Ladies and gentlemen, good day and welcome to Signature Global (India) Limited Q4 FY25 earnings conference call hosted by ICICI Securities 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 the conference call, please signal an operator by pressing star then zero on your touch-tone phone. Please note that this conference has been recorded. I now hand the conference over to Mr. Adhidev Chattopadhyay. Thank you, and over to you, sir.
Yeah, good morning everyone. On behalf of ICICI Securities, I'd like to welcome everyone on the call today. From the management of Signature Global, as always, we have with us Mr. Pradeep Kumar Aggarwal, the Chairman and Whole Time Director, Mr. Lalit Kumar Aggarwal, the Vice Chairman and Whole Time Director, Mr. Ravi Aggarwal, the Managing Director, Mr. Devendra Agarwal, the Joint Managing Director and Whole Time Director, Mr. Rajat Kathuria, the Chief Executive Officer, Mr. Sanjeev Kumar Sharma, the Chief Financial Officer, and Ms. Pritika Singh from the Investor Relations Team. Now I'd like to hand over the call to the management for their opening remarks. Over to you. Thank you.
Yeah, good morning everyone. Welcome to the Signature Global Investor and Analyst meeting. As has been the trend of the last couple of years, today we have gathered here to analyze our performance during FY25 and map out our future, which is focused on creating sustained value for all. At the outset, let me acknowledge the dedication of our various stakeholders and express my gratitude to the investors who have reposed utmost trust in our company. Our journey spanning 11 years has been full of achievements and innovation. It is no secret that Gurugram, with a robust infrastructure development, has been the flag bearer of India's residential real estate market. Properly known as a Millennium City, Gurugram is home to a large number of Fortune 500 companies and also possesses world-class educational and healthcare facilities.
It is a vibrant job market with continued and abundant migration of NCR, especially from the neighboring states. The demand for premium housing is growing, supported by rising disposable incomes and massive infrastructure in the Millennium City. India's real estate sector is evolving with government policies, urbanization, and infrastructure investment playing a huge role in it. The sector, which contributes about 7.3% to the economy today, is expected to grow to INR 5.8 trillion by 2047. We are determined to play our part in this as well. Now, operational performance during FY25, it gives me immense pleasure to inform you that the year 2024 and 2025 has been full of the achievements for us. In terms of operational performance, we achieved the target that we set for ourselves.
We achieved our highest ever annual pre-sale of INR 102.9 billion in FY25, registering a robust 42% year-on-year growth and in the process of surpassing our pre-sale guidance. Signature Global also registered a record annual collection of INR 43.8 billion, reflecting a 41% year-over-year growth at the same. Company's operating cash surplus has zoomed by 79% to INR 16.3 billion in FY25 from INR 9.1 billion in FY24. We have also successfully been able to reduce our net debt significantly to INR 8.8 billion at the end of FY25 compared to the INR 11.6 billion in FY24. The net debt reduction is despite the significant investment Signature Global has made toward the business development. Moreover, during 2024-25, Signature Global revenue from operations stood at INR 25 billion as compared to INR 12.41 billion in FY24, registering an impressive 102% year-on-year growth.
Signature Global's adjusted gross profit margin has been also improved to 31% in FY25 from 28% in FY24, while adjusted EBITDA margin has improved to 14% in FY25 from 11% in FY24. Our PAT for 2024-25 stood at INR 1.01 billion, and we have seen substantial improvement in PAT margin to 4.1% from 1.3%. The company's average sales realization has also improved to INR 12,457 per sq ft in FY25 from INR 11,762 in FY24. Launches and land acquisition during FY25, now we will talk about it. During FY25, the company has launched five new projects, having a combined gross development value of approximately INR 138.1 billion, including Titanium SPR and Twin Tower DXP, Premium Group Housing Project in Gurugram, DAXIN Vistas, a mid-income housing project in Sohna, and City of Colours, a plotted development project strategically located on NH-8 in strategic micro market.
We at Signature Global also acquired approximately 48 acres of land in FY25, including 22.06 acres which were earlier under JDA for INR 1,070 crore in Gurugram. The development potential of the land is approximately 7.97 million sq ft. Now we'll talk about future roadmap. Looking forward, we will continue to focus on our premium segment and mid-income housing segment and are fully geared up to the emerging market opportunity. Like FY25, the company will unveil several new projects during FY25-26. One of these projects is scheduled to be launched later this quarter. The preparations are in full swing, and all necessary approvals are in place. With our thrust on premium and mid-income housing, we expect our per square foot realization to continue its northward march. We are confident that FY26 will be another year full of success and achievements.
We also remain committed to further improve our market share in the Delhi NCR market. I again thank you for your continued trust and faith in our company. Together, we are on course to achieve greater heights. Thanks, everyone. Now, I am saying to Mr. Rajat Kathuria, please over to you.
Thank you, Pradeep Ji, for your comments. Let's take a bit of a deep dive into some of these operational numbers for the year. So we are quite pleased to announce that for the first time ever, and within this short span of our journey of about 11 years, our company has crossed 10,000 crores in terms of sales potential. We ended up achieving this deep target, which was ambitious but doable at the start of the year. But we achieved more than 10,000 crores. Almost 10,300 crores of sales were achieved during the previous financial year. Taking a deep dive into the sales numbers, so we did about 4,100+ housing units at an average price of about 2.5 crores per unit.
By and large, playing the mid-income theme because the average price was INR 2.5 crores, that's probably the lower-end price point at which housing gets sold in the Gurugram market in key areas. So we've sold about 4,100 plus units at this ticket size, hence showing our focus and our determination to be a large and a trusted brand in the mid-income housing segment in our region. This growth was quite significant. We grew more than 40%, 42% almost, vis-à-vis the previous year. And the growth came both in terms of volume and value. If you look at volume terms, we sold almost 8.3 million sq ft in fiscal year 25, which was almost 33% higher vis-à-vis the previous year, in which we had sold about 6.2 million sq ft. So there was about a 33% volume growth.
If you talk in value terms, our per sq ft realization was closer to INR 12,500, which was a year gone by about INR 11,800 a sq ft. So that also grew about 6 odd %. We are very pleased with the scenario that while prices continue to go up, and we expect them to go up in future as well due to lack of supply, but the price rise has moderated. We were not as comfortable when the price rise in the previous years was in higher double digits. It was very inordinate in percentage terms. So we are quite enthused that while we are growing in volume, the value terms also we are witnessing growth. In the forthcoming year, we expect the sales number to cross INR 12,500 crores, which is more than 20% growth over the current year.
This is not just the growth projection for the coming year, but even in years to come, we envisage that achieving a 20% plus growth rate in terms of pre-sales over a medium-term basis is an achievable target. So we can, for the first time, probably we are suggesting that over a longer-term, medium-term, long-term basis, our target will remain to grow at 20% plus. We have reasonable dry powder with us. We have launches coming up, like Pradeep Ji said, in Sector 71, 37D, and even in the Sohna market, we have inventory with us. So we have launches coming up almost regularly in our key markets.
Even if you look at the trend over the last five quarters, let's say since January 2024 till date, every quarter in which we have done new launches, we've by and large, on an approximate basis, achieved closer to this INR 3,000-odd crore of sales within that quarter. Whereas previous quarter, we were planning to do some launches, which got shifted to, let's say, large launch got shifted to the current quarter, because of which we didn't achieve that closer to INR 3,000 crore kind of sales. But still, we kind of managed to comfortably achieve our annual target. Whenever there are new launches coming, I think that is a good bump-up quarter for the sales. For the current financial year, we are fairly confident that these newer launches are coming up on a steady pace. Collections also have shown tremendous growth over the previous year.
We've collected closer to INR 44 billion, which was almost 40% higher vis-à-vis fiscal year 2024. If you see it as a two-year trend, our collections between FY 2023 to 2025, there's a jump of almost 2.3 times. Our collections stood at 1,900 odd crores in fiscal year 2023. We've reached almost INR 44 billion in fiscal year 2025. Collections were good across the markets, on our existing projects, whether they were affordable or the Deen Dayal projects, or whatever new launches we've done, whether it was Titanium or it was Sohna market. Collections have been contributed by all the segments, and there was no segment which did not contribute to these healthy collections. For the coming year, our guidance is to achieve INR 60 billion in terms of collections, which is again a 35% growth in terms of collections vis-à-vis the current year.
To add on to the collection, I think a point to be noticed is our operating cash surplus. So since this is the easiest benchmark to understand the net cash earning or underlying profitability of the company, profits are always driven by accounting, which is back-ended when we do completed contract method of accounting. But if you really look at operating cash surplus, so against this approximate INR 44 billion of collections, our operating surplus stood at INR 16.3 billion, which is almost nearing 40% of collections. Not exactly there. It's like, to be precise, 37%. But we saw a steep rise in the operating cash flow percentage as operating cash flows as a percentage of collections. A year prior to FY25, this number was closer to 29%. It has jumped to 37%. And in absolute terms, you'll really see the difference.
So the operating cash flow, which was surplus, which was closer to INR 900 crores in fiscal year 2024, jumped to INR 1,600-odd crores in FY 2025. So that's where with about a 40% rise in collections, we've seen almost close to 80% rise in the surplus of the company. And that shows the healthy state of affairs within the company. Now, this operating cash surplus is post-considering all hard costs, SG&A costs, taxes, but before any further acquisitions into land. Now, market conditions stay fairly buoyant. We are very positive in terms of the market scenario, even in the coming year. And that gets reflected in terms of our actions as well. So in the year gone by, we've added land almost worth INR 1,060 crores.
In our key markets, whether it be Sector 37D, where we've added close to more than five million sq ft of developable area, or in Sector 71, where we got an opportunity and we bought the land from one of our JDA partners, our land collaboration partner, we've bought land which has development potential of about 2.7 million. The underlying current is still very strong. The supply in the market is scarce, and there is huge demand for mid-income housing players, mid-income housing units. Signature Global is very uniquely positioned to address this demand. We are a very trusted brand. We come up with continuous supply of these units in mid-income housing, and that's why we continue to redeploy the free cash which is being earned.
So if you look at the year out of this INR 1,600+ crores of surplus, more than INR 1,000 crores went into land acquisition. Almost close to 300 odd crores was used for net debt reduction. So we added land, and we've strengthened the balance sheet out of the surplus which got created. Even in the coming year, since we are targeting close to INR 6,000 crores of collections, our operating surplus as a percentage of collection will continue to go up. We anticipate it to be close to 40% in the year coming by. As of today, our portfolio looks very good and very much in line with our strategy. So giving some top-line numbers, so about 14 million+ is something which we've already delivered. There's another 10 million+, which is at advanced stages of completion.
This 10 million sq ft has an underlying recognizable revenue of almost INR 100 billion. This is getting completed within this year and the coming year. This number stood close to about 14 million a year earlier. So about 3.8 million sq ft got completed. And there's another 10 million sq ft with fairly fast pace, which is under fast pace sort of completion as we speak. Besides the delivered portfolio and nearing completion portfolio, there's an early stage portfolio of almost close to 40 million sq ft, 39.3 to be precise, which could be by and large split into two subsegments. About 40% of this has been launched over the last five quarters, which is about 14.8 million sq ft and has a GDV potential of INR 175 billion.
The balance 60%, which is at a land stage right now, which is roughly 24.6 million by and large, 40 splitting closer to 15 and 25. So 25 is something which is a dry powder which we intend to launch over the next two to three years. Again, has a GDGDV upwards of INR 400 billion. So we have dry powder enough to fuel our growth for the coming years. And while we are replenishing it, even as of today, we have dry powder comfortably for next two to three years of launches with us. In terms of just allow me a minute. Yeah.
One point to notice in terms of business development is that in the year gone by, we achieved a sales volume of close to 8.3 million sq ft, which had a GDV of about INR 10.3 billion, which is the sales which we achieved in the previous year. We've again replenished our land almost close to 8 million sq ft, but with a higher GDV of INR 125 billion. So in terms of principle, we are using our operating cash flows for our growth and for debt reduction. And we expect the trend to continue. So even in the coming year, as we achieve these surplus in the company, it will be used to replenish land. It will be used to tap newer land opportunities, any large opportunities which come our way.
Or we may choose to further reduce the net debt, which is not significant, but it will get further reduced in the coming year. In terms of our revenue recognition and profitability, our revenue recognition was almost twice as much as the previous year. We recognized close to INR 25 billion in terms of revenue. As a breakdown, we completed close to 3.8 million sq ft of area. So roughly at about INR 6,500-INR 6,600-odd per sq ft of underlying development. So the development which got completed had an implied selling price in the range of INR 6,500-INR 6,600 per sq ft. The inventory which we sold at those price points gave us good profitability, which was almost closer to 31% in terms of gross profit margin. A lot of our SG&A expenses are based on the current scale of the company.
However, even after considering those SG&A expenses, our EBITDA margin was close to 15%. It was about 14.5% to be precise. Even at this level of revenue recognition, we managed to showcase profitability at the PAT level. We've achieved more than INR 100 crores in terms of PAT for the year gone by. In terms of our balance sheet strength, I would like to reiterate that most of the land which is there with the company, this close to 40 million sq ft of early stage developments which we are doing, the land belongs to the company. More than 90% of the GDV of this underlying early stage projects will belong to the company. It's much higher than 90%, but yeah, 90% is a very good conservative number.
So on the balance sheet, if you understand on the asset side or the inventory side, this 40 million sq ft near about with more than 90% of GDV belonging to the company and almost negligible land payments are due, barring something which we bought in the last quarter, some payout may be due in that regard. But by and large, this land is paid for. The net debt of the company is just INR 880 crores. So our gross debt stood at about closer to INR 2,400 crores. Our cash and cash equivalents were in excess of INR 1,500 crores. So our net debt number was less than INR 900 crores. Or in terms of as a comparison to operating cash surplus, it was about 0.54x.
So in the year coming, even if we very aggressively do business development, we'll make sure that at no stage our net debt to OCF will not cross 0.5 times of the surplus being created by the company. I would like to close this discussion with a quick reiteration on the guidance. So in terms of launches, we are targeting fresh launches in excess of INR 170 billion. We are targeting a pre-sales with an underlying growth in excess of 20%, which should make us cross pre-sales of INR 125 billion. Our collections, again, with a more than 40% rise, should be around INR 60 billion for the year. And in terms of our completions, we target 2x the number we achieved previous year. So almost close to INR 48 billion plus of completions we are targeting in the coming year. Whatever sales are being done are happening with an implied EBITDA of 35%.
And we are targeting a more than 40% surplus in terms of the collections which will be done by the company. And lastly, the net debt will not cross 0.5 times of the operating surplus being generated by the company. With this, I'd like to end this discussion. But yeah, we are by and large very, very confident and enthused with the current environment and are very positively looking at the year which has just started. 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. 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 is from the line of Pritesh Sheth from Axis Capital. Please proceed.
Yes, good morning and thanks for the opportunity. Congrats on a great year. Firstly, on the launches, INR 17,000 crore, if you can break that up in terms of the projects and the timeline, so we can keep a track on that, how spread across they are throughout the year. That would be my first question.
Yeah. Sure, Pratish. Good morning. Thanks for asking this question. So in terms of launches, I'll start with the larger ones first. So within this quarter, we are targeting about 1.6-1.7 million sq ft of launch in Sector 71, which is phase two of Titanium. Thereafter, we are launching another 3 million plus in Sector 37D. It should be closer to 3.3 million.
Between these two launches itself, we are launching about 5 million sq ft. Adding on to it, there are one or two smaller launches, one in 37D again by the name of Iconic. And there is some more inventory getting launched in Sohna market. There is some inventory which is with us in project DAXIN. There is another project by the name of Signature Global Park in Sector 36, Sona. By and large, these launches will happen in the first quarter of the year, and we'll be between INR 100-INR 110 billion of launches will happen within the first six months itself. For the second half, there are land parcels in which we are working on the plans, etc. But there are more launches coming up in Sector 71 and 37D again in the second half of the year.
But this will be like a sustained supply throughout the year, which will happen.
Got it. Got it. That's helpful. So we are thinking some more will come from the land that you acquire from here on, is it? Or all of this INR 17,000 crore is there already in the pipeline that we have?
No, this is entirely out of land which is already with us. And we are fairly advanced in each of these land parcels in terms of approvals. Only those have been considered.
Got it. Got it. On the collections, so I think only miss that we would have from last year would be on collections. We have discussed that in the past as well, but for this year, INR 6,000 crore, which was a similar number you were targeting last year, I think what would be the key milestones? And I'm sure you work a lot on numbers.
So if you want to provide a break-up of where this 6,000 is coming from, from the completions, ongoing projects that you've already sold in last year. So some of those milestones will help us track this number well later.
Sure. Sure. So Pratish, you're right that we were targeting a much higher number, but that was with the assumption of two large launches, both of these Titanium Phase Two and about 3.3 million-plus sq ft in Sector 37D getting launched previous year, which got deferred to the current year because of some, I would say, not just approval delay, but technically more of planning which we ended up doing around these projects. So that was one of the larger reasons for us to miss our guidance of collection in the previous year. Both of these are fairly large projects, almost 10,000 crores worth of GDV potential exist.
In the current year, our collection guidance, of course, is based on both our ongoing projects as well as new launches. So if I may give you the broad split, about 75% collection will come out of the projects which we've already sold, and 25% is anticipated out of the new launches which we are planning.
Got it. That's helpful. And in general, you want to talk about demand scenario over the last 12 months, six months. Has there been any change in how you look forward to in terms of demand? I mean, your sales guidance gives us good confidence that you are looking at it as if things are normal. But anything specifically which has changed and which could be key for us to clock this number next year?
In terms of market, we are not seeing very significant competition in this mid-income housing segment.
There is some bit of supply, and that too by multiple players. If you look at the upper-mid segment to luxury segment, there is supply, and there are multiple players who are tapping into that segment. Our focus area is getting more into this early mid-income segment, price points starting from, let's say, about a little less than 2 crores and going up to, let's say, 3.5-4 crores. So this 2-4 crore rupee ticket size. And depending on different location, so 2 crore will be more in the Sohna market, 2.5-3 more towards Dwarka Expressway and Sector 37D. And above that number, if we come to the Southern Peripheral Road, 3.5-4 crores in Sector 71. So at these three markets, we have a product. And product is fairly good.
It's just that the unit sizes are small, but these are very good quality product which is being delivered or being developed by us. So at these price points, we are not seeing much competition, and we are also witnessing good demand. And that's why, as in when we are launching these projects, it is safe to say that about 70% plus inventory is getting absorbed within a short span of time. I would say at launch itself, that trends to be a little scary only. But yeah, within a couple of months, few months' time from the launch, you'll see almost like 70% uptake of inventory. And this is real estate. It is like a higher ticket size purchase for anyone. But as we are launching, we are seeing good absorption.
And that's why we are confident in giving this 20% plus growth over a fairly good number which we achieved previous year.
Got it. And one last, just on that continuation. So at 20% growth for long term, this is the first time you are providing that. But at what point you would think that we'll have to go beyond Gurgaon? Is it 12,000 crore or 15,000 crore? So your thoughts on that.
No, it's like a moving target, Pratish. Once you achieve a particular number, it doesn't seem that you've really sucked up the demand in the market and you're unable to sell further. That's not the case. And so it's like a moving target. If you really see, we've sold just a little above 4,000 units, which were split across Gurgaon and Sona market.
It's not that in terms of volume, we've achieved some 10,000, 15,000 units within a year. Gurgaon is a very deep market. It is seeing a lot of traction. A lot of people are migrating into Gurugram from a lot of places in North India. I won't say just Delhi. But in most of North India, you'll find a maximum amount of white-collar jobs being offered in the Gurugram market. And hence, there's very strong migration into Gurugram. I'll have to eat my words if I were to say that, okay, at 12,000 or 15,000 crores, we'll end up exhausting the Gurugram potential. I don't think it will be fair to make any such comment with regard to the micro market.
Sure. That's helpful. That's it from my side and all the best.
Thank you, Pratish. Thank you.
The next question is from the line of Murtuza Arsiwala from Kotak Securities. Please proceed.
Definitely. Hi. Thanks for allowing me to answer your question. I think just continuing from what Pratish was saying, do you think at some point of time, this three micro markets sort of concentration would sort of constrain your ability to grow, and you would have to look a little beyond, if not another city, but at least other segments within Gurugram itself? That's one question, and the second is there is still a gap between the reported margins and the embedded margins. I think at what level, or maybe a year down the line or two years down the line, do you think the revenue recognition would be of the more profitable projects?
And when you'll be able to see the reported margins come closer to what the embedded margins you've been talking about for the last two years? So these are my two questions.
Yeah. Sure. So Murtuza's team, these three micro markets cover a lot of Gurgaon. So if we were to leave the luxury housing segment, which is the typical Golf Course Road and something right at the start of the Golf Course Extension Road. So if we were to leave that micro market, which has never been our play since inception, we are by and large covering the relevant micro markets within Gurgaon by focusing on these three micro markets. Nothing stops us from adding one or two larger areas to our kitty, but we feel if we can continue to do good developments in all these three micro markets, we are giving enough choices to our customers.
So Sector 71, we have more than 90 acres of land with us. There's almost like 17 to 18 million sq ft of underlying development potential exists, including Titanium, which we launched last year. So that's like the premium market. On the contrary, there is very little supply on the Southern Peripheral Road as of now. Barring one or two players, there's literally no one in the market who's holding such significant supply potential on the Southern Peripheral Road. There's very little which comes on Golf Course Road or Golf Course Extension Road. Yes, I would say it's very upcoming and promising area where there are infrastructure developments which are taking place. So as we speak, the Southern Peripheral Road is being uplifted. There's an elevated highway which is being planned on top of it. Phase two of Metro is going to cross our site from very close distance.
So that entire area is getting uplifted. We saw something similar happening on the Dwarka Expressway and hence Sector 37D. There was a huge surge in capital value in the previous year, and likewise in the Sona market. So I think these three micro markets are fairly representative if one has to play a mid-income theme in the Gurgaon market, and we don't feel the need to add a fourth or fifth market. As far as the question around margins are concerned, yes, you're right that there is a gap between the embedded EBITDA margin guidance which we've been giving and the number which is actually getting reflected in the P&L. So guidance is close to 35%. What is currently getting achieved is close to 15%. There is a direct correlation also in terms of the per sq ft which one can relate to.
Our average selling price of the pre-sales number is 12,500, wherein we are giving a guidance of 35% EBITDA margin. Whereas in terms of P&L, our realization, the recognition happened on sales, which was at about INR 6,500 a foot, on which we have earned close to 15% EBITDA margin, GP margin of almost 30%+ . In the coming year, we are still completing some more affordable projects which got sold at 4,000 and Deen Dayal Jan Awas Yojana project, of course, at higher realization per square foot. So if we are achieving, as in once we are achieving this almost 5,000 odd crores in terms of revenues, margin profile will continue to improve. It will not hit this 30% EBITDA level plus 35% EBITDA level number in the year FY26.
But yes, from coming year onward, we'll start delivering certain projects in the Sona market, like Dakshin. Certain plots will start to get delivered, from where all these guidance numbers will become reality. So margin profile and absolute number profitability will take steep increase in the coming year, as in the current year.
So would it be fair while we may not get a 35%, but we will see the reported P&L showing an improving trajectory, so at least bridging some of the gap between 15% and 30%?
Yes. Okay. That's all.
Thank you so much, Pratish.
Thank you, Murtuza.
Thank you. Before I take the next question, I would like to remind participants that you may press star and one to ask a question. The next question is from the line of Tirth Parikh from Ashika Institutional Equities. Please proceed.
Very good morning, sir, and thank you for the opportunity. So my question is on business development. With already two to three years of dry powder on hand and 40 million sq ft of early stage development, how aggressive would we be in FY26 in terms of business development? And on the similar lines, how are we seeing the land prices and supply of land, if you could give some highlight to it?
Sure. So see, we are fairly active in tapping newer opportunities in terms of land acquisition. So the good part is that if you look at our sort of history post-listing, we've never been tempted to do any subsequent fundraise from the market because operating surplus has been good. Even in the coming year, this operating surplus is going to go through a good rise with the previous year.
And hence, since the market conditions are good, sales are happening at a good pace, we do intend to deploy almost INR 1,200-1,500 odd crores. I'm giving a range. It's start of the year. I can't really put a number to it. But we do intend to redeploy anywhere between INR 1,200-1,500 odd crores in terms of fresh business development and keep adding on to the underlying or implicit worth of the company in terms of its land bank.
Okay. Perfect. And secondly, for all embedded margins, with realizations heading towards north, how do we see embedded margins? Is there any scope for further improvement to that 35% number which we are driving, or that is on the higher side?
So that's not on the higher side. There's definitely scope for improvement.
Or rather, once we complete these projects which we've launched over the last five to six quarters, which were at these sort of price points. Last year, our average selling price was ₹11,800. This year, it was ₹12,500. So any of these projects which have been launched at these price points, 35% is not an aggressive number which we've put in place. Even for the inventory, which is at fairly advanced stage of completion, which is close to 10 million sq ft, the underlying revenue recognition is of almost ₹100 billion. So that recognition is at an average of about ₹10,000 a foot. And hence, because of that, the margins will improve as and when these projects get completed.
Okay. Thank you. Thank you so much.
Thank you.
Thank you. The next question is from the line of Adhidev Chattopadhyay from ICICI Securities. Please proceed.
Yeah.
Thank you for the opportunity. So my question, I think last time we alluded that we will be exploring the Delhi city market, right, in terms of expansion. So any update on that? Where were we? Is it still some time away, or have you already done some work over there? Yeah, that's the first question.
So Adhidev, we've been tracking that market more closely. We've been kind of looking at opportunities which are coming in Delhi. But we will stay disciplined in approach, in our capital outlay approach. So there is more clarity required in terms of the policy framework from the government side, the new state government, which was formed a few months ago. Until that time, we don't get absolute clarity on the developability of the underlying land which one can acquire. We'll not put in capital.
Having said that, our understanding on the kind of opportunities which exist is much better than what it was three, four months ago. So we are watching that situation, and we'll put capital at the right stage into the market.
Sure. Sure. My next question is on the, if you could just guide us on what has been sort of like-for-like price growth in your ongoing projects in the last year, and overall, on a like-for-like basis, how do you see this panning out over the next two to three years in terms of balancing volumes and the value of sales?
Like-for-like has been quite good. When we say the price rise was only 6%, it's of course on a normalized basis.
That 11,800 sq ft going up to 12,500 does not give full picture of the like-for-like price increase because in the previous year, like fiscal year 25, where we achieved INR 12,500 a sq ft, a lot of sales came from the Sohna market. And almost close to 45 odd% of sales have come from the Sohna market. That proportion of Gurugram in terms of percentage sales was lower in FY25 vis-à-vis FY24. And that's why it's a good question. The like-for-like price rise is much higher. So if you look at Sector 37D, we have to do a subsequent launch, but you may very comfortably assume at least a 15% price rise and almost closer to a 20% price rise in Sector 71 vis-à-vis for phase two launches, which vis-à-vis the launch which we did previous year.
So there's a fairly good price rise happening within Gurgaon and in the micro markets where we operate. And just to explain it, it's not that there's any euphoria and hence it's happening. There is a lot of underlying development taking place in these markets. If you realize in the previous year, phase two of Metro, Gurgaon Metro got a clearance. Now there's a clear path at what all places the Gurgaon Metro is coming. There's continuous improving in the infrastructure situation in Gurgaon. So with all these things, people are ready to pay more for these markets which are becoming quite established and livable. So the price rise is healthy.
Sure. Sure. And just again, a question, my final question is on the overall market. So obviously, the Gurgaon market has been doing fairly well the last three to four years.
So in terms of the competitive intensity, how do you see that panning out? Because we keep hearing about new players entering the overall market. So have you seen Gurugram as an overall market size growing in the last year, or it has been a fairly stagnant market? If you could just help us understand overall Gurugram market as you see it in terms of either number of units or value or some ballpark number which you may be working with. Yeah.
So the Gurugram market is definitely improving. The market size has improved. The number of launches, there's been sustained supply by various players in the market. The sweet spot where we are enjoying a very unique position in the market is that we are the only company which is focusing on mid-income housing and can do a sustained supply of units.
There are a bunch of players who are tapping this upper mid or luxury segment but don't have the rightful amount of land with them to do a sustained supply. So we can do sustained supply, and we want to tap this early stage mid-income market, which no one else is doing. And that's kind of a very peculiar positioning for the company, which is getting reflected in terms of our regular year-on-year growth.
Sure. Sure. No, that is very helpful. Yeah. Thank you and all the best. Yeah.
Thank you, Adhidev.
Thank you. As there are no further questions, I would now like to hand the conference over to the management for closing comments.
Yeah. We would like to thank everyone to take our time this morning, and we'll be updating everyone, the entire community, as and when more progress is happening.
But just to end with a positive note that the business scenario is very positive, very good, and we are very positive regarding the current year operations for the company. Thank you.