ABREL — earnings call

The transcript as filed. Every paragraph is addressable: its link names the page and the position it sits at in the call.

Prepared remarks

PAPER · MR. K. T. JITHENDRAN - CEO, BIRLA ESTATES

MR. K.

T.

JITHENDRAN - CEO, BIRLA ESTATES MR. SNEHAL SHAH - CFO

BIPLAB · DEBBARMA

DEBBARMA -

ANTIQUE · STOCKBROKING

STOCKBROKING

LIMITED · 0, CENTURYTEXTILESAND

0, CENTURYTEXTILESAND

INDUSTRIES LIMITED · ANTIQUE

CENTURY TEXTILES AND

ANTIQUE · STOCKBROKING

Century Textiles and Industries Ltd October 27, 2022

Moderator · Conference Operator

Good day, ladies and gentlemen, and welcome to Q2 FY’23 Earnings Conference Call of Century Textiles and Industries hosted by Antique Stockbroking Limited.

As a reminder, all participant lines will be in the listen-only mode and there will be an opportunity for you to ask questions after the presentation concludes.

Should you need assistance during the conference call, please signal an operator by pressing “*” then “0” on your touch tone phone.

Please note that this conference is being recorded I now hand the conference over to Mr. Biplab Debbarma, from Antique Stockbroking Limited.

Thank you and over to you, sir.

BIPLAB · DEBBARMA

Thank you, Mitchel.

Hello everyone, and welcome to the post results conference call to discuss 2Q FY ‘23 earnings of Century Textiles and Industries Limited.

Today we have with us, the management of Century Textiles and Industry represented by Mr. R.

K.

Dalmia, Managing Director; Mr. Vijay Kaul, CEO, Century Pulp & Paper; Mr. K.

T.

Jithendran, CEO, Birla Estates; and Mr. Snehal Shah, CFO.

Without further ado, let me hand the call to Mr. Dalmia over to you, sir.

Snehal Shah

Biplab, I will give the opening remarks.

This is Snehal here.

So, very good afternoon to everyone joining us today and first of all, wish you all a very happy Diwali.

It is

Questions and answers

Moderator · Conference Operator

Thank you very much.

We will now begin the question-and-answer session.

The first question is from the line of Nishith Shah from Aequitas Investment Consultancy Pvt.

Ltd. Please go ahead.

Nishith Shah

Good evening, sir, my question relates to paper division.

So, first I would like to understand more on the imports part.

So, you said that imports are coming in and that is creating pressure in terms of price.

So, what is the kind of pricing differential of imported paper products and domestic prices?

Vijay Kaul

So, regarding import of paper and import of board products, mostly about the board products not too much on the paper front because there are certain varieties which are still not produced in India, that is what has been the basic import.

And there have been one consignment which is only an import for writing and printing but that was done by a particular trader for a different purpose altogether.

So, thereafter there is no import from that.

Major imports have been on the you know, packing sides, board sides and there the difference in the prices is just about four to five rupees lower than our Indian price.

Nishith Shah

And Sir in terms of volumes, do we see imports now increasing?

Vijay Kaul

Yes, you see the earlier there was an anti dumping duty on certain products.

So, you couldn't import.

Now the anti-dumping duty has been removed, but the people have to get qualified under a scheme called BIS where they have to declare that what is the turnover what products we are making the company as a regular or that they are not in any run of the mill companies just rather important to this country.

So, they have to mention all the figures and then only they can import for they're allowed to import only after they get the clearance.

So, imports will come in because that was because the European market and the US market as on today is going through a recession.

So, there will not be much of a demand in both segments.

So, instead of supplying to the market has gone down to some extent.

So, they will definitely there will be pressure on India to get these kinds of products from the market.

But as the dollar is strengthening and rupee going down, maybe that may also have a lot of imports coming into the country.

So, we have to watch now, starting from November, we have to keep a close watch on this kind of things.

Nishith Shah

And Sir I'm looking at this NSR movement and our NSR for export is significantly higher than domestic.

Do you see this trend continuing or now because of pressure?

Vijay Kaul

Now, the NSR of exports will also come to our domestic market because earlier because of the higher freight costs, that's why the NSR was going high but no as the freight costs are coming down, it will be reasonable, equalent to domestic.

Nishith Shah

How much percentage of our volumes do we export or not?

Vijay Kaul

Overall terms not more than 10 to 15%

Nishith Shah

Okay, Thank you.

And lastly, I want to understand our input cost trajectory like are we saying our input cost now trending downwards?

Vijay Kaul

No not at all.

Like the wood cost which is purely Indian, it is going up when the you know, bagasse we are also using for our making paper and paper products, for the bagasse cost is going up.

So, the coal cost is already not come down from the figure of 14,000 - 15,000 per ton so it is still on the higher side and there is slight correction t}, CENTURYTEXTILESAND INDUSTR,IES LIMITED Century Textiles and Industries Ltd October 27, 2022 in terms of pulp prices, It is $25-$30 correction in $1,000 club there is $30 correction but that is clarified with weakening of the rupee

Nishith Shah

This is soft wood pulp?

Vijay Kaul

Both hardwood and softwood.

Nishith Shah

So, what is the reason of Indian wood prices going up?

Vijay Kaul

Because they feel that everybody is increasing the prices so we should also increase the prices.

So, today there's a trend in India that everybody should increase their prices to whatever extent they can and giving various reasons for that, you know, our coal is cheaper, my transportation is cheaper, my various other you know, things are costlier.

So, because of that they are increasing the prices.

Nishith Shah

And so competing industries will be

Snehal Shah

Hello, can you provide some scope for others to ask question, we can come back to you later on.

Biplab please control the number of questions people ask.

Moderator · Conference Operator

The next question is from the line of Aditya Khairnar from Metaverse Equity Fund.

Please go ahead.

Aditya Khairnar

First of all, congratulations for your stellar performance.

So, basically my question is in textile business as the pat rises by 118% as compared to previous quarters and we are seeing declining in turnover of textile business.

So, what is your take on this?

Snehal Shah

The declines if you see, there is no decline in the turnover on a year-on-year basis on the apparel fabrics, the basic decline is actually in the home textile business and a little bit on the yarn business.

So, the apparel business which is mainly focused on a domestic is doing well it is growing, particularly on the realization front to cover up the input prices increase etc. But what is impacted us on the turnover side is the home textile business, which is actually slowed down which is mainly dependent on export and export to developed countries and their economic condition is not so good, there is a slowdown there is risk of inflation, etc. So, there is that is where we have actually lost our turnover in the textile business.

Moderator · Conference Operator

Thank you.

The next question is from the line of Viraj Parekh from Carnelian Asset Management.

Please go ahead.

Viraj Parekh

Hi, thanks for the opportunity.

Congratulations and great set of numbers.

One question from my side.

Just to follow up on the first participant question.

I mean, you're talking about the input costs, not softening?

Snehal Shah

On pulp and paper, right.

Viraj Parekh

Yes, yes.

So, this I mean, NSR has you know, moved really well from quarter four to INR 67 per kg to quarter to INR 84 per kg for a mainly talking from the domestic point of view.

So, on the drawing board, I mean, what are the price hikes you have taken in in this year, from April till date and any other price hikes you've seen future coming in give me some idea?

Vijay Kaul

The price whatever cost to increase has been there, we have been able to pass on around 80% to 85% of that to the consumer and balance whatever we have achieved certain cost, you know, cost cutting measures which we are done in order to improve our efficiencies in the operations.

Going forward.

It looks a little difficult now to further increase the prices.

But yes, we have a lot of scope in improving operational efficiencies and cutting down various costs and all that.

Viraj Parekh

Okay, thank you.

Just one clarification.

Can you give me a number as a percentage of how much approximate price rise, we have taken from April to as on date? t}, CENTURYTEXTILESAND INDUSTR,IES LIMITED Century Textiles and Industries Ltd October 27, 2022

Vijay Kaul

It was about from April to September; it was almost about 15% around.

Viraj Parekh

Okay, so when if I’m not wrong the last price rise was around July August is that correct?

Snehal Shah

From 68,000 we have gone to 85,000 NSR.

So, we can calculate the percentage is roughly what is it?

25%.

Viraj Parekh

I got that; I was asking when was the last price right date taken?

Was it around July?

August?

When was the last price we've taken?

Snehal Shah

I think last was in August, but I probably it was on board so I don't know when was the price rise, there are three segments so I exactly Mr. Kaul would be knowing.

When was the last price rise, you're taking in each of the segments?

Vijay Kaul

We took in in the month of September itself from first of September, right?

We do correction in paper and tissue.

We didn't do correction in board only in the month of September.

That's on first of September.

Moderator · Conference Operator

The next question is from the line of Alpesh Thacker from Antique Stock Broking Limited.

Please go ahead.

Alpesh Thacker

Thank you for taking my questions and congratulations for a very good set of numbers.

So, my first question is on the real estate business.

Actually, you know, in your opening remarks, it was that you know, there was this releasing thing which happened in the leasing properties.

So, just wanted to know in which tower this releasing happen, and you also mentioned that there was this you know, downward revision of the rate at which it was done.

So, what was the rate earlier and what is the new rate at which the releasing happened?

KT Jithendran

Thank you Alpesh for your question.

See, basically, because of the excess supply and re-organization of the commercial market in Worli, there has been a lot of rationalization happening.

So, if Hindalco had taken about one and a half floors, which is sort of five, six years back, and they're after all their escalations, the current rent has gone up to about 220 210.

Which was clearly much about the prevailing market rate.

So, we rationalized it because they were getting much cheaper options in one international etc. So, we have, you know, recalibrated it to about INR 175, but it will go keep going up 5% every year.

So, that's the rationalization we have.

Alpesh Thacker

Okay, and so in terms of like, percentage, how much would be their leasing costs, like out of…

KT Jithendran

It’s about 50 or so over 50,000 square feet.

Okay.

Alpesh Thacker

And second question is also again, on the real estate part, especially on the residential part.

So, did we take any price hike in our Century Mills project.

KT Jithendran

Birla Niyaara, we have taken about 7.5% increase in prices.

We did it in some time in September.

Moderator · Conference Operator

Thank you.

The next question is from the line of Ajit from Nirzar securities.

Please go ahead.

Ajit

So, I have one question on real estate division and one on paper.

The one real estate is the difference in EBIT at standalone and at consolidated level is predominantly due to losses in the real estate division at consolidated levels.

So, could you please explain more on this as to from where these losses are coming and elaborate more about accounting of the same and how long these losses will be there?

Snehal Shah

Okay.

As far as the numbers in the standalone goes, the two commercial buildings are actually on the books of the parent company, that is Birla Centurion and Birla Aurora as well as Century Bhavan.

So, what you see in the standalone is basically the rental t}, CENTURYTEXTILESAND INDUSTR,IES LIMITED Century Textiles and Industries Ltd October 27, 2022 income minus the manage what you call it, FMS expenses manage maintenance expenses, that is what is reflected in the standalone numbers, whereas the subsidiary is spending on the corporate overheads.

So, those are all losses because maybe basically we cannot recognize EBITDA of our projects unless and until they are completed.

So, till that time, which probably would be next year, we will be showing losses, which are mainly corporate expenses, like salaries and little bit of marketing, etc. that we incur.

Does that help?

Ajit

Yes.

And the next question is on our paper business, as we have seen the paper -- the EBIT margins for paper business has increased from 12% to 17% at console levels.

So, how sustainable is this margin and what is your outlook for the margin for next two, three quarters or going forward.

Snehal Shah

So, basically, what you're seeing is right, actually in this quarter, the margins are about 20%.

And see even if the -- basically the realizations have gone up in terms in line with the increase in input prices.

And as Mr. Kaul said that, you know, we could only pass 85% of those rises to the market.

So, technically we are actually lost a little bit on that, where the margins have improved is in the last six months, we have done a lot of efficiencies, which is actually reducing a lot of our cost and I said in my speech also that this is work in progress.

So, we are expecting a lot of savings going forward in the second half as well as in the next year.

So, most likely, I can't give you exact guidance as to where we will reach but our target is to match the competitors that we have.

Ajit

Okay and could you please explain a little bit about which costs you know; we have got efficiency.

Snehal Shah

So, major cost is in our chemicals that we use, in the packaging that we use, anything you want to add Mr. Kaul?

Vijay Kaul

Yes.

Other than chemicals and I think we've also improved a little bit on our capacity as well as chemicals and packaging and also the, what you call the consumption ratio of different.

Snehal Shah

I think on the lime sludge.

Vijay Kaul

Yes, on that chemical and you know, different chemical which we are using on that also on the ratio front also.

Suppose we are using one kg we are now using 0.75 kg.

So, majorly is on chemical front, on the packaging front,

Ajit

Can you just quantify the percentage of, you know, chemical costs as percentage of sales before and now and the same for packaging?

Vijay Kaul

I don’t think that we should quantify right now, because the work is still going on.

So, it is very difficult to quantify at this stage.

Moderator · Conference Operator

Thank you.

The next question is from the line of Ashish Kumar from Infinity Alternatives.

Please go ahead.

Ashish Kumar

Thank you.

So, a couple of questions, which I had one was in terms of the revenue booking on the real estate side.

When do you expect to start booking on the Worli project revenues and our P&L?

And also, in terms of cash flows?

When do you expect the cash flows to start becoming positive on that project?

KT Jithendran

Ashish, thanks for your question.

So, as far as you know, revenue recognition is concerned, this will happen only when the project or the phase is completed, as per the policy of, completion method that we are following.

So, for projects like Birla Vanyaa in Kalyan, Birla Alokya in Bangalore, and one phase of the Birla Navyaa in NCR, we expect the revenues to be recognized and kicking in from next year onwards, because you're expected to complete certain phases of each of these projects.

As far as Birla Niyaara is concerned, we just started the construction and when we first launched the project in Feb, and we started the construction in June. t}, CENTURYTEXTILESAND INDUSTR,IES LIMITED Century Textiles and Industries Ltd October 27, 2022 So, we expect to take another five, five and a half years for us to actually completion of tower A and the revenue recognition will kick in only then.

Ashish Kumar

Okay.

And in terms of the cash flows, when do we expect the Niyaara which is the largest project?

When do we expect it to become?

KT Jithendran

Cash flow we expect it to do because our sales velocity has been at a much faster pace than what is expected.

So, in a couple of years of, on phase one, we should be cash positive on tower one by two and a half years.

As of now, we already collected about more than INR 300 crore there.

In Birla Niyaara, we have collected almost INR 340 crore.

So, yes, so we are pretty sitting pretty comfortable there.

And I expect the project to become cash neutral at a much faster pace.

We've done about close to INR 1,800 crore of sales now.

And collected 20% of that.

Ashish Kumar

So, in terms of the peak debt maybe would be INR 2000 crore peak debt for us before it starts coming down.

Snehal Shah

No, not really.

Ashish, basically I'll give you a bigger picture.

Essentially, the real estate business with its existing projects, that which is it has launched, you know, whatever, whichever projects that it has launched, is expected to be cashflow positive in FY ‘24 itself.

Okay, but then, of course, they were they're not gonna sit on the existing projects, they will be still doing more getting in more projects, so on the new deals, etc, they might have to spend about which I mean, if you consider something like INR 1000 crore every year, that is what probably you can consider that they will be spending.

So, I am looking at a total kind of debt, position would be somewhere close to INR 2000 crore in FY ’24, max peak debt.

Ashish Kumar

That's very helpful.

So, there was one other question which I had, which is now that your paper business also being very well, as well as the real estate business also seems to have now got it's gotten gone off, but the business analysts for the two businesses are completely different.

So, any thought process in terms of demerging the two businesses because otherwise, if you want to do a pure pro real estate business and then a large portion of the value comes from the paper business or vice versa?

Snehal Shah

So, this question comes many every almost every earnings call, and the answer is very simple for that.

We will, right now, you know, you asked the question about peak debt, whereas to keep up our debt, at minimal level, we are depended on the cash flows of the pulp and paper business where the capex is not as much as what we require in the real estate business.

So, unless we have demonstrated and you know, executed a few projects, and delivered etc. And we feel comfortable that, the real estate business can stand on its own, that probably would be the time when we will start thinking about it.

Besides, I mean, I'm not saying that it's not at the back of our mind, but it is not an immediate priority for us at the moment.

Ashish Kumar

And if I can ask maybe one more question the paper business, if we look at some of the leaders in that some of your peer group, right, they are operating at the June numbers which are out for some of them there were at 20 - 22 rupees a kg as EBITDA of 20,000 or 22,000 rupees a ton.

Whereas this quarter we still reach 16,000.

Do you think that in the next three to four quarters, we can start hitting the number which is comparable to the peers and I'm taking industry because industry I understand can be quite volatile.

Snehal Shah

So, Ashish I mean, before Mr. Kaul answers when you compare ourselves with competitors, it depends on which competitor, you are comparing it to us.

And then based on that you have to understand what is their product mix?

And what is our product mix?

What is the raw material they use?

And what is the raw material we use?

So, based on that if you do a little bit of comparison, then probably you will have a better idea of what should be our margin as compared to their markets, because the capital employed is also to be considered when you consider all the all the factors, you just can't look at the margins. t}, CENTURYTEXTILESAND INDUSTR,IES LIMITED Century Textiles and Industries Ltd October 27, 2022

Ashish Kumar

Right, right.

Right.

I was talking about the two large listed players independent paper guys.

And I agree with you, one has a almost 100% integration into pulp and that is an 85% - 90% integration.

Snehal Shah

Yes.

So, we are, as I said mentioned earlier, we are also on the trajectory of doing some efficiencies, etc. As we said, we are work in progress, probably a better time for you to compare us with them.

Will be probably somewhere next year.

Ashish Kumar

Okay, that sounds good.

And wish you all the best.

Thank you.

Moderator · Conference Operator

Thank you.

The next question is from the line of Harsh Pathak from B&K Securities, please go ahead.

Harsh Pathak

Yes, hi, sir.

Good evening.

So, first of all, my first question is on Birla Nayva Gurugram.

So, we see that the sales are encouraging since 67%, of phase two have been sold in the second quarter itself.

And now from the presentation, it seems that there are only 60 units remaining to be sold between phase one and two.

But still, there is half of the inventory yet to be launched.

So, when can we expect more launches there?

And also, other launch pipeline in other markets?

If you can please discuss.

KT Jithendran

I didn't catch the last part of your question.

But we'll come to that as for the first part of your question on Birla Navya, you are right first phase is 100% sold out.

Second phase is 67%, sold out, between the first phase and second phase, there has been a huge increase in prices, we started first phase with about 10,500, finished at 12,000.

Now we are selling at 16,000 rupees per square foot phase two.

So, there has been a huge upside there.

Phase three, which is largely about you know, roughly as you mentioned about half of the inventory, which is block A, which first part of that will start, we are planning to launch sometime in February, which is Q4. By that time, hopefully we would have done bulk with the sales of you know, balanced inventory on Phase Two also.

So, that's the position there.

I didn't catch the last part of the question.

Harsh Pathak

Sorry, yes, I was asking on the launch pipeline in other micro markets as well in Kalyan and second phase of Niyaara since 50% - 60% is already sold out now and also Bangalore to market your sign some days there.

So, you can please discuss that too.

KT Jithendran

Sure.

So, we have two new projects in Bangalore.

One is 52-acre parcel near the airport and another now 10.5 acres or 10.25 acres in Rajarajeshwari Nagar.

Both these launches are slated to be in the next financial year.

We just acquired these parcels one in April and one last month.

So, we are working on it.

But hopefully by Q2, Q3 of next year, we should be launching it as concerned a Birla Niyaara the second phase, which is tower B that we are expecting in December of next year.

And Navya as I mentioned, which is in Gurugram.

We'll be launching phase three in February of this financial year, that is Q4 and maybe part of it in April May June, the rest of it.

As far as Kalyan is concerned all phases have been launched.

And now we are you know nearing completion of the project.

And similarly, the other projects in Bangalore and all phases are launched.

Harsh Pathak

Right.

So, first of all, in phase three, what is the size that we are expecting to launch in Gurugram?

KT Jithendran

May be slightly similar sizes of slightly small, I think more or less similar sizes of what we have launched now.

There will not be much changes in size because the density is more or less the same.

Gurugram works on the density formula, so the density remains the same.

So, the sizes would be the same.

I mean, I'm assuming you're asking the size of the apartments.

Harsh Pathak

Not the size, I mean the size of launch in terms of… t}, CENTURYTEXTILESAND INDUSTR,IES LIMITED Century Textiles and Industries Ltd October 27, 2022

KT Jithendran

That's what as I mentioned, what is We are launched till now, it is similar size close to 1000 crore

Harsh Pathak

Okay sure and any reasons why we are keeping the Niyaara phase two launch in December because I think significant inventory is already sold out in the first hour.

So, any reasons that

KT Jithendran

I mean primarily because we wanted to do take the learnings of Tower One incorporate into tower two make some changes and flexibilities amendments and design and finally the you know; the entire approval cycle takes its own time.

Bombay takes good 12 to 15 months so, we are making some amendments etc. So, the right size and all, approvals can be because usually, we launched 100% approvals so that within environment clearance and all is going to take its time so that's why we're planning to bring in -- we'll try to bring it if approval gets faster earlier, but looks likely that will come up by December.

Harsh Pathak

In the Navya project that you indicated, that the price increases that you're taken from 10,000 to 12,000, now it's 16,000 rupees per square foot.

So, what is I mean this is like very, very encouraging but what is leading to this price increase is it better demand or you know very less launch is happening in the micro markets.

So, what is leading to this trend sir

KT Jithendran

Yes, a couple of reasons one is that land parcels are very scarce there's hardly any land parcels left in Gurugram and especially in the location which is another golf course extension market we are talking about, number two as you mentioned the number of launches has been extremely rare the number of players have reduced huge amount of consolidation has happened.

So, the strong stable, reliable players are very few.

So, therefore, there has been a lesser supply and the demand remains strong I gather that must be the reasons.

Harsh Pathak

And in terms of revenue potential in this Gurugram project as compared to the previous quarter presentation, there is a 5% increase in the revenue potential and same in Niyaara there is a 12% increase.

So, is this mainly because of the price increases that we have?

KT Jithendran

Absolutely right, absolutely right.

Harsh Pathak

Okay, so just last question, if I may squeeze in, in the leasing business, what is the average realization, per square foot.

KT Jithendran

So, at Birla Aurora, we are currently the average leasing is about INR 200 bucks, and in the Birla Centurion is INR 168 bucks.

Harsh Pathak

Okay, and on a blended basis,

KT Jithendran

Take roughly an average of this maybe about 170 or 180 or so.

Moderator · Conference Operator

Thank you.

The next question is from the line of Hitesh Doshi an individual investor.

Hitesh Doshi

Yes, good afternoon to all and congratulation on very good numbers.

So, just carry on from the last participant.

So, what kind of size we launch over next, say up to next December like what kind of project size, like you know, you said Gurugram will be INR 1,000 crore.

So, approximately what kind of inventory we will launch including the Worli part by December which you said.

KT Jithendran

Yes, thank you Hitesh.

Yes.

So, as I mentioned INR 1,000 crore will happen sometime in between February June, partly in Feb and partly in June.

So, as far as the Navya is concerned, and Niyaara as I mentioned, this is another INR 3,000 crore of launch and other roughly INR 3,000 crore in December probably a little earlier.

We'll have to figure that out.

There will be new first phase launches in Bangalore to two projects.

Both will be roughly about INR 500 crore each, INR 1,000 plus 3,000, 4000.

And hopefully we'll have many more new projects by that time and a few more t}, CENTURYTEXTILESAND INDUSTR,IES LIMITED Century Textiles and Industries Ltd October 27, 2022 launches must happen.

And of course, the sustained sales from the earlier inventory unsold inventories like Kalyan phase two of the other unsold inventories of the launch project.

All of that should be happening.

Snehal Shah

So, is your question related to the size of the launch or the booking value that we will do in the next year.

Hitesh Doshi

I'm just asking the size and I think it is INR 6,000 to 7,000 Crore kind of projects we can launch by next December but that is what I'm getting.

Instead of just one question on paper, then are we expecting any price hikes from here or price reduction from here on because I'm reading new paper prices are going down internationally.

So, just about the pricing part nothing about margins or anything.

Vijay Kaul

No prices?

Definitely, Doshi ji.

The prices will be there will be some correction on prices.

But what an extent we don't know as on today, we'll have to wait till 15th of November before we do any corrections.

Hitesh Doshi

So, that means we may have little lower margins or we can't have…

Vijay Kaul

Not necessarily.

Pricing correction does not mean that the margins will be lower.

Moderator · Conference Operator

Thank you.

The next question is from the line of Vishal Ghai from Abercrombie and Kent.

Please go ahead.

Vishal Ghai

I have only one question.

And this is regarding the frivolous advertisement, which appeared in the newspapers.

Now since I'm an individual shareholder, it's not clear to me whether you will be developing only 14 acres of land in Worli or would you be developing 30 acres of land?

KT Jithendran

So, thank you, Vishal, for the question.

So, we have about, you know, undisputed, 30 acres of land, 14 Acres is on the parcel, where we are currently developing.

And adjacent to it.

There's another parcel which we own, which has about 10 acres of that.

And in these 14 acres also there is a commercial parcel, etc, with another six acres.

So, overall, we'll be developing about 30 acres of land.

Moderator · Conference Operator

Thank you.

The next question is from the line of Abhinav Bhandari from Soham Asset Managers.

Please go ahead.

Abhinav Bhandari

Yes, thanks for the opportunity.

Or the one question on the business development side, while you highlighted the launch pipeline for the next 15 months.

How's the pipeline on the business development side?

KT Jithendran

Thanks, every now.

So, as I mentioned, just before, we have signed two projects in Bangalore, new projects, and we have signed several term sheets in Mumbai, NCR Bengaluru, and a couple of them in Pune.

Also, we are hoping that we'll be able to close several more deals before the end of this financial year.

I think we are pretty excited with the opportunities available.

And we're also quite excited with the kinds of performances given and the kind of brand reception we're getting in the market.

So, hopefully, we'll have several more projects before the end of this financial year.

Abhinav Bhandari

Sure, sure. for that.

The second one was for in one of your earlier statements.

I think you mentioned Kalyan all the phases have been launched.

We were under the impression that we land parcel there is much larger than what we've launched so far.

So, how should one understand?

KT Jithendran

So, Kalyan has the character of the land parcel where we have the current project is in progress with about 22.5 acres where we are the potential is 1.3 million This is divided into three phases, where we have launched now on three phases and this will come up for delivery in the next year.

We have some other parcels in Kalyan for example, you know there is another 70-acre parcel which is likely at a different location not suited for you know real estate exploitation as of today and it was an agricultural parcel.

So, that we have now leased out to on a long lease to a company t}, CENTURYTEXTILESAND INDUSTR,IES LIMITED Century Textiles and Industries Ltd October 27, 2022 for development for our own sister company, the BITS Pilani for making their Management Institute and we are receiving an annual lease for that, we have more parcels in Kalyan but these are all futuristic parcels.

Now the 45 acres is there.

So, which is also a futuristic, so those will not come up with development today.

And all these parcels are different in different locations.

Right so Yes, so the 22 Acres is where the development was currently in progress and has been doing very well.

So, therefore so that is where we have to but I was talking about

Abhinav Bhandari

A couple of parcels which we had our own I think if I'm not wrong somewhere in Talegaon and Pune and the one in Prabhadevi any progress on those?

KT Jithendran

Those are the right time we will pick them up at this point of time they're not ripe enough for the development very future potential parcels we will bring them up and for development in due course.

Abhinav Bhandari

Sure, and just one last bit on the standalone balance sheet, where the inventory has gone up by about 300 crores versus March so, just to get some sense on that?

Snehal Shah

Essentially, as you as we said you know, we can't do any revenue recognition.

So, all that expenditure as well as our collections stand either in the liabilities or assets.

So, the inventory is essentially of the construction work that has happened and also, we purchased land just now in Bangalore for one study on that.

So, standalone again standalone with two sales inventories have increased at Birla Niyaara whatever we have is spent that is coming in in standalone only apart from that there is some working capital increase in textiles and paper also.

Abhinav Bhandari

Okay, so, would you be able to quantify these two numbers the increase out of the INR 300 crore because of Niyaara and just to understand why Niyaara is getting?

Snehal Shah

So, Niyaara is being built on the land which belongs to Century so, Century is the land owner and all the revenues are booked in the book of Century and all the expenditure is booked in the book of Century and developer that is Birla estate is only getting management fee that is what is known as DM fees for all those inventories of Niyaara is booked in the Century balance sheet.

So, that is why the inventories are going up.

Abhinav Bhandari

And all the rest of the projects would be in the subsidiary.

Snehal Shah

Those are all JVs.

Only Kalyan for example, but Kalyan was a JDA but Niyaara DM.

Otherwise, Kalyan and also would have been in our books because the land belongs to us.

Moderator · Conference Operator

Thank you.

Further questions, I would now like to hand the conference over to Mr. Snehal Shah for closing comments.

Snehal Shah

So, thank you all for participating in this earnings call.

I hope we have been able to answer your question satisfactorily.

If you have any further questions or would like to know more about the company.

Please reach out to our IR managers at Valorem Advisors.

We are very thankful to all our investors who stand by us and have the confidence in the company's growth plans.

And with this I wish everyone a great evening and Happy Diwali and Happy new year, thank you very much.

Moderator · Conference Operator

Thank you.

On behalf of antique stock broking limited concludes this conference.

Thank you for joining us and you may now disconnect your line. t}, CENTURYTEXTILESAND INDUSTR,IES LIMITED