Thank you, Shruti. Good afternoon, everyone, and thanks for joining the call.

From the management of Prestige Estates, we have Mr. Irfan Razack, Chairman and Managing Director; Mr.

Zayd Noaman, Executive Director; and Mr. Amit Mor, the Chief Financial Officer.

I'll now hand over the call to the management for their opening remarks. Thank you, and over to you.

Good afternoon, everybody. I'll hand over to Zayd to give the opening remarks.

We also have Mr. Nayak, our Chief Finance Controller, he's also listening on.

A very good afternoon to everybody, and thank you for joining us today. The first quarter has been a good start for the year with stable operating performance across all our businesses.

We continue to execute on our development pipeline, maintained healthy collections, and saw consistent performance across our office, retail, and hospitality portfolios, while laying the groundwork for a much stronger launch calendar over the balance of the year. Our resi business recorded presales of ₹6,579 crore during the quarter, with sales volumes of six-odd million square feet across 337 units sold.

Customer collections remained robust at ₹4,802 crore, reflecting healthy customer demand and continued execution across our projects. Geographically, our sales remained well-diversified.

Hyderabad contributed this time 49% of quarterly sales, driven by the successful launch of Prestige Golden Grove, followed by Bangalore at 27%, Mumbai at 12%, NCR at 7%, and other markets at 5%. Average realizations for apartments stood at ₹11,193 per square foot, primarily reflecting the geographical mix of sales, with Hyderabad accounting for nearly half our quarterly presales.

During the quarter, we launched four projects spanning a combined 20.16 million square feet of developable area. These included Prestige Golden Grove in Hyderabad, Prestige Gardenia Estates Phase 2 in Bangalore, Prestige Forest Hills Phase 2 in Mumbai, and Prestige Century Landmark, a commercial development in Bangalore.

Together, our resi launches represented a GDV of approximately ₹12,000 crore. While Prestige Golden Grove contributed significantly to our quarterly performance, Prestige Forest Hills Phase 2 was launched towards the close of the quarter and therefore only a limited contribution to Q1 sales.

We expect the momentum from this launch to be more meaningful over the coming quarters. During the quarter, we also completed three projects with a developable area of 4.37 million square feet, comprising Prestige Tech Forest, which is a commercial project, Prestige Sanctuary, a residential project in Bangalore, and Prestige Cityscape in Kochi.

Our annuity portfolio also delivered another healthy quarter. With our office business, we recorded a gross leasing of 1.5 million square feet during the quarter.

A key highlight was the successful preleasing of the entire development at Prestige GRC Signature Towers to one of the leading banking institutions, which shows the continued preference of marquee occupiers for well-located, institutional-quality office developments. The exit rental of our commercial portfolio for FY27 stands at ₹865 crore.

Our retail portfolio continued its strong performance with gross turnover increasing 18% year-on-year to ₹737 crore. Footfalls across our malls reached 5.2 million during the quarter, while the FY27 exit rentals for the retail portfolio stand at ₹370 crore.

Our hospitality portfolio also continued to perform well, supported by increased occupancies and competitive average room rates. Beyond business performance, we also remain committed to our sustainability agenda.

On occasion of World Environment Day, the company participated by planting 1.25 lakh saplings as part of our commitment to plant 1 million trees in Bangalore. This initiative reflects our continued focus on integrating environmental stewardship with long-term value creation across our developments and communities we serve.

As we enter the festive season, we have a strong lineup of high-value, high-velocity launches across our key markets. These include marquee developments such as Prestige Business Bay in Mumbai, Prestige Bougainvillea Gardens, Prestige Meadows in NCR, Prestige Falcon City Reserve in Bangalore, Prestige Falcon City and Prestige Cloverdale in Chennai, The Prestige Place in Hyderabad are a few important launches lined up for the second quarter, which will further strengthen our momentum heading into the festive period.

Beyond launches, we also continue to strengthen our long-term growth pipeline during the quarter through lots of business development. We expanded our presence in three new micromarkets in Mumbai, that is Thane, Borivali, and Versova, which marks another important step in broadening of footprint in Mumbai MMR region.

These acquisitions not only expand our footprint, but also add to our launch pipeline, with our teams already working in advance towards launching these over the coming quarters. With this, I think we're happy to take your questions and hear more feedback from you.

Hi, sir, and congratulations on a good quarter. My first question is on the Hyderabad contribution to the sales in this quarter, the Golden Grove project.

Versus the GDV, the numbers look little muted. If you can give some color on how is the Hyderabad demand in the current environment?

We've

sold already 60% of the total project. We have a GDV of ₹9,500-odd crore, including the landowner share, which we're not selling.

We've, I think, sold very well over there.

Okay. Just on the business development, I think we have announced a strong business development, including Aram Nagar in the Q1.

How is the rest of the year looking in terms of business development across Mumbai, Bangalore, Hyderabad, and NCR? If you can give some more color, what are the targets for this year, how much do you think we can do business development this year?

How quickly can we bring these launches, especially the Aram Nagar one, into the launch pipeline?

In terms of business development, it's very dynamic. It changes quarter-on-quarter.

We are on target to, I think, achieve that spend for the year. We target about ₹4,500 crore of spend towards business development for the year, which will be spread over the ensuing quarters.

In terms of launches— Actually this quarter, we plan to launch four projects in Bangalore, which is the Prestige Avon, Prestige Battersea, and Prestige Garden Breeze. These are all under approval.

We should get all the approvals in a maximum 8 to 10 days' time, after which RERA, and then we launch that. Apart from that, we're going to launch Prestige Palm Court in Chennai this quarter.

It's quite a lot of action that you're going to see. Garden Breeze, Avon, Spring Woods, and Battersea this quarter in Bangalore; Palm Court this quarter in Chennai; and Park Street in Chennai will be next quarter.

Then it will follow. There's a big, big launch pipeline, which is almost ₹45,000 crore worth of launch pipeline that is still pending.

I think all seems to be on target. In fact, quarter 3 will see Prestige Meadows, Prestige Bougainvillea Gardens, and Chambers 51 in Mumbai, two are in Delhi, one Chambers 51 is in Mumbai.

Okay. Just last question, Irfan sir.

Have you seen any impact on the ground in terms of delays in deal closures by the customers, any elongation in the sales cycle because of geopolitical tensions, any concerns around AI, because there's been a lot of noise around AI and its impact on slowdown, especially to the traditional IT companies and the demand related to that? On the ground, especially in Bengaluru, how things are shaping up, and even across your other sites and geographies, have you seen any impact or the sentiment around the geopolitics?

I think you asked me three, four questions all in one go. The first part is you asked about delays.

Delays, we had a whole lot of stress in the last quarter, which of course will have an impact on handovers. That is during the elections in Assam and West Bengal, a whole lot of labor had gone away and now they've started coming back or they've come back.

We did have huge stress of about two months. That will impact deliveries by a month or so, but nothing really can get concerned about.

Then your next question is how will geopolitics affect the business? Business has not got affected because of geopolitics.

What happens is our costs have gone up because of geopolitics, because of the oil prices going up, because of commodity prices going up. Obviously, our cost is gone up.

Then that's only for that particular time, the three months or four months, whenever. Then we go back to the thing.

Then there is going to be some impact on a bit of expense. The third part, you're asking whether the demand is there.

Demand continues to be there. We don't see anything.

AI, I think AI is more positive than negative. AI is another business model that is coming up and more job creation happens.

Yes, on one side the mundane jobs, which is the regular accounting jobs, may be at peril. While that happens, there are new type of jobs that are coming in, which are more technical and everybody has to upskill themselves.

However, we don't feel the pinch here. We believe that there is demand and people are positive and they have a need and they are committing themselves even at these higher prices.

That's the amazing part of it. That's not only in Bangalore, it's across all the cities we operate in.

You remain confident of that 15% to 20% presales growth which you have guided in the last call?

No, that is given. We are very, very confident because we got a big pipeline.

The only thing which may trip, is that if these products don't come to market. Once we hit the market, I don't see us not selling.

The question of not being able to sell does not arise. Always you have this problem of delays in approval, delay in getting RERA.

In fact, that is where our major stress is. Like to see four projects which I told you should have come in Bangalore, now they all got delayed to this quarter.

Otherwise, instead of ₹6,500 crore, we would have been like zero saying we did ₹8,500 crore. Then it will come this quarter.

There's a big pipeline and I think it's a good pipeline that we have, including now we've got some three, four big projects even in Goa where we've invested in land. Now it's like a moving target.

Every week we are promised next week, and the next week doesn't come. What happens is we really just cannot plan it.

That's where our problem is. In spite of all the connections, in spite of having all the relationships, sometimes targets are moving.

Sure, sir. Thank you and wish you the best.

Those were my questions, sir.

Hi. Thanks for taking my question.

Just on a couple of questions. Firstly, on the annuity side, right, in terms of the projection that we have given out for rental income, particularly for the office portfolio, there has been some downward revision in '27 and '28 numbers.

Is it on account of some spillover of some deliveries, completions? If yes, then can you just highlight on that, please?

Hi, Kunal. Basically, it's two projects which we have pushed the timeline by a couple of months, maybe two, three months.

We had planned those projects to get completed in March '27. The timelines for those completions is now somewhere in June '27.

These are basically your Techzone as well as GRC, these two projects is what we have pushed the timeline. Again, no significant delays as such.

Okay. This just a couple of quarters or a couple of months delay?

Any reason for that?

Couple of months. Couple of quarters, couple of months.

By 20 '29, I think '29 onwards, our estimates are pretty much

In fact, GRC, we have already committed to the tenant that will be handing over in June quarter for fit-outs.

Next year.

Next year. It's fully leased out.

Sure. Also on the cash flow side, right, in this quarter, we saw some a little bit of surge in the expenses, particularly.

Collections were fine, but on the expenses side, we saw some surge. Should we expect a similar level of expenses both in the construction and the overheads for the rest of the year also, or would there be any moderation there?

You can say almost similar run rate, but in Q1, the expenses were little higher because whatever bills were submitted by the contractors in the last quarter, they got certified and we had to pay that bill. The construction cost was a little bit higher.

Moreover, we have a big launch pipeline in Q2 as well as Q3, some of the approval payments and all that we had to make. Because of that, the construction payment was little higher than what we had expected.

Correct. Does that mean that our collection run rate is pretty much on track with our full-year guidance of ₹20,000 crore, and if we are able to achieve the same guidance, then in terms of operating cash flow, would there be some pressure there versus last year, because if we expect the same level of expenses to continue?

Just trying to understand on the operating cash flow side where would we end up.

Even if on the cash flow if you see, it was little lower compared to our full-year guidance because the sales what we are guided for the full year, it has not happened that percentage terms. If you see, we have guided residential collection in the range of ₹21,000-plus, ₹21,000 to ₹22,000 is what we are expecting residential collection for the year should be.

The total gross collection including all other verticals will be in the range of ₹25,000. At the current run rate, it will touch only ₹20,000, ₹21,000, but then once we launch the projects what we had slated in Q2, Q3, okay, those projects will add to the cash flows and definitely our free cash flows also will improve.

Understood. Lastly, one question for Mr.

Razack. We've seen some NCR market really doing well, seems some of the new entrants got some very good response last quarter or so.

Any plans of scaling up there in terms of project acquisitions or expanding in say Gurgaon market or so?

No, we've got three projects tied up. One is, of course, an old project, which is in Sector 150, where the master plan is now finally approved at the sports city.

They're only waiting for the building plans to roll out and then RERA and then launch. That is imminent, that'll happen very soon.

Similarly, we have tied up that is the Prestige Meadows in Sector 92, which will again have a GDV of ₹4,500 crore. Even that is also the agreements are signed, and the plans are drawn up, and they've locked in for approval, which should come soon.

We should have a November launch. Then there is one another project which is Sector 190 or whatever, and that is also called the Prestige Falcon City, and that also is ready for it.

There also we have just doing the final paperwork. I think that also should get done soon.

Apart from this, we are also discussing couple more. There is a good pipeline, and I think we are very bullish on the NCR market, more so since it gave us some great numbers in the last financial year.

We definitely are trying to see that we get the choices. You see, we're just not getting desperate and picking up anything and everything.

Only if it makes business sense and if we believe that there is a bottom line and there is a potential to get good revenue, we are locking in those, and we've locked in three and then maybe one or two more will keep coming as we go along.

Sure. Lastly, just on the business development side, our spend will be in line with what we are guided for at the beginning of the year, around ₹4,000 to ₹4,500 crore?

Because in first quarter,

we saw some higher spend, yeah.

Yes. Then, of course, we'll see that there'll be churn of capital, there'll be inflows and outflows that keep happening.

Right now, see even in Mumbai we've tied up. Yesterday, we just announced that we've tied up Thane, which is a very large project in Thane, and I believe that should do extremely well.

That's going to happen pretty much fast because it's not a SRA project or a redevelopment, it's a clean land. I believe that should do extremely well.

Sure. Thank you, sir, and all the best.

Hi, sir. Thanks for the opportunity.

My main question was on the leverage front. How should we look at net debt moving from here on through FY27?

You did mention that you are going to spend around ₹4,500 crore in BD. Your annualized finance cost is running at around ₹1,800-₹2,000 crore.

If I look at your annuity capex, that's around ₹3,500-₹4,000 crore. Where should we see your peak net debt level over the next 4 to 6 quarters?

That's my first question.

See, on the debt part, if you see, we have guided that gross collections for the year should be close to ₹25,000 crore, of which residential will contribute around ₹21,000 to ₹22,000, it'll be in that range, and the free cash flows will be in the range of ₹8,500 to ₹9,000 crore. The free cash flows what we'll generate from the operations will be sufficient to meet our spends on the capex spends as well as on the business development.

There'll be a marginal increase on debt maybe by maximum ₹1,000-₹1,500 crore, not more than that. I don't think so there'll be a significant drawdown on debt this year.

Whatever launches we are planning, that will unlock capital and maybe there'll be a reduction in debt as well.

Okay. What is your debt at the SPV level, and what is the company's share in that?

Sorry, debt in?

At the SPVs.

You mean joint ventures?

Yeah.

Yeah. Our net debt Prestige share in joint ventures will be in the range of ₹2,200 crore.

Understood.

Includes the DIAL project, then the Lakeshore Drive, and tech specific, these are the major ones.

Perfect, sir. Thanks.

Hello. Hi, am I audible?

Yes.

Hello. Perfect.

Sir, my first question is on the reported P&L. The margins were on the weaker front.

EBITDA was down 4% year-over-year. Just want to get a thoughts around the P&L and how the numbers are going to move over the next couple of quarters.

That's my first question.

See, again on the margin front, we have reported a residential top line of ₹1,600 crore. It was mainly because during the quarter, we didn't have any major completions, because of which the handovers were lower and the reported residential numbers were lower.

My fixed costs remain the same. In fact, it increases because we are planning a heavy launches in Q2 as well as Q3.

Because of the mismatch in revenue recognition, my reported margin is a little lower. If you see at the project level, the margins, it remains the same.

There's no pressure on the project-level margins as such.

Understood. Sir, my second question is on our launch pipeline.

I think I heard roughly three launches in Bangalore and one in Chennai. That still cumulate roughly maybe 30-40 billion of launches.

Then this should imply a presales run rate of another 60-65 billion in the second quarter. Are we not leaving too much for an ask perspective in the third and fourth quarter?

Then if we have 450 billion of launches pending, why are we just launching 40-50 billion per quarter?

We'd like to have more launches in Q2, but approvals and all that, they are at various stages. Basis the current status, we expect some of those approvals to come in Q3.

That's what, we are expecting Q3 to be a big quarter for us.

Is there any problem in any particular city that there is a delay in RERA approval? What's holding our projects?

Where is the delay?

There is no specific problem or delay. It is just the time that certain things take for

process.

Each project is in a different stage in the approval process. Government doesn't perform like the private sector, right?

If it was, then I think we would have more predictable launch timeline and quicker timeline. Unfortunately, that's the case.

We do our best to make sure that things are expedited. I think what we are giving you is a very conservative timeline.

Hopefully, we will launch faster. One or two quarters, things may move up or down.

Some of them were recent acquisitions, which we're pushing hard for bringing to the market.

For example, Prestige Meadows in NCR and

the Chennai project.

Understood. That's the question I had.

Thank you so much.

Thanks for the opportunity. Two, three questions from my end.

First, I think we had good three project additions this quarter in Mumbai and across different markets. I just wanted to know the project structure of probably each of them.

I know Aram Nagar is a JV. Thane, you mentioned it's a clean land, but it's a JDA and even for Borivali, what's the structure like and what would be the margin expectations from these projects?

Both Borivali and Thane are straight joint development agreements. I think the JDA for Thane is even registered as of yesterday.

All the terms are there, very clear.

Sure. Margin expectations would be similar to what we have at the company level, or we are slightly getting better here, or how should we

We always like to get better. It all depends on the cost as well as selling price.

Then selling price is going up and it's a large development. I think Thane will get a GDV of almost ₹9,000 crore, which I believe we also want to really get some great volumes there.

That should do well because it's a nice piece of land, well-located, and it should do well.

Sure. Got it.

In terms of Mumbai commercial assets, BKC and Mahalaxmi, we had done some preleasing earlier, but any progress after that? In Q1, have we done more?

If you can just guide us on some numbers in terms of how much we have preleased for both the assets.

No, this is all work-in-progress. Only thing I can say is there's a great interest and the numbers are very strong.

We ourselves are sort of holding back. At the same time, we are concentrating on seeing how we can get the production in terms of completion done soon.

Work is going on at a brisk pace, but we'll be most happy and most rested only once the project gets completed. I think the teams are really working hard to see that happens.

I don't think we have any sort of doubt on the leasing part as also on the rental. The rentals also quite robust.

Sure. Lastly, if you want to just provide update on hospitality piece on the IPO or in between we had media reports about we doing a private transaction as well.

If you just want to clarify on that, how are we approaching the monetization of the hospitality portfolio?

No, see there as of now nothing new to say except that the teams are working on various options. We'll see what works out.

It's all work-in-progress. See, we could have done the IPO, which again we have time till September 30th.

At the same time, today, if they are interested from various PEs, let's see what comes out.

Yeah. Okay.

Because there also debt is kind of material enough that monetization also can bring down the leverage at the company level that way. Yeah.

No problem. That's all from my side, and all the best.

Thank you. Yeah.

Hi. Thanks for the opportunity.

Firstly, just if you can give us some understanding on the Chennai launches, right, because we see close to ₹12,000-₹13,000 crore of GDV which is planned in this market. How confident are you in terms of the sales velocity given the depth of the market, because in the past what we have seen is that Chennai projects have seen a lower sales velocity at the time of launches.

If you could give us some update on the approval stages also.

Hi. We're pretty confident.

The approvals are in a pretty advanced stage. Prestige Palm Court, we should launch in Q2 for sure.

This has about ₹1,200 crore of GDV, and I think this project should do well as well the velocity. Next would be Prestige Park Street.

This either will launch in Q2 or will move into Q3. This has about ₹1,500 crore of GDV.

This is a luxury segment, we're quite looking forward to it as Chennai has not seen a good quality luxury project in the recent past, especially for Prestige this would be a big one. Next is a large launch we should have in Q3 would be the Prestige Falcon City.

I'd like to mark that both Park Street and Falcon City are recent acquisitions. This is quite quick to turn things around and launch in Chennai.

Falcon City will be 6.84 million square feet, and it's about 5,000 crore of GDV. Q4, we should launch Prestige Cloverdale, which is also a big launch, about 4 million square feet and another 5,000 crore.

That's about ₹13,000 crore of ₹13,000-₹14,000 crore of GDV just the next three quarters in Chennai. We're pretty confident of launching.

Got it. Secondly, in terms of the unsold inventory, which is close to 16-17 million yeah, 16 to 17 million square feet, we see Hyderabad is pretty big, right, almost 7 million square feet.

If you could just give us some view on the sales velocity of the Hyderabad inventory, which I'm assuming is the Golden Grove one, and also for the rest of the inventory.

Yeah. Golden Grove, as we said, is just launched, and we've already sold about 60% of the inventory.

Pretty confident of good sustained sales over the next few months, the next one or two quarters we should see that inventory significantly reduce. We'll also add up some inventory in Q3, Q4 in Hyderabad with some new launches, which is The Orchards and The Prestige Place.

Got it. Thank you and all the very best.

Hi. Just a couple of questions from my side.

Firstly, in terms of launches in Hyderabad, have there been any changes in plans for Prestige Imperial Park this quarter, and also for Prestige Spring Wood, which was scheduled for FY27, that has now been pushed to FY28? Is it a conscious call to calibrate launches in Hyderabad given the inventory levels over there?

No,

not at all. In fact, The Prestige Place is what was earlier called the Prestige Imperial Park.

We've done a slight redesign, uplifted the product. We're pretty confident of bringing that in Q3 or Q4.

In fact, now that Prestige Place will be a mixed-use development, it'll be again a luxury product, because we believe that is the future area. We're getting a hotel, we're getting office, we're getting a luxury premium retail, as well as branded residences, which is the Marriott as well as the St.

Regis. The whole thing has been designed by Benoy, and the designs now finally are ready.

Because such large developments with mixed use with various type of components takes time to even conceive, understand, and conceptualize, and get the product right. Now we've got the product right.

Now it's a question of pushing the authorities to get the approvals, which should come in the next one or two quarters. Once the approvals are there, one thing with Prestige is we were never, never going to push any launch.

Only thing is our endeavor is to see how we can get the product ready to bring it to the market. I'm very confident that once we come to the market, we will be able to sell and get great revenues.

In fact, on The Prestige Place, we've just started construction of the CEC, which will take us at least four, five months.

Hello?

Yes.

Yeah. Sure.

As a follow-up on the balance 450 billion of launches scheduled for later this year, and while you did briefly speak about Chennai, but if you think of the top five or six projects, which would include Chambers 51 in Mumbai, Falcon City Reserve in Bangalore, Falcon City and Cloverdale in Chennai, and two other launches in NCR, that makes up about ₹30,000-₹31,000 crore. What's the current approval status and risk of slippage in these projects into FY28 instead of FY27?

I don't think it'll slip into FY28. We're working very hard to bring it all in this financial year.

It should come and will come. Yes, there could be, but then I don't think it should go into the next financial year.

We've got three more quarters to go. Hopefully, it should all fall in place and we should have it quickly.

Of course, you see now each region has different governments. Now we've got a new government in Tamil Nadu.

Now it seems to be on the positive side. Now everywhere else, it's all work-in-progress.

I think it should come through. Don't see any problem.

Sure. Lastly on BD, I'm not sure if you've communicated what's the outlook for BD for the rest of the year.

You've already closed three transactions in Mumbai, but going into rest of FY27, how should one look at that?

Yes, we will have some balance BD left. You'll see some BD in Bangalore and then Gurgaon as well.

Any number to quantify here, or it's still in discussions?

Work-in-progress is a discussion. We'll keep you all updated as things progress.

Great. Thank you.

Good afternoon. Thank you for taking my questions.

I just would like to know what caused the average realizations to go lower over the quarter, and how would we expect realizations to trend say over FY27 to '29? See,

during the quarter, a significant portion of our sales came from Hyderabad region where the average realization is on the lower side. In the Hyderabad region, the realization is in the range of ₹8,000 to ₹10,000, but whereas the other regions depends on product to product, but you can safely assume to be in range of ₹14,000 to ₹15,000.

Not only Hyderabad region, it's all that particular micromarket that was the thing, and it was a large launch.

Yes.

Now when we'll also do in Hyderabad, we're doing the Prestige Place, and we're also going to do The Prestige, which will be all very high-priced. Depends on the product, depends on the micromarket.

In the current quarter, because of Golden Grove, the average realization has come down.

Got it. Thank you.

Thank you. Sir, my question is on the BKC X Towers.

On the last call, you had said that about 70% is leased. Just wanted to get an update on that, what's the leasing now?

Also, I think on BKC Y, you said that you'll wait for completion. Any initial thoughts, how is the demand for the preleasing on that tower?

Also if you can cover Mahalaxmi preleasing. No,

I think I've given instructions that we should wait and see how the construction progresses, and since we've already got a big tie-up with good companies for this both BKC X and Y. Then, of course, Y has the what's that called, the hotel, which is the EDITION.

Now focus will be on completion. Similarly, on Mahalaxmi, we have got great inquiries.

In fact, we've got some very big inquiry even to buy, but we don't want to sell because finally these assets we're creating to REIT out. I think around 400,000 has already been pre-committed.

Okay, 400,000 has been leased out in Mahalaxmi asset.

Yeah.

Okay. Sir, on our first commercial launch, the Business Bay, when is the launch, and what kind of initial response do you think you're getting, will this be a sellout in this year?

How should one look at this big, large commercial strata sale?

We'll see as it comes. We are hopeful that there'll be a great demand, but we never know.

I believe that the product is good, location is good, and it should meet with a very positive response. We're also trying to see and prime the market and understand what would be the right pricing, and of course it also has to make sense to the company in terms of bottom line.

As we get closer, right now it's all work-in-progress, we're getting the current occupants vacated, almost 50%, 60% have moved, the rest have to get done, and then we need to pay a lot of fees, all that. It's work-in-progress.

Hopefully, in the next couple of months, we should be ready.

More than anything, seeing the progress of our commercial projects complete across BKC and Mahalaxmi, especially the way we've completed the rehab tower has given a lot of confidence in the market, and a lot of people have actually approached us to acquire some spaces there, which obviously we are not selling. This actually has given us a pulse of what's the kind of customer and what they're looking for.

This will actually help us shape our decisions for the Chambers 51 as we come nearer to launch.

Sir, one more question. You did touch upon hospitality and how you're thinking of monetizing it, but a broader question on the commercial portfolio, which is expected to ramp up significantly over the next 2-3 years.

Do you think is the right time to maybe divest a minority stake and raise some capital now and wait for the assets to mature, maybe, and then look at a REIT? How does one look at from that perspective the capex on these assets, which could contribute significantly on rentals?

At what point of time you'll be comfortable to bring in some external capital and deleverage the debt?

We're waiting for the projects to actually complete because we believe and we always believe, Mr. Razack will believe that we want to build a critical mass.

I think leasing these assets out is key, which has been going pretty well. I think in the next year and a half, two, these projects will be complete.

The leasing also should be completed by then. Actually, then this would be a trigger for us to actually evaluate and then take a decision on way forward, but we're definitely considering it.

Just last question on the residential. I have seen some of the projects on your website and they have this 25-25 scheme, like Forest Hill has some projects in Bengaluru.

If you can help us understand what is the strategy there, and how is this scheme being rolled out in new launches? Is it more like sustaining sales, or is it more like luxury?

Some color on that will be helpful to understand how's the demand scenario there.

This is with regards to Prestige Forest Hills, right?

I think it's on the website, the Forest Hill. There's a scheme with 25-25-25-25, 4 years, I think, payment of 25% each.

Some other projects I saw in Bengaluru on the website.

It's simpler thing. Basically, instead of collecting money of 5% and 3% every slab or whatever, what we felt is to give flexibility to customer to pay annually.

It's not that they're paying right at the end, they are paying once a year 25% and that covers over 4 years and that covers that timeline of construction. It's 25*4, that's how we worked this out.

It also gives a little comfort to the customer, it gives us also that the cash flows are tied up and we will ensure that there is the construction progress also.

Okay. Just one last thing on the data center, I think, sir, you have signed some MoU with Government of Maharashtra.

How are you thinking on the capital allocation towards data center, and over near to mid-term, how much time we are away from some announcements on investments, first investments rolling out for the data center business?

The Maharashtra government was very keen on setting up these data centers and actually attracting and bringing in GCCs. This is where we came in.

They had some land parcels which they were going to acquire and give us. That acquisition, we've not yet spent any money there as yet.

We've not yet invested anything as yet. That's a work-in-progress.

I think closer to the time that that acquisition is complete, I think then we'll be able to speak a bit more on strategy. I think overall, if you look at the data centers, what we've done in the past, we would be keen to invest in the land and also the building.

We'll tie up with data center partners or GCCs then to invest further in it. I think it's an open canvas as of now.

Closer to when we'll acquire the lands, we would form up these plans.

Any color on what kind of megawatts, what kind of scale you're looking at or the IT load on the data center side, which you think over the next 2, 3, or 4 years should be there on the balance sheet?

About 100 megawatts for now.

Okay, 100 megawatts. Sure.

Thank you, sir. Yeah.

Good evening, sir. Couple of questions on the balance sheet side.

Can you just help us with the debt numbers?

Hi. We had a net debt of ₹11,900 crore, which translates to debt equity of 0.69.

The gross debt is 15,000, and we had cash and cash equivalents to the extent of ₹3,300 crore.

From March level, reported number on annual report was ₹10,900 crore on net debt. That has further gone by ₹1,000 crore up, is that right?

Yes, net debt has gone up, right, which is on two reasons. We had some gross borrowings, as well as our cash balance we have deployed towards a few land acquisitions.

There was a gross borrowings to the extent of ₹650-₹700 crore, and cash balance reduced by ₹400 to ₹500 crore.

Where do you see it settling down somewhere, and what will be the comfortable levels which you will think we are comfortable at that level? See, again,

we mentioned that we have a very strong pipeline of projects which will get launched in the coming quarters, especially in Q2 and Q3. That will unlock lot of cash flows, because some of the debt had been taken on those land parcels.

Once the projects are launched, some of the debt on those land parcels will get repaid. You will see, especially on the residential front, some debt getting repaid in the coming quarters.

That's quite helpful. Second, when I was looking at your annual report, which you released some time back, the corporate guarantees have doubled last year, an ₹11,000 crore of corporate guarantee apart from the debt.

How should we read that, contingent liability perspective? See,

some of the corporate guarantees it will be a double counting in the sense it has been given for debt for some of the subsidiary companies. When we are raising capital at subsidiary SPV level, some of the bank because it doesn't have a very long fairly new set up, doesn't have a credit history, to raise capital in those SPVs, the parent company needs to give those corporate guarantees.

That debt is already consolidated in the console financials. That doesn't get counted.

If you see at the JV level, we mentioned that we have a Prestige share of net debt close to ₹2,200 crore, ₹2,100 to ₹2,200 crore.

This corporate guarantee amount will keep on increasing? How should we look at, because there is 100% increase in the contingent liability?

Again,

if we are taking any debt at the SPV level, but now if you see going forward, we don't expect it to increase significantly because now most of the projects we are trying to take in the parent entity itself instead of floating a separate SPV for each and every project. Where there's a requirement of the transaction that we have to float an SPV because of the other partner requirement or anything like that, in such cases we'll need to extend corporate guarantees for taking any debt in those SPVs.

It'll be case-specific, difficult to quantify at this point of time. Last,

just one observation. The secretarial audit has made a remark this time and flagged a non-compliance with one section, 34Q,

We are unable to hear you.

The secretarial auditor has flagged a non-compliance, which was never the case with Prestige in the previous annual reports. Any thoughts on that?

I don't recollect any non-compliance. If

you have a look at the annual report, it was regarding the not disclosing the remuneration details of the CFO, company secretary, and others. Again,

that has been the case, not the first time the secretarial auditor has given that, but if you see the related party disclosure, we have given the KMP whatever salaries are paid to the KMP, it is being disclosed, but not individually, but at the KMP level it has been disclosed, at the totality level. Okay.

Thank you. All the best.

Wish you all the best.

Thank you.

Good afternoon, everyone. Sir, currently we are commanding strong position in Mumbai and NCR, and this we have achieved within a short period of time.

Are we looking to add any new cities going forward?

See, right now we're very focused on the four cities and growing in these markets. However, Pune has always been in the radar, and very soon we should acquire and launch projects over there.

Pune is the city that we're looking at very seriously. Apart from this, we're focused on where we're operating right now.

Okay. Sir, our current unrecognized revenue is around ₹70,000 crore, and can we expect this ₹70,000 crore to get recognized next 3 years?

What will be the recognition level for FY27? See,

whatever ₹70,000 crore of revenue we have, it will get recognized in next 4 years. 3 years will be difficult because whatever projects we've launched last year, it will get completed in a span of 45 to 48 months.

Maybe we can conservatively take 4 years as a time period for revenue recognition. This year, we should do recognize on the residential front close to ₹11,000 to ₹12,000 crore of sales.

Okay. How's the hospitality business is going on, and what are the timelines for the listing now?

The listing, we have approvals till September. I think Mr.

Razack mentioned that we are looking at alternative of this one also, if something finalizes on that front, we will definitely consider. On the hospitality, it is contributing meaningfully.

I think we reported a top line of ₹350 crore on Just hold on. revenue front.

Yeah, ₹300 crore was the hospitality top line in the current quarter, and EBITDA percentage for hospitality was around 41%. At the bottom line, it contributed close to 490 million to the bottom line, PAT.

Can we expect hospitality to finalize within next 6 months? Can we say this?

We wouldn't like to put a definitive timeline because the discussions can take some time. Whenever those discussions get finalized, we will definitely give those details.

Sure. Thanks, sir.

Just a small request, can you please add one or two slide of hospitality business into this, it will be great helpful for us?

Since our IPO, this one was still valid and if the markets improve or there's this one, we can definitely decide on the IPO also till September, 30th September. Post 30th September, we can disclose the hospitality details as well.

Thank you, sir.

Thank you once again for a very insightful and purposeful questions. We do hope you understood what the company is doing.

More than happy, Zayd and the rest of the team including Amit will be more than happy to answer any doubts that you still have and like to know what the future is. We believe that the business is strong and will continue to be strong as we go along.

Thank you very much.