Arihant Superstructures Limited (506194) Earnings Call Transcript & Summary

Ladies and gentlemen, good day, and welcome to the Q3 and 9 Months FY '24 Earnings Conference Call of Arihant Superstructures Limited. [Operator Instructions] I now hand the conference over to Ms. Purvangi Jain from Valorem Advisors. Thank you, and over to you, ma'am.

Good morning, everyone, and a warm welcome to you all. My name is Purvangi Jain from Valorem Advisors. We represent the Investor Relations of Arihant Superstructures Limited. On behalf of the company, I would like to thank you all for participating in the company's earnings call for the third quarter and 9 months of the financial year 2024. Before we begin, let me mention a short cautionary statement. Some of the statements made in today's earnings call may be forward-looking in nature. Such forward-looking statements are subject to risks and uncertainties, which could cause actual results to differ from those anticipated. Such statements are based on management's beliefs as well as assumptions made by and information currently available to the management. Audiences are cautioned not to place any undue reliance on these forward-looking statements in making any investment decisions. The purpose of today's earnings call is purely to educate and bring awareness about the company's fundamental business and financial quarter under review. Now let me introduce you to the management participating with us in today's earnings call and hand it over to them for their opening remarks. We have with us Mr. Parth Chhajer, Whole-time Director; and Mr. Dhiraj Jopat, Chief Financial Officer. Without any further delay, I request Mr. Parth to start with his opening remarks. Thank you, and over to you, sir.

Good morning, everyone, and thank you for taking time to join Arihant Superstructures Limited conference call to discuss Q3 FY '24 results and business updates. We've seen that the Indian real estate sector continues its momentum across major metro cities in India. And we are excited to be part of this journey and have a leading position in Mumbai -- Navi Mumbai MMR region. I guess most of you would have gone through the presentation, which is filed with the stock exchanges. So I'll just brief you all about the financial numbers for this quarter. In terms of the consolidated financials, the total consolidated revenue for Q3 FY '24 was INR 119.5 crores against INR 109 crores in Q3 FY '23, registering a growth of 9.6%. The total consolidated EBITDA for Q3 FY '24 stands at INR 26.3 crores as against INR 25.5 crores in Q2 FY '23 -- FY '24, sorry, registering a 3.1% growth on a quarter-on-quarter basis. The EBITDA margin for Q3 FY '24 stands at 22.01% versus 23.39% in Q2 FY '24, registering a change of minus 1.38%. Profit before tax for Q3 FY '24 stands at INR 18.8 crores against INR 18.8 crores in Q2 FY '24. So indicating no change. The profit after tax for Q3 FY '24 stands at INR 15.6 crores against INR 16.1 crores in Q2 FY '24, registering a change of 3.1% -- minus 3.1%. PAT margin for Q2 FY '24 stands at 13.05% against 14.77% in Q2 FY '24. Net worth of the company has increased to INR 301.8 crores in Q2 -- in Q3 FY '24 against INR 276.8 crores in Q2 FY '24, registering a growth of 9%. When we compare the 9-month FY '24 figures to 9-month FY '23 figures, the growth is as follows: The revenue has grown by 7.3%, EBITDA has grown by 13%, EBITDA margin has increased by 1.12%, PBT has also grown by 12.4% and PAT has grown by 11.3% on a Y-o-Y basis. Now talking about the key operating highlights. The company has achieved sales booking of 483 units in the first (sic) [ third ] quarter, equivalent to 4.1 lakh square feet, amounting to INR 251 crores in sales value. The average price per square feet has increased to INR 6,148 per square foot for this quarter, indicating that affordable and mid-income segments have also contributed to the sales. Our average price per unit sold is close to INR 52 lakhs, which has drawn -- in Q3 FY '24, which has come down from INR 60 lakhs in Q2 FY '24. So this is because of the higher sales coming from the affordable segment as well. Total collection for Q3 FY '24 stands at INR 131 crores. Now coming to the business development front. On the business development, in this quarter, we acquired a new project Arihant Anaika 7, which is adjoining to the existing township of Arihant Anaika which -- wherein we've already delivered close to 1,500 odd apartments. So this project also will be comprising on a 10,000 square meter of land area, wherein we would be developing 549 units spread across 3.73 lakh square feet, which will have a gross development potential of INR 185 crores. So we also signed a term sheet for 118 acres of land at Chowk near the Chowk Railway Station, where we'll be planning to develop plots and Villas. Apart from this, we've also received additional land for development in Arihant Aspire project, which will add an additional saleable area of 5 lakh square feet, increasing the revenue potential by INR 350 crores. And we will also like to update everyone on the positive development on Arihant Aakarshan, so which -- it is now being renamed as Arihant Adarsh. We have received a commencement certificate from Panvel Municipal Corporation. The sales and construction would begin from March, April onwards. This project would be comprising of now 778 apartments spread across 5.4 lakh square feet of saleable area, having revenue potential of INR 270 crores. So this was all about the business development front. Now just to brief you all about the company and market scenario. At company level, we've seen demand for residential loans increased in the quarter across affordable, mid-income and premium housing despite inflation and price hikes to the tune of 3% to 5% across all the projects in the Navi Mumbai area in this quarter. The Navi Mumbai Metro has finally been inaugurated and has begun operations in this quarter, which has seen a tremendous boost in demand for homes, especially in Kharghar and Taloja micro markets, where in Arihant has a leading position. FY '24 will also mark the inauguration of the Navi Mumbai International Airport around the surrounding infrastructure. We've also witnessed that in Q4, January, the Atal Setu has been inaugurated by the honorable Prime Minister, which has also led to a great increase in demand for homes in projects, especially in the Panvel and the Airport Authority region. So that has just started off with the spike, and I think it will continue to grow as the time passes by. We also focused a lot on the sustenance and activations and projects across all categories in this Q3 quarter. We started the launch of the 5th Tower of Arihant Aspire in December, and it is continuing in this quarter as well, and we've seen a tremendous response from it. We have also geared up for more new launches in the coming quarters across segments, which is highlighted in our presentation on Page 13 with the estimated forthcoming launch pipeline being showcased across all the segments. Commencement certificates are awaited for Arihant World Villas at Chowk, Arihant Avanti at Shilphata and Arihant Anaika 7 which will boost the sales figures from FY '25 onwards. We are expecting the commencement certificates to come for all these 3 projects by Q4 FY '24. Already, the portfolio is well diversified, and I think we are in a good, strong position to cater to all the major demands that would be there in the housing space. Being present in across 11 different micro markets will give us a good market share across various geographies also, which is one of the largest geographical spread by any developer in MMR region. And a good offering coming from INR 20 lakhs to INR 3 crore of an apartment. So the business model that the company has is quite unique, sustainable and scalable. With this, now I open the floor for question and answers. Thank you.

[Operator Instructions] The first question is from the line of Jojo Shaju from Alfa Invesco Research Service.

Sir, I need the breakup for the presales number. So out of this INR 252 crores which we have done in Q3, how much is coming from this Aspire, Aalishan, Advika and Anaika project?

I'll have to share that separately with you. Don't have it with us right now. But just to give you a rough ballpark figure out in the amounts, I think around -- Aspire was close to -- because of the launch that we started, Aspire was close to INR 90 crores, Aalishan was around INR 43 crores. Advika in this quarter was around INR 9 crores. So ballpark, these are the figures for these 3 projects.

Okay, sure. And what about the 9 months if you have that with you, I mean 9 months data for the same.

Yes, we'll get back to you on that, and we will share it project-wise also separately offline.

Okay, sure. And sir, coming to this Aspire project, can you share some more data? Like how is the sales moment going over there? How is the demand shaping up? And is there any new phase expected to launch in FY '25 there?

Yes. So Aspire project, we launched the fourth tower in the begin -- in the month of April. And we've launched the fifth tower now in December, January. So I think the demand is very good in that location. It's very close to the upcoming international airport. It's just a 10- to 12-minute drive from the Atal Setu bridge, which connects you to South Mumbai. So within 30 minutes from that location, you can reach port area. It's a fantastic connectivity that has come in place, and that is going to see a great influx of demand coming in for this project, especially. We have also added, like I said, another 5 lakh square feet in this project only which will be maybe another 2 more towers. So we had 8 towers, we'll be doing approximately now 10 towers totally around 36 lakh square feet of development saleable area. It looks very positive. We have gone back to the drawing board and are submitting the plans for the 5 towers as well. And we should expect the commencement certificates in 3 to 4 months, and we'll be having another launch for this project in the coming financial year as well. So it looks quite positive. It's going to add a lot to the top line and the bottom line of the company's numbers. And as a location, it is I think the hottest location in entire Navi Mumbai today.

Okay. Got it, sir. Sir, one question on the guidance per se. So looking at the sales velocity you're doing and the launch pipeline, is it possible to do like INR 1,300 crores presale by FY '25 or let's say, INR 1,800 crores by FY '27. Is it possible to such presales number?

Yes, yes, we are confident that this year, we should be doing close to INR 1,000 crores and 25%, 30% CAGR are on that in the forthcoming years. So markets are also supportive. The infrastructure is in place. Finally, the real dreams of infra projects, which were imagined maybe 5, 10, 15, 20, 30 years ago are coming live to the city through the push of the Prime Minister and the entire government. And that is going to be a big game changer for Navi Mumbai and for us as well, wherein we have a very large market share. So company today also has more than 1 crore square feet just in the radius of 7 to 10 kilometers from the Navi Mumbai Airport area. So that is going to add a lot going forward as well.

[Operator Instructions] The next question is from the line of [ Shrey Gandhi ] from Mangal Keshav Financial Services LLP.

Congrats on a good set of numbers. So my question was on the basis of the -- on the World Villas, like when can we expect the commencement certificate for that? And -- from that commencement certificate and where can we deliver. So that is one question. Second question was on the like what kind of IRR we are expecting from the resort in Gymkhana that we are planning to build at Panvel?

Yes, sure. I'll take your first question. So commencement certificate is expected in this quarter, Q4 before March. And post that, we'll be going and submitting our documents for the RERA registration. And the launch should be expected in April -- mid of April or end of April onwards. So -- and even construction on site will be beginning in full swing along with this. So we are quite ready. Our architects and everyone is geared up for the same, and we've planned the entire construction cycle also for the next 2 years. We'll be launching around 75, 80 villlas in the first phase, which should be completed in a span of 15 months from the date of start of construction. In terms of the IRR expected from the Gymkhana and the hotel properties that would be to the tune of 15% on the investments that we make, which is around INR 250 crores that would be going as investments to make the 2 lakh square feet of Gymkhana and 221 key hotel.

Sir, one more question from my side. Like we are normally operating at a margin of around 20%, 22%. So going ahead also, we are expecting the same margins to continue, EBITDA margin, I'm talking about. And what's your plan for the debt reduction going ahead?

See, EBITDA margin, we are confident it will increase going further to the range of 25%, 28% and even 30% after a couple of years. So EBITDA margin is going to increase. Debt reduction, since you know we are already in the phase of expanding the business of the company and our core focus is to ensure that we get the best land at the best cost before prices increase very drastically because of the several developments happening across the micro markets where we want to be in. So our focus is that we will be adding on some more debt for the next 5 to 7 to 9 months. And we'll be starting off those projects and those projects will then yield good cash flows to repay the debt over the span of next 3 to 4 years. So debt is going to increase going further, but the business is going to increase even more. The size of the company is going to grow from where we were in 2021 to where we want to be in 2025. I think there's a big sea change in the portfolio of the company, which will also be very positive going forward to the growth of the company and its numbers and everything.

[Operator Instructions] Next question is from the line of [ Vignesh Iyer from Sequent Investments ].

A few questions from my side. Firstly, I want to know what is the land parts and size that is available for us today in Kharghar, Taloja and Panvel, except for the World Villa project that we are going to start? Do we have any land parts and that is there any plan or commencement of business has not happened yet?

No. As of now, only Arihant Anaika Phase 7 is a land parcel, which is -- where the commencement certificate has not come in place. Other projects have already started off. Some phases of those projects would be going for commencement certificate. But whatever lands we have there, we have already started off with all the projects apart from Anaika 7.

Okay. Okay. Just to understand -- I mean I've been following your company for a few quarters now. And I understand that as a management you have internal decision-making as to purchase the land whenever you have a plan to start up a project, right? Or there is some vision in a year or 2 that you can start up the project. So -- but the area we operate that is primarily Navi Mumbai, now due to MTHL and Navi Mumbai airport, I've seen spike in the prices when it comes to the land pricing. Okay? So going ahead, having the policy, unlike many other real estate players who have land parcel lying with them for a few years. For us acquiring the land parcel going ahead is going to become costly, okay? So I am trying to understand in more like a 5 to 6 years down the line, how are we planning on to maintain the kind of numbers we are maintaining now or the numbers that we are delivering in the next 2, 3 years?

So see, this has been the specialty of the company that the company identifies new geographies and enters into virgin markets where there is no developments or no large developments that have taken place. And we go there and make a market and then everybody follows us. So even if you see we've developed Taloja is a micro market from 2016 onwards, where nobody used to go there, land prices used to be INR 4,000 a meter, which has changed to INR 40,000 a meter today. And obviously, the company has done well over there. Today, also, Arihant Anaika Phase 7, I think we have acquired it at a very, very good cost even though market may be at INR 30,000, INR 35,000, INR 40,000 a meter, we've got the same land at around INR 22,000, INR 22,500 a meter. So the specialty is that we buy directly from the sellers or the landowners and don't buy it through any aggregators. And that reduces our cost of acquisition. And our ability to develop new micro markets and enter into virgin areas is always going to put us in a niche position going forward. And then obviously, in a very highly developed micro markets, we could go in for a JV model or do something like what we are doing in Vashi society redevelopments wherein capital required for -- at the initial levels is not very high. And the goodwill of the company is already there in the market to capture good business and beat the competition when it comes to any tenders or any sale of land. So the goodwill is always going to play a big role going forward down the line, even 5, 6, 10 years down the -- from today. And I think it will not be a big issue since the project that we have taken now are going to yield us good cash flows. So we'll be having good cash flow coming into the company over the next 3, 4, 5 years, which will put us in an even more healthier position to acquire any sort of land that we want to do going forward. As of now, the business in hand is good enough for the next 6 to 7 years. And obviously, we are keen on adding on to that also. And we are -- our business development team is on the hunt even today for any kind of good opportunities which are viable to the company in the long run.

Okay. Okay. Yes. And sir, exactly the idea behind me asking the question was entirely because we were the -- one of the early players -- a few of the -- few players that entered Navi Mumbai market at very early stages. And we have been developing the properties over the last few years when the price was quite tepid. So just to -- the idea behind me asking this is because when the point comes where the price hits the premium, just a point from my side because if the price hits the premium and we are at a sweet spot at that point of time, wouldn't it be a much better idea to develop the business that way rather than identifying a new micro market where the price is tepid. I mean we, as a company, who started -- one of the few companies who have started out the construction and et cetera, part of the micro market at early stage, don't we deserve to get rewarded when the price hits the most premium part of it.

No. So that has not been the ideology of the company to buy lands and hold on to them for 5, 10 years and then develop. We are not a land banking company. We are more of a manufacturing company, which is playing on a very sustainable business model. And we don't want to keep lands in the kitty for a very long run, which -- wherein we just buy for the sake of buying it today and wait for the opportunities to come going ahead. Some micro markets may perform well, some may not perform well. So it's a high risk to put all eggs in one basket also at the same time. And land is available at something slightly 4, 5 kilometers from the developed market also. So it's not a very difficult task. Obviously, prices of land will be as per the present value on the day that you buy. But the business also has to be viable and that is where we put our heads into and that's where we select our land parcels very carefully. Today, also company gets many, many offers, many deals, many opportunities across the entire zone of MMR from Thane till Raigad district. So we are very, very selective in the business that we do. We have a fixed policy philosophy that we follow through. We obviously cater to the population metrics of a particular city. And I think the ideology and foundation is very strong. So it will not be a hurdle for us even going forward. Like you see, even in Vashi, we've got a project in a very highly developed micro market where land is not available for anybody. Arihant has got an opportunity to work on 15,000 square meters of land area. So that's -- the goodwill has put us into this position, and that will keep on adding going ahead as well. So we're not scared that opportunities may not be there. We know how to develop new micro markets and to take that kind of bets there has to be that much capital available with the company also today to take very sizable and very high bet. So we have to be cautious on that as well. Don't want to go overboard with anything. And we have to ensure that the ongoing business does not suffer just for the sake of more acquisitions.

Sir, just one more question. So would it be safe to say that to leverage our goodwill in MMR market, especially the Navi Mumbai, we would be looking more into a JDA and a JV-type structure going ahead over buying our own land.

No. So next 2, 3 years, our idea is to majorly buy. So buying also, we do wherever the prices -- selling prices are around INR 5,000, INR 6,000 or INR 8,000 maximum per square foot. Anything above that is always a JV, JDA model or area sharing or society redevelopment. So if you see even Shilphata, we'll be selling at around INR 6,000 per square foot, that's a JV. Arihant Aalishan an ongoing project selling around INR 8,000, INR 8,500 is a JV project. Arihant Advika at Vashi is also a JV project. So very high capital deployed -- sorry, high intensive capital projects which require very big investments, we prefer to do JV [Technical Difficulty] we prefer to buy also because buying has its own beauty compared to JV, JDA as well.

Right, right. Sir, if you could -- if I could add one more question. So just to understand the micro market of Shilphata. So we already have 3 major builders, one from Navi Mumbai, one is Runwal and Lodha operating and a good part of the construction has been completed and handed over, and we have yet to start. So I mean, pricing it anywhere near INR 6,000 per square feet, doesn't it feel a bit premium or is there something that our housing society is offering something separate or unit that too over the other 3 builders? I mean, Runwal has been facing their own problems for last 1 year in Shilphata market?

No. So Runwal, Lodha, their projects are, I think, 6 kilometers away from our location, 5 to 6 kilometers. So they are in the Dombivli area, and we are at the Shilphata main junction area just 700, 800 meters from the main junction of Shilphata. So our target audience is going to be more who are living in Navi Mumbai areas, like Kopar Khairane, Ghansoli Airoli, et cetera, and Thane as well. So major of our audience is going to be people who are living on rent over here and working in the MIDC IT zone. So for them to travel till our project's location is still viable on a daily basis, it'll take around 25 to 35 minutes on an average door-to-door. But for anybody to go to Runwal or Lodha, it is at least 60 minutes from the MIDC zone in this part of the city. So their offerings are different, our offerings will be different. We'll be positioning our project very differently as well to ensure that we are justifying the price that we want to sell at. And we'll be delivering a very unique and fantastic product, which is not being given by the other big boys also. So that is where we'll have our niche going into this micro market, and we are quite confident that we can sell at INR 6,000 square foot.

Okay. Okay. Sir, just to understand what is -- what would be our IRR that when it comes to a project that is on our own land versus something as unique as a World Villa project that you have been offering in Panvel? I mean just to understand, would something like a Villa project have higher IRR?

As of now, we are expecting a better IRR on the Villa projects and better margins also on EBITDA and PAT levels because the Villa and the plotted development market is very unique even today for MMR. We've seen hardly maybe a handful of projects only coming up in this product type. Obviously, more people are now venturing into it. But I think there is still a big market for it, which can help us get a better pricing in the initial days. And obviously, it always depends on the design of the product. It is never just that you have to sell at this price, the location, design developer, they all matter to the client and the client looks at that and makes his decision on basis of that. So people are actually focusing on the product, the brand, the location also rather than just buying on a particular price tag.

The next question is from the line of Abhishek Getam from Alpha Invesco.

Sir, I wanted to know about Q4 guidance on presales. So at what value do we expect to close FY '24?

Presales, we are targeting to close at INR 1,000 crores by Q4.

So we're expecting another INR 290-odd crores for Q4?

Yes. INR 280 crores, we are targeting to...

Okay. Okay. And major of that will come from, sir, Aspire itself?

Yes. So Aspire obviously, Aalishan, Aspire will contribute very well to that. Some will come from Advika. And we are about to launch Arihant Adarsh also in this month. So that will also contribute to the numbers and values as well. And obviously, ongoing projects are there and they are also contributing to the sales of the company.

Understood. Sir, as of now -- so as per FY '25 and FY '26, what sort of presales are we envisaging?

So '25, we are targeting around INR 1,300 crores. And FY '26, we should be doing around INR 1,600, INR 1,700 crores, anywhere between that. So '25, we expect to be good. And in terms of presales and other numbers also for the company. And with the airport also being expected to open by end of FY '25, presales would definitely pick up in FY '26.

Understood. Can you please provide some broad project-wise split for FY '25 and '26? Any -- what would be the major contributors for this?

So major contribution in terms of values will come from Arihant Advika at Vashi. Arihant Aspire, the World Villas project. Arihant Avanti, then the Taloja projects of Arihant Adarsh and Arihant Anaika 7, Arihant Aaradhya. These are the 6 key projects which will contribute heavily to the value sales of the company.

Okay. Okay. So out of this, so -- out of -- FY '25, is it fair to assume that Advika will contribute around INR 200 crores? And same for FY...

FY '25?

Yes.

Yes, yes. Advika should do INR 200 crores or -- yes, for FY '25, we should do that. The current stage is also going well. Construction is happening at a good speed. Every 15 days, we are doing one slab in each tower. And we are on the 9th or 10th floor right now. And this is a micro market wherein the quality home buyers would like to see the advanced stage of construction with the structures being complete and then they make their decision to buy. So we'll also be getting a better pricing for this project and sales velocity will also increase for the -- in the coming financial year.

Okay. And for Aspire from the existing inventory and new launches, is INR 300 crores sort of doable target there?

No. The total inventory after this launch may be around 350 units, so average is INR 60 lakhs per unit. That would be around INR 200 crores of value. So the stock is not there for INR 300 crores or so.

Okay. Okay. So around INR 200 crores from Aspire then, for FY '25...

Once that we do maybe around INR 200 crores would be left as the stock in inventory.

Okay. And for World Villas, do we expect INR 100 crores, INR 150 crores presales in FY '25?

I see that would be forward-looking. Let the project start off. For projects, which are already ongoing I can give you a decent comment. But for projects that are about to start off, we also want to test the markets and see maybe there could be surprises, but let's wait for it.

The next question is from the line of [ Hemang Dagli from Monarch Capital ].

Congratulations on good set of numbers. I have got 2 questions. One is on the debt -- I'm audible, right?

Yes, sir.

Yes. Our gross debt is INR 440 crores and whereas our serviceable debt is INR 121 crore. Can you explain in some more detail the breaks? And plus, what is the debt equity ratio that as a principle we are going to follow going ahead?

Yes. So gross debt is INR 440 crores and net debt after intercompany eliminations comes to INR 413 crores. And the INR 121 crores is the adjustable debt to ASL. So the debt that is there in the subsidiaries, ASL's liability is only 60% of that debt and the balances of the other minority shareholders. So that's why that we've written it as adjusted net debt INR 121 crores, which is from the institutions, which has to be served on a monthly basis. So this is the debt coming in from the Tata Capital, the ICICI Ventures and the STCI 3 debts that are ongoing for the company. So that's how it is adjusted to INR 121 crores, which is the liability of Arihant Superstructures Limited, the holding -- main company of the group. Going forward, obviously, our business is expanding. We are increasing our portfolio size. So debt would be required to fund these acquisitions. So that could increase to another, you can say, INR 100 crores, INR 125 crores from where we are today. But repayments are also starting off for the ICICI ventures INR 45 crores. And even the Tata Capital has started off their escrow mechanism, so repayments will happen smoothly to that account as well. Already, it was 95, it's come down to 92. So I think cash flows of the company through the ongoing operating business will help in repayments of the debt. And whatever debt we are taking on now is to grow the business, add on more business to the company and increase the size of the company. So that's the total use of the debt.

My second question is on the competitive landscape. This particular Panvel and Navi Mumbai area we have developed and a lot of new developers have now started coming in, which is an acknowledgment that the area is developing and bigger builders like Godrej, Hiranandani have been active -- actively looking at this area in last 2 to 3 years. So could you give some more color on the competitive landscape? And how our projects price compared to their projects and things like that.

So everyone is in a different geography. So we can't just compare ourselves to Godrej or Hiranandani, although we are selling our Arihant Aspire project at a much better price than their projects, Wadhwa's and Godrej and Hiranandani also because the location matters. But if you see the landscape once you get off the MTHL link, that is the area which is going to see great development over the next decade. And this is not just going to be housing, but even commercial, retail, hospitality, industrial parks. JNPT is doing their SEZ. So these other forms of real estate are also going to take up big shape in very big size with big groups like Reliance and Adani already starting off their ventures and other groups will also follow. So it's going to become a very good sustainable city for the globe and it will be recognized individually going ahead as well after the airport and not be a satellite city. It is a satellite city, but this will not be recognized just as a satellite city. This area of Panvel is going to have a great boom because of all the infra and other real estate projects coming in, housing is going to be a key requirement for the people who are planning to come here. We expect at least 10 lakh jobs to be created over the next 7 years that could yield a requirement of minimum 10 lakh houses in this area. And even there is a great pull coming in from retail investors who want to buy 1 or 2 apartments over the last 3, 4 months in the geographies of Kharghar, Panvel, Taloja and in that area of Navi Mumbai, even Vashi, for that sake. So retail investors are also getting pulled to this area because they have now realized that this intra-project is finally coming up. So because of that, the conviction is high for everyone, and we are also very confident on that.

So if I look at that particular Panvel area and Navi Mumbai area, there would be very few handful of developers who have got a very reputed name and whose focus is only Navi Mumbai area compared to a bigger builder who would have a focus across Mumbai. Would I be right in that assessment?

Yes. I mean in terms of Navi Mumbai developers, there's a very handful who are having sizable business in the MMR region. So we are one of them. And obviously, there are other developers like the Godrej and Hiranandani who are spread across the entire city and across the country also. So their scale is different. But in our -- in this micro market, we are able to beat or -- beat their skill or beat them in many competitive numbers. So we have a competitive advantage, and we'll continue to do that even going ahead. So that is going to be a key factor to our growth in the coming 3 to 4 years.

The next question is from the line of [ Vignesh Iyer from Sequent Investments ].

I just wanted to know what would be our revenue recognition going forward? Where do you think -- I mean, what is the internal/external as to for FY '24 and FY '25?

So we cannot just highlight any number that would be very forward-looking. But as a company, we are planning to grow at a 25% CAGR from the FY '23 numbers across all verticals.

Okay. Okay. Just let me put it this way. For FY '25, which project we are expecting to get OC for?

OC would be coming for Arihant Aalishan, Arihant Aspire. So these are 2 big projects where in we'll be developing -- delivering substantial inventory. Arihant Anaika 5 at Taloja also would be getting completed in FY '25, Arihant Aloki as well. Some OCs are expected in -- before March also for Arihant Anmol at Badlapur. And Aalishan 1 building out of the 2. And even -- yes, so there's a good lineup of deliveries in this -- in the next 12 to 13 months. So projects are reaching that final completion stage and that is good for the company, which will help in the forthcoming phases also of those projects, especially Aspire.

Okay. I mean, is there any specific time line of OC, I mean, most of these projects will come in the first part of H1 FY '25, H2 FY '25? How is it -- what is the expected time line?

H1, you can expect Aalishan to get completed. H2 will be Aspire and Anaika 5.

[Operator Instructions] As there are no further questions, I now hand the conference over to management from Arihant Superstructures Limited for closing comments. Thank you, and over to you, sir.

Thank you, everyone, for taking time out to join on this call, and we always learn a lot with the discussions that we have over here, and we are keen to interact with you all separately. Also, if anybody has more questions, we can get connected. You can connect with our Investor Relations team or contact us directly also in the finance department, and we'll be happy to connect. Thank you so much.

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