Ladies and gentlemen, good day, and welcome to the Puravankara Limited Q1 FY 2025 earnings conference call hosted by JM Financial. As a reminder, all the participants' line will be in the listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star then zero on your touch-tone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Sumit Kumar from JM Financial. Thank you, and over to you, Mr. Kumar.
Hi. Good evening, everyone. On behalf of JM Financial Institutional Securities, I would like to welcome all of you to the Puravankara Limited 1Q FY 2025 post-earnings conference call. From the management, we have with us today Mr. Abhishek Kapoor, Executive Director, Group Chief Executive Officer and Chief Financial Officer, Mr. Neeraj Gautam, President, Finance, and Mr. Vishnumoorthy H, Senior Vice President, Risk and Controls. I would now like to hand over the call to the management for their opening remarks. Over to you, sir, and thank you.
Thank you, Sumit. Good evening, ladies and gentlemen. Thank you for joining the company's earning conference call to discuss the performance of the first quarter of financial year 2025. The results and a comprehensive presentation are available on the stock exchanges. We hope that you have had a chance to review the same. Now let's begin with the macroeconomic industry outlook. The Indian real estate sector is poised for robust growth in FY 2025, driven by the country's strong economic performance and the rising demand across residential, commercial, and industrial segments.
IMF has revised India's GDP forecast to 10% from 8% for FY 2025. Increased urbanization, infrastructure development, and progressive government policies are boosting home buyer confidence. The residential sector is witnessing a continued surge in demand, and Puravankara is expected to experience sustained growth in line with the sector, supported by the conducive economic environment involving consumer preference.
Moving into the company's operational highlights. In Q1 FY 2025, our sales were INR 1,128 crore, while collections were at INR 965 crore, representing a growth of 39% year-over-year, indicating improvement in our operating efficiency. Average realization witnessed a growth of 6% year-over-year to INR 8,746 per sq ft for this quarter. Our sales across projects were led by Puravankara with INR 585 crore. Provident followed by closely at INR 439 crore and Purva Land contributed INR 95 crore.
The sales values at Purva Land were lower due to no new launches during the quarter. While Purva maintained its sustaining sales velocity with 12% higher realization and sales at Provident grew by 109% year-over-year to consistent sales in ongoing projects and new launch projects, Provident Botanico. Now coming to geographical contribution. Bengaluru sales was 54%, followed by Chennai at 17%, Mumbai and Pune at 17%, and Kochi at 10%.
Our launch pipeline is robust with approximately 12.7 million sq ft of new projects from the land bank, while Mumbai and Pune together constitute 47% of the planned projects, marking our strategic expansion into West India. On the business development front, the company deployed roughly INR 752 crore for land acquisitions in MMR, Goa and Bengaluru. This includes a 12.77 acres land parcel in Thane with an estimated potential development area of 2.8 million sq ft. This acquisition further solidifies our commitment to MMR sustainable and dynamic real estate market.
Additionally, we acquired 7.26 acres of land at Yelahanka, Bengaluru. We have also secured the landowner's share in two existing projects, 0.17 million sq ft in Aguada, Goa, and 0.36 million sq ft in Botanico. Coming to our debt management, our net debt increased from INR 2,151 crore in Q4 FY 2024 to INR 2,237 crore in Q1 FY 2025.
Our net debt-to-equity ratio at the end of the quarter was 1.1x . Our cash and bank balances increased to INR 1,034 crore as on June 30, 2024, which indicates the strong liquidity profile ensuring stability and operational continuity. We have consistently focused on reducing our debt per sq ft of our under construction area, which stood at 912 per sq ft ensuring the effective optimization of financial resources in our projects. As at June 30, 2024, our cost of debt stood at 11.64%. Despite a slight increase due to higher rates in land loans, we are continuously working on maintaining our average cost of debt down. We have delivered 929 units with area 1.16 million sq ft in Q1 FY 2025 when compared to 433 units with 0.49 million sq ft in Q1 FY 2024, which more than doubled, demonstrating our operational progress.
Finally, turning to our financial performance in Q1 FY 2025, our total revenue grew by 101% year-over-year basis to INR 676 crore. Our EBITDA for the quarter was INR 148 crore with 23% EBITDA margin. Tax for Q1 FY 2025 was INR 15 crore, which compared to INR 17 crore loss in the similar quarter previous financial year. In conclusion, Q1 FY 2025 has been a sustained financial performance with a strong collection. We are expanding our footprint with new projects across India, delivering exceptional value to our customers and fostering long-term shareholder value. Thank you for listening, and welcome for your questions you may have. 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 telephone. If you wish to remove yourself from the question queue, you may press star and two. You 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 is from the line of Deepak Purswani from Swan Investments. Please go ahead.
Yeah. Thank you for the opportunity, and good evening, sir. Sir, firstly, wanted to check it out. Recently, we got approval from the Board of Directors for INR 1,000 crore of QIB. Just wanted to understand the utilization of these funds, whether this would be utilized primarily for debt reduction, specifically land debt reduction of INR 745 crore, or this would be for the additional land acquisition for the business development we may look it up in future. If you can throw some light on that part.
Our board has approved us to raise the funds for QIB to an extent of INR 1,000 crore. At the same time, stakeholders have also approved it. We are currently evaluating all our options to raise capital, including the QIB, and as and when we take a decision about it, we will let you know.
I will just add here that typically, generally in the industry, what happens is a QIB capital is generally allocated between debt reduction, new acquisition, and operations to unlock the existing land banks or whatever people may have. Generally, the trend is that. Obviously, when the organization decides to go ahead with the proposal and we can then update on specifics of the matter. But at this point in time, I think it is early to answer that question.
Okay. Secondly, sir, in the presentation, we have also mentioned regarding Keppel Puravankara Development Private Limited. We have mentioned that we have already repaid the investment. If you can give a background about this investment and what has been the recent development, that would be really helpful.
This transaction, I mean, this was repaid long back.
Yeah. We are currently a joint venture company with Keppel Land, where Puravankara Limited is holding 39% share and Keppel is holding 51%. Under that company, we developed three, four projects, and currently we are not developing any projects in that company. That's the status.
The Keppel Land was given an exit or that return of capital and closure of that entity or that partnership happened in FY 2023, 2024, if I am not wrong.
Okay. And thirdly, sir, with regards to interest expenses part, if I am looking into P&L part of it, that is roughly INR 119 crore, which is implying average cost of borrowing to the extent of 14.5%. While I do understand there is a cash and non-cash component, but if you can give some sense in terms of what is the convertibility and structure in the overall debt component at the current juncture.
Sir, could you repeat your question, please?
So in terms of the interest expenses, in Q1 FY 2025, our interest expenses in the P&L is INR 119 crore.
Yeah.
For a debt of INR 3,280 crore, which is implying average cost of borrowing of 14.5%. Right?
But if you look at our debt slide, INR 3,200 crore is our debt which is servicing, where we are paying interest month on month. Besides that, we have also INR 417 crore debentures which were issued to SBICAP and about INR 162 crore investment by Purva Investment in our projects. These two instruments, though I am not servicing any interest, however under accounting, I have to do a fair value accounting for the implicit interest cost for these two instruments, and thereby my interest, which is charged to P&L, includes the interest cost or the fair value cost attributable to these two instruments also. And that where the difference is.
Okay. And how much was the amount for that?
The facility amount is INR 417 and INR 162. Exact amount I will separately collect some time and tell you how much is the amount we have accounted for related to these two investments.
Sure. And thirdly, on the launch pipeline, just wanted to check it out on slide number 19, where you have given the details about the Lokhandwala and Thane launch. For Lokhandwala, we have given the area of 0.6 million sq ft , and for Thane, it is 2.8 million sq ft . Firstly, on the Lokhandwala side, 0.6 million sq ft , is it free sellable area and our component, or this is the entire project area?
Both are sellable areas and not RERA carpet, because we are reporting in the sellable area across the board, which is normally the practice. So both are sellable areas free for sale.
Okay. And sir, would we be looking to launch the entire project at one go for both, for the Lokhandwala and Thane?
Look, as far as Lokhandwala is concerned, it will be in two phases, and Thane also is likely to be in two phases. Depending on response, but most likely both of them will be in two phases. Sometimes the response is so high that then we decide to accelerate and complete it faster. But plan is in two phases for both the projects.
Okay. And sir, continuing on the launch pipeline, if I were to look at another project, Purva Clermont Tower C, which we were looking to launch in Q2 FY 2025. This time in the presentation, it is not there. Just wanted to get sense on that Chembur project.
No, it is there. It is basically at the bottom, if you see, there is a line mentioned, new phase launches in existing projects, which says 4.56 million. This is on slide 19. Which is then totaling up to 17.25 million sq ft . If you see there, we have actually captured all those launches there.
Okay. Is this on track to get launched in Q2 FY 2025?
Yes.
Okay. Just final question from my end, if you can give a sense in terms of the industry or demand environment at the current juncture, especially in the context, marginal price hike we have seen in the industry, especially in the macro market in Bangalore and MMR region. How has been the absorption trend in the last six months or so, after the price hike?
From the market point of view, today the struggle for all of us is really to keep up with the demand. That is the challenge. In the first quarter, we have largely sold out of sustenance projects. We have not had any new launch, but on a much increased price, we have still maintained the velocity as well as the value of the business that we have done. Overall, demand continues to be robust. We expect, and it will see it on ground, I think it is more a challenge for us, also the industry in general, to bring in the supply to catch up with the demand. Specifically in, say example of the markets we spoke about, Bangalore, in fact, Mumbai, if you look at Pune, if you look at Chennai.
In all of these markets, currently, I think the issue is much more related to how much supply you can bring. Specifically, definitely in Bangalore.
Okay. Thank you, sir. Thanks a lot, and all the best.
Thank you.
Thank you. Ladies and gentlemen, before we take the next question, we would like to remind participants that you may press star and one to ask a question and come in the queue. Thank you. Ladies and gentlemen, I would like to remind participants that in order to ask a question, you may press star and one on your touchtone phones to ask a question.
Are there some technical problems people are facing? Because we can see a lot of people in the queue.
The queue just assembled. The next question is from the line of Akshada from Vivog Commercial Limited. Please go ahead. Akshata, your line is unmuted, yeah.
Hello, am I audible now?
Yes.
Yeah, great. So I just wanted to have a general guideline for the company. What expectations or what guidance would the management like to give us for this year, FY 2025, in either units or what kind of launches that are expected or collections? Anything would be helpful.
Sure. Overall, the company is expecting to launch 17 million sq ft , including phases of the launched projects. New launches to the extent of 12.7 million sq ft is expected and 4.56 of the existing, launched projects where new phases will be opened up. So a total of 17.25 million. If you look at the distribution, we will see about 9.3 million sq ft is in Puravankara and about 3.28 in Provident. There is a small project called The Windermere in Kudlu. Currently, this is where the pipeline is. Of course, this year, a substantial launch of about 3 million sq ft is expected in terms of sanction and in phases obviously in the western region.
This was our commitment in terms of what we were looking at in terms of new launches and adding to the business. We are obviously already seeing increased contribution for the western region in the business. We are expecting these launches to go to the market, sure.
Okay. Do you expect the per square foot realization to keep a positive momentum throughout the year? Are we expecting to maintain the growth that we got this quarter?
See, the per square foot average realization is a mix of inventory that we sell. In certain projects, for example, especially Purva Land, where the average realization may be as low as INR 3,000-INR 3,200 per sq ft would drag your average realization down. If you see, for example, in June quarter, our project development average realization is INR 4,316. Whereas Purva priced at approximately INR 11,564, and the Provident is at INR 8,000. But our average realization is only INR 8,746. So it is more a mix of inventory that derives the average realization. Let me come to what we expect in terms of overall how we are looking at it. This year, this Mumbai MMR coming into play, definitely it will have some impact on our average realizations, average contribution into this. That is one.
Second is the new launches that are coming will also have a certain impact on our average realization. But if you look at project-wise, I would expect somewhere between 7%, we would look at my expectation is the industry will look at an average of about 9% in terms of average growth. Of course, project to project, market to market, it would be different, and depending on the micro-market and the stage of the project, it differs. Like, for example, in the last year, we have seen average realization go up from 11%, 12% up to 27% in certain products where we see significant demand-supply and the project and the product is positioned in a certain manner by the company. So that's the general direction that we would expect to see.
Of course, project to project would be different in this year and depending on the stage and completion of the project.
Okay. I will get back in the queue. Thank you so much.
Thank you.
Thank you very much. Ladies and gentlemen, before we take the next question, I would like to remind the participants that in order to ask a question, you may press star and one. The next question is from the line of Abhishek from YES Securities. Please go ahead.
Yeah. Good afternoon, sir. My question is around debt. We always said that debt per square feet, we especially look at INR 1,000 per sq ft , and we are comfortable with that. From last two quarters, I think there is a bit of increase in that. By the end of Q1, we are at 912, and even our gross debt is increasing. How do you see that? Secondly, with the kind of debt we are at right now and the cash, why we are not reducing the debt? That's a simple question, because we also have a QIP ahead.
Thanks, Abhishek, for that question. If you see the trend, in March of 2022, we were at about INR 1,148 a sq ft on debt. March of 2023 at INR 1,106. March of 2024, we were at 874, and June of 2024, we are at 912, and you are right in that observation. We are very much under the comfort level, actually. At the same time, I must mention that our average realization is also going up. Having said that, the way we look at debt, and if you look at the debt profile and the debt breakup on where the debt has gone up and how it has gone up to the extent. Net debt has gone up to the extent of INR 86 crore. If you see that movement, CapEx towards commercial is about INR 47 crore. This is slide number 27.
If you see, CapEx towards commercial of the INR 86 crore incremental net debt has gone towards CapEx. We have also deployed, as Neeraj mentioned earlier on, INR 760 crore in new acquisitions. That clearly indicates, and you have today you're sitting with INR 1,000 plus crore of approximately net cash in hand.
Yes. In cash and cash equivalents.
Cash and cash equivalents. If you look at the overall scenario, our collections is approximately ranging between INR 900 crore-INR 1,000 crore currently at this current run rate, not including the new launches that we are looking at doing. If you look at the overall scenario and the deployment of capital, the company is really, really focusing on replenishing its land bank and scaling our business in terms of creating further lands, which will then go into the pipeline for launches, which is geared towards growth of the business. Our focus is to maintain debt at similar levels in terms of per square foot numbers, keep it under 1,000, and continue to scale the business so much that then it becomes an irrelevant conversation, and that strategy will continue to play out.
If you see the liquidity in the system and if you see the deployment, this is most important. I mean, today, with INR 762 crore, we have added more than 4 million sq ft in between Mumbai and Bangalore and Goa. You see that the value is getting created in that. Repaying debt versus creating value, there's a significant gap and upside, I mean, in terms of margins and churning the capital and return on capital employed. We are very comfortable with the current number, and we'd like to aggressively grow the business while we keep it at a similar number.
Okay, sir. Thanks.
Thank you. Ladies and gentlemen, before we take the next question, I would like to remind the participants that you may press star and one to ask a question. The next question will be from the line of Deepak Purswani from Swan Investments. Please go ahead.
Yeah. Thank you for the follow-up opportunity. Just wanted to harp it again, specifically considering the Q1 sales and the launch pipeline. Over the broader timeframe, what would be the pre-sale run rate we would look at over the medium term?
Again, I must mention here, we do not give guidance. What I can share with you is our performance for the last three years and of course, what we're looking at in terms of our acquisition plan and the launch pipeline. If you see the launch trend of last three years, we have launched last year about 10 million sq ft , and it started three years back with about 2 odd million sq f t of launch per year. That launch trend has resulted into last year selling about 7.36 million sq ft approximately. Our intention is to continue to push the new launches. For example, in this year, we are looking at a new launch pipeline instead of a 14 million projection last year on an overall basis of which we opened about 10 million sq ft .
We opened about 10 million sq ft last year, 8 million sq ft . We opened about 8 million sq ft . This year, with 17 million launch pipeline, we are expecting to continue that momentum and of course, with an increased number. Our goal will be to continue to push our new launches from existing land bank, which will help us unlock our existing equity as well as profit. Add to that new acquisitions and new launches which will also help us to bring more momentum in terms of the pre-sales number. Our goal will be to continue that push. If you just look at the CAGR of units sold in last three years, it's been about 48%. If you look at our CAGR for volume, it's been 45%. In value, it's been about 57%. This is on slide 8.
This has been our past track record.
Okay. In that context, Abhishek, if you can also throw some light in terms of the approvals for most of the projects, especially in the context because of the election in between. Are all the approval processes on track during this year, or should we expect there can be some kind of slight delay in terms of the project launches?
See, the general elections are over. Now the state elections are there. So you know how it works during the state elections, and your observation is right. Our target would be, our goal will be to try and meet the annual target, which is what we have set for ourselves in terms of launches. A quarter here, a quarter there could be because of bank sanctions. Maybe we would miss it by a month, not much, and then it would spill over into the next quarter. But our endeavor is to ensure that we take these projects to the market on time.
Okay. Then moving to the collection and construction costs during this quarter, how was that trend, and how should we see it in this. If you can give the numbers for this quarter, and also how should we look into it, collection and construction outflow during this year?
We have collected INR 965 crore during the last quarter. If you look at the trend, it is in slide 15 of our presentation. We are slightly down from immediately this quarter. However, if we compare to the quarter a year ago, we have substantially grown in terms of collection as well. That is the trend. As far as the construction outflow is concerned, last quarter, we have incurred or paid INR 247 crore on contractor cost and INR 65 crore in cost of permit premium. If we total that, about INR 300 crore plus we have spent on the purely in construction cost on our projects. That construction progress are pushing on our project, and the same will continue.
Of course, it will go up as different projects will reach different phases and new launches get added.
Okay.
It is pretty much in line. If you look at your quarterly expense is about INR 300 crore towards operations, your collection is around INR 900 crore, which is typically one-third of your-
Collections.
It pretty much stacks up in that sense because collections are directly linked also to progress of construction and invoicing that we do.
Okay. So most of the sales which we did last year, the collection to the extent of 35%-40% collection would flow in this year. Would that be the correct assumption?
See, in the first year, typically after launch, from the date of the launch, you would land up collecting anywhere between 30%-40% of the total sale value which you have done in a particular project. Then the balance comes over next three years, typically. So depending on the timing of the launch and the type of launch. For example, a Purva Land would be slightly different, and we would get much better collections within the 12 months of the launch. But if you look at Provident and Puravankara, that would be the general trend. So we would expect the overall collections to continue to be robust.
Oh. Thank you. Thanks a lot.
Thank you.
Thank you. The next question is from the line of Tushar Wankhede from JM Financial. Please go ahead.
Hello, sir. My question is, any guidance on your EBITDA margins? Will the new project in Mumbai bring in higher margins?
Our current EBITDA margins, which we are holding up for the last, I guess, couple of years have been at around 22%. Largely, it has been on account of 22% and 23% FY 2024. Right?
FY 2023 was 31%.
31%.
FY 2022 was 46%.
Correct.
FY 2024, 22%. In this last quarter, it was 22%.
Generally, if you see the EBITDA margin do take a hit because of some amount of marketing cost of new launches and ongoing projects hits the EBITDA, while old projects which we are giving handing over of, some portion of those marketing costs also hit the bottom line. Unfortunately, as per the accounting standard, the new launches marketing cost and expansion overheads. For example, our expansion in Mumbai, now we have set up an office in NCR, will be hitting our bottom line today. You will see a little on paper, and you will see a squeeze on the numbers. But as the delivery picks up more and more and starts catching up with our sales number and gets closer and closer, those numbers will evolve and change. They will get closer to our target number, which is at about 30% of EBITDA.
On paper, I think it will take us some time to get close to that number. If you look at margins, typically we expect in Provident between 27% and 30%, 32% margin. In Puravankara between 30% and 35%. Purva Land in excess of 35%. Coming to Mumbai, if you look at our margins, Mumbai redevelopment, it depends on what kind of project. An outright project will be very similar in most of the country, where you will see in excess of 30% margin, EBITDA margin. But if you look at a JDA, it would be somewhere around 15% margin, which will be a matter of interest because the interest will be lower because land cost is much lower. Right? Now it's an asset-light model.
In Mumbai, if you look at redevelopment projects because we are not paying the entire land cost upfront, but most of the cost is paid over the life of the project in terms of other than the initial costs and the rents that you pay over the life of the project. The biggest cost is the cost of sanction. That cost of sanction also is cleared over time. So that margin typically lies between a JDA margin and an outright margin, and that's how we look at their margins in the Mumbai redevelopment market. If you look at the absolute number, clearly the Mumbai cost per square foot margin will be much higher because the values are very different, and hence it adds on an absolute value on the cost per square foot number that we will see as a margin coming in.
I mean on an absolute basis. On an overall basis, I think both our average realization definitely will go up in terms of Mumbai projects getting added to the rest of the country.
Okay. Got it.
Thank you very much. Ladies and gentlemen, I would like to remind the participants that in order to ask a question, you may press star and one. The next question is from the line of Chintan Mehta from Puniska Family Office. Please go ahead. Mr. Chintan, so sorry to interrupt you. Your voice is breaking. Can you
Now it's clear?
Yeah, it's better.
Yeah. Sir, on slide 23, you mentioned about pending to be recognized number of units and area. If you can throw out a group that is specific to 2024 and 2025. So if you could throw one entire at a group level what is to be recognized unit or revenue is pending.
That slide only includes the pending to be recognized inventory out of the recent OCs . However, we can give you the complete detail of all the projects put together, what is our pending to be recognized unit and inventory. I can give you the information offline.
Okay. Sure, sir. Sir, your aspiration to be a national-level player. So what's the new geography we are looking, what will be the rough timeline for that?
Sorry, which one?
Our aspiration to become a national player. Which are the geographies you want to enter?
Our focus is, of course, Bangalore, Chennai, Hyderabad, Mumbai, Pune, and we are adding NCR here. NCR, we just put the team on the ground. We are hopeful that in the next financial year, we should see by the next financial. We need to tread very carefully with the new market. It takes some time to acquire and do the right acquisitions from the brand and strategy point of view, and also to be careful in markets, especially in NCR. We want to be cautious and our strategy is to enter with the asset-light model there. We are hoping that in the next financial year we will see some results there. Other than that, all the other markets we already see launches, we already have ongoing projects. The rest of it is already there.
The only large market that we have been missing out on is on NCR, and we are hopeful to see some direction coming in by the next financial year there.
Oh, sure, sir. The last question from my side. We always mention a slide which is a cash flow from the group. I think this slide this time is missing. If you could add that would be great on next time on call or presentation.
Sorry. You broke up in between. You said cash, some slide which was there earlier?
Cash flow potential.
Cash flow potential? No, it is there.
Oh, it is not there.
It is not there? Okay. We can get those details offline, Chintan.
Okay. Sure, sir. Just a suggestion from my side. On to the current construction project, if you mention the completed construction percentage, that would be great and helpful to us.
Yeah, sure. Feedback noted. In the under construction projects, we can give that detail. No problem.
Yeah. Thank you so much, sir. All the best.
Thank you.
Thank you. Ladies and gentlemen, before we take the next question, we would like to remind the participants that you may press star and one in order to come in the question queue. The next question will be from the line of Jinen Dharamshi from GDD Consulting. Please go ahead.
Sir, am I audible?
Yes, Jineen, you are.
Sir, what we are anticipating the market growing in next 14 cities. You are currently presenting almost four or five of it. Do we have a strategy to be going, penetrating all 14 of these cities?
Sorry, we couldn't get you clearly, Jinen. It is just too much background disturbance. Is it possible to repeat the question, please?
Sir, is it clear now?
Yeah, much better.
Top 14 cities in India are having lot of potential, what we have read. And you are presenting almost five of them. Are you having a strategy to be present in all 14 of them?
Okay. As a business, it takes time to understand the local environment and build a business in a new city. Over the last 49 years of business that we have done, today we are in nine cities, which is Bangalore, Hyderabad, Chennai, Kochi, Coimbatore. Bangalore is one market we don't want to be in. We will possibly get out of it. Mumbai, Pune.
And Goa.
Now Hyderabad. The only other market we want to enter at this point in time is NCR, and I think this is enough for us to really scale our business. Because if you look at the business, we have the entire spectrum of product as far as residential is concerned, from plotted which will start at INR 3,000 to the top end of the business which will go possibly at over INR 100,000 sq ft eventually. So we have the whole range, and we have these cities. Our goal will be first to go deeper and work on the market share for these cities before we look at any other city.
As I said, it's taken us time and it does take time to understand the local dynamics, do the acquisition, and then basically launch, complete a certain project and showcase your development capability in each of these markets. So at this point in time, we'll stay limited to the current cities that we spoke about. At a later and appropriate time, we will evaluate any other city that we may look at. But right now we see enough potential to just focus on these cities and their potential growth.
Thank you.
Thank you. Ladies and gentlemen, before we take the next question, I would like to remind the participants that you may press star and one to ask a question. Thank you. Ladies and gentlemen, as there are no further questions from the participants, I now hand the conference over to the management for closing comments.
Thank you. Thank you everybody for joining our conference call, and I hope me and my team were able to answer all your questions. We both are available offline. If you have any further questions, please write to us. We'll provide answers to it as soon as possible. Thank you.
Thank you. Have a good evening.
On behalf of JM Financial, that concludes this conference. Thank you for joining us, and you may now disconnect your lines.