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Thank you. Good afternoon, everyone, and thank you for joining us on Godrej Properties Q1 FY 2020 Results Conference Call. We have with us Mr. Pirojsha Godrej, Executive Chairman; Mr. Mohit Malhotra, Managing Director and CEO; and Mr. Rajendra Khetawat, CFO of the company. We will begin the call with opening remarks from the management. Following which, we'll have the forum open for an interactive question-and-answer session. Before we begin this call, I would like to point out that some statements made in today's call may be forward-looking in nature and a disclaimer to this effect has been included in the results presentation shared with you earlier. I would now like to invite Mr. Pirojsha Godrej to make his opening remarks.
Good afternoon, everyone. Thank you for joining us for Godrej Properties First Quarter Financial Year 2020 Conference Call. I'll begin by discussing the highlights of the quarter. We then look forward to taking your questions and suggestions. The first quarter of the financial year has been an interesting period for the Indian economy and for the real estate sector. With tight liquidity, slow growth and significant economic uncertainty, the real estate sector has been struggling with most developers under significant pressure. We believe this represents a significant opportunity for Godrej Properties to consolidate market share across our key focus geographies of Mumbai, NCR, Bangalore and Pune. We would like to use this period as a time where we considerably strengthen our project portfolio through strongly value-accretive business development while also ensuring we continue to significantly scale up our sales and delivery track record. In June of this year, we successfully raised INR 2,100 crores through a qualified institutional placement. Our equity raise was specifically timed to take advantage of a countercyclical investment strategy, which we believe is a good bet in a long cycle industry like real estate. Current market dynamics where the NBFC crisis has further worsened and already challenged liquidity environment for our competitors provides us with an opportunity to strengthen our business development pipeline. We are valuing and structuring all new additions to our portfolio with an eye towards improving GPL growth trajectory in these coming years. We will also be in a position to deploy larger amounts of capital at the project level to improve our economic interest in each project. This will allow us to benefit from an overall growth in sales as the number of projects we develop increases as well as from the growth in our share of profit from each deal. Our fundraise was the first QIP in India post the general election, and we believe the additional balance sheet strength it has created comes at an ideal time to help deliver on our growth strategy. Our operating performance for the first quarter was mixed. Reported earnings are strong with net profit growth of 162% to INR 90 crores, but our bookings performance was disappointing, with growth of only 9%. From a business development perspective, where we added only one new project during the quarter, we have built an exceptionally strong pipeline of new deals and expect many positive business development announcements in the quarters ahead. After our best ever period for new bookings in the second half of financial year '19, we were disappointed with the total value of bookings in the first quarter stood at INR 897 crores. This was largely a result of all our new launches happening in the month of June and some of our plan launches getting pushed out of the quarter. At our new projects, Godrej Palm Retreat in NCR, we sold more than 225,000 square feet with a booking value of INR 139 crores. Both the new ace launches in the quarter, Godrej Lake Gardens in Bangalore and Godrej Nurture in Pune, received a good response with sales of INR 119 crores and INR 90 crores, respectively. Given our exciting launch pipeline, we remain confident of a strong pickup in sales performance in the months ahead and hope to deliver another record-breaking year. A big focus area for all of us is to reduce our project time lines in line with global best practices to ensure we recognize cash flow from our project faster, thereby improving our asset sales and our return on capital employed. This will also help bridge the gap between operating results and reported accounts created by the project completion method of accounting. In the first quarter, we delivered 1.4 million square feet. This includes 1.1 million square feet at Godrej Infinity in Pune and 0.3 million square feet at the Phase 2 of The Trees here in Vikhroli. We are upgrading our capabilities in construction technology to ensure we deliver accelerated project time lines across the board. We continue to believe our national presence, strong brand and robust project portfolio leave us well placed to capitalize on the opportunity currently available in a dislocated and consolidating real estate sector in India. With that, very happy to take any questions and suggestions you have.
[Operator Instructions] The first question is from the line of Abhishek Bhandari from Macquarie Group.
Congrats on a decent performance in this environment of 9% presale growth. I have a couple of questions. In the opening remarks, you said you were disappointed by presales. So what percentage growth do you have in your mind which makes you happy?
So Abhishek, I think, first of all, certainly that percentage would not be 9%. Also, I think it's important to keep in mind that the this quarter was actually a poor quarter as well. So I certainly think that this quarter, we hope would be a much below the average quarterly run rate we deliver this year. I think the opportunity given the kinds of project additions we've seen over the last couple of years and hope to expect to continue to see, we certainly see growth north of 20%. But I think certainly that can go up and down from a quarterly perspective. But over the next 2 years, we certainly hope to do better than 20%.
Okay. Second, Pirojsha. I saw that you've restructured one of the projects from equity share to a profit share. I just want to understand your thinking behind some of these changes, what you make to your [ GDJV ] projects on an ongoing basis, what are factors that were behind changing the contract terms?
Yes. So I think a few different things. One is, I said we've done previous restructuring as well, something like Ahmedabad. So I think we really look at it at the project level and see what the challenges at the project level are and what we need to do to make it a more strategic fit with the portfolio as it looks today. So for Ahmedabad, for example, we were not happy doing a middle income-focused projects in a revenue-sharing agreement. So we converted that to a more DMC kind of structure. In this project in Okhla, on the other hand, it was one of the first projects we added through our residential investment portfolio 5 or 6 years ago. And that project then went through many regulatory-related challenges and delays. Finally, the visibility on the project launch has now got established over the last few months. But the challenge we had was that we were not happy developing this project under the old structure where our economic interest was quite low. it was suited to the strategy we had 5, 6 years ago but not suited to our goal now of ensuring that our economic interest at the project level is taken up. We also have the challenge that the fund life of the bond that was invested in this project was coming to a close. So we preferred to take over the project directly under this profit-sharing structure with the joint venture partner. We're pretty excited about this project. We think it's something we can launch over the next couple of quarters. And actually, see it as a big driver of both bookings and earnings over the next 2 years.
Okay. And my last question is on Slide #18, where you give your quarterly cash flow. There's a INR 916 crores outflow for land and approval. Does it -- does the bulk of it go towards the RK Studio or there are things beyond it?
There were quite a few different buckets for this, I mean, actually 15, 20 projects contributing to this. But the big ones were RK Studios, this Okhla, project where we restructured the project and significantly increased our economic interests. We also had a large investment into the commercial project in Gurgaon that we announced a few quarters ago, but I would like to highlight that, that investment will actually significantly reduce in the current quarter. So it was a bit of a temporary investment that was required there. So those 3 cumulatively accounted for about 70% of the investments. And then there's a long tail of smaller investments.
The next question is from the line of Puneet Gulati from HSBC.
Can you hear me now?
The line for the current participant has dropped off. We'll move on to the next participant that is from the line of Kunal Lakhan from Axis Capital.
So if we exclude the new launches last quarter, we have done phenomenally well, like for example, the ongoing projects excluding the new launches contributed almost INR 1,000 crores plus of sales bookings. But this quarter, that number is around about INR 550-odd crores. How should we read this? Like is there some kind of a slowdown creeping in because of the whole sentimental impact on the sector?
Yes. No, I wouldn't say we should read it like that. As I mentioned earlier, I think we're pretty confident of delivering growth over last year for the full year. We're quite happy with the offtake, we're seeing. I think quarter-to-quarter even on transfer and sales, it's important to keep in mind that there are frequently periods, where we're doing more activations than others. I think one of the things that happened in Q1 is that we did have a couple of regions that we're planning very big launches and therefore, focused all sales energies on those. And with those slipping out of the quarter, you then have this adverse case both on the actual launch as well as on the sustenance activation so it becomes a little bit of a double whammy. But I don't think we're seeing anything in the environment that is concerning us from our own sales traction perspective. There's no question that the overall environment remains very challenging, and it's probably worsened a bit. But I don't think that there's much of contribution from the macro environment to the drop we've seen from Q4 to Q1.
Sure, sure. And my second question is on the ban on subvention schemes. Firstly, how does that impact us because we had a few projects, which were -- we were running those schemes over there. And so how do we look at this firstly, and what could be our counter strategy to drive sales in those projects, maybe we were running these schemes earlier?
So a couple of things, Kunal. First of all, overall, I think it's a very positive move. Because these kind of things are better from a long-term perspective for the industry. Essentially, for us, there may be 1 or 2 projects where we might be running this. But at a portfolio level, it will not be -- it will be less than 5% of our overall sales.
[indiscernible].
And bank subvention still continues. And most of our subvention schemes are -- anyways we don't encourage too many subvention schemes in the organization while the bank subvention continues, and we can get that funding. But as an organization, we try and limit those kind of sales to a fairly low number. Overall, I think it's a very positive move for the industry.
Sure. With this capital -- that kind of balance sheet now, could we look at giving builder subvention if say even banks tomorrow fall in line with NBFCs and stop these subvention schemes, would we look at doing builder subvention?
We might look at a very specific situation. But as I said, this is not our preferred way of sales. So Kunal, on unique situations, if there are certain situations, our projects are at late stages coming closer to OC [indiscernible], very slow moving inventory or those kind of very special situations, we might entertain it. But again, as I said, that will be less than 5% of overall portfolio. So clearly, something, which we discourage internally a lot.
[Operator Instructions] The next question is from the line of Adhidev Chattopadhyay from ICICI Securities.
Just looking on Slide #15 I think, where there's a launch tracker, you've said that the Omkar project in Bandra you're expected to launch it this year. So how confident are we of getting this launch off the ground?
So we have -- we are at fairly advanced stages on design. And we are in the process of submitting our plan for approval. So from a design perspective, we are pretty confident that we would be online -- on track for launch. The other part of, of course, launch is the clearance of slum, which is what our JV partner is working on. There, frankly speaking, it's very difficult to make an estimate. We get confidence from their side that we are on track. But as of now, difficult to make any negative assessment on that.
Okay. So I'm just asking like many of the launches. So is there any likelihood of this -- as you said, in the first quarter, some other projects, you saw delay in approval. So is there likelihood that some of these projects also would again get -- there could be a possible spillover?
I think currently, there is almost certainty that 1 or 2 will I think that if you look at the big headline photo in that and there is obviously a high dependence on regulatory approvals. Frankly, given experience, I would say not only is there a probability, almost certain that out of this list of 20-odd projects, there will be some that don't end up getting launched this year. I think fortunately, we also have the opportunity in the current market to add projects from a business development perspective that are pretty close to ready to go and launch them even within the year. So typically, if we look at it over the past 2 years, we've had some projects that do get launched that weren't on the list at the start of the year as well as some projects on the list that don't get launched within the year. Honestly, I think this year will probably be something similar, but I think the good news is that we have by far the strongest launch pipeline we've had in any year. So hopefully, even with the 1 or 2 projects possibly slipping out, we should be able to deliver good growth.
Okay. Second, just wanted to get some broad eye on the CapEx in terms of project especially for the hotel in Vikhroli and also the commercial project in Gurgaon. So any idea on your budgeted CapEx spend for the year? Or how -- when the projects will get off the ground?
Yes. As I said, we already put a little bit of money into the Gurgaon project in the first quarter. So actually, from here, you'll see negative CapEx because we will be getting a significant amount of money back from the investors. So that project will require no incremental funding from GPL, in fact, will even in the short term, generate cash flows from that project. For hotel, we have completed design and we're in the regulatory approval stage. So at least for this financial year, I expect virtually no CapEx there either. I think construction probably will only get started the subsequent financial year. There, we don't really yet have an update on how we're going to financially structure that project in terms of whether we develop it through GPL cash flows and then monetize it in some way or look at some sort of different structure for that size. And when we have any update there, we'll certainly provide that. But at least in the current year, we don't expect any cash outflow for that.
Sure. And just one last housekeeping question. In the last couple of quarters, you have had a significant spend on land. So assuming like we don't add any more land parcels, excluding that assumption, so do you have any other substantial payments to go in this current financial year?
Yes, they're all linked to approvals and things, but we do have significant flows planned for things like Bandra and Pune portfolio. But again, those will be linked now quite likely with the projects getting launched and things. So -- and the time line for that outflow given the high value, for example, in a place like Bandra, we think will be quite limited. But certainly, there are additional outflows required for those projects.
The next question is from the line of Puneet Gulati from HSBC.
Is it possible to give some more contours on the deal, which you're talking about where you're actually getting money back from your investors in Gurgaon?
Sure this is just to the -- if this a one-off commercial projects that we're doing in Gurgaon. And they are build-to-core program that Godrej Fund Management manages. Now if that project will -- actually our equity stake in that project will be reducing, and therefore, we will be getting some of that cash back. And we expect that to happen even hopefully this quarter.
But will the reduction in equities -- you had got 1/3, about 30% kind of stake, right?
So that will reduce. Our terms on the fund has now been finalized at 20% of GPL investments.
Okay. Second. You also mentioned that you wanted to increase the stake of your share of business in many of these projects. What is the progress on these? Are you looking at existing projects, which you're doing or newer projects with higher stake?
Puneet, largely of course on newer projects. I think we have a very active business development pipeline. What we're looking at quite a bit across market is large platform type structures as we describe them similar to the type we did in Pune last year. So I think we're thinking even 1 or 2 of these can make a very meaningful difference to the portfolio, and we are seeing such opportunities across all our focused markets. And I think the goal will be, hopefully, to close some of them during the financial year. We're also of course continuing to see a lot of opportunities at the one-off project level. So I think most of the effort is certainly focused on new projects. But there are opportunities within the current portfolio also like this Okhla one, which make we think a great deal of sense and fit within kind of the current strategy of the company.
Okay. Lastly, on my side. I know you started entering into these joint development agreements in a really big way from FY '17. So conditions have significantly deteriorated since then. Are you seeing a lower-than-expected IRR from these projects? Or has that been largely going as per your expectations?
It certainly isn't going as per expectations for that portion, Puneet, but it's still very early days, frankly, for any project added in the last couple of years, many of those projects still to launch. Certainly, all of them are still to be delivered. So I think the proof of the pudding isn't really available yet. But so far, I think we're very happy with what we've seen. I think if you look at the kind of volumes of sales we've seen across launches over the last few quarters, it gives us a lot of satisfaction. I think if you look at the pricing of those launches, there's no discount to kind of pricing from a couple of years ago. So I think very much on track. To date, I think if anything, the challenge in the market and the relative advantage that gives us has been better than expected. And I think we're quite happy with the progress over the last couple of years.
Okay. So the price at which you would have underwritten in FY '17 hasn't changed for you when you launched it now? And the sales velocity is better than what you had. Is that what I heard?
I think by and large that's correct. Obviously, each project would be a bit different. But yes, I don't think at an overall level, certainly, there's no reduction in asset pricing or velocity from expectation.
The next question is from the line of Sameer Baisiwala from Morgan Stanley.
Rajendra, just to confirm, we have INR 4,000 crores of gross fit and INR 3,000 crores of cash that's roughly about on the balance sheet?
Yes, that's true.
Okay. And this whole cash would be deployed for [ BD ] purposes.
Yes.
And earlier the net gearing target used to be somewhere around 100% to 150%. But now with much expanded equity, any updated thoughts on that?
So I think that by and large, still holds true. And again, the whole reason to raise this equity was to make sure that we were making the most of the kind of opportunities that are available in the market as it stands today. And certainly, no part of it was thinking that we'd like to replace debt with equity on the balance sheet. I think we believe one of the competitive advantages we enjoy in effect -- our liquidity is such an issue and the cost of capital for most players is such an issue is that we're able to access debt at industry-leading costs. I think our average borrowing cost today is a shade over 8%. So we're quite happy to maintain that balance on the balance sheet, and I think you will see that net gearing number, hopefully, escalate quite a bit over the next year or 2 as we see some of these business development deals we're looking at. And I think that broad target range of 1:1.5 is the one -- is something we'd like to maintain.
Okay. Great. And just one final question on the industry consolidation. We are already hearing that -- I don't know but different reports said different things, 50%, 70% of small developers are getting consolidated. Anything that you are seeing on the ground? And what does it mean, it means that those projects have stopped and the largest player is buying into those projects? Or any thoughts on the industry dynamics?
Yes. I think this process of consolidation, I think, we've been talking about for 5 or 6 years. It's very quite visible, and I think certainly has come under greater focus with the introduction of, say, regulation act and of course all the challenges we've seen in the market post this ILFS situation. I think people are exiting -- or companies are exiting the market is happening in a few different ways. Certainly, one of those is through partnering with larger developers for projects, and we've seen that almost all our new projects now are in partnership with other developers. You're also seeing some situations where banks and NBFCs are taking over projects of companies and some where smaller companies are just exiting whatever they have at the moment and clearly realizing that they don't want to remain in the sector. So I think there's a variety of different shapes this is taking. But I'd say the overall situation continues to be very difficult. I think post this NBFC issue, I think the number of developers that are under stress has only increased, including I think some of the larger ones. So it's a very dynamic market at the moment. I think there's a lot of challenges, but certainly, at least an equal amount of opportunities from our perspective.
The next question is from the line of Abhinav Sinha from CLSA
Just 1 question on the broader market as well. So you would say that the markets are relatively weaker now than they were, say, 1 year back or it still varies only location which we are looking at?
I mean that certainly does vary from location to location. But yes I think as a broad statement, things are probably a bit weaker for the sector now than a year ago. I mean a year ago was also bad, but I think it has certainly got lower since this ILFS issue. Let me just qualify that a little bit. I think funding from -- funding access for developers, the things have gotten worse and really from a customer demand perspective. I think the customer demand while not outstanding by any stretch, is not worse than it was a year ago. But I think the sector is in greater pain because their access to liquidity through NBFCs is certainly much worse than it was a year ago.
Right. So you are basically seeing that overall sales are roughly the same but launches are lower. Is that what you are saying?
You mean for us or for the industry?
For the industry.
Yes. I think if you look at, again, the better proposed leading developers in each cities, if you look at their numbers, I'm not seeing any -- certainly any reduction over the last year. I think, however, if we look at the broader industry underlying that, I think things have been terrible both now and last year. But I wouldn't say there is a huge deterioration from last year. But again, let's not say much given how bad -- badly, most players were struggling even last year.
Right. And secondly, on the -- for the broader industry as well and maybe from your own experience, is availability of mortgage an issue for any segment?
No, I don't think that's the key issue. I think it's more of a construction loans and other fundings that developers were accessing from NBFCs that's come to nil. I think there's a little bit of -- because some of the HFCs and NBFCs are under huge pressure themselves, there are certainly instances where people aren't disbursing sanctioned loans, both construction loans and mortgage loans. But I think there obviously are opportunities at least for better developers or customers or better developers to work with banks and so forth.
And then second, just on the P&L. So going forward in the year, I mean, with Trees delivered, what is the next sort of major project, which we can see being delivered from the revenue profit perspective in the next few quarters?
I think we still have a little bit in The Trees. First of all, I think there's a small portion of the second phase that still hasn't been recognized and the entire first phase that hasn't been recognized. I think honestly, after that, there is no project of sort of equal magnitude for the next couple of years. But there are a lot of projects that I think will have positive impacts. We've had good sales in places like our Greater Noida township and several other of the launches that you've seen over the last couple of quarters. I think one of the big focus areas is making sure the revenue recognition of those projects happen sooner. And I think in terms of projects that are -- we hope to launch this year, there are several, which we think will be quite significant when they reach revenue recognition, including this project in Okhla we were discussing earlier, including of course the project in Bandra, the new project we added in Chembur and RK Studios this quarter. But I do think that it's going to be a little more distributed for the next few years than it has been with The Trees, which is of course, was the good thing. But I think -- yes, there are not too many projects in the next couple of years that are equivalent to The Trees.
Sure. And one last bit. If we had this slow around the group's land in Vikhroli during the quarter, does this impact when we are able to next launch any large project in Vikhroli or these things are independent or you will put a time line to this?
No, this doesn't impact the timing of the launches. We still hope to do that in -- towards the end of the financial year as we discussed. And I think while obviously, these reports were grossly speculative, I think we're not seeing any change as of now to what we have communicated on Vikhroli either from a time line or what the structure is.
The next question is from the line of Parvez Akhtar from Edelweiss.
Just 1 question from my side. I mean in view of the liquidity crisis in the industry and especially after the end of the subvention scheme. What are our views on pricing in general in the industry?
I think we'll have to wait and watch how things play out. And clearly, I think it's this current situation, which is already very bad worsens into a full blown crisis. I think there's certainly the possibility that in the short term, prices will correct. That said, I think if we look at it from a slightly medium-term point of view, we believe there are a lot of indicators that actually the sector should come out of this cyclical downturn. One, of course, is that affordability is now the best it's been in more than 15 years. Interest rates are the lowest they've been in the last decade. People's incomes have been rising over the last 5, 6 years while property prices are flat. And the other thing that's important to keep in mind and what leads to a typical real estate cycle both here in India and globally is exactly because the -- when things are good, developers overcommit supply, that creates its own set of problems, takes some time for it to work through as we're seeing now. But when things are bad as we are now, the number of developers who are focused on growth or focused on project additions and new launches also comes down very significantly. And what that does is it significantly limits supply. And as and when demand does pick up you then get into the next leg of the cycle. So it's anyone's guess whether that timing is something that's imminent or something that's 2 years away. But it's very hard for us to see why 3 or 4 years from now, the sector wouldn't be in a much better place and wouldn't be in a typical up cycle that you see in the sector. I also think, frankly, that in some ways, it's almost good that the clear problems in the economy are becoming as apparent as they are because I do think that will force decision-makers in the government and RBI and so forth to take proactive steps to get demand moving again. If you read the RBI policy statement, for example yesterday, in addition to a 35-basis point interest rate reduction, I think clearly called out that its focus would be on driving private investment. In my opinion, there's no way to get the Indian economy moving without getting the real estate sector moving. And so I think that will be a big focus. And while I don't expect the results to be immediate, and I do think we're probably in for a tough few months, my sense is that it's quite unlikely that over the next couple of years, you won't see a turnaround in the sector. And our hope is that if we are intelligent and outstanding in our execution over this period, and if we're able to make sure that we strengthen our project portfolio through adding projects when valuations are more reasonable and when more developers are willing to have such conversations, we then think that, that timing could work extremely well as the next up cycle starts.
The next question is from the line of Tanuj Mukhija from Bank of America.
Could you please elaborate some of the key reasons why we haven't seen any project launch in Mumbai in the last 6 months?
Yes. I think we don't have any projects with the full regulatory approvals in place that are ready to launch. And there will be, we think, hopefully, several launches this quarter even. But there's -- until these regulatory approvals are final and done, there's always some uncertainty. But I think scaling up in Mumbai is one of the key priorities of the company this year. And hopefully, if things like our Chembur project, Vikhroli project, Bandra project and several others that we have planned do get launched, we'll see a big improvement in Mumbai sales.
Great. And as we look at your Slide #14 of the presentation, the planned launches. You have planned approximately 3.8 million square feet of projects to be launched in Mumbai alone. So just wanted to check with you, are you confident that you'll be able to launch approximately 4 million square foot for sale in the remaining 7 months in this year?
Again Tanuj, I have [ grinned ] with a similar question earlier. I think we are not experienced enough at this point to say that we are 100% confident that all regulatory approvals will come in. Almost all of these projects do have some aspects of regulatory approval finalization to them. But I can certainly say that if the regulatory approvals are in place, that we are very confident of operationally launching this number of projects and are extremely confident of ensuring a good response to these projects as well.
And lastly, a few database questions. Could you please help me with the revenue recognized this quarter from your Trees and Infinity project?
So the revenue recognized from Trees were around INR 550 crores. Infinity being a 1-line item, the only profit portion flows into the P&L, which will be around INR 20 crores, INR 25-odd crores.
The next question is from the line of Manish Jain GormalOne.
My question was on the construction time line reduction initiative that we have taken, the finished Trees in 32 months. How has been our progress across all the 4 key focused markets that we are targeting?
Manish, a couple of points. One is getting greater efficiency within the technology like Mivan, which we are doing where we've seen success in Trees. We are also targeting very fast time lines in projects in Pune. So those are efficiency-based improvements where instead of typically 3, 3.5 years, you might cut it down by 6 months. But the real game will change when we can adopt the new technology, which we have been speaking about. Now there's a lot of progress happening on that. And we are evaluating to implement -- pick up plans in our Pune portfolio, especially in the light of the scale, which we are going to operate there. Now these are strategies -- this is where you have to get it right because it's a big investment. So we are taking our time to get those in the right direction, but we are very clear strategically that is the direction we want to go to.
The next question is from the line of Kunal Lakhan from Axis Capital.
So just trying to understand, like we are almost done with The Trees in terms of sales and even like completion is pretty much on track. Just wanted to understand the -- in the FY '20 launches the Vikhroli mixed use. This is not part of the second, the other projects, with [ GNV, ] which where we are basically development manager. Is that right?
No, it is [indiscernible]here.
Sorry. come again.
It is part of the [indiscernible] Godrej work.
But That -- I thought that development was only residential. This sales mixed use.
That's a largely residential development, but for The Trees, we don't intend to introduce all things given the scale is residential. So there will be other aspects, but it's certainly much more residential currently the plans and The Trees that's held for.
And secondly, Rajendra, how much of revenue is yet to be recognized from the old legacy low margin projects?
Kunal, I can give that offline. I don't have that data ready with me right now.
[Operator Instructions] As there are no further questions, I now hand the conference over to the management for their closing comments.
Thanks very much again for joining us. I hope we've been able to answer all your questions. If you'd like any additional information, please don't hesitate to reach out to us. Thanks again.
Thank you.