Sobha Ltd (NSE: SOBHA) Q3 2025 Earnings Call dated Feb. 07, 2025
Corporate Participants:
Jagadish Nangineni — Managing Director
Yogesh Bansal — Analyst
Analysts:
Adhidev Chattopadhyay — Analyst
Puneet Chaddha — Analyst
Himanshu Upadhyay — Analyst
Kunal Lakhan — Analyst
Parikshit Kandpal — Analyst
Biplab Debbarma — Analyst
Parvez Akhtar Qazi — Analyst
Pritesh Sheth — Analyst
Vipulkumar Shah — Analyst
Jeet Shah — Analyst
Manosh T. M — Analyst
Rahul Jain — Analyst
Presentation:
Operator
Ladies and gentlemen, good day and welcome to the Shoba Limited 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 Adityv from ICIC Securities. Thank you, and over to you, sir.
Adhidev Chattopadhyay — Analyst
Yeah. Good evening, everyone. On behalf of ICICI Securities, I’d like to welcome everyone to the Shobah Limited Q3 FY ’25 results call today. As always, we have from the management, Mr Javidish, the Managing Director; and Mr Yogesh Bansul, the Chief Financial Officer. I would now like to hand over the call to the management for their opening remarks, after which we’ll move on to the Q&A. Thank you and over to you, sir.
Jagadish Nangineni — Managing Director
Thank you,. Good evening, everyone, and thank you for participating in this Q3 FY ’24 ’24-’25 earnings call. Our team at Shoba and I are delighted to be interacting with you today. And as usual, you can access the results on this quarter’s investor presentation on our website. In today’s call, I’ll quickly take you through the operational highlights of the year in the quarter. Yogesh, our CFO will take you through the financial highlights post that.
In Q3 FY ’25, our total real-estate sales value stood at INR1,388 crores, 72.1% of the total value is from Bangalore, 10.3 from Gurgaon, 9.3 from Kerala and other regions contributing to the remaining 8.2%. Share of total sales value stood at about 90%, highest-ever for us, thanks to the contributions from our own projects-based in Bangalore,, and Shobayana.
In nine months of FY ’25, our total real-estate sales value stood at INR4,440 crores, about 50% of that has come from Bangalore, 25% from Gurgaon, about 16% from Kerala and other regions contributing to remaining in the last three months of this FY, we are hoping to reach close to our last year’s sale value with the help of new launches and regular sales. In Q3 ’25, we launched one new project, Ayana in Bangalore with a total scalable area of 1.13 million square feet.
This launch takes us the overall launch area for this FY to 4.66 million square feet over six in four cities. We are happy to inform you that we have received for Town Park, Madison Heights in Hampton, which is about 3.67 million square feet with a sale of — with a with apartments of about 2,104 we will be launching this — we will be launching the Tom Park during the month and expect one more launch in Bangalore in this quarter that can take the yearly launches to about 9 million square feet.
We have received this DERA post the end of this quarter. Our remaining inventory as of end-of-the quarter stood at 8.92 million square feet, totaling a sales value of about INR14,000 crores. We have a very strong residential pipeline of 21 million square feet across 19 projects and 10 cities and a commercial pipeline of about 1.19 million square feet or flow projects across our operational cities. And this entire pipeline we will envisage to launch in the next four to four to six quarters.
In addition to this, we are working on our subsequent project land for about 19 million square feet and also actively working on lands that can be monetized and generate cash flows from the same. In the next financial year, we aim to add Greater Noida, Kosur and Mumbai to our operating locations, increasing our real-estate presence to 15 cities. As you are aware, we have procured a small land of 3.44 acres in for which the approvals are underway.
For Hosur, after a long wait, we have been able to resolve the on-ground issues and we are making progress on project design and approvals for the first phase of plotted development in about 38 acres. In Mumbai, it is still very early stages of approval process, which will get better visibility in the next three to four months. On the visibility to our revenue and profitability, the real-estate revenue is yet to be recognized from already sold units stands at about INR15,000 crores.
This revenue has profit before-tax margin of about 28% at the project-level. Our contracts and manufacturing segment had a revenue of about INR160 crores in this quarter and we might stabilize it accumulative revenue of about INR450 crores to INR500 crores on a yearly basis with gross margins of over 15%. As I had mentioned in my previous calls, we are reducing our emphasis on the civil contracts and some of the other contracts related to leasing.
And in fact, we scoped some of the projects this quarter. Hence, we had to account for additional expenses towards the same and that reflects in our lower margins this quarter. With that, I hand over the call to Mr Yogesh Bansal, our Chief Financial Officer, provide color on the financial performance. Only which we will — we shall open the floor to feed questions.
Yogesh Bansal — Analyst
Good evening, everyone. I’m pleased to share our financial performance for the nine months and 3rd-quarter of financial year 2024-’25. Our quarterly results underscore a commitment to consistently improve operational performance and financial management for a sustained and disciplined group. Starting with cash-flow for nine months FY 2025, total operational cash inflow was croress INR33.99 billion, reflecting 2% increase from the same-period last year.
The real-estate segment led INR6 crores with collection increasing by 6.3% to INR39.35 billion. Contact and manufacturing business contributed INR4.64 billion. We have incurred INR1,251 million under capex during nine months, reaching 46.54% more compared to same-period last year, export increased area under-construction on back of the new launches. In nine months, our — we spent INR6.33 billion in net land outflow, which is more than 2x of same-period last year, in-line with our commitment of deploying growth capital.
Our net cash-flow generated was INR8.06 billion, including right issued application proceeds. We have called for first tranche of call money towards end of December 2024 and received the proceed in January. For the unsubscribed portion, which is very minor, the window will be reopened from 18 February to March ’25. As on 31st December, we have saw unsold inventory of 8.92 million square feet at and under forthcoming project at 21.22 million square feet, the projected margin cash flows from ongoing and forthcoming residential project stands at INR171.13 billion.
Q3 FY ’23 net-debt was INR4.56 billion with net-debt to equity ratio of 0.13. Average borrowing cost has remained steady in recent quarters, which stands at 9.44%. On the P&L side, for the — for nine months, total revenue stood at INR28.92 billion with real-estate contributing INR23.19 billion or 80.2% of our total revenue and the contractual and manufacturing segment generating INR4.79 billion. In Q3, real-estate segment contributed to 84.6% of total revenue. EBITDA nine months was INR2.94 billion with a margin of 10.2%.
PAT stand at INR538 million for nine months, an improvement of 20% — 28% over last period and for Q3 stands at INR217 million. In Q3, our total revenue rose by 76% year-on-year to INR12.56 billion. The revenue yet to be recognized from sales completed as of December 31 — December 31st stands at INR153.61 billion. With this, we can open the call for questions. Once again, thank you for — thank you all for your participation. Now we can open the call for question-and-answer.
Questions and Answers:
Operator
Thank you very much. We will now begin with the question-and-answer session. Anyone who wishes to ask a question may press star and one on the touchstone telephone. If you wish to remove yourself from the question queue you may press star in two . Participants are requested to use handsets while asking a question ladies and gentlemen we will wait for a moment while the question queue assembles. Thank you we take the first question from the line of Puneet from HSBC. Please go-ahead.
Puneet Chaddha
Yeah, thank you so much, sir. My first question is, yeah. During the year, you guide for pre-sales target of INR8,500 crores. And given the run-rate and the fact that you are still to launch Townpark, is there a reasonable expectation that you would still be able to meet this guidance by — by March.
Jagadish Nangineni
Good evening, Puneet. It’s true that we — the first-nine months, we did about INR4,44 crores. And our guidance is about — was much higher. But because of the delay even in the town path when we have read it earlier on and also some of the — this is only some initial last 3/4 we have been saying that there are certain — there is some slower pace of sale-in some of our projects where the ticket size is large.
And hence because of that, I think be — we are currently aiming at reaching at least what we have done last financial year in terms of pre-sales. And if we can do that, that would be a good outcome for us. And we are able to launch a couple of other projects in Bangalore, which we are trying during this quarter itself. If that also comes through, then probably we can do better than that.
Puneet Chaddha
Okay. Got it. My second question is on the margins front, right? I mean the reported margins in this quarter as well is even lower than the previous quarter despite you know, a better recognition of revenue. Why is that happening? And when do we see a turnaround?
Jagadish Nangineni
Yeah. That’s why I had mentioned during my initial remarks itself, Puneet, that we have actively descoped couple of projects of our contractual projects, one was in civil contract and one was in leasing contract. And both these contracts, we had to recognize some of the losses towards the end of — as the end-of-the project has been completed last quarter — in the last period. And that as a one-time items have reduced the margins. Otherwise, I think we are largely towards the end of these contractual losses that we have incurred.
And going-forward, we don’t foresee any such anymore because the remaining orders — order book in these contracts are far lower now. And hence, the entire now margin would shift towards real-estate as we recognize the revenue in that, which is quite healthy. And on-top of it, even the manufacturing and contractual projects remaining — remaining ones seem to be running well in terms of the financial year as well. So from Q4 to Q4, we should start looking at slightly better margins and also from next financial year, it should be far better.
That said, like I said, like I mentioned in the initial remarks, the overall, if you look at the larger picture from the remaining revenue to be recognized, it’s close to about INR15,000 crores now, which roughly we should be able to recognize in the next three, 3.5 years to four years, that would be roughly about INR1,000 crores a quarter. And if we are able to do that and which I was mentioning, it’s about 28% of PBT at deposit level. So over the period, as we keep recognizing those revenues, the margin on the margin front feel significant improvement in the same.
Puneet Chaddha
Okay. So just 28% of PBT you said on those revenues
Jagadish Nangineni
At the project-level,
Puneet Chaddha
At project-level. And how — is it possible to quantify how big was the losses on the contractual business because on a Q3 over Q2 basis, I see a INR290 crore revenue growth, but no change in EBITDA. So is it as big as INR280 crore to INR90 crore of losses on contractual business?
Yogesh Bansal
Well, it’s not just the contractual business, but also price reduction in some of the JV projects in real-estate and DRX, we have accounted for a higher-cost that we have — we are incurring even in real-estate projects. Both unfortunately in this particular quarter, a combination of both the real-estate cost increases and lower-margin projects that we have recognized in the joint development projects and combined with even the contractual losses, all of them put together has led to this.
And this I think is a one-time scenario. Hopefully, it should improve from here.
Puneet Chaddha
Okay, that’s helpful. And lastly, on the interest cost, despite a INR1,000 crores addition to the cash balances, the interest cost and cash-flow side hasn’t gone down. So how should one think about that?
Jagadish Nangineni
Well, on that front, it’s very clear. We had a clear object of usage of the right issue. We had in fact reduced the debt towards that. And to a certain portion of that has gone in reduction of the debt. But our gross debt continues to remain roughly around INR1,500 crores. So that has sort of continued to have the impact on an interest cost basis. Otherwise, the remaining — if you look at from a net point-of-view, it is significantly lower in terms of debt.
So the remaining ones are — part of it are accounts and in fixed deposits, those will be earning small interest, which we would be using to deploy for the business development.
Puneet Chaddha
Okay, understood. I’ll come back-in the queue. That’s all from my side for now. Thank you so much.
Jagadish Nangineni
Thank you.
Operator
Thank you. Before we take the next question, ladies and gentlemen, in order to ensure that the management is able to address questions from all the participants, please limit your question to two per participant. If you have a follow-up question, please rejoin the queue. Ladies and gentlemen, please restrict your question to two per participant.
We take the next question from the line of Himanshu Pathia from Rock PMS. Please go-ahead, sir.
Himanshu Upadhyay
Yeah, hi, good afternoon. My first question was if you look at the realization per square feet for stock to sell has increased from INR7,500 rupees what used to be there two years back. So nearly INR14,000 rupees per square feet realization. So if the velocity remains slow for such projects, how much does it impact the project-level IRR? And can margins be under pressure because of general inflation which is there in the country and in most expenses? And secondly, what can we do to increase our velocity for such projects?
Yogesh Bansal
Okay. Good question,. The price on an average, if you look at, yes, it’s right from about five to six years ago where we were at about 7,500. Now we are almost reaching 14,000. The — it’s a combination of two factors. One, in general, real-estate pricing has gone up significantly in our operating locations. And second, even in the mix of the inventory that we are selling today and what the inventory that we have currently, both those — the inventory mix has changed from — not just from Bangalore.
But also from some of our other locations like MCR, and even in some of the prime projects that we have in Kerala and in Hyderabad. So it’s a combination of both the inventory mix and the price increase that has occurred in the — in general in the market. So I think from a pricing point-of-view, it seems we are at-market or slightly premium to the market, which has been the case historically, given our brand and these kind of products that we deliver. However, your — to answer your other question related to the pace of sale, the pace of sale largely what we have seen is continues to be very strong in places like Bangalore and even in NCR. The only cause of a little bit concern for us in some projects Has been on the — where the ticket size has been significantly higher. That with the new launches and changes in the inventory, we should be able to address that concern and we should start seeing much better velocity in terms of sales.
Himanshu Upadhyay
And secondly, I think historically we have stated that premium projects generally tend to have a higher sale near the completion. But if the project or construction phase is faster, let’s say, in 2.5 years to three years, do you think the sales velocity will also tend to increase for premium projects? Because if people are able to see the fully constructed project much earlier, the sales also
Jagadish Nangineni
— well, if you see the current our inventory of completed projects is very low. And even as we — then you would have noticed that even when we launched the projects, we release the inventory on a phase-wise basis basis that our construction will also progress. So it’s a — both the pace of sale and pace of construction go hand-in-hand. Hence, I don’t see a big risk towards that. If you’re alluding to the fact that because of this, there would be a buildup in terms of working capital.
That’s not been the case in the — at least in the last two to three years and we don’t foresee that in majority of the projects that we have
Himanshu Upadhyay
So my just question was, if premium projects, the construction happens faster, will it also help in faster sales side for those projects? Does it also happen in that way?
Jagadish Nangineni
So our view is this in Manshu, once the project starts, irrespective of the pace of sales, the sooner we deliver, the better it is. If the pace of sale is faster, it is even better for us in — if we are more incentivized to complete the project faster. And even if there is — the pace of sale is little slower, faster we construct, we contain our — any escalation in terms of cost. And like rightly pointed out, there is generally a higher offtake from projects where there is visibility of completion or impact where the are completed in H. So both ways, it’s best for us once we start the project completed within time or ahead of time.
Himanshu Upadhyay
No one last question.
Operator
I’m sorry to. Manshu, may I request you to please join the question queue as we have participants waiting for their turn. Thank you. We take the next question from the line of Kunal Lakan from CLSA. Please go-ahead.
Kunal Lakhan
Yeah, hi, good evening. I am just trying to reconcile the margin guidance that you have given on the INR15,000 crore of unrecognized revenue. And when I look at your margins in your P&L, like if you look at your nine months PBT margin is about less than 3%. I understand there is corporate overheads and also if I were to ask you that this 28% PBT margin at project-level, if you were to apportion, say, corporate overheads over there, what would be the realistic PBT margin considering
Considering eventually you have to look at the business at the consolidated level, right, what kind of the business — what kind of margins and cash flows the company makes on a consolidated basis, not just project-level. Just I’m just trying to understand if you the corporate head cost or corporate cost to your project-level margins, what will be the realistic PBT margin there are current esti
Jagadish Nangineni
Are current estimate of the overhead because over — because of this accounting norm where we recognize revenue on completion, you will appreciate that the — all the overheads we take on in the cost respective of my revenue recognition. But if you spread over the next this period of revenue recognition over the next say period about three to four years, then I would say about 10% of this of overall revenue to be recognized would be in the ballpark in terms of the other overheads.
I’ll ask to throw some more light on it.
Yogesh Bansal
So in this, if we overhead, corporate overhead plus interest plus depreciation, it will be removed. So with the PBT level, we should be within range of 15% to 18% in 36% going-forward.
Kunal Lakhan
Okay. I mean, depreciation isn’t very significant anyway. So basically your interest in corporate overheads, if you remove it will be roughly about 15% to 18% you’re saying.
Yogesh Bansal
YES
Kunal Lakhan
Okay, understood. That’s helpful. All right, yeah. Thank you.
Operator
Thank you,. The next question is from the line of Parikshit Kandapal from HDF Securities. Please go-ahead.
Parikshit Kandpal
Hi, sir. My first question is, so you said you are launching 9 million square feet this year. So I want to understand out-of-the total sales of the nine months, how much was — out of this 9 million was opened for-sale and how much is the contribution of new launches to the overall sales for nine months?
Jagadish Nangineni
Good evening,. We have opened — we have launched 4.46 — 4.6 million square feet till-date. And we have like I’ve mentioned in the opening remarks, we have obtained for the remaining buffer for town Park, Madison and Hampton. So that’s about 3.67. So therefore, plus if we are able to manage one or two more project launches during this quarter — end of this quarter, which we are trying hard, but there might be date of one, two weeks here and there. So hopefully, we should be able to meet target of 9 million.
Parikshit Kandpal
So my question was out of 4.6 million. That is the total size of the project. How much was opened for-sale and what is the area which is still to be opened?
Jagadish Nangineni
And sir, from what we have launched this financial year, we would — I mean, I clearly don’t have the exact number, but roughly we have launched about 50% of the projects in larger ones. And in smaller ones, the entire inventory has been opened. So — but we can get back to you with the exact numbers. And on the town park curve, I thin
Parikshit Kandpal
And on the town park curve, I think the total size of the town park is 3.7 million sellable. So how much you’re planning to open there
Jagadish Nangineni
And the initial phase itself, we would launch about 1/3 of it and so that would be the first — in this month we will be doing about four to five hours based on the pace of sales that we can achieve.
Parikshit Kandpal
Are these issues that you are launching, the number which you are giving is very-high, but actual launch is only one-third or maybe 30%, 40% of that. And so when we look at pre-sales, so we are building it with thinking that you’re launching the entire project and market is basis that assumptions, making assumptions on pre-sales, but the actual launched or opened area is much lower and that is getting reflected in much lower sales than pre-sales.
Jagadish Nangineni
So actually the opening of new phases is not an issue for us. It is — and the reason why we are opening for in phases is only based on how we are facing out our sales. If — because we have obtained RERA for all the entire project. So we can choose to launch the phases much faster. Like for example, Ayana that we have just launched in November, we were planning to launch only one or two towers initially, but based on pace of sale, we could launch almost the — close to 70% of the project right now.
So hence, it’s entirely dependent on how the project focuses in terms of sales. So it’s absolutely nothing to do with our release of units or towers versus the actual launches.
Parikshit Kandpal
Okay. And just a last question. So now we have this year guided for INR8,500 crores. If you would have achieved that next year if we had guided 15% 20% growth on that, we should have crossed INR10,000 crores of sales. So when I look at FY ’26, so how will you base the growth there? I mean, will 8,500 crore will be the relevant number, so we look to cross INR10,000 crores? And to do that, what kind of launch pipeline or GDV leases would be there on a quarterly basis? Are we targeting like INR3,000 crore to INR4,000 crores of launches every quarter from next year so that we can deliver on that number.
Jagadish Nangineni
So we will definitely come to this year and we have — we have good visibility of all the launches in — for the next financial year. So hence, I believe that the launches will accelerate from — in the next year also. And we have enough inventory and experience of some of the projects which are Launched this financial year also. So with buildup of the inventory and with new launches, we should be able to do far better numbers. I will not be able to comment on what the number is right now, but during the course of — as we plan out in the next two to three months, we should be able to come back to you with a better visibility of that.
Parikshit Kandpal
Okay, sir. And just one is Mumbai, what is the,
Operator
May we request you join the question queue. Thank you. Participants. A reminder, please limit your question to two per participant. We take the next question from the line of Biplab from Antique Stock Broking. Please go-ahead.
Biplab Debbarma
Good evening, sir. So my first question is on the — you know, the MMR project that you plan to launch in FY ’26. What — can you give us some insight on the project like in terms of GDP, what is the size of the project, what kind of project it is GDA, SRA or outlet purchase? And where-is the location?
Jagadish Nangineni
Good evening, but the project is still in very early stages. We have tied-up the land and the project, but we are in very early stages towards the — towards the approval process. Ideally, given the uncertainty of us of us navigating in a new location like Mumbai, we would — we’ll be able to give out the numbers and have greater visibility to you in subsequent quarter.
Biplab Debbarma
Okay. My second question is, what would we attribute the slippage and guidance to? I’m — should we say that because of slow sales velocity in the Grogram project or there is a moderation in-demand or it’s because of approval challenges? I mean, if we have to pinpoint the reasons for the slippages. So you have you have already lifted out a
Jagadish Nangineni
So you have you have already lifted out all the — all the issues but having said that, we — I think that there is silver lining to this aspect, which is, now standing where we are, we have a much better — we have the best inventory that visibility that we have in years, which we have already launched and also for the future projects. So hence our ability to grow from here seems to be far more visible and we should be able to achieve what we are what we are showcasing.
Biplab Debbarma
Okay, sir. Okay. Thank you, sir. I’ll come back-in the queue.
Operator
Thank you.
Jagadish Nangineni
Thank you. Good luck.
Operator
Thank you, sir. The next question is from the line of Parveesh Kazi from Nuvama Group. Please go-ahead.
Parvez Akhtar Qazi
Hi, good evening and thanks for taking my question. So of the INR633 odd crore of land expenses that we have undertaken this year, would bulk of it relate to the Greater Noida and Mumbai project or I mean, there are other cities also where we have acquired that.
Jagadish Nangineni
So good evening,. It’s a — it’s a combination — written order, yes, it is the bulk of the payment has gone to get an order because it’s an outright purchase from the authority. And in addition to that, we have, in fact spent across various projects. We have recently signed-up a project in Chennai for about 1.8 million square feet and we have entered into new agreements with a couple of owners in Bangalore in — part of it is in Mumbai, part of it is in.
So it’s spread across. It’s not focused or let’s say a bulk of it has not gone to one particular city. But it’s overall spread all over multiple cities. Overall, if you look at from the INR633 crores that net payment that we have done, roughly if you look at from a new land that we have tied-up, that would be roughly about 5 million to 5.5 million square feet where we can develop them and probably at a value of events to take about INR12,000, it’s about INR6,000 crores what we can achieve in sales from that.
Parvez Akhtar Qazi
So if I got the number correctly, we said the GDV of the land that we have tied-up is about INR12 odd thousand crores. So if that number is correct, what is the pending land payment for this INR12,000 crores GDV project?
Jagadish Nangineni
Yeah. I mean there would be additional payments, which is a — which — I mean, part of them are like we have seen, it’s a own land and part of them are. We’ll be able to give you the remaining payment details separately.
Parvez Akhtar Qazi
Sure. Just second question is with regards to geographical diversification. We are already present in 10 plus cities. So on-the-ground, how are you seeing differences in terms of sales velocity across the cities where you are present and if you are — and which cities are, let’s say, relatively doing better than — and which are the?
Yogesh Bansal
Well, the demand scenario continues to remain very strong in some of the cities that we operate. Of course, there is an increase in pricing and hence the ticket sizes have gone up for all of us. And due to that, wherever there is still a ticket size of about INR2 to INR3 crores, the demand is still continues to be good. And wherever there is a much higher-ticket, of course, the ticket size, the sweet-spot can differs from city to city. So hence, if you can hit the sweet-spot, it’s very good. Like for example, in Bangalore, the sweet-spot is between INR2.5 crores, INR2 crores to INR3 crores and if it’s in Gurgaon, it is about INR5 to INR6 crores.
If we are able to be within that range, probably our sales velocity can be really good.
Parvez Akhtar Qazi
So last question for the projects or inventory that we are going to release.
Operator
MR. Kazi, may we request you to join the question queue, sir, please. Before we take the next question, participants are requested to limit their question to two per participant. The next question is from the line of Pritesh from Axis Capital. Please go-ahead.
Pritesh Sheth
Thanks for the opportunity and good evening, Jagdesh and team. First question is on Gurgaon where you know we have seen impact since last couple of quarters. You know any course correction we have done there to improve the sales and how is the traction now? And we have three more projects planned in Gurugaon of over the next four to six-weeks, I mean, residential projects.
You know what kind of ticket sizes that we are targeting in those three projects considering that we already — I mean, you have already mentioned that anything between INR5, crores is doing good enough. So will that be our product offering in upcoming three projects? That’s my first question.
Jagadish Nangineni
Yes, absolutely, it is. That’s the aim for us in terms of new projects. But even for the existing inventory, the existing projects both and, both are fantastic projects they are doing. They have in fact, Arania is a very unique project and it would have an inherent demand. And in-between, there was after the initial rush, there has been some stabilization with the progress on the side and the progress on what we are doing continuously.
There is an increased interest in the project and I’m very confident that the project will do well. Similar would be the case of Altus, which is a slightly smaller project, but we have changed the specs and rationalized the pricing as well corresponding to that. And it has seen — based on that, there has been an increased interest from the customers. So both are on good track and I think we should start seeing good results from the next few months.
Pritesh Sheth
Got it, got it. And just a clarification on what you mentioned in the last question. So with the INR630 odd crores of spending in-land, you have acquired 5 million, 5.5 million square feet of new projects and GDV is INR12,000 or 6,000. I couldn’t hear that correctly.
Yogesh Bansal
At an average pricing of INR12,000 is what I have taken, that will be above INR1,000 crores. 6,000 crores.
Pritesh Sheth
Okay. Okay, got it. That’s it from my side and all the best.
Yogesh Bansal
On a consolidated basis, yes.
Operator
Thank you, sir. The next question is from the line of Vipul Kumar Anup Chansha from Sumangal Investments. Please go-ahead.
Vipulkumar Shah
Hi, thanks for the opportunity. Sir, my question is, can you breakdown your inventory into land and finished flags? Around INR11,000 crores of inventory in — so can you break it down between the land and finished product flags
Jagadish Nangineni
Sorry, Vikul, just to clarify, when you say land, it would mean like the profit development
Vipulkumar Shah
Sorry
Jagadish Nangineni
So just to clarify what what’s the question, is it land would mean what plotted development or is it completed inventory?
Vipulkumar Shah
So I would like to know what is the completed inventory portion in this and what is the land under development portion?
Yogesh Bansal
Okay. Completed inventory is very minimal for us. Out of this 8.92 million, only we have 210,000 square feet as completed inventory. That the value of that will be about close to INR180 crores or so restall is at various stages of development.
Vipulkumar Shah
Yes,
Yogesh Bansal
Okay, sir, thank you. Thank you.
Operator
Thank you, sir. The next question is from the line of Puneet from HSBC. Please go-ahead. Y
Puneet Chaddha
Eah, thank you so much. If you can also elaborate on, you know, where all are you going to spend the rights issue money? Is there any plan there? And how much should we expect you to spend over next one year?
Jagadish Nangineni
Okay. I’ll let Yvesh take that question happening.,
Yogesh Bansal
In our right issue, we have given debt, okay. So we are using money part of that for our debt. And general corporate our aim is to use for our growth capex so that we can buy and we can invest in business development and we can grow — grow. So basically combination of both. One is a reduction of debt and other part of it go to our growth sector towards growth.
Puneet Chaddha
Yeah. How much reduction of debt and how much for land?
Yogesh Bansal
Okay. In the rights issue, for the — from the proceeds of the rights issue, we are planning to reduce debt of close to INR900 crores.
Puneet Chaddha
And the balance INR1,100 crores for the Land acquisition and general corporate,
Jagadish Nangineni
Which are clearly demarcated. Our objective is like this, which is the ERA PRA cash-generating company in the last several quarters, I’m sure you have noticed that. So why we are just clearly utilizing some of the proceeds for — in accordance with the objects, we are also generating new cash-flow. So it’s sort of replacing that and we’ll be utilizing that for new growth capital. So it’s — although we are reducing the debt right now, but we would as we keep generating cash-flow from the new projects, we would definitely use the same for both.
Puneet Chaddha
So what is the internal target for debt-to-equity now?
Jagadish Nangineni
Well, it’s not about debt-to-equity, Sunit. What we currently in the near or let’s say, medium-term, what we are comfortable is between INR1,200 crores to INR1,500 crores.
Puneet Chaddha
Okay, absolute amount of — on an absolute amount,
Jagadish Nangineni
Yes. Because you have seen it, but the marginal cash-flow from us from our existing projects is still very strong. INR10,000 crores is coming from — from already launched projects and from the new projects, we have about INR7,000 crores. So while since that is very strong, the — then we can — also the visibility of our subsequent lands is also good. So our — it puts us in a unique position where we can opportunistically grow in certain cities and hence, based on that, we can deploy our capital. It’s not necessarily that I will need to deploy today the entire amount.
So we will take a calibrated approach, but we have the maneuverability to utilize whenever it is feasible now versus about a year-ago when we didn’t have the right capital.
Puneet Chaddha
Understood. That’s helpful. Thank you so much.
Jagadish Nangineni
Thank you.
Operator
Thank you. The next question is from the line of Jeet from Pinpoint. Please go-ahead.
Jeet Shah
Hi, sir. A couple of questions. So firstly, on Altus and, you mentioned you’ve reoriented the Altus project a little bit and RNYA has picked-up in terms of interest. So incrementally from here, what kind of quarterly sales run-rate can you expect from these two projects together? And secondly, on Townpark, you mentioned you will be opening about one-third of the area.
But if you do sense more demand than that, will you be opening up more area in this quarter itself or how will — will it be phased-out? Thanks.
Jagadish Nangineni
It will be difficult for me to give the exact estimate of how it’s going to perform. We have taken these actions and we are — our teams are really working hard to make it a success. So we will have to see over the next couple of quarters how we are picking-up. And then we will be able to have a much better sense of how we are getting some sort of run-rate here. So it’s very difficult for me to give a — give an answer on the estimate right now.
On the other part, which is about town — on the Town Park launch, like I said, we release the inventory based on the pace of sale. And of course if the pace of sale is good, particularly the ones which we launched has all the sizes of the inventory. And if there is any specific inventory which is moving faster, we generally do open the towers which are — which have inventories. So we will be, of course opening up new inventories as we progress.
And if it happens this quarter, sure, we will do that
Jeet Shah
Okay, perfect. Good luck.
Jagadish Nangineni
Thank you, Jim.
Operator
Thank you. The next question is from the line of Manosh from Geometric. Please go-ahead.
Manosh T. M
And good afternoon, sir. Thanks. Hello. Am I audible? Okay. Okay. Sir, as we go-forward to INR8,000 crore INR10,000 crores sale, general cost — corporate cost, how much we can think of increasing per year as a percentage.
Jagadish Nangineni
Mano, I think from what we are already running at a run-rate of about INR6,000 odd crores, right, we apart from being inflationary, we don’t think that we are — we would be incurring significant increase in the fixed-cost. It would be largely the inflationary because majority are currently — we are already structured towards the aiming at-cost sale value of about close to INR8,000 crores to INR10,000 crores.
So I — we don’t envisage significant increases in the fixed-cost.
Manosh T. M
Okay, that would be a great lever for the margin.
Jagadish Nangineni
I think apart from, of course, like I said, inflationary regular salary increases and inflationary increases in other quarters.
Manosh T. M
Okay. So this would be a very great lever for the margin increase as well as your premium projects which will be also coming for revenue recognization. Is it my understanding right?
Jagadish Nangineni
Absolutely. That’s correct.
Manosh T. M
Okay. Thank you and best of luck.
Jagadish Nangineni
Thank you very much.
Operator
Thank you. The next question is from the line of Rahul Jain from Elara Capital. Please go-ahead.
Rahul Jain
Hi, sir. Thanks for the opportunity. Sir, just wanted to understand, given that Shoba as a brand has a significant presence internationally, what percentage of the pre-sales would be coming from NRI demand? Like it would be specifically higher for certain geographies or how should we look at it?
Jagadish Nangineni
Yeah, good question, Al. There is a — like you mentioned, there is a significant visibility of our brand internationally and that has indeed increased our customer interest in our projects. So the typical — and not only is that results in NRI demand, but also results in-demand from frequent travelers or travelers who are exposed to international locations. That puts us our brand little ahead and that definitely creates a higher demand for us, both from local and from NRA. So as — and typically our NRA demand has been in the range of about 8% to 10% and largely Largely that remains the — remains unchanged in the last few quarters. So if with a greater visibility and if it — if there is under the depreciation of the rupee and several other uncertain events, if there is a push from the — increase in interest from NRL, we would greatly benefit from it.
Rahul Jain
Got it, sir. And sir, on the Mumbai land piece, can you just share the locations of where exactly it is in Mumbai?
Jagadish Nangineni
We –, we will be able to share it separately with our Investor Relations. If that’s that will be ideal for us.
Rahul Jain
Sure. Thank you.
Jagadish Nangineni
Thank you.
Operator
Thank you. The next question is from the line of Himanshu from Bugal Rock PMS. Please go-ahead.
Himanshu Upadhyay
Yeah. Thanks for giving an opportunity again. My question was in the upcoming projects, okay, our share is around 79%, okay. And currently we are having around 90%. Is there an opportunity to increase the — our share in the forthcoming projects? And because just these projects will be much nearer long — in launches. Just any thoughts or opportunity for you to allocate capital and increase share in these projects?
Yogesh Bansal
Yeah. Himanshu, the share of the projects is a function of our own land projects and joint development projects. 90 — if you look at our current inventory of about 8.9 million square feet, there itself our share is about 80% and forthcoming projects is also roughly about that. So it’s — the 90% that we achieved is specific for this quarter because some of our own projects have done far better. And hence that if you look at an average over the next few years, then we would revert to the average of about 80%.That’s because that’s the nature of the inventory.
Himanshu Upadhyay
Okay. Okay. Thank you the clarification.
Yogesh Bansal
Thank you very much.
Operator
Thank you, sir. As there are no further questions from the participants, I would now like to hand the conference over to the management for closing comments.
Jagadish Nangineni
Thank you. Thank you everyone for participating in the call. I hope that we have answered your queries to the best possible extent. In case you have more clarifications or questions, please reach-out to our Investor Relations. We’d be happy to provide more information. Thank you, everyone, and have a good evening.
Operator
Thank you, members of the management. On behalf of ICICI Securities, that concludes this conference. Thank you for joining us and you may now disconnect your lines.