Ladies and gentlemen, good day and welcome to Ashiana Housing Limited Q1 FY25 earnings conference call. 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 star, then zero on a touch-tone phone. Please note that this conference has been recorded. I now hand the conference over to Mr. Binay from E&Y. Thank you, and over to you, sir.
Thanks, Sumit. Welcome, everyone, and thanks for joining this Q1 FY25 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 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 of 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 the quarter, and then we'll follow it up with 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 you'll find on our website. With that said, I'll now hand over the call to Mr. Vikash Dugar. Over to you, sir.
Good afternoon, everyone. Hope all of you and your families are keeping healthy. I welcome you to discuss the performance of the first quarter of FY25 for Ashiana Housing. Thank you for joining us today. Area booked was 4.43 lakhs sq ft in the first quarter of FY25, vis-à-vis 10.60 lakhs sq ft in the last quarter. Last quarter, we had sold 3.77 lakhs sq ft in Ashiana Amara, Phase three, where currently there was no inventory left to sell. Third phase of Ashiana Ekansh, Jaipur in premium home segment, and second phase of Ashiana Advik, Bhiwari in senior living category were launched during the first quarter of FY25. Value of area booked recorded at INR 235.32 crores in the first quarter, vis-à-vis INR 862.54 crores in the last quarter of FY24.
We constructed 4.91 lakhs sq ft in the first quarter, vis-à-vis 6.97 lakhs sq ft in the last quarter of FY24. We handed over 2.14 lakhs sq ft in Q1 FY25, out of which 2.07 lakhs sq ft were delivered in Ashiana Shubham, Phase four A, Chennai. Total revenue at INR 128.51 crore in Q1 FY25, vis-à-vis INR 129.29 crore in Q1 FY24. Profit for Q1 FY25 recorded a negative at INR 5.45 crore, vis-à-vis positive INR 10.87 crores in Q1 FY24. Loss was attributable to revenue booking in lower margin project, Ashiana Shubham, four A, Chennai, and one-off costs in Q1 FY25, like one-time incentive cost of INR 2.7 crores and interest paid to Shubham customers for delayed delivery, INR 92 lakhs. Other income in Q1 FY24, which is the first quarter of last year, also included profit on sale of school at Bhiwari, INR 4.23 crores.
We anticipate reporting losses in the second quarter of the current year as well due to lower deliveries planned. However, the second half of the current financial year is expected to be healthy in terms of deliveries, leading to reported profits for the full year FY25. We continue to maintain our guidance of ₹2,000 crores of resales in FY25. Further, pre-tax operating cash flows recorded at 74.92 crores in the last quarter, vis-à-vis 83.15 crores in Q1 FY24 and ₹92.9 crores in Q4 FY24. Moreover, we also received the completion certificate for Phase four Ashiana Utsav Lavasa on the 4th of July. 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.
Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on the touch-tone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Harsh Beria from Independent Investor. Please go ahead.
Hi, I have two questions. The first one is on Ashiana Shubham. In the presentation, you had mentioned that the Phase four delivery had lower gross margin at the project level. Well, Ashiana Shubham is a senior living project. Why are we making lower gross margin in senior living projects?
Thank you, Harsh. That's a very pertinent question for three reasons, particularly. So one, Shubham is an older project where we had signed off on 2015 on the parcel, and we had given a very high revenue share than we would usually do to enter a new city because we were getting off in a sort of a developed land parcel, which was getting us a quicker start into a location as per us. So A, the land costs in general are heavy. B, we had some unexpected cost overruns also in Ashiana Shubham, which has also been a learning cost of a new city. So both of those combined has led to lower GP margins in Ashiana Shubham. Those learnings have been factored in already in our newer projects, which we have signed off when we look at it.
So Ashiana Vatsalya would have, let's say, a much lower land cost proportion or top line as compared to Ashiana Shubham in our overall cost structure. And also, I think construction cost as a percentage of revenue will also be a little lower. So I think it was a lot of learning that happened in the earlier parts of senior living that this project was conceived in 2015 overall. So a lot of those learnings have happened, but the cost structures, once you conceive a project in some way, the cost structures remain in it, and unexpected cost overruns for a new location. We had some unexpected cost overruns because of some environmental compliances that we were expected to do and some delayed approvals, which held the project up for a bit. So all of that sort of has come together into lower margins.
Got it. But this is now not a problem in other projects in Chennai, or is this problem still there?
Okay. So according to us, this problem shouldn't be there in the new projects in Chennai, which is in Vatsalya and in Swarang that we're going to launch. Ashiana Shubham Phase 4B and Phase five should have a lower of this problem because we have been able to increase selling prices there substantially. So therefore, the overall percentage margins in Ashiana Shubham Phase 4B and in Ashiana Shubham Phase five should also be higher, and a lot of learnings that have kicked in into Vatsalya and Swarang as well. So there are still some learnings going on in the cost structures a little bit, and we need to improve discipline. That is also we are cognizant of. We'll have to do some of that. Strategic structural issues that were there, those have been resolved. So majority of the issues have been covered, and we should see margin expansion going forward.
What is the realization that we are having in Shubham for phase five?
One second. So in Shubham Phase five, we are realizing about INR 6,000 sq ft as compared to about INR 4,700 in Phase 4A, and Phase 4B is about INR 5,200. So those increasing sale prices will help margins in those two phases.
Got it. And my second question is on negative sales in two projects. I saw in Ashiana Surbhi and ONE44, there was about minus 22,000 sq ft of sales. Can you tell why do we have negative sales in these two?
Okay. Yeah. So in ONE44, we had launched in Q4, and it was at the tail end of Q4, and we allow a 30-day cancellation in general to our customers. If they book and they still want to cancel, they can. So some of those customers canceled out in the next quarter who had booked in Q4. So because of that, we have had negative sales in ONE44, and in ONE44, we are launching Phase two in the second quarter. So in the first quarter, at the tail end of the first quarter, we had stopped sales in Phase 1 altogether, and we wanted to redo the show flat and do some of that and some of that. So also, the sales in that quarter were slow when we had cancellations from Q4. We expect things to be good now with the launch of Phase 2 there.
In Ashiana Surbhi, we had a lot of old sales from investors who were not paying, but they had bought multiple units with us during the last boom time. This was sort of their side end of their inventory left of a group of investors. So we canceled that and sort of allowed them to transfer their money into other projects as well. So therefore, the cancellation there. Next, there were no cash outflows because the customers bought elsewhere, but value of area booking declined because they used their paid amounts only to book units and stuff like that, is what I understand overall.
Got it. And finally, what is?
This is a one-time event. I don't think we will have that repeating in the next quarter.
Got it. And finally, can you just give a brief commentary on the sales velocity in your different micro markets?
Thank you. So sales velocity, so one of the things was Gurgaon wasn't there in Q1, so I would not comment on Q1 there. Q2, we are launching Phase 4 of Amara, which is ongoing at this point in time, and we'll get to know a little bit more sense as to velocity there in terms of how it goes by end of this month. The great part of velocity was Bhiwari sales have picked up. If you see Ashiana Tarang and Ashiana Town, they've had their two best quarters in the longest time, and that uptick has been the most comforting uptick because that was the one market that was not contributing as much as we expected it to do.
Overall, in my opinion, without having a new project launch, we had some phase launches, but we did not have a new project launch, and we also did not have anything to sell in Gurgaon. Achieving INR 235 crores of sales overall was very, very good. If you look at the previous quarter comparable, something similar to this is the Q3 of FY24, where we did not have any new project launches and where we did not have contribution from Gurgaon. Our sales figure at that time was INR 173 crores only. So to me, overall, we see good velocities across the markets. That said, I think now the kind of momentum in increase in sale price, I think that momentum will reduce going forward. We expect prices to increase, but increase at a decreasing rate as compared to earlier.
This is really good to hear that the Bhiwari market volumes are picking up. Is there also price increase in Bhiwari that you have seen?
Yes. We have been able to increase prices in Bhiwari, both in senior living and in regular housing, and that is also very comforting. Not substantial in premium homes and expensive homes, but very comforting now, and we are very positive on the market now going forward.
Got it. Thanks so much for answering my questions.
Thank you.
The next question is from the line of Manu Rishi Gupta from MRG Capital. Please go ahead.
Good afternoon. Am I audible?
Good afternoon, Manu. We can hear you.
Yes. Thank you. Thank you for the opportunity. Just a couple of questions. None of them quantitative since I know that the corporate governance, and it's a very efficient and a very well-managed company, but more philosophical and qualitative questions. Number one, so while I do understand that the declared revenues are based on delivery, considering that the booking pace has been so healthy and we are a very, very efficient company, why are our revenues quite inconsistent quarter after quarter?
Manu, we are efficient on generally delivering on schedule, but depending on the life cycle of a particular project when it is launched, deliveries do tend to get bunched up in a few quarters as compared to some other quarters. And that quarterly variation in deliveries, unfortunately, is a part of our business. If you see this year, deliveries are, and we give a quarter-wise delivery schedule, expected delivery schedule, Q3 and Q4 of this year are bunched up in terms of delivery. And we've also given a sense that Q2 would be also a loss-making quarter in terms of reported losses because, again, we have only one real delivery plan there, and that also very small amount. Unfortunately, that's the reality of the business, but it doesn't impact the economics of the business.
As I said, we tend to look at year-on-year numbers internally to look at economic profit numbers instead of reported revenues because reported revenues are also sort of reflecting operating decisions that were made about two to three years ago. But that said, quarterly variations will remain a part of this business.
Thank you. Finally, would you like to share with us the aspirational pipeline of new launches, please?
So Manu, we don't have an aspirational pipeline as such of launches. What we have is about, if I exclude Milakpur, we have about 84 lakhs sq ft to launch, 84, 85 lakhs sq ft to launch, about 14 lakhs sq ft to sell in unsold area today, operating some more three lakhs in a quarter in completed stock. So that's about a crore sq ft. Aspirationally, we would like to complete this cycle in five financial years starting the first April of this year and otherwise go to six financial years. So the aspirational piece is to consume this in five financial years, otherwise go six financial years, and add projects along the way that we do. We are doing business development as well. So add that along and take that up. Obviously, projects will get launched in phases.
So this quarter, we are launching Ashiana Amara's Phase four, Ashiana Malhar's Phase three, and ONE44 Phase two. Next quarter, we hope to launch Ashiana Swarang as a new project completely and also Ashiana Ekansh Phase four. So quarter-wise, we keep launching, but the aspiration is to wrap these projects up in that time frame and add more to the stock as well as we go along.
Thank you. So my next question is that obviously, markets are peaking out, and stock markets are also peaking out, and there are some sort of dark clouds in a distant horizon, if I may. So could there be a situation that during the next downturn, we could be saddled with a large inventory, something that we saw in the previous decade just before COVID with prominent builders? So how is the game plan where we are not saddled with a large inventory and which obviously creates a lot of stress on the balance sheet?
So Manu, last time we peaked, there's about 11 lakhs sq ft of completed stock, and that was a big drag on the balance sheet for the longest time. This time, so one of the things we report now is the saleable area that we have launched and unbooked unsold area as compared to that saleable area. So if you look at, we've launched 68 lakhs sq ft, and we sold 54, only 14 to sell, and of that, nine lakhs sq ft is of projects that will get completed in FY27. So there is enough sort of timelines to sell off the inventory that we have in under construction because the percentage of launched but unsold inventory is overall less. And I think that gives me confidence.
The second is, since, as a policy, we don't allow resale before possession. I don't think we have a lot of customers who will refuse taking possession. So that risk is also not there because that risk also can take care of it. So that was the other risk we had. So overall, those were things we used to allow earlier in the last upcycle. I think sort of quality of customers that we have also is better this time. But that said, I think it was the most problematic piece on our balance sheet during stress in the last cycle. I think even now, after having a few years of good cycle, that stress, we have not forgotten.
So I'm glad to hear that.
So one more thing. Other piece is also that we are pivoting more and more towards senior living as a segment. I think more and more BD will happen in senior living. We find senior living to be less cyclical because there are less players, higher entry barriers, less competition, less chances of oversupply, less speculative buying. All of the ingredients which create more cyclicality in the premium residential category are either missing or less active in the senior living category. So as and when the balance sheet pivots more and more towards senior living, the balance sheet should become less prone to cycles in general. So I think that's the other piece that we are doing.
So quick two more questions. I've taken a bit of your time, so I appreciate that.
I'm sorry. We have one more person in the queue, and you can come back after that. One more question, and if I could request you to come back in the queue on the next person.
All right.
Okay.
Okay. So.
One more question for you, yeah?
Yes, please. So considering that the percentage of end users and the percentage of repeat client has been consistently high with Ashiana, I mean, how do we leverage it to ensure that our game plan and our risk mitigation is always in place?
Yeah. We continue to do what we do. We service them well and hope for them to keep giving us references. I think that's the basic thing is what we have been doing. Just continue to do the same. I don't think.
Lovely. Thank you very much. I'll try to come back in the queue. How do I do that? I press star and one again?
Yes, please.
All right. Thank you. Thank you very much.
Thank you. Ladies and gentlemen, anyone who wishes to ask a question may press star and one on the touchstone telephone now. The next question is on the line of Shivam, an individual investor. Please go ahead.
Hello. Thanks for the opportunity. So the Ashiana Amara Phase four is launching by the end of this month, right?
Shivam, Ashiana Amara Phase four, the launch is already on. We are collecting expression of interest. We have RERA, and either end of this month or beginning of September before Shradh, we should convert for bookings. So we haven't yet concluded on the exact date of conversion. We should conclude that probably by the 20th. We'll know exactly when we will start allotting units.
So the realizations this time are better from the previous phase launches?
The realizations would be about, I think, 25% higher than phase three as well. Now, with most of the projects sold out, we are gunning for higher realizations. We will be willing to live with a little lower velocity as compared to previous phases and look to maximize pricing as we go forward in this project.
Any ballpark on booking value that you're expecting from phase four?
So it's about, I would say, 25% higher on pricing, and the phase is about 100,000 sq ft more than phase three. I think you can do the math depending, but I am not expecting; it's not necessarily a complete sellout at launch because we are trying to maximize value. We are comfortable to live with having a few unsold stock in phase four as compared to phase three. We are hoping that we'll sell out completely, but we have done it in a manner. We are okay to now sell it over a few quarters if required as well or a few months, not a few quarters. We would like to launch phase five at the end of this year as well.
So you want to keep some inventory for higher price realization in the coming quarters?
It's not a thing I want to keep. I'm ambivalent to whether it's getting sold out or not. In the first three phases, we had the strategy that we want to sell it out at launch because we had a lot of stock in this project. We want to maximize price. So we are okay with a few inventory spilling over from the launch.
Okay. Thank you so much.
Thank you. Ladies and gentlemen, anyone who wishes to ask a question may press star and one on the touch-tone telephone now. The next question is from the line of Manu Rishi Gupta from MRG Capital. Please go ahead.
I'm glad that I'm getting the time since I'm attending this first call in spite of being a shareholder for the last 15 years.
Yes, please.
That's great. Thank you very much. Slightly selfish question. I live in Bangalore. When are you planning to actually break ground in Bangalore? The premium markets, you'll get all the premium.
We have been actively searching for senior living land parcels in Bangalore. We executed two term sheets. Unfortunately, one of the term sheets fell through at the stage of diligence. We have one more active term sheet going on. We hope to conclude that transaction and then launch the project, then apply for approvals and take the project up there. We're actively looking. We believe Bangalore will be a great market for senior living, and we are in active search for the same.
Awesome. So we've seen a rapid premiumization of dwelling units. INR 5-INR 50 crore apartments sound reasonably normal these days. Why are we still in the INR 1-INR 1.5 crore category, and do we have a plan to enter the premium segment at all? And if not, why?
We have entered the luxury segment if that's the case, B, with something called Elite Homes, which is ONE44 in Jaipur, which we launched last financial year, which was about INR 1.75 crores plus. For Jaipur, which was in the elite category of homes, my view is that at this point of time, the INR five crore plus segment has become overcrowded. We have also premiumized as a company from having the average ticket size of about INR 30, 40, 50 lakhs to average ticket size of now about INR one crore. I believe Ashiana can create a lot of value in the sub-crore space, even though we'll do premium apartments. It's more premiumized than what we are doing, but generally, we would like to, what we like to say, premium mid-market housing. We like to continue playing there. We see a good competitive space for us.
And we find, and in my opinion, the luxury end of the spectrum is getting overcrowded with most developers shifting back to that unit sizes and ticket sizes. So we would like the place where there is less competition and therefore less pressure on pricing and inputs as well.
Awesome, and this is the last one, if I may, so obviously, our balance sheet has been one of the healthiest when we compare to the entire peer group in the rest of the country with very, very healthy cash flows and the least amount of debt on the balance sheet, but going forward, do you see the same philosophy and the same quality of balance sheet and cash being maintained in the books without debt becoming an issue as we are seeing in some of the other listed real estate companies now?
So Manu, we are comfortable with taking a little bit more leverage than we have today. But that said, we'll continue to be cash-rich, keep low debt to equity as compared to industry. The comfort on taking more debt is basically coming from the fact that we have about INR 1,700 crores to collect from ongoing projects itself and only 35 lakhs sq ft of construction to do, plus 14 lakhs sq ft of unsold area in the launch pipeline itself only to sell. All of that gives us good visibility of cash flows over the next three years. Since we have good visibility of cash flows over the next three years, we might be willing to take a little bit more leverage than what we have been comfortable with earlier.
But that said, our temperament, as I've always said, our temperament is conservative and will remain to be conservative as compared to others.
Awesome. I think that's great. Thank you for your time, Varun. Mr. Binay, thank you very much. Very, very nice to be here.
Thank you, Manu, for joining the call once in the 15 years that you've been a shareholder. Thank you.
Thank you.
Thank you. Ladies and gentlemen, anyone who wishes to ask a question may press star and one on the touch-tone telephone now. Anyone who wishes to ask a question may press star and one on the touch-tone telephone now.
Sorry.
The next question is on the line of Rishi Singhal, an individual investor. Please go ahead.
Varun bhaiya, नमस्कार. आपको मेरी आवाज सुनाई दे रही है?
Haan, Rishi ji, aapki awaaz yaad bhi hai.
ठीक है. नमस्ते जी. अच्छा, मैं ये कह रहा था कि जैसे अभी आपने बोला कि जो प्राइस का रेट ऑफ चेंज है, अब वो रेट ऑफ चेंज थोड़ा डिक्लाइन होना शुरू हो जाएगा, लेकिन थोड़ा सा अपसाइड अभी भी मिलता रहेगा, राइट?
करेक्ट.
Okay. So like for example, year end tak hum Ashiana hamara exhaust kar lenge. Iske baad jo apna dusra land parcel hai Gurgaon mein, kyunki Gurgaon hi basically needle chala raha hai apni, to ye ismein aapko lagta hai ki jo next land parcel hai, ismein hum INR three crore-INR 3.5 crore ke bracket tak pahunch payenge?
Dekhiye, again, jo ummeed to hai vahaan pahunchne ki, theek hai. Ab dekhte hain kya rahega. Uske phase one mein pahunchenge, phase two mein pahunchenge, kis phase mein pahunchenge. Jab us project ko launch karenge, tab uska hum accordingly call lenge. In like, Ashiana Amara in every phase, including phase four, we have conscientiously left money on the table for our buyers. We knew we could have charged a little bit more if we wanted to, and we have left it on the table for the buyers that we have a long-term view to build a reputation and a customer base in any location we get to till our brand starts to get established to charge the premium it should for the kind of product and service we deliver.
In that next project, we'll have to decide, given the market conditions at that point of time and our views and how much money we want to leave on the table, how will we sell it, how do we position it, we'll get to know when it launches. उम्मीद तो है, उम्मीद पूरी है.
Okay. So, like.
Ek cheez main dekh ke kehna chahunga, meri ummeed ye hai ki abhi lag raha hai hamara Gurgaon needle bana raha hai. Jis tarike se organization travel kar rahi hai, mere ko lagta hai saare locations, ab Bhiwari bhi kicking kar raha hai, saare locations contribute karenge aur incrementally senior living needle mein kaafi contribution dega needle ko move karne ke liye. And I think, and we should be, after Gurgaon, our biggest bets are our senior living projects, Bhiwari, Amod, and Advik, all three of those really are the large contributors. And I see more and more senior living coming to move the needle for us going forward.
Okay. So senior living pe apna focus abhi, matlab jo thoda sa, jaise kahna chahiye, premium projects hain, wo Pune aur Chennai ke andar hain, right?
Premium projects Pune aur Chennai ke andar hain. Humne Greater Noida mein kuch option ke liye earnest money deposit bhi kar rakha hai.
ओके, गुड.
When that option will happen, then hopefully something will come. Let's see what happens. Depends on the rate. We are actively in premium discussions in Panvel, we are actively in premium discussions in Gurgaon, we are in discussions in Bangalore. So it depends what will happen. But I think senior living going forward will contribute. We have refined our model for that quite a bit, the way it should be done. And in Chennai, the first one in Ashiana Swarang, we are now calling sophisticated senior living, they are going to launch, which are even more premium positioned than our current senior living offerings. So that launch will be in Q3. So that will, we are also refining our sort of business model.
Haan, kyunki mujhe, matlab mera apni aisi feeling hai, jaise ki for example, is industry mein aap pioneers hain, lekin jaise Max Antara hai ya koi bhi hai, woh bahut high level pe positioning karte hain. To ek bahut bada gap hai beech mein. Woh Ashiana bada easily fill kar sakta hai usko. Aur volume wise to aap master ho hi ye sab cheezein execute karne ke.
Hum us gap ko fill karne mein lage hue hain. Sir, we are coming up with product that will fill the gap there. And Ashiana Swarang in Chennai is the first one in that direction.
Okay. So the way you told in business development that you are looking at senior living in Gurgaon, Bangalore, Noida, and are there any particular cities? Like for quite some time we haven't heard anything about Jamshedpur or something like that.
Panvel mein dekh rahe hain, Jamshedpur mein, Jamshedpur mein hum senior living nahi dekh rahe hain.
Achha. Nahin, senior nahin, normal living, apna jo hota hai, kid- centric type ya whatever. kid-centric aapki wahan pe reputation bahut achhi hai, you get a premium.
Jamshedpur mein humne ek project sign up bhi kara hai. Wo Jamshedpur ke project ka humne disclosure bhi diya tha, but usko humne table mein capture nahi kara hai. Humne ek project sign up kara hai, hum uska ek table mein capture bhi kar rahe hain.
Okay. So like one, like I give an example, if for example, Armani's T-shirt when it launches in New York, after that it comes down one step, then comes to Bombay, Delhi, then comes down further, Tier 3 comes. So the situation in real estate, where number of units and pricing, if we say that brother Delhi NCR happened or MMR happened, it appears first here, after that it goes becoming Tier two, Tier three, Tier four. So are you seeing this wave like that brother the lower, the more backward the city is, there so much percentage increase is coming and ahead halt has started coming?
Sir, I mean, when I have seen that somewhat our cycles are decoupled, when the entire market of NCR was in trouble, Ahmedabad was peaking and Dharuhera had already come into trouble, even though Dharuhera is further out. Now, like today, Dharuhera has started to run, after the price differential with Gurgaon has increased, so now Dharuhera is running. We are hearing in Ahmedabad that a little slowdown is coming, as a market, we don't participate there, but what we are listening. Jaipur is behaving very differently as compared to Jamshedpur in some pockets. So, a little bit I won't judge in that way, because our item is not tradable. If Armani's T-shirt doesn't sell in one place, then you can shift to another city and sell it. You cannot move our assets from one place to the other.
So our local supply-demand cycle has a lot of influence from these. So one has to see the local supply side, how it is behaving, local demand side, how it is behaving before we get into all this. I wouldn't make those general, I personally wouldn't make general categorization like that.
Okay. Jaise agar aap ye bolte hain ki hamare selling price point ab thoda sa increase ho raha hai, speed ghat-ti ja rahi hai, to kya hum ye kah sakte hain ki is time jo input cost hai, wo usse jyada tezi se gir rahi hai jo pehle thi? Steel, cement, input prices must be down; the margin should be better in my opinion. Kya aap ye sahi bata sakte hain?
Sir, as input costs are not down, but they are not increasing substantially on the construction end. Okay. The thing that is there, the input cost that had gone up the most was land. So for new projects, that was becoming a little bit of a challenge and is a little bit of a challenge right now. But I see land becoming, land price is now stabilizing. Usmein jo jitni increase hui hai land price mein, I don't think it will continue going forward, that kind of increase, which will be good news.
Okay, that's good. Aur last question hai ki jaise jab bhi aapko aisa lagta hai ki cycle peak out ho rahi hai, something like that, to jaise last time aapne QIP nikala tha, to aisa QIP aap aisa vichar hai aapka ki bhai debt ko control karne ke liye hum koi QIP ki taiyari karen, something like that?
Abhi, abhi humein QIP nahi karna hai, koi zarurat nahi hai, debt ko manage karne ki zarurat nahi hai, we are very comfortable. But last time bhi jab maine QIP nikala tha, mujhe maloom nahi tha us samay bazaar ka peak hai, aur mujhe abhi bhi nahi maloom bazaar ka peak hai. Main to aapko commentary de raha hoon, kya hua hai jab humne hamari zameen kharidi thi, tab mujhe maloom nahi tha bazaar ka bottom hai aur jahan hamara ke ye bhav ho jayenge. If you had asked me when we launch hamara phase one ki Ashiana hamara phase four ke ye bhav honge, I had no clue. And therefore, my humble thing is, don't credit us with more knowledge and more forecasting power than we have. Unfortunately, we don't.
All I was, all I could share was what I was seeing in the market a little bit as to what I hear immediately. What will happen in the future, I really don't know.
Okay, okay, okay, Varun ji, thank you very much, nice talking to you, thank you.
Thank you, thank you.
Thank you, Rishi. The next question is from the line of Lavanya Sharma, an individual investor. Please go ahead.
Hello, am I audible?
यस, लावण्या.
Yeah, thank you for your time, Varun ji. I had a question. You recently launched the next phase of ONE44 in Jaipur with a slight price hike. Can you comment a little bit on the kind of response you have got in Jaipur? Because the ticket price in Jaipur is, as far as I am aware, people are not comfortable spending that much money. So, can you comment a little bit on the kind of response you have got in next phase?
So, Lavanya, we just launched phase two weekend. So, we are on Tuesday today, right? We launched it on Sunday.
ओके.
We will get a better sense a little later. Unfortunately, Sunday in Jaipur also a day where a government alert on flooding came in. So, the day was a little off in terms of visits, because if you see some of the photos of Jaipur, I was also shocked. So, some of those things happened. That said, given that situation, the response has been, what the response we got, we are comfortable with it. I am comfortable, we have a very modest target of sale that we have to meet in phase two overall launch. I am very confident, the pipeline that we are seeing, we will meet that sale. And in my opinion, the ticket price that we have done in ONE44, we have left a lot of money on the table for the customer. We left it on phase one, and we are leaving in phase two.
The product that we are doing in ONE44 is a monopolistic product in the kind of less than four crore bracket. If you have or less than eight crore bracket, actually, if you have less than eight crore, and you want a great product, which has amenities, greenery, big size, good specification, good layouts, you really don't have a choice except for ONE44, and ONE44 phase one hit the nail on the head, and I think phase two will also do the same. We are that project, I think, is already been successful according to us.
Okay, thank you so much. Thank you for your time.
Thank you, Lavanya.
Thank you, ladies and gentlemen. Anyone who wishes to ask a question, press star and one on your touch-tone telephone. The next question is from the line of Pratibha, Pratibha and individual investor. Please go ahead.
Hi, thanks for the opportunity. I joined the call a bit late, so I apologize, it's already been addressed. Sir, I just wanted to understand, I think, we have seen a lot of launches by a lot of builders happening, and just wanted to understand how you see the supply, and are you seeing any kind of stagnation, and from what you see in the market, you know, you don't observe any such, you know, supply issues, and things are just, just business as normal?
Pratibha, right now, I don't see supply issues, and I think the single reason why supply issues are not there, because not enough developers have good balance sheets, access to funding. The tap of NBFC money is not there, tap of FDI money is not there, the AIF money is very small in its size right now, there are very few financiers around. So, till a lot of developers get access to a lot of funds, supply will, according to me, will remain to be constrained. And therefore, right now, the supply side dynamics are good.
Dynamics, okay, okay, thank you, sir, thank you.
Thank you, thank you.
Thank you. The next question is from the line of Prem Khurana from Anand Rathi Shares and Stock Brokers Limited. Please go ahead.
Yeah, good afternoon, sir. Thank you for taking my question. So, I had two questions. One was with respect to HSIIDC land parcel. I am not sure if it is already answered. Sorry, I mean, I joined a little late. When do we expect that particular go live? I mean, actually, it's been some time, and I think we are supposed to have it go live in this year. So, are we, are we on track to kind of have that come through in this year?
Hi, hi Prem, we are a little off track. I think it will slip to the first quarter of the next financial year. Approval is, we have been stuck in a bit of approvals there. So, I think it will go to the Q1 of next financial year.
Sure. And the way it's been with, I mean, Gurgaon, in terms of real estate prices, right? And fair to assume, I mean, when you, I mean, undergo that project, and the realization that you would have assumed, I mean, it would have changed meaningfully?
Yes, it has changed meaningfully.
Sure. And the second.
People at current prices have paid to exceed land price that we paid, right? So, yes, there is a meaningful change in the.
Sure. Sure. And also, I mean, if you talk about competition, I mean, the recent bids that you saw in Greater Noida, or let's say, I mean, some of your peers from Mumbai and Bangalore seem to be kind of trying to make it big in Gurgaon and other state. So, I mean, not necessarily in your category, but generally, I mean, we have seen some people come from Bombay and try and take up projects. Bangalore, I mean, Sobha seem to be kind of trying to kind of build more potential. So, I mean, how do you see, I mean, this to kind of have an impact on the overall market? Not necessarily for, I mean, general, I mean, do you see that this would lead to?
So, all of this really concerns me more on the land market side, and you know, if land prices will get overbid in any direction. So, as I said earlier, right now, we have also put in EMDs for a couple of bids in Greater Noida. Those options are going to come up. Some of the bidding that has happened in Greater Noida recently, and the price point that they have gone at, to me, seem a little out of whack that people have paid for that. Again, because I think, you know, we apply different lens to all this, but that's my sort of view on the same. So, with more players entering, the real worry is on the land side. Fortunately, land prices are, to me, started plateauing a bit, particularly the alternative use of the land was in plotted layouts, plotted markets.
layout market, I think, had become irrational, irrationally exuberant, if I would like to use the term. And because of that, I think, land prices have gone up a little bit off the charts. I am hoping that land prices will remain at places where we can make fundamentally good decisions. Let's see how it goes. And till then, our job is hard. We will keep looking for what I would say, pockets of value, pockets of opportunities. So, work harder to work doubly hard and see where we can see that. Right now, we see that opportunity in senior living substantially, where I think we can add value to markets, where regular housing might not do as well. And we will continue to focus on senior living lands.
But that said, if more people enter from other markets into any other market, land prices are what will be the major concern to that market.
Sure, sir. Thank you for explaining. Thank you very much. And all the very best for future.
Thank you, friend.
Thank you, ladies and gentlemen. Just anyone who wishes to ask a question, may press one on the touch-tone telephone. Ladies and gentlemen, anyone who wishes to ask a question, may press one on the touch-tone telephone. As there are no further questions, I would now like to hand the conference over to the management for the closing remarks.
Sir, there was one question from Hersh was in the Q. Can you check back if he still wants to answer with the question?
He got disconnected, sir.
He got disconnected. Okay, thank you.
We would like to thank all of you for being on this call and being so patient with all the questions and answers. If you were unable to take any questions, please feel free to write to us directly and reach out to us directly. And with that, we would like to conclude the call. A lot of the material we have spoken about is posted on our website, and you can also email your queries for any further clarification. Thank you once again for taking the time to join us on this call.
On behalf of Ashiana Housing, that conclude this conference. Thank you for joining us. You may now disconnect your line.