Ladies and gentlemen, welcome to the Q2 FY 2025 results conference call of Puravankara Limited, hosted by Emkay Global Financial Services. As a reminder, all participant lines will be in the listen-only mode, and there will be an opportunity for you to ask questions at the end of today's presentation. Should you need assistance during the conference call, please signal an operator by pressing star then zero on your touch-tone phone. Please note that this conference is being recorded. I would now like to hand the conference over to Mr. Harsh Pathak from Emkay Global Financial Services. Thank you, and over to you, sir.
Thanks, Sagar. Good evening, everyone. I would like to welcome the management and thank them for this opportunity. We have with us today Mr. Ashish Puravankara, Managing Director; Mr. Abhishek Kapoor, Executive Director, Group Chief Executive Officer, and Chief Financial Officer; Mr. Neeraj Gautam, President, Finance; and Mr. Vishnu Moorthi, Senior Vice President, Risk and Controls. I shall now hand over the call to the management for the opening remarks. Over to you, gentlemen.
Thank you, Harsh. Good evening, ladies and gentlemen. Thank you for joining the company's earning conference call to discuss the performance of the second quarter and first half of financial year 2025. The results and the comprehensive presentation are available on the stock exchanges. We hope that you have had a chance to review the same. Now, let me first start by giving the macroeconomic and industry outlook. The Indian real estate sector continued to experience a robust demand, with tier one cities witnessing a steady demand, while tier two cities are emerging as a new investment destination. FY 2025 is poised for the robust growth driven by the country's strong economic performance, rising demand across residential, commercial, and industry segments, increased urbanization, infrastructure development, and favorable government policies are boosting home buyers' confidence. Now moving to the operational highlights for the quarter.
In Q2 FY 2025, our sales were INR 1,331 crore, while sales volume was 1.53 million square feet. Customer collections for Q2 increased by 18% year-on-year, and for H1 by 27% year-on-year, indicating improving operating efficiencies. It is important to note that collections have increased significantly, growing from around INR 350 crore per quarter in FY 2022 to a current quarterly run rate of INR 1,000 crore approx. Average realization was 9% higher year-on-year to INR 8,697 per square feet because of the mix of inventory, while Puravankara and Provident saw increase of 17% and 15% year-on-year respectively. Our sales across projects were led by Puravankara Limited with INR 612 crore, Provident Housing at INR 628 crore, and Purva Land contributed INR 90 crore. Puravankara maintained its substantial sales velocity with 17% higher realization.
At Provident, sales realization have risen by 15%. With new launches planned in H2 FY 2025, we anticipate growth in sales. While Purva Land, the sales value was lower due to no new launches during the quarter. The geographical contribution for the first half was Bangalore share of 56%, followed by Chennai at 18%, Mumbai and Pune at 11%, and Kochi at 11%. On the delivery front, in Q2 FY 2025, we have given position of 591 units and with area of 0.77 million square feet . In H1 FY 2025, we have given position of 1,520 units with area of 1.92 million sq uare feet for the Puravankara Group.
Our launch pipeline for the company is robust, with approximately 12.27 million sq uare feet of new planned projects and 3.44 million square feet for new phase launch, totaling to 15.70 million sq uare feet. Mumbai and Pune together constitutes 49% of the planned projects, marking our strategic expansion in the rest of India. On the business development front, the company acquired the redevelopment rights of a prestigious society, Miami Apartments, at Breach Candy in Mumbai, spread across 2,000 sq m of land. This marks our entry into upper luxury South Mumbai market, where rates are estimated in the range of INR 1.25 lakh- INR 1.40 lakh per square foot of carpet area.
Additionally, the company expanded its footprint in the Lokhandwala and Andheri West, adding a new cluster of societies with a potential of GDV of INR 700 crore to its existing development projects, bringing to the total land area in the region to around 4.3 acres, with a combined GDV of INR 2,350 crore for the project. The company also signed a JDA for 1.95 acres land parcel at a prime location in Electronic City market in Bangalore. The land parcel is adjacent to Purva Western project and will have a deliverable area of 2.6 lakh square feet with a potential GDV of INR 250 crore. Coming to our debt management, our net debt stands at INR 2,430 crore as on September 30th, 2024, with the net debt-to-equity ratio at 1.29.
Our cash and cash balance was INR 939 crore as on September 30, 2024, which indicates the strong liquidity profile, ensuring stability and operational continuity. We have consistently focused on reducing the debt per square foot of our under-construction area, which is stood at INR 928 per square foot, ensuring the effective optimization of financial resources in our project. It is important to note that debt per square foot under construction area has reduced by 26% to INR 928 per square foot as of September 2024, from INR 1,248 per square foot as of March 31, 2022. Our cost of debt stood at 11.62% as on September 30, 2024. Now, let me highlight our financial performance.
In Q2 FY 2025, our total revenue grew by 36% year-on-year to INR 520 crore, and revenue for H1 FY 2025 grew by 67% year-on-year basis to INR 1,195 crore. Our EBITDA margin stood at 28% for Q2 FY 2025 and 24% for H1 FY 2025. We had a net loss of INR 19.88 crore for the quarter and INR 5 crore for H1 FY 2025. Also, we want to highlight that a total of around INR 945 crore has been invested in land with a potential gross development value of INR 9,700 crore from 5.8 million square feet of new business. This showcases our robust pipeline of new business being added to the company's future growth. In conclusion, Q2 FY 2025 has seen sustained financial performance with a strong collection. We are expanding our footprints with new projects across India, delivering exceptional value to our customers and fostering long-term shareholder value. Thank you for listening.
Now we can open the floor for the questions and answer session. Thank you.
Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on their touch-tone phone. If you wish to remove yourself from the question queue, you may press star and then two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question comes from Deepak Purswani, from SVAN Investments. Please go ahead.
Good evening, sir, and thank you for the opportunity. First, sir, wanted to get the sense, what was the GDV of the project which was launched in H1 FY 2025? We had launched two projects, Bayscape and Botanico. And what was the contribution of new launches in the total pre-sales of INR 2,500 crore in H1 FY 2025?
Okay. Just to clarify, Bayscape was actually launched towards the end of the quarter. We just got the plan sanctioned. The total launch contribution in the first half of the year has been INR 171 crore approximately. It has been the new launch contribution versus last year where the new launch contribution was INR 700 crore. What has happened really technically is, sorry, INR 148 crore was the contribution this year versus INR 700 crore last year. The GDV for Bayscape and for the other project.
Botanico.
Botanico, in fact, was launched in the previous year, in the March quarter last year. Botanico was not launched in this year. Total GDV for Bayscape that has been launched is about INR 450 crore.
Okay. Just on the launch pipeline front, in the presentation, we have mentioned we are planning to launch inventory of [12.27 million square feet in H2 FY 2025]. First question is, what would be the GDV of this launch inventory in H2? Secondly, at what stage are we in terms of approval stage, and have we got any approval out of these at the current juncture? Are we RERA ready at any project at the current level? Just continuing on that, how many of them are currently ready to launch, and what has been the response to this festive season during October, if there is any new launches?
Right. For the new launches, our expectation is in the current quarter, and the next quarter we will launch. The GDV of the launch pipeline is approximately INR 13,600 crore, of which we are expecting to totally open for sale approximately INR 8,000 crore. What we are expecting is the sustenance sales plus this launch pipeline of INR 8,000 crore, which we will open for sale will contribute for the rest of the two quarters in terms of the sales numbers. As far as the status of these projects is concerned, all of them are at a very advanced stage of either plan sanction or under RERA, and we are expecting that because we have not taken any of these projects to market so far.
However, our understanding is that because majority of these projects are actually in Bangalore and Mumbai and one in Pune, and of course in Kochi, we are expecting good response on these projects because of the location of these projects and the way the projects have been designed. As I said, of the INR 8,000 crore , we can do our own assumptions on what we would expect to sell in the last two quarters. From RERA readiness, obviously, once we have the plan sanction, we go into RERA and then take it to launch. But our target is to push these projects into the market within this quarter and the next quarter. Actually, the delay has happened on account of almost a quarter that got lost during the election process. The plan sanction across the country was kind of deferred in that sense.
That's been the challenge.
Okay. Finally, just wanted to understand the broader management thoughts towards the strategic direction on the debt to equity. I'm coming more from the point of view, a few years back, we had a net debt to equity less than 0.9x and absolute net debt less than INR 2,000 crore. And today we are at 1.3x with absolute debt of INR 2,500 crore. While I do understand our debt per square feet has reduced below INR 1,000 crore because of the business development equity, but just wanted to get this, and even on the absolute debt front, what would be the peak level of debt we would be looking at out, and what will be the peak level of net debt equity that is a cap which management is thinking at the current juncture?
Look, as far as debt is concerned, you're right. And when we talk about debt per square foot, we talk about not of acquired land, but of land which is under development. So I'd just like to add that this is debt which is getting serviced from ongoing projects and not from other land which is being purchased. That is one. Second is from the point of view of debt, the way we look at the debt, and we've had this conversation in the past, and our ideal goal is to keep it sub one. Obviously, temporarily it may go up and down because it's a way of business. There are multiple action points that we take or undertake to bring the debt down, because that's a constant process.
Our goal will be to maintain similar absolute number of debt over a period of time, and eventually, because we can't compromise growth at this point in time. However, over the next two to three years, we would anticipate that we'll reach a stage where this debt number will become irrelevant for our conversation because we believe that more and more collections will come in, more and more cash in hand will happen because larger number of projects will be on the floor. The sales volume will go up. Therefore, over a period of time, our goal obviously always will be to keep debt ratio under one. Having said that, at net debt level, at some point in time in the next three years, we would expect to bring it down further, in terms of the net debt level.
The goal is that once we've reached a certain level of growth, then we'll focus only on bringing the net debt down towards zero. In fact, that could be our goal over the next three to four years time frame. Having said that, the debt will always remain in the book. But the cash collections will improve, cash in hand will improve, given the quantum of business that will be going on, and therefore, that picture would look different.
Thank you. Thanks a lot, and wish you all the best.
Thank you.
Thank you. The next question comes from Krishna Shah from Ashika Stock Broking. Please go ahead.
Yeah. I quickly wanted to understand the consumer mix that we are having. How many of them are the end users and how many are investors at this point?
Look, from our point of view, all of them are end users because we don't do any bulk sale, any multiple unit sale. These are all customers who are buying homes, either upgrading or first-time. In fact, the Provident Housing is largely around first home buyers. Puravankara has a mix of first home and a mix of upgrades. Generally, that's what happens in Puravankara. Purva Land is an investment product in that sense, if you want to look at it, where people eventually, they're investing in land with an objective to building their homes. We haven't seen much of resale happening from the Purva Land perspective at this point in time. I would say more than 90% of our business is coming through end user, and they are all availing some kind of loan to transact with us.
Got it. So what would that percentage be in terms of, let's say, X percent of home buyers are taking home loans? If you would have that.
We don't have data, but we don't have it handy because it has changed a lot. Post-COVID, we had a period where more than, in fact, 40% of customers were paying from their own contribution because there were a lot of savings that customers had done, and that number slowly has gone back towards more and more people going towards a loan. I would hazard a guess, but we can give you a specific number. My hazard guess is, and don't hold me to it, would be approximately 80%-85% of our customers are currently taking loans.
Perfect. Got it. One last question. Are you seeing any pricing pressures in any of the micro markets that we are in?
No. In fact, if you see, at least as a brand, in our case, as Neeraj mentioned in opening remarks, we have seen last year to this year, price appreciation in sustenance projects of between 15%-17% between Purva and Provident. Also what we have seen is that with the increased prices, our sustenance projects sales have gone up by about 14%. So, on an overall basis, as far as Puravankara and Provident, or Purva and Provident and Purva Land as a brand is concerned, we are not seeing that as a challenge.
Got it. Thank you. This was helpful.
Thank you.
Thank you. A reminder to all the participants, if you wish to register for questions, please press star and one on your touchtone phone. The next question comes from Anoushka Roy from Trade Brains. Please go ahead.
Hello. Thank you for this opportunity. So first question I would want to ask is why did we see a weak quarter this time? And if you could give a guidance for the upcoming quarters in terms of revenue and EBITDA.
Look, when you are saying weak quarter, are you referring to sales numbers or you are referring to revenue numbers? Because revenues have gone up significantly.
I'm referring to the sales numbers.
Yeah. As I mentioned earlier, we have not had any launches. Last year, during the first two quarters, we had INR 700 crore worth of new launch sales that had happened. This year, that number is down to INR 148 crore of sales from new launches. Majority of our sales has come through sustenance projects. This lack of new launches is where we have kind of, however, I must admit and mention here that the price has gone up, and even then we have seen increased velocity of sales. The focus really, I think, for the team, and this has largely happened on account of deferment of these launches and mostly on account of administration being busy almost for a quarter, on account of elections, et cetera, and some of those disruptions.
Having said that, I think we are all, as an organization, focused on now getting these launches done in this quarter and the next quarter. We'd like to believe, as I mentioned earlier, we'll open about INR 8,000+ crore of inventory for new launch in this quarter and the next quarter. In fact, majority being in the last quarter, because of these delays that have happened on the approval side, which was beyond companies. In fact, the entire industry has seen this, and I'm sure you might have heard this across the board. That's why the inventory levels across the board are also pretty down. Because at least in the markets that we're present in, we have seen some of these challenges come through.
We are expecting these INR 8,000 crore of new launch opening for sale, and we are quite optimistic with the performance expected by the end of the fourth quarter. Of course, sustenance projects will continue to perform.
Okay. All right. I had one more question, actually. Recently, you had with the redevelopment of certain projects you have entered into the western India. I just wanted to ask, are there any other expansion plans in the H2 of FY 2025 and FY 2026, specifically in the tier two cities or northern region of the country?
Look, as far as west is concerned, our redevelopment strategy is really focused on Mumbai and only Mumbai. We have acquired three significant redevelopment projects in very prime locations of Mumbai, in the western region, in Lokhandwala, in Pali Hill, Bandra, and in Breach Candy. In fact, in the coming two quarters, we are anticipating we should take Thane and Lokhandwala to market. That's our target before 31st March . As far as entry into tier two and northern region is concerned, we are definitely keen on NCR as a market, but we are very cautious and we are now putting team on ground to understand and look at acquisitions. So it's a longer journey. But tier two cities, we have no program at this point in time as far as Purva and Provident is concerned.
Not currently, because we want to really narrow down and focus on the larger markets, which contribute almost 80%-85% of the business across the country, so that we can get more market share in these markets, and those are basically Bangalore, Chennai, Hyderabad, Mumbai, Pune and NCR, as and when we start scaling up there. But in other cities, it will be opportunistic where we are already present, which is Kochi, Coimbatore, Goa. We will continue to be opportunistic in these markets. But focus will continue to be between Pune, Mumbai, Bangalore, Chennai, Hyderabad and NCR.
Got it. Thank you.
Thank you. Participants, you may press star and one to ask a question. The next question comes from Chintan Mehta from Puniska Family Office. Please go ahead.
Thanks for the opportunity. Sir, I want to know some things about commercial projects. You mentioned looking for INR 400 crore -INR 500 crore of rental income. If you can throw light on the project and time-wise contribution of it.
Currently, we have about a total of 3 million square feet, which is plan approved, of which we are expecting to complete about 2.2 million square feet, 2.3 million square feet in the next financial year. From the 2.3 million square feet which will be completed in the next financial year, we are expecting a rental income of about INR 150 crore. The balance will come in the following financial year, once we complete the balance phase of different projects. For the larger portfolio, our target is, of course, to get a rental income yield over next five years of INR 500 crore. The target's coming from the fact that we're looking at a robust acquisition pipeline of projects where we are working on more city center projects, and as and when we complete these acquisitions, we would like to share it with you.
But yeah, the target and the strategy there is to look at city center prime location projects, where we will expect more and more capital appreciation over a period of time.
Okay. Sir, in five years, we are looking for INR 500 crore. Correct, sir?
Yeah. In the next year, we would expect by next year, financial year, March, we should get to INR 150 crore. The year after, we should get to about INR 200 crore by the end of the year, or six months later, I would say possibly by October 2026, is what we are expecting. That will get us to the year after next to about INR 200 crore. Then there will obviously be a gap because the new acquisitions that we will complete in the next 6- 12 months timeframe will take us about three years to bring it to. The next phase of rental income coming in will then will be about another 2.5 years or to three years away. Over four to five years timeframe, you will expect us to achieve this.
Sure, sir. Sir, do you have any other land or more space specific to the Aerocity commercial project?
We are currently working on, as I said, on more land parcels between Bangalore and Pune and Mumbai at this point in time, and Chennai, in fact. But we will make those announcements once we complete those acquisitions.
Sure, sir. Sir, we are searching for any other opportunities like data center or logistic park or to monetize our land bank, or we are looking for only residential and commercial?
No, we are absolutely clearly focused on residential. Our residential portfolio cuts across INR 30 lakh a unit to now INR 35 crore- INR 50 crore a unit. We are very focused on that. Secondly, our absolute clear focus is on commercial office. Ancillary retail will always be there with office and residential development, but these are the two asset classes currently we are really focused on. I think we are a fair distance away from evaluating any other asset class at this point in time.
Sure, sir. Sir, any update if I need or something throw a light on Starworth or our pre-cast facility. Do you have any plan to monetize it?
I think we are investing in the business at this point in time, to strengthen the business. I think once we reach an optimal scale where we believe that it can create significant value for the organization, we will evaluate it. But currently, I think really the team is focusing on building the business. So it is too early to have any discussion on any of these.
Sure, sir. Thank you so much, sir. All the best.
Thank you.
Thank you. Participants, if you wish to register for questions, please press star and one on your touchtone phone now. The next question comes from Deepak Purswani from SVAN Investments. Please go ahead.
Thank you, sir. Thank you for the follow-up opportunity. Sir, just wanted to check it out, in terms of the total pre-sales of INR 2,500+ crore in H1 FY 2025, what has been embedded margin in this pre-sale, embedded EBITDA margin?
I think I mentioned this in the past, that our project level margins range from anywhere between, on the JDA side, as low as 16%- 17% to as high as 35%- 40% for Purva Land. That's the range of margin. But if you look at an average, we would land up at about a 30% margin, between EBITDA margin between 28% and 32% on an average. That's the range that we normally land up with because of the mix of both the JDA outright and the kind of projects that we are selling, whether it is Purva, Provident or Purva Land. That's the general range with which we operate, and that's the general margin that you can assume in the pre-sales numbers.
Okay. If you can also throw some light specifically on the Mumbai region, how should we look into the embedded margin, in the project like Thane, as well as the redevelopment project, which we have backed recently, in Lokhandwala as well as Pali Hills?
If you were to look at Thane, EBITDA margin would be about 30%. If you would look at the redevelopment project, the EBITDA margin will be anywhere between 23%- 24%. I think it also, because we believe that Mumbai as a market is a very stabilized market, and the markets in which we have done these acquisitions do not have that quality of supply that we have brought into the market. For example, if you see Pali Hills, this is a 2.5 acre project. There is no 2.5 acre land available in Pali Hills. If you look at Lokhandwala, the entire redevelopment space that is there, we are doing a cluster development. In that location, technically, there are only three developments. In fact, only one other development. In that particular location, only one development which is other than us.
In that sense, and the kind of development we are doing, we believe that positions us uniquely. The advantage with Mumbai, and of course Miami, and I should mention that this is right next to Breach Candy, and the kind of location you have is again, very significant. It's overlooking Breach Candy and then directly to the sea. What we are seeing increasingly is the demand coming in from the society residents itself, in advance. We are not taking bookings, but we're getting messages and we're getting requests to inform at the time of launch. Of course, from generally in the market, the feedback for us has been very positive. So we'd expect Bombay to contribute significantly, and we would expect these kind of margins to be available to us between 20% - 24% for a redevelopment project, and in Thane about 30% EBITDA.
Okay. When you say specifically for the redevelopment margin of 23%-24%, if you can also share what are the realizations which are underwritten in these two projects, for the Pali Hill as well as for the Lokhandwala?
In Lokhandwala, we would expect anything between INR 36,500-INR 45,000 a square foot. That would be the range of pricing, depending on floor rise, PLC, et cetera. For Pali Hill, we would expect an average realization of anywhere between INR 105,000-INR 115,000 a square foot.
Okay. Got it. Secondly, if I want to look specifically at these big ticket size of project. Secondly, if I were to look into these big average ticket size of project, for the redevelopment, historically, our experience has been, in the other market where the ticket size has been up to INR 2 crore or INR 3 crore, whereas in this region, ticket size are significantly higher. If you can throw some light, is there any change in the sales and marketing or business development efforts when we would like to sell these projects?
Again, I think our business is about location and demand supply. If you look at Mumbai as a market and the location we have picked up, Thane, for example, you mentioned, and then I'll come back to the redevelopment. There is no other plot on that main road at that kind of location. In Lokhandwala, there is only redevelopment opportunity, and as I mentioned, there's only one other development in that area which is coming up because there is nothing available in that market. Then you have to go to Versova, where you have only smaller developments, which are not more than INR 75,000-INR 100,000. The layout we are developing will have a sale potential of almost INR 6 lakh a square foot, which is significantly different. Again, similarly, as I mentioned in Pali Hill.
Here, in all of these projects, which are prime locations, Puravankara as a brand has got great amount of traction. It is not the first time, honestly, that Puravankara or Purva is doing business in Mumbai. In fact, the business was founded in Mumbai, and the chairman and the founder started the business in Mumbai, and there is significant traction as far as the brand is concerned. We have demonstrated this in Chembur already. If you see Chembur itself, it is technically not Chembur, it is technically Deonar. But in that market for that location, we command a 15%-20% premium from most of the developers in that market. This is already demonstrated and delivered. Now, what we are doing is, we are taking the kind of products that we have done projects, of course, very long back, in Mumbai market.
Having said that, I think the team that is there today in the western region is an extremely strong team. Not to mention that the promoters are from Mumbai, and their significant professional experience in the organization in the Mumbai market. Because of the brand and the reach that the team has already structured, we are seeing significant interest. From sales and distribution, the distribution will clearly be channel partner-focused, and the sales is very unique in Puravankara in the way we approach and we are transparent, in terms of how we demonstrate our product. If you go to our Chembur sales gallery, we have a construction museum. The kind of transparency and service standards we approach our customers with, has created that brand reputation already for us in Mumbai.
We believe that going forward with that kind of brand reputation, service, and quality which we bring on the table, along with transparency and service standards, will make a big difference in terms of our sales. Our focus will be, of course, because we are all over India, we have large AOP partners who work with us, who have signed AOP transactions with us for the year and have commitments. We have very strong network of local channel partners who are related with the brand as well as with the team. I think we have significant presence over there, which is already demonstrated in the increase in sales.
If you see last year versus this year, the sales increase, what we did in the last whole year, we have already done in the first six months of the business in the first half of the year in the western region. That kind of growth which has happened, has happened on account of the quality of work that the team is doing. We are very confident and optimistic and excited about our new launches in Mumbai.
Okay. Then, moving to the HDFC platform deal, if you can please update us in terms of whether we have received the money on that platform, and has this money been deployed so far, and what has been the quantum so far deployed on that platform?
So far, we have deployed INR 417 crore. That has been deployed between two projects, and we are expecting to deploy another approximately INR 300+ crore very shortly. We will, once we deploy that capital of the INR 1,150 crore. As soon as we deploy, we will make the required announcement. Yes.
So far, entire deployment has been on the existing land bank, or it is from the new development as well?
New acquisitions have happened. Of course, unlocking of some of the older land banks is also happening. So the deployment is a mix of these things.
Okay. Thank you. Thanks a lot, and wish you well.
Thank you, Deepak. Thanks.
Thank you. A reminder to all the participants, if you wish to register for questions, please press star and one now. We have our next question from the line of Mr. Harsh Pathak from Emkay Global. Please go ahead.
Yes. Hi, I have a couple of questions. Sir, from a strategic point of view, maybe because we have the, we are also looking to scale up our presence in NCR, MMR. So from a strategic point of view, how should we evaluate our presence pan India? Are we looking to just strategically look at some projects in some smaller markets, or we are planning something big? How should we look at it?
Look, the way to look at it is as a strategy, if you were to look at us, and I'd give a thought process, which is one year, three year, five year thought process at this point in time. The strategy for us is to focus on these five or six geographies, which is Bangalore, Hyderabad, Chennai, Mumbai, Pune, and in NCR, we are looking at Gurgaon and Delhi. So these are six locations we are focusing on. There is no other location other than other locations where we are already present, we have relationships, and we have business going on. Coming back to what it means for us in west and NCR. NCR is going to be, as I mentioned in the past, that it will be an asset-light investment opportunity where we are looking for JDAs.
We are not looking at large outright commitments, at least for next year to two years. We'd like to be a little conservative in our approach there from the market perspective, and very choosy in the kind of projects we want to look at in NCR. Hence, every time we are asked a question on when do we think we will see any contribution coming in, we keep saying it will take anywhere between 12 - 24 months. Having said that, Mumbai, we have already invested, already announced, already acquired these projects, and that will be meaningfully higher going forward. Today, the team has already achieved a certain level of scale in Mumbai. So the team is now looking at, or the company is also looking at Pune as an opportunity to scale up our presence in Pune in some of the geographies.
This is a constant process. So west, sooner, in fact, in next financial year, this financial year, next financial year, and the financial year after that, we'll see significant contribution coming in from Pune and Mumbai. For the south, our strategy is because this is our forte, we are based out of it, we have a strength here. We will continue to make inroads into the market and take more and more market share. So the team here in the south is really trying to take on more and more market share from across the brand between Purva, Provident, and Purva Land through strategic acquisitions. I think those results, we will start seeing on taking larger market share in the southern region over next 12- 18 months timeframe. We will start seeing as we make more announcements.
I mean, you're already seeing, we've made a few announcements in Bangalore. I'm sure that we will make a few more, and then in Chennai. So we will continue. Hyderabad is one which is slightly open. I think we will wait and watch till we come across the right transaction there.
Right. And these opportunistic projects like in Goa that we did. How do we look at these kind of markets? We will keep on evaluating such kind of projects, or our major focus will remain on the major five markets that you highlighted?
As I mentioned, like a Goa or a Kochi. Kochi is already, we are very large. Or a Coimbatore, these markets will be opportunistic. Because we have presence, because we have relationships, because we have built a team, we obviously want to continue to, and we are familiarized with these geographies, and they have shown performance and meaningful profits for us. We will continue to look at opportunities there, but not like an opportunity. Because I would say 80% of our focus will be on these four, five markets, 20% will be more opportunistic on the other markets which we are present in. That is how we are looking at it as a strategy. But 80% of our focus, big team, big deployment is happening in these five and six markets to really create scale, because there is enough depth available.
I mean, the way we look at it is of the 500 million square feet, which is increasing annually, about 50% of that business happens in these markets. If we can take more and more market share, and it is, I mean, whoever may say whatever, it is a geography-centered business, and you do not want to spread yourself too thin. At least that is our view at this point in time, till we reach a certain stage of maturity where we say there is not enough opportunity now to scale in these markets, which I think is very far for us. So I think with the organization design and bandwidth that we have created, I think we have enough headroom for next five years to scale up our operations in these markets. So we will continue to focus on that. But yeah, will we leave Goa and go out?
Answer is no. Our idea will be that the team we have, the system and the strength and the presence we have, and our ability to distribute across the country. Because if you see Goa alone, since you asked on that, most of the sales are happening in other parts of the country and not necessarily in Goa. So we have a distribution capability. So we will continue to capitalize on distribution capability and intend to have at least a project ongoing on most of the time.
Understood. I understand you gave a sense of entire market, maybe it will take some more than 12 months for something to materialize. What are the updates there? How are we going for that market? Where are we seeing the potential? Because we understand it's a large market. There's Delhi, there's Gurgaon, and within Gurgaon also, there are many hot markets. What's our strategy? How are we thinking to approach this market?
The way we are looking at it, for example, if you were to look at, just let's look at, of course, Delhi is an opportunity. South Delhi is definitely an opportunity. In Gurgaon, we're very clear that we won't go on the Dwarka Expressway. We want to be in Gurgaon. We want to be anywhere from Golf Course Road to Extension, and further on down this side before we reach Dwarka Expressway, because we believe that these are the markets where we will be able to, as a brand, would like to enter from. In Noida, we are looking at it more opportunistically, but ideally in phase II. Phase I, our real focus is to do Gurgaon in any of these markets and, in Delhi, if possible, we'd like to focus on South Delhi to get some acquisitions going. Post that, we will look at Noida.
Again, not something where you have to go to Yamuna Expressway further away from the city, but closer to the city, in the main part of the city, so that we come in with a strong product in a good location, and then we start expanding ourselves.
Understood, sir. Sir, one final question. Any sense on the pre-sales growth? Any target we have, maybe on a two, three-year perspective, not in the near term, but any two, three-year medium-term perspective, any CAGR growth that we are maybe targeting so that we may align our launch pipeline accordingly. I'm just trying to understand from that front.
If you see, in last four years, our launch pipeline has gone up from 3 million square feet to this year, almost 17 million square feet. This has happened over four years. Our CAGR for the pre-sales number over last three to four years has been about, in fact, three years has been 57%, but if you take the year before that, it will be in mid-30s or early 30s. I think for us, if the industry is growing at X, we have to grow at X plus Y. For that, as you already heard from Neeraj, we have in fact deployed more than INR 900 crore in last six months towards new acquisition. Our goal will be to continue to scale up our operations in the segments that we are present in.
Therefore, while we do not give guidance, our past performance can be reflective of what we intend to do in the future. I think there is an opportunity to scale. We do have a target land bank. Today, we are down to about 28 million square feet. Of 28 million square feet, we are taking about 13 million square feet to market in this year, which will leave us with only 15 million square feet. That net 15 million square feet, we would like to take it up to 45 million square feet. The logic behind that is that we should have over next three years timeframe, not today, not tomorrow, but over two, three years timeframe. Now, if we have to get to that number, obviously the speed of launch is critical.
The goal will be that if you're looking at two-year inventory or land bank being in your hand, you're looking at about 22.5 million square feet of launch capability in the system of new launches. For that, which is this year at about 12.7 million square feet for the new phases. I think that's the general direction I can give you in terms of the direction that the organization, the board and the management, the promoters are looking at from the team to deliver.
Sure, sir. This is understood. Thanks a lot for answering my questions.
Thank you.
Thank you. A reminder to all the participants, you may press star and one to ask a question. As there are no further questions from the participants, I now hand the conference over to the management for closing comments.
Thank you, ladies and gentlemen, for joining our conference call. I hope we have been able to answer all your questions. If you have any further questions, please write to us. We are available to answer all the questions. Thank you very much.
Thank you. On behalf of Emkay Global Financial Services, that concludes this conference. Thank you for joining us. You may now disconnect your line.