Suraj Estate Developers Ltd (NSE: SURAJEST) Q4 2025 Earnings Call dated May. 28, 2025
Corporate Participants:
Rahul Rajan Jesu Thomas — Whole-time Director
Shreepal Shah — Chief Financial Officer
Analysts:
Utkarsh Jain — Analyst
Bhavin Modi — Analyst
Unidentified Participant
Anant Mundra — Analyst
Tanya Desai — Analyst
Himanshu Dugar — Analyst
Presentation:
Operator
Ladies and gentlemen, good day and welcome to the Suraj Estate Developers limited. Q4FY25 earnings conference call. 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. Conclude 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. Rahul Thomas, whole time Director of the Company. Thank you and over to you sir.
Rahul Rajan Jesu Thomas — Whole-time Director
Good afternoon to our Q4FY25 earnings conference call. Along with me we have our CFO Mr. Sripal Shah, Mr. Ashish Samala, intern Layar and SGA, our investor relation Advisors. I hope all of you have gone through our investor presentation uploaded on the Exchange and our company website. FY25 was a remarkable year for us. While the strategic reconfiguration and consolidation of selected land parcels led to some delays in project launches, these steps have significantly enhanced the efficiency and long term value of our project layout. We saw strong broad based momentum across our portfolio spanning luxury value, luxury and commercial segment.
We are optimistic that the deferred commercial project along with few residential projects delayed due to regulatory approvals will be launched in H1FY26. During the year we raised 343 crores which was fully utilized towards acquiring commercial land, working capital and paying for additional FSI. We recently acquired a 390 square meter land parcel at Shivaji park where we plan to develop a luxury project with an estimated GDV of 80 crores offering scenic sea views alongside, excellent Metro connectivity. As we look ahead to FY26, we’re excited about a strong and diverse launch pipeline that reinforces our leadership in South Central Mumbai market.
This includes a marquee commercial development in Mahim along with multiple value luxury residential projects in Mahim, Shivaji park and the other. Our deep expertise in redevelopment under DCR 3037 continues to be a key differentiator enabling us to unlock complex projects deliver high value outcome. In FY26 we plan to launch a mix of residential and commercial developments with a combined GDV of 2000 crores. This includes contribution from three projects in the residential space such as Parkview, one which is in Shivaji Park, Lobovila in Mahim, JRE project in Baikala, Lucky Chawl in Mahim, Shivaji park project which was recently acquired. Further, our commercial development on Tulsi Pipe Road alone accounts for 1,200 crores of the GDV.
Additionally, we’re happy to announce that we have in principle approvals of 2 lakh square feet of additional carpet area under the Metro FSI for our Marinagar project in Mahim. This expects. EOF To generate an incremental GDV of 800 crores only in this project on account of the Metro FSI further strengthening our growth prospects. With regards to new launches, our project Parkview one in Shivaji park and Kauri Wadi in Prabhadevi is on track. All our tenants have been relocated, the existing buildings have been fully demolished and the site is now fully vacant. We have applied for commencement certificate post which we will obtain RARA registrations for both these projects. The combined GDV of these two projects alone is 370 crores. With regards to the commercial launch, we have received FHIYA approvals for the amalgamated plot of 426A and 426B. We have submitted concession approvals and expect the same shortly. With the FHIR approval already in place, we are on course for a high impact launch in H1 of FY26. With a calibrated strategy, a robust pipeline and supporting market fundamentals, we are well positioned to drive sustained growth and deliver long term value to our stakeholders. With this, I would like to hand over the call to our CFO Sripal Shah who will run you through the financial highlights.
Shreepal Shah — Chief Financial Officer
A very good afternoon to everybody. I will now run you through the financial highlights for the quarter ended and important year ended March 2025. Starting with the performance for FY25, the total income grew 33% year over year to 55 rupees 553 crores versus rupees 416 crores in FY24. This growth was primarily driven by increased sales of units supported by strong brand recognition in the south central Mumbai micro market. EBITDA decreased 13% year over year to rupees 207 crore in FY25 versus rupees to 36 crore in FY24. Operating margins were impacted by higher operating costs including a 30 crore charge in FY25 for settling litigation with a JDA partner.
The settlement cost was split equally between 15 crore booked in quarter three FY25 and 15 crore in accordance for FY25. PAT increased significantly by 48. Sorry ladies and gentlemen, if you have the line for management disconnected, please stay connected while we reconnect them. Sam,
Operator
Foreign Ladies and gentlemen, thank you for patiently waiting. We have the management back with us online. Over to you shipalsav
Shreepal Shah — Chief Financial Officer
So I’ll just repeat, I think we got disconnected in between. So just to Starting with The performance for FY 2025 the total income grew 33% year over year to Rupees 553 crores versus Rupees 416 crores in FY 2024. This growth was primarily driven by the increased unit sales supported by strong brand recognition in the south central Mumbai micro market. EBITDA degrees 13% year over year to Rs. 207 crores in FY25 versus rupees 236 crore in FY24.
Operating margins were impacted by higher operating cost including a 30 crore charge in FY25 for settling litigation with the JDA partner. The settlement cost was split equally between 15 crore booked in quarter 3 FY25 and 15 crore book in quarter 4 FY25. Pads increased significantly by 48.5% year over year from rupees 67.5 crores in FY24 to rupees 100.2 crores in FY25. The increase was attributed to better price realization and savings in finance costs. During the financial year.
PAT margin improved from 16.4% to 18.3% reflecting a more efficient cost structure and value accretive sales on a quarterly basis. The total income grew 33% to rupees 137 crores in quarter four FY 2025 from rupees 103 crores in FY quarter for FY 2024. EBITDA degrees 45% to rupees 31 crore in quarter four versus rupees 56 crore in quarter four FY24 pad grew 6% to rupees 18 crore versus rupees 20 crore in quarter four FY 2024.
Coming to the operational performance for FY 2025 pre sales in value terms grew to rupees 501 crore which was in line with our revised guideline which was issued during the quarter three FY 2025 versus 480 record in FY 2024. This is a notable achievement despite no new launches during the particular financial year. Collections grew 22% on a year over year basis to rupees 386 crore from rupees 316 crores in the FY 2000. Ground 24 collections for FY25 improved due to strong execution focus and the steady stage wise progress of the ongoing projects along with a good sales in terms of balanced mix of portfolio of projects. Realizations grew 21% yearly over year to rupees 54,353 per square feet from 45,074 per square feet in FY24. For quarter four FY25, pre sales grew 14% year over year and stood at 25,848 square feet in terms of area up from 22,713 square feet in quarter four FY 2024. This strong growth driven primarily by robustness in luxury projects such as Pallet and Ocean Star along with successful absorption of existing inventory in the value luxury segment. In value terms, Pre sales grew 20% year over year and stood at 146 crore from which rupees 122 crore was in quarter four FY 2024. Collections for quarter four FY 2025 stood at 103 crores and relations grew 5% to 56,508 rupees per square feet in quarter four FY 2025 versus rupees 53,651 in quarter four FY 2024. Variations were highly supported by strong contribution from luxury project sales. Our net Debt rose from 360crores in December 2024 to rupees 414crores in March 2025 driven by fund requirements for the launches of our upcoming portfolio of projects which include a commercial project at Mahim Parkview 1 which is and Kovaliwadi and Kripa Siddhi, project at Prabhupadiri and project at Marinagar for which we have obtained in principal NOC from Metro and land acquisition at Shivaji Park. With this I would like to open the floor for questions. Thank you.
Questions and Answers:
Operator
Thank you very much sir. We will now begin the question and answer session. Anyone who wish to ask a question may press Star and one on their touch tone telephone. If you wish to remove yourself from the question queue, you may press star and 2. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we’ll wait for a moment while the question queue assembles. I would like to remind participants if you wish to ask any questions, you may press Star and one. We have a first question from the line of Utkarsh Jain from D Street Broking. Please go ahead.
Utkarsh Jain
Hi sir, good afternoon. Can you hear me?
Rahul Rajan Jesu Thomas
Yeah, absolutely.
Utkarsh Jain
Yeah. So I had one query like what’s your guidance for, for this financial year in terms of like revenue growth and for EBITDA margin. And sir, also like can you guide an EBITDA margin like a figure so that we can assume like it fluctuates every quarter. Our margin fluctuates every quarter. Was there a number like we can assume?
Rahul Rajan Jesu Thomas
So we’ll start with the, with the pre sales. We’re just waiting for the launch of these three of our new projects. So we will be giving the guidance very shortly. You can be part of the call for that. With regards to the margins, I think Shilpal will explain.
Shreepal Shah
EBITDA margins are typically in the range of 40 to 45% annually quarterly. It will differ because of the product mix and value segment in luxury and commercial and also depends on the progress of the projects on quarter and quarter and as a result of which we have to see annually. So annually we feel 40 to 45% is the EBITDA margin is sustainable.
Operator
So we have the participant disconnected. We’ll move on to the next participant from the line of Bhavin Modi from Anandrati. Please go ahead.
Bhavin Modi
Yeah. Hi those for My first question is regarding the know the 30 crore litigation, right. So 15 crore is charged in Q3 and 15 going Q4. So can you just help us in what is is you know the litigation about, you know and are there any, you know further ongoing litigations, you know, for which there will be financial implications.
Shreepal Shah
So this litigation was with Runwal, our partner in our project called Nirvana. That’s already part of our DRHP and already mentioned in the litigation section of, of drhp. We have now settled that matter amicably and in fact to say that we also got OC for that and handed over to our customers. So as part of our settlement deed we want we had to pay. So this is two amounts, 15 crores last quarter and this which will be the amount which will be charged to the pnl. This is again a one time matter to settle the matter with the JDA partner.
Bhavin Modi
Okay, so there are no further litigations. Right. Right now which are. I think everything is settled, right?
Shreepal Shah
Absolutely.
Bhavin Modi
Yeah. The second question is respect to the you know, the pre sales, you know that you have done in Q4. So what is the unit. The implied EBITDA margin for the presales done in Q4 and in the entire financial year 25.
Shreepal Shah
So it will be close to 40 to 45 in that range.
Bhavin Modi
Okay. And can we you know, safely assume the same thing, you know, for the pre sales going forward for FY26? FY27.
Shreepal Shah
So still FY26 you can assume. But going forward we will pan out on the basis of the new launches because our existing projects are nearing completion.
Bhavin Modi
Right. Okay. Yeah. My third question is with respect to the Suraj wise, you know, so we are, you know, I think it’s mentioned, you know, it will be launching the quarter one. Right. So first question is with respect to, you know, have we received any, you know like interest or something from the, you know, the prospects with respect to the space and what type of the space they are looking for. So are they looking for, you know, small offices, larger floor plates and are we also looking for, you know like a option of, you know, handing over the space to someone who some private equity who are running co office space or co working space?
Rahul Rajan Jesu Thomas
Just on the approval standpoint, as I updated on the call, we’ve already got our buyer clearance and we’ve submitted for the concession for the Amalgamated land. As you’re aware that we earlier had one land, we were malgamated with the one on the side. So with the Amalgamated portion, the concession are yet to be received. We expect that to come very shortly. We have to apply for CC for the Amalgamated land and of course Terra. So we expect the launch of course before H1. We are targeting if we could do it before in this quarter.
But I see due to regulatory approvals we want to be very comfortable on our launching timeline and we can take it safely of H1 of this year with regards to the clientele and the requirement coming in, we see a very buoyant commercial space and demand. We’re getting demand from all the kind of whether it is equity people, whether it is actual users who are looking for larger spaces and corporates. We already are in the process of identifying couple of clients. They have already done visits. We will update you shortly on that. Our target is to sell it ideally to a larger corporate. That is a wish list.
But we also see a demand for very small offices. So depending on the demand, we have the plan aligned for even making smaller offices or larger floor plates. Both will be aligned in this current plan.
Bhavin Modi
Right. And so last question just with respect to the timeline of the launch. So now it’s like rainy season, monsoon season where the launches generally are being deferred. And second, there is the opportunity. Going on with respect to the corona, you know, again resuscitating. So are we planning to, you know, have a, you know, delay the launch? That is the one point. And the second point is if you know, we are doing the pre, you know, we are doing the launch. So what is the, you know, presales that you know, we are looking for, you know, on the day of a launch or in the month of the launch? Like what was the upfront pre sales? If you can even give in terms of, you know, percentage that was helpful
Rahul Rajan Jesu Thomas
Regarding the launch, we will not be waiting. Whether it’s monsoon, we will not be waiting. As soon as we get the IOD and the cc, we will be slot, we’ll be starting the site. There are formalities, of course can continue. So physically soon as we get the cc, we will be starting the work at the site. We already have a financial tie up for that particular project from a very big institution. So that is already financially we already ready to start that project.
With regards to your question about delaying the launch for any other festive season or any other rain season, we will not be delaying that for that.
Bhavin Modi
And the second question was with respect to the, you know, what are the, what is the percentage of the, you know, pre sales, you know, that we’re looking, you know, on the, during the time of launch?
Rahul Rajan Jesu Thomas
We are very optimistic on the demand in the commercial segment. So it’ll be very decent to tell you what percentage can be sold. We are discussing with clients for either the whole piece. It could be couple of flows. So these are the conversations going on right now. So it has to see how everything pans out.
Bhavin Modi
If you can even give, you know, tentative range or something like that, you know, that will be like, you know, since this is, you know, one of the big launches, like 1200 crores. So like, you know, if during the launch we are expecting something around suppose 10% of percent between 120 to 180 crores or something like that. So can we look at, you know, those range?
Rahul Rajan Jesu Thomas
As I said, commercial is in demand today. So we would want to do a larger, larger floor plate and larger deal today. That’s the conversation going on. I can only tell you that as of now. But we are very buoyant that something major will happen. And I think let’s keep it to that. Let us just focus on the launch and then we’ll update you.
Bhavin Modi
Okay sir. Okay, thanks. Thanks for giving me the opportunity and all the best.
Operator
Thank you. A reminder to all participants, if you wish to ask any questions, you may press star and one. Anyone who wishes to ask a question may press star and one. Now we have our next question from the line of Krishnam, an individual investor. Please go ahead.
Unidentified Participant
Hello. Hi. Thank you for the opportunity. Am I audible?
Rahul Rajan Jesu Thomas
Yes, Krishnaji, please go ahead.
Unidentified Participant
So the first question is on the EBITDA margin you guided for a sustainable 40 to 45%.
Unidentified Participant
And if I look at Q4 it’s around 22.4%. Even if I adjust the one time litigation settlement, it comes to around 33%. So the balance 12% odd is due to the increase in operating cost. Now can you throw some more light on what is the nature of these costs and are they likely to be inflated going forward as well?
Shreepal Shah
Just to answer your question too, I would suggest we look at the annual numbers because quarterly there may be variations in the EBITDA numbers depending on the product mix and other things. But if you adjust the one time cost, so our EBITDA margin actually comes out to 40 to 43% which is in the range of 40 to 45% which we have already guided in the last quarter as well. So going forward also we will want to maintain the same 30 to 45% range of EBITDA. So annual basis.
Unidentified Participant
Got it? Got it. Okay. Can you just throw some light on the operating cost like what is the nature of this increase and how are we looking at it going forward?
Shreepal Shah
So it’s all development cost, construction approval and other cost which is potential project.
Unidentified Participant
Got it. Okay. The next question is on the other current asset. So if I look at the 31st of March of last year versus this year it has jumped from 266 crore to 669 crore. And I think that has also impacted the operating cash flow. So can you throw some light on this as to what what is the nature of this?
Shreepal Shah
More of the WIP has increased substantially. If you see inventories have gone up substantially. Last year it was. This year we have done a few BDS like 110 crores. We invested in the land at Mahim and also we have acquired one plot of land at Mahim at a resident Lobovilla for 38 crores and a plot of land at Shilajit Pak. So close to 150 crore of BD has been done. So because of it there is an increase in the assets which is not yet started. But this year we plan to launch all these sites. So these are all sites will come into operation this particular financial year.
Unidentified Participant
Got it. But these.
Unidentified Participant
Pd’s would be reported under inventories. Right? I’m asking about the other current assets. So there’s a 400 crore increase in the other current assets.
Shreepal Shah
We’ll revert to you on that, sir.
Unidentified Participant
Got it. Got it. And the last question is on the new launches. So in FY25 since there were no launches as such. So in FY26, can we expect like two years worth of launches or is that too optimistic?
Rahul Rajan Jesu Thomas
So as I informed earlier on the call, we are very optimistic to have a 2000 crore GDV of launches for this year. So as I updated on the three big launches, we already in advanced stages. So we’re very optimistic that this. These launches will definitely happen. And it’ll happen very soon.
Unidentified Participant
Okay, Got it. And those would mostly be in H1 itself, right?
Rahul Rajan Jesu Thomas
So roughly about 1500 to 1600 crores will be in H1 and the balance would follow in H2.
Unidentified Participant
Got it. Got it. Okay. Thank you. All the best. Do let me know about the other current.
Rahul Rajan Jesu Thomas
Yes, we’ll get on a call.
Unidentified Participant
Thanks.
Operator
Thank you. A reminder to all participants, you may press star and want to ask a question. We have our next question from the line of Anant Mundra from Maya Temple Capital. Please go ahead.
Anant Mundra
Hello. Hello. Yeah, thank you for the opportunity. Sir, the interest cost for this quarter is just 4 crores. So could you just explain why is it so low?
Shreepal Shah
We have to average it out. Overall the financial year FY25 is 65 crore. Which is in line with our estimate which we are guided during this third quarter conference.
Anant Mundra
So we have to look at that number on an annualized basis. So. And. Okay. Got that. Got it. And answer. So if I see. We’ve also raised some three.
Shreepal Shah
So also we had raised equity. So we had repaid some high cost debt like ICICI Venture. We had repaid last quarter which was there close to 45 crore. We repaid ICC which was at 17%. And with the prep money and operating cash flows we have repaid them. And this during this quarter there was. The impact was less. And also we had made some provisions for finance costs. So accordingly the cost has come down. Overall our weighted average cost of capital is close to 13%.
Anant Mundra
Okay. Okay. So debt right now is around 400 crores for net debt is around 400, 410 crores. So for next year we can expect that to be around 50, 55 crores. The interest expense,
Shreepal Shah
It could be in the range of 60 crores close to. Because we will need some debt for the growth capital as well for launching the new sites. We need to have those resources into place. So that might increase a little bit in the interim. But at the end of the day it will throw a lot of cash flows in upcoming projects which is estimated Pre sales of 2000 crores of launch.
Anant Mundra
Okay, okay. And so you highlighted that, you know we raised around 343crores in September last year. And then you know we’ve made a pat of around 40 crores in H2. So the total cash that we’ve generated is about you know, 380, 390 crores in H2. So I mean and our debt has not gone down. So where has all this, you know, cash being utilized for? Because we only acquired 110 crores worth of one land. So out of so balance money has been utilized for what purpose?
Shreepal Shah
So we have also tied up for the metro part, FSI and other approval costs for the commercial project. So a lot of these money is going into upcoming portfolio projects where which we are ready to launch in this particular financial year.
Anant Mundra
So could you broadly give some breakup because so out of 380 crores around 110 crores has been utilized for the acquisition. So around 270 crore is balance. So that 270 crore. Could you broadly highlight.
Shreepal Shah
Yeah, out of 343 we have received only 29350 crore share warranty is not yet received. So the number is 293.
Anant Mundra
Okay, okay. So 293 minus 110. So that, that is about 180 crore. So 180 crore breakup. Could you just give roughly
Shreepal Shah
180 crore maybe a lot of operating level we have utilized for the ongoing projects. We wanted to expedite the construction and deliver the projects because all of our sites are coming in the next year, one year for delivery. So we have put in approval cost for a project Pallet Ocean Star and Ethana and other projects which required a kind of capital to expedite the construction and development. So this is mainly used for projects which are ongoing or it is mainly used for projects which are going to be launched next year. So it’s a mix of both the projects close to 80 crore. We have infused in upcoming portfolio and balance in the ongoing portfolio of projects.
Anant Mundra
Okay, so ongoing portfolio. Our understanding, or at least my understanding, was that the current. Receivables, the sold receivables are enough to, you know, take care of the construction of the ongoing projects. But however from the fundraise also we view some money there.
Shreepal Shah
So costs were required to be paid to get the further approvals of the project. Pallet and Ocean Star and Eternal. That’s why we had to use those money to export to get the approvals. Because earlier pilot was just gift CG per 41 storage, it has gone to 50. So a lot of payments were required to be made at this point in time. So that was tied up and now the construction is going on. We are on the 49th floor of the project will come in the following years. So it was a working capital gap which we breached by your prep money also.
Anant Mundra
Okay. Okay. So I mean so for whatever upcoming projects that we have currently, are we further anticipating any, you know, capital raise or any kind of dilution in future to fund these projects?
Rahul Rajan Jesu Thomas
Presently we are not looking for any further capital raise. We will manage with our sold receivables and upcoming projects. We will take debt which is at low cost for the CF part only. And that will be for a shorter period of time so that we feel the time cash flow is coming.
Anant Mundra
And what kind of peak debt numbers do you see to you know, execute whatever upcoming product that we have in hand?
Shreepal Shah
Close to 500 crores we feel should be there.
Anant Mundra
Okay. Got it. Got it. And so did you all give any kind of guidance on the pre sales and revenue? I’m sorry I joined slightly late and I might have missed out on that. So if you could just repeat,
Shreepal Shah
We will give it in the next quarter. Once a few launches are there, we will be prudent to give you at that point in time.
Anant Mundra
Okay. Okay. And what launches are we expecting this year? Any guidance on launches? If you’ve given
Shreepal Shah
2000 crore of launch is there this year. Out of which 1200 crore is from the commercial project at mine. Balance 800 is from the residential projects. Close to seven projects we are planning to launch.
Anant Mundra
Got it. Got it. So that’s it from mine. Thank you.
Operator
Thank you. We have our next question from the line of Tanya Desai from Elevate Research. Please go ahead.
Tanya Desai
Hello. Am I audible?
Operator
Yes, you are.
Tanya Desai
Yeah. Thank you for the opportunity. Good afternoon sir. That couple of questions. My first question was that with the upcoming 19 projects and 10.2 lakh square feet of carpet area and the pipeline, how do you prioritize these. Launches based on the market conditions that we have.
Rahul Rajan Jesu Thomas
Sorry, I didn’t for you prioritize. I didn’t understand the large.
Tanya Desai
So we have around 19 upcoming projects in the pipeline with a 10.2 lakh square feet of carpet area. Am I correct?
Rahul Rajan Jesu Thomas
Correct.
Tanya Desai
So I was just. I was just trying to understand that how are we prioritizing these launches?
Rahul Rajan Jesu Thomas
So in terms of our category. So first and foremost we look at the projects which are in advance stage, either in approvals or in terms of if the land is vacant. So as I said earlier on the call to our projects, we’ve already vacated the tenants, the plans are approved, the site is vacant, we’ve applied for cc. So we would prioritize something which is in advanced stages where people have already shifted out on rent. Those would be obviously our priority because rents are also running.
Secondly, most of our upcoming projects are in the segment of value luxury. The new launches in Prabha Devi, the one which we plan to launch across the year, the 800 crores of residential projects will be in the 1 and 2 BHK range. So we’re very mindful that our new launches will be in that range of 1 and 2 BHK starting from 1.4 to 1.5 cross for the 1 BHK and it goes up approximately around 2.5 to 3 crores in the 2 BHK. So all new launches for the 800 crores for this year will be in that category. While the commercial, as I said earlier would be. We’re talking to clients for both larger office spaces and compact offices.
So the plan is quite versatile. We plan for both the eventualities that if we get a larger client, we’ll go for the larger floor plates or for the smaller offices. So the strategy for this year is value luxury and commercial. If I would just kind of just do a brief synopsis of the strategy for this year.
Tanya Desai
Okay. All right, sir. But can you just help me with the names of those projects and what will be the GDV of those projects?
Rahul Rajan Jesu Thomas
Sure. So Parkview One which is at Shivaji park, roughly the GDV is about 250 crores. We have another project called Kauliwadi which is at Prabha devi. That’s about 120 crores. We have a project, a commercial project between Mahim and Matunga which has a GDP of 1200 crores. And we have Shivaji park which is GDV of 80 crores. We have Lobo Villa with the GDV of approximately 120 crores. We have JRU with a GDV of approximately around 90 crores. And we have Lucky Chaw. With the GD of approximately about 65 crores.
Tanya Desai
Okay, sir. And what is the expected phase rollout? Hello?
Rahul Rajan Jesu Thomas
I couldn’t hear you.
Tanya Desai
Yeah, I was asking what is the expected phase rollout?
Shreepal Shah
Sorry, we did not get expected.
Rahul Rajan Jesu Thomas
You mean the launch?
Tanya Desai
Yeah. Yes.
Rahul Rajan Jesu Thomas
So As I said, three of these projects I expect in H1 which I said Shivaji Park, Pakri 1, Kauliwadi which is in Prabhadevi and Mayan commercial. We’re expecting that in H1 while the balance will be in H2.
Tanya Desai
Okay. All right, sir. Thank you so much.
Rahul Rajan Jesu Thomas
Thank you.
Tanya Desai
I’ll join back into.
Operator
Thank you. We have our next question from the line of Himanshu Duggar from Stylus Holdings. Please go ahead.
Himanshu Dugar
Yeah. Hi. Am I audible?
Operator
Yes.
Himanshu Dugar
Yeah, thanks. So my first question is around the interest expense. I find it pretty low. This particular just highlight if there’s some anomaly this time. And how can we expect the interest cost to go for FY26?
Shreepal Shah
I would suggest to look at the interest expense on an annual basis. Okay, I’ve come back to this.
Himanshu Dugar
We did around 66 crore for the full year.
Shreepal Shah
Yeah. So going forward we estimate the weighted average cost of capital is close to 13%. So assuming that you can take the assumptions going forward.
Himanshu Dugar
Got it, got it. The other question I had was around the projects that have now gone into OC awaited. So we have I think three projects. All right. Where as far as we are just waiting for the oc. So roughly in terms of receivables around like what could be the timeline on the receivables and you know, how do we expect the cash flow? Because you have your new launches as well as activities going ahead. Would you have to raise further funds or the receivers? We are expecting it in because everything else is done. So probably it comes in a few quarters and that should take care of the construction expenses.
Rahul Rajan Jesu Thomas
So we have only two projects where and I think most of them have paid except the 5% which is left for OC. I think most of the 95% has already been received by us. So it is only the 5% which is balanced in these two projects. And going forward, of course the ongoing projects will be self sufficient to take care of its construction cost.
Himanshu Dugar
Just to Clarify this, say 170 crore which is expected from Luisandra and Maria and around 180 crore from Nirvana. You are expected. Expecting this to come in. In this financial year. Is that right?
Shreepal Shah
No, no, no. It’s not 180. I think there is a mistake from your. Just look into that.
Himanshu Dugar
I’m on your slide. 42. 41 which says Luisandra 80. Okay. Sorry. That’s correction received. I mean the real estate is what. Right, Sorry. Sorry. So that’s around 20 crores here and 40 crores there in Nirvana.
Shreepal Shah
Yeah,
Himanshu Dugar
30 crores in Nirvana. Right. So 50 crores roughly. But this should be expected in the coming quarter. Like coming half year kind of. Right, that.
Shreepal Shah
Yeah, yeah,
Himanshu Dugar
Understood. The other question was in terms of this Lumina project. So have you already started the construction or like what is the timeline on how you start the construction actual? You know, I mean I. I see that there are deadline. But generally what is the typical time that you have been seeing in these projects? Especially the mining regions.
Rahul Rajan Jesu Thomas
So Lumina, we’ve already reached the print stage. We’re actually expecting the CC for the further CC very soon. BMC has already inspected the site. We’re expecting the CC soon so that we can get the balance CC for the entire project. We expect the construction to be completed within two years. That is before our ERA deadline. But we always keep a buffer for unforeseen delays. But as of now, we estimate within two years we’ll be able to complete the Lumina project.
Himanshu Dugar
Got it. My final question is on the Marinagar. So I think phase two is something that would be up for launch in this financial year. Is it or FY27 kind of a story
Rahul Rajan Jesu Thomas
This year. It will not come in for launch this year. It will be for next year. We already have a lot of launches planned for this year. We just want to bring that on the table.
Himanshu Dugar
Okay. So other than the commercial, the Red vibe which is 1,200 crores which would be the other project that would be looking to launch. I mean just numbers from three, four projects. The top five projects from the pipeline or how is it.
Rahul Rajan Jesu Thomas
Yeah. So we have ParkVue1, as I said earlier, ParkV1, 250 crores. We have a project called Kauliwadi which is yet to be named. At Prabhadevi near Siddhivanak temple at 120 crores. We have another project, Lucky Chol which is approximately around 60 odd crores. We have a project in Baikala which is
Shreepal Shah
90 crores.
Rahul Rajan Jesu Thomas
90 crores. So we have a project in Shivaji Park, 80 crores. Top line. So all these. That’s why I said the combined GDV of all this would be approximately around 2000 crores is what we are planning to launch.
Himanshu Dugar
Understood. All right. Thank you so much.
Operator
Thank you. A reminder to all participants, if you wish to ask any questions you may press star and 1. Anyone who wishes to ask a question, you may press Star and one. Now we have our next question from the line of Rajendra Pasi, an individual investor. Please go ahead.
Unidentified Participant
Hi sir. So are you readable?
Rahul Rajan Jesu Thomas
Yeah. Rajendrajee, please go ahead.
Unidentified Participant
So mainly I wanted to ask that as we had the plan of Plan to raise 500 crores and we weren’t able to do that as our issue was kind of undersubscribed. So what kind of impact can we basically foresee that we weren’t able to raise the capital that we wanted to.
Rahul Rajan Jesu Thomas
So your question is, when we were earlier Planning to raise 500, we raised 343 for the shortfall. What impact would it have? Am I correct?
Unidentified Participant
Correct. And sorry, 50 crores is under warrants as of now. Right. So ideally we have only gotten 293. So for the rest like what kind of an impact can we have on our projects in our future?
Rahul Rajan Jesu Thomas
So we wanted to invest those proceeds for our upcoming project in Bantra as well to hasten that launch so that maybe we will wait for the cash flows of our ongoing project to be invested. That is a very big launch coming up. So for that we wanted to raise that capital. But now we can do that with our ongoing cash flow as well for this year. It is just that we will push back the launch a little because we needed a lot of equity to be pumped in before we launched Bandra.
So I think that would be the only impact on the timeline of the Bandra launch. Nothing else.
Unidentified Participant
But rest will be on like on timeline. There would be no impact on the other like Mahim and whatever we are planning to launch in it.
Rahul Rajan Jesu Thomas
Yeah, we have. It has no impact on the launches planned for this year, the 2000 crores of GDV
Unidentified Participant
And how we are going to fund these Basically the new launches. Like I’ve seen the balance sheet and I don’t think that there is a lot of cash that is left as of now in our hand. Right. So how we are planning to manage the working capital
Rahul Rajan Jesu Thomas
We already have financial tie ups with especially for the new projects we already have. Let’s talk about the larger project because that’s what is substantial which we require. The commercial project is already tied up with the financial institution. So that is we already have a sanction from for approximately around 250 crores which gives us a closure on the financial requirement for that particular project.
Unidentified Participant
It. Okay. And that will mainly be debt. The 250, or is it like buying?
Rahul Rajan Jesu Thomas
Correct.
Himanshu Dugar
Okay, so going forward, like can we expect that, like as of now it is 400cr, so can we expect it to jump to almost 15 or for this year or like it will be kind of a short term back then, will we pay within same year?
Rahul Rajan Jesu Thomas
Temporarily, there will be increase because there will be. Let’s understand approval cost needs to be funded up front before the project starts, before ERA comes in. If there’s no equity to be put in, there’s only debt option which is available. So we already have sanction from a very large institution who’s giving us the funding. So temporary debt will be required because if you have to bring in 2000 crores of inventory and approval cost has to be funded by default upfront. The only way to fund it would be debt. So debt would go up temporarily, but once the project cash flows kick in, we expect that from a yearly basis maybe going up, but finally it will taper down again once the project cash flows kick in.
Unidentified Participant
And can we like expect to go down within the same year or like we are expecting to go within next year?
Rahul Rajan Jesu Thomas
We are optimistic that it may go down the same year as well because we’re looking at a couple of large deals. So if that happens and translates, we can look at it going down the same year itself.
Unidentified Participant
And do we have any, any plans to go for the fundraising again, like we had a shortfall of 200cr or like we are not going.
Rahul Rajan Jesu Thomas
Not as of now. Not as of now.
Unidentified Participant
Thank you.
Operator
Thank you. We have our next question from the line of Unch from Ansh Partners. Please go ahead.
Unidentified Participant
Hi. I just wanted to thank you for the opportunity. And as you mentioned earlier, I could not hear it. Could you tell me where, like from the 300 or 343 crores that you’ve raised, 50 is yet to come. Could you tell me where that amount is stuck under share warrants. Thank you so much.
Shreepal Shah
Yeah.
Rahul Rajan Jesu Thomas
And we have the next question.
Unidentified Participant
Yes. Yeah, that’s it. From my side.
Operator
Yeah, thank you. We have our next question from the line of Pawan Khurana, an individual investor. Please go ahead.
Unidentified Participant
Hi. First of all, thank you so much for the opportunity. We appreciate this. I have first question.
Unidentified Participant
What I have is about the employee cost which is shown in the sheet. It’s fluctuating a lot actually. I saw it in Q3, it was around 3.3% and has gone up to 5.6% in this quarter. And if I compare it year on year also, it has gone up tremendously. So from a 3.5% last year, it is 4.4% now. Any specific reason? Is it expected to stay high or will it come down?
Rahul Rajan Jesu Thomas
So we have done a lot of hiring for our new launches. We need to build the team to cater to such kind of new launches coming up. We have almost about seven new residential sites over and above what we’re doing in sustenance mode today and the commercial. So we’ve already ramped up our team to deal with that. Whether it’s execution, whether it is administratively, whether it’s engineers, we ramped up the team.
So employee cost, you can take it from an annual basis, would remain the same. We don’t see it going up further. But this would be remain for the next two years.
Unidentified Participant
Yeah. So just a follow up on that year, 2024, it was 3.5% and as of now, closing this year is 4.4. Could you give a guidance of the percentage of expense to be next year? Because that’s like a substantial difference between 24 to 25.
Rahul Rajan Jesu Thomas
I feel in absolute terms we don’t see a great increase. Whatever hiring had to be done for this year and the next year, we’ve already factored in that. It will be a very small variance if it has to, but it will pretty much. You can take this as the employee cost going forward
Unidentified Participant
And a follow up of this. How much percentage is the management overheads in that?
Rahul Rajan Jesu Thomas
I have to come back to you on the percentage. Maybe we can get on the call and
Unidentified Participant
Thank you so much. I could, I mean, even if it could come in an email, that will be absolutely appreciated. Thanks. Once again you’ve been mentioning about the approvals and the, and the expenses and approvals. So since. Sorry, I don’t really have an idea about the real estate sector. But let me tell you this, this happens to be one of my largest, you know, investments and I have a very, very strong hope of recovery from here on. And in fact I would be adding more. But just want to know from my perspective, how much is a typical approval cost that you’ve been mentioning about as a percentage of GDP of a project or maybe as a percentage of the overall cost of a project.
Rahul Rajan Jesu Thomas
Correct. So I just give you a ballpark if you’re selling a value luxury project, which is about 40,000 per square foot, which is the sale price per square foot of carpet area, we roughly estimate at least about 12 to 13,000 would be the cost. Only for approvals. Another that is we’re talking about awakened land. If it is a 33, 7 project, it will be around the 9,000 mark.
Unidentified Participant
Wow, that is huge. Okay, so one last question before I get back in the queue. I understand we didn’t have any launches in the last year and that kind of led to a low pre sales and also the last quarter also the revenue dipped a little bit. I don’t know if this question is something which is supposed to be for this conversation, but what would you have done differently if you had to go back and do things to shore up either of the two?
Rahul Rajan Jesu Thomas
So I think just ramping up like you said, launches would be very. It’s very evident that the new launches have to be brought to a stage where we can launch. And I think that’s where we are focusing this year where we’re bringing in all the projects. You can see the number of projects compared to last year and the new launches which are planned this year. And I thought in this call it is very imperative to mention the status of each project which is going to be launched so that there is obviously confidence built up with our shareholders that these are already coming and it’s in the annual and it’s going to come in H1 very clearly.
Unidentified Participant
Thank you so much. And before I go, I’m so sorry but this is just one more question which I had which is with respect to you mentioned about that of around 50 crores which have not come in from that share warrants. If, if I understand correctly, usually these warrants is when people commit approximately and they pay up about 25% up ahead and the remaining they have to pay over a period of time. Right. This was your preferential allotment. So I also understand that if the, if the price drops and the person has the maybe a choice to forego the 25% deposited and then not pay the remaining. Right. Is that a possibility? So, so do we believe that this 50 will come in or this may not even come in?
Rahul Rajan Jesu Thomas
No, there are two possibilities. The particular individuals have an option of exercising their options within the next 18 months. So since we just raised it, I think we were expecting that call to be taken within. We have some time for person to take a call on that.
Unidentified Participant
So the price at which the professional allotment was given was around 700, 755, remember. And, and now if it is trading around 300 something. So do you have any hope of those people really paying the remaining or. I mean if I wasn’t that preferential allotment person, I would rather forego and buy from open market.
Rahul Rajan Jesu Thomas
What we would focus is bring in the launches, bringing in the operation efficiency and bringing the presales. I think that’s what is in our hands. I think the price differential is a factor of our performance. So I think as a management we will focus on our launches for this year and. Bringing cash on the table and I think. I think the market will do the rest.
Unidentified Participant
Thank you so much. Thank you for your answer. I’ll get back in the queue. Thank you. Appreciate this.
Operator
Thank you. We have a follow up question from the line of UNSH from UNSH Partners. Please go ahead.
Unidentified Participant
Hi sir. I just wanted to know if it’s possible to meet the management in person.
Rahul Rajan Jesu Thomas
Surely we can have it planned through external IR sga. You can post the call. We’ll be happy to have a group meeting with couple of other investors. Whoever is interested in the meeting. We’ll be happy to meet.
Unidentified Participant
Sure sir. Thank you so much.
Operator
Thank you ladies and gentlemen. That would be the last question for today. And I now hand the conference over to the management for closing comments.
Rahul Rajan Jesu Thomas
I think this opportunity to thank everyone for joining the call. I hope we all be able to address all your queries. For any further information kindly get in touch with us or our strategic growth advisors, our investor relations advisors. Thank you.
Operator
Thank you. On behalf of Suraj SA Developers Ltd. That concludes this conference. Thank you for joining us. And you may now disconnect your lines.