Suraj Estate Developers Ltd (NSE: SURAJEST) Q3 2025 Earnings Call dated Feb. 11, 2025
Corporate Participants:
Rahul Rajan Jesu Thomas — Whole Time Director
Shreepal Shah — Chief Financial Officer
Analysts:
Aditya Sen — Analyst
Unidentified Participant
Saumil Shah — Analyst
Jatin Kumar — Analyst
Analyst
Presentation:
Operator
Ladies and Gentlemen, good day and welcome to the Q3 and 9 months FY25 earnings conference call of Seoraj Estate Developers Ltd. 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 the star then zero on your touchdown phone.
Please note that this conference is being recorded. I now hand the conference over toMr. Rahul Thomas, Whole Time Director, Suraj Estate Developers Ltd. Thank you. And over to you sir.
Rahul Rajan Jesu Thomas — Whole Time Director
Thank you. Good afternoon and I welcome everyone to our Q3 and 9 months FY25 earnings conference call. Along with me we have a CFO, Sripal Shah, Mr. Ashish Samar, our internal IR and SGA, our investor relations Advisors. I hope all of you have gone through our investor presentation uploaded on the Exchange and our company website. India withstood all external and internal hiccups in the calendar year 24, including geopolitical tensions, periodic inflations, general elections, et cetera, and continues to be one of the fastest growing major economies in the world.
As for the Indian residential segment, After a strong 23 year, 24 has been a mixed bag partly because of a general and state election through the year. Both new launches and new housing sales saw a downward trend in the year while average residential price soared high in comparison to 23. New launches declined by 7% in 24 because of the slowdown in approvals amid elections.
Looking ahead, with mortgage rates remaining steady in March 23 and with the recent rate cut by the RBI, demand will further boost, particularly in the mid income segment. India’s real estate market mirrors the country’s overall economic optimism and we believe the sector is amid a prolonged growth cycle driven by strong structural fundamentals. That outweigh short term fluctuations. The residential market in 24 demonstrates a notable shift in the new launch patterns compared to the previous years. The mid segment between 40 lakhs and 80 lakhs continued to maintain its position as a significant contributor though with a reduced share of 28% of total launches showing a gradual decline from its 31% share in 2023. The high end segment, 80 to 1.5 crores, has maintained a relatively steady momentum with 26 point of the total launches indicating a sustained developer confidence in this category. A striking trend is the increased focus of premium segments with the luxury 1.5 to 2.5 and ultra luxury which is above 2.5 crore segment, collectively accounting for more than 30% of all launches, marking a rise from 22% in 23. This worked well for us as a company since this is our target segment. The quarter that went by witnessed higher realization of 64,321 driven primarily by pre sales from the luxury projects like Pallet and Oceanstar. As part of our long term vision, we have undertaken a strategic shift that has led us to intentionally postpone the launch of a commercial project on Tulsi Pipe Road to optimize market timing and enhance value creation. A key milestone in this journey has been the acquisition of the land just adjacent to our existing land parcel on Tulsi Pipe Road, significantly strengthening our development potential in this prime location. With this expansion, the GDV for a commercial project has increased substantially from 475 crores to 1200 crores, reinforcing our commitment to high value commercial real estate. The commercial project and residential projects delayed due to regulatory approvals will now be be launched in Q1 of FY26. While these factors have contributed to a revision in our guidance for FY25, we remain on track now to close the year with the presales between 500 and 525 crores. Despite the intended delay in commercial project launch, our launch pipeline remains robust and outlook for FY26 remains positive. With this, I would like to hand over the call to our CFO who will run through the financial highlights. Thank you Rahul. A very good afternoon to everybody.
Shreepal Shah — Chief Financial Officer
I will now run you through the financial highlights for the quarter and nine months ended December 2024. Starting with the performance for FY for nine months FY 2025, the total income grew 33% year over year to 416 crores versus rupees 313 crores in the last nine years nine months FY2024. EBITDA grew 2% year over year to rupees 176 crores in nine months. FY20.25 vs Rupees 180 crores in nine months FY24 pad grew substantially by 71% to Rupees 82 crores from Rupees 48 crore in nine months FY24 on a quarterly basis the total income grew 62% to Rupees 172 crores in quarter three FY 2025. From Rupees 106 crore in quarter three EBITDA degrew by 31% to Rupees 48 crores in Q3 FY25 vs Rupees 470 crore in Q3 FY24 pat grew 21% to Rupees 20 crores vs Rupees 17 crores in quarter three FY24. 62% of our total revenue for the quarter were from the Valley luxury projects like Vitalist which yielded lower margins thereby impacting our ebitda margins for Quarter 3 FY25. Additionally, higher operating costs further impacted profitability as during the quarter we took a one time feat of rupees 15 crores to a settlement of a litigation with one of our JDA partners. Coming to the operational performance for nine months FY25 pre sales degrew 21% on a year over year basis to 66,288 square feet from 84,423 square feet in nine months FY24 in value terms pre sales degrew 2% to rupees 355 crores versus rupees 361 crores in nine months FY24 collections grew 39% on a year on year basis to rupees 284 crores. From rupees 205 crores in nine months, FY24 realizations grew 25% year over year to rupees 53,455 per square feet from rupees 42,767 per square feet in nine months FY24 for the quarter three FY25 pre sales stood at 16,656 square feet. In terms of volume area and in terms of value, pre sales stood at Rupees one hundred and seven crores from which Rupees five crore was from the commercial shop. Sales collection stood at Rupees eighty four crores and relations were Rupees sixty four thousand three hundred nineteen per square feet. Pre sales remained subdued primarily due to the absence of new project launches during this quarter and the successful sale of our existing inventory realizations were high as majority of the pre sales for the quarter were from the luxury segment. With this, I would like to open the floor for questions. Thank you.
Operator
Thank you very much.
Questions and Answers:
Operator
We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on their touchdown telephone. If you wish to remove yourself from the question queue, you may press star and two participants are requested to use handset while asking your question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Aditya Sen from Robocapital. Please go ahead.
Aditya Sen
Hi. Thank you for the opportunity. So can you please share how much pre sales growth are we expecting in FY26 and FY27? Hi. So the guidance which we’re giving is for this year. We will update that in. You know, as the launches come about in the first quarter, we will be giving our guidance then.
So we’ll be discussing more this for this year. And so any color on how much launches are we expecting in the next 12 months? Sorry, could you repeat that? How much launches are we expecting in the coming 12 months?
Shreepal Shah
So we’re expecting the commercial launch and two other project launches in the first quarter of the next year. This year. Sorry. And beyond that in Q2, Q3 and Q4 of FY26. So mainly we’re focusing on the bigger launches. The commercial which will come in the first quarter and two other residential projects which also will be coming in the first quarter.
So these are the three projects which we are launching. There are other pipelines created. But we will want to commit what is already, you know, in advance stages.
Aditya Sen
Fair enough. Thank you.
Shreepal Shah
Around 1200 crore launch. And the two residential projects are estimated to have 400 crore GDV. So 1600 crore of launch. We are expecting the first quarter of next financial year.
Aditya Sen
Understood. And also the margins were down because of the value projects being a significant portion this quarter. So I believe going forward margin should improve. Is that a fair understanding?
Rahul Rajan Jesu Thomas
So the margins actually for this quarter because most of the revenue which was recognized under POCM was for the value luxury project. So the margins were lesser compared to our luxury projects. However, next quarter onwards, depending on the sale, we also have inventory in the luxury projects. So I think the margins will come back to normal. We also recognize some expenses on behalf of due to certain litigation. Which were solved, which was in one time in nature. So I think that will also that will not come again. So that’s where the margins will come back to normal.
Aditya Sen
Understood. Thank you.
Operator
Participants who wish to ask a question may press star and 1. The next question is from the line of Krishna Shah from Asica Stockbroking. Please go ahead.
Unidentified Participant
Yeah, good afternoon sir. So quickly wanted to understand the reason for slowdown in approval. Is it because of the elections that we had? Sorry, can you repeat that again?
Yeah, I just wanted to understand the reason for slowdown in approval is this is because of the elections that were going on in the last quarter and how have things picked up since the election?
Shreepal Shah
Yes, so it was partly because of that. Also because we’re discussing about the commercial project. We also added the neighboring plot. So we are ready to with the RERA in one of the cases. But since we acquired the neighboring plot, we thought it was, you know, the flow plate was getting better. So that’s how it is.
One shifted for the first quarter of next year. Otherwise you know, by itself it was ready for a launch. But it was a conscious decision from iron with regards to the residential. Yes, there was a bit of a delay from because of the election because certain approvals are pending. But we have received all the approvals in both the cases. So right now we have nearly CC and RARA registration formalities which we are confident we will get it before the first quarter.
Unidentified Participant
Okay, so for the commercial again quickly wanted to check last quarter you mentioned that we there’ll be no lease kind of a portfolio there and we’ll be selling entire commercial plot. So is are we following the same strategy or are we trying to build an annual portfolio?
Shreepal Shah
It will be a sale model.
Unidentified Participant
Okay, got it. Third question in terms of completions. So are we in track of completing the project and how is the collection scenario? So collections are healthy, as we discussed, there’s about 84 crores of collections for this quarter. So it has been healthy collection.
Shreepal Shah
So collections are healthy, as we discussed, there’s about 84 crores of collections for this quarter. So it has been healthy collection. And we expect with the commercial we also are doing, we also have a commercial project running. So we expect good cash flows coming from that.
So we look at the collections being healthy going forward, especially with the new launches of the commercial. Since we’re also discussing with larger floor plates, we see good collections coming in once we launch it.
Unidentified Participant
Okay. Okay, got it. And one last question on our margin. So I understand that it’s falling in quarter but what would.
Unidentified Participant
Be our margin during Q4 of this year and going forward, what can be our long term EBITDA margin?
Shreepal Shah
So it will be more of a normalized in the range of 40 to 45% we are expecting. It also depends upon the revenue being recognized, depends on the work progress. So accordingly those will pan out. And the product mix also is an important factor. But we are targeting in the range of 42
Unidentified Participant
For the FY25, right?
Shreepal Shah
Yeah.
Unidentified Participant
And for FY26, if you could just give a ballpark figure.
Shreepal Shah
So for FY26 we will give the guidance in after the annual results at a time of annual results.
Unidentified Participant
Okay. Thank you. Thank you so much and all the best.
Operator
Thank you. Before we take the next question, we would like to remind participants that you may press Star and one to ask a question.The next question is from the line of Soville Shah from Paris Investments. Please go ahead.
Saumil Shah
Hi, good afternoon. I joined a bit late so I don’t know if this question was asked. So. So we were aiming for a Pre sales of 850 crores for the current financial year and GDV of around 1150 crores. So can you tell us, I mean, would you like to revise our guidance for the current year?
Shreepal Shah
Hi Swamilji. In terms of our guidance, we had broken up our guidance into buckets. 250 crores coming from between 600. Sorry, 650 crores coming from residential and 200 coming from commercial. As we said a little bit earlier on the call that we’ve purchased the neighboring plot as well in the commercial segment which has increased our GDV to approximately 1200 crores now so that 200 crores may spill over for the first quarter of next year.
Meanwhile, from our residential to residential segment we are revising our guidance between 500 to 550. However we are, we will strive to achieve the earlier mentioned guidance. But today our guidance is between 500 and 550 for the residential. Correct.
Saumil Shah
Okay. And any ballpark number for FY26 in terms of pre sales.
Shreepal Shah
So we’ll want to bring. Bring that once the launches are, you know, once it’s done. We would like to give the guidance once we’re done with this, this financial year,
Saumil Shah
Maybe in the next quarter call, you’ll be giving us the guidance. Okay. Okay. And the EBITDA margins which we were down this quarter.
So can we achieve the EBITDA margin the next quarter?
Rahul Rajan Jesu Thomas
Yes, as we said earlier, it was on account of an exceptional expense which we have taken up for this quarter.
Shreepal Shah
For to settle our litigation. So our normal EBITDA margins will be reinstated going forward. Going forward.
Saumil Shah
Okay. So we’ll be back to our EBITDA margins which we were doing in the next quarter.
Shreepal Shah
So it will be depending on the product mix, it will pan out depending upon what product mix we get recognized. So. But we are targeting 40 to 45% in terms of EBITDA margin.
Saumil Shah
So these are sustainable ones. 40 to 45%. That’s a problem. Thank you.
Operator
Thank you. Ladies and gentlemen. If you wish to ask a question to the management, you may press star and 1. The next question is from the line of Ankit, an individual investor. Please go ahead. Ankit, your line has been unmuted. Please go ahead with your question.
As there’s no response, we’ll move on to the next participant. It’s from the line of Aditya Sen from Robocapital. Please go ahead.
Aditya Sen
Hi. Thank you again. Sir, is it possible to share how much revenue are we going to recognize in FY26 and FY27?
Shreepal Shah
So overall for the nine months we have already achieved 416. So we are expecting overall for the FY25 500 to 520 range.
Aditya Sen
No, I’m asking on a. How much revenue are we going to recognize in FY26 and FY27 the following two years?
Shreepal Shah
So that guidance will give you an FY25. Sir, we have already. Yeah. In the next call we’ll mention it.
Aditya Sen
All right.
Operator
Participants who wish to ask a question may press star and 1. The next question is from the line of Sagar from kar. Please go ahead.
Unidentified Participant
Yeah, hi, this is Sagar from Nimblebang. Am I audible?
Shreepal Shah
Yes, absolutely.
Unidentified Participant
Yeah. Thanks for this opportunity. Sir, any update on our Bandra project? If you can share some expected timelines or what we are doing there. Thank you.
Shreepal Shah
So our Bandra project is on track. I can only tell you that the exact timeline we will you know as it’s linked to regulatory approvals. We want to be sure this time before we discuss on the exact timeline. So we’ll let you know by the next quarter. By then I think more things will be clear on the timeline. So give us time for this. Quarter. Maybe this. This quarter. And we will. We will inform you.
Unidentified Participant
Sure. Thanks. That’s it for my thing. Thank you.
Operator
Next question is from the line of Jatin Kumar from JK Capital. Please go ahead,
Jatin Kumar
Sir. What is the reason? What is the reason, sir? Increasing of project operating expenses. Hello, sir. [Foreign Speech]
Project expenses increase primarily this quarter. May litigation solve care with JDA partner. So because of which we had to take one time hit. And second reason is also because of the product mix.
Shreepal Shah
This time 62% of the revenue was recognized on the value luxury segment as compared to the previous quarters. Where exactly the reverse percentage was for luxury project.
Jatin Kumar
Yes, sir. Just say many report correct. [Foreign Speech]
Shreepal Shah
The demand is there. Presales are reflecting those. But revenue which got recognized in this quarter was less than the previous two quarters from the luxury segment.
Jatin Kumar
Okay, sir. Okay. And sir, one time.[Foreign Speech]
Shreepal Shah
Yeah, one time. Is there going forward it will not from this particular aspect. It will not repeat.
Jatin Kumar
Okay, sir. Okay. Thank you.
Shreepal Shah
Thank you.
Operator
Thank you. Participants who wish to ask a question may press star and 1. The next question is from the line of Anand Sundara from my temple capital. Please go ahead.
Unidentified Participant
Hello. Good afternoon, sir. Thank you for the opportunity. So this one time this JDS settlement expense is reflecting in which 9 item and which asset does this pertain to?
Shreepal Shah
This is pertaining to project Nirvana which we have a JDA with the JD for the area share is there. There was ongoing mitigation already disclosed that has gone settled.
Unidentified Participant
Okay. Okay. And which line item does come in like this Expense is showing up in which line item? No, sorry. Which line item are meant in the pnl? Which line item is coming in Operating.
Shreepal Shah
Operating expenses.
Unidentified Participant
Operating. Okay. And is there any other contingent liability or any disputes with any other JDA partners apart from this?
Shreepal Shah
No. No other contingent liabilities.
Unidentified Participant
That’s it from mine. Thank you.
Operator
Thank you. Participants who wish to ask a question may Press Star and 1. The next question is from the line of Aniket Kulkarni from BMSPL Capital. Please go ahead.
Unidentified Participant
Yeah, thank you for taking a question. So you sounded pretty cautious in your opening commentary on the real estate demand. So sir, can you please elaborate on how the Mumbai market is looking right now and how many redevelopment launches have happened in 2024 and how many are expected to happen in 2025?
Shreepal Shah
Sushanti, what we can comment on is the areas which we operate in because it’s a very localized play and I won’t have the entire industry report for the launches. Maybe we can share it with the offline. We have couple of reports from real estate experts about the industry overall.
But what I can tell you is the south central Mumbai market which we are operating has been relatively steady all the time. We are seeing good demand in both the segments. We are seeing exceptional demand in the commercial segment. And that’s why we are going heavy on the commercial launch which is expected in the first quarter.
And I can tell you that next year will be definitely good for us because we have commercial, we have the valley luxury launches all panned out for the first quarter.
Unidentified Participant
Okay, understood. And secondly, if you can elaborate on how the competitive scenario is with respect to the redevelopment projects in the MMR regions and you know, how is the demand looking in comparison with the existing and expected supply which will come in 2025.
Shreepal Shah
So the area which are operating, we don’t feel that we will have any problem in terms of pre sales because we have very, very prime locations. So the launches we are planning is at Shivaji Park 1 at Kabadevi, just behind Siddhivanak Temple. The third commercial project is on Tulsi Pipe Road which is the main Senapati Buffet.
So we are at landmark locations. The product mix is such that we are catering obviously to the masses in the residential where it is a value luxury segment. So I think the demand is very, very strong in the residential segment and commercial. So we don’t see any issue on the demand per se in these new launches.
Unidentified Participant
And on the supply side, I mean demand side is not an issue. But what is the situation on the supply side? If you have any idea,
Shreepal Shah
Supply redevelopments, I think where we really have to distinguish for a customer’s perspective. Is the brand established? That’s where brands come into picture, where people want to go and associate with the brand who they trust and tried and tested. I think that’s where we have the edge, especially in South Central. We’ve been there for the last 38 years catering to multiple generations of customers. So I think that’s where we will have the edge and I think that’s where the branding comes into play.
Unidentified Participant
All right, thank you for taking my question.
Operator
Before we take the next question, we would like to remind participants that you may press Star and one to ask a question. The next question is from the line of Krishna Shah from Ashika Stockbroking. Please go ahead.
Unidentified Participant
Oh, just quickly want to understand what would be our business development guide for the coming year? Hello.
Shreepal Shah
Yes, we can hear you.
Unidentified Participant
I just wanted to understand the business development guidance for this quarter and for the year to come. Back
Shreepal Shah
In terms of business development, as we spoke, we are betting heavy on commercial. So I think we are examining a few commercial ventures. So that would be in terms of business. I can’t give you exact specifics of that today. It’s too early in the day. But we can just tell you that we are examining two, three more deals.
One is in the society redevelopment perspective, one is in the commercial perspective. So we are looking at new deals, but also mainly focusing on the new launches which we have already pipeline created.
Unidentified Participant
Okay, got. And so like we mentioned that our key competency is in the development in 337. 337 and 337 p. So can you just quickly explain how many projects do we bid for and what, what would be our success rate in those projects?
Shreepal Shah
Sorry, could you repeat that? What would be what,
Unidentified Participant
What would be how many projects do we bid for in the redevelopment scenario and what would be our success rate?
Shreepal Shah
Right now we already have a pipeline created. Unless the project is adding value. If it’s next door only then we’re looking at a very active BD right now. But as I said, if it’s next door to us is creating value. Like we bought the commercial land next door. We see a better flow plate, better gdv, better layout. You’re looking at BD just merely going for a new project out of the blue is not the set as of now.
Analyst
Okay, got it. Thank you so much.
Operator
The next question is from the line of Sagar from Nirmalpam. Please go ahead.
Unidentified Participant
Yeah, thanks for the opportunity. Again, just to follow up on the question of the previous participant regarding the demand in the micro market where we operate. Sir, we have multiple metro stations that will be starting be it Siddhi, Vinayak, Dadar and Shitalajivi in the area that we operate. So how do you expect this to affect the sales velocity and the realization for our projects?
Shreepal Shah
In fact, I feel having a metro will help our projects because connectivity gets better. People will use the public transport especially our 1BHKs. Where many of them don’t opt for a car parking, it becomes very easy for them to commute. So. So I think the value luxury segment will definitely deeply benefit along the metro corridors.
Of course there is a notification for additional FSI as well. So that way we see a lot of development happening on the TOD front which is the Transit Oriented Development policy. And I think around the metro areas is where the developments will occur right now
Unidentified Participant
And on this DoD, is it possible to quantify how much additional FSI we will be eligible for? Now
Shreepal Shah
The notification is out. It again depends on. There are a lot of parameters for each plot depending on the size, depending on the road with which you are butting and whether you’re finding meters from the metro. These are the different criteria. But I can tell you that we are eligible in most of our plots for this. That’s what I can leave you with.
Unidentified Participant
All right. And any rough number that you can give us how much additional difference we can get with this.
Shreepal Shah
It’s too early. We’re working on something. Let it kind of materialize and then we’ll let you know.
Unidentified Participant
All right, thank you. That’s it for myself.
Shreepal Shah
Thank you.
Operator
Thank you. Participants who wish to ask a question may press star and 1. The next question is from the line of Shamil Shah from Paris Investments. Please go ahead.
Unidentified Participant
Hi. Thanks for allowing me a follow up. So if I’m seeing your presentation, we have 13 ongoing projects and I think 90% of it is almost sold. Is my understanding correct?
Shreepal Shah
That’s correct.
Unidentified Participant
So I mean we are hardly left with 10%. So I mean how many new launches are we expecting in the coming quarter?
Shreepal Shah
So the coming quarter we have three new launches. So when I say coming quarter, we’re seeing first quarter is what we’re expecting. The three new launches we have approximately 1200 crores of the commercial launch and 400 crores of the residential launch. So we’re talking about total about 1600 crores. 1600 crores.
Unidentified Participant
Crores in the first quarter of FY26.
Shreepal Shah
Correct.
Unidentified Participant
And for the current quarter we are not planning any new launches
Shreepal Shah
This current quarter. We are trying to. We are waiting for the RERA registration. Maybe it gets preponed. But as a commitment we would keep it for the first quarter. Because you know government regulation regulators are such that we cannot estimate exactly when we’ll get the RERA approval. But we are on the job. It may be preponed for this quarter.
But you know we just want to be safe before we discuss in terms of the timeline.
Unidentified Participant
Okay. And what. What would be the value of the gross development value of the balance ongoing project.
Shreepal Shah
So we are left with around 50,000 square feet. 300 crore is the inventory we are estimating which is left in the online development.
Unidentified Participant
Okay. Okay. That’s it. From my side. Thank you and all the best.
Operator
Thank you. A reminder to all participants that you may press star and one to ask a question. The next question is from the line of Amit Sagal, an individual investor. Please go ahead.
Unidentified Participant
Hi. So I would like to know about the fourth quarter. Revenue is going to be low around 8200 crores is in that case do you want to clarify that? And also the pat like sorry but like in the depth of this I would also like to understand like also your EBIT margins are low. What is your guidance for going forward? Sorry, there are three questions. If you want me to repeat I can do that or else.
Shreepal Shah
Yes, if you can just repeat one by one we would be happy to answer it.
Unidentified Participant
All right, let’s go with that. So fourth quarter revenue is going to be low around 8200 crore. In that case can you clarify that and the margins.
Shreepal Shah
So fourth quarter we are targeting 110 crore which is live with the overall guidance for FY25 in line with the overall guidewinds and pack for quarter four will be close to 110 crore types. We are targeting quarter. We are.
Analyst
Okay. And how about the EBIT margins? Like how are you planning to run? Because I think like you’re talking about one time hit of that 15 crores. Right. So that which actually the 50 crore in total but we have only in the PPT I can only see that there is one time hit of 50 crore only.
So if you can please clarify on that as well. Like there is one time hit of 15 crore but it actually shows there is a 50 crore. So what is the other 35 that got us? So this was only one.
Shreepal Shah
Time. So for this quarter our EBITDA margins will be in line of 40 to 45%. That is what sustainable.
Unidentified Participant
Okay. Okay. All right. And so switching the gears a little bit like do you know why were your pre sales also less like from 143 to 107?
Shreepal Shah
Can you come back? Sorry, what is the question?
Unidentified Participant
So pre sales also were less like this quarter in the PPT that I can see is like 143 to 107. Particular reason for that.
Shreepal Shah
So pre sales for Last quarter was 107 this year. This quarter also we did the same number. We expecting to cover up that in the March, March quarter. Our guidance for the entire year would be between 500 to 550. We are very confident on getting achieving that number.
Unidentified Participant
Okay, so that’s what the guidance. I was just asking like it was 150 the quarter before like any particular reason? Like we see that pre sales is down from 150 to 143 to 107.
Shreepal Shah
So if you see there are no new launches and the existing inventory is almost blow. So we don’t have much console inventory left in the ongoing portfolio of projects. That’s the reason there is a dip in the pre sales for this quarter.
Unidentified Participant
All right. And one last question.
Shreepal Shah
Sorry, go for it please go ahead.
Unidentified Participant
All right. So the last question would be like we did a preferential of 250, I guess and then we brought about a commercial plot for 100cr and but what I see is like debt also increased on the book. Is there any particular reason for that debt increase?
Shreepal Shah
Gross debt has increased, sir, but the net debt has reduced by 20 crore. So that is we have in fact repaid some high cost debt also which was taken from ICCI venture close to 35 to 40 crores which was a 78.25% interest rate. Now after that weighted average cost of debt has come down to 12 12.990 percentage points. It was earlier I think 13 to 13.5% range. It has come down to 12.9%.
Unidentified Participant
Okay. All right. And I think like what’s the cash right now? If you can just help, help me understand that.
Shreepal Shah
So closing cash balances rounds 72 crores as on December. December.
Unidentified Participant
Okay.
Unidentified Participant
75. Are you saying 5.80 crores?
Shreepal Shah
75.80.
Unidentified Participant
All right. All right. That sounds good to me. I’m looking forward to next quarter. So. Yeah, thanks.
Operator
Thank you. Ladies and gentlemen, if you wish to ask a question, you may press star and 1. The next question is from the line of Rohit Pera from SK Securities. Please go ahead.
Unidentified Participant
Yeah. Hi sir. Thank you for the opportunity. I have a couple of questions. The first is, as you said, there are no. For the last part that as there are no project launch in last few quarters. I think from last two quarters. So our peers seem to have been very aggressive in terms of the project launches and which indicates smooth regulatory approval. Can you help us understand what led to the deliveral?
Shreepal Shah
The commercial was a conscious decision. We were ready to launch that with the GDV of approximately 425 crores. But since we acquired the neighboring plot, we thought it was a prudent call to sell it as larger floor plates and a better layout and having podium car parking than mechanized car parking.
So I thought from a larger perspective we thought sale would be better when people prefer. And that was only possible with the acquisition of the neighboring plot which we have done so that it was an intentional delay because of the neighboring plot. As I said for the commercial, the residential side, we have two launches.
We may look at even launching that by March end. But that’s not a commitment to be safe. We have said both those launches will go out for the first quarter. But there are chances that if we get the RARA registrations early, we may launch it before March as well. So both the plots we are with sitting with the IOD and the plan approval. So from a plan approval perspective we are ready.
We just need to complete the RARA formalities before we officially launch.
Unidentified Participant
Got it? Got it. So thank you. And my next question is our realization are very high versus our historical realization and any particular reasons for this end and are this sustainable? Assuming the product mix changing going ahead.
Shreepal Shah
So the realization for this quarter primarily the pre sales majorly has come from the luxury segment. That’s why it’s looking higher.
Unidentified Participant
So are they sustainable?
Shreepal Shah
Yeah, it will depend on the product mix for the next quarter. So.
Unidentified Participant
Okay, sure, sure. No, that’s it for myself. Thank you.
Operator
Thank you. The next question is from the line of Para. From Quantum. Please go ahead.
Unidentified Participant
Yeah. Hello.
Shreepal Shah
Yes.
Unidentified Participant
Yeah, hi sir. I have two questions on TOD and one on the commercial launch. In terms of TOD policy, is there clarity on approvals being sanctioned as of now? And second, would there be a trade off in terms of lower car park or lower parking requirement? Would there be a trade off in sales that you perceive? And lastly, the commercial launch, is it going to be a strata sale or is it going to be leased out?
Shreepal Shah
Correct. So let’s start with the first question about the TOD policy. There have been approvals already granted by the MCGM under the TOD policy. Secondly, about your car parking. Your question on the car parking, if you propose the TOD policy, you’re correct. The car parking requirement does come down.
Having said that, depending on the type of project there are ways to kind of. You can even make premium payments and approve car parking. That’s why I said it only makes sense if it’s a high end project or a commercial project where you feel the realization will be high. And your third question on the commercial front, it will be built to suit for. It will be for sale, not for lease.
Unidentified Participant
Thank you. All right. Thank you so much. They’re all my questions.
Operator
Thank you. A reminder to all participants that you may press Star and one to ask a question. The next question is from the line of Sohmal Shah from Paris Investments. Please go ahead.
Unidentified Participant
We have 18 upcoming projects. So what would be the GDV for this? 18 upcoming projects. So the estimated GDP is close to 6,000 crores. And square feet wise, is it 10 lakh approx or 60,000 rupees average price?
Shreepal Shah
Yeah, 60,000 per square feet on average realization.
Unidentified Participant
Okay, okay, okay, understood. And how much of it will be launched? Maybe in FY 26 out of the 18 projects.
Shreepal Shah
So three projects. As I said earlier, we are targeting to launch in first quarter of FY26 which will have a DD of 1600 crores.
Unidentified Participant
Yeah, and I’m. I’m talking about full year. Any guidance that annual guidance
Shreepal Shah
We will give in the next quarter.
Unidentified Participant
Okay. Okay, fine. Thank you.
Operator
Thank you. Ladies and gentlemen. If you wish to ask a question towards the management, you may press Star and one at the start. Time. As there are no further questions from the participants, I now hand the conference over to the management for closing comments.
Shreepal Shah
I take this opportunity to thank everyone for joining the call. I hope we have been able to address all your queries. For any further information, kindly get in touch with us. Sga, our Investor Regulation Advisors. Thank you so much
Operator
On behalf of Suraj State Developers limited that concludes this conference. Thank you for joining us. And you may now disconnect your lines.