Ashiana Housing Limited (523716) Earnings Call Transcript & Summary

Ladies and gentlemen, good day, and welcome to Ashiana Housing Limited Q2 FY '25 Earnings Conference Call. [Operator Instructions] Please note that this conference is being recorded. I now hand the conference over to Mr. Binay Sarda from E&Y Investor Relations. Thank you, and over to you, sir.

Thanks, Tanyan. Welcome, everyone, and thanks for joining this Q2 FY '25 earnings call for Ashiana Housing Limited. The results and the investor presentation have been mailed to you, and it is also available on the stock exchange. In case if you have not received the same, please write to us, and we'll be happy to send it over to you. To take us through the results for this quarter and answer your questions, we have today with us Mr. Varun Gupta, Whole-Time Director; and Mr. Vikash Dugar, CFO. We'll be starting the call with a brief overview of the company's performance of this quarter, and then we'll begin the Q&A session. I would like to remind you that everything said on this call that reflects any outlook for the future, which may be construed as a forward-looking statement must be viewed in conjunction with uncertainties and risks that they face. These uncertainties and risks are included, but not limited to what we have mentioned in the prospectus filed with SEBI and subsequent annual reports, which will find on our website. With that said, I'll now hand over the call to Mr. Vikash Dugar. Over to you, sir.

Thank you, Binay. Good afternoon, everyone. I hope all of you and your families are keeping healthy. I welcome you to discuss the performance of the second quarter of FY '25 for Ashiana Housing Limited. Thank you for joining us today. Area booked recorded at 7.29 lakh square feet in the second quarter of FY '25 vis-a-vis 4.43 lakh square feet in the first quarter of current year. Increase in a year book was attributable primarily to the launch of Ashiana, Amarah Phase 4 in Gurugram, bearing 2.95 lakh square feet was sold out of INR 4.79 lakh square foot. Value of area booked at INR 672.54 crores in the second quarter vis-a-vis INR 235.32 crores in the first quarter of FY '25. Total presales for H1 FY '25 at INR 907.86 crores. We constructed 6 lakh square feet in the second quarter vis-a-vis 4.9 lakh square feet in the first quarter. Total construction for half year of FY '25 was at 10.92 lakh square foot. However, as anticipated, our total revenues are lower for the quarter at INR 59.53 crores vis-a-vis, INR 128.51 crores in the first quarter, reflecting the lack of product deliveries during Q2 FY '25. Likewise, our PAT for Q2 FY '25 stood at negative INR 7.55 crores. This performance was mainly due to the fact that aside from one phase in Ashiana Shubham in Chennai, no new phases were delivered in the first 6 months of the current year. That said, we are optimistic about strong second half with several key project delivery schedule, which would positively impact our full year earnings and profits. We continue to maintain our guidance of INR 2,000 crores of presales in the current year. Pretax operating cash flow recorded at INR 78.18 crores vis-a-vis INR 75.29 crores in Q1 and INR 74.92 crores in Q1 FY '25. Pretax operating cash flows for the half year was at INR 153.11 crores. Cash flows continue to be healthy due to higher collections driven by better sales across projects in general. On this note, I would like to conclude my remarks. We will now be happy to discuss any questions or suggestions that you may have. Thank you.

[Operator Instructions] The first question is from the line of [ Shivam Prashar ] who is an Individual Investor.

I just want to ask that, is there any plans of buying land in Gurgaon as you don't have any other land other than the Sector 80, HSIIDC-I.

Bhai Shivam, as of now, we don't have any active ongoing negotiations in Gurgaon. We continue to look for parcels. But in our opinion, the Gurgaon market has become very expensive on the land side. And I don't -- at these prices, we are finding very hard to find commercially viable transactions in Gurgaon at this moment in time. So we are in conversations but very slow overall in the uptake there. We are focusing more on other neighborhoods where we find commercial viability.

Okay. So sir, like this we have been listening from past couple of quarters that you're finding Gurgaon expensive. But if we look at your peers, like everyone is buying land in Gurgaon. So is there any specific reason that we are not able to find the land at good prices or the peers are getting it at a higher basis?

That is a matter of relative perspectives. In whatever the peers have paid for lands in auction, which I am aware of prices, they were significantly above the price, I would have been willing to pay in some of those auctions. And we looked at in NCR, we participated in 2 of those auctions and the final closing price was significantly ahead of our walkaway price. And so in our opinion, those prices are expensive, but these are -- this is all relative, right? So we might have a different lens to apply to the market, and that's their view.

Okay. And sir, what will be the price realization per square feet in the Sector 80 land that you're having as compared to the Amarah? Will it be lower or higher because it's like a big far from Amarah?

Hard to comment on it, Shivam but going to be either higher or lower is not going to be too further away from each other. So it's going to be similar price points tad bit lower or a tad bit higher, will depend at the time we launched the project and as that market scenario at that specific moment of time. But we expect them to be not very divergent in price points.

And sir, any update for the balance units of Phase 4 and Phase 5 of Amarah? And the price realization that we expect?

I will take this last question. There are some people in the queue. After this, we would request you to get back in the queue, if that's okay. So there is, in the sense of Ashiana Amarah's Phase 5, that launch is expected in the fourth quarter of this financial year. We are working on RERA application there, which we hope to push soon and then after RERA go ahead and along. And Phase 4 of Amarah, we continue to sell Phase 4 Amarah. And the total units sold in the quarter and as on date in the project are updated in the deck that we have given. And the loan sales were anyways given out separately. So we have sold a few units since launch and October sales were also good in Amarah Phase 4 from a sustained and sales perspective.

Okay. So sir, what's the pricing on the balance Phase 4 even like it's higher than the previous one or it's lower?

Yes. Yes, the unit pricing is higher because the launch discounts have been taken off the units. And I hope to continue to increase pricing as well. So I don't know when the next price increase will come, but the launch discounts have been taken off, so effective pricing.

The next question is from the line of Himanshu Upadhyay from BugleRock BMS.

So my one question was, we did a premium housing project for One44 in Jaipur. What were our -- are our free learnings and then the potential for such -- what is the potential for such projects in Jaipur? Can it be a 3 to 4 lakh square feet product every year in Jaipur, which can be higher margin mark? Any thoughts on that rising product, INR 8,000, INR 9,000?

So first, we call them Elite Homes, Himanshu, so a good question over there. So one learning on that is that the audience here that comes in is very different from some of the audience that we've been catering to. Some of it is what we have catered to earlier. Maybe they had invested in other projects are now buying to live here because now they suit their requirements. So one learning was that there are customers who are searching for this kind of an offering from Ashiana. So there were a customer pool. So the hypothesis, which went correctly that there was a customer pool, which wanted Ashiana kind of projects in Jaipur, but in bigger sort of size and a little bit more closer proximity to the city which One44 provides. And I think that's been our biggest sort of learning that there is a market for this, and we have learned how to sort of little bit position this how do we sort of cater to their needs. So there have been some sales learnings also along the way that we have gone ahead and done. And yes, I see about 2 to 4 lakh square foot annual market for Ashiana to play out. It will take some time to build out because we'll need to do a couple of more projects before we can start doing this like sort of an annual basis, maybe take another project of 4 lakhs, 5 lakhs square foot and then take it from there into the next step and then take it from there, would be the ideal way to go about doing this. But definitely it seems like there is a good market for this.

Okay. And one more question on Jaipur only. The land we are leasing in Jaipur for residential development of 20 acres, can it be possible that the other developers from whom we are buying this land -- or not buying, but leasing also launches the project if they see success in our launches and can lead to increased competition in that micro market, as they have a huge land bank. Is there some exclusivity that for next 3 years, we will have the first right of launches and sell in that market and then the other person can come up. Any thoughts here? Or -- because it's a residential housing or a general purpose, how senior living what we did with them in Chennai land park.

So 2, 3 things, Himanshu, even though it is a lease, it is effectively a buyout because that's the structure in Rajasthan, even all our regular projects earlier have been leasehold freehold came in very later in any way. So it's been a sort of generally, it's a very long tenure 90-year lease kind of a structure. So they are not -- they're effective in commercial subside, they are sale of land, okay? And we're going to develop and do that. That's from a commercial substance respectively. And yes, the landlord is free to go ahead and develop themselves. They are free to sell other parcels to other developers who can also come in. At this moment of time, I think more development there would actually be good for the neighborhood because actually it will develop the neighborhood. And second, having done Ashiana Umang with the size and scale, it is there in that micro market and our brand name in Jaipur in general. We will be -- in my opinion, we are market leader there, and we will check the tone in the market, so we don't worry about competition so much coming in that perspective because our products are very differentiated as of now, and we do enjoy decent cost structures as well. So I would be actually happy if a few more developments came because they will perk up the market and create -- and therefore, create a different level of activity in that neighborhood as compared to your right. And supply is -- it will not create an oversupply situation to me, even if 2, 3 more developments came in at the same larger development.

And 1 last, and I'll join back in queue. We have got CC for Ashiana outserved in Lavasa. Any thoughts on when we want to launch it because the CC we got in July, okay, it's maybe 4, 5 months we have not launched it. So any thoughts there?

Yes, we have not put a specific thought to that yet, Himanshu. We've been trying something alternative with it to see if we can find one single buyer or some other process of leasing it out in between. So there are -- there have been some alternative options being explored. So it's hard to comment exactly when we will take that up.

The next question is from the line of Rohit from [indiscernible]

So sir, based on your Slide 16 on the presentation, is it correct that -- so you were -- you sold in terms of deliveries for this year, you have a delivery of at least INR 667 crores in this year? So based on that, around INR 480 crores will be the coming H2. Is that understanding correct, sir? And this would increase as well.

Yes. Yes. That understanding is correct, right? So INR 666 million is what we expect to deliver if things go as per plan. And if you remove the first half, whatever is left should come in the H2. That's correct. And another INR 90-odd crores of unsold stock in those projects are remaining depending on how the pace of sales on those projects continue, that should also come up for delivery. And there is some completed unsold inventory like Ashiana Town, where we have sold, which is -- which will come up a little bit more over and above on top of this.

Fair enough. Understood, sir. And sir, was good to see that you've done 2 land deals in, one in Jaipur, which you briefly spoke about just now and then also in Bangalore. So the Bangalore -- so both are sort of expected to be complete by when? I mean, I think there are some CPs left, so just wanted to get a sense.

Within the sort of Jaipur one is a 90-day period is expectations from the date of the agreement. So let's say early next quarter is when we hope that will get concluded. And about 4 months for CPs in general is what we would expect in Bangalore from the date of the agreement. So again, middle of next quarter is what we would sort of expect those CPs to get completed and for us to move forward.

Okay. And once done, then how long would be the launch, specifically in Bangalore because it's a new market for us? So how long would you take to sort of get to a launch kind of levels?

12 to 18 months is what my general expectations are. I'm hoping we can move things faster. But yes, that's what I would say would be 18-odd months is what I would take in Bangalore.

Okay. Sure. And sir, you've not changed -- you're still maintaining your INR 2,000 crores of presales guidance. So that would mean that we need to do to INR 1,000 crores to INR 1,100 crores in the second half. So what are the key on that you have in the second half?

So we have a Amarah Phase 5. We will be launching Phase 2 of Nitara, Ekansh Phase 4, Ashiana Tarang, Ashiana Amodh's Phase 2. There is some more in Tarang as well. Yes, that's that should be -- of this, the biggest piece would definitely be Ashiana Amarah.

Right. Right. And sir, in the ones that we have launched already, if I'm looking at your Slide 15, I think yes. So I think there is -- I mean, most of the projects are -- so we have about INR 75 lakhs of sellable area and we've booked about 58 already between the ones which are significantly like -- I mean there is some bit of unsold and I think some of this has launched recently also. So -- but just wanted to get a sense of that is there Advik Phase 2, that seems a bit slow. Is that correct? Or I mean we have some portion -- quite a bit of portion unsold. So is that slowly moving or my understanding is wrong there?

What Ashiana Advik, if you look at it, has been doing about 30,000 to 40,000 square foot or average a quarter and that's fine. Ashiana Advik Phase 2 was launched in the first quarter of this year. And senior living projects are not that we get a rush of sales at launch, we generally sell the project through the life so at 40,000 units a quarter, we will be okay with it. There's no challenge. And so I'm not uncomfortable at all with Advik's sale volume.

Got it. And on similar lines, sir, on Malhar, in Pune, Phase 2 and 3 -- I mean, Phase 3 rather.

Yes, again, Phase 3 was launched. So in Q2, actually, so Phase 3, the sales volume is at completely at launch. We also wanted to move in Ashiana Malhar from selling very quickly at launch tool be more comfortable in selling progressively as long as we get a better price. Pune pricing was a little bit of a concern to us. So we -- and Phase I/II, we wanted to sell a lot of volume to get the project going. In future phases, we are okay with a little slower sales because you still have time in the project. So cash will anyways come in as well the project will get built. But the project has gotten a sense of financial security now to get through and get going and put that together. So pricing will definitely move up and with that in mind, I think Malhar was also considered the same way. If you look at even, let's say, Amarah Phase 4, we didn't sell as well in terms of square foot volume as Amarah Phase 3, but we nearly achieved as much sales price in total revenue terms because we upped the sale prices, and we want to continue to sort of get some pricing there as we go forward because we are in the later phases of the project.

Right. So just 2 more questions, sir. So one on -- so this year, you've already mentioned that you will be in black for the entire year. But any sense on what kind of profitability will you see? Because Phase 2 will be there? And I think Phase 2 onwards of profitability -- sorry, that was unknown, sorry. But in general, I wanted to get a sense for this year, what kind of profitability will you start you will be seeing.

So I think profitability for this year would probably be very similar to last year, except for Ashiana Advik, which is a high profit margin project, cheaper land and those. It's FY '26 onwards, where I see our overall profit profile changing significantly, '26, '27, '28, those will be higher-margin projects in general. This year, again, that similar to last year kind of profit margins. Last year, I believe we did a 9% PAT margin, if I'm correct. So somewhere probably around there, maybe a tad bit better than that.

Go it. And just last question is -- I mean, so -- from here on, this year FY '25, let's say be close to INR 2,000 crores. We don't have a lot of surplus line now less to really like continue with the growth rate that we would want during the upcycle. And like you mentioned, obviously, the land prices are going up. So 2, 3 years out, how do you see -- I mean, of course, next 2, 3 years, the deliveries are going to be up to reported numbers will be better and at better profitability also. But from presales point of view and scale that of our business, how do you see that we've entered -- we have scaled up a couple of cities, Gurgaon, Pune, also now hopefully entering Bangalore now. So I mean, would be glad to hear some of your thoughts.

So, Rohit, I will take this up by giving an answer. I would just request after this, if we can come back in the question queue as well. Some people why had asked few questions have joined back the queue. So after this one, please, if you can come back in the queue. I'll take this up and I'll give us a little bit of a -- so it becomes from a management perspective, this challenge comes in right now is to, should we deploy capital at these times in the market, largely. We find the lands overpriced, but sales velocity is gold. Should we keep speeding the sales pipeline to improve presales? And is that the only thing we should look at or should we be a little bit more fearful that if things turn off? And if you have paid overpaid for land, where will we get stuck and how will the markets behave? Unfortunately, there is no sort of straight line answer to this, okay. In my view, though, has been that -- let's worry about annual presales a little less, okay? Our objective is to create the capacity to do those at the brand, at the sales machinery, the construction capacity and do that. Can we live with a little bit of aberration here or there, we probably could. So first of all, yes, presales a couple of years might be out. But for me, whatever we have on stock right now, if we sell is, build this out, we can recognize close to INR 2,000 crores of profit from it. And if we can get that in the next 5, 6 years, from earnings run rate perspective, growth perspective, I think, will be solid from the kind of base we are at, and let's say, we realize these entire profits by 31st March '30 which we intend to do between this kind of number. From a total revenue, cash flow, earnings, return on equity, return on capital employed, we are sort of doing very, very well compared to the current net worth, current profitability and we do that out there. So we are -- but then the question of presales comes in and stays with us. So the way we have looked at it is this, that we will allocate capital from an ROE lens and where we find capital very reliant, very expensive, we will see what we can do to ensure that our return on equity remains good. So one is either lower the capital employed through joint ventures. Second, look at smaller scale projects like we have taken up One44 in Jaipur, which is 4 lakh square foot. We've taken up another small project in Jamshedpur. Again, very little capital employed, but can you buy small amounts of stock that we can turn around a little faster and quicker? So even if we have risk on the stock becoming too expensively priced, my risk is limited to a smaller number. So that's one. Third, can we find pockets of value where people are not looking where I can still see to make good margins and numbers? So we saw this opportunity in Jaipur. So we have gone ahead and done a large transaction. Again, these are things where I can be completely wrong, right? Future might tell me otherwise. But that said, we saw that in Jaipur, we have delivered a project. We saw so we do something larger. So we are looking at it from that lens and to do and see senior living as another way maybe one, where we can find opportunities to do more scale and continue to increase that number. So that's the -- that's the way we are chipping away at this problem right now slowly and slowly and get there. Right now, we have good stock from another couple of years perspective for the next 2 years. After that, a little bit of challenge might come in. But we have made up our mind if we might be -- like in Gurgaon, I'd rather live with the problem of not having something to sell for a year or 2 rather than having the problem of having such an expensive line that's selling it at profits or even a regular return just become very difficult, and we don't have the flexibility of having a liquidity available to respond to it as. Between those 2 errors, I'd rather make the error of not having enough to stock to sell. That's according to me, which side we will earn on because having cash does provide flexibility in that aspect. So that's where we are coming from. And I can tell you this much in my opinion now we can see some signs of crossing this in a few markets, sales are not going as well for some developers that we are hearing some slight reduction in prices, oversized units. And some of that we'll get start getting talked more and more about in some micro markets. And I'm sort of kind of glad in some of the places where we did not do transactions like in some auctions where somebody paid a lot more than us and you feel bad at that point in time, like why didn't I get a deal that I want, but we look at it now and we're like, yes, that was a good thing we did. We shouldn't have that paid that price that our people pay right now. So that's how I'm thinking about this. I'd rather earn on that side of the mistake that we rather not have stock to sell, rather than having overpaid for stock.

[Operator Instructions] The next question is from the line of [Saket Shah ] from -- who is an individual investor.

My question was, how are we planning to raise the funds for expansion? And is there any road map for its utilization and improvements in margins in our projects?

Okay. So 2, 3 different things. So first, if you're going to raise money, we will raise money by way of debentures or launch. We have a platform tied up with IFC to invest in our funds, and that's a INR 225 crores platform. We will be utilizing some of that platform for some of our projects. We have also probably take approval to raise secured debentures in case we need to do some secured debentures like we did to ICICI approve earlier on in the year, we can do that and take some construction finance if needed. But construction finance will be a small piece because most of the funding we'll need probably will be for land acquisition. But we'll do that at that time when it comes to acquire more lands and as and when we go ahead into that. And operating cash flows remain very robust and strong. We have had over INR 150 crores of pretax cash flows from current projects in this half year already, and they seem to be robust. And on margins, we -- as I elaborated earlier from FY '26 onwards, I would see margin expansion to start happening for us because the higher-margin projects will come up for delivery like Ashiana Amarah, Ashiana Ekansh. These are higher delivery projects, margin projects, Nitara, Prakriti, Advik. Basically, things we have launched over the last 3 -- last 3-odd years are the ones which are higher-margin projects. And as and when they come for delivery, you will see better reporting margins coming forward.

And in terms of current ongoing projects, would we see any cost overruns and environmental compliance costs or cancellations with respect to any projects? And will they effect further half H2 FY '25 sales?

Right now, we continue to have a guidance of INR 2,000 crores of presales for this year. I don't know what the future will look like if things change or events come in. I honestly don't know, Saket, to comment on the same. From a cost perspective, costs in general, has been increasing and will continue to increase because of compliance, environment and construction costs, therefore, will go up in that regard. But that said, I expect -- even after that, margins to continue to improve because the kind of pricing, we have sold some of these units at, I think we will -- we'll have good margins FY '26 onwards.

The next question is from the line of Sourabh Goyal from AR Systems.

I had a question related to profitability. However, I already got the answer from Himanshu's question. But still, I have a question related to profit margin. So how much profit margin we are expecting for upcoming years, '25, '26 and '27 if we are talking about some estimation?

Okay. In FY '26, we should hit low teens, okay, or maybe 12% plus to 12% to 13%. And FY '27 onwards, I would expect to have 20% net profit margins. So we see 2 things that are happening. Degree of operating leverage is going to come into play. As you can see, the expected revenues are increasing at a different level, so fixed costs will get spread over a sort of a much higher revenue base. And secondly, as I said earlier, the projects which have launched -- we have launched in the last 3 years, pricing has been on the upswing. So you will see gross profit margin expansion as well at the project level, both in that combination will lead to improved margins.

That's nice to know. And it means profit margin will be double from 9% to -- up to 20% in 2026, right -- sorry, '27.

'27. So '26 should be according to me around 12% to 13% is what I would expect FY '26 profit margin.

The next question is from the line of [ Shivam Prashar ], who is an individual investor.

Sir, any price plan that you have decided for the Amarah Phase 5 right now?

Shivam, no, we haven't decided the exact Amarah Phase 5 price bracket yet. Again, that will be done closer to the launch time. In Gurgaon, any project right now, the market is such that all pricing decisions are made like 4, 5 days, 5 week, maybe 2 weeks prior to launch that curve.

Okay. And any -- like can you just tell that why will the Bangalore launch take 18 months from now, and also that -- when are you expecting the sector 80 launch in Gurgaon?

So Sector 80, I would expect either in the first quarter or the second quarter of the next financial year. So Sector 80, we have sort of now gotten some clearances, some clearances are going on. And Bangalore will just take longer because you don't know the city here, so we don't know the approval methodology, will take longer to be set up with team, will take longer to set up a show flat and a sales office and do all of that. And just take -- it will take 6 months more than what usually would take 4 months more than what you should take.

And any other city also you're exploring?

No, nothing else, nothing outside of Bangalore that we -- as a new city, we are exploring. Panvel, we are looking at, but we see it more as an extension of Talegaon already where we are servicing Bombay with senior living.

The next question is from the line of [Rishi Singhal], who is an individual investor.

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[Foreign Language] miniscule in terms of impact to the balance sheet in terms of rupee value.

People are living there, right?

People are living there. Correct. They are living there and they're living there happily. [Foreign Language]

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[Foreign Language] I agree with that. That's the worst-case scenario. We are looking for some other solutions, which can be easier on the management bandwidth. [Foreign Language]

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[Foreign Language] Go ahead, please.

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[Foreign Language] They don't have the budget really to finance it and acquire it. [Foreign Language]

They want to make a housing colony out of there. [Foreign Language]

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[Foreign Language] So we will -- project to project, market-to-market, we'll make decisions as they fit the bill of our risk appetite, our return requirements and then the way we operate [Foreign Language]

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[Foreign Language] but I think that Gurgaon land markets will also, sort of, got tapered off a little bit. [Foreign Language]

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[Foreign Language] more than twice the price of what we bought [Foreign Language]

Okay, okay, okay. That's very good to hear. [Foreign Language]

We are not seeing anything outside of senior living. The other thing is, though, as we get scale in a few more markets than just sort of Jaipur earlier and Bhiwadi earlier, I think what will happen is, different markets will be in different stages of a cycle at different moments of time. So it will bring some stability in that nature. So I want that also happens as we go along. Right now, your -- some relatives of mine telling me [Foreign Language]. So fewer markets [Foreign Language] I think one of the other things that India will not have one sort of continuous real estate cycle across all markets, across all regions at the same time. So that will bring some stability as well that we will be participating across a few markets.

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[Foreign Language] over the last 12, 24 months, do we see a lot of supply coming into the market? That's the other thing we see.

[Operator Instructions] The next question is from the line of [Saket Shah] who is an individual investor.

Yes. I just wanted to ask 1 question, so 1 or 2 questions. How we see the FY '25 revenue total -- on totality basis? And at what percentage it would be rising for FY '26 and '27? And stable for EBITDA margins.

Okay. So do you have slide?

No, sir. No. I don't have.

Okay. Do you have the deck?

No, no. I don't have, that's why.

So if you look at our deck Slide 16 of our debt gives you a sense of expected revenues in each financial year, okay? These are obviously subject to us delivering the projects on time to make those expectations. So FY '25, we are looking at probably a total revenue this year '25, around INR 700 crores, INR 750 crores. And that rising to probably about INR 12 crores -- INR 1,100-odd crores in '26 and going up to INR 1,700 crores in '27 and EBITDA, we don't track as a number. I don't know the margins on that. As I said, on a first -- on a percentage margin, we are looking at about 9% this year. Going up to 12%, 13% next year and then expanding to probably 20% after that. And over the -- let's say, a cumulative period of 1st April '24 to 31st March '30 where we expect to consume most of our ongoing projects and future projects. These are excluding deals, land deals which have been done in the, let's say, 12-odd months or whatever we -- 1st April. We expect to generate about INR 2,000 crores of profits from these projects over these 6 months. That's the kind of basic thought process that we have. And average profit margins should be in the high teens over this life cycle.

Okay. Yes. And with respect to inventory, so I guess, about old hanging inventories only of Lavasa, so rest all inventory, which is where there is probable newly project, newly completed projects. Am I right?

There is some inventory left from some other projects, which is covered in Slide 26 of our debt, again. Bhiwadi still contributes majority of this with Ashiana Town and Ashiana Surbhi, leading the pack. Of this, Ashiana Towns, we have been selling consistently well. And now we have come down to very -- it's down to 53,000 square foot as compared to I believe 5.5 lakh square foot at one point in time and should be cleared out in the, let's say, in the next 3, 4 quarters, we should be able to clear out Ashiana Town. And we'll pick up Ashiana Surbhi after that to clear out in Bhiwadi.

The next question is from the line of [Rishi Singhal], who is an Individual Investor.

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[Foreign Language] We have seen good volumes in Bhiwadi and I think Bhiwadi will continue to do well for us going into the future. We are finally actually looking at deploying money there also. So we are looking for land in Bhiwadi. We want to do ones -- hopefully, we'll do one project there as well, one more land there and we are very excited about Bhiwadi going forward.

[Foreign Language]

[Foreign Language]. I don't have the exact number, but INR 3 crores to INR 4 crores on a book value basis, yes.

As there are no further questions, I would now like to hand the conference over to the management for closing comments.

We would like to thank all of you for being on this call and being so patient with all the questions and answers. If we were unable to take any questions, please feel free to write to us directly or reach out to us directly. And with that, we would like to conclude the call. A lot of the materials we have spoken about is posted on our website, and you can also e-mail your questions for any further clarification. Thank you once again for taking the time to join us on this call. Thank you.

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