Good morning, ladies and gentlemen. We welcome you all to Mahindra Lifespace Developers Limited Q2 FY 2024 Earnings Conference Call. On the call, we have with us today Mr. Amit Sinha, MD and CEO, Mr. Vimal Agarwal, CFO, and Mr. Rabindra Basu, Head of Investor Relations. 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 this conference call, please signal an operator by pressing star then zero on your touchtone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Amit Sinha, MD and CEO, Mahindra Lifespace Developers Limited. Thank you, and over to you, sir.
Thank you. Good morning, everyone, and welcome to our Q2 Financial Year 2024 Earnings Call. At the outset, I would like to welcome everybody for the call, and thank everyone for participating. Also, my best wishes for Dussehra and Diwali. Also, best wishes to India for the World Cup for all our collective behalf. Let me cover a few things very quickly. I'll cover a few highlights that we are seeing in the industry overall. We'll quickly cover pre-sales on the resi side. The launches that we have done are in the process of gearing ourselves for the H2, the highlights of the group development, the update on the IC& IC side, and I'll then request Vimal to jump in for the financials. So those are the few topics that I'll quickly cover, along with Sir Vimal. So let me just start with industry very quickly. We continue to see a huge amount of momentum in the real estate industry. I would call it a purple patch for the industry, given multiple strong drivers in the market. The macros are strong. The GDP growth is contributing significantly. The per capita income, the per household income, et cetera, are driving the growth.
Post-COVID, we have seen a significant interest in home buying, not only in buying home, but also buying larger homes u pgrades are also becoming a key part of the buying behavior. Typically, the industry, real estate industry, has a six to eight year cycle. We are second. We finished two years into it, now entering the third year, so it has many years to go. We continue to see steady demand growth across the markets. One of the interesting things that we track on a monthly basis, the industry Inventory Overhang across each of the key markets, and that continues to reduce. You know, that's very interesting because this year is going to be a strong year. We probably cross 550,000 units, but the inventory overhang continues to come down, which is healthy for the industry. Just as a comparison, China, in the best years, had one crore homes, so 20 × more homes are sold in China, as a reference.
So we have a huge amount of headroom to grow as a country, as a real estate industry. Typically, the industry contribution is 12%-14% in developed, more developed markets. India's contribution from real estate industry is roughly 7%-8%, so we expect that contribution to go up significantly. And the expectation from many sources is that from $250-$260 billion industry that it is today, primarily residential, will become a $1 trillion industry by 2030. Just for reference, China was $500 billion in 2009. China was $2 trillion in 2019, and there have been a lot of challenges with Evergrande and Country Garden since then. But it shows you the kind of size that you can expect in a country of China's size or India's size. So a huge headroom for growth. We also see a lot of flight to quality, that that signify that branded players, listed players like us would benefit from the governance thresholds that have been put in place, the regulatory improvements, statutory norms that have been put in place. We'll continue to continue to leverage that to our advantage. So the flight to quality is a key part of how the industry is shaping. So that's one quick first point on the industry.
Coming to Mahindra Lifespace, on the sales side, especially on the residential side, we have achieved a quarterly pre-sale of INR 455 crore versus last quarter to INR 399 crore, so some improvement there. On a half-yearly basis, we stood at INR 800 crore for the first half of this year. Compared to H1 this last year, H1 last year was INR 1,000-odd crore. Important point to note here is that our H1 2024 sustainable sales contributed more than 80% of this INR 800 crore, versus last year H1 sales, where we had reported pre-sales of INR 1,001 crore, with almost 80% coming from new launches. So the mix of sales is very different in this first half of this year. And this fundamentally reaffirms the fact that strong brand, coupled with solid on-ground distribution, and deeper relations with channel partners, keep us in good shape as we get in H2 with a series of new launches planned. I had, in the last call, I promised nine launches. We have done one, one in quarter one, one in quarter two, and then just in this month, October month, we have done the third launch. But we have a series of launches planned later in the year, and I'll touch upon them.
But as, as I mentioned earlier, having a strong engine, distribution channel partner and the brand allows us to capture, not only sustained sales, but also the sales that come as a result of new launches. So strong, strong, strong, pipeline in plan. Let me touch upon the part three, which is the launches. As I mentioned, our first plotted redevelopment or plotted development was launched at the end of quarter one in Chennai. We had never done a horizontal development before. We've received a phenomenal response. It was launched at the end of June, so most of the impact was only seen in quarter two of this financial year. We sold 85% of our inventory in the first three months, 244 plots out of 282. At the end of Q2, we launched phase III of our Happinest Tathawade project in Pune. We are seeing very strong momentum. I'll share more details in subsequent calls. We also will see a fairly busy H2 in terms of launches.
Some of the launches were delayed because of statutory and regulatory requirements, some Supreme Court rulings, rulings about the RG area on Mother Earth, et cetera. So they have deferred, but we'll expect Codename Malgudi in Bangalore very soon. Project in Kandivali, Happinest Kalyan 2 phase II, Happinest Palghar 2 phase II-B , and Codename Navy, which is a redevelopment project. And then, we might have a delay in one of the other redevelopment, but to make it up, we fast-tracked two or three of other projects so that we what we have committed to you now in terms of launches, nine launches this financial year, we should be able to achieve that without any problem. We also just last week did an industry first launch of our a very exciting project that you know of, Citadel phase II, was launched through Metaverse, with very exciting new technology trend through 500 drones that lit up the sky with a lot of exciting ways to understand the market, understand the customers, and understand create a pull factor from the customers. It's been very well received by channel partners and customers alike.
So we hope to see more such exciting things to come from MLDL in future launches as well. Let me come on to cover the next part, which is part four, business development. Continuing our business development effort, we continue to maintain a very healthy BD pipeline of INR 5,000 crore-INR 6,000 crore. Just to highlight a point around the Navy redevelopment project, we had acquired the project in April of this year. We got all the documents in our hands end of end of April. But as of last Friday, the development agreement has been signed by 170 flat owners. 135+ registration was done on Friday itself. This is one of the fastest redevelopment market bring to market effort that I've seen. And we are very thankful to the society members who also showed the speed that we want to demonstrate from our side. And we hope to bring this to market in this financial year itself, financial year itself. We also want to highlight one of the acquisition that we did.
It didn't happen exactly in quarter two or H2. It happened 10 days, 12 days later. We acquired a land parcel 5.4 acres in Wagholi, Pune, which has a development potential of 1.5 million sq ft saleable area. You know, Pune continues to be a strong market for us, and this acquisition gives us the opportunity to leverage our brand in the micro market that we were not present. So this will allow us to participate on the eastern side of the Pune city area. We will see the launch of the same project in the next four to six weeks. That's the speed we want to have for as many of our launches as much as possible. As we go forward, the pipeline looks very strong. Our much-awaited Thane land has seen a phenomenal boost in development potential, which I touched upon in the last call. We are in the process of getting a set of approvals that allows to get us ready for a launch, likely next financial year. So that's on the business development side. Let me also quickly cover the final part from my side, IC& IC business update. IC, as you know, is a lumpy business.
As anticipated, we had a very strong H2 of last financial year, and H1 of this was a little bit subdued because it's lumpy, it comes in waves, but we are seeing strong amount of domestic consumption driven manufacturing, China Plus One related opportunities, so we see strong momentum. In fact, we have a healthy pipeline of LOI, which we are in the process of converting slowly and steadily across all our world cities and origins industrial clusters. A few approvals are awaited so that we can close those LOIs into the lease opportunities. We'll keep you updated. Most of that will happen in H2. I'm hoping that, when we talk next, you will get to hear the momentum, although lumpy in the IT business, is getting converted into real opportunity that we'll be able to see in the numbers that we put out. So that's on the IT side. Let me hand over to Vimal for the sixth part, which is the financial part.
Thanks, Amit, and good morning, everyone. As you all know, many of our key operating entities from residential side and IC& IC side are not consolidated on a line-by-line basis. Moving on to the key numbers here. The consolidated total income stood at INR 25.7 crore as against INR 73.8 crore in Q2 FY 2023. The consolidated PAT, after non-controlling interest, stood at a loss of INR 19 crore, as against a loss of INR 7.7 crore in Q2 FY 2023. The company has a debt of INR 291 crore at consolidated level, while cash in hand and bank balance, including investments, is INR 65 crore. The cost of debt stood at 8.1% on consolidated. Our net operating cash flow without land-related outflows was INR 249 crore in H1, reflecting the strong collections in the residential and IT part of our business. These are few of the key points. I now request if the floor can be open for questions from the participants, please. Thank you.
Thank you very much. We'll now begin the question- and- answer session. Anyone who wishes to ask a question may press star and one on their touchtone 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. Participants, you may press star and one to ask a question. The first question is from the line of Adhidev Chattopadhyay from ICICI Securities. Please go ahead.
Yeah. Good morning, everyone. So just to start off on the launches, whatever launches you have planned for second half, could you give us some quantification, what is the overall GDV of the, cumulative GDV of the launches you are planning? And just to clarify, the redevelopment is on the Santac ruz project, right? Which you touched upon, where the signing has happened. Yeah, that's the first question.
So let me thanks, Adhidev. I think, let me clarify the second part quickly. The signing has happened for the Navy colony in Malad. So where Santac ruz is, is actually, we are working on it. It's two different societies, so amalgamations, the process is slightly longer, so we are still, trying to accelerate that, but, it is taking more time than we anticipated. But the Navy part is done. Navy was announced in April, and we have done the registration as of last Friday. So hopefully that answers your second part of the question. And coming back to your first part of the question, I think the, the GDV, so we have, so we had initially planned nine launches.
We have potentially two of those launches may spill over to FY 2025, and one of them we just talked about, Santac ruz. Nine, just given the time it's taking to get the process done. But we have three additional projects that we added to this year's pipeline itself, so that we should hopefully be able to not only meet nine, but hopefully, do more than nine as part of our launches this year. The total GDV from this that we are bringing into the market, so let me just clarify, like, the project will have a INR 2,500 crore odd GDV, but we're only bringing the phase I of that launch in this financial year. Next, phase II will be in the next financial year. If I add up all the phases that we have planned, so not the whole project, in this financial year, it'll be between INR 2,500 crore-INR 3,500 crore in GDV for this financial year based on the launches.
Okay, INR 2,500 crore-INR 3,500 crore. Sir, Kandivali, when do we see the launch happening? It will be within this quarter or just towards next quarter?
This will likely get to in the next quarter. Given we also want to time it and make sure the market is also prepared well. So we are awaiting the approvals, and as you know, we had to redo a lot of things given some of the changes that happened. Most of things are going in the right direction. Even though we might get approval this year, which we are hopeful, this quarter, we want some time to warm up the market. So my, you know, best guess is we want to do it in January rather than this quarter. I don't want to rush into it, given it's such an important project for us.
Okay. And sir, just to redevelopment projects, so Malad may be launched this year itself and Santac ruz next year, right? To understand correctly.
Yes. Maybe we are pushing the launch this year. But also we're trying to, we're not giving up. We are pushing hard, but just knowing the, the process, it might spill into next financial year.
Okay, but this INR 2,500 crore-INR 3,500 crore is a conservative guidance you are giving, right? Factoring in any delays or this is the, what you say, lower end, upper end? How should we look at it? Sorry to press on.
This is a, you know, this is a best guess that we have based on the launches we have.
Okay.
INR 2,500 crore is, i t's a good. But last year we did INR 1,812 crore, just for our friends, right? So.
Okay. Sure, sure.
Here we have INR 2,500 crore guidance, right? So I think, launches versus sales conversion, there is a ratio which we'll know depending on the success of the project.
Sure, sure, sure. Fine, sir, I'll come back in the queue with more questions. Yeah. All the best.
Thank you.
Thank you. Participants, you may press star and one to ask a question. Next question is from the line of Pritesh Sheth from Motilal Oswal. Please go ahead.
Yeah, thanks for the opportunity. Firstly, on the business development, so you mentioned about INR 5,000 crore-INR 6,000 crore of pipeline, and I think, as per the plans that the company is having of 5x growth in five years, I think every year we would, we should be doing around, you know, INR 6,000 crore of business development. So how is it looking for this year? We have already signed up one project in Pune, but, you know, in second half, will this traction be more positive and will we be achieving this INR 5,000 crore-INR 6,000 crore of BD this year?
Yeah. So thanks, Pritesh. I think just want to clarify one thing before I specifically answer the question. This INR 5,000 crore-INR 6,000 crore, as I explained in the last call also, excludes Thane. So we had not included Thane, which is, you know, which has huge potential, but we will target only a fraction of the full FSI potential, given it's a beautiful site, which has a lot of trees and greenery that we want to preserve. So we had talked about INR 8,000 crore just from, just from Thane, 50% residential, 50% commercial. So that is not included in the number that you just mentioned, that I mentioned earlier. We, since I came over, I think we put a huge amount of effort in the BD process completely, given where the market is. So a lot of discipline, a lot of efforts and outreach to get to see as many deals that are there in the market. It's good that we are focused on MMR, Pune and Bengaluru, so it allows us to understand the market sentiments and that, you know, how the markets are shaping up really well. But I just want to be, s o we are on track in terms of the volume and the flow of deals that we are seeing.
But I'm also very careful about signing the deals that only make sense to us, because as we know, the market is so hot, the expectation of landowners in terms of pricing is very different. So I don't want to sign up a deal and then have the winner's curse, say, I got the deal, but, you know, when I'm bringing them to the market a year or two years later, there's slowdown unanticipated. So just being very careful and disciplined about how we triage through the deals, how we filter through the deal economics, and make sure that we sign the right deal that makes more sense for us in achieving our aspirations. So three points. One is, the Thane part was not included. Second, we see enough flow and of the deals across these three markets that allows us to triage through. And third is, I want to be very careful on the deals in terms of economics, so that we don't sign a deal that will cause winner's curse.
Sure. And beyond the Thane, Kandivali-like deals, which are large in size, you know, you would be happy to get these above INR 5,000 crore-INR 8,000 crore kind of deals, you know, additionally, or for now, since you have Thane and Kandivali in place, you know, those large size deals are largely out of our contention right now. What's the strategy there?
Yeah. So we have a good flow of large deals, medium-sized deals, you know, we call it mega deals, and Thane is a mega deal for us. We have category A, category B, and category C, and given the market, we look for all kinds of deals that meet our thresholds. We don't want to do too many small deals, and then we also don't want to be chasing deals that may not have the economic threshold that we are seeking. So we're always trying to balance that. So as part of that, we will be open to all kinds of deals as long as they make our economics and thresholds work.
Sure. Got it. Just, since you touched upon Thane, and you mentioned about, you know, that project being ready for launch next year, but, you know, has there been any clarification on, you know, how that 50/50 component is going to, you know, get developed? I mean, whether, it is, it is supposed to be delivered together or whether it is supposed to start together. Any clarification on that?
Yeah. So.
And also, you can touch upon, you know, the other project as well, if, you know, how is the status of approvals there? Yeah.
Yeah, got it. So let me cover Thane first. I think a great question, actually. That's something we have to carefully plan for. The way the law tells us is that you can sell and construct, you know, asynchronously, so they can happen at any point of time. But the OC part has to be joined together. So I cannot deliver a single square foot of residential till I have delivered equivalent square foot of commercial as part of the IT/ITES policy. So even though I can sell earlier, but I have to make sure that they get delivered, and typically the commercial has a shorter construction, two years versus four years, so residential, we have to plan for that very carefully. That's why I think, as I mentioned, we are not only getting some approvals to make sure that we are fully ready, but also we are commercial point of view, we are thoughtful about working smartly with this constraint in mind. I don't want to start something on resi till I have some clarity on commercial, at least part of it.
We will do it in phases so that we are not locked in a situation where our resi is ready, but we can't offer possession to our customers. So that's on the Thane piece. So that's part one. I think on part two, on the resi, we have not seen any major improvement in the clearances that were required for us to launch the project. And that's why in the next 30, 60 days, we'll take a decision whether we want to be, you know, whether we want to consider including the research or we want to drop it from our pipeline and see when it's ready, and look at other projects also that will be more exciting from a timeline point of view, and that may not require this kind of specific approval.
Got it. Very clear. Just one last on IC & IC. I saw some 70-acre decrease in, you know, SEZ piece in the Jaipur part. You know, that the size of that land has reduced. Any reason for that?
You know, just say that question again, you know, I think I lost the last part of your question.
Sure. So yeah, Jaipur was last quarter, 2,000-odd acres, somewhat, somewhere around there. Now it is showing as 1,900 acres, and I saw, I mean, in terms of the SEZ part of that land, that has reduced by 70 acres. So any specific reason for, you know, that reduction?
Yeah, I think, there. So let me highlight two things. We have to always abide by the government rules. So there is some tweaks that are happening from 65% or 67% to 65%, in terms of how much is leasable, compared to the total area. So there is some adjustment that we always do based on the latest and the greatest, guidance that we get from the government. And then we have some healthy, SEZ, pipeline also, that we are tracking well. We are also looking for some de-notification, that will allow us to, t here's more demand on the DTA side compared to SEZ. But we will, you know, we'll have to get the right approval before we can talk with a lot of confidence. And as you know, the DESH Bill will also hopefully help us, not only help us, but any SEZ entity to benefit from if DESH comes into. So we are working with the government or the industry bodies to explain how this should be done, which is equitable for all the stakeholders involved.
Sure, got it. That's it from my side. Thank you, and all the best.
Thank you.
Thank you. Participants, you may press star and one to ask a question. Next question is from the line of Himanshu Upadhyay from O3 Portfolio Management Services. Please go ahead.
Yeah, hi. Good morning. My first question was, you had stated that the real estate market cycle is now in the third year of up move, okay? We are seeing prices of residential flats, et cetera, move up or the end product, okay? And also the price of land has been increasing. How are the basic assumptions, like realization, sellable area, and costs, which are also increasing because of inflation, changed in the assumptions, what we are making for the projects or we are bidding for? Okay, can you elaborate on that, and what does it mean for you? Are we still in the spot that the end realizations are much ahead of the land prices and costs, or you think the fine balance is moving on the other way? Some idea in all the three markets where we are focusing on. Okay.
Vimal, you want to jump in?
Yeah. Yeah. So Himanshu, a couple of points from my side. One is, so far as the realizations are concerned, as we were mentioning in the last call, we see a lot of discipline, although the trajectory is upwards, but it's not the sort of obscene price increases which we are experiencing. But it's in the positive sort of trajectory. Net, yes, continues to be something which is a critical raw material for us, and there is some hardening of pricing which we are experiencing. At the same time, sort of middle of the tunnel, like, cost lengths which are there. Last one and a half years has been much better than what we saw post-pandemic. To that extent, from, say, our guardrails perspective, we are looking fairly strong, across all projects which we are signing up for, or the projects which are coming up for launches. Right ?
I'll just very well. Himanshu, let me just add two more things. There are many more things that maybe, you know, we can explain more in detail when we have more time. But there are a few things that we are trying to do at our end. First is the size of the project. I think it's as we, I think, your question was, one of the questions earlier, we should have the optimal mix of projects and ideally, the size of the project should go up. So this, from a scale point of view, if you're doing a INR 500 crore project, we should ideally go to INR 1,000 crore project and INR 1,500 crore project. When you do scale projects, automatically you have the ability to leverage a lot of common overhead, fixed costs, et cetera. That's something that we are consciously doing across all the three markets.
I have clear thresholds for what is the right project looks like. If it is smaller than that, then there has to be a very strong strategic reason, otherwise we should not do it, because economically it will put some of the constraints that you just touched upon. So that's one. Then the second part, on the cost side, I think the volatility is a challenge in our business because our price gets locked in upfront and costs we have to endure for the four years before we deliver. So it's extremely important for us to manage our cost of construction really smartly. One of the things that we have seen, and we are trying to bring the manufacturing mindset into our project mindset, project operation, is how do we do the standardization? So standardization of, let's say, apartment sizes, standardization of building layouts, standardization of MEP, standardization of parking lot, standardization of components, standardization of all the finishes.
And, these are things that are typically seen at a very high level of sophistication in, let's say, manufacturing industry. In projects, everything becomes bespoke and it's not industrialized at all. So with the help of my colleagues, especially Jitesh and Vimal, Jitesh leads design and Viral does marketing, we are saying that how do we standardize our products, so much so that it allows us the efficiencies in the constructed area to the RERA area, that you don't want to construct too much for the same amount of RERA, which is where the selling happens. So these two things I just want to add to what Vimal said, to make sure that we are able to, one, on the size of projects, we are increasingly trying to take it up. And then the biggest driver of profitability is the ratio of RERA versus construction area. How do we standardize and reduce and get the efficiencies on the cost side?
Thanks for the detailed reply. It was very helpful. Second thing was on, i t is slightly longer question. Can you give an idea of how is the capital allocation strategy evolving? In what, because in our presentation on the ambitious goal slide, we have stated that, we are working on lot of six, seven factors okay, or the six factors. And what does it all mean, okay? And how does the bold ambition that you are elaborating, does it mean on customer segments, products? And what are becoming down with experience, more no-go areas for us, or we would, we would have seen that these are the things which we, which we used to do historically, but I think, the return ratios do not meet for us. So that is one part on capital allocation. And secondly, how does the KRAs change and the organization structure or model change based on what you are trying to achieve? And, on the bottom, how is this evolution impacting or positive development is happening, let's say, on the people front and capital allocation and the KRA? Just some thoughts on that will be helpful.
So Himanshu, great question. I'm glad you touched upon. I'll try to be brief here because it's a, it's a question that requires longer, more detailed answer. But let me just try to give a, summary on both the points that you raised. The, the aspiration that we have set up, requires a very healthy GDV, to be created over the next, five years, four and a half years. So anything between INR 40,000-INR 50,000 crore GDV needs to be there for supporting our 8 to 10K scale-up that we have. Now, the way to pursue this is very important that we don't do. And, and this will be spread across, let's say, Mumbai, Pune, as well as, as well as Bengaluru. The size of the project I touched upon earlier will be different, like mega project, category A, category B, category C. But there's another important angle of the type of the deal. Is it a society redevelopment? Is it a joint development? Or is it an outright purchase that we have? Each of these things will have a different capital requirements. Because, you know, you know, when, you know, in case of, let's say, the Navy, we don't need to put capital till very late after the registration is done.
You do a little bit of marketing spend, but now and then very quickly you can launch. But when you're doing outright land purchasing, you have to make sure that you spend all the money upfront, and then it takes anywhere from, you know, nine to 12 months to bring those projects into the market. So those are the ways, you know, we estimate the size of capital required to support our growth aspiration. But one of the fundamental principles that required for us to commit to any of these is the financial returns. So this is something that I have started to push internally, that whatever you do, Himanshu, what happens is there is always a dilution of some from the cost point of view or some other reasons, or IRRs get diluted because of time as well as, let's say, cost overrun. So how do we actually make sure that we factor that in our financial analysis when we do the underwriting for the deal? And that's the capital allocation is based on the principle of what the theoretical IRR, but also the realistic IRR when we finish the project.
So we are very careful and now disciplined about keeping both these into account as we plan for the project. And that is non-negotiable, because it's critical that what we say at the time of underwriting and what we deliver at the time of possession and reflect on economics needs to be very close to each other. Now, to do that, we the second part of your question is your KRA. In the past, we had a very functional organization and in the last few months, we have started to change that. You'll see in our investor presentation, we have introduced the concept of Chief Business Officer for even our residential business. For IC, we had Raj, who's our Chief Business Officer for industrial. But now we have Vimalendra Singh, he's the Chief Business Officer for residential, south, west, and north. And we have Ashvin as the Chief Business Officer for south, especially Bengaluru, and we have a lot of projects in Chennai, in our Integrated City as well.
This is critical, because then you have end-to-end accountability. What you say in underwriting and what you deliver, you have the full responsibility. And this is also required from a scale-up point of view, because now we can have a regional org structure that allows us to work towards scaling, let's say, Mumbai, Pune, or Bengaluru specifically. Beyond these changes in the organization, we are also bringing people in to make sure that they are able to support our scale-up aspiration from a hands and legs perspective and the quality of support required. So I just wanted to keep it short. I'm happy to discuss in more detail, but this is how we're thinking about the capital allocation, and how we are thinking about the KRAs and the organizational bandwidth required to support the scale-up.
Okay, thanks, sir. And one small thing, Origins Ahmedabad is taking a lot more time, okay, than what was envisaged, okay? Any specific thoughts you have or what is the progress on that thing?
Yeah. Ahmedabad, right? Origins Center.
Yeah, yeah, yeah.
We talked about that we are ready to, so two options. We are either looking for a large anchor customer. We don't want to do a small one acre, two acre deal. Or we also shared our aspiration to even exit that, if we, you know, if you find the right buyer. The thing that I don't want to do, we want to do a fire sale. I think this land parcel is, you know, I would say, moderately attractive. It will become attractive in the next htree to five years, given how the utilization of our land parcel around that, and even the competition from the government part. But I don't want to do a fire sale because this has value, and hopefully we'll find the right partner, right customer over the next few, next few years. So that's, that's we are open to get an anchor customer, largest, or exit completely, for the right, but don't want to do a fire sale.
Okay. Thank you from my side.
Thank you. Participants, you may press star and one to ask questions. The next question is from the line of Shreyansh Mehta from Equirus Securities. Please go ahead.
Yeah, thanks for the opportunity. My first question is on Kandivali launch. Is it only the timing, you know, which we are looking, or is it also dependent on some approvals, you know, which might come in?
So I think we are waiting for the normal set of approvals. So it's not a question of if, Shreyansh, if you are trying to say, if Kandivali will get launched, it's a question of when, and it's part of routine approval that we seek from all the relevant authorities. So that's going on. As soon as those are clear, including the RERA approval, then we can launch. And that seems we had to redesign our timelines a little bit, given some of the changes that happened, but right now we are looking good on those revised timelines.
Got it. Got it. Got it. Sure. So secondly, in terms of, you know, the launches which you've lined up, say, INR 2,500 crore-INR 3,000 crore GDV, and the way, you know, Phase I has panned out, fair to assume, you know, we'll be crossing the INR 2,300 crore-INR 2,400 crore pre-sales mark for this year?
I think, Vimal, you want to. I think, pre-sales number we have not given for this financial year. We have given for next financial year, INR 2,500 crore pre-sales from Resi, and roughly INR 500 crore from the IC side. That's for the next FY 2025. I will stay in those guardrails to talk about what we have planned for next year. I will continue to update you on quarterly basis, how our pipeline is looking forward, so you have a good comfort on how the business is scaling up.
Got it. Got it. Sure. Sure, and so lastly, as far as our BD of INR 5,000 crore- INR 6,000 odd crore is concerned, can you break it in terms of Mumbai and specifically in terms of redevelopment?
Yeah. So let me just say, so typically, the just a split while I'll give you overall split. My thumb rule is 60, 20, 20. 60% from Mumbai, 20% from Bangalore, and 20% from Pune. Now, that's the typical. The redevelopment part is something that I'm constantly evaluating. They need to meet the guardrail that we have in terms of size, in terms of location, in terms of the number of members in the society, the kind of other commercial return that we can get from the fresh sale. All those are extremely important. But as we go forward, we also have the 60-20 already split into vertical versus horizontal versus other models. So that we are, but we are, those are ways to, you know, provide returns to our shareholders. I'm always looking for, is this a good project for us, from a brand perspective, from a customer perspective, and then does it provide commercial return to our shareholders?
Sure, sure, sure. And sir, lastly, any update on Origins Pune? When can we see that coming into pipeline?
It is still so we FY 25, we'll be launching Pune based on the latest estimates that we have. We had three issues there. One issue was about access roads. We have made a strong progress in the last quarter. The second issue is contiguity, it's a Swiss cheese problem. So we are working with our partners there to make sure that the Swiss cheese problem is addressed. And then there are certain approvals that we need to, because some new rules came up with respect to afforestation, et cetera, that we are in the process of sorting out. So those are three things. All of those are exciting. What's good about Origins Pune, OP, is that it's very close to Pune. The huge amount of interest that we are already seeing about, from prospective customers, prospective investors. So hopefully, as soon as we have solved all these three issues, we'll be able to get the launch done in a shortest period of time.
Got it. Got it. Thanks, and all the best. That's it from me, sir. Thank you.
Thank you .
Thank you. Participant, you may press star and one to ask the question. Next question is from the line of Ronald Siyoni from Sharekhan Limited. Please go ahead.
Yeah, good morning, sir. You know, I had just one question with respect to Citadel phase II launch. You know, if you can touch upon how the project's response was there, and, you know, versus the phase I, how, what kind of pricing did you see? You know, whether have you seen any change in the footfalls or conversion ratios? So, you know, just on the whole Citadel phase II launch.
So let me share a few things, Ronald, and let me just keep some more excitement for our next call. The reason is very, very, very important time for us. We launched it only, like, five days back, like, 25th, and it was a Metaverse and this drone show that we talked about. We have received a lot of EOI. The pricing is competitive. We have a very strong micro-market understanding of who the competition is, what they offer, and how can our price value equation is going to be stronger than our competitors, given it's an extremely nice, I would say, location. And as we had done very well in phase I, I think we want to take it phase II to the next level.
These are larger apartments, three and four BHKs. Very well designed, I must say, and it's a premium offering that we are providing there. So the market pricing is in line with, in line with the price value equation and the competitive information, competitive set that we have. The, there are roughly, I think, close to 300 units, have been launched as part of this. And we will have more, open up as, as we see the response. But, we are hoping for a super-duper response from this. In, in the last five days itself, we have seen very healthy EOIs already. Let me just stop at that. Hopefully, we'll have more to share in the next call.
On the footfall trends, like whether, you know, footfalls have been higher than, you know, previous launches, or, you know, there has been some lower footfalls, or what kind of interest in terms of footfalls have been there?
You know, early days, because just one weekend we've had, that too, with Cricket World Cup going on. So, the footfalls are healthy. They are much stronger than what we saw in the past. This was much anticipated, but I think I care more about conversion. So I think, the response from CP has been outstanding, let me tell you that. And if that is an indicator of how the pre-sales will stack out, I think we have good news in store for all of us.
Thank you very much, sir. Best regards.
Thank you, Ronald.
Thank you. Participant, you may press star and one to ask the question. As there are no further questions, I will now end the conference. Over to Mr. Amit Sinha for closing comments.
Very good. Thank you to everybody, all the participants. This is, I just want to thank all of your support, listening to us, but also supporting us from outside as we build our business, as we scale our business. As I touched upon the industry, this is a purple patch for the industry. We have seen strong pre-sales momentum, more on the sustainable side. Our launches are, more of the launches that we had planned are happening in the H2 of this financial year, and some of the still large-sized launches are planned in this second half of this financial year. Our business development effort continues to be healthy, in line with our aspirations of scale-up that we talked in the last quarter.
IC business, a bit subdued in H1, but it's a lumpy business. We'll see, the more, the LOIs that we have, the pipeline that we have, should get converted in the H2. So hoping, we have more news to share on that front. And the financials, as you know, we'll continue to work on that. You'll have a much better, the financial details as we finish the financial year, given the lumpiness of this industry, and the revenue recognition method that exists. Thanks a lot again for all your support, and look forward to speaking again, and best wishes to all of you for this, the serene Diwali and the festivities.
Thank you, sir. On behalf of Mahindra Lifespace Developers Limited, that concludes this conference. Thank you for joining us. You may now disconnect your lines. Thank you.