Signatureglobal (India) Ltd (NSE: SIGNATURE) Q3 2025 Earnings Call dated Feb. 11, 2025
Corporate Participants:
Pradeep Kumar Agarwa — Chairman and whole time Director
Rajat Kathuria — Chief Executive Officer
Analysts:
Saishwar Ravekar — Analyst
Pritesh Sheth — Analyst
Deepak Poddar — Analyst
Adhidev Chattopadhyay — Analyst
Abhishek Khanna — Analyst
Unidentified Participant
Presentation:
Operator
Ladies and gentlemen, good day and welcome to Signature Global India Limited’s Q3 FY ’25 Earnings Conference Call hosted by ICICI Securities. 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 the conference call, please signal an operator by pressing star then zero on your touchstone phone. Please note that this conference is being recorded. I now hand the conference over to Mr Shaishwar Ravekar from ICICI Securities. Thank you, and over to you, sir.
Saishwar Ravekar — Analyst
Thank you. Good morning, everyone. On behalf of ICICI Securities, I would like to welcome everyone to the call today. Today from the management of Signature Global, we have Mr Pradeep Kumar Agrawal, Chairman and Woltime Director; Mr Rajit Kumar Agrawal, Vice-Chairman and Time Director; Mr Ravi Agrawal, Managing Director; Mr Agrawal, Joint Managing Director and Woltime Director; Mr Rajat Katuria, Chief Executive Officer; Mr Sanjeev Kumar Sharma, Chief Financial Officer; and Ms Singh, 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 Agarwa — Chairman and whole time Director
Thank you,. Good morning, everyone. Welcome to the 3rd-quarter and Nine-Month financial year 2025 Earnings conference Call of Signature Global. I’m happy to discuss our operational and financial performance with you today. I trust you, you have had the opportunity to review our investor presentation and results press release. The Indian real-estate sector is witnessing great time increased by recent policy development. With the union budget 2025 government indicate support for housing sector growth with an allocation of 54,832 crores for Bradhan Manthri and INR1 lakh crore for urban Challenge fund allocation to transform cities into growth hubs and INR15,000 crore fund launched to complete a 1 lakh additional units under the Swami Fund II.
Adding to this positive energy, the RBI recent decision to reduce the repo rate by 25 basis-points to 6.25% is expected to enhance home loan affordability, particularly benefiting the affordable and mid-income housing segment. These developments are particularly significant as they align with the increasing housing demand we are witnessing across key markets. This supportive macro-environment is especially evident in the Delhi NCR region, where infrastructure development is reshaping the real-estate landscape. The transformation of the South, particularly along with the SPR and Sona corridor has remarkable. These areas have emerged a preferred destination for homebuyers driven by the improved connectivity, social infrastructure and plant development.
This growth territory aligned perfectly with our strategic focus on these high-potential markets as demonstrates by our overwhelming response to our recent launches in these areas. Let me share our financial highlights for nine months FY ’25, we have achieved strong pre-sale of INR120K Bharazar Arso of INR1,200 INR800 billion, 128 billion in entire calendar year 2024, the book profit-after-tax of the INR40 crore rupees in nine months FY ’25. Also, we have our best-ever Nine-Month performance with a pre-sale of INR86.7 billion, representing an impressive 178% growth year-on-year and this exponential performance was driven by successful launches including Titanium SPR and Dakshin Vistar on Suna corridor.
Our operational and financial performance underscores our dedication to delivering quality product in mid-income, housing and premium segment. Our strategy continue to focus on offering that right product at the right price point in the right location. A combination of — has always supported our market position. With that, I would like to conclude my remarks and hand over to our CEO, Mr Rajesh Kathuria, who will take you through our detailed financial performance. Thank you for your attention.
Rajat Kathuria — Chief Executive Officer
Thank you,. Good morning, everyone, and thanks for taking our time this morning for our investor and quarterly results. So like in the past, the core of our strategy has always been to focus on mid-income housing. We’ve kept our performance on the same lines. We are keeping our focus on mid-income housing. By and large, the consumption trends remain quite steady and our hypothesis that supply creation does lead to demand creation is kind of holding good because during these nine months also, we’ve launched several new projects across our core markets.
Now whether this was project by the name of Titanium SPR or Dhakshin in the sona market, City of Colors in Mana Sar or two entire DXP, which is just next to the Expressway. So all of these core markets, we’ve created a sustained supply. We’ve come up with projects one after the other in tandem and that has resulted in very strong demand creation. By and large, all these projects have shown fairly good sort of customer enthusiasm and participation. So a lot of our sales have been driven out of this new supply which we’ve created. And to add to that point, even in our previous projects, we have very little unsold inventory.
So that thesis that if you come up with projects at the rightful sort of price points and capital value per unit, there is ample and more demand for these units. So even for the nine-month period, if you look at some numbers, we’ve roughly sold at about — roughly sold around 3,500 odd units with an average ticket size of about INR2.5 crores. With the quality of product and the location of these projects, the price point is very well-accepted in the local market. And given that the units are being offered from a fairly large and you know a developer with strong track-record, we receive good traction from the customers. If you look at numbers in terms of pre-sales for the previous quarter, we did about INR27.7 billion. All these amounts are in iron or billion.
So for the quarter, it was 27.7 for the first-nine months, it was close to INR86.7 billion. And most interestingly, if you look at the trailing-12 months, which is the full calendar year 2024, the number stood at some INR128.8 billion, which shows That we’ve crossed a comfortable INR1,000 crores per month sort of sales performance. While this was the overall quantum in terms of realizations, if you look at it, our average per square-foot realization was in excess of INR12,700 odd rupees per square-foot. At a portfolio level, this is roughly 8% higher than what we achieved for the full financial year, which like for FY ’24, that number was closer to 11,700. So the pace of increase is lower, but still given that there is a lot of demand for mid-income homes, we are still seeing a price rise happening in the market. These numbers are at a portfolio level. Even at project-level for us, we’ve seen similar sort of trends in terms of project-level, price increases, which we’ve managed to pass-on to the customers during this period. Our collections are improving on a quarterly basis. For this nine-month period, the overall collection was higher than INR32 billion — INR32 billion Indian rupees. And interestingly, we’ve created a good surplus. Our surplus — operating surplus after paying taxes is almost now touching 40% of the collections. It was 38% to be precise. But on this INR32-odd billion of collections, we’ve created a surplus which was in excess of INR12 billion, which was deployed quite evenly between new business developments, which is effectively land acquisition or land-related advances or towards net-debt reduction in debt servicing. So during these nine months, we added about close to 3 million-square-foot of developable area in sector 370, which is again one of our core markets. After these nine months also, during this quarter, we’ve announced it in the month of January that we’ve acquired another 16 acres of land adding another 2.7 million-square-foot of space in sector 71, which was — this land was earlier held in a collaboration — under a collaboration agreement, which we’ve now acquired. But getting back on the surplus side, out of this INR1,200 odd crores or INR12 billion of surplus, about INR570 crores stroke — INR5.7 billion went towards land acquisition. About INR4.2 billion went towards reduction in net-debt and about INR2 billion went towards debt servicing. So that — this is the reason you’ll see that our net-debt has also fallen despite growing operations, growing pre-sales numbers, a growth in revenue recognition completions, you’ll see that our net-debt number is kind of gradually on an year-on-year basis is kind of getting down. Now while net-debt is going down, our portfolio remains fairly robust. Till-date, we’ve completed projects equivalent about 13.5 million-square-foot. There is another 11 million-square-foot, which is at an advanced stages of completion. At the start of the year, this number was closer to 16 million. We’ve come down to 11 million now. And over the next five to six quarters, this entire 11 million-square-foot should be getting completed. Besides this, there is another 35 million-square-foot, which is either at early stages of launches stroke or it is yet to be launched. So there’s about 13.5 million-square-foot which we’ve launched over the last calendar year. So even if you look at the launches during this calendar year, we’ve done launches closer to almost 180 billion. This includes January to March ’24 as well. So this 13.5 odd million-square-foot is fairly early in terms of its lifecycle. But besides this also, there is another 21.6 million of land land stage sort of inventory which we are sitting on, which has a staggering GDV potential of about INR350 billion Indian rupees. So we still have good amount of unlaunched projects, which we launch basis market conditions and hopefully over the next two, 2.5 years. If you look at the financial performance versus completions, we’ve — sorry, prior to that, we will just as of today, stick with our guidance, whether it’s in terms of launches where we’ve done launches worth 35 billion over the first-nine months. So we are hopeful and we are keeping the launch number constant. Our pre-sales, which is at INR87 billion, we hope to comfortably surpass INR100 billion on that front. On collections and completion basis revenue recognition also, we are expecting a fairly good quarter and hence, we’ve kept the guidance constant at INR60 billion and at INR38 billion respectively. In terms of profitability of the products being sold, we are maintaining that the implied EBITDA margin of all this sales which is currently happening will be at 35% and hence will yield a very strong PAT level margin for the company. Besides that, in terms of revenue recognized, so we roughly completed around 2.7 million-square-foot. And approximately the realization per square-foot on the inventory which got completed and hence is getting reflected in the P&L account was sold at about INR7 odd thousand a foot. So there’s a huge difference and hence, there is a delta in the underlying profitability. So at this INR7,000 foot sort of product which kind of got completed, we’ve done revenue recognition of close to INR20 billion on which the GP margin was at 27%, EBITDA was at 12% and we’ve started coming onto a positive zone in the PAT at a PAT level. So we did a positive PAT of about INR40 crores on this. On the net-debt number as well, we are very hopeful of sticking to the guidance where our net-debt should stay lower than 0.5 times the operating surplus created by the company on annualized basis. So just during these nine months also, we’ve created a surplus of about INR12 billion, while the debt — net-debt stood at INR7.4 billion. So on an annualized basis, we expect the operating surplus to be much higher and net-debt to be lower than the current levels by the end-of-the year. So hence that guidance should get met. In terms of stock performance, of course, I think 2024 was a good year. Markets are quite choppy for last two to three months, but on our calendar year ’24 from 1st of January till 31st of December, we’ve almost delivered about 50% sort of returns on the stock. There’s been very good support from the foreign institutional investors and we continue to see support from the domestic investors as well. So by and large, we are sticking to our strategy of mid-income housing, working on a build-to-sell model. We feel that Gurgau market is you know, achieving — can achieve much higher scale and in some manner, we are working on category creation rather than just looking at it as what’s the market and being what our share, there is like a full host of category of mid-income homes being created and with strong supply creation, demand is kind of you know, falling through. One added positive at this stage is that in the Delhi recently, we saw BJP government kind of coming and the market anticipation is that — so when we talk of Delhi NCR, usually a lot of development has happened either in Gurgau or in Noida. And this is for almost last two decades since ever since the foreign direct investment in real-estate was opened up back-in 2005, Delhi capital region has not seen a lot of new developments, whether it be office spaces or residential spaces. And lot of that development was happening on the outskirts. But the market anticipation is that with today BGP government both in-center and at the state-level, the policy framework should enable development within Delhi, which has lot of land closer to some of very large middle-income housing areas like Dwarka or Rohini, there’s lot of land betting it, which is in Delhi, but was not seeing any development, but we are hopeful that policy framework should enable development in those regions. And we’ll try and participate in that development within the Delhi City, which looks like a fairly big opportunity To us as of today. So these are the broad comments. Happy to answer to any questions which you may have.
Questions and Answers:
Operator
Thank you very much, sir. We will now begin with the question-and-answer session. Anyone who wishes to ask questions may press star in one on the touchstone phone. If you wish to withdraw yourself from the question queue, you may press star in two. Participants are requested to use only handsets while asking a question. Ladies and gentlemen, we visit for a moment while the question queue assembles. You may please press star and want to ask questions. The first question is from the line of Pritesh Sait from Axis Capital. Please go-ahead.
Pritesh Sheth
Yeah. Thank you for the opportunity and I think congrats on a great nine months meeting most of the guidance across parameters. Just first question on cash flows where probably only metric where we seems to be lagging a bit. So how has been Q4 till-date, I mean, 1.5 months already through that we are — and what’s giving you confidence of achieving that INR6,000 crore guidance? Is it like already we have started getting good chunk of cash flows or it’s going to be back-ended with the kind of completions which are expected in Q4? So your thoughts on cash flows or collections, I would rather say.
Rajat Kathuria
So Pritesh, thanks for the question. So Pritesh, it’s mix of both the factors. There are quite a few completions which are lined-up for this quarter and collections in general are improving at a steady pace on a Q-over quarter-on-quarter basis. So both of these things are keeping us confident to keep the guidance constant. And even at a more fundamental level, all the same — I won’t say all but bulk of the sales which we have done on a life-to-date basis are mostly on a construction-linked plan basis besides very few aberrations. So effectively, see, if sales are happening, collections are bound to happen. And a lot of sales we have done is towards end of some of the previous quarters, like you know, in the June quarters it was not towards the end of June, likewise in September, while the previous quarter was quite well spread.
So we expect collections to improve significantly during this quarter, and that’s why we’ve kept the guidance number constant. Got it. Just a small follow-up on that. So probably till now, if I see monthly run-rate was roughly INR300 odd crores of collections every month, you know, has that already started increasing to, let’s say, INR400 crore, INR500 crores a month for Jan or probably it will still be back-ended in that sense in the quarter. So should prefer not to spell out numbers beyond what we’ve released. But yes, I think for this quarter, the collections will be higher — much higher than the previous one.
Pritesh Sheth
Fair enough. Got it. And second on the diversification bit beyond Gurgaon, you know, obviously, you stated that Gurgaon has lot of opportunity, but Delhi is kind of now opening up as an opportunity for us. So what’s kind — what’s the scope for us in terms of development there? Would we be looking at the land pooling policy as a scope of development or we will be going for redevelopment of those old colonies, which the new government is probably targeting to give approvals on or so what’s the sense on that?
Rajat Kathuria
Yeah. So see, policy framework first and foremost will take shape, you know. So there are lot of areas where greenfield developments are possible. So there are Delhi is broken up into newer zones where there is still lot of open areas. So it will throw up a lot of opportunities on the greenfield development side. And you know, what we expect or anticipate for the company is like in Gurgaon, we’ve picked-up three markets where we have three micro markets where we do kind of a sustained supply. Hopefully in times to come in Delhi also, we’ll pick more than one kind of micro-market where we’ll again try to capture like a significant position, so that we stay relevant within that micro-market and work-over there on a longer span of time. So hopefully, it will add couple of micro markets for us where we’ll create positions and you know, to sustain supply of products.
Pritesh Sheth
Sure. Sure, sure. Got it. And just one small follow-up again there. I mean, we haven’t seen too much of potential in what Delhi presents as a residential real-estate. Maybe four, five years down the line, do you expect Delhi for you would be as big as what it is Gurgau right now or probably, even if it’s half of it, you’ll be happy with that kind of number from Delhi.
Rajat Kathuria
Okay. So Pritesh, we’ve never seen or rather no one seen action ever in Delhi because there was no relevant kind of bylaws through which someone could have developed new land. DDA was always auctioning very few parcels of land, which were very expensive and hence doing mid-income housing was not very doable. These are smaller parcels of land of one, two, three acres, five acres. And larger parcels were often developed by DDA at an aggressive — in an aggressive way till a point in time. But somewhere last one or two decades, DDA has not done a lot of development, a lot of open — as in private land has not come into development.
So to answer to your point, it’s a little premature to say how large will it become, but definitely this is like a sizable sort of an opportunity. It could be anything, you know, whether it be half times the existing signature or becomes one-time the existing signature. It’s tough to say at this stage, but yes, this is like something which is meaningful. This will not be like seeding a new market by buying 10, 15, 20 acres of land. It’s not that sort of a scenario we are talking about here.
Pritesh Sheth
Sure. Got it. That’s really helpful. That’s it from my side and all the best.
Rajat Kathuria
Thank you. Thank you, Pritesh.
Operator
Thank you. A reminder to all the participants to please press star and want to ask questions. The next question is from the line of Deepak Poddar from Sapphire Capital. Please go-ahead.
Deepak Poddar
Yeah. Very good morning, sir, and thank you very much for this opportunity. So just wanted to understand, I think in the presentation and in the speech also, you mentioned that we aim to deliver these ongoing projects in coming five to six quarters, right? Yes. So that is about 11 million square feet odd. So what would be value of this 11 million square feet-in rupees crores? So this will be between INR7,000 crore to INR8,000 crores. So at ASP of INR7,000 crores INR8,000 crores. So what effectively it means that this total value stands at which we expect to deliver is close to about INR9,000 crores, right?
Rajat Kathuria
No, it’s — yeah, closer to INR7,000 crores INR8,000 crores is what effectively will be the output of this 11 million-square-foot, closer to INR8 odd 1,000 crores.
Deepak Poddar
INR8,000 crores. So out of this INR8,000 crores, you expect around I mean, what INR1,800 crores to be realized in this quarter itself? I mean, because we are already halfway through the quarter, right? I mean you would have a good visibility because you are maintaining your guidance of INR3,800 crores in this year 2000, we have already done in nine months.
Rajat Kathuria
So Deepak see, in terms of completions, we are quite advanced on multiple projects. But often in terms of revenue recognition, it’s quite a binary situation because at the end-of-the quarter, you should have completed and collected more than 90% from the customers. So it tends to stay binary. By and large, this kind of completion is happening within the 12-month span, whether revenue recognition happens before 12 months or little after 12 months is something we don’t ourselves note till the time when the quarter ends and we take stock of it. But our activity level has been there to kind of achieve these kind of completion targets.
Deepak Poddar
Okay. And what sort of revenue recognition we are targeting for next year, FY ’26?
Rajat Kathuria
FY ’26, a little early to comment, but yes, it would be at least 50% or 40% to 50% higher than what we’ll end-up achieving for this year, at least 40% higher, if not.
Deepak Poddar
At least 40% higher versus FY ’25.
Rajat Kathuria
Yes.
Deepak Poddar
And just one last thing on your — I mean, we are talking about embedded EBITDA margin of 35% on current sales, right?
Rajat Kathuria
Yeah.
Deepak Poddar
So I mean — but there is always a huge difference between what you report versus what — what is embedded. I mean, I mean in future, will we ever see a convergence of your embedded versus your reported margins? I mean any thought process on that would be helpful. I know, I mean, current whatever nine months we have done, it’s done at a lower ASP of 7,000 odd and these embedded what you’re talking about is at 11,000, maybe 11,000 per square feet. But ideally when this pre-sales was happened, at that time also embedded margins Margins was at least 20% 25%, right? But it doesn’t translate to your reported EBITDA margin. Yeah. So thought would be helpful.
Rajat Kathuria
That’s a very good question, Deepak. And I’ll also try to answer it in a very fundamental layman way that — see, our numbers have grown almost in a J-shaped manner over the last three to four years. So what you’re seeing in terms of revenue recognition is mostly the size and scale of the company, which existed about three to four years ago. However, a lot of SG&A expenses which you see pertain to the current scale of performance. That’s why while the gross margins are at 27% 28%, if we were still operating, you know, at a — at those kind of scale in terms of pre-sales today, let’s say, if we were doing hypothetically, let’s say, 25%, 30% of the sales which we are currently doing, you know, probably our SG&A expenses would have been much lower and you would have seen an EBITDA margin anywhere between 15% to 20%, more closer to 20%.
But since at revenue recognition level and gross profit level, we are seeing what the company was when these projects were launched three to four years ago, right? Completion cycle is at least four years correct in our construction business. But your SG&A expenses are basis the current level of operation. So that’s why it’s kind of a double in terms of the reported numbers that for a company which has grown so fast, but courtesy, the revenue recognition policy, which makes revenue recognition quite back-ended in nature, you know, we are — it will take some more time before you will see like a good surge in the profitability levels.
And yes, there will need to be some convergence between the revenue recognized and the pre-sales being done. And I’ll add to it, even in terms of volume, if you’ll see, like in terms of pre-sales we’ve done, we’ve sold close to 7 million-square-foot. During the nine months itself, we’ve completed about 2.7. So even if you were to extrapolate this 2.7 number for the year, we are completing close to INR4 million selling 7 million. So the difference is you know maybe not as high as you know it is in value terms because value terms, if you’ll see the current sales are at INR12,000 or close to INR13,000 a foot, completion is of INR7,000 product.
So a couple of these things are adding up and compounding this lower number on EBITDA and profitability side, which you’re seeing. And that’s why we are being extremely cautious while giving these implied profitability assumptions in our public sort of documents.
Deepak Poddar
Correct. But the scale-up will continue to happen, right? I mean, currently, we are looking to deliver 11 million square feet and the launches and forthcoming project is close to about 35 million square feet. So we’ll continue to — I mean, we’ll continue to scale-up, right, our business and that is the right thing to do. So ideally this SG&A expense will keep coming, right? I mean, so your convergence between your reported and EBITDA will take a lot of time.
Rajat Kathuria
I mean ideally convergence is happening or will happen, but yes, we feel it’s — it’s good if convergence doesn’t happen too fast because it basically represents that a lot of underlying growth is taking place in the company, while completion happens in its own way. But the other part is that, see, pricing also moved quite swiftly in the Gurgaon market over the last one or two years, which is kind of stabilizing. So even in value terms, we don’t foresee in last couple of years prices to double from the current level. Yes, they will grow because there’s still a lot of demand for the product.
But we’ve kept everything — we’ve kind of disclosed everything, whether it be pre-sales implied profitability to actually revenue recognition and that’s why it’s important to read in-between the lines while taking calls of — under-investment.
Deepak Poddar
When we do expect for this — I mean, 10,000, 11,000 realization to start hitting. I mean, currently, we are at about whatever revenue recognition is happening is for INR7,000 kind of a realization, right? So how many quarters we are away, I mean to start seeing this 10,000, 11,000 kind of a realization — execute in
Rajat Kathuria
Immediate target is to complete the 11 million-square-foot portfolio. Yes, okay. So that will happen over the next five to six quarters. Once that has happened, see, this year, we launched a couple of large township projects, whether it be Dhakshin, there were there certain plotted development within that or within City of Colors, there were certain — there’s quite a bit of plotted areas, which has been sold. So profitability level on these products is good and they take lesser time to complete. So I think once we’ve completed this 11 million-square-foot around immediately thereafter, you will see completion of some of these plotted developments taking place, which will have higher profitability.
Deepak Poddar
This will have — and this 11,000 — 11 million squares you already mentioned, it’s at 7,000 only. I mean next so five-quarter, right?
Rajat Kathuria
No, it will be on an average somewhat higher, but yes, this is — this still comprises of projects which we sold under the affordable housing policy or where we would have sold mid-income homes in or in peripheral markets of. So yes, I think this will be a mix of all of these products.
Deepak Poddar
Understood. And just one final question. I mean, for the next year then FY ’26, so what sort of reported EBITDA margin range one should look at? I mean, after considering all this SG&A expense coming through?
Rajat Kathuria
We can compute that in separately, you know you can write to us, we’ll respond to — of that.
Deepak Poddar
Okay, fair enough. I think that would be from my side. All the best to you. Thank you so much.
Rajat Kathuria
Thank you very much.
Operator
Thank you, sir. Participants, you may please just start and want to ask questions. We’ll take the next question from the line of Adityv from ICICI Securities. Please go-ahead.
Adhidev Chattopadhyay
Yeah. Good morning, everyone. Thanks for the opportunity. So if you just, Rajat, if you could just tell us now on the launch plans for the next two or 3/4 are you looking to phase-out, especially in sona and Sector 71? And if any other new markets, micro markets and Gurga are on the annual? And also what is the pending cumulative GDV of the entire projects we have on-hand currently? Yeah, that is the first question.
Rajat Kathuria
Sure, Aviv. So see the two larger launches which will be coming out will be one in 37D. There’s about 15 acres of land, about 3 million-plus square-foot of area, which will come up. That’s a fairly large project which we’ll launch. Even in Sector 71,, we’ll be doing a Phase-2 of titanium. So there was always like an unlaunched portion. There are new — almost like five new tars which are expected to be launched over there. So about 1.6 to 1.7 million-square-foot of you know, areas getting launched in sector 71. And even in sonar market, we’ve been gradually adding up supply of the independent flows, which we — which we’ve done over the last three to four months. So in all these three markets, there is sustained supply.
In addition to that, there is some more smaller sort of areas which are kind of getting launched. But most of our supply over the next six to nine months or at least six months, you will see in some of these key micro markets which are performing as desired?
Adhidev Chattopadhyay
Sure, sure. And the second part on the pending GDV of our — whatever land we have, right, any ballpark number or slightly not of INR50,000 crores or something, any number you have in mind?
Rajat Kathuria
Yeah. So the unlaunched portion of our land resource is closer to 21.5 million-square-foot, which in our view should fedge a GDV of close to INR350 billion.
Adhidev Chattopadhyay
Okay. This is apart from what we have done. Okay. So and just then on the follow-up on our land-bank reple — replenishment, right? And obviously, you talked about the possibility of expanding into the Delhi market as well. So in terms of land-bank addition, what is the sort of GDP additions you will be looking at annually from here on? So now that we are only crossing almost INR10,000 crores this year. So — and also the annual sort of land spend also you’re looking to do. If you could just help us understand that part? Yeah.
Rajat Kathuria
So if you look at the last nine months trend only,, so out-of-the surplus, about half the surplus went into land acquisition. So about INR12 billion we created a surplus, about 47% of that was deployed towards land acquisition. If you look at the nine-month pre-sale in volume terms was closer to 7 million-square-foot. But if you look at the land aggregation over the 10-month span and including the month of January because, see, this can’t be done on a monthly basis, we’ve added like to 3 million in 370, about 2.7 in 71. So about 5.7 million of replenishment has also happened. So we stay put on that our target that we keep replenishing our land as we Are selling it in Gurgau in peripheral areas. Delhis are absolutely like a new plan we — I would say no one had anything in Delhi, but yes, you know since we are local in this market, we’ll be quick to add-on to the opportunity which the market will throw for real-estate developers.
Adhidev Chattopadhyay
Okay. So it is safe to say excluding Delhi, right, our INR1,500 crores INR2,000 crores would suffice for us in terms of the land-bank spend for the next couple of years on an annual basis, is it a number or it could go a little higher depending on our growth aspirations?
Rajat Kathuria
No, for Gurga, we don’t need to go higher for. I think up to INR1,500 is like a fairly good sort of target.
Adhidev Chattopadhyay
Sure, sure, sure. And just a final question on how the health of the Gurgaon market is, right? Is there any segment where you are seeing things are doing better than the other in terms of the demand? If it’s just a general question, I know, but any segment, any ticket size, any pricing, any micro-market which is going faring better where you see demand is more buoyant as compared to the other ones? Yeah.
Rajat Kathuria
So I’ll prefer to speak for on our behalf. So the segments we are operating, wherein mid-income housing is at the core of the strategy and we’ve done some bit of experimentation, you could say we’ve done products which were more towards the premium side or we’ve also done slightly larger-sized products, whether it be or City of Colors and we’ve seen fairly good response on both of these sort of product expansions which we’ve done.
But we are seeing demand slow consumption to be fairly steady. If you’re launching products at rightful sort of price points, it’s kind of staying steady and we prefer to just kind of keep doing it.
Adhidev Chattopadhyay
Okay.
Rajat Kathuria
In general, we feel the market is doing reasonable. The price movement upwards has slowed down and transaction volumes are doing good.
Adhidev Chattopadhyay
Sure, sure. That is pretty helpful. Yeah, I’ll come back if I have more questions here. Thank you.
Operator
Thank you. And we’ll take the next question from the line of Abhishek Khanna from Kotak Securities. Please go-ahead.
Abhishek Khanna
Hi,. I just wanted to check for the launch that you did in the current quarter, what was the contribution to your sales? 1.5 million square feet that you lost?
Rajat Kathuria
I can get you the exact number, but it was closer to INR700 crore, INR800 odd crores was the kind of pre-sales we’ve recorded out-of-the project.
Abhishek Khanna
Okay.
Rajat Kathuria
Right number, but it was meaningful sales which has happened.
Abhishek Khanna
Sure, sure. I just want to understand was this plotted developments industrial plots, what exactly was this in the form of?
Rajat Kathuria
In the form of as,
Abhishek Khanna
Are these low-rise apartments that you sold or were these plots that you sold, the INR7, INR800 crores that you’re talking of N minus
Rajat Kathuria
So Abhishek, see, we’ve done two large township launches during this nine months spam. So in the solar market, the project is called Dakshin, wherein we’ve launched two separate products. One is low-rise independent floors by the name of Vispas and second is industrial plots, just adjoining to it. So it’s a fairly large, very well sort of planned development just on the periphery of. So the housing induction is something which we are developing and selling, whereas industrial plots are just being sold as plots. These are developed plots with basic infrastructure being laid out by the company and the development is expected to be done by the consumer.
The second project, which we launched in is called City of Colors, again fairly large about 129 acres. In that market, we’ve just sold it as plots, whether they be for residential use or industry use. We are not — we’re going to do only basic infrastructure development and sell it.
Abhishek Khanna
Got it. Just one more clarification on this, Madesh, sir, while you say the land piece is about 150 acres, the launch potential or the development potential, there is about 2 million square feet. That seems fairly low on FSI less than even half, if I think, right? Is that — is there something that I’m calculating on or is that how it is?
Rajat Kathuria
Because we are just selling it as plots, Abhishek, we are not developing it. Hence that the way
Abhishek Khanna
Lower than half or so. Is that
Rajat Kathuria
Supported land potential, that’s without any development taking place. And within that project, as we speak, during the nine-month period, our sale was about INR920 odd crores from just sale of plots, we are not going to develop a any area on-top of these plots and that’s where the FSI potential is low. From a company perspective.
Abhishek Khanna
Got it. But just for clarification, is the FSI potential on not one-ish to one as in 43,500 and 21, is that not how it should be or is it even
Rajat Kathuria
Lay out basic infrastructure now. So on a per-acre basis, depending on efficiency of the plot, you will not get more than, let’s say, 3,100 to 3,200 odd square yard. So out of 40 square yards per-acre, you’ll probably be able to sell plots, which will be in that range of 3,000 to 3,200 yards. The rest of the area will go in circulation and services.
Abhishek Khanna
Got it. Thank you. That is helpful. The second question that I had was Sona, do you have the approvals for launching the fourth floor or are we still are getting clarity on that front?
Rajat Kathuria
No, this the policy is absolutely clear and we have those approvals in-place?
Abhishek Khanna
Got it. We also started selling those four floors in the launched area that we have?
Rajat Kathuria
Absolutely, yes.
Abhishek Khanna
Okay, perfect. And then the last one that I had, for all the approvals that you spoke of in the next six to nine months, which includes 37 and 71, do you already have approvals for any of them? Are these extensions of already-approved projects or would you require RERA approvals for all of it separately?
Rajat Kathuria
Okay. So RERA approvals are of course required, but we are at fairly advanced stages of approval. So like both of these projects in Gurgaon context, they are licensed projects you at very advanced stages of planning and approvals. So given the stage we are, we are very confident that these launches will happen in a short like one or two quarters, we’ll be able to launch these projects.
Abhishek Khanna
Okay, okay. That is helpful. Thanks a lot.
Rajat Kathuria
Thank you.
Operator
Thank you. The next question is from the line of Ayushi, an Individual investor. Please go-ahead.
Unidentified Participant
Hi, sir. Sir, while you’ve already touched upon this to a certain extent, my question to you is that with the change in government, what impact do you anticipate on your operations and the overall ease of doing business in the real-estate sector? And given the evolving policy landscape, like how would you expand into the Delhi geography? And what key policy or regulatory changes would you request from the government to support your growth in this new geography?
Rajat Kathuria
So Ayushi, thanks for the question. So see as far as the market is concerned, you know, there’s nothing new or nothing different which we anticipate. The policy framework is quite clear in terms of kinds of development which can take place in the Gurgaon market. So whatever land we currently own, we have a plan in-place on how to develop it or to put it into production. What has changed now land since land is a state subject, you know, every state has its own set of bylaws as far as the development of land-related policies are concerned.
In Delhi being a separate state, but the situation is that in Delhi for any new development-related policies to come into force, there is a role of both central government as well as the state government. Now the opportunity here is that since we have the same party ruling the center as well as the state, the anticipation of the market is that Delhi should see rightful regulatory changes in the policy framework so that real-estate development-related becomes more feasible or doable and that’s where the opportunity lies. So once that takes shape, see, Delhi is such a popular state and if you’ve visited or been in Delhi, there have been very few newer developments which have happened within Delhi.
So there is availability of land, there is you know there’s lot of urban consumer who is kind of staying within Delhi, one needs to have the rightful framework to develop a product. So that link is missing, which we are all are hoping that you know start taking shape.
Unidentified Participant
There is enough opportunity for everyone, even with the competition that you will probably see in Delhi being the capital.
Rajat Kathuria
We Do expect competition in the market.
Unidentified Participant
Okay. And how do we plan on dealing with that?
Rajat Kathuria
So see, we are sitting in this market. We have lot of competency and capability right from the start of identifying land till the time of handing over keys to our customer. So every key step, we are very well-poised. We have probably the best of the teams to kind of handle that situation. We are today almost close to 1,200 odd people working with signature. So you know our local and real-estate somewhere does is kind of localized business, understanding customer preferences, understanding customer needs, you know ability to create supply to address those needs.
A lot of that understanding is very localized. And since we have good capabilities, we are fairly confident to work on this opportunity. So it’s very early to kind of anticipate a lot of competition and start fearing it. It’s almost the other way around that there is such a big opportunity. We feel that if a lot of people participate, there’s work for — for quite a few players to work and work on that opportunity.
Unidentified Participant
Okay, sir. Thank you. Thank you and all the best for your next phase.
Rajat Kathuria
Thank you.
Operator
Thank you. Ladies and gentlemen, as there are no further questions, we now conclude the Q&A session. Thank you, members of the management. On behalf of ICICI Securities, that concludes this conference. We thank you for joining us and you may now disconnect your lines. Thank you.
Pradeep Kumar Agarwa
Thank you