Ladies and gentlemen, good day, and welcome to the Q3 and 9-month FY 2024 earnings conference call of Mahindra Lifespace Developers 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 star then zero on your touchtone phone. Please note that this conference is being recorded. We have with us on this call today Mr. Amit Sinha, MD and CEO, Mr. Vimal Agarwal, CFO, and Mr. Rabindra Basu, Head, Investor Relations. I now hand the conference over to Mr. Amit Sinha, MD and CEO, for his opening remarks. Thank you, and over to you, sir.
Thank you, Michelle. I hope you can all hear me. Good morning, everyone, and welcome to our Quarter 3 FY 2024 earnings call. At the outset, I would like to thank you, thank everyone for participating in this call and wish you all a happy start to the new year. I know it's already February, but hopefully, you had a good start to the year. This is our first meeting of the year, and hopefully we'll have more meetings to share the updates as we continue to move forward on our journey. Let me just keep my remarks very short, focused on a few areas. I think, let me just first cover a few points on the industry side.
I think you're very well aware of the industry tailwinds, the excitement with every customer, every investor, every developer about the industry. So I will—I'll refrain from going too much there, but I think I'll touch upon the budget that was announced a couple of days back. It is a very industry-friendly budget. It gives a lot of boost to manufacturing, and the budget puts economics in the center, which would help India position itself well to achieve its Make in Bharat goals, which is very relevant as we think about the real estate industry. The CapEx in the budget shows a solid growth over the previous years, along with achieving the fiscal discipline that is required for us for this economy.
Government's push for Make in India, coupled with growth in CapEx outlay in the budget, this will increase, significantly enhance the manufacturing activity, which has direct impact on our IC business, which we are already seeing, but also has a huge positive impact on per capita income. It has positive impact on our residential business, as more and more, as the per capita income increases, demand for homes goes up and, and so on and so forth. As we have been building Mahindra Lifespace, we are focused on fundamentals. We are focused on very clear target customer segment, which is mid-premium and premium now. We'll continue to chip away as we scale this business to our aspirational INR 8,000 crore-INR 10,000 crore, five times bigger than what we achieved in FY 2023.
Let me cover the sales part quickly after the industry. Then I'll cover launches, I'll cover BD, and I'll cover IC and IP. So, four more parts after my quick summary of industry, and I'll request Vimal to jump in with his thoughts on financials. So on the sales side, we achieved a quarterly pre-sale of INR 443 crore versus INR 451 crore of quarter 3, FY 2023. On a nine-month basis, our pre-sales stood at INR 1,243 crore versus 1,452 in the same period last financial year. One key point to note is, in this nine-month period of FY 2024, our sustenance sales contributed three times more than what it had contributed in the previous financial year. So previous financial year was around INR 330 crore.
This financial year is INR 923 crore. As you know, we have been awaiting the launch of some of our sizable projects, especially Mahindra Vista, which is the Kandivali project. I'm glad to share the news that we have received the RERA last week, and plans are already underway. You'll see a very strong push towards creating an amazing product at Mahindra Vista. This is one-of-a-kind product, and I'll share more details about it during this conversation. The overall sales momentum for us is sustainable sales shows that our brand carries the pull that we have in the mind of the customers.
Even though we were expecting some of the launches to have had earlier in the year, they are finally happening in quarter four, and again, we have a few more lined up for this quarter. That's a quick summary of sales, and I'll cover more in the later part of the discussion. Launches, as I touched upon, Mahindra Vista is an exciting one, but prior to that, we've had 4 launches in the first 9 months of the year. In Q3, we had launched phase 2 of Mahindra Citadel in Pune, which are larger units of 2 and 3 BHK. We are already seeing very good traction. 40% of it is already sold out during the launch period.
A point to note that Citadel has is a very large project for us, and the phase three is significant in terms of the size that we are bringing to the market in the subsequent years. Our first plotted development in Chennai was earlier in the financial year called Lakefront Estates. And we find that from a financial point of view, it's an attractive proposition for us to plot it. We were sold out, and we are in the process of launching our second plotted development in Chennai, which was planned for FY 25, but we already filed for RERA. We are waiting for the RERA approvals at this time. We also launched phase three of Happinest Tathawade. Good traction overall in pre-sales there as well.
We also had received Palghar phase two. That is also in the path to a good, but the price point tend to be smaller, given it's a value homes project. As I touched upon, many of our launches are in the pipeline waiting the final approval steps. Malgudi, as well as Wagholi, which are in the various stages, final stages. Hopefully, we'll get those results as the earlier. The second plotted launch, which will also, I'm hoping to do it in the current financial year.
Busy quarter four, but the exciting thing for us is Kandivali Project Vista, which you'll see a very, very unique homes, premium homes, great architecture, great set of amenities, very well designed, and you'll see, you know, hopefully you'll be excited to consider buying there as well. We also are pushing hard to have our Nivruti project in Malad get ready for launch, but there are a few steps required for us to make sure that it's fully ready. A big development for us was we signed the DA in October, and we are in the final stages of doing everything close for us to get to RERA. So those are on the launches side.
Very healthy pipeline and lot of action, a lot of excitement, for us to, to watch out for the next few weeks and a few months. On the business development front, as you might be aware, and we touched upon this earlier, is the, the Wagholi deal in Pune in quarter three. That was 5.4 acres with a development potential of 1.5 million sq ft. That is already under RERA. So we really RERA approval process. So we really pushed to crunch the timeline from land to launch, and Wagholi is an example of where we are trying to, to demonstrate that we can bring those projects to the market at the earliest. We have a healthy pipeline of various sizing at different level of completion in terms of going forward.
Five thousand crore to six thousand crore is something that we always carry. Some deals fructify, some deals don't, but we have a disciplined process to ensure that the right deals actually go through. As you know, it's a very buoyant market. The land prices are something that we are already always careful about, and then we are making sure that we sign the right deal for the long term. Our Thane project, which has, we've talked about, after we got uncertainty, we got the new policy came, IT/ITES Policy that came up in August. We are going through all the regulatory process to get it approved. That project, that process takes some time, but that's one of the larger projects that we have in the pipeline.
In the past, the Thane market didn't have the price realization that will allow us to do a development of this kind. But given how the market has developed, the connectivity is happening, and many other infrastructure development around MMR region, I think Thane is going to be an exciting market for future, and we happen to benefit from it, having had this land parcel for some time. The two redevelopment projects that we have, Santacruz and Malad, they are progressing well. As I mentioned, the DA for Malad has been done back in October. We are doing the PAAA and all the other steps to get it ready for RERA. And we'll be procuring the IOD for Malad very soon.
We have a good pipeline of projects in Bangalore also, in addition to MMR and Pune, and, we should, I should be able to share the news as soon as we have something tangible and meaningful for us to talk about. Finally, I'll cover the IC & IC business. This is, if you recall from our strategy perspective, our strategy is to maximize value from an IC & IC assets. This year was, we had a muted H1. This is lumpy business, as you know.
Much better quarter three, where we signed multiple deals, 70 acres in quarter three alone, INR 224 crores in value, compared to 24.5 acres in quarter three of FY 2023, which was, at that time, valued at INR 69 crores. So this was the best ever quarter for our IC business, ever. But as you know, this is a lumpy business. A lot of efforts were in quarter one and quarter two, which fructified in quarter three. We have a strong pipeline of LOIs and term sheets, which will happen over a period of time.
We continue on the path of maximizing value extraction from our IC business and put that cash into the residential business, given the market cycle that we are seeing. So overall, I would say a healthy nine months for us. We have a lot of work to do to achieve our 5X aspiration, INR 8,000 crore-INR 10,000 crore. But as some of the big launches that we have gotten approval or likely to get approval, should push us to the next level as we think about quarter four, as well as the readiness for quarter one and rest of the financial year FY 2025. Let me just hand over to Vimal Agarwal for financials. Vimal? And then I'll come back to you for one more update. Yeah.
Sure. Thank you, Amit, and good morning all the participants. Moving on to the financials. As you all know, we do our financial reporting based on India, and many of our key operating entities in residential as well as IC & IC are not considered on a line-on-line basis. I'll call out the key India-based financial numbers for your reference. The consolidated total income is INR 2.89 crore in Q3, as against INR 188 crore in Q3 of last year. The consolidated EBITDA, including other income and share of profit from JVs, is INR 2.43 crore, as against INR 5.5 crore in Q3 of 2023. The consolidated EAT, after non-controlling interest, is INR 2.5 crore, as against INR 34 crore in Q3 of 2023.
Your company net debt was at INR 286 crore at consolidated level, while cash in hand, bank and investment stood at INR 278 crore. Overall, cost of debt was approximately 8.48% on consolidated as well as standalone basis. Our net debt to equity ratio was at 0.16. Net operating cash flow without land-related outflow was at INR 383 crore in nine months of FY 2024, reflecting the strong collections in residential as well as very good leasing, which we have experienced in IC part of our business. So these are a few of the key numbers I wanted to call out. I just request Amit to move on to the next update, please.
Yeah. I just wanted to close our opening remarks by letting everybody know, which is a public news, that Vimal Agarwal has taken another exciting role within Mahindra Group as the Chief Financial Officer for Mahindra Holidays. He's been part of Mahindra Lifespaces for over five years, and a tremendous asset for us. We are sad to let him go, but we are very delighted that he continues to be part of Mahindra family. The transition date is first May, so he'll be there for the closure of this financial year. We also have the benefit of another long-term Mahindra colleague, Avinash Bapat, who's actually on the call with us. He is moving from Mahindra Susten. 25 years at Mahindra, various roles within and outside.
Yeah, 25 years experience, 21 years at Mahindra. A long-term Mahindra leader of financial service, financial function, global experiences, local experiences. Mahindra Susten raised significant capital from Ontario Teachers' Pension Plan recently. He also led the effort to register and support the InvIT that we had at Mahindra Susten. Deep experience on the infrastructure side. So he's joining us about from first May as well. But in the interim time, he'll be involved for knowledge transition and pick up the learnings from Vimal. So I just want to thank Vimal for his contribution as well as welcome Avinash, and hopefully, we'll have many more things to celebrate with Avinash as well. I also want to acknowledge Ashwin.
Ashwin was head of business development in the past. He's currently the Chief Business Officer, South, focused on Bangalore as well as Chennai's residential side. He's moving on to pursue some other efforts, and we wish him very well. Vimalendra Singh, who is the Chief Business Officer, West and North, will take over as Chief Business Officer for Residential, all of India, in line with some of the peers that we see. But the most exciting thing is that we have a very strong pipeline of next level of leaders who are already entrenched into relevant specific markets. So they'll be working very closely with Vimalendra to make sure that we don't lose any step of this scale-up journey.
And we'll continue to bring more talent from the group, as well as outside, as and when needed. But we want to wish Ashwin as well, well for his future. We'll miss him, but we'll hopefully share his growth in other areas with, on a personal level. Avinash, do you want to say hello to our colleagues here on the call?
Hey, thanks, Amit. Sure. Hi, everyone, this is Avinash. Avinash Bapat, as Amit explained just now. I'm very excited to be on this call, and of course, like Amit mentioned, to join this journey, which is a audacious task, as everyone puts it here, and be part of this journey. Very excited to be part of this team, and we'll soon get together to meet most of you as we go forward. Thanks, everyone.
Okay. Thanks, Avinash, and, this is Vimal. As Amit said, I am very much here in Mahindra Lifespace to ensure a smooth transition over the next 3-4 months, to ensure that we just continue to build on the momentum which we have created over the last few years. With this, I request if you can open the floor for further interaction with the participants, please.
Thank you very much, sir. We will now begin the question and answer session. Anyone who wishes to ask questions may press star and one on their touchtone phone. If you wish to withdraw yourself from the question queue, you may press star and two. Participants are requested to use only handsets while asking your question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Adhidev Chattopadhyay from ICICI Securities. Please go ahead.
Yeah. Good morning, everyone. Thank you for the opportunity. So first question on some the launches for Kandivali. If you could just quantify how much inventory are we bringing to the market in the first phase? And across whatever other launches you have planned for this quarter and maybe the first half of next year, what is the cumulative GDV of all these launches which we have lined up, and which you hope with some reasonable certainty would you would be able to bring to the market? Yeah, that's the first question.
Yeah. So, thanks, Himanshu. Sorry, thanks, Adhidev. Sorry, I just... the list moved up, I think. So, the Kandivali overall GDV is INR 2,600 crore plus. But in the phase one, we are bringing roughly INR 1,200 crore of the inventory, and we are hoping that we'll get a very strong response. In addition, we are looking to bring Malgudi in Bangalore, which is roughly INR 500 crore of new inventory, that's in the process of RERA. And our Wagholi, which is Pune, which is under RERA, is roughly overall INR 1,400 crore GDV, but we are bringing half of that, INR 600-INR 700 crore of the inventory in this quarter.
In addition, there is the P-17 plotted, which is the second plotted that we will do this financial year. We will have the details of that shared, because the pricing is still not finalized, but we expect it to be... We'll bring all the inventory together, but roughly it'll be INR 250 crore worth of plotted. We have not included, you know, both Nivruti and Vista, which is around INR 900 crore-INR 1,000 crore for Nivruti, and Vista is around INR 500 crore. I think it'll be touching both of this quarter, as I mentioned in the past, so it may be very close to end of quarter four or quarter one of next financial year.
But that's a very healthy pipeline that we have right now. Obviously, we would like some of that to be earlier in the, you know, previous quarter, but for multiple reasons, it's kind of getting bunched up in quarter four.
Okay. Just to understand correctly, the Kandivali one and the Malgudi, Bangalore, and Wagholi, all of this, what you mentioned, is definitely coming in this quarter, right?
Yeah. So, you know, I wish I could say definitely, but we are dependent on the approval process, which is something that we want to not comment. The thing that is in our control is the filing. So for all three of them, Kandivali has already come, so that's already in the market. But for Malad, as well as is filed, and similarly, Malgudi is in the final stages of approval.
Okay. Okay, fine. The second question is on-
Even P-17 is filed, yeah.
Okay. Okay. Okay, okay. Second question is on the business development. So this year, so far, we have not seen that many of those large GDV additions yet, right? So what is the timeline? Obviously, I understand it is lumpy, but in terms of a GDV addition, when do you think many of the underlying pipeline deals would fructify, and we could see some news over there?
You know, that's a very important but interesting question, Adhidev. What we do is we have a very disciplined process of saying yes or no to a deal. Our typical pipeline is anywhere from INR 4,000 crore-6,000 crore of GDV. This year we have done two, which is INR 2,200 crore, INR 2,300 crore, Nivruti as well as Kandivali. I expect to close maybe one or two later this quarter, but I'm very careful about signing at the peak of the cycle, because the expectations of the landowner and our financials, they need to match. So, this is very lumpy, but we track the project profitability along with the BD.
So we want to have a healthy portfolio, 4-6K, which will automatically give us the GDV for future launches. So that's how we are managing our portfolio.
Okay. So, and just one last bookkeeping question is for Mahindra Land team. So, as for YTD, what is the, like, total land spend on either business development and approvals? Do you have the, do you have that number handy?
Approximately INR 300 crore.
This is all, including the approvals, or this is only for land, the cost? Yes.
What happened here, as we have always maintained, that we will try and stagger land payout and link it with approval.
Mm-hmm. Okay.
The number moves that rule, but at the same time, for example, Wagholi land acquisition, for which we have filed for renewal, the payouts are staggered and linked to various other approvals. We are trying to optimize cash outflows for better return on investment.
Okay. Okay, sir. Fine. Okay, so that's very helpful. That's it from my side. All the best.
Vijay, one thing clarify, I didn't clarify, all these numbers would include Thane, which is INR 8,000 crore-INR 10,000 crore GDV. I'm not adding that because there are longer approval processes tied to the ITP policy, so they are-
Sure, sure.
I mentioned to you.
Sure. Sure, sir. Okay, sir. Yeah, thank you.
Thank you. The next question is from the line of Parikshit Kandpal from HDFC Securities. Please go ahead.
Yeah, hi, Amit. Congratulations on a great quarter, sir. So my first question is on the industrial business. So we have seen reasonable success in our first plotted launch. We are going for a second one, and that we have advanced it. So just from the point of view of both the Pune this industrial land and Jaipur, so how do we look at monetizing or reconfiguring some of this land parcels into residential or plotted? So what's our thought there?
Yeah, yeah. You know, I think, Parikshit, thank you, first of all, for your comment. We are excited about this quarter and hopefully continue the momentum. But I think we are finding... So plotted is our new love, I would say, that we should have, you know, we should have done sooner. But after I came on board, I looked at the profitability and the ability to bring cash back is very high in the plotted business model. That's why we are accelerating it. And we are not only looking at, we're looking at all across our land assets, where we can get the approvals and the market can absorb. Both are critical elements of doing more plotted.
So the earliest is we had, we have, is Chennai, where we had land and we had sufficient land, so that's why we have done. This will be our second plotted. We'll do more. We have more land in Chennai. We'll continue to push. The market depth is, is something that we always watch out for. How much can we absorb? So we're always doing that. But same logic applies to Jaipur, same logic applies to Gurgaon, same logic applies to any, any plotted, any land asset that we have. So we are working closely to see how best to get the approvals at the earliest, do the development, because the plotted, we can add significant value by adding roads, common services, even put a nice club where, you know, residents would be very excited about.
So we think of it holistically, both Jaipur as well as potentially both, but we are awaiting both the, both the approvals as well as, market readiness to, for us to make the right investment. My sense is that you will see more plotted come out of Mahindra Lifespace over the next 12-24 months, across Chennai as well as other locations.
Okay. My second question is on Gurgaon. So now our Mahindra Luminare project is almost 76% complete, and I hope that it's nearly sold out. So are we having a relook at that market going ahead? Any thoughts there? Because I know you're focusing on Pune, MMR, and Bangalore, but any thoughts on a premium market like Gurgaon? Or do we see a re-entry or we started seeing deals? Any thoughts there?
Yeah. I think, Parikshit, you know, I used to live in Gurgaon for 15 years, so I have a tremendous love for Gurgaon market. But, I'm also a big proponent of focus, on a few things, and then do really well, and then try to expand. So my first goal is to get my fair share of real estate market in Mumbai, Pune, and Bangalore. That's my first priority. And that comes with, right number of launches, excitement from customers, our ability to, you know, economically add value to our shareholders. So I'm focusing on this for the next year, for sure. So once we are able to get this whole, momentum-going machine kind of well, stabilized, I will then start to look one more market, and that could be, Gurgaon.
Gurgaon, as I've seen, there are not many credible national brands. So there is a space for not only Gurgaon, I mean, NCR region, there is a space for Mahindra Lifespace. We have done three successful projects there, and Luminare is the fourth one, which is going to be completed by mid part of 2025. So we are there in terms of our team capacity, et cetera. So it gives us a little bit of time to make sure that we focus on the markets, core market that we have, and then, excuse me, evaluate when and what size of effort we put in to go back to NCR. So it's not no, but it's not yes either in terms of expansion.
It's just a deferral to seek the right time when we start to make the investment for that kind of a market.
Okay. And just the last question, if I may. On this, business development, you said, I mean, we have already have 2,500-2,600 crore in the kitty, and you have said 4,500-5,000 pipeline. And, and you also mentioned that Bengaluru may, that could appear in the from the call, is that Bengaluru is in advanced stages of closure. So if you can give us some color on this INR 5,000 crore of pipeline, between the cities like MMR, Pune, and, Bengaluru, that'll be helpful.
You know, it's I would put 50%-60% is focused in Mumbai, which is anyway, you know, primary from a value and size perspective. And Pune would be next in terms of size, maybe 20%, 15%-20%, then Bengaluru is similar to Pune. So that's how our business development... And this is excluding Thane, I should say. So just that's the other qualifier. And that's at various stages and various models also. So some are society, some are joint development, and some are outright. In Pune and Bengaluru, we do mostly outright, given the land prices still manageable. But that's the mix that we see.
We're always comparing the land prices to the realization saleable, and that gives us the opportunity to evaluate every, BD transaction, from a capital allocation, whether you want to put markets like Pune, where eastern part of Pune, where might realization might be lower, but land prices are also lower, right? Whereas in Bengaluru, the Whitefield could be high realization, but the land price will just go through the roof. So we're always looking at the spread and cost of construction to decide as we allocate capital across different markets.
Okay. Yes, I would like to wish Vimal sir all the best, for his next assignment, and look forward to interacting with Avinash, sir. Thank you.
Thank you. A reminder to all the participants that you may please press star and one to ask questions. The next question is from the line of Himanshu Upadhyay from Bugle Rock PMS. Please go ahead.
Yeah, hi, good morning, and thanks for the opportunity. I have two questions. One is on the Happinest, and the other is on Origins. So if you look at the market, first is I am asking on Happinest, okay? If you look at the market, people hardly have completed inventory, but we are finding it tough to sell Happinest. The value of finished goods inventory is flat for Happinest, Boisar, and Kalyan One Phase One, and some reduction is at Palghar. What is the reason for it, okay? And secondly, these are thin margin, high velocity products, okay? But if the completed inventory remains on the balance sheet for two quarters, four quarters, how does the IRRs change, okay? So if I look at, I think, out of INR 177 crore of completed inventory, majority is with Happinest product, okay?
Some thoughts on that.
So let me just... So thanks, Himanshu. Let me just start the answer, and I'll request Vimal to jump in, right? I think let me just give you a slightly, you know, broader answer, and then we'll get to very specific. We-- Our sustenance sale has tripled in the last nine months compared to the previous nine months. So I think despite having strong launches, which are now happening, strong new launches, we have been able to push our sustenance sales harder than most. Now, we are always saying balancing between velocity and realization, right? Some of the locations like Boisar or even Palghar, they are not so well connected.
So I have the choice between getting velocity and trying to take a lower price or trying to say, "Hey, market is healthy." And we already saw some momentum in January, already, so I'll, I'll share that in our next earnings call. But we're already making these choices: Do I get velocity at a lower price, or I get highest price realization, given the market is still, you know, still very hot? The interest rate has hurt the lower segment more than the high-end premium and luxury segment. So we see little bit of slowdown from for locations which are not immediately livable. So if you're not well connected, you'll find little bit of less excitement for those. But those are the pros and cons of Boisar and, let's say, I would say, Palghar.
But I think we are starting to see the momentum, and hopefully, we'll get to close as much of the finished inventory as possible. All of the value of all that you saw from the analyst presentation is, I would say, INR 50 crore and less. All the issues of Boisar, Happinest Kalyan Phase One or Palghar, all of that together is less than INR 50 crore. So while we are trying to maximize the value, it's the impact on our pre-sales and financials is not very big. So let me just pause. Vimal, you want to add anything?
No, just one data point. Himanshu, if you were to look at our total inventory which is available, in the, in the sort of later part of the project, at aggregate level, it's not even 5%, 7%, the total inventory which we hold as a company. So therefore, and that is reflective, as Amit said, the initial launches and the velocity momentum which we get takes care of, the, the inventory buildup or say, the return completely.
Yeah, I agree to what you stated. The only thing is, as a Happinest product, we have not seen any profits, okay, for a very long period of time, since inception, okay? Yeah, see, I don't know why you say only INR 50 crore. The cumulative of the three products is something like INR 162 crores of inventory pending sales, and, which was something like INR 167 crore in the last quarter.
Right. I, the inventory, which is post OC, and therefore, it's about INR 40-50 crore. The balance inventory of INR 150 crore, which you said, is, for example, out of this, about INR 70-80 crore inventory is from Kalyan One, the project which has seen about 75%+ booking at the time of launch. From data point, point of view, the appreciation in pricing, post-launch till today is approximately 25%+, and therefore, positive impact on IRR and no negative impact on IRR.
Okay. Okay, and the second question-
Himanshu, Himanshu, one more thing I just want to add. I think I've stated in the previous call, I think affordable or value homes, we are going to focus on mid-premium and premium going forward, as I've stated in the past. This value homes affordable is something which has to be really making financial sense for us to take on. But overall, we want to potentially sunset this category altogether. Our brand positioning is from mid-premium to premium or premium plus plus, and that's what we are going to pay focus our attention. Land prices have gone up, so unless we go to premium, we cannot create the financial benefit for ourselves.
No, thanks. It is very helpful, and I, I appreciate that. And I have been always of the view that for us it is mid, premium or mid-premium where we have to make the market.
Correct. Correct, correct.
But, second question is on the Origins, okay?
Yeah.
The last call, we stated that at Origins Ahmedabad, we are looking for an anchor client, or we will exit it completely, okay? We also stated that it won't be fire sale, which is highly appreciated, okay. Then one more comment we also stated was that we think it will become more moderately attractive in 3-5 years. Then the question comes is, why do we want to completely exit it? Because there will be annuity income which may come out. We are confident. And secondly, what has changed from when we were acquiring this land to today, when we are even ready for outright sale? So what has transitioned and on the Origins Ahmedabad, these are the few things, and I am confused here, so clarity-
No, no, no, Himanshu, we are always looking for the right option, and as you know, this is a long-term play for us. We also have IFC as our partner, who's also committed to it from a long-term perspective. But we are taking judicious decision on behalf of both partners, right? Ourselves as well as IFC. We have, if you simply put, we have three choices. Choice one is, you know, wait for the right opportunity. I've been there. It's... I think the market is starting to develop, but it'll be another maybe 2-5 years till we start to see really exciting industrial activity in that region. So, that's that option one is, you know, wait out and, you know, we, we'll do that. But the second part is completely exit.
We are open to it for the right... It's not a fire sale. That we are open to exit is because, if we get the right price, and given Make in India, there are a lot of large clients looking for large parcels of land, 100+ acres, 200+ acres, 300+ acres. And some of those opportunities don't come to us. So we are open to saying that, "Hey, if somebody wants to do that with us, buy, buy it outright," we are absolutely fine. The third option is for us to say, "We will get smaller clients and give them 1 acre, 2 acre, 5 acre." That's not the model that we want to. We have great learning from Origins, Chennai, where you need to get 1 or 2 anchors.
So we are preferring an anchor client who can take at least 30, 40, 50 acres of land, so that the development can be created around those anchor investors. Our Origins Chennai has been hugely successful, and just a few months back, Mitsubishi bought 50 acres of land. They may are making $220 million of investment. It's one of the marquee investment in Tamil Nadu. The Chief Minister of Tamil Nadu was involved in the inauguration, and they supported it really, really well. So that kind of an anchor investor, if you get, that's actually our preferred. So waiting out is something that we are open to. Selling it to an entity or a client who can buy the whole or big part of that is okay.
The third is the one we don't want to give it to a smaller customer, but we want to give it to an anchor customer, which is at least 30, 40, 50 acres. That's what we are striving for. We're open for all three options, keeping in mind the market as well as the holding cost for us.
See, a follow-up on this is, so even when we bought this land, even at that period of time, we had a thought that we would like to completely sell this out if opportunity comes, or it is because the market is ruling in that direction, we are thinking in that, that can be also a possibility?
Vivek your question wasn't clear. Could you clarify this?
I am saying that at Origins Ahmedabad, when we were purchasing and accumulating this land, at that point of time also, were we of an opinion that we can sell it completely outright, or it is that the way the market is evolving, we are thinking that this is also a potential opportunity, and hence we should evaluate such opportunities also? And will it be a case study type of thing that, okay, in future, we'll again accumulate land and think of a complete sellout once we develop it out? So some of your thoughts on how it puts your thought process for future also.
I think I'll highlight the fact that whenever you have large tracts of land, it's you always want to buy ahead of market picking up, right? So that's what we have done in Ahmedabad also, right? Now, the question is, when would the market be ready to start monetizing? I think the next, we are pretty sure, given it, China plus one, focus on manufacturing in India, this will happen. We had or we continue to have competition from government, GIDC, GIDC kind of parks, which are in the vicinity, and they are providing a land at much lower price. But let's say infrastructure, which is not as good as what we have provided.
So it will take for the market to move here, but eventually it will move. So in the meanwhile, we don't want to wait for the market to be fully ready. We want to be in the market, trying to understand customer needs, and if anybody is interested, large tracts of land or completely, both are open to us. So that's how we are thinking about it.
Okay. Thank you so much.
Thank you. Participants who wish to ask questions may please press star and 1 now. The next question is from the line of Ronald Siyoni from Sharekhan Limited. Please go ahead.
Hello. Yeah, good afternoon, sir. Just your views on the business development chart, like, if you can highlight, you know, what kind of pending land payments we are outstanding as of now? Because if you, if we are able to generate, you know, more than INR 100 crores of quarterly cash flows, then should this money be expected to go into outright purchases in Pune, Bangalore? Or, you know, if the land payment outstanding is very high, then you know, more of, as you said, the 50%-60% MMR exposure would be there. So just on your view on how are we placed in terms of outstanding land payments and the cash flows, which will be generated and utilized?
I'll request Vimal to jump in. He's got the numbers to follow your query.
One key point which I want to call out is our debt equity ratio of 0.16, which is extremely favorable. And therefore, I've always maintained that money or fund availability will not be a constraint so far as business expansion and our, our aspiration to touch INR 8,000-10,000 crore by 2028 is concerned. That's point number one. The second one is that we do have land payments which are outstanding because of our deal structuring, which is, you know, pay as you reach closer to, say, where are launches, et cetera. This also means that Kandivali and Vangani will have some payouts which will come up.
However, going by our track record of last 2-3 years, where collections are fairly good, the bookings are good, we do hope that so far as these tranches of payment is concerned for these 2-3 projects will be sort of self-funded. Having said that, we do have a good amount of lines open with the financial institutions, et cetera, from where we can borrow and fund our aspirations of land acquisition to grow in the years to come. Absolutely no constraint at this point in time.
Okay. And just, sir, on your view, you know, we have seen little bit of pressure, as you said, in affordable housing and, you know, certain below the certain ticket size. So, what is your thought process like? Whether they should, you know, creep up gradually in the mid-segment was also and, you know, you will be seeing more of premium and, uber luxury, which will be performing going ahead. So what is your view on, this basic, segmentation?
I think, Ronald, I think we are seeing huge momentum in the luxury segment, like in terms of, you know, but we don't play in that segment, and right now we are focusing on mid-premium, premium, and we will sunset the affordable or value homes, right? That's our current, very simple but very clear strategy. Your question is, will the slight slowdown on the affordable side will affect the mid-premium or even premium? So my, you know, you can never predict what will happen in real estate from a supply and demand. What happens in the cycle, the moment, the market is so healthy right now, there are so many launches that are happening, right? And the price expectations, everybody has the highest price expectation in their business plan.
And so we are very disciplined about making sure that we don't take the exuberance of the market currently in our future business plan. And that's why we are cautious about the right segment. So mid-premium, premium, it has to make sense whether it's a upcycle or even a downcycle, and that's how we are planning for it. There will be... A cycle will happen. Now, the question is, will it be next year or it'll be 3 years later, right? That's the question that I wish I knew the answer for. We are assuming that the buoyancy in the market will continue for a couple of years. We have looked at data for last 10, 15 years, especially Pune and Bangalore. They are healthy market.
The absorptions are pretty predictable, healthy in terms of the inventory overhang is pretty low. So from that point of view, and we do a micro-market level analysis to make sure that, hey, we are not going to a market which has traditionally been slower. So those assessments we do, and my sense is those are very helpful for us to ensure that we don't sign a deal which will have a more than pessimistic case of slowdown in the mid-premium or premium segment. And from interest rate cycle, I think we are at the peak as well.
So if the market did slow down, mid-premium and premium during this, my sense is as interest rates start to come down, it will give little bit of extension to the cycle, positive cycle that you see by a year or two. So hopefully it will sustain for next three to five years, but we have to keep signing the right deals so that we are not caught on the wrong foot.
Okay. Sir, last one question. So that means, you know, we would stay away from over luxury or super premium projects, right? And, congratulations, Vimal sir, and hope to meet Avinash sir in the future.
Thank you. Yeah, absolutely, absolutely. Thank you.
Yes, sir, your comment on whether we would be staying away from super luxury or, you know, super premium projects.
So you know, luxury for sure. What happens, Arun, just be practical. We, if you put any project in South Bombay, by definition, definition it becomes a super premium.
Right.
Because the land prices and the prices are so high, right? So, like, that's the only thing I just want to call it out. We are not going to say, "Let's make..." Let's say if the market is INR 10,000, we are going, we are not going to say, "Hey, let's make a product for INR 20,000, double the market rate." That we are not going to do. That is the true definition of luxury and super premium, right? But let's say if I were to put a project in Worli or Prabhadevi or Tardeo, the, by definition, the market price would be INR 70,000-80,000, right?
Right.
But it's not going to be INR 150,000, which is the definition of, or INR 120,000, which is the definition of a luxury project. So, we will not do super luxury project. We may look at a super premium or premium plus project driven by location, not by choice.
Thank you very much.
Thank you. Ladies and gentlemen, that was the last question for today. I would now hand over the conference to Mr. Amit Sinha, MD and CEO, for his closing comments. Over to you, sir.
Thank you, Michelle. I think, thank you, colleagues, for your questions and, for you to listen to our, how we are building the business, a healthy business, for, for the long term. Our aspiration, I just want to reiterate, is, 5 times what we were at 23, INR 8,000-10,000 crore. But we want to build a healthy business, which is good from shareholder perspective also. So, that's something that we really want to pursue. We already talked a lot about the kind of products, et cetera, but, even what our net zero product, one of the first in the country. Similarly, Kandivali Mahindra Vista is net zero energy and net zero waste as well.
So we are pushing the, the agenda of how to build the products for a, for living, for, for residential, which is different from most of the developers that you see in the market. We're trying to balance the economic aspect with the sustainability aspects. And we will see more of that from Mahindra Lifespaces. So scale up, doing the right product for right customers, very clear strategy in terms of what do we stand for, which segments we want to go after, which geographies are critical for us, what kind of projects we will do, what kind of projects we will not do, how do we maximize value from our customers? All those are part of our, execution, pipeline.
We are going to miss Vimal and Ashwin, but Avinash is coming, and more and more talent will come into Mahindra Lifespace to support our scale-up journey. So with that, I'll stay tuned. Many of you, I have direct contact, and I'll stay connected to seek your feedback and input as we continue our journey.
Thank you very much, sir. Ladies and gentlemen, on behalf of Mahindra Lifespace Developers Limited, that concludes this conference. We thank you for joining us, and you may now disconnect your lines. Thank you.