of the last year. So have we like started construction activity on any particular project which has led to a substantial increase? So just these two end questions from my side.
Rajat Kathuria
So on the collections front, see, quite a bit of sales for this year which you’re seeing for the entire period has happened in a very short span of Q2 towards the end of second quarter. So collections are expected to pick up. Q3 will be better than second quarter and Q4 will be even better. So that’s where we are fairly confident of our annual target as far as collections are concerned. As far as the cost side is concerned, I’ll look at the numbers and we can maybe respond to you if you want to drop in the line, we’ll kind of respond to it.
Vaibhav Saboo
Sure. Thanks, and all the best.
Operator
Thank you. [Operator Instructions] The next question is from the line of Deepak Poddar from Sapphire Capital. Please go ahead.
Deepak Poddar
Yeah. Am I audible, sir?
Rajat Kathuria
Yeah, Deepak, please go ahead.
Deepak Poddar
Yeah. Yeah. Thank you very much, sir, for this opportunity. Sir, I just wanted to understand, I mean, ideally you mentioned that there’s a revenue recognition that we target remain intact of INR3,800 crores because of higher booking and collections — higher delivery and collections that you expect in the second half. So about the second half, we are still targeting about close to INR2,600 crores because INR1,200 crores we have already did in first half, right?
Rajat Kathuria
Yes, that’s correct, Deepak. So I think each of the quarters, the recognition should be in excess of INR1,000 crores.
Deepak Poddar
In excess of INR1,000 crores. And what about the profitability? I think on an annual basis we were of the view that even after considering the cost of the recent launches at 20% EBITDA margin is what something that one can achieve on a reported basis. Now given our first half profitability is quite muted, so how do we see that, I mean, in terms of annual guidance, are we still maintaining this 20% or is there any downward revision to that?
Rajat Kathuria
So I think we’ll have to wait and watch on that. While at a product level basis, we are confident that these are all profitable projects which are undergoing a completion, but in parallel, we are seeing bit of spike on the SG&A, given the current level of sales because quite a bit of expenses get expensed out in the year which we are growing, in the year which we are incurring those, and they don’t get capitalized. So a lot of SG&A expenses are also impacting the EBITDA margins.
So effectively this gap of sales which is kind of comfortably crossing INR10,000 crores for the year vis-a-vis completions, which will be at about 40% of the sales for the year. There’s a bit of a gap in the SG&A expenses because the entire machinery platform is working for much higher performance vis-a-vis what is getting recognized. So I won’t give a guidance on this entire sales. But yes, I could say that this number is definitely improving. As the overall volume of completion will improve, the percentage will also improve because the expenses will get netted off against a much larger denominator, which is revenue recognition — revenue recognized.
Deepak Poddar
Okay. Okay. I got it. And — I got this. And my final query is on — I mean, I was just going through your presentation. I think it was mentioned somewhere that we are looking at revenue recognition of around INR11,000 crores over FY25 and FY26. Given FY25, we are looking at INR4,000 crores. So FY26, INR7,000 crores would be a right estimate to look upon to?
Rajat Kathuria
Yes, we will be targeting to complete all the balance projects in FY26, and we’ll roll out a very granular sort of number as we close this year. But by and large, yes, we stick to that commitment.
Deepak Poddar
Understood. And our ongoing project is close to about 15.8 million square feet, right?
Rajat Kathuria
Yes. Yes. Ongoing as in the ones which are at very advanced stages of completion, which add up to about INR11,000 odd crores of revenue potential. In addition, now we have launched almost 10 odd million square foot, which we’ve done over the last three quarters.
Deepak Poddar
Correct. Correct. Correct.
Rajat Kathuria
Yeah. Yeah. So — but that’s also technically ongoing now. But yes, that’s…
Deepak Poddar
But those are recent launches. I think they’re categorized under recent launches, right? That 9.5 million square feet kind of project, right? Okay. Fair enough. I think that’s it from my side. All the very best to you. Thank you so much.
Rajat Kathuria
Thank you, Deepak.
Operator
Thank you. [Operator Instructions] The next question is from the line of Abhishek Khanna from Kotak Securities. Please go ahead.
Abhishek Khanna
Hello?
Rajat Kathuria
Hi, Abhishek.
Abhishek Khanna
Hi, sir. I just wanted to check the industrial plots that you’ve sold, INR1,000 odd crores in the current quarter and the ones that would be planning to sell in, let’s say, the second half of the year or going forward also, these would get recognized in the P&L almost immediately. Is that how it works?
Rajat Kathuria
No, no, Abhishek. I think we’ll have to deliver these projects and collect almost the entire revenue of these projects. So one should anticipate that completion timeline of about 18 months to 24 months. So this should come under recognition in FY27.
Abhishek Khanna
So this will also come in FY27. But you have to build anything on these plots? Isn’t it empty plots that you deliver to your customers?
Rajat Kathuria
No, but basic infrastructure has to happen. Roads, lighting, sewage, waste treatment, that basic infrastructure development has to happen and then certain completion of — completing those trunk infrastructure has to be obtained from the local authorities. Only then you can hand over the position to the customers.
Abhishek Khanna
But actually…
Rajat Kathuria
So it does take about, yeah, 18 odd months.
Abhishek Khanna
Sure. And when you say 25% of this INR75 billion, INR80 billion of GDV at Sohna is for this industry. Is it all industrial plots or does that also include any commercial component in it, commercial retail?
Rajat Kathuria
So there are three components, there is residential, there is industrial and there is retail, typical convenience retail which is there. So we’ve so far launched residential and industrial plots. Retail is something which we intend to do in future.
Abhishek Khanna
And would that be 5% or more than that?
Rajat Kathuria
In value terms more than 5%. In — so that’s also about 700,000 square foot to 800,000 odd square foot of spaces will come up. So that’s also you could say a INR1,000 crore plus contributor on a GDV basis.
Abhishek Khanna
Got it. Okay, perfect. Thanks a lot.
Rajat Kathuria
Thank you, Abhishek.
Operator
Thank you. The next question is from the line of Adhidev from ICICI Securities. Please go ahead.
Adhidev Chattopadhyay
Yeah. Thank you for the opportunity. Just a few house — bookkeeping questions. Firstly, could you let us know any estimated GDV for the balance inventory which we are planning to launch over next two years to three years across our ongoing and forthcoming projects, the 50 odd million square feet, right, which you have given in your presentation, the balance value or anything guidance you could give us?
Rajat Kathuria
So Adhidev, see, after we have done our launches for this year, you should assume that we still have owned/like tied up land where we can do in excess of INR35,000 crores in terms of GDV value, which we’ll launch over next two years.
Adhidev Chattopadhyay
Okay. Okay. Over the next couple of years.
Rajat Kathuria
Yes. On a sustained basis, we’ll be able to do launches of this magnitude and keep replenishing land also, both tend to happen in parallel. So we keep looking for land and we keep launching projects. So, yeah.
Adhidev Chattopadhyay
Yeah. Yeah. So actually, yeah, that was my next question actually on the land replenishment. So considering that we have launched or almost to be launching INR16,000 crores, right, GDV of projects this year and maybe you said INR35,000 crores over the next couple of years. So to replenish INR16,000 crores to INR17,000 crores annually, right, what are our plans on spend on land annually and what are the locations we are looking at other than the ones we are already established in currently?
Rajat Kathuria
So, see, we’ll continue to acquire in the positions which are already established because since we are able to achieve sales in these locations, the primary focus will remain on areas where we are selling well or if we step back a little and look at it, see, there are certain core markets where our customers are buying product from us in this broader mid-income theme. So we do intend to kind of do a sustained supply in these markets rather than doing sporadic sort of launches. In addition to that, see, this entire plotted theme is playing out quite well. We’ve done one launch in this quarter. We’ve technically done another launch in Q3 as well.
So around this also we are looking at doing some acquisitions or collaborations as it may pan out. So you could see more of this activity as well in the coming year, and eventually at some stage, it becomes like a contributor to our annual target and that would be a bit of addition to what we’re currently doing.
Adhidev Chattopadhyay
Sure. Sure. And there was some obviously media article quoting that you’re also looking at the Noida market, right, for a possible entry next year. So any update or development on that?
Rajat Kathuria
Not yet. We continue to look at opportunities, but — and we’re evaluating it, but nothing in particular as of now.
Adhidev Chattopadhyay
Okay. Okay. And my final question is on our construction contracts, right? Obviously, we have been given construction contracts to a lot of reputed third-party contractors right now for our project which we have launched. Could you just let us know what is the scope of the construction like they do the entire finishing works as well or that will be undertaken separately by us across various vendors at the end, what is the plan over here on the deliveries?
Rajat Kathuria
So see as a broader strategy, Adhidev, see, there’s about 16 million square foot which is at advanced stages of completion. So this is, by and large, being handled by our team, wherein we have the responsibility of doing the entire procurement, time management, quality management, etc. And only labor contracts are being given for this entire 16 million square foot of completion. So you could say that while we are acting as a developer, we are also acting as master EPC player contractor for this entire advanced stage inventory completion.
As far as some of these newer projects are concerned, which are more in the luxury sort of segment and where we want to maybe even more particular on the quality aspects, we’ve chosen to onboard some large EPC contractors. So it’s a very project wise situation, Adhidev. So as far as Deluxe-DXP is concerned, Ahluwalia Construction is going to do the entire structure as well as finishes, whereas on the other project, right now, we have awarded them a contract only for the structure aspect and Capacite [Phonetic] is also — and ACC, we’ve also onboarded for our projects. So we are adding good quality EPC contractors as well to ease out our sort of completion timeline and commitments.
Adhidev Chattopadhyay
Sure. Sure. Sure. Sure. No, that’s pretty helpful. Thank you, and all the best.
Rajat Kathuria
Thanks, Adhidev.
Operator
Thank you. As there are no further questions, I would now like to hand the conference over to the management for their closing comments.
Pradeep Kumar Aggarwal
Thank you.
Rajat Kathuria
Thanks a lot.
Pradeep Kumar Aggarwal
Thanks a lot. Thanks, everyone. Thank you.
Rajat Kathuria
Thank you, everyone.
Operator
[Operator Closing Remarks]