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Arvind Smartspaces Ltd
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Ladies and gentlemen, good day, and welcome to the Q2 and H1 FY '25 Earnings Conference Call of Arvind SmartSpaces Limited. [Operator Instructions]. Please note that this conference is being recorded.
I now hand the conference over to Mr. Amit Sharma from Arvind SmartSpaces. Thank you, and over to you.
Thank you, Siddhanth, and I belong to Adfactors, and we are the IR partners for Arvind SmartSpaces.
Good evening, everyone, and thank you for joining us on the Q2 and H1 FY '25 Results Conference Call of Arvind SmartSpaces Limited. We have with us today on the call, Mr. Kamal Singal, Managing Director and CEO; Mr. Avinash Suresh, Chief Operating Officer; Mr. Mitanshu Shah, Chief Financial Officer; Mr. Prakash Makwana, Company Secretary; and Mr. Vikram Rajput, Head, Investor Relations.
Please note that a copy of the disclosures is available on the Investors section of the website of Arvind SmartSpaces Limited as well as on the stock exchanges. Please do note that anything said on this call that reflects the outlook towards the future, which would be construed as a forward-looking statement must be reviewed in conjunction with the risk that the company possesses.
I would now hand over the call to Mr. Kamal Singal for his opening remarks. Over to you, sir. Thank you.
Thank you. A very good evening, and a very warm welcome to everyone present on this call. Thank you for joining us today to discuss operating and financial performance of Arvind SmartSpaces for the second quarter and half year ending September 30, '24.
Diwali is just around the corner, and I wish all of you a very, very Happy Deepawali and a very prosperous new year. The current real estate sector is being driven by a strong affinity for home ownership and premiumization, launches continue to track lower than demand, leading to a decline in inventory levels. Inventory overhang for the industry remains comfortable at 12 months. Further according to [ RBI data ], home loan deployments exhibited a robust 40% Y-o-Y growth in financial year '24.
Also, credit deployment to the housing sector has expanded by 13% Y-o-Y as of July '24. This indicates a sustained upward trend in both homeownership and carried uptake. We expect buoyancy to persist in near term where branded developers with a low leverage and high design premiumization capabilities will continue to capture emerging opportunities.
Coming to the operational update for the quarter, I'm pleased to share that quarter just concluded has been best ever quarter for Arvind SmartSpaces with some notable achievements in terms of bookings and launches. For the first time, we have crossed INR 400 crore milestone for quarterly bookings. Q2 FY '25 bookings improved 26% Y-o-Y to INR 464 crores. We had a new launch with the name, AquaCity at Kalyangadh, South Ahmedabad towards the end of the quarter, which received a landmark response, probably the biggest ever plotted and villa launch in Gujarat. Arvind AquaCity has achieved bookings of more than 500 crores at the launch itself. It is heartening to see that all our new launches over the last several quarters in several different micro markets have created booking milestone for us.
Our half yearly performance has also been best ever in terms of bookings and collections. H1 bookings value grew 32% year-on-year to INR 666 crores and H1 collections grew 6% Y-o-Y to INR 497 crores. Our business development initiatives, especially in vertical development segments are progressing well. Recently, we signed a new residential project on ITPL Road in Bengaluru with 4.2 lakh square feet of saleable area and a potential of INR 600 crores of top line. Located near Whitefield's IT hub, this is our 12th project in Bengaluru, further sending our presence in this growing market. This follows the announcement of Bannerghatta and Forest Trails high-rise phase, both vertical projects in Bengaluru.
Now moving from operational updates to financial highlights. We have reported a revenue of INR 340 crores, up 144% on a year-on-year basis. EBITDA for H1 grew by 153% to INR 91 crores, and PAT grew by 137% to INR 47 crores. In Q2, we reported a revenue of INR 265 crores, up to 65% year-on-year and EBITDA grew by 320% to INR 83 crores. PAT for the quarter grew 293% to INR 43 crores for the quarter.
Our balance sheet position remains very strong despite expanding operations, our net debt decreased to a negative of INR 195 crores from a negative of net debt -- from a negative net debt of INR 58 crores as on June 30, '24. A crucial parameter in real estate reflecting the underlying business performance quite well is the operating cash flows. During the quarter, operating cash flows amounted to INR 106 crores and INR 203 crores during the first half. We estimate an unrealized operating cash flows exceeding INR 2,986 crores coming from the current pipeline of projects.
As we look ahead, the optimism in real estate, especially mid-income and premium segments remain very strong. At ASL, we have reached a key inflection point in our growth journey, our asset-light model, which combines quicker-cycle horizontal projects and joint venture development agreements. Joint venture and development agreements ensure faster project turnarounds, strong cash flow generation and higher returns. With robust cash flows, platform funding and sufficient leveraging capacity, we are very well poised for a scalability in medium to long term. From an FY '25 perspective, we are progressing well to end the year on a very strong note driven by a solid pipeline of launches and BD in the coming quarters.
We can now take questions.
[Operator Instructions]. Our first question is from the line of Shreyans Mehta from Equirus.
Congratulations on a very strong set of numbers. So sir, first coming on our presales. We are guiding for closer to 30%, 35% growth. And given the strong 1H any possibility to revise these numbers? How should one look at the presales numbers? As the first question. Second, in terms of new BD pipeline, we were guiding for closer to INR 4,000 crores, INR 5,000-odd crores? So in terms if we've done INR 1,000-odd crores. So how should one see the 2H especially from the Mumbai market? These are the 2 questions from my side.
Yes, I mean, we have had a very strong Q1 on fresh sales. Last year, whole year, it was around INR 1,100 crores that we clocked on the fresh bookings. And Q1 is already kind of midway, et cetera. So we are very confident that we will be able to achieve 30% to 35% growth that we have communicated earlier. This has been the trend for last several years and quarters. And I mean, we are all hoping that the same should be continued.
On BD, yes, in the first half or cumulatively till the first half, we've done only INR 1,000 crores of BD -- fresh BD while the target has been to do INR 4,000 crore to INR 5,000 crores. Last year, we did in excess of 4,000 as you very well remember. But we are confident that it's bunching up towards the remaining 2 quarters, but we are very confident that we should be able to achieve our target of anything been INR 4,000 crores to INR 5,000 crores of BD for this year as a whole.
And sir, any sense on how much are -- I mean, how much bids we are currently evaluating, which could give us some flavor in terms of the new BD which we can achieve like Mumbai, Bengaluru, how many projects or the size of GDV, which we are evaluating?
So as I said, we are targeting to achieve INR 4,000 crores to INR 5,000 crores as a topline addition this year. In terms of valuation, the pipeline is normally supposed to be very big in terms of number of projects is to be fairly large, a very large team of professionals out there on ground scouting every day. Of course, so many deals will have different stages to cross. And let's say, A, B, and C, et cetera will be quite a few. So numbers are not that relevant. The stages at which the deals are very important. And I mean, sitting today, I can tell that the number of fairly mature stage projects are fairly healthy, and that gives us confidence that we should be able to clock this INR 4,000 to INR 5,000 crores of BD for this year.
Got it. Got it. Sure. And sir, one last question from my side. The NH47 project which we launched, so the entire phase was launched or we are launching it in phases?
Launched in several phases. So this phase was -- I mean, we sold just about 2/3 of the phase that we launched in these initial days.
So 2/3 of INR 435 crores or cumulatively, we crossed INR 600 odd crores?
Of around INR 900 crores. So we would have sold around INR 600 crores as on the date of announcement that we did on this. So INR 600 crores out of INR 900-odd crores give and take few crores here and there as a ballpark. So we would have sold 2/3 of what we've launched in this phase, and this is only phase 1 of the project, and we'll have one more phase coming.
Got it. Got it. Sure. I have a couple of more questions. I'll join back in the queue.
Our next question is from the line of Biplab Debbarma from Antique Stockbroking.
My first question is regarding revenue recognition. Sir, for the profit development, when do you recognize the revenue?
For a plotting revenue to be developed is when the project is completed. And that's it, I mean, in the project completion environment, it is about completing the project. The moment project is completed, we start recognizing this...
So when do you say the project is completed, when all the infrastructure amenities are delivered. I'm just trying to understand. Because for a vertical project we know after OC received after a few months we handover the key. But for this process -- when exactly do you say the project is complete?
So in a horizontal project, it depends upon what kind of amenities and what kind of things that you promised to the customer. On a physical infrastructure side, normally, it's supposed to be ready with all the roads, all the drainage works, all the electrical works, [ electrical commission ] should be coming NOCs from Pollution Board and other relevant authorities, electricity, et cetera, should come, power should be charged. So it's kind of a plug-and-play situation needs to be ready for the customer to come, take and then start construction of house, if they want it, whenever they want it. So it's all physical infrastructure required as a fully developed plot that needs to be ready before you see that the project is completed.
Okay. Sir, my second question and third question is what are the key launches in the second half of this financial year? And what will be the [indiscernible] of each launch, which is my second question. And third question is, is there a strong possibility of deal closure in MMR market in second half of FY '25?
Sure. There are at least 2 to 3 very important launches planned for the remaining part of the year. This includes a high-rise apartment projects, one of the finest that we are designing or we designed already in Bengaluru that is situated at Bannerghatta Road, then we have a couple of new phase launches coming up at our existing projects, one at the [ great lands ], there is one entirely new phase to be launched. That should happen in the next couple of months.
And similarly, we have one fresh new launch adjacent to the existing Orchard project as a new phase. So these are the 3. And then we have one lined up at Surat. Surat is one of those bigger projects, and this is going to be our first one in Surat that is also planned to be launched somewhere towards end of Q3 or Q4, latest for the year. So 4 to 5 launches, 4 launches are the visible launches at this point in time.
What would be the GDV of this 4 launches?
GDV of these launches should be to the extent of around INR 2,000 crores. If you were not to bifurcate all these projects into further phases, for example, Surat is a little big project. But the entire top line of Surat is launched in 1 short will be more than INR 1,000 crores. If you were to count that then around INR 2,000 crores in total, if Surat was to be divided into 2 phases of, say, INR 500-odd crores then it's going to be around INR 1500 crores for the year as a whole in terms of the balance launches for the year.
And the first question about the possibility of a deal closure and MMR in this financial year?
Yes. So MMR, I mean, we -- I mean, first fairly decent sized project, we are very close to kind of announcing it, although there are still a few things to be done. We, in our initial plan would have done that by now, but it is taking a little longer than what we had anticipated. Nevertheless, we are apparently very close to closing everything which is relevant and then come out with the details for same project. So we should be announcing something in near future.
[Operator Instructions] Our next question is from the line of Akshay Kothari from JHB.
Yes. I wanted to understand in the NH47 Kalyangadh launch, if suppose I did a booking for a plot of, say, INR 50 lakhs. And today, I have to pay only INR 1 lakh. Is that correct?
No. As we speak today, it's 10% received.
Okay. But you have been booking of around [ INR 528 crores ] and received only -- collection is only around INR 15 crores?
So cumulatively, if you have to see, we would have easily done more than maybe INR 55 crores, INR 60 crores at this point in time. I don't have the exact number, but definitely will be in excess of INR 55 crores that we are talking right now for the cumulative booking.
Okay. So wanted to understand, say, I have heard of many investors actually investing, say, for INR 50 lakh plot INR 1 lakh today, and they have booked 2 plots. But some of them were saying we are allowed to cancel. So in case if wish to cancel the plot, would we be refunding that INR 1 lakh back?
Yes. So there is a window. So what happens that we can launch 2 ways. One is the [ UI ] route. The other is the direct selling route. In this case, we followed the [ UI ] route where, we first generated interest to ask people to apply, got all these applications, scrutinize them. And then there is a day or the event which goes for 2 to 3 days at a location where you can handle the kind of crowd that is expected to get a booking number of 500, 600 or thereabouts. So that maybe you expect at least 2,000 people to come and take time to actually choose and do all those things. So that happened.
That INR 1 lakh is only for the initial interest that the customer has to show. Now after this phase, if they were to cancel, they can cancel. But during this period or on the day of event, you have to pay minimum 10% before the booking is confirmed, announced and taken into books of accounts as being sales, which has happened. So whatever numbers we are talking about here is post that event and post receipt of 10% money that we take. Anybody who wants to cancel would have canceled already and only those who have paid 10% are getting counted in the sales number that we announced, and right now and booking forms, et cetera, all those formalities are already done.
Okay. And by when will this Phase 1 will be completed?
In terms of development?
Yes.
So it's a very large development. So if summing the total project is more than 25 lakhs square yards, which is almost like INR 2.5 crores per square feet. So it's 3 to 4 years' time that we have set. And then the next phase et cetera will also be parallelly ruling at some point in time depending on the sales velocity et cetera.
One great news about this project is also that the top line estimation for this project has gone up almost by 10%, and that is because we are able to realize from start itself more than what we had anticipated and more than what we had mentioned in our earlier presentations on the potential top line coming from this way. So we've already kind of gone above the threshold pricing. And now the estimation for the project has gone up by around 10% in terms of top line.
Sir, that's a great news. Sir, secondly, I also wanted to understand, what's your view on land aggregation. Last time I did ask about annuity base and you do that -- there is currently no interest in going into any sort of annuity portfolio. But land aggregation since we are currently net debt free, in fact, you have cash balance. Any views on land aggregation?
So we are not a land banking company per se. Generally, the asset model of the business model is very asset-light. Most of these very, very large projects which are in excess of, say, INR 10 lakh square yards, crore of square feet or going up to 2.5 crores square feet, et cetera. I think most of these, in fact, all of these are broadly on joint development basis including AquaCity. To that extent, aggregation is outsourced.
And there are people out there who need to have a couple of capabilities, one being capability to aggregate from farmers, dealing with the farmers, et cetera, to then being having an application to be trusted as partners in a long-term arrangement like a JD, which spans anywhere between 4 to 5 to 6 years of relationship with us or for that matter for developers. Finding this combination is something which needs expertise, needs credibility from the developer standpoint, et cetera. And our company has been able to do it repeatedly. Some of the largest JD tranches have been carried out by us in recent past and even earlier. And every single sort of relationship is a very, very fruitful relationship for us and for the landlords as well. So this is broadly done on that basis. Aggregation is great, but then it has its own risk. We mitigate this is to a very large extent by outsourcing it, and that's how we'll continue to do.
Having said that, there are opportunities where we could directly acquire, directly doesn't or almost never means that it acquired from the farmers, but there are aggregators who you can send into the market and say that, look, this parcel looks interesting. It looks like 40, 50 acres is already ready and can be done, but why don't you work and make it 100 and we start investing in those. Now those are 2, but nevertheless, they can also be done. In a right proportion, this kind of aggregation risk can be taken. But broadly speaking, aggregation risk is outsourced as I just mentioned, with some little bit of salt and pepper being spread where we directly involve ourselves in aggregation through mediators.
Our next question is from the line of Eesha Shah from Axis Securities.
I have 2 questions. First one being, again, on the cash that we have reduced our net debt further to INR 195 crores and we have an operating cash flow for the quarter of INR 100 crores. Along with this, we also have our unutilized funds from HDFC. So what are our BD plans going forward? Are we being more aggressive because as we can see, we do not see a lot of deals coming up apart from the ones that are already launched? And the second question is on AquaCity. What are the kind of realizations that we are seeing right now? And what is the growth rate that we're expecting in the realization for AquaCity going forward?
Sure. So 3 questions. Yes, as you very rightly said, OCF has been at a healthy INR 100 crores for the quarter, INR 200-plus crores for the half 1, et cetera. And we're sitting on a INR 195 cash in the balance sheet at this point. And of course, there is scope to leverage the balance sheet to some extent, conservative but at least some extent. And we have a little more expensive money in the form of platform money as well. So altogether, quite a bit of headroom exists to acquire new projects.
In fact, that is the task #1 for this entire group. The team is absolutely busy doing that. It is bunching up a little more towards these 2 quarters left for the year, but we're very confident this money will be deployed, and we'll be able to create more than INR 4,000 crores, INR 5,000 crores of inventory or pipeline -- fresh pipeline for the year as we have been talking in the last few calls.
So that's on track. We are, at this point, quite confident of deployment. We have always had a very fine lens on what we acquire. This also reflects the ratio of projects which have been able to hit the market almost on time. And at this point, as we speak, there is nothing at all, which is stuck anywhere in the pipeline. I mean that's sales, something about the lens, which is possibly a little finer than the average fineness that industry applies to that extent we are conservative. But at this point, as I said, very confident of deploying this and creating a pipeline of INR 4,000 crores to INR 5,000 crores for the year.
Coming to AquaCity. As I just mentioned, we have exceeded our targets in terms of what average realization we would have got in the number of units sold till date, and this is approximately 10% more than what we had as a business plan. We launched this project at something like INR 5,200 plus INR 1,800 other charges, which roughly translates to INR 7,000 per square yard plus taxes and other stuff and PLC charges, et cetera. So the base price was more like a INR 7,000 per square yard. As we speak, it has gone up to something like INR 8,300, INR 8,400 plus plus. And as we progress, obviously, this should increase further, but that's something in -- we are very comfortable on price in terms of achieving our numbers because we already got a head start and margin out there in addition to what was planned.
But generally, I mean, terminally, we do see further increase in price as we progress towards the project. One orbital change comes into the project in terms of pricing when the project starts, so in look and feel and the quality of development, et cetera, et cetera, that one point in time, maybe 2 to 3 years into the project when a substantial change comes. But otherwise, our terminal increase -- our normal increase will keep coming.
[Operator Instructions]. Our next question is from the line of Amit from Citi Advisory.
Sir my question is regarding how the JV works. So usually, we work on 20%, 25% EBITDA. So let's say, a JV project is of INR 100 -- sorry, for the INR 100 projects, it's JV 50%, then do we get 25% on this or 25% on the entire INR 100?
No, no, whatever margins we see and we target and the number is absolutely right, 20%, 25%, it's supposed to be on the total value. So whatever is the business value or the sales value, who's ever gets it -- I mean, eventually, landlord or us. On the total top line, it supposed to be 20%, 25%. So if the property value is INR 100, then my margin should be INR 20, if the total value is INR 100, just to repeat, if INR 50 goes to the landlord on account of land within this INR 100, then out of INR 50, which is remaining with us, I should not spend more than INR 30.
Okay. Understood. And sir, my second question is regarding this [indiscernible] project plan. So by when do we foresee that we'll be able to sell off the entire inventory. So it's already completed and...
We'll be exiting this project this year. Hopefully, yes. [indiscernible] our inventory there not the landlords. 20 units are left, and we are there hoping that we could be able to exit this. I mean BO has just come, handovers are started happening. We've handed over most of the units, maybe barring a very few number of units from the units which are already sold. And now that the project is up and running and visible, footfalls have already increased, and we are hopeful that on a substantive basis, by the end of this year, we should be able to clear this inventory.
Our next question is from the line of Ritwik Sheth from Arkay Ventures.
Best wishes for the upcoming festive season to the entire team. Sir, a couple of questions from my end. This quarter, if we see the sustaining sales, it has been lowest in the last 6 to 8 quarters despite having a good inventory of INR 1,500 crores of ongoing project. So any specific reason that you would want to point out or anything, which was slow moving because -- yes, that's the first question.
Sure. Ritwik it's a very good question. In fact, this is one question we are addressing ourselves within our system. Although as we speak, the -- so sales inventory is almost like INR 1,800 crores, including now the inventory, which is getting added due to AquaCity. But other way to look at the same data is that out of INR 1,800 crores almost like INR 700 crores to INR 800 crores worth of inventory now is coming from AquaCity and Uplands 2 and 3, which have been launched in last year of this 1 or 2 quarters.
So [ equity ] means 2 things. One, as we are launching more and more projects availability of inventory is improving, sustenance inventory is improving. Before this sustenance inventory itself was so low in the context that we are talking about and spread across so many projects that the focus, which was required to be put into sustainable sale was not coming in itself because the inventory level itself was so low. Now that we started building this inventory and assuming that 4 to 5 new projects will be launched this year, once again, obviously, this component will now become more and more important. And hence, a very, very clear focus has now been brought about on this inventory. And we are very hopeful and confident that we will be able to start locking healthy numbers on sustenance as well in the coming quarters.
Okay. Got it. So assuming we do a 30%, 35% presales growth in FY '25, what can be the expected contribution from the sustained sales this year? Any sense that...
So it's about saying what you count in sustenance and what you count in. Now for example, AquaCity from now onwards will do what? Is it sustenance or is it a new launch? Industry trend is more like a 20%, 25% coming from sustenance in a high-growth environment. I know this also has to do with the cycle that the industry is going through.
And if people are growing at 30%, 35% and even more in many cases, but obviously, the component of new launches is going to remain very high competitively rather than a steady-state situation where the growth rate would be for any industry more like 10% to 15%. But we are in that zone and most of the players -- branded players are growing at 20%, 30%, 35%. There's a component of fresh launches and the overall sales mix will remain high. And normally it supposed to be 20%, 25% sustenance can get for you.
Got it. And sir, one more question in the current context of the real estate industry, most of your peers have been raising funds in last 12 months. And we are on the opposite side of the spectrum, like we have had cash over the last 1 year, 2 years, and we are deploying and still throwing out cash and still our balance sheet continues to improve. So what is your view? Are we on the conservative side of acquiring projects or we are a bit slower on the acquisition part, as aggressive as other players because you want to maintain our IRR. So I just wanted your view on this?
So again, it's a very, very good question. I'd rather say we are more towards the prudent side of the investment. Our lens obviously, possibly is a little finer as compared to the average industry lens, that I just talked about. But having said that, we need to invest faster from here onwards. That's what the challenge is and that's what the task is and that's what the KRA is for the team and we are doing this at this point.
I mean in real estate to invest INR 1,000 crores is a [ 5 hours job ]. That's what we don't have actually, we have less than that. So to do it, if you were to do it, it's not something that we're talking about a very difficult ask. But if you to optimize, if you were to worried about returns on effort, profitless growth in our understanding doesn't make sense. I mean we are very conscious of the fact that while top line is extremely important, and it can't be -- the importance of top line cannot be underestimated.
And volumes and scales do throw up benefits, although to a limited extent in our industry, I buy a house not because I have bought the last house from the same developer. I buy the next house because I like the next house irrespective of previous house that I bought. So that's what the underlying assumption is in our case. And hence, we believe that it's important to earn. It's important to have healthy margins that is reflected on books of account, of course, that compounds the issue that you are saying.
But we magnificent about profitability being reasonable at least. At the same time, the risks have to be mitigated. And the money that we have is not large enough. It's a question of when, 3 deals in a INR 1,000 crore is deployed. I mean, the piece of land that we're talking about in any macro market, for example, Bengaluru outskirts where the price is around INR 10,000, INR 9,000, a INR 300 crore investment doesn't mean more than maybe INR 3,000 crores -- INR 2,500 crores of total top line. So that's where it is and we are very hopeful that -- I mean this should work out, and it's not a big amount of money in absolute sense that we need to deploy and we'll be deploying. So this should happen by the end of this year.
Right, right. Sir, just one last question, if I can squeeze in. The estimated value of our unsold inventory is close to about INR 7,000 crores as per our presentation, and you're looking to add another INR 3,000 crores to INR 4,000 crores in the second half. So we are around INR 10,000 crores by the end of March '25. And this is probably a very significant jump versus 3 years ago. So do you see FY '26, '27 being an inflection point to go from the INR 1,000 crores of presales figure to exponentially higher in FY '26 since we launched new projects in FY '26, are down INR 2,500 crores to INR 3,000 crores?
Yes, sure. I mean this INR 7,000-odd crores is the inventory, which is the inventory, inventory and also the pipeline, which is the firm pipeline in terms of everything which is contacted for, et cetera. That is that one.
I mean I think the broad answer to this question remains very similar to what we've been talking in the past. Last year when we [ reentered ] we are hopeful that we do 30%, 35% this year. And this trajectory needs to be maintained.
So what we are really doing is to ensure what happens next year, for example. Do I have enough launches? Do I have enough investments? Do I have enough pipeline which will be ready to launch after approval, et cetera, when the year starts and ends. I mean, that's how we are taking it. And as a benchmark, they are say investments, approvals, pipelines should all aligned in a way that my growth trajectory of this percentage -- 30-odd percent should be maintained. Obviously, that's what we are working on. And that's what we have delivered in the past, and that's what we will keep doing.
[Operator Instructions]. Our next question is from the line of Raj from [indiscernible] Partners.
Sir, how much is the GDV of our existing ongoing projects?
All the projects put together you are saying?
Yes. [indiscernible].
If you could repeat the question, please? I didn't get the question. You are asking GDV of the entire pipeline?
GDV of the entire ongoing projects, not the upcoming ones?
So that's INR 6,900 crore, right? INR 7,000-odd crores. Can you tell the page number or something on the -- Page 21, right?
That is given on Page 21.
So it's mentioned at Page 20. Although the sheet number is this. So yes, Page number 20.
Okay. Okay. There are actually too many figures that -- I'm sorry...
And it is something INR 6,900 crores or something that is a breakup of the existing kind of inventory and the value of GDV of that.
I understand. And what would be the time of completion of these projects?
So mostly, I mean, we are saying that 70%, 80% of our portfolio is oriental at this point of course, vertical is now becoming bigger and bigger. And as we end the year, it should be substantially higher than where it is today. Normally, it is 3 to 4 years that we complete any project that we launch.
All right. On the existing INR 7,000 crores of GDV. So it will be competed in 2 to 4 years, right?
The slide #19, it will give you project wise visibility on when an individual project is getting complete or targeted to be completed.
Yes, yes. I just saw it. All right. And we are planning to launch INR 3,000 crores to INR 4,000 crores projects in H2 FY '25, right?
No, we said INR 2,000-odd crores. If you have to assume Surat as one entire phase, although there's a possibility that Surat might be divided into 2 phases. So if it is 2 phases, then INR 1,500-odd crores, if it is one phase together launched then INR 2,000 crores. From the existing pipeline, we might be lucky that from the inventory that we created from here onwards, the new projects required -- the remaining part of the year. And if the projects, of course, that can be launched this year, that will be in addition to that. But from the existing visible inventory already contracted for or the projects already contracted for, it should be anything between INR 1,500 crores to INR 2,000 crores, depending upon how we launch it.
All right. So by FY '25 and we will have a total GDV of around INR 9,000 crores or so of the ongoing project?
Between INR 9,000 core to INR 10,000 crores, yes.
And sir, how much would be our EBITDA on this GDV?
Yes. So roughly -- around 25%, plus/minus a couple of percentage here and there with very strong quarter-to-quarter half to half, year-to-year. But generally ballpark is 23% to 25% thereabouts.
And it will take 3 to 4 years for completion, right? Rough...
Yes, any individual project, but you have a sheet which says you particularly about -- et cetera. Some of them are at a fairly mature stage, so they won't take this much. But normally, average project life cycle is 3 to 4 years and the sheet is attached, 19.
Yes, and sir, every year, do we have a specific estimate of launches?
So that list is there. That also in the -- I mean in the investor presentation, the list we launched -- we just discussed 5 launches, other 4 launches, which are expected in the remaining part. We've already launched a couple of projects this year. So I mean -- and that list is also available in the investors presentation. Anything between 6 to 7 projects at this stage of our journey is something which is an average number for the year to be launched.
Our next question is from the line of Shreyans Mehta from Equirus Securities.
So 2 questions. One, in terms of pricing, what's your take on the pricing? Do you feel there's more scope for improvement from here on, specifically to our projects or probably the best is now behind us, that's first. And second, in terms of the launches, which we are planning of INR 1,500 crores to INR 2,000-odd crores, at what stages are the approval? Are we at the advanced stage, could there be any risk in terms of approvals?
Sure. So first question about the pricing. Obviously, the numbers that we plotted in our forecast sheet for individual projects, take care of our best understanding of the pricing at this point in time. Normally, achieving those prices has not been an issue, and we'd rather better than in many or most cases, so that's what has happened even in case of AquaCity that last quarter, the numbers that we projected were lower than what we actually ended up achieving a very, very big launch. So that should continue, to that extent of delta -- positive delta will remain.
We mostly are doing long-term projects. And in long-term projects, you create value from 2 different variables. One is that as time passes, inflation, et cetera, et cetera, it still takes care of 5% to 7% of value increase on an annualized basis. On top of that, if you are creating a destination yourself, where the whole area develops and becomes better in terms of viewability, look and feel, et cetera, that value is an addition to the inflationary things that we are talking about.
Most of the projects deliver that as well for us. And that is why our growth rates and prices have been more than inflation or the industry sort of averages, et cetera. So that's what we keep doing. But just to remind that those numbers are already there in the forecast sheet, and we might better than little extent here and there. But normally speaking, they are all projected there in the sheet.
Second question is about the approval stages. Maybe 4 projects that we are talking about launching, mostly, they are at fairly advanced stages rather last legs of their launches. Surat is a little -- I mean it's a very, very large one. It has a set of more approvals to be done. At this point, we are quite okay in terms of ensuring that it is getting launched this year. But otherwise, the rest of the projects don't have these long tails also. So at this point, fairly comfortable about launching these projects, especially.
Thank you. Ladies and gentlemen, that was the last question for the day. I would now like to hand the conference over to Mr. Kamal Singer for closing comments.
Thanks a lot, everybody, for participating in this earnings call of Arvind SmartSpaces. And thanks again for your continued support on this. I hope we have been able to address most of your queries. However, if there is anything missed out on any of your questions, kindly reach out to Vikram, and he will connect with you offline and clarify and give further information as may be required. Looking forward to interacting with you all in the coming quarters, and once again, wish you all very, very Happy Deepawali, and thanks a lot once again. Thank you.
On behalf of Arvind SmartSpaces Limited, that concludes this conference. Thank you for joining us, and you may now disconnect your lines.