Sunteck Realty Limited (SUNTECK) Q2 FY23 Earnings Concall Transcript

Sunteck Realty Limited (NSE:SUNTECK) Q2 FY23 Earnings Concall dated Nov. 11, 2022

Corporate Participants:

Kamal Khetan — Chairman and Managing Director

Prashant Chaubey — Chief Financial Officer

Analysts:

Adhidev Chattopadhyay — ICICI Securities — Analyst

Pritesh Sheth — Motilal Oswal Financial Services Ltd. — Analyst

Rahul Jain — Dolat Capital — Analyst

Parvez Qazi — Edelweiss Securities — Analyst

Abhinav Sinha — Jefferies — Analyst

Abhishek Lodhiya — YES Securities — Analyst

Prem Khurana — Anand Rathi Shares — Analyst

Presentation:

Operator

Ladies and gentlemen, good day, and welcome to Sunteck Realty’s Earnings Conference Call for H1 FY ’23 and Q2 FY ’23. We have with us today Mr. Kamal Khetan, the Chairman and Managing Director of the Company, and Mr. Prashant Chaubey, the Chief Financial Officer.

Please note, this call will be for 45 minutes, and for the duration of the conference call, all participant lines will be in the listen-only mode. This conference is being recorded, and a transcript for the same may be put on the website of the Company. After the management discussion, there will be an opportunity for you to ask questions. During the Q&A session, we request to restrict questions to two per participant. [Operator Instructions] Please note this conference is being recorded.

Before I hand the conference over to the management, I would like to remind you that certain statements made during the course of this call may not be based on historical information or facts, and may be forward-looking statements, including those related to general business statements, plans and strategy of the company, its future financial condition and growth prospects. These forward-looking statements are based on the expectations and projections and may involve a number of risk, uncertainties, and other factors that could cause actual results, opportunities and growth potential to differ materially from those suggested by such statements.

Now, I’d like to turn the conference over to Mr. Khetan, the Chairman and Managing Director of the Company. Thank you. And over to you, sir.

Kamal Khetan — Chairman and Managing Director

Thank you for joining Sunteck Realty’s second quarter and first half earning call for financial year ‘2023. Hope each one of you and your family are safe and healthy. In the first half of 2023, we have achieved a strong growth in both pre-sales and collections. This continued strong operational performance has enabled us to generate close to INR225 crore of operating cash flow surplus, which further makes the balance sheet more stronger, taking the negligible net debt equity ratio from 0.18 to 0.15. On a cumulative basis, since financial year ’21, we have generated close to INR750 crore of operating cash flow surplus. I’m happy to inform that all our existing growth engines, namely Sunteck City at ODC, Goregaon West, Sunteck World at Naigaon, and Sunteck Beach Residences at Vasai West are throwing positive cash flows on a sustained basis.

Now, on the execution front, construction is in full swing at all our ongoing projects. In the second quarter, we have leveraged one of our core strength of business development by acquiring approximately 7.25 acre of land parcel in the posh location at Beverly Park, Mira Road, in western suburbs of MMR. We intend to develop this close to 2.5 million square feet of luxurious residences, along with premium retail in this location. Now, since past two-and-a-half years, we have acquired approximately 25.5 million square feet across micro-market of MMR, and this is our Company’s best-ever performance. Our endeavor is to maintain this momentum going forward. I’m very proud of the team that we have built at Sunteck in the last 15 years and we are laser-focused on strengthening it further.

I will now hand over the call to our CFO, Mr. Prashant Chaubey, for his comments. Thereafter, I will be happy to answer your questions, if any. Over to you, Prashant.

Prashant Chaubey — Chief Financial Officer

Thank you, sir. Good evening, everyone, and thank you once again for joining us today and taking out your valuable time for this conference call. The financial and operational numbers have already been published on the stock exchanges. I believe all of you must have gone through the same. Now, I would like to highlight the key financial and business performance numbers. Our pre-sales grew by 24% year-on year in quarter two FY ’23 to INR337 crores compared to INR272 crores in quarter two of FY ’22. Collections grew by 60% year-on year to INR331 crores in quarter two FY ’23 compared to INR207 crores in quarter two FY ’22. For the first half, similarly, the pre-sales grew by 49% and the collections grew by 63%. With respect to the financial highlights, we have reported a consolidated revenue of INR224 crores in the first half of FY ’23 and our operating cash flow surplus stands at INR225 crores for H1 FY ’23.

We can now open the forum for questions from the participants. Thank you very much.

Questions and Answers:

Operator

Thank you very much. We will now begin the question-and-answer session. [Operator Instructions] We have a first question from the line of Adhidev Chattopadhyay with ICICI Securities. Please go ahead.

Adhidev Chattopadhyay — ICICI Securities — Analyst

Good evening, everyone. Thank you for the opportunity. I’ve got a couple of questions, I’ll ask them together. Sir, firstly, can you just tell us about what is the approval status of the upcoming project, especially Borivali and Kalyan, and the new Mira Road project we have acquired, if you could give us some context on the — when we could see the launches over there. And sir, secondly, the more longer-term strategic question. So in your slide, a referenced slide, I think 28 or 29 of the presentation, you have given a proposed launch pipeline of 7.5 million square feet over the next 18 months, and I think which is worth well over INR6,000 crores, the potential sale value of that inventory, plus I think we have got over INR2,000 crores of unsold inventory across our ongoing projects, so that gives us almost INR8,000 crores plus of inventory to sell. So considering that, where do you see the Company’s overall annual sales bookings growing in the next two to three years, and the visibility for this year, for the INR1,800 crores sales guidance? Yeah, that’s it from my side. Thank you.

Kamal Khetan — Chairman and Managing Director

Yeah, good evening, Adhidev. Thanks for asking this question. So approval of, obviously, various projects, we have all acquired these projects recently in last one, one-and-a-half year, the three projects which you namely said, Borivali, Shahad in Kalyan, and the third one I think Mira Road, which we recently acquired this a few months back. So obviously, we are aggressively — our liaisoning[Phonetic] team is working towards getting the approval along with landlords, because in all of these three projects, getting approvals is the responsibility, as per the agreement, is landlord’s responsibility. These are all three JDA projects. However, our team is putting the best effort in partnership with our landlords to get these approvals asap. Although, whatever target we have set for this year, we are quite confident that we will achieve our pre-sales target. And going forward in future years, obviously, with the new launches and all this coming up, I think we will be taking the sales — exponential growth you will see in the sales, and that’s what we have been seeing quarter-over quarter, if you look at it.

Coming to the [Indecipherable] what you have mentioned in the presentation, the 7.5 million square feet of launches, I think Prashant, can you [Technical Issue].

Prashant Chaubey — Chief Financial Officer

Thank you, sir. So, hi, Adhidev, Prashant this side. So Adhidev, as you have seen in the presentation, the target for — the pre-sales target for the Company for FY ’23 is INR1,800 crores and the overall target of the Company right now is to double our pre-sales every two to two-and-a-half years. So we want to — so if you consider that, by FY ’24, we want to reach a pre-sales of close to INR2,500 crores. That is the target for the Company. Now, in order to achieve that target, in the next 18 months, we are looking at these launches. So Kalyan and Vasind, we are looking at two million square feet of launches. We are looking at — in Borivali, around five lakh square feet of launches, in Mira Road, again, five lakh square feet of launches, and Vasai, Naigaon, and ODC, Goregaon West, these are projects which are already running, which are already the existing growth engines. So in these projects, you will see — you will keep on seeing new launches happening on a yearly or a one-and-a-half year basis. So that’s why this gives us the confidence that we can launch around 7.5 lakh square feet in the — by the end of FY ’24, and that should help us or enable us, so to speak, to achieve that target of INR2,500 crores of pre-sales that we have in our goal. So that is how this number has come, Adhidev.

Adhidev Chattopadhyay — ICICI Securities — Analyst

Okay. Sir, just one last follow-up that, this Goregaon ODC or other Naigaon, can we expect to see new phases being launched in second half of this year, considering that other projects which may take some time to get launched?

Kamal Khetan — Chairman and Managing Director

No, no. So we pushing simultaneously everything, Adhidev. ODC, we are launching — we are recently planning to launch, in fact, in couple of weeks, not even months, in maybe one or two weeks you will see the higher floors of 4th Avenue, what we have passed launch. So the new inventory will come in the market for both the towers. So all — and then again, we’ll do something, a new tower launch in Vasai. So Prashant already tried telling you that all these new launches — again, existing projects from where we are already getting the sustenance sales, there you will see new towers or new floors or new inventory coming up in the same projects and those launches will continue to happen, for sure, in the next six months.

Adhidev Chattopadhyay — ICICI Securities — Analyst

Okay, fine.

Kamal Khetan — Chairman and Managing Director

And we are very confident at least, out of these three projects which you are seeing, Borivali, Shahad, and the Mira Road, at least one new project also we are planning to launch in next four to five months. So we are pretty much there what we expect our targets towards. We are pretty much confident about achieving these targets because of all the things.

Adhidev Chattopadhyay — ICICI Securities — Analyst

Okay, fine, fine, sir. Okay, sir. Thank you, and all the best.

Kamal Khetan — Chairman and Managing Director

Thanks.

Prashant Chaubey — Chief Financial Officer

Thanks.

Operator

Thank you. We have next question from the line of Pritesh Sheth with Motilal Oswal. Please go ahead.

Pritesh Sheth — Motilal Oswal Financial Services Ltd. — Analyst

Hi, Kamal, sir. Hi, Prashant. Thanks for taking my question. Sir, firstly, just —

Operator

Sir, please go ahead and ask your question.

Pritesh Sheth — Motilal Oswal Financial Services Ltd. — Analyst

Am I audible?

Operator

Yes, you are.

Pritesh Sheth — Motilal Oswal Financial Services Ltd. — Analyst

Okay. Hi. So firstly on launches, I’ll just ask it other way around. So your FY ’23 pre-sales target is around INR1,800 crores and we have achieved one-third of that probably in first half, so obviously we would need launches to come up. So in terms of your expectations, how much launches we would need in terms of GDV potential to achieve that pre-sales target?

Kamal Khetan — Chairman and Managing Director

So Pritesh, very frankly, even if don’t do any new launch out of these three. We are pretty much there for INR1,800 crore looking at our existing portfolio itself. If you see if we do some new launches of higher floors of 4th Avenue in ODC, existing project of Sunteck City, and some new towers in Vasai West, a Sunteck — SBR projects — Sunteck Beach Residences at Vasai. And again, the Naigaon One World, whereas four to five towers, which are to be launched, the new towers. And plus there are four to five towers, which are we are coming up in the Sunteck Maxx World as well. So those two launches. Plus one or two of our commercial projects, which are already in construction, in full swing, Sunteck Crest, then Sunteck Pinnacle, and then the Sunteck Icon and Sunteck BKC 51. Out of these four projects, even if we launch — relaunch one more project once again, I think we’ll be pretty much achieving INR1,800 crores or maybe more than INR1,800 crores of the sales — pre-sales for this financial year, FY ’23.

Pritesh Sheth — Motilal Oswal Financial Services Ltd. — Analyst

Okay, perfect. That sounds good. And secondly, obviously, we don’t track it on quarter-on-quarter basis, but just P&L revenue decline. So where did we had a lower recognition this quarter in terms of any particular projects you want to highlight?

Prashant Chaubey — Chief Financial Officer

So hi, Pritesh, Prashant this side.

Pritesh Sheth — Motilal Oswal Financial Services Ltd. — Analyst

Hi, Prashant.

Prashant Chaubey — Chief Financial Officer

Hi. So Pritesh, as I have elaborated in the opening remarks also that the Company follows project completion method of accounting. So because of that, currently — if you see, currently, the majority of the revenue is coming from Sunteck City and and Sunteck Maxx World in Naigaon. These are the only two projects, which are currently coming into the revenue side, which you’ll see of INR81 crores for the quarter. Now, what is happening is on the expenses side. On the expenses side, all your revenue expenditure, which you incurred, like sales, marketing, those — or brokerage, those cannot be deferred. Those have to be amortized immediately in the quarter in which you incur them. So what happens, your expenses are — for projects whose revenue is not coming, their expenses are also getting booked into the P&L, however revenue is only getting booked in the P&L of the projects, which are completed. So because of this misnomer, you are seeing this — you are seeing the EBITDA margin to be slightly lower and the PAT also coming significantly lower.

Kamal Khetan — Chairman and Managing Director

That is [Speech Overlap] because of the expenditures, which are taken ahead of the — even the booking of the revenues of the other projects. So due to the consolidation.

Pritesh Sheth — Motilal Oswal Financial Services Ltd. — Analyst

Fair enough. In terms of the margins, I understand. But just wanted to understand on why there was a lower revenue recognition. So I mean, understood, that part on Sunteck City in Naigaon had a comparatively slower sales in this quarter that might have led to this lower recognition. Is it fair to assume?

Prashant Chaubey — Chief Financial Officer

Yes, Pritesh, just to give you one more data point, if you look at our operating cash flow surplus, okay? So for the first half, that has come at INR225 crores, okay? Now, this number is coming in the cash flow statement but it is not coming into the P&L, it is not getting amortized as of now. So what this shows that going forward, in the coming 18 months, you will see our P&L also performing in line with the cash flow statement. And as more and more projects get launched and executed, this anomaly will get corrected. So it’s only a matter of 18 months, Pritesh, that you have to take it — that you have to live with. After that, things will be much more stable.

Pritesh Sheth — Motilal Oswal Financial Services Ltd. — Analyst

Sure, sure. Thanks. I’ll have, I mean, couple of more questions. I’ll jump back in the queue. Thank you.

Kamal Khetan — Chairman and Managing Director

Thanks.

Prashant Chaubey — Chief Financial Officer

Thank you.

Operator

Thank you. We have next question from the line of Rahul Jain from Dolat Capital. Please go ahead. Yeah, hi, sir. Thanks for the opportunity. Sir, two questions. First one, if you can give us a breakup of sales between ODC and Vasai for the quarter?

Prashant Chaubey — Chief Financial Officer

So Rahul, I’ll give you the number. For — in — yeah, so in terms of the breakup of sales, Rahul, from 4th Avenue, we have done close to INR200 crores and the balance, from SBR, we have done close to INR75 crores in the current quarter. And if we look at the first half, in the first half, we have done — from Sunteck City, we have done close to INR230 crores, and from Sunteck Beach Residences in Vasai, we have done close to INR300 crores. So that’s the number for the quarter as well as first half and I will be sharing this Excel sheet also with you, sir.

Rahul Jain — Dolat Capital — Analyst

Okay. Okay, thanks a lot. And second one, sir, just I think uber luxury projects generally in the market have been taking off well. So I just want to know what’s your sales — are you planning to look at — or relook at your sales strategy in BKC? I mean, that has — that is still not that — it’s not taking off that well as of now.

Kamal Khetan — Chairman and Managing Director

Yeah, Rahul, it’s Kamal Khetan here. Yeah, so well, I appreciate your question. We are definitely, Rahul, looking at our sales strategy at BKC. We are looking, and we are quite optimistic, let’s hope the coming quarters you will see some numbers coming there as well.

Rahul Jain — Dolat Capital — Analyst

Okay, sir, thanks.

Kamal Khetan — Chairman and Managing Director

Thanks, Rahul.

Operator

Thank you. [Operator Instructions] We have a next question from the line of Parvez Qazi with Edelweiss Securities. Please go ahead.

Parvez Qazi — Edelweiss Securities — Analyst

Hi, Kamal, sir. Good evening. Thanks for taking my question. So first question from my side is, it would be great if we can get an update on the construction status for the. various commercial projects that we have in BKC, ODC, and Andheri. And second question for, Prashant, what would be our unsold inventory currently in ODC, Naigaon, and Vasai? Thank you.

Kamal Khetan — Chairman and Managing Director

So Parvez, Kamal here. Parvez, construction status of four commercial projects, which are ongoing — four commercial projects. So Sunteck Crest, I can say it’s almost more than 90% complete. I think we will be looking to give the possessions — get the occupation certificate in this quarter or maybe early next quarter, and we are looking to book that into the balance sheet, means book a revenue into the — the revenue into the balance sheet, P&L. Second is, the project, obviously, the — at ODC Pinnacle — Sunteck Pinnacle where we already sold the lower floors to DMart. Other sales are going as we are talking in sustenance mode. We are planning to launch in a big way, although, in this next one or — one-and-a-half month, even that inventory. That we are expecting to complete the project in the next financial year, FY ’24.

Coming to the BKC 51, Sunteck BKC 51 at BKC, and Sunteck Icon on the Junction of BKC, both the projects are, again, almost more than 80%, 85% complete. All the slabs are totally RCC structure is fully complete. The facade and the MEP work is going on, even that we are looking to complete the project and get the occupation certificate in next quarter itself. So three out of at least four commercial projects, we are hopeful to get the occupation certificate in this financial year of FY ’23.

Parvez Qazi — Edelweiss Securities — Analyst

Great.

Prashant Chaubey — Chief Financial Officer

And Parvez, coming to your second question, in terms of sales inventory, in Naigaon, we have close to around INR375 crores worth of inventory, which is pending to be sold from the existing launches, and this does not factor in receivables, just to clarify. And in ODC, we have close to around INR675 crores of inventory pending to be sold. So that’s the situation, and again, I’m clarifying, this does not include receivables.

Parvez Qazi — Edelweiss Securities — Analyst

And what would be this number for Vasai?

Prashant Chaubey — Chief Financial Officer

For — yeah, so Parvez, in Vasai, right now, we have launched — whatever we have launched, we have already sold. So what — I can give you a broad number of what our intention is of launching. If I keep that in mind, I have close to around INR850 crores worth of inventory, which is pending to be sold for my target launches, which is not currently launched.

Parvez Qazi — Edelweiss Securities — Analyst

And when can we see these launches in Vasai?

Prashant Chaubey — Chief Financial Officer

In one month.

Parvez Qazi — Edelweiss Securities — Analyst

Great. Sure. That’s it from my side, and all the best for future.

Operator

Thank you. We have next question from the line of Abhinav Sinha with Jefferies. Please go ahead.

Abhinav Sinha — Jefferies — Analyst

Hi. Sir, couple of questions. So one on the projects, have you seen any impact of the rising mortgage rates on demand? I mean, is demand holding up well for the affordable segment or if there is impact there right now? That’s first. And secondly also, if you can talk a bit about pricing of the various segments and projects.

Kamal Khetan — Chairman and Managing Director

So Abhinav, so regarding the sales, I think there is a good demand momentum. We all know that there is a sales — residential demand has been quite robust in last two years. And we see that continue — we see the momentum is strong even now across all the segment, whether it is affordable, whether it’s mid income as well as the luxury segment. So we are not worried about, I mean, the sales demand, means we feel that residential sales demand will continue to remain very strong.

Your next question, Abhinav, was —

Abhinav Sinha — Jefferies — Analyst

Sir, it was on pricing, but before that can you give me an idea about what percentage of your customers take a loan — home loan?

Kamal Khetan — Chairman and Managing Director

So I can tell you approximately also, and right now, so obviously, when it comes to luxury — super luxury, which is the product which is about INR30 crores, INR40 crores, there I feel only one-third or less than 25% of the customers takes loans, what we have seen in the past, what we have experienced. And in the mid-income segment, I can say this goes up to, let’s say, 35%, 40% or 50%, which goes up. When it comes to affordable, I think it goes to even 65%, 70% of the customers, they take loans. So I think that is what we are seeing in the three segments.

Abhinav Sinha — Jefferies — Analyst

Okay, that’s very helpful, sir. And my second question was on pricing, if you can talk a bit about that. Have you taken up your prices this quarter, et cetera?

Kamal Khetan — Chairman and Managing Director

So pricing, very frankly, if you ask me this quarter, obviously, we have not raised much pricing, but if you talk — if I talk to you about pricings, in last one, one-and-a-half year, I think across all the projects, maybe even in affordable or mid-income or luxury segment — uber luxury segment, the pricing has gone up. We have taken the pricing up by at least, let’s say, 10% to 15% the prices have gone up.

Abhinav Sinha — Jefferies — Analyst

Sir, thanks for that, and I will join the queue, yeah.

Kamal Khetan — Chairman and Managing Director

Yes. Okay, thanks, Abhinav.

Operator

Thank you. We have next question from the line of Abhishek Lodhiya with YES Securities. Please go ahead.

Abhishek Lodhiya — YES Securities — Analyst

Good evening, sir. My questions, I mean, is about the Pen-Khopoli project, which we have acquired. So did we started selling over there or what is the status of that project exactly? The plotted development.

Kamal Khetan — Chairman and Managing Director

Yeah, Abhishek, that project is obviously, the land parcel of Pen-Khopoli what you’re talking for the — which is like — which we have to do a plotted development mainly and maybe some construction of villas and row houses and all those things. That’s now at a very initial stage, I would say. I cannot comment when and what about, especially — if you ask me specifically about this project. We are not very optimistic that when — in the next one or two quarters, we are not looking at doing anything on that.

Abhishek Lodhiya — YES Securities — Analyst

Okay, sir. And secondly, on, sir, you have given some color on commissioning of commercial assets. So have you taken a call on whether we are, I mean, selling it or leasing it out?

Kamal Khetan — Chairman and Managing Director

So Abhishek, when it comes to Sunteck Crest, I think we have already taken call and we are selling it, so there we have sold quite a good inventory, if — you must have seen in the pre-sales of last two, three quarters. When it comes to Sunteck Pinnacle, the second project, there also we have already decided and we have taken a sale model because there we have already sold worth — an area worth almost INR100 crores to DMart, and then further inventory we are selling slowly on a sustenance basis. And right now, I told in my call just two questions before that — two or three questions before that we will be selling — we will be launching it in a proper manner in one, one-and-a-half month, even the further inventory of higher floors in Sunteck Pinnacle and that we will be selling it very aggressively.

Now, coming to the other two projects, which is commercial projects, Sunteck BKC 51 and Sunteck Icon. Sunteck BKC 51, we are already in talks, I can say, to lease out the entire building to one of the good corporate. And in terms of Sunteck Icon, very frankly, we have not yet decided what we should be doing, whether we should lease out or whether we should be selling. But whatever gets the best value for the company, I think we’ll take that call, because neither we are worried about sales due to any cash flow because cash flows are very strong. We don’t mind leasing it also. We’ll try to maximize the value. So we are just holding on our decision for Sunteck Icon. I think that, too — because the building will be ready in next three to four months with the occupation certificate. Before that, we’ll obviously take a call what to do with that.

Abhishek Lodhiya — YES Securities — Analyst

Sure, sir. Thanks [Indecipherable].

Operator

Thank you. We have a next question from the line of Prem Khurana from Anand Rathi Shares. Please go ahead.

Prem Khurana — Anand Rathi Shares — Analyst

— taking my questions, sir. Sir, first one was, I mean, if you could share your thoughts on competition. So why I ask this is essentially when I look at your residential real estate demand, especially in MMR, I mean, it’s been fairly strong for last two years now. So would this make some of these people, I mean, who were earlier in the business, but then went away because the markets are not doing good. I mean, do you see them to come back or do you get to feel as, I mean, there’ll be new entrants now or some of these large corporates because of the fact that, I mean, the — when I look at, I mean, in terms of regulation, I mean, it essentially seems that, I mean, the loopholes which used to be there earlier, I mean, have been taken away, which is where, I mean, it becomes [Indecipherable] for some of these larger corporates to kind of come and participate in the real estate industry now?

Kamal Khetan — Chairman and Managing Director

Prem. Good questions. I think, we are all seeing a very strong consolidation in the industry, so I don’t think there is a — so due to that consolidation, I think we did one of the best acquisitions in last two, two-and-a-half years, and which has been I think best-ever done by the Company. So I don’t see any worrying factor about the competition. And competition, if it is healthy and which is only good — and good corporates are coming, it is only good for, I believe, for the Sunteck and everybody. I am not worried about it. And there are very — there are N number of players which are compared to — one or two players entering is always good, new players. I think a lot many has vanished away from that system, which is much better I think. And I think I am — we are very — pretty much confident with our strong balance sheet and strong execution track record. We are not worried about any competition coming.

Prem Khurana — Anand Rathi Shares — Analyst

Sure. No, sir, why I want to understand was essentially and what I’ve been made to understand is what I’ve learned over the years is essentially the market or rather the cycle tends to go bad — not because, I mean, the demand goes down substantially, but essentially because of the fact that you get to have oversupply situation and there’ll be someone who would give in and then would start cutting prices, and which comes to impact the demand because, I mean, as an end user, if I’m buying a property, I mean, and I get to read in the media that the prices supposed to go down, I tend to — I mean, there could be a situation wherein I defer my purchase. So which is — I mean, I understand competition will move from that site[Phonetic]. Do you get to see that? I mean, there will be more launches and there could be over-supply situation or you don’t get to see that situation at least in the immediate future? And that’ll be all from my side. thank you.

Kamal Khetan — Chairman and Managing Director

So Prem, I can only say that — obviously, there may be a situation maybe after two years, maybe after three years, maybe after four years, at one point of time, there maybe an oversupply of something. But I don’t think, Prem, we should be worried about that. I think Sunteck has grown in last 15 years with most of the headwinds in the industry. We have grown the company when most of the companies have not been able to survive or could even managed to stay in these tough times with the headwinds in the sector. I think we have grown ourselves in this segment, in this sector with the headwinds. I am pretty confident that, going forward, if anything, any such situation comes, your company is strong enough, I think, to take that as a competition or anything as a challenge.

Prem Khurana — Anand Rathi Shares — Analyst

Sir, thank you, and all the very best for future.

Kamal Khetan — Chairman and Managing Director

Thanks.

Operator

Thank you. Ladies and gentlemen, that was the last question. I’d like to turn the conference back over to the Chairman and Managing Director, Mr. Khetan, for closing remarks. Over to you, sir.

Kamal Khetan — Chairman and Managing Director

Thank you all for taking out the time from your busy schedule today. In case, if any of your queries have been left unanswered, you can get in touch with me or my team. We look forward to your continued support. Thank you once again for joining us today, and please be safe. Thank you. Thank you, sir. Ladies and gentlemen, on behalf of Sunteck Realty, that concludes this conference. Thank you for joining us, and you may now disconnect your lines.

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