Ladies and gentlemen, good day and welcome to DLF Limited's Q1 FY 2027 Earnings Conference Call. We have with us today on the call Mr. Ashok Tyagi, Managing Director, DLF Limited, Mr. Sriram Khattar, Vice Chairman and Managing Director, Rental Business, Mr. Aakash Ohri, Managing Director and Chief Business Officer, and Mr. Badal Bagri, Group CFO, DLF 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 this conference call, please signal an operator by pressing star then zero on your touchtone phone. Please note that this conference is being recorded. Now I hand the conference over Mr. Badal Bagri. Thank you, and over to you, sir.
Good evening, thank you for joining us today. We are pleased to report a resilient performance during the first quarter. This performance continues to reflect the underlying asset quality, disciplined execution, our brand strength, and prudent capital allocation across a well-diversified mix of development and annuity businesses. I will briefly talk about the operating highlights and thereafter the financial highlights. Overall collection for the current quarter stood at INR 2,406 crore. Operating cash flow continues to be strong at over INR 1,300 crore in the quarter. Consequently, our net cash position at the end of the first quarter stood at INR 15,200 crore, of which close to INR 11,000 crore is sitting in the RERA 70% escrow accounts. New sales booking for the quarter were INR 657 crore, reflecting the time impact of deferment of our launch of Arbour, our senior living product.
We are awaiting the final approvals and expecting them to be received over the next few weeks. Our rental portfolio stands at over 50 million sq ft and continues to operate at an industry-leading occupancy at over 95% in terms of space and over 97% in terms of value. Our revenue stood at INR 1,605 crore, yielding an EBITDA of INR 476 crore for the quarter. Net profit for the quarter was INR 794 crore versus INR 766 crore in the same period last year. It is important to reiterate here that given the current applicable laws and standards, we continue to follow a conservative practice of completed contract method of accounting, which reflects the recognition of revenue and profits from the projects once it is completed in that relevant period.
We strongly believe that FY 2028 would be an inflection point from a reporting perspective, wherein all our large products, starting from The Arbour, will start to contribute to the P&L, and consequently, we will start to unlock the significant gross margin potential that we have been highlighting over the last several quarters now. Just to remind, the gross margin potential as it stands today is approximately INR 39,000 crore. It is important to highlight that in the current quarter, in the month of July, we also got the operation certificate for our mall in Goa.
With this, all three malls in DLF Limited will be operational in the current financial year, leading to a significant increase in run rate of rental business within the DLF entities itself. As a result, from the current quarter, we have started reporting segment financials in DLF Limited, depicting individual performance of both development and rental businesses.
We have also added one slide in our presentation to show the combined scale of our rental business across DLF, DCCDL, and Atrium from this quarter. Moving to DCCDL, our consolidated revenue stood at INR 1,917 crore, reflecting a growth of 10% year-over-year, yielding an EBITDA of INR 1,474 crore. Net profit continues to be a strong performance of INR 717 crore, a growth of over 20% year-over-year. With this, I hand it over to Sriram to give you details of the annuity business.
Good evening. I'll very quickly take you through the rental businesses. I'll start with offices. Last two quarters, there has been a fair amount of debate on the impact of AI on the hiring of the various multinationals and GCCs and how it is impacting. From February onwards, the war between Iran and U.S. and the ever-changing dynamics there. These two did slow down the decision-making of the global companies because as you investors and analysts will appreciate, no one likes uncertainty. Last about four, five weeks, I personally see the green shoots of the international companies coming back and making inquiries and starting to take decisions. I believe that Q2 and Q3 will be good quarters from that point of view.
As Badal has just explained to you, the vacancy levels are very low, and fortunately for us, our newer projects, which is Cyber Park, Atrium Place, Downtown Gurgaon, Downtown Chennai, are nearly 100% leased. Our CapEx program on Downtown Gurgaon phase 2 and Downtown Chennai phase 2 are going at full speed. The leasing here in Gurgaon is about 40%. The leasing in Taramani, pre-leasing is at about 17%-18%, but as I said, we will see reasonable momentum in Q2 and Q3. The rentals in the portfolio grew by about 8.5%-9% from Q1 of FY 2026. In retail, as Badal mentioned, the three new malls, they are getting operational slowly. The one in Midtown Plaza is now fully operational. It's about 85% open with more than 97%-96% leasing. The Summit Plaza, we did the opening puja and soft launch yesterday.
We think it'll come to its full bloom in the next 2.5 months. That is also about 90% leased. In Goa, while we have got the OC, the finishing works are in progress, leasing is in progress, and we are targeting to open the mall in either end of this year or early next year. The retail business, the consumption in the first quarter, and the spend have been good. We have done as per our budgets or slightly better, and the growth from previous year continues, is about 13.5%-14%. We continue on our journey of sustainability and green. This is something which there is a relentless effort to do so, in addition to having zero tolerance to safety and compliance. Our profit PAT for the quarter in DCCDL was INR 717 crore.
It's a growth of more than 20% from the PAT of Q1 of FY 2026. It is slightly lower than Q4. That's because there was one-time entries of DTA and such other entries which sort of bumped up the profit to about INR 780 crore. Our rating from CRISIL and ICRA continue to be AAA. We have a reasonably fine rate of borrowing at the portfolio level. Our borrowing is for this quarter at a rate of 7.14%. I'll be happy to answer any queries as the analysts would have. Thank you.
Thank you very much. We'll now begin the question and answer session. Participants connected to the audio bridge may please 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. Participants connected on the webcast may click on Ask a Question tab and accept the prompt via Zoom. Post which, you may click on Raise Hand icon to ask your question. Participants, please announce your company name before proceeding with your questions. First question is from the line of Puneet. Kindly announce your company name and proceed with your question.
Yeah, thank you. This is Puneet from HSBC. My first question is on the pre-sales. While we understand you didn't launch anything, how should one think about the sustaining sales for Dahlias? That used to be almost 12 to 15 units every quarter. It seems this was a lower number this time. Is it a deliberate slowdown, or how should one think about this?
Okay. Mr. Tyagi, should I take that?
Yeah. Of course, Aakash. Yeah.
Okay. Puneet, see, we did about 34 Dahlias last quarter. Please understand that Dahlias has been the biggest success so far in the last 18 months. We are almost about 65% sold. We have created history in terms of the first nine weeks of sale, as well as if you see the kind of collections that are going on, plus the price realization of Dahlias is now over INR 1 lakh a square foot, and on higher floors about touching INR 120, INR 125 a square foot and selling. There is a certain amount of momentum. Also because the experience center now is going to be unveiled sometime after Diwali.
What we have done is that, I won't say it's a slowdown of sorts, but we have consciously, our presentations and all that are aware to that because as the algorithm of Dahlias states that the price increases now are going to be reasonably steep. The entry level of Dahlias is now INR 100 crore plus, and therefore, it requires that kind of an attention and time. Also, the good thing, let me tell you, is that we have interest from all over the country and outside for Dahlias now. Almost over 25%-30% of our business now is coming from rest of India and outside, which is NRI. As I speak, I'm in Kolkata for one of those important visits and meetings. There is a considerable amount of interest for Dahlias all across, and I can assure you that. That's where we are.
There is a process to Dahlias. It can't be sold like any other, say, even $500,000 or $600,000 US dollar kind of a product. It requires a reasonable amount of time and attention. Puneet?
Look, completely understand, Aakash. Completely understand. You guys have been doing a phenomenal job of it, so the expectation was similar. Should one assume that till the time experience center opens up, the sales momentum should be a tad slower than what you've delivered in the past?
Well, I'll tell you what. As I said, it's about per unit realization now. The prices of Dahlias, the lower floors are INR 100 crore, and it goes up to almost about INR 160, 70 odd crore right now. That is what the new price points are, and I think the people are getting used to that also. We have recorded some more sales this quarter, but obviously, I'd like to hold them on till I finish the paperwork. You will hear some very exciting news very soon. Some very new and good benchmarks being set, but you'll hear about that soon. Just give me little more time.
Yep. Understood. All the best for that. On the cost side, we are seeing a tad slowdown on a QoQ basis for construction cost, but on the land acquisition side, things have picked up. How should one read that?
Puneet, I think our cost from a construction perspective continues to be very stable and strong. Our average costs versus last year has definitely increased. Our momentum and trajectory remains very strong. On the land, as we have always maintained that as and when we come out with reasonable parcels which are of interest, we will definitely evaluate. We are in discussions from that perspective. Yes, we have made some advances on land in the previous quarter where we have got into some kind of an agreement with them, which is going to fructify over the next three or four quarters.
You spent about INR 545 crore in last two quarters. Anything you can call out on the quantum quality of this land acquisition?
Puneet, in all fairness, apart from, of course, contiguous land parcels, which could be an acre here and acre there, we are pursuing a couple of slightly more strategic parcels within Gurgaon. I think some of the advances have been towards that. There was also an INR 80 odd crore, which was a deposit for a certain auction, in the NCR region. The auction hasn't happened yet, but the 10% EMD of INR 80 crore was deposited. That's also being counted in this INR 545 of land. I think as some of these land parcels fructify in the next one to two quarters, we report them out, hopefully you will see these translating into additional GAVs.
Understood. That's very helpful. Last thing, Khattar on the Goa side, what is the leasing status?
We are, at the moment, about 64% leased as we speak, 31st July. The momentum is pretty strong. There are a number of brands who have not experienced the Goa market, and therefore, are taking a little longer to come. We are quite hopeful that we will cross 85%-90% leasing in the next six to eight weeks. The anchor fit-out should start later part of this month.
What are the rentals you're seeing?
The rentals, I dare say, are fairly healthy. The rentals are very different from cinema anchors, from retail, and F&B. Five categories have different rentals, but if you take the mall as a whole, which is 705,000 square feet, on a super area, we should earn a rental of about INR 170-INR 175.
INR 175. That's very helpful. Thank you so much, and all the best.
Thank you.
Thank you very much. Next question is from the line of Abhinav Sinha from Jefferies. Please go ahead.
Hi. Thanks for taking my question and good to see the steady cash generation. Khattar sir, first question for you on the CAM charges. Have you seen any impact of the recent revisions which have happened on the minimum wages and is there some pushback from the tenants on that?
Yeah. There has been a marginal impact on that. I would tend to think it's about 2.5% of CAM cost which has gone up. There has been no pushback from the tenants because this is a national law, and they themselves are facing these issues. They realize that what is there, and our transparent system in which we charge it, I don't think we are having any issues at all. To remind you, we are probably among the few companies who get the CAM charges audited annually and share it with our tenant partners, and either give a refund or take the extra depending on what the audited certificate says. It's really a passthrough that we have.
Okay. Sir, you mentioned on some improvement in the leasing activity that you're now seeing. This is the GCC clients or some other sort of demand that we are seeing now?
Yeah. This is basically the GCC and other multinational companies who probably were waiting for some signs of the Iran-U.S. war to sort of give some indications and then start making their decisions. This is where we are seeing the thing. The local Indian companies and normal ongoing expansion of the existing tenants have continued during this period. The big boys who come where, say, 250,000+ , 300,000+ , are the ones which have now started moving.
Aakash, just a question on the launch activity that we can expect. On Hamilton 2, have you sort of identified the product that we are going ahead with? Also if you can update us on the status of Arbour 2. Thank you.
Okay, thanks. First, Arbour, Arbour as you know, is a retirement policy scheme that we are going to be launching soon. This is in process now. As soon as we get the data, we will make those announcements accordingly. That is something that we're looking forward to most immediately. The other one that you mentioned is still on the drawing board. I'm happy to let you know that there is a reasonable amount of excitement in the market for the same. I'd like to leave it there, and as and when we finalize the product, we'll definitely come back to you all and talk about it. As of now, both have good level of interest going.
Just to reiterate, this is in line for the second half of the year, right?
Yes.
The Hamilton. Yeah. Okay. Thank you.
Thank you. Next question is from the line of Akash Gupta from Nomura. Please go ahead.
Hi. Am I audible?
Yes, sir. Go ahead.
Hi. Congrats on a steady set of numbers. Sir, so far my first question is on our land parcel on both the DLF and DCCDL side. I think some of your peers are expanding very rapidly into the data centers side of the business. Just wanted to understand, is there any thought process where we are seriously evaluating data centers so that we can monetize our land parcels a little faster? That's my first question.
I'll take that question, Akash. The data center business is a business of three different components which come together. One is real estate, the second is power, and the third is technology of the racks and how you efficiently store the data. Now, as DLF, we have decided to focus only in the business of real estate. We are constructing data centers for the companies as real estate developers, but not getting into the business of buying the technology and running the data centers ourselves, and we don't intend to do so.
Understood. Sir, my second question is, what is the status of our Goa project? Are we still on track for the INR 200 billion guidance in the event that the Goa project doesn't come through in FY 2027?
The Goa Mall project is definitely on stream, as Sriram pointed out to you. I think your question is obviously on the Goa residential project.
Yeah.
Yes, I mean, the Goa residential project, as you know, is involved in some sort of PIL form of litigation, which is not uncommon in that part of the country. In the morning only, Aakash and I did a recce check with each other, and I think we are on track to hopefully meet the plan that we had laid out at the beginning of the year. I think that the INR 20 billion number should ballpark still be on track.
Understood.
I'll just come in here, Akash. See, we've got all our approvals for Goa, as Mr. Tyagi mentioned about the PIL. We, as a company, I think we choose to be on the side of caution more than anything else. Nothing stops us from launching. I think that is something, before we create third party interest and all that, we needed to be very clear as to what path we're going to be taking. Goa itself, as you all know, when it started, it's created a huge excitement in the market. In fact, everybody else has kind of benefited with the potential prices that DLF was supposed to come in with. Whereas we choose to be first absolutely clear with our approvals and wherever this PIL is going before we actually accept the customer's payment. I think that's a call that this company has taken.
It's always a customer first approach. Akash?
Understood, sir. Yeah. Thank you so much, sir. That's all the question I had.
Thank you. Next question is from the line of Rahul Jain, from Elara Capital. Please go ahead.
Hi, sir. Thanks for the opportunity. Just one question on your Mumbai strategy. How should we look at it in the medium term? Is it your presence is going to be confined to just one micro market, or are there any active discussions that are ongoing, that you are evaluating today in Mumbai, which could be an advanced stage? Just color on that front. Thank you.
Thank you, Rahul. In Mumbai, as you know, Aakash had a spectacular launch last year, we should be hopefully coming up with a follow-through of that launch definitely within this fiscal year, possibly even within the calendar year. I think that is on track. Overall, the way the stars are aligning around that development, we believe it has the potential to be more than a 5 million square feet development over the next few years. That will be a sizable development in itself. To your second question, yes, we are alive to other possibilities in Mumbai. We have looked at some, we are exploring some as we speak, and if there's something interesting that does come up, we'll obviously report it. This project was supposed to be a dipping toes into water project for us. That would have done very well for us.
We do feel more enthused and more confident about being able to work out in Mumbai, but we'll be obviously very, very selective in terms of taking projects where we believe we can truly add value. In that sense, Mumbai continues to be a part of our medium and long-term strategy.
Got it, sir. Thank you.
Thank you. Next question is from the line of Pritesh Sheth, from Axis Capital. Please go ahead.
Yeah. Thanks for the opportunity. Couple of questions. First one, again on the Goa residential project. If in case it doesn't happen this year, and while we have reiterated our INR 20,000 crore guidance, do we have some other launches which can be replaced with that, or we are comfortable with whatever launches we have planned and can manage the sales target based on that itself?
Look, the Goa component of that 20,000, if at all, was just about a couple of thousands. It was around 10% of the guidance, if at all, it was a part of that guidance. I think, hopefully we should be able to swing it very comfortably. I don't think we should be losing any sleep on that number frankly.
Sure. Got it. That's helpful. Couple of questions on the annuity part. Firstly, on the group level rental income that I see, roughly INR 1,600 crore for the quarter. Is that the stabilized number for whatever operational that we have? I know there's Promenade Goa, which will contribute. There's 1 million square feet of your Atrium Place, which will also come up, but at least whatever is operational, is that the steady rent or there is some more ramp up to go?
There is a little bit of ramp up because the two malls, Midtown Plaza and Summit Plaza, are just about starting. We expect both the malls to get into steady rental state by the Q4 of FY 2027, and Goa to stabilize by about May, June of next year. That's one part. Secondly, you very rightly pointed out that Atrium Place, one tower for which we expect the OC in the month of September, we will get into steady state rental for that one full tower that is there.
Yes.
Other than that, it's otherwise a steady state and we expect this to be there.
Excellent.
Sure. Got it. That's great.
There'll be one more add-on. One will be the data center three in Noida, which will also add to the rentals sometime in March, April of next year.
Got it. That's helpful. Just second on the commercial piece, now that we are starting to see signs of recovery coming back in terms of leasing, what are our plans to start the next 11 million sq ft of development that we have lined up on the commercial plus retail side? More so specifically on the commercial side, where we have a large office coming up in Hyderabad and our first phase in Cyber City 2. When should we start building those into our numbers?
Let me answer that. We expect that Downtown 2 in phase 2 in Gurgaon should finish by about end of 2029. Then in addition to that, we have one iconic tower, which we call One Downtown, where we have a multi-level car park, and the car parks will get consumed in the phase 2 basements that are there. Then that tower is there. Similarly, in Chennai, the Tower 4 and 5, which are coming up for INR 3.5 million, will get over by the beginning of 2028. We have a sort of a runway to do. We have leasing of about INR 3.5 million , INR 4 million to do in these two new projects. Whilst it is on our radar to start the construction in Hyderabad or in Cybercity, I think it is sometime next year that we will start planning for that.
Yeah.
Perfect. That's absolutely. Thank you. That's it from my side. All the best.
Thank you. Next question is from the line of Samir Jasuja from P.E. Analytics. Please go ahead.
Hi, Sriram sir, just two questions I had. One is that, we hear a lot about Cyber City 2. I don't know whether it's been answered clearly. When is the likely commencement of projects starting to roll out over there in the Cyber City 2 project? The second question to you was that do you have a sense of the weighted average price of rental, say, on 100,000 or 200,000 square feet for the last three years? What has been the kind of price increase in Gurgaon specifically-
Okay.
or on your portfolio?
Thank you, Samir. I'll take the first question first. I presume you are saying about Cyber City 2, you're talking about the SPR.
SPR. Yes.
We have consolidated 70, 80 acres of land there. It is still on the drawing board. We have not yet taken a final call on either the sizing or the start of launch there. I think this decision also will be taken sometime in the next year. It is definitely on the horizon. It's only a question of timing.
Given there's so much-
On the rentals in Gurgaon, if you take the newer buildings, which is Downtown 4 and Atrium Place, Atrium Place rental weighted average is about INR 175, and Downtown 4 is about INR 150, INR 155. The leasing that we are doing in phase 2 is now averaging INR 200.
If you could tell me a building typically, say, seven years old and new building, what's the rental gap between them?
Yeah. The rental in Cybercity is now between INR 140, INR 150, and the rate in a newer building, which will come up after two years, is about INR 210, INR 220. You have a 30% gap, but a rental that will come two years later. On a like-to-like basis, the gap is about 20%.
Thank you so much. One question for Aakash. Sir, there's one question that I had with respect to Dahlias was, what is your visibility of, say, selling the balance stock in a time period of how much time period? That will lead to phase 2 opening up, right? Just to get a sense of that, I'd really appreciate to get to know that.
Okay. Samir, as you know that our targets for Dahlias of 3.5 years, we did in about 15, 16 odd months. As you know, the trajectory has been that the price increase of Dahlias, because we have this is an algorithm-based price increase, which increases with a certain quarter base and, of course, inventory typology based. What happens in Dahlias right now as we stand is that we have done almost all the lower and mid floors of south are gone. Most of the mid and low floors of north are gone. Some high floors have gone. Right now, for the trajectory, as we have planned it, we have another three years to go in Dahlias.
Dahlias is also, right now, as I see it, the demand is such that, I don't want to speculate, but post the experience center, I feel that there will be another spurt. As of now also, there are some good conversions that have happened, which I had said previously also will be reported soon. I think, Samir, there we have surpassed the expectation of at least the sales velocity of super luxury so far. Otherwise, there was a five-year process to selling Dahlias, year-on-year, basically about 20% a year. Since we are now over 60% sold in this time, I think, and also people have to kind of get used to the new price points of that area. I'll give you a small example. There are two brothers who are living in the Golf Links right now.
One bought Dahlias about 10 months back at a certain price. The other didn't. He passed that opportunity, but he wants to do it now. There is already, say about INR 30, INR35 crore upside there. That particular thing is a question for him. As the process goes on, I feel the price will settle down. People will kind of get used to these kind of price points now, because it is not only about the price, but the amazing amount of value that it brings with it. Since people have experienced The Camellias and, of course, Aralias and Magnolias, the future of the DLF Golf Links, and I say it emphatically, it is the Beverly Hills of India, and it will continue to create that demand going forward.
Our business is coming from not only within the Delhi NCR, but also from rest of India and rest of world. It has become a choice of destination for people. I feel that we will sell out sooner than later, but we don't want to compromise the price realization to velocity, Samir.
Yeah.
Just to follow up on that question, that was my precise question going forward. Since we have been very fortunate, thanks to you and DLF, we've been able to achieve a great price appreciation that was unexpected in the last 15 months in Dahlias itself. Now that we've got a very good price appreciation, are we going to compromise on sales velocity to price appreciation, or try to take the prices higher? It's going to be the other way around now that the project has got literally revalued, right? The profitability would have also increased substantially. Going forward, since we have two more phases left here, we can look at a higher sales velocity, or we're going to look at holding off higher sales velocity because of further price increases?
Samir, two points. One is, I don't think there's a direct binary, at least in The Dahlias.
There's no correlation?
Hello? Can you hear me?
Yeah, I can hear you.
Okay.
There's no correlation is what you're saying.
No, I'm not saying there's no correlation. I'm saying there's no direct binary, in that sense. It's not like a 1: 1. It's not Y is equal to FX. Yes, there is some correlation, obviously, but there is a price matrix that has been planned, and there's a pace of sales that's been planned, and obviously it's an iterative process. The second thing about the next phase, as you are saying, that is not just dependent on the sales. There's the small matter of constructing Dahlias also. That is a process that will take between 3 to 3.5 years to [inaudible] You must have seen the site. It's still coming up to the raft level.
I think the next phase, as and when it happens, will be a function of both where the physical progress of Dahlias is and where the commercial progress of Dahlias is. I think, clearly to Aakash's point, we are looking at least a three-year cycle before we are able to completely sell out Dahlias, in that sense.
Okay, perfect. Thank you so much.
Thank you.
Thank you very much. Next question is from Parvez Qazi from Nuvama Group. Please go ahead.
Hi, good afternoon and thanks for taking my question. Two questions. First one for Aakash. By when do we expect the next phase of launch in the Privana ecosystem? A related question, do we have plans to do some plotted development there also?
Yeah. The Privana, Parvez, right now will definitely be early next year. If not last quarter, I think it'll be early next year. The Privana ecosystem's coming out pretty well. We've got the southwestern, now north, as you know, it's all sold out. Not only that, some very encouraging news coming from the Privanas, is that there is a good amount of appreciation. Again, that is not something that I'm saying it for the point of view because there is even demand in the secondary sale, which is between INR 2,500-INR 4,000 a square foot already. That entire ecosystem with its infrastructure and everything has come out pretty well. As you know, it abuts a 10,000 hectares of a green land. As far as a contiguous nature of a project is concerned after DLF 5, this is the next big thing.
Therefore, I'd like to bring out the fourth phase once we move on with construction and everything else, which also thankfully is going on pretty well. I see that happening early next year for Privana. As far as plotted is concerned, those were some arrangement that we had with what you may be referring to is, there isn't going to be a plotted scheme, if you're asking. That is a separate arrangement that we had with some collaborators. I think right now, you will expect the next Privana to be maybe taller or more evolved one than the north, and that is the process as we moved on. So far so good. It's got a very eclectic mix of people who bought into the Privana. You've seen our collections there, you've seen the progress.
It's high on demand as far as the investors are concerned.
Again, just to reiterate, Parvez, Privana continues to be a high-risk scheme. The small plotted enclave there, if at all, will be only for some collaborator obligations, nothing else.
Sure, sir. Thanks. Second question for Khattar, sir. What would be our exit rentals for FY 2027?
The exit rentals for FY 2027.
At a group level. You don't need to go into DLF plus.
They will be between INR 7,300 and INR 7,500.
Sure, sir. Thanks and all the best.
Thank you.
Thank you.
Thank you very much. As there are no further questions, I would now like to hand the conference over to Mr. Ashok Tyagi for closing comments.
Thank you once again for logging on to our call. I know today's been a crowded call calendar for some of you, that's fine. This quarter from a pre-sale standpoint was a muted quarter, thank you for understanding the reason for that. Hopefully, we still stick to our broad guidance for sales for the year. The focus that we have on cash flows and embedded margins and fiscal prudence, that continues. You would continue seeing some strategic land investments as the clock moves. The rental business is continuing at an excellent clip, both in the commercial leasing and in the rental piece. The point that some of you raised, really, I was doing my math, I think between Downtown Gurgaon, Downtown Chennai, Atrium, I think we have almost in excess of 11, 12 million square feet under construction.
Once these are complete, there is a further few million square feet in Cyber City itself. Of course, there's Hyderabad, there's Cyber City 2 and all of those things. Really, the Rentco has a very deep pipeline, frankly. I think it's possibly the deepest pipeline in the rental business that exists in the country. I think we continue to do it very strongly, hopefully, we now will regroup at the end of the next quarter. Thank you once again.
Thank you. Thank you.
Thank you.
Thank you very much. On behalf of DLF Limited, that concludes this conference. Thank you for joining us. You may now disconnect your lines. Thank you all.