Good morning, one and all. Welcome to EZTEC results presentation for the third quarter of 2021. Please note that this call is being recorded and that all participants are in listen-only mode. By the end of this presentation, we will begin a Q&A session when further instruction will be given. In case any of you may need any assistance over the call, please let us know through the chat box. In case you have any connection issue, you may reuse the same web link or ID to return to the presentation. You may find that link or an ID as well as all the slides for this presentation at our website ri.eztec.com.br.
Before we start, we'd like to mention that any statements during this call pertaining to EZTEC business projections, operational and financial targets are based on management beliefs and premises, as well as on currently available information. Future considerations do not constitute an assurance of performance. They involve risks, uncertainties and premises. Investors may take into account that general economic conditions, industry and operational circumstances may ultimately affect EZTEC future performance. They may cause the company results to differ materially from those expressed in those forward statements. Now, I would like to pass it to Mr. Emilio Fugazza, EZTEC CFO and Investor Relations Officer, who will get us started. Please, Mr. Emilio, you may go on.
Good morning, everyone. Thank you very much for being here. Our conference call for the third quarter 2021. The main highlight for this quarter is about the launches 2021. Subject that Mr. Pedro will say a little bit more ahead.
Thanks, Mr. Emilio. Talking about launches, during the nine months of 2021, EZTEC announced the launch of four projects in the city of São Paulo. In the first quarter, we launched ID Paraíso, a project of BRL 28 million in PSV, focusing on smart living units in Aclimação. In the second quarter, we launched Dream View Sky Resort and EZ Infinity projects. The first one is a middle income project with BRL 253 million in PSV, located in Vila Prudente that was launched as soon as the sales stands were reopened in April due to the COVID situation. The second one was announced in the last day of the quarter. It is a high income project of BRL 675 million PSV.
We believe that this project will become a new icon for the city of São Paulo, and it's located in Paraisópolis besides the IBM tower. In the third quarter, we launched Arkade project , another high income project, in the Brooklin Novo with BRL 460 million in PSV. If you move to the next slide, we will talk about our operational performance. You'll be able to see that the launch and sales, as well as the construction sales became the most relevant components on the total volume of the third quarter of 2021. This fact is due to the lower volume of performance units available, which had a higher demand in the previous quarter.
The main reason for the increment in the sales of performance units that you see in the previous quarter was due to the inflation index, the INCC, that is making clients be more likely to make agreements with a prefixed index than being exposed to the construction inflation. For this quarter, cancellations will drop to BRL 32 million, with a 33% made up of relocated customers. About 33% of this volume refers to downgrades, upgrades, or units that were transferred that is also linked to a purchase of another unit or even the transfer of a balance already paid units for another property under financing. In the next slide, you'll be able to see how it's composing our land bank. Without new acquisition, the PSV is maintained by adjustment in the price assumption due to inflation.
As the company is already sufficiently equipped with raw material, and we're talking here about lands, for this stage of the cycle, there were no relevant acquisition in the third quarter of 2021. We finalized the quarter with a land bank position close to the previous one. As you can see in the chart in the bottom right, the majority of this land bank is well located in premium zones in the city of São Paulo. The maintenance of a residential land bank, it is equivalent to more than three years of launches, if we believe that the launches will be something close to BRL 2.5 billion. The sum of this PSV for the company, residential land stands at approximately BRL 7.4 billion at the date of this release.
This volume brings comfort to the company as it removes the urgency to make new acquisition to buy new lands. If we go to the next slide, where we're going to talk about the inventory map. You'll be able to see an increment in the volume of our inventory that is attached to launching or under construction units, especially when we're talking and we're looking to the south zone of São Paulo, where the company has made the majority of the recent launches. On the operational aspects, the deliveries of the products are marking the end of the most voluminous delivery cycle experienced so far by the company.
By the way, the company completed this quarter 358 units with a total of PSV of BRL 313 million, of which more than 90% are all sold. Indeed, the volume of ready inventory is concentrated in the south zone, but the majority of this inventory is commercial inventory. The majority of our ready inventory is located in Guarulhos region, more attached to Cidade Maia project. The volume of the finished residential inventory currently represents less than 11% of the company's total stock, and it should only increase by the end of 2023 when the products that were launched in the last two years will be concluded.
In the next slide, we will talk about the future launches of the company, and we can see that we're putting all of our efforts preparing the launches, new launches for the next months. As you can see, we have three new launches. In the bottom is a massive project for the middle income client near to the Rodovia Bandeirantes that is very similar to Cidade Maia project that was launched in Guarulhos in 2012. This one is inside the city of São Paulo, and it comes with 885 units and a total PSV of BRL 716 million. At the top of this slide, there are two smaller projects with an estimated PSV of 1 50 million and 45 million.
The first one is In Design Ipiranga, and it is a mid-high project with 150 units located in Ipiranga. Up!side Osasco on the right is a project for middle income with 702 units that is located in São Paulo metropolitan area, more specifically in Osasco. Now, I will pass the word to Mr. Emilio Fugazza to comment on the company's financial results. Please, Emilio, you can go forward.
Pedro, thank you so much. Hello, everyone again. Let's start talking about financial performance on the slide eight. The top left chart is talking about net revenues remain flat compared to the second quarter 2021, from BRL 289 million to BRL 298 million this third quarter. The good news or the bright side of this number is, the majority of the amount of these revenues are coming from the projects under construction, projects that we have already started the construction with good, very good sales. There is only one project, I would say, started, we started recognizing revenues here, which was, Dream View Sky Resort, Vila Prudente.
After six months, we launched the project. In this specific quarter, the amount of revenues coming from performing units are lower than the previous quarters. On the chart in the top right of this slide, gross profit and gross margin, this is one of the bright moments of this conference call in this earnings release, which means that gross margin achieved 50% in the third quarter since the bottom of the cycle, which was in fourth quarter 2020 of around 40%. This upturn in margins, this increment in margins, they happen specifically because of three main things. The first one is because of IPCA. IPCA is inflation adjusting the receivables, our portfolio of receivables units under construction.
Let me remind you that, adjusting the portfolio, we have something around 5% within three months of INCC. On average, a regular client, an ordinary client, has been paying to the company something around 35% on average of the total amount of the price within the construction time for our company. Because of this 65% on average of the whole amount of the receivables are adjusted by INCC without the counterpart of the costs. That's why we have this gap, I would say, this mouth being open in terms of margins since the fourth quarter 2020. The second factor is about the units performed, the units ready to live that we have been selling.
We are talking about units, for instance, in the city of Guarulhos, which is the majority of the performed inventory of our company. On average, the gross margin of this inventory specifically is more than 50%. Let me add one important matter that is the projects we have been delivering. In the third quarter 2021, we delivered three projects. On average, those projects came in with savings of 2.75% of the budget booked at the moment we launched the project adjusted by inflation. Which means that only produced an increment of four percentage points comparing second quarter 2021 to third quarter.
In terms of selling expenses, I think that is flat compared to the second quarter. The volume of expenses targeting publicity and the sales stand and mock-ups we have to do for launching the project was something around BRL 11 million this quarter. And the whole expenses meaning something around 4% of the total amount of gross sales we got this quarter in our company. On average, we are talking about something around 4% the whole year. G&A expenses about BRL 29 million in the third quarter, something flat compared to the second quarter 2021.
My personal opinion is that we are running this company in terms of G&A of about something around BRL 120 million of G&A expenses, given this, the two last quarter of expenses. It is most due to the incremental people we hired to support the incremental operations in our company, and eventually some adjustments in payrolls we have to do. Moving on to slide number nine, it's important to understand a little bit on top left the chart, the financial result. As we have been watching in the last, I would say four quarters, the volume of financial results is pretty high compared to the total amount of results coming from our company.
This is most due to the fact that we have a huge amount of a portfolio of performing receivables. Receivables that are provided by financing the clients. Instead of the clients searching for mortgages coming from commercial banks here in Brazil, they take the idea to keep the contracts with our own company coming from the shareholders' equity of our company. That is the majority of the result of BRL 43 million. Apart from this, one-fourth of these amount of results are coming from the cash and equivalents of our company.
These amount of money nowadays, the total amount of net cash position we got, which is of around BRL 1 billion, are yielding something around 100% based on Selic. Selic in the next three quarters, three months, I'm sorry, in the third quarter 2021, was something around 1.5%, and that represented something around 12 million reais of financial results, added to the portfolio of performed receivables. Equity income are results, the final results coming from the projects we got in partnerships, projects both in Casa Verde e Amarela project, low end, or even in the higher income classes. The majority of this 21 million reais result is coming from the project Reserva JB.
Reserva JB is the middle income project in the city of Osasco, the metropolitan region of São Paulo. This is the last phase of a bigger project called Parque da Cidade , a project itself of something around 700 units very well sold and with the budgets completely on track. Finally, talking about net income. Net income in the bottom left of this slide came in at BRL 145 million with a net margin of 49%. The bright side of this quarter was the majority of this result, this outcome is coming from the operational side.
We got good results from the operational side since the last quarter with an improvement in operational margins too. That's important to mention. Finally, results to be recognized for me is one of the most important things when we talk about financial performance. Because it's a kind of outlook of the future gross margin we're going to get from our company.
As you can see, since the third quarter 2020, we are remaining flat over 45, 44%, which means that even accounting for these incremental costs or this huge or complicated time we have been living here in terms of cost inflation for our sector, given the fact that we can't, I would say, increase the prices and selling the units too, we could see or we can see the margins at the same level as before. On page 10, talking a little bit more deeply about the portfolio of performed units financed by EZTEC.
At the end of nine months 2021, we see BRL 421 million from the start of 2021 of BRL 509 million, a decrease of about BRL 80 million. This is the majority of this because the amount of maintenance in advance or the migration from our portfolio to the commercial banks in the last nine months was higher compared to the yield and origination we could see. In terms of units, you can see something around 1,200 units being financed by EZTEC compared to the beginning of this year, something around 1,600 units being financed by our company.
In terms of conclusion, this is the bright side of this, of these figures. You can see something around BRL 23 million this year, representing something around 33 units compared to 27 units last year. I can say a bright side for this slide specifically because the IGP, which is the main index, inflation index, adjusting this portfolio was something around 30% in the last twelve months. 30% is huge enough to provoke a very, I would say, tricky moment to the clients in order to keep up with their installments. What we saw was a huge effort coming from them to migrate from our asset to the banks in order to keep without the delinquency so far.
On page number 11, I would like to highlight the performance of Fit Casa. Fit Casa is our brand to low-end segments, Minha Casa, Minha Vida segments. Minha Casa, Minha Vida are projects that on average we have been selling for BRL 200,000 per unit, something like that. In the city of São Paulo and also in the metropolitan region of São Paulo. On top left here you can see a chart providing net profit and gross margin. In the third quarter 2021, you can see BRL 18 million on net profits and the operational side can show you 53% of gross margin.
On the right side of this slide, on the top right side, the chart, the same chart can provide you nine months 2021, the total amount of net profit. The outcome provided by Fit Casa was BRL 43 million. Let me remind you that we are now talking about much more than five projects under construction or being delivered, and on average a gross margin of 50%. The return on equity, all in, came at 18% more than on average in EZTEC itself. Let me remind you guys that in last weekend, we delivered 500 keys to 500 clients for our very first project delivering this segment in this brand. In this bracket, which was FitCasa Brás .
Fit Casa Brás is the kind of projects we ended up with a gross margin above 50%. A very successful project for EZTEC. Only to remind you, even this project we started with an amount of gross sales no more than 24%, and we reached it by the end of this project, something around 94%. A project that we delivered much more than the expectations from our clients in terms of finishing, in terms of timeliness, in terms of quality of the project itself. That's why we have been counting on selling Fit Casa Brás, which better prices and trying to get better margins for the whole company.
Finally, on this slide on page 12, I would like to highlight the balance sheet, the exact balance sheet. On the right side of this slide, you can see BRL 4.5 billion of shareholders' equity. BRL 5.5 billion means that now we are running this company with an average 12% return on equity. We'd like to show you more. It's our expectancy, it's our outlook to see this improving specifically because the volume of the project launches, the volume of the sales we got so far today, we are going to see, without any kind of new sales, we are going to see more recognition of revenues coming forward.
In terms of assets, the main highlight, I would say that the 25% of this equity is about cash. BRL 1 billion in cash this company. From this cash, 60% of this cash is cash available for new investments to our company. 40% of this amount of cash equivalents are cash exclusively to be used at the construction of the projects. Are cash that the payments in advance of our clients or payments of our clients that we have to given the law we have to use specifically to the finish of the construction.
That's why, when you look deeply at the liabilities in our balance sheet, you only can see BRL 13 million of construction financing. Because in the last 18 months, we saw a huge volume of payments in advance coming from our clients. Clients that when they were running out from the INCC, the INCC was increasing so much, and running out of lower interest rates in our economy. That's why we saw many clients trying to, I would say, taking advantage of this, making payments in advance. Many projects, specifically in the higher income segments, we saw, on average, clients paying something around 50% of the total amount of the price in advance.
That's why nowadays we don't need or so far we haven't needed a huge amount of financing to fulfill the construction of the projects. Apart from that, let me remind you, when you see the assets, the land bank brackets showing BRL 943 million, means that all the grants, all the land, all the CEPACs, which means the grants or the bonds we have to pay, we have to buy from the municipalities in order to increase the potential of the land, are booked by costs. Saying that, this amount of land bank was bought on average five years ago.
I would say the pricing, the new pricing, if we were doing something like that in order to reevaluate our land bank, could show you something like 50% or 60% more than the cost booked in our land bank. These BRL 943 million means that that can represent BRL 11 billion in land, in potential sales value on land bank, the same number Mr. Pedro showed you before. In terms of the units on inventory, units under construction, we are talking about something around BRL 1.2 billion in costs for a total amount of inventory mentioned by Pedro before, of about BRL 2.5 billion.
I mean that the gross margin on these units under construction and inventory ready to use are about 45%-50%. That's why we are so confident to keep the margins at the level that we can show you at the backlog results. Saying that, I would like to open ourselves to answer any further questions you may have. Thank you very much for your attention today. If you would like to ask us any questions, please let us know by using the Raise Hand button on your Zoom platform.