Arihant Superstructures Limited (506194) Earnings Call Transcript & Summary

Ladies and gentlemen, good day, and welcome to the Q4 and FY '21 annual results conference call of Arihant Superstructures Limited, hosted by Kirin Advisors Private Limited. [Operator Instructions] Please note that this conference is being recorded. I now hand the conference over to Mr. Vastupal Shah from Kirin Advisors Private Limited. Thank you, and over to you, sir.

Thank you. Good afternoon, everyone. I would like to welcome Mr. Ashok Chhajer, Chairman and Managing Director of Arihant Superstructures Limited; Mr. Abhishek Shukla, Chief Strategy Officer; Mr. Deepak Lohia, Chief Financial Officer. Ashok ji, over to you, sir.

Abhishek, you would start?

Yes, I can. I can. Thank you, sir. First of all, a very good afternoon to everybody who's joining the call. And I would first hope that you, everyone at home and office are all safe and sound and healthy. Thank you for joining us on the conference call for quarter 4 FY '21 results. I'll first take you through the quarterly highlights and the annual highlights and the operational highlights in that order. And then we can have a Q&A session. So we have had a good quarter 4 as well as good FY 2021 on an annual perspective. We -- the total income in quarter 4 FY '21 was INR 124 crores, which is up by 98% from quarter 4 FY '20 figures. EBITDA has risen by 35% from INR 15 crores to INR 20.84 crores. And PAT has risen by 95% from INR 6.9 crores to INR 13.48 crores from quarter 4 FY '20 figures. On an annual level, the total income has risen by 14% from INR 237.85 crores to INR 272.31 crores despite COVID disruptions in quarter 1 last year. EBITDA has also risen from INR 47.6 crores to INR 50 crores. And PAT has increased by 43% from INR 10.98 crores to INR 15.74 crores. The overall borrowings of the company has fallen from INR 387 crores to INR 296 crores, a decrease of 91 -- decrease of INR 91 crores. That is roughly about 23.6% down. The company has done very well operationally as well. The inventories of the company has reduced by (sic) [ from ] INR 388 crores to INR 354 crores, which is down by INR 33 crores. Finished good inventory, which was INR 102 crores at the end of FY 2020, was down by INR 56 crores to INR 46 crores in the FY 2021. The work-in-progress, which is a good indicator of increasing construction activities at the site, has risen by INR 23 crores from INR 286 crores to INR 308 crores. Financially also, the company has done well on account of trade receivables that is debtors are down by INR 9 crores from INR 35 crores to INR 26 crores roughly. And the company has also, in spite of increasing the pace of construction activity, the creditors are down by INR 10 crores from INR 63.07 crores to INR 52.79 crores, a good indicator of timely payment to all the creditors of the company in spite of increasing construction activity. And the advances from customers has also risen by INR 26 crores from INR 144 crores to INR 170 crores, which is an increase of 26% and also significant considering the increase in sales that has happened. Now I move on to operational highlights. The sales for the whole year has -- stands at 1,090 -- 1,097 in terms of units sold and in terms of revenue the sales -- in terms of amount or value terms, the sales have risen by 78%, from INR 260 crores to INR 463 crores. The collections have also simultaneously risen by 24% from INR 236 crores in FY '20 to INR 292 crores in FY '21 for the full year. So the company has done very well on sales, unit terms, value terms as well as collection terms, and all these have impacted into decreasing debt by 24%, INR 91 crores. Simultaneously, we have also been able to reduce our weighted average cost of capital in the last 2 years from 14.42% to 11.56% in FY '21. Now I hand over to Mr. Ashok Chhajer for briefing about the company's strategy going forward.

Thank you. Thank you, Abhishek, and is someone -- is everybody on the board?

Sir, your voice is not audible, sir.

Hello? Is it audible?

Yes, sir.

Hello? Is it audible now?

Yes, definitely. You can go ahead.

Hello. So COVID, first wave started off and then there were great -- there were many, many opinions that how would the whole Indian economy do or the world economy do. And most of had very frightened views about real estate and will it get a revival or what time cycles it will take. As a strategy, we had Zoom meetings with the trade people in the real estate sector sales. We launched small project in the month of May '20, also when it was in national lockdown. And to sense that what digitally it plays to each of the customers, we found it favorable. We brought out good policies, good cash flows to the channel partners and brokers, where we gained their loyalty for working for the company Arihant and its sales. And it was a time when on HR part, people were -- the companies have decided to either have a haircut to the salaries or laying off people. And we, as management, took a different route. And did not give up haircut to anybody, and that gained us again bigger loyalty for the employees to work for company. And we started recruiting on the contrary even during the national lockdown, where partially the office was open with 10, 15 people. And by June 8, when it was announced to be open for all, the whole workforce were there in place. We started very aggressively, and the team was very much united to take it forward. We could see that the -- both the government, state government as well as the central government plotting favorable policies for the sector, knowing that without giving up extraordinary support the Indian economy may not revise because after agriculture it is real estate, which is the largest employer also. And that caught great favorable across, across all the 8 major cities as well as 2-tier cities. And that helped us out in terms of ready stock which we had, the piled-up stock which we had, and that resulted in that numbers, which we have been told right now by Abhishek also. And we recruited around 75 people in the financial year 2021. The recruitment is still going on. And we did small business development also in the year 2021, brought in small projects, which could be favorable for the numbers to be there. So it started off 2017, '18, when the first kind of its whistleblower was there. And the announcements came of the real estate sector being dried up in terms of finances available. And that is where we found out the major players also either being at defense in terms of financial institutions, the lenders and many of the developers also. And it was a time where we, as a 2-decade-and-plus time given to the real estate sector when we started off in 1994. These type of cycles may -- we had already -- always adopted 1 single agenda and a strategy that we will complete the projects. We'll give the delivery of the products right from financial year '17-'18, '18-'19, '19-'20. We have been completing the projects, giving delivery of at least 700, 800 units year-on-year basis, just giving, you, the customers should be delivered in time and then the RERA came, where again, it's supposed to be a debt. So that paid off undoubtedly. The debt was increasing in those years as doing a building construction. Part of the flats were sold, part not sold. So either inventory was increasing or the WIP was increasing. And this in terms of -- balance sheet was ready with the major stock. And when the time came in the year 2021, after COVID, we could have this material in hand. As a brand, as in a great belief of our preferred developers, the stocks really took on great sales [Foreign Language]. And this is where the whole -- and we talked about how the journey was. And when we look backwards, we find that the sector was and we ourselves were also almost walking on the edge of a cliff. And we didn't see down. We were just keeping walking across. And in the year 2021, now when we see backward, we find that okay, we could see a deep valley below also. So the strategy is played well. We both took up good calls, supported the management in terms of the debts rising in the year '18-'19 and '19-'20. And after 2021, then we found out that there was a time, the cash flows increased, and we could decrease debt by INR 91 crores during 1 financial year. So going forward, the company would have a strategy in terms of increasing the portfolio and the size of businesses to almost nearing to double the fold, which we -- that the company has today, that is something company has today around 9.5 million square feet in hand of projects being carried out in phases for the next 5 years. And the targets would be to at least close down to 20 million square feet of projects being undertaken. So 10 million we'd like to add up in -- within 12 to 15 months from now. And accordingly, we'll be increasing our sales so that the internal cash flows can support all these new purchases, and we are confident that the opportunities are coming good. And the brand has established more better than each day going past in the last, almost, 1 decade or so. And today, when consolidation is happening, we can find ourselves that the market is responding. The real estate sales sector market is responding through the company and the brand as an established, as a more stable developer, which is what customers look across. And as you could see that was on the exchanges, we have been reporting all the business transactions well in time. So it was for the sake that there should be no insider information available and all the information has to be very much public. That's why we reported out in the first week of April what the numbers were for the whole year balance sheet to the exchanges as preliminary information in Q1. And April and May, also information -- the updates were given to the exchanges and the shareholders in the first week of June, what the company has done in April and May, where we sold around 250 units. We launched our 2 new projects, almost 700 flats and one of higher ticket size and one of affordable housing. Looking forward, as all these years, we have been, the company has taken up every segment of project with respect to the population metrics available in the city of operation. So we do affordable housing due to mid-income group housing, MIG. We do HIG also. So the Vashi is an HIG project, which is around INR 1.5 crores to INR 2 crores flat size. And -- but it -- it increases the margin, it increases the -- it'll add on to the numbers of the company largely. Still, as we see, we always keep our portfolio mix in terms of percentages where that 65% of the population lies into MIG and LIG. And accordingly, the product designs and product category also. In fact, the company, we have capped up to the same percentage of 65% to 75% in LIG and MIG-A and 10% to 15% in MIG-B and HIG and 1% or 2% in the richer class. We have never ventured into economic weaker section, which is sub INR 10 lakhs of a house largely. But that is generally where all these state governments participate, the developers do not majorly other than some 2-tier cities. Coming to Jodhpur, Jodhpur also saw a spring back in sales after COVID. Though still today also, we are not doing so good as we have done in Navi Mumbai. I think the market would respond out in the coming years and months more favorably. And we are maintaining that the major cash is not deployed into that city for the sake of completing of the project as the margins as well as the returns either are slow or low. So we are maintaining it out, and we will again wait for an opportunity where we could get up both the things good in that city also. So still, the housing projects are under construction. All the projects are nearing completions also as targeted. So nothing has stopped. But as a management call, the major deployment of the funds are in the main city of MMR region, Navi Mumbai and Mumbai peripheral areas. So this is what is on the business side. I will open up the forum for question and answers to everybody.

[Operator Instructions] The first question is from the line of Apoorva Mehta, an individual investor.

First of all, congratulations for the good set of numbers. I have a few questions related to debt level of company. My first question is, our company had repaid INR 91 crores during the year. So wanted to know these are channels from operational cash flow or swapped between low-cost and high cost loans?

All from internal retrieval. There was no new facility taken in the last financial year. The existing facilities were paid through the sales projects, which have been received. So it was nicely around INR 460 crores of sales where collections went to some -- collections were around INR 230 crores, INR 240 crores, if I'm right, Abhishek, and that helped out to repay it. So we have not swapped anything.

Okay. A similar question is, there is increase in finance cost when we have repaid the loan of INR 91 crores?

The cost of finance has not increased. On the contrary, the average cost borrowings have been lowered from 14.5% to 11.5%. The size of debt on the year was around INR 400-plus crores. And so the servicing to the INR 400 crores is the difference where you find out that the interest payments, the value changes. And with the total amount of debt less, it would be relatively low in the coming financial year.

Okay. So sir, my last question is, what is the average cost of debt -- remaining debt?

Around 11.54% was for the financial year ending 2021.

[Operator Instructions] The next question is from the line of Nilesh Gandhi from Metadesign.

Of course, congratulations on excellent efforts. And my question is for the 10 million square feet that we are planning to add. Are these on our self-owned lands or these are joint ventures? Or how is our plan for the proposed 10 million square feet of future development?

So around -- out of 10 million, approximately 3 million to 4 million would -- 3 million, approximately, would come from the land bank, which is existing, and 7 million would be new acquisitions. So we always have kept open opportunities on asset-light model also and some on direct purchases. So as in project report, we see what gives the company the best margins as well as the cycle of project can be efficiently handled. So going to take -- around 3 million would be from the existing land banks, which we have, and 7 million we will be acquiring new.

So in your -- is this the best way like the Godrej Properties of the world where they enter into a JV model? What is your views on that kind of a model?

Generally, it should be a mix and even the most respected company, Godrej also has a mixed proposal. You will find that they had bought up a small land -- partial law of land in Navi Mumbai on tender by CIDCO for around INR 200 crores of outright buy. So they also have always a mix of it. Because it is not necessary that you get a good proposal or a workable proposal or a proposal where the demand lies where the operations are easy to be done, always on an asset-light model. So the approach that our company would be putting it across, we keep an eye on the margins, which we'll get rather than on asset-light or in only outright. But generally, we will -- there will be a mix of it.

And how do we count -- factor for, a, an old and existing land parcel, which has an historical value versus a new, which will be a recent buy, which will -- so the margins will drastically vary. So how do we handle that?

All the lands which are in the books of the companies are nothing which is of a great historical values because when we talk about historical, it should be, you can call it, more than 1 decade. So I think whatever purchases which we have, as we see in our add presentation in the last 5 years also, after '17, we have kept on our business development at a slower pace of acquisitions. So the lands do not have any great historical value where due to old purchases that would be an increase in margin. Yes, the lands which have been taken and which we as a strategy or as -- and principle what we look into, which we have been telling in our investor presentation from years and ages that the company generally eyes for a land within cost to the sale price, cost of land to the sale price through an extent of 10% to 15%. So generally, our lands are around INR 500 square feet for a product selling or INR 4,000 square feet or INR 4,500 square feet. So that has helped out the company even earlier also. And I know there is in substance, and it would be always favorable for the business side of company as well as the margins, and that secures a lot because always asset-light model is not a product which has no liabilities. Because though there is no -- there is less cash payout, but the contingent liability is very high in an asset-light model because you are committing the landowners to deliver x percentage of revenue or area within prescribed time. So this contingent liability within a prescribed time, irrespective of market behaving good or bad, as per the agreement you have to deliver, and that amounts to a very larger portion. So in outright buys, it is very comfortable. When you give our example, like 2 projects, Arihant Arshiya at Khopoli and Arihant Anchal at Jodhpur, they are around 2 million square feet each. And we would have done something around 0.7 million square feet completed in Arshiya. We know that the demand is less in that particular region. So we completed all our started buildings. We have not started with new today. But that helps out. That -- okay, fine, the land is there. We are not liable to pay anybody anything. The landowner would have -- he would have told irrespective of marketing conditions you have to deliver me this much, please deliver it. So always asset-light models are not favorable or good when the project sizes are very big.

So from an execution point of view, sir, what is the model that we adopt for execution on the ground. As we enter into an EPC, wherein material plus labor or we prefer to have a lock-and-key kind of a scenario?

We do not keep on a lock-and-key basis. We always give specific contracts to special -- through specific agencies. So the material is majorly procured by the company. And it's done on labor work by the subcontractors. And some of the contracts were -- where the materials are not easy to handle like plumbing or electrical that is given with good material. And the major substructures or et cetera are always done on material supplied by the company and labor job being done by the contractors.

That has a great impact on the margins, the EBIT margins and the margin. So 20% or something, what range are we in the EBITDA margin?

For?

For the EBITDA margin, we are in the 20% range or what is the range, if I missed out?

Yes. So for the projects, which we are handling right now?

Yes.

Right now, existing projects are within EBITDA margins of 17%, 18%, 20%. And we see that with the momentum of real estate sector going into a positive note, there can be an increase of around 10%, 15% more.

Do we have any thumb rules on the customer acquisition cost?

Yes. It is always a cost of 4%, 4.5% to the sale price.

Okay. Have you also explored online sales models and something of that, some -- providing some experience to the buyer with our great brand name to explore online. Have you seen that?

As in marketing approach, like all the best companies when the mass scale is there, we do a 360-degree approach. And 360 means, you have to -- we adopt all the branches to reach out to information. So where now digital turns out to be the bigger part, only what we could experience out in the last 1 decade or last 1 quarter was that we could sell around 15 flats -- 15 to 16 flats, where the client has not visited the site, he doesn't know about the site. Our sales executive could show him on live video camera the site, the plans. And the -- keeping the brand under 100% assurance of getting the product delivery in time and which the quality the people have it. So inching it up, we find that real estate is going towards digital phase where we found out like on online media where even merchandise materials are being sold on brand product or on photographs also. Similarly, we find it out that with the great brands coming across in the coming years and time, there would be online sales, which will pick up more better than every month-on-month basis. Though, it cannot take up the whole 100% share of the media marketing pipe, but it is inching very fastly on the upside.

Okay. You did mention, sir, all disclosures were always made and nicely, so of course from a compliance point of view also. But it was good to see a good dream run in the stock market. So what was it probably that the market invest that they are analyzing and reviewing now?

I think it is the shareholders who find out that this is a price of each share -- it is a price of each share at every time, and we respect their analysis, and we respect their pricing for all the years and all the time and all the periods which have gone behind. So if you thought I wasn't Chairman, as a main promoter of the company, I see that there is some value in the company. It is far above than what we see today also.

We also saw that L&T reduced it's stake as a company in our -- do they have a substantial stake in our company?

No. Today, they may be having around 1.25%. We reduced it from 5% to 1.25%.

Any thoughts on why would that be?

See, finally, it's an equity, and it is to be tradable. It's a time where person finds it out that okay fine it is time either he books up the profit or he finds out a better opportunity in something else. And this is how the investments should and do behave. So not necessarily that an investor would stand for a life long and just be happy with the valuation. So that is what the market should be. It is how I would say it is good that people coming and can go out.

The next question is from the line of Nilesh Karani from Magnum Equity Broking.

A good set of numbers, congratulations. And sir, just wanted to understand how many new launches we'll be making in this year, in the FY '22?

I think we would be doing it up something around 1,500 flats and 4 to 5 new launches from the existing phases also and from some new launches of new lands also. So 5 to 6 new launches are scheduled. 2 of them already done in the month of April and May. And we have received a construction permission for 1 project, which was pending. And we see that at least 3 to 4, which are already in the process of approvals, should see a daylight very soon within a quarter or so. And that is where we see that in the third quarter, we'll be able to get everything on the flight mode.

Sir, just one more like, Jodhpur, how much is our inventory still left? And are we planning some other, say, similar projects in micro markets? Or we will stop that and -- just to understand?

With the Jodhpur market, we have something around 30 flats, which are ready for -- 30 to 40 flats, which are ready possession. And rest of the inventory in under construction, which would be completing its -- this financial year itself, that would account for another 100 flats. So approximately 150 to -- 150 flats are there, which is in under construction and ready possession stage both collectively. We have started with 1 more new building, which we have not launched, but we have started construction. So that's 1 large building of the project Arihant Adita, I would see up in RERA registration and launch maybe around 3 to 4 months from now. So that would add on again around 122 flats more.

How do you see the Jodhpur market now like before, see, it was little bit dull, but now how are we seeing this?

Response is there. It has increased on year-on-year basis in terms of sales and collections both. But when we compare about Navi Mumbai, Navi Mumbai is speeding heard rate little fast. And we are able to acquire a larger market share in the city of Navi Mumbai. So I think today, maybe the amounts, the existing developer, we may have a largest number of shares in terms of units sold. So it is around 6.5% to 7% for the complete Navi Mumbai, MMR region market. So -- and we find it out that the current response is more better, and it will always be better because finally, it's a metro city and Jodhpur is not. But Jodhpur still having 20 lakhs of population, the second largest city of Rajasthan. With some more strategical and operational changes, we should be able to perform better.

So 1 more last question is like, sir, in FY '21, I think we have done around 1,100 apartments, correct? Overall, we have sold that much?

Yes.

So basically, how much was from the new and how much was from the existing of that thing like? See, Aalishan and Aspire, I know 2 projects, but how much was from the existing one?

All are from the existing one, because all are ongoing projects. I don't think we launched up more than 1 project in the last financial year. There was only 1 launch which we did in the month of May during COVID when it was closed. We did an extension launch for a small portion of project, which is under ATIP and in the holding company Arihant 4Anaika, [Foreign Language] we did up and launch. And new launches, last year was not there. It was all on main projects.

But sir, how much is that inventory now left there out of -- means we have sold 1,100. So how much is remaining like in both the projects?

For the ongoing phases and of all the projects, it should be around 2,000 flats.

2,000?

And plus new launches, which was asked by somebody, around 1500. So on the shelf would 3,500 flats for the sales team. And we hope that they would reach up to the expectations of the management by growing their sales to a more better levels in the last financial year.

And sir, last question, like do you see this real estate market performing good for next 2 years or 3 years down the lane or what -- how...

The industry gurus tell that -- and the best of the analysts like from Liases Foras, et cetera, Pankaj Kapoor, and -- the next 5 years it would be a good steady market for the real estate sector in terms of demand and supply both. Undoubtedly, we may not see up in position like what happened in the historical era of 2008 to 2014 where -- or 2005 to 2014, where the prices increased multifold. So it will be now mostly like a real industry or factory model product, where the first square feet and the last square feet will not affect your price rise other than an inflation of the country. So we are not into speculation mode, and we'll keep on -- we keep on selling. All these years also we have been. And ahead also, we will keep on selling the product. Even if it sells very fast, still we don't increase our prices. We'll be happy with the margins which we have arrived in the day 1 of the project.

The next question is from the line of [ Apurva ] from Square Capital.

Congratulations, sir, for a good set of numbers. Sir, I want to know what is the realization for FY '21 and FY '20?

Realization in terms of?

Per unit.

My average selling price. Average cost of 1 flat was around INR 40 lakhs or INR 42 lakhs.

For FY '21?

It should be a little higher because the high ticket size project of Vashi is also on the shelf of selling, which is selling good. So maybe around -- I don't know, but must be something around INR 60 lakhs, INR 65 lakhs, or INR 70 lakhs, in average selling price, depending upon care, how would we sell on the bigger ticket size product and how much quantity of sales are done in the affordable housing, which is the major launches where the -- of the company, so -- which is INR 25 lakhs and INR 50 lakhs. So sub INR 45 lakhs, on the contrary. So INR 25 lakhs to INR 45 lakhs would take up maybe 80%, 85% of the sales of this financial year. So maybe around roughly INR 50 lakhs, INR 60 lakhs of this would be in average sale.

What would be the lowest one? And what would be the highest one?

The lowest is INR 20 lakhs and the highest is around INR 2 crores, INR 2.5 crores.

That's the premium business?

That's the premium business, yes. So we can categorize like this. There are 3 segments. One is a premium range, which goes to around INR 2 crores and around. There is an HIG range or an MIG range, which is Arihant Aalishan and Arihant Aspire, which goes to around INR 1 crore. And the rest of the all projects in terms of quantum, which is 75% to 80%, which is generally categorized as affordable, that is sub INR 45 lakhs -- INR sub-50 lakhs. So INR 25 lakhs to INR 50 lakhs is 1 segment, which the company operates. INR 1 crore, plus or minus of INR 25 lakhs, is the second segment. And INR 2 crores plus is the third segment.

What is the focus area now as a percentage-wise, like premium setting, which you said the third one or the INR 25-lakh segment or the medium segment?

As an internal strategy, we always have, and we will be maintaining these projects. So it would be around 75% to -- 65% to 70% would be the affordable housing segment, around 20% to 25% would be the middle-income group and around 5% would be the HIG or the richer class. So we'll never increase the big ticket size or the premium segment above 5%.

The next question is from the line of [ Amiksha ], an individual investor.

Sir, actually my question is -- can you hear me?

Yes. Welcome.

Yes, actually my question is based on growth value, sir. So with the recent demand trend we are seeing, which was mainly due to the stamp duty effect, how much of this demand do you think is cyclical and how much of this demand can we sustain in the future?

We are seeing that the growth in terms of demand because when we talk about the time period where the stamp duty ended was 31st of March 2021. And we could see that from 1st of April 2021, where the stamp duty reduction or the holidays are not being granted by the government. In spite of that, we have sold around 250 in the month of April and May. So this tells that the trend towards buying is not being stopped for the sake of stamp duty not being there. Undoubtedly, the stamp duty decision made the -- we start the sales engines to a larger speed. And now it's continuing. People are not looking at case. There is no stamp duty deduction, we will not buy. People are buying.

Okay. All right. And secondly, we're seeing consolidation happening in the sector, and I believe most of the large developers are now improving efficiencies through new and efficient technologies. So what are we doing in this space?

Yes, and consolidation is there, that is where we see that the brands are selling good and gone are the days where the -- around 2 decades ago, it was where the biggest branches to tell that we command a premium of 15%, 20% to the or somebody 15%, 20%, somebody even 30%, 40%, 50% to the adjoining projects. Today, the best of the brands are of an opinion that we will give better services, a good product and a net fair margin price. This is how they are increasing their market share. And our company is also on the same lines of increasing the market share.

And you're seeing rise in input cost? And do you feel the price increase is possible? Or do you feel there is a resistance in price hike? What is its effect?

The price increase due to input cost is around 7% to 8%, 10%. And for the new projects that has been incorporated in the project calculations, so the effective sale prices have increased by 5%, which can easily take care of the input cost. But that doesn't mean that there is some speculation or there is -- there would be increase in prices on every tranches of time intervals. So till we -- approximately around inflation and input cost that has been taken care. And the newer projects and the old projects, maybe a marginal increase was possible, which is around 2%, 3%. Rest of all has to be absorbed or would be equated till the end, so which would be marginally seen in terms of sale prices because it would be very small tranches of increase. But I think when we talk about the business of the company, we are surely keeping an eye on the cost versus revenues. And it's not only the numbers which we look into in terms of sales. And clear instructions are there for the team in operations that profit is more important rather than on the same numbers.

Okay. And 1 last question. How much of the pending receivables are from projects under construction?

Something around INR 40 crores, INR 45 crores.

[Operator Instructions] The next question is from the line of Krishna Raj from [indiscernible].

Yes, sir, good afternoon. I hope you can hear me?

Yes, good afternoon.

Yes. You were sounding little faint earlier. I don't remember whether you've covered this. Like details about your new products, your margin and how the demand is shaping up, maybe compared to April? And how is it looking now?

Our projects, if I name it out, it is Arihant Advika at Vashi, which is around 350 flats, around INR 600 crores, which has been launched; Arihant 5Anaika, 350 flats, which is around INR 150 crores, which is launched; Arihant Amisha, around 500 flats, where CC is received last week, that would be something around INR 100 crores and INR 150 crores, which would start seeing sales and construction activities in the coming time. The company has also engaged into some fees model and DM model projects so that it can secure its operational costs also. And projects which are in pipeline in terms of phases and approvals are for 650 -- 350, 400 flats in Arihant Aspire, Palaspe. There is something which is coming around 200 flats in Badlapur. More extended portion where we have just bought land in the last month. So a small portion, not a very big -- full of it. And from the land bank, Arihant Akanksha at Taloja and that would again see up around 15 lakh square feet of approval process being initiated. So maybe around 3 months, 6 months, we should be good to start with that also. And that is again -- it is the same range of INR 25 lakhs to INR 45 lakhs. So that would be what, some INR 500 crores of new launch, which would be carried out in phases in 5 years.

And how is the demand looking like?

Demand is looking good. That's what, when the -- the demand is looking good.

The next question is from the line of Nilesh Gandhi from Metadesign.

Sorry, I missed 1 thing. We have taken an approval for raising of funds. Can you throw light on the deployment of those funds? And how much are you planning to raise?

The enabling resolution has been there with the company since 2017 on a year-on-year basis. The company had been to the markets in the year 2017 for adding up the institutional as well as the -- institutional ratios in terms of equity, could not do it up -- could not happen up for some or other reasons. So the enabling resolution is always taken. Though the enabling resolution is for INR 300 crores, but with an appropriate position and the performances, we expect that there can be an expansion of equity and participation by the leading institutions or the fund houses who is looking at the real estate sector. And that can help us -- help the company to grow more faster. The utilization of funds would be revealed during the disclosures, but major would go towards growth of the company and new projects.

As there are no further questions, I would now like to hand the conference over to Mr. Vastupal Shah from Kirin Advisors Private Limited for closing comments.

Thank you, everyone, for joining the conference call of Arihant Superstructures Limited. If there are any queries, you can write to us at [email protected]. And once more, many thanks to everyone for joining the conference. Thank you.

Thank you, everybody.

Thank you. On behalf of Kirin Advisors Private Limited, that concludes this conference. Thank you for joining us, and you may now disconnect your lines.