Signatureglobal (India) Limited (SIGNATURE) Earnings Call Transcript & Summary

Ladies and gentlemen, good day and welcome to Signatureglobal (India) Limited's Q3 FY '25 Earnings Conference Call, hosted by ICICI Securities. [Operator Instructions] Please note that this conference is being recorded. I now hand the conference over to Mr. Saishwar Ravekar from ICICI Securities. Thank you. And over to you, sir.

Good morning, everyone. On behalf of ICICI Securities, I would like to welcome everyone to the call today. Today, from the management of Signatureglobal, we have Mr. Pradeep Kumar Aggarwal, Chairman and whole-time director; Mr. Lalit Kumar Aggarwal, Vice Chairman and whole-time director; Mr. Ravi Aggarwal, Managing Director; Mr. Devender Aggarwal, Joint Managing Director and whole-time director; Mr. Rajat Kathuria, Chief Executive Officer; Mr. Sanjeev Kumar Sharma, Chief Financial Officer; and Ms. Preetika Singh, investor relation. I would now like to hand over the call to the management for their opening remarks. Over to you, sir. Thank you.

Yes. Good morning, everyone. Welcome to the Third Quarter and 9-month Financial Year 2025 Earnings Conference Call of Signatureglobal. I'm happy to discuss our operational and financial performance with you today. I trust you have had the opportunity to review our investor presentation and results press release. The Indian real estate sector is witnessing great time encouraged by recent policy development. With the Union Budget 2025, government indicates support for housing sector growth with an allocation of INR 54,832 crore for Pradhan Mantri Awas Yojana and INR 1 lakh crore for Urban Challenge Fund allocation to transform cities into growth hubs, and INR 15,000 crore fund launched to complete a 1 lakh additional units under the SWAMIH Fund 2. Adding to this positive energy, the RBI recent decision to the -- reduce the repo rate by 25 basis points to 6.25% is expected to enhance home loan affordability, particularly benefiting the affordable and mid-income housing segment. These developments are particularly significant, as they align with the increase in housing demand we are witnessing across key markets. This supportive macro environment is especially evident in the Delhi NCR region, where infrastructure development is reshaping the real estate landscape. The transformation of the South Gurugram, particularly along with the SPR and Sohna corridor, [ has -- remarkable ]. These areas have emerged a preferred destination for homebuyers, driven by the improved connectivity, social infrastructure and planned development. This growth trajectory align perfectly with our strategic focus on these high-potential markets, as demonstrate by our -- overwhelming response to our recent launches in these areas. Let me share our financial highlights for 9 months FY '25. We have achieved strong presale of [indiscernible] 12,800 billion -- INR 128 billion in entire calendar year 2024. [ The book ] profit after tax of the -- INR 40 crore in 9 months FY '25. Also we have our best-ever 9-month performance with a presale of INR 86.7 billion, representing an impressive 178% growth year-on-year. And this exponential performance was driven by successful launches, including Titanium SPR and Daxin Vistas on Sohna corridor. Our operational and financial performance underscores our dedication to delivering quality product in mid-income housing and premium segment. Our strategy continue to focus on offering the right product at the right price point in the right location, a combination of has always supported our market position. With that, I would like to conclude my remarks; and hand over to our CEO, Mr. Rajat Kathuria, who will take you through our detailed financial performance. Thank you for your attention.

Thank you, Pradeep-ji. Good morning, everyone, and thanks for taking out time this morning for our investor and quarterly results. So like in the past, the core of our strategy has always been to focus on mid-income housing. We've kept our performance on the same lines. We've -- we're keeping our focus on mid-income housing. By and large, the consumption trends remain quite steady. And our hypothesis that supply creation does lead to demand creation is kind of holding good because, during these 9 months also, we've launched several new projects across our core markets, whether this was project by the name of Titanium SPR or Daxin in the Sohna market, City of Colours in Manesar or Twin Tower DXP which is just next to the Dwarka Expressway. So all of these core markets, we've created sustained supply. We've come up with projects one after the other in tandem, and that has resulted in very strong demand creation. By and large, all these projects have shown fairly good sort of customer enthusiasm and participation, so a lot of our sales have been driven out of this new supply which we've created. And to add to that point: Even in our previous projects, we have very little unsold inventory. So that thesis that, if you come up with projects at the rightful sort of price points and capital value per unit, there is ample and more demand for these units. So even for the 9-month period, if you look at some numbers, we've roughly sold at about -- roughly sold around 3,500-odd units, with an average ticket size of about INR 2.5 crores. With the quality of product and the location of these projects, the price point is very well accepted in the local market. And given that the units are being offered from a fairly large and -- developer with strong track record, we receive good traction from the customers. If you look at numbers. In terms of presales for the previous quarter, we did about INR 27.7 billion. All these amounts are in INR billion. So for the quarter, it was INR 27.7 billion. For the first 9 months, it was close to INR 86.7 billion. And most interestingly, if you look at the trailing 12 months, which is the full calendar year 2024, the number stood at some INR 128.8 billion, which shows that we've crossed a comfortable INR 1,000 crores per month sort of sales performance. While this was the overall quantum. In terms of realization, if you look at it, our average per-square-foot realization was in excess of INR 12,700-odd per square foot. On a portfolio level, this is roughly 8% higher than what we achieved for the full financial year, which like for FY '24, that number was closer to INR 11,700. So the pace of increase is lower, but still, given that there is a lot of demand for mid-income homes, we are still seeing a price rise happening in the market. These numbers are at a portfolio level. Even at project level for us, we've seen a similar sort of trend in terms of project-level price increases which we've managed to pass on to the customers during this period. Our collections are improving on a quarterly basis. For this 9-month period, the overall collection was higher than INR 32 billion. And interestingly, we've created a good surplus. Our surplus, operating surplus, after paying taxes is almost now touching 40% of the collections. It was 38%, to be precise, but on this INR 32-odd billion of collections, we've created a surplus which was in excess of INR 12 billion which was deployed quite evenly between new business development, which is effectively land acquisition or land-related advances, or towards net debt reduction and debt servicing. So during these 9 months, we added about close to 3 million square foot of developable area in Sector 37D, which is again one of our core markets. After these 9 months also, during this quarter, we've announced it in the month of January, that we've acquired another 16 acres of land, adding another 2.7 million square foot of space, in Sector 71, which was -- this line was earlier held in a -- under a collaboration agreement which we've now acquired. But getting back on the surplus side. Out of this INR 1,200-odd crores or INR 12 billion or surplus, about INR 570 crores/INR 5.7 billion went towards land acquisition. Of -- about INR 4.2 billion went towards reduction in net debt and about INR 2 billion went towards debt servicing. So this is the reason you will see that our net debt has also fallen despite growing operations, growing presales numbers, growth in revenue recognition through completions. You will see that our net debt number is kind of gradually -- on a year-on-year basis is kind of getting down. Now while net debt is going down, our portfolio remains fairly robust. Till date, we've completed projects equivalent to about 13.5 million square foot. There's another 11 million square foot which is at an -- advance stages of completion. At the start of the year, this number was closer to 16 million. We've come down to 11 million now, and over the next 5 to 6 quarters, this entire 11 million square foot should be getting completed. Besides this, there is another 35 million square foot which is either at early stages of launches. Or it is yet to be launched. So there's about 13.5 million square foot which we've lost over the last calendar year. So even if you look at the launches: During this calendar year, we've done launches closer to almost 180 billion. This includes January to March '24 as well. So this 13.5-odd million square foot is fairly early in terms of its life cycle, but besides this also, there's another 21.6 million of land-stage sort of inventory which we are sitting on which has a staggering GDV potential of about INR 350 billion, so we still have good amount of unlaunched projects which we launch basis market conditions and, hopefully, over the next 2, 2.5 years. If you look at the financial performance basis completions, we -- sorry. Prior to that, we will just, as of today, stick with our guidance, whether it's in terms of launches, where we've done launches worth INR 135 billion over the first 9 months. So we are hopeful and we are keeping the launch number constant. Our presales, which is at INR 87 billion, we hope to comfortably surpass INR 100 billion on that front. On collections and completion, basis revenue recognition also, we are expecting a fairly good quarter. And hence, we've kept the guidance constant at INR 60 billion and at INR 38 billion, respectively. In terms of profitability of the products being sold, we are maintaining that the implied EBITDA margin of all the sales which is currently happening will be at 35% and hence will yield a very strong PAT-level margin for the company. Besides that, in terms of revenue recognized: So we roughly completed around 2.7 million square foot. And approximately, per -- realization per square foot on the inventory which got completed and hence is getting reflected in the P&L account was sold at about INR 7,000-odd a foot, so there's a huge difference and hence there's a delta in the underlying profitability. So at the INR 7,000 foot sort of product which kind of got completed, we've done revenue recognition of close to INR 20 billion, on which the GP margin was at 27%. EBITDA was at 12%, and we've started coming on to a positive zone in the PAT -- at a PAT level. So we did a positive PAT of about INR 40 crores on this. On the net debt number as well, we are very hopeful of sticking to the guidance where our net debt should stay lower than 0.5x the operating surplus created by the company on annualized basis. So just during these 9 months also, we created a surplus of about INR 12 billion, while the debt, net debt, stood at INR 7.4 billion. So on an annualized basis, we expect the operating surplus to be much higher and net debt to be lower than the current levels by the end of the year, so hence, that guidance should get met. In terms of stock performance, of course, I think 2024 was a good year. Markets are quite choppy for last 2 to 3 months, but on our calendar year '24, from 1st of January till 31st of December, we've almost delivered about 50% sort of returns on the stock. There's been very good support from the foreign institutional investors. And we continue to see support from the domestic investors as well. So by and large, we are sticking to our strategy of mid-income housing, working on a build-to-sell model. We feel that Gurgaon market is achieving -- can achieve much higher scale. And in some manner, we are working on category creation rather than just looking at it as what's the market and being what our share. There is like a full host of category of mid-income homes being created. And with strong supply creation, demand is kind of falling through. One added positive at this stage is that in the Delhi recently we saw BJP government kind of coming. And the market anticipation is that -- so when we talk of Delhi NCR, usually a lot of development has happened either in Gurgaon or in Noida. And this is for almost last 2 decades since -- ever since the foreign direct investment in real estate was opened up back in 2005, Delhi capital region has not seen a lot of new developments, whether it be office spaces or residential spaces. And a lot of that development was happening on the outskirts, but the market anticipation is that, with today BJP government both in center and at the state level, the policy framework should enable development within Delhi, which has a lot of land closer to some of very large middle-income housing areas like Dwarka or Rohini. There's a lot of land [ awaiting it ] which is in Delhi but was not seeing any development, but we are hopeful that policy framework should enable development in those regions. And we'll try and participate in that development within the Delhi city, which looks like a fairly big opportunity to us as of today. So these are the broad comments. Happy to answer to any questions which you may have.

[Operator Instructions] The first question is from the line of Pritesh Sheth from Axis Capital.

I think, congrats, on a great 9 months, meeting most of the guidance across parameters. Just first question, on cash flows, where probably only metric where we -- seems to be lagging a bit. So how has been Q4 till date? I mean 1, 1.5 months already through that. And what's giving you confidence of achieving that INR 6,000 crores guidance? Is it like already we have started getting good chunk of cash flows? Or it's going to be back-ended with the kind of completions which are expected in Q4. So your thoughts on cash flows -- or collections, I would rather say.

So Pritesh, thanks for the question. So Pritesh, it's mix of both the factors. There are quite a few completions which are lined up for this quarter. And collections in general are improving at a steady pace on a quarter-on-quarter basis, so both of these things are keeping us confident to keep the guidance constant. And even at a more fundamental level, all the -- I will say all, but bulk of the sales which we've done on a life-to-date basis are mostly on a construction-linked plan basis, besides very few aberrations. So effectively you see, if sales are happening, collections are bound to happen. And a lot of sales we have done is towards end of some of the previous quarters, like, in the June quarter, it was a lot towards the end of June, likewise in September, while the previous quarter was quite well spread. So we expect collections to improve significantly during this quarter. And that's why we've kept the guidance number constant.

Got it. Just a small follow-up on that. So probably, till now, if I see, monthly run rate was roughly 300-odd crores of collections every month. Has that already started increasing to, let's say, 400 crores, 500 crores a month for Jan? Or probably it will still be back-ended in that sense in the quarter.

So Pritesh, we prefer not to spell out numbers beyond what we've released, but yes, I think for this quarter the collections will be higher, much higher, than the previous one.

Fair enough. Got it. And second, on the diversification bit beyond Gurgaon. Obviously you stated that Gurgaon has a lot of opportunity, but we know Delhi is kind of now opening up as an opportunity [ for us ], so what's the scope for us in terms of development there? Would we be looking at the land pooling policy as a scope of development? Or we will be going for redevelopment of those old colonies, which the new government is probably targeting to give approvals on? Or -- so what's the sense on that?

So see, policy framework, first and foremost, will take shape. So there are a lot of areas where greenfield developments are possible, so there -- Delhi is broken up into newer zones, where there is still a lot of open areas, so it will throw up a lot of opportunities on the greenfield development side. And what we expect or anticipate for the company is like -- in Gurgaon we've picked up 3 markets where we've -- 3 micro markets where we do kind of a sustained supply. Hopefully, in times to come, in Delhi also we'll pick more than 1 kind of micro market, where we'll again try to capture like a significant position so that we stay relevant within that micro market and work over there on a longer span of time. So hopefully, it will add a couple of micro markets for us where we'll create positions and do sustained supply of products.

Sure, sure, sure, got it. And just one small follow-up again there. I mean we haven't seen too much of potential in what Delhi presents as a residential real estate. Maybe 4 or 5 years down the line, do you expect Delhi for you would be as big as what it is, Gurgaon, right now? Or it's probably -- even if it's half of it, you'll be happy with that kind of number from Delhi.

So Pritesh, we've never seen -- or rather no one has seen action ever in Delhi because there was no relevant kind of bylaws through which someone could have developed new land. DDA was always auctioning very few parcels of land which were very expensive, and hence, doing mid-income housing was not very doable. These are smaller parcels of land of 1, 2, 3 acres, 5 acres. And larger parcels were often developed by DDA at an aggressive -- in an aggressive way till a point in time, but somewhere last 1 or 2 decades, DDA has not done a lot of development. A lot of open -- as in private land has not come into development, so to answer your point: It's a little premature to say how large will it become, but definitely this is like a sizable sort of an opportunity. It could be anything. Whether it'd be 0.5x the existing Signature or becomes 1x the existing Signature, it's tough to say at this stage, but yes, this is like something which is meaningful. This will not be like seeding a new market by buying 10, 15, 20 acres of land. It's not that sort of a scenario we're talking about here.

[Operator Instructions] The next question is from the line of Deepak Poddar from Sapphire Capital.

So just wanted to understand. I think in the presentation and in the speech also you mentioned that we aim to deliver these ongoing project in coming 5 to 6 quarters, right?

Yes, that's correct.

So that is about 11 million-odd square feet, so what would be value of these 11 million square feet in rupees crores?

So this will be between INR 7,000 crores to INR 8,000 crores.

So at ASP of INR 7,000 crores to INR 8,000 crores. So what I -- effectively it means that this total value stands -- which we expect to deliver is close to about INR 9,000 crores, right?

It's -- yes, closer to INR 7,000 crore to INR 8,000 crores is what effectively will be the output of this 11 million square foot, closer to INR 8,000-odd crores.

INR 8,000 crores. So out of this INR 8,000 crores you expect, around -- I mean, what, INR 1,800 crores to be realized in this quarter itself. I mean because we are already halfway through the quarter, right? I mean you would have a good visibility. Because you're maintaining your guidance of INR 3,800 crores in this year. INR 2,000 crores, we have already done in 9 months.

So Deepak, see. In terms of completions, we are quite advanced on multiple projects, but often, in terms of revenue recognition, it's quite a binary situation because, at the end of the quarter, you should have completed and collected more than 90% from the customers. So it tends to stay binary. By and large, this kind of completion is happening within the 12 months span. Whether revenue recognition happens before 12 months or a little after 12 months is something we don't ourselves know till the time when the quarter ends and we take stock of it, but our activity level has been there to kind of achieve these kind of completion targets.

Okay. And what sort of revenue recognition we are targeting for next year, FY '26...

FY '26, a little early to comment, but yes, it would be at least 50% -- or 40% to 50% higher than what we'll end up achieving for this year, at least 40% higher, [ if not more ].

At least 40% higher versus FY '25.

Yes.

Yes. And just one last thing, on your -- I mean we are talking about embedded EBITDA margin of 35% on current sales, right?

Yes.

So I mean -- but there is always a huge difference between what you report versus what is embedded, I mean. I mean, in future, will we ever see a convergence of your embedded versus your reported margins? I mean any thought process on that would be helpful. I know, I mean, current -- whatever 9 months we have done, it's done at a lower ASP of INR 7,000-odd. And these embedded, what you're talking about, is at INR 11,000 -- maybe INR 11,000, INR 12,000 per square feet, but ideally, when these presales was -- happened, at that time also, embedded margins was at least 20%, 25%, right? But it doesn't translate to your reported EBITDA margin, yes, so thought would be helpful...

So that's a very good question, Deepak. And I'll also try to answer it in a very fundamental or layman way that, see, our numbers have grown almost in a J-shaped manner over the last 3 to 4 years. What you're seeing in terms of revenue recognition is mostly the size and scale of the company which existed about 3 to 4 years ago. However, a lot of SG&A expenses which you see pertain to the current scale of performance. That's why, while the gross margins are at 27%, 28%, if we were still operating at a -- at those kind of scale in terms of presales today -- let's say if we were doing, hypothetically, let's say, 25%, 30% of the sales which we are currently doing. Probably our SG&A expenses would have been much lower. And you would have seen an EBITDA margin anywhere between 15% to 20%, more closer to 20%, but since -- at revenue recognition level and gross profit level, we are seeing what the company was when these projects were launched 3 to 4 years ago, right? Completion cycle is at least 4 years in a construction business, but your SG&A expenses are basis the current level of operations, so that's why it's kind of a double whammy in terms of the reported numbers that -- for a company which has grown so fast, but courtesy the revenue recognition policy which makes revenue recognition quite back-ended in nature, we -- it will take some more time before you will see like a good surge in the profitability levels. And yes, there will need to be some convergence between the revenue recognized and the presales being done. And I'll add to it even in terms of volume, if you will see, like -- in terms of presales, we've done, we sold close to 7 million square foot. During the 9 months itself, we've completed about 2.7 million. So even if you were to extrapolate it, this 2.7 million number, for the year: We are completing close to 4 million, selling 7 million, so the difference is maybe not as high as it is in value terms. Because value terms, if you'll see, the current sales are at INR 12,000 or close to INR 13,000 a foot. Completion is of INR 7,000 product. So a couple of these things are adding up and compounding this lower number on EBITDA and profitability side which you're seeing. And that's why we have been extremely cautious while giving these implied profitability assumptions in our public sort of documents.

Correct, but the scale-up will continue to happen, right? I mean currently we are looking to deliver 11 million square feet. And the launches [ and ] forthcoming project is close to about 35 million square feet, so we will continue to -- I mean we will continue to scale up, right, our business, and that is the right thing to do. So ideally this SG&A expense will keep coming, right, I mean, so your convergence between your reported and EBITDA (sic) [ embedded ] will take a lot of time, ideally...

See. Convergence is happening -- or will happen, but yes, we feel it's good if convergence doesn't happen too fast because it basically represents that a lot of underlying growth is taking place in the company while completion happens in its own way, but the other part is that, see, pricing also moved quite swiftly in the Gurgaon market over the last 1 or 2 years, which is kind of stabilizing. So even in value terms, we don't foresee in last -- next couple of years prices to double from the current level. Yes, they will grow because there's still a lot of demand for the product, but we kept everything -- we kind of disclose everything, whether it be presales, implied profitability, to actually revenue recognition. And that's why it's important to read in between the lines while taking calls of investment.

Understood. And when we do expect for this, I mean, INR 10,000, INR 11,000 realization to start hitting. I mean currently we are at about -- whatever revenue recognition is happening is for INR 7,000 kind of a realization, right? So how many quarters we are away, I mean, to start seeing this INR 10,000, INR 11,000 kind of realization...

See. Our immediate target is to complete the 11 million square foot portfolio, okay? So that will happen over the next 5 to 6 quarters. Once that has happened -- see, this year, we launched a couple of large township projects, whether it be Daxin. They were -- there's certain plotted development within that. Or within City of Colours, there were certain -- there's quite a bit of plotted areas which has been sold. So profitability level on these products is good. And they take lesser time to complete. So I think, once we've completed this 11 million square foot, around -- immediately thereafter, you will see completion of some of these plotted developments taking place, which will have higher profitability.

These will -- and these 11,000 -- 11 million square foot, you already mentioned it's at INR 7,000 only, I mean, next 4, 5 quarters, right?

No. It will be, on an average, somewhat higher, but yes, this is -- this still comprises of projects which we sold under the affordable housing policy or where we would have sold mid-income homes in Sohna or in peripheral markets of Gurgaon, so yes, I think this will be a mix of all of these products.

Understood. And just one final question, I mean, for the next year then, FY '26. So what sort of reported EBITDA margin range one should look at? I mean after considering all this SG&A expense coming through.

We can compute that in separately. You can write to us. We'll respond to that.

Okay, okay, fair enough. I think that will be it from my side.

[Operator Instructions] We'll take the next question from the line of Adhidev Chattopadhyay from ICICI Securities.

So if you just -- Rajat, if you can just tell us, on the launch plans for the next 2 or 3 quarters, how you're looking to phase out and especially in Sohna and Sector 71; and if any other new markets, micro markets in Gurgaon are on the anvil. And also, what is the pending cumulative GDV of the entire projects we have on hand currently? Yes, that is the first question.

Sure, Adhidev. So see. The 2 larger launches which will be coming up will be 1 in 37D. There's about 14 acres of land, about 3 million-plus square foot of area which will come up. That's a fairly large project which we'll launch. Even in Sector 71, Adhidev, we'll be doing a Phase 2 of Titanium. So there was always like an unlaunched portion. There are new -- almost like 5 new towers which are expected to be launched over there. So about 1.6 million, 1.7 million square foot of areas getting launched in Sector 71. And even in Sohna market, we've been gradually adding up supply of the independent floors which we've done over the last 3 to 4 months. So in all these 3 markets, there is sustained supply. In addition to that, there are some more smaller sort of areas which are kind of getting launched, but most of our supply, over the next 6 to 9 months or at least 6 months, you'll see in some of these key micro markets which are performing as desired.

Sure, sure. And second part, on the pending GDV of our -- whatever land we have, right, any ballpark number? Like is it north of 50,000 crores or something? Any number you have in mind?

So the unlaunched portion of our land resource is closer to 21.5 million square foot, which in our view should fetch a GDV of close to INR 350 billion.

Okay. This is apart from what we have done, okay. So -- and just then on this follow-up on our land bank replenishment, right? And obviously you talk about the possibility of expanding into the Delhi market as well. So in terms of land bank addition, what is the sort of GDV additions you will be looking at annually from here on now that we are crossing almost 10,000 crores this year? So -- and also the annual sort of land spend also you are looking to do. If you could just help us understand that part, yes.

So if you look at the last 9 months trend only Adhidev. So out of the surplus, about half that surplus went into land acquisition. So about 12 billion, we created a surplus. About 47% of that was deployed towards land acquisition. If you look at the 9-month, presale in volume terms was closer to 7 million square foot, but if you look at the land aggregation over the 10-month span, including the month of January -- because, see, this can't be done on a monthly basis. We've added like closer to 3 million in 37D, about 2.7 million in 71, so about 5.7 million of replenishment has also happened. So we stay put on that, our target, that we keep replenishing our land as we are selling it in Gurgaon and peripheral areas. Delhi is an -- absolutely like a new plan we -- I would say no one had anything in Delhi, but yes, since we are local in this market, we'll be quick to add on to the opportunity which the market will throw for real estate developers.

Okay, so it is safe to say, excluding Delhi, right, 1,500 crores to 2,000 crores would suffice for us in terms of the land bank spend for the next couple of years on an annual basis. Is it a number? Or it could go a little higher, depending on our growth aspirations.

No for Gurgaon. We don't need to go higher for Gurgaon. I think up to 1,500 crores is like a fairly good sort of target.

Sure, sure, sure. And the final question, on how the health of the Gurgaon market is, right. Is there any segment where you're seeing things are doing better than the other in terms of the demand? It's just a general question, I know, but any segment, any ticket size, any pricing, any micro market which is doing, faring better where you see demand is more buoyant as compared to the other ones? Yes.

So Adhidev, I'll prefer to speak for -- on our behalf. So the segments we are operating wherein mid-income housing is at the core of the strategy and we've done some bit of experimentation. You could say we've done products which are more towards the premium side. We've also done slightly larger-sized products, whether it be Daxin or City of Colours. And we've seen fairly good response on both of these sort of product expansions which we've done, but we are seeing demand/consumption to be fairly steady. If you're launching products at rightful sort of price points, it's kind of staying steady. And we prefer to just kind of keep doing it. In general, we feel the market is doing reasonable. The price movement upwards has slowed down and transaction volumes are doing good.

We'll take the next question from the line of Abhishek Khanna from Kotak Securities.

Rajat, I just wanted to check. For the Manesar launch that you did in the current quarter, what was the contribution to your sales, 1.5 million square feet that you launched?

I can get you the exact number, but it was closer to 700 cores, 800-odd crores was the kind of presales we recorded out of the Manesar project. [indiscernible] exact number, but it was meaningful sales which has happened.

Sure. I just want to understand: Was this plotted developments, industrial plots? What exactly was this in the form of?

In the form of, as in...

Are these low-rise apartments that you sold? Or were these plots that you sold, these 700 crores, 800 crores that you're talking of in Manesar?

So Abhishek, see. We've done 2 large township launches during this 9-month span. So in the Sohna market, the project is called Daxin, wherein we've launched 2 separate products. One is low-rise independent floors by the name of Daxin Vistas. And second is industrial plots just adjoining to it. So it's a fairly large, very well sort of planned development [ just ] on the periphery of Gurgaon. So the housing in Daxin is something which we are developing and selling, whereas industrial plots are just being sold as plots. These are developed plots, with basic infrastructure being laid out by the company. And the development is expected to be done by the consumer. The second project which we launched in Manesar is called City of Colours, again fairly large, about 129 acres. In that market, we've just sold it as plots, whether they be for residential use or industrial use. We are not -- we're going to do only basic infrastructure development and sell it.

Got it. Just one more clarification on this, Manesar. While you say the land piece is about 150 acres, the launch potential or the development potential, there is about 2 million square feet. That seems fairly low on FSI, less than even half, if I think, right? Is that -- is there something that I'm calculating wrong? Or is that how it is?

Because we are just selling it as plots, Abhishek. We are not developing it. Hence, that's the...

The FSI is even lower than half of so...

That's plotted land potential. That's without any development taking place. And within that project, as we speak, during the 9 months period, our sale was about 920-odd crores from just sale of plots. We are not going to develop any area on top of these plots, and that's why the FSI potential is low from a company perspective.

Got it, got it, but just for clarification: Is the FSI potential on -- not one is to one, as in [ 43,500 in -- to one ]? Is that not how it should be? Or is it even...

[ No. You layout ] basic infrastructure. So on a per-acre basis, depending on efficiency of the plot, you'll not get more than, let's say, 3,100 to 3,200-odd square yards. [ So out of our 4,840 ] square yards per acre, you'll probably be able to sell plots which will be in that range of 3,000 to 3,200 yards. The rest of the area will go in circulation and services.

Got it. That is helpful. And the second question that I had was Sohna. Do you have the approvals for launching the [ fourth ] floor, or are we still awaiting clarity on that front?

No, no. The policy is absolutely clear. And we have those approvals in place.

Got it. Have you also started selling those [ fourth ] floors in the launch area that we have?

Absolutely, yes.

Okay, perfect. Then the last one that I had: For all the approvals that you spoke of in the next 6 to 9 months, which includes 37 and 71, do you already have approvals for any of them? Are these extensions of already approved projects, or would you require RERA approvals for all of them separately?

So RERA approvals are, of course, required, but we are at fairly advanced stages of approvals. So like, both of these projects in Gurgaon context, they're licensed projects at very advantages of planning and approvals. So given the stage we are, we are very confident that these launches will happen in a short, like, 1 or 2 quarters. We'll be able to launch these projects.

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

Sir, while you've already touched upon this to a certain extent, my question to you is that, with the change in government, what impact do you anticipate on your operations and the overall ease of doing business in the real estate sector? And given the evolving policy landscape, like, how would you expand into the Delhi geography? And what key policy or regulatory changes would you request from the government to support your growth in this new geography?

So [ Ayushi ], thanks for the question. So see. As far as the Gurgaon market is concerned, there's nothing new or nothing different which we anticipate. The policy framework is quite clear in terms of kinds of development which can take place in the Gurgaon market, so whatever land we currently own, we have a plan in place on how to develop it or to put it into production. What has changed now, land -- since land is a state subject, every state has its own set of bylaws, as far as the development of land-related policies are concerned. And Delhi being a separate state, but -- the situation is that in Delhi, for any new development-related policies to come into force, there's a role of both central government as well as the state government. Now the opportunity here is that, since we have the same party ruling the center as well as the state, the anticipation of the market is that Delhi should see rightful regulatory changes in the policy framework so that real estate development becomes more feasible or doable. And that's where the opportunity lies, so once that takes shape -- see Delhi is such a popular state. And if you've visited or been in Delhi, there have been very few newer developments which have happened within Delhi. So there is availability of land. There's a lot of urban consumer who's kind of staying within Delhi. One needs to have the rightful framework to develop a product. So that link is missing, which we are -- all are hoping that will start taking shape.

So sir, there is enough opportunity for everyone even with the competition that you will probably see in Delhi being the capital.

We do expect competition in the market.

Okay. And how do we plan on dealing with that?

So see, [ Ayushi ], we are sitting in this market. We have a lot of competence and capability right from the start of identifying land till the time of handing over keys to our customer, so every key step, we are very well poised. We have probably the best of the teams to kind of handle that situation. We have today almost, close to 1,200-odd people working with Signature. So local -- and real estate somewhere does -- is kind of a localized business, understanding customer preferences, understanding customer needs, ability to create supply to address those needs. A lot of that understanding is very localized. And since we have good capabilities, we are fairly confident to work on this opportunity. So it's very early to kind of anticipate a lot of competition and start fearing it. It's almost -- the other way around, that there is such a big opportunity. We feel that, if a lot of people participate, there's work for quite a few players to work and work on that opportunity.

Ladies and gentlemen, as there are no further questions, we now conclude the Q&A session. Thank you, members of the management. On behalf of ICICI Securities, that concludes this conference. We thank you for joining us, and you may now disconnect your lines. Thank you.

Thank you.