Ashiana Housing Q1 FY2012 & 13 Results Conference Call

August 01, 2012

MANAGEMENT: MR. VISHAL GUPTA MD. ASHIANA HOUSING MR. VARUN GUPTA WHOLETIME DIRECTOR, ASHIANA HOUSING
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Moderator

Ladies and gentlemen, good day and welcome to the Ashiana Housing Q1FY2012 & 13 results conference call. As a reminder for the duration of the conference, all participant lines are in the listen-only mode and there will be an opportunity for you to ask questions at the end of todays presentation. Should you need any assistance during this conference call, please signal an operator by pressing * and then 0 on your touchtone phone. Please note that this conference is being recorded. At this time, I would like to hand the conference over to Mr. Gaurav Sood of Kanav Capital. Thank you and over to you sir.

Gaurav Sood

Good evening everyone, this is Gaurav from Kanav Capital. It is my pleasure to welcome you all to the Ashiana Housing First Quarter FY13 Investors Conference Call. This call is being the held to discuss the performance of Ashiana Housing for this quarter and to answer any questions that you may have. I hope that all of you have had a chance to go through the quarterly results and investor presentation that went out with the invite. Today on the call from Ashiana Housing, we have Mr. Vishal Gupta, Managing Director and Mr. Varun Gupta, Wholetime director. I would now like to hand over to Mr. Varun Gupta of Ashiana Housing for his opening remarks.

Varun Gupta

Good evening friends. We extend a warm welcome to you all on the call to discuss the first quarter performance of Ashiana Housing. First quarter performance was weak as anticipated. On the operational front, the company booked an area of the 2.99 lakh sq ft and constructed an equivalent area of 2.78 lakhs sq ft this quarter. The numbers were weak primarily due to nonavailability of saleable and buildable inventory in Bhiwadi. Also we witnessed some effects of market slowdown in numbers. However, we saw a rise in sales price across all the locations. The average realization for the first quarter has gone up from Rs. 2300 per sq ft to Rs. 2474 per sq ft. The company has acquired an already approved land parcel in Bhiwadi which has been launched in Quarter 2. As such, the second quarter is expected to perform better than the first quarter. Also the government has opened the 90A filing process for conversion and the company has applied for the conversion of Ashiana Town Village Thada Project in Bhiwadi. On financials, Ashiana reported sales and other income of Rs. 33.24 crores and a PAT of Rs. 8.90 crores exhibiting the strong net profit margin of 26.78%. The numbers in absolute terms are lower both on quarter-on-quarter and year-on-year basis. As discussed in earlier forums, these figures will decrease in the next two years because of changes in accounting policy. The figure indicative of financial performance is pre-tax operating cash flows from ongoing projects, also disclosed in the results this time. The first quarter pre-tax operating cash flows of the company remained buoyant at Rs. 27.75 crores for the first quarter. This tells us the pretax operating cash flows generated in any period excluding the cash paid for land acquisitions. It also lets us know what amount is fairly available for future expansions. Again, the point to be noted is that this is not a statutory statement but a modified cancellation as per the company. The company will report this number every quarter going forward and a detailed statement annually. The annual report for 2011-12 contains the detailed statement of financial year 12 for reference.

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On other highlights; in both Aangan in Bhiwadi and Rangoli Gardens Jaipur, the deliveries have been happening on a faster rate than expected. Rangoli Gardens, the first phase was handed over four months ahead of schedule and in Aangan phase 4-5 were delivered six months ahead of schedule. This gives us immense confidence on the systems and continuous improvement that are regular thrust areas internally in the company as it continues to grow. On this note I would like to conclude my remarks. We will now be happy to discuss any questions or suggestions that you may have. Moderator We will now begin the question and answer session. We have the first question from the line of Pratik from CRISIL. Please go ahead. Pratik I just wanted to check, what is the status of approvals from the land parcels in Rajasthan that is 85% of your land bank of 148 acres? Varun Gupta On the approvals in Rajasthan, in the land bank, one is the Treehouse Residential Project in Bhiwadi which is 1 acre and that was an already approved project where we have filed for building plans and we are expecting approvals of those building plans within this month. The other projects being Gulmohar Gardens and Ashiana Town in Thada Bhiwadi, both were agricultural. The applications for 90A which is the conversion to NA purposes have been filed in both the projects and the process is going on, and we expect approvals within a six-month timeframe depending on how they move. The process is also new, so we are also trying to gauge a sense of how things are going on; it's a new process for the entire state. On the Milakpur land in Bhiwadi, we still have not filed for approvals in 90A because that land has a fewer other complications. Pratik I am just trying to understand the revenue bookings in the Quarter 1, which projects have contributed to the revenues? Varun Gupta Direct contribution to revenues would have come from Utsav Lavasa Phase 1, Ashiana Brahmananda Phase 1, Ashiana Amarbagh would have also contributed to some revenues. And Rangoli Gardens Phase 1 revenue was recognized on possession basis completely this quarter, so that has contributed to share and profit of partnership. And Utsav, Jaipur also has gone to share and profit of partnership, so they have also been contributed. And there was also a slight revenue recognition from a sale of land in Jodhpur that we had sold earlier so that is the other part. Pratik I just wanted to understand while the realizations have increased 13% Y-on-Y to 2474 per sq ft, but the margins are actually declined by 490 basis points, so why is this seen? Varun Gupta First of all, on the margin front on this basis to calculate on a quarter-on-quarter basis, actually is a very difficult thing because the square footage that has been booked in this quarter probably have had no role to play in the revenues that has been recognized in this quarter. So 2474 really does not have relevance for this quarter, it has relevance for the next two years

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because the delivery cycle is about two years from today and within period it will get recognized. Pratik Varun Gupta So any new geography that the company is targeting entering into? Halol and Calcutta has been signed up and we are looking at how we can start quickly over there. Those are two geographies, other than that, other regions in the NCR are on the radar. I was personally visiting some lands. We are evaluating and understanding, but nothing has been signed off as of in other parts of NCR that we can report for, but we are looking at it. Pratik Varun Gupta For Halol and Calcutta land parcels, how much time will it take for the approvals to come in? Expectations again have been six months on Halol in April, but another six months maybe that is the thought there, right now. We don't have any concrete information to say when things will come in, but the general approvals are 3 to 6 months processes across the states, but you can get stuck some time or the other with a couple of processes. So approval is a matter that is hardly to predict. Pratik Moderator Okay sir, thats from my side. Thank you and all the best. Our next question is from the line of Arpit Ranka from Tactica Capital management, please go ahead. Arpit Ranka Just a question on the guidance that you have given of about 16 lakh sq ft for the year 2013, what is breakup there if you can highlight that? Varun Gupta We will give you a rough idea maybe next quarter, but some of this also we don't want to give some detailed breakup because we have situations where one project catches up and the other project doesn't do as well, it is very difficult for us to monitor on a project to project level because the market is always changing. But the largest contribution is expected from Jaipur as about 50% to 60% square footage I would say would come from Jaipur and then the other projects contributing towards that and some launches have been built into the figures as well. Arpit Ranka If I were to reframe my question that's what I wanted to understand that. Out of 16 lakhs, what is the contribution of the projects which are already put up versus projects where approval is awaited, but if you could even give that breakup, I mean itd sort help us to see. Varun Gupta I would say 80% to 85% of the figures in 16 lakh sq ft would be projects that are continuing right now and the remaining would be expected to be launched. Arpit Ranka Fair enough. Another figure which you have given in the presentation is a referral figure which you have been giving for the last few quarters, if you could also give, for example this

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quarter we had 152 referral booking, what is the total booking just to get a sense at what percentage the business is coming from reference? Varun Gupta We can give total number of booking as well and disclose it about 60% of the booking is coming through referrals, because a rough way to calculate is if you are looking at 2,97,000 sq ft of our booking, you are talking about roughly a flat size that we have at about 1300 sq ft, which is average flat size. So you are talking about 230 odd units. We can send you exact figures, but generally we should expect about 50% of our business to come from referrals. Arpit Ranka A rough estimate will do just to get sense as to how this number is moving over time. And finally you have been emphasizing a lot on this new metric which you have also given this quarter, pre-tax operating cash flow. To be honest, I am a little lost as to how do you exactly calculate that because if we just try to combine things together this must be booked at about 3 lakhs sq ft in constructing 2.8 but that doesn't match with the 27 crores number. So why there is sort of slight disconnect, so if you just could highlight update on whats the right way to think about this metric would be helpful? Varun Gupta Let me put it this way that it is a summation of all the projects that are throwing us cash. So one way to think about it if you wanted to think about how one project might perform cash flows over a period of time and the cash flows will not be directly mapped, consistently according to area booked and area constructed to every quarter. This is just managing this cash flow is actually an important part of this business. It's not a simple metric where you put an Excel sheet and this is how the cash flows will actually perform. Making sure the cash flows actually behave in a manner where you are able to drive operational performance is one of the managerial thoughts and capabilities that businesses in this industry should have, so that is one perspective on it. But that said, the basic view is if you look at the pre-tax operating cash flow is generated from ongoing projects. Lets say we just start one project and the net cash flow that is generated from that project excluding the payment of taxes and CapEx, is this figure, so you take your 10 projects together, you club all of that figures and that is the number that we will get. Arpit Ranka Okay, so if I just sort of go back to the financial year 2012 wherein you showed pre-tax operating profit of 109 crores, so as a manager when you are looking at that figure, so even though the amount of cash that you have got in that particular year, some part of where the cash returned to you which you have further spent for acquiring land in the initial part of the project. So if you were to think about in terms of your net profitability that how much money you put up and how much on top of it you were able to sort of get out of the project, what will be the right way to think about because if I'm not mistaken this 109 crores, this 27 crores though an important metric in terms of managing our projects better and to gauge the health of the projects, so how do you convert this number into a figure of profitability that you want to look at probably over time?

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Varun Gupta It is not a figure of profitability that we will be able to convert into and get into it in my personal opinion. One way to look at it is to look the average realization on a square footage basis that we are building and booking and the margin we can make on a per square foot figure, so that will get you a sense of profitability and this pre-tax operating cash flows will give you a sense of cash flows. So if you are selling square footage, building square footage, and you have a sense of what the margin per square footage is and the project is flowing cash then the project is generally healthy. So one of the reasons to start moving to possession accounting is as soon as the transition is completely done, the figures will give a better sense of what my first square foot margin of the company is as a whole, because we will start reporting, this square footage was delivered, this was the profitability, you are getting a sense of per square foot margin. That is the better way to look at it. And you want to see how that margin will move or some mix is happening then you will need to do detailed project by project analysis. Arpit Ranka Varun Gupta Fair enough. I just wanted to get more educated about this metric, which you have targeted. The idea of the metric is one of the bigger problems in the real estate company is we get into cash flows jams, it is a situation of whether the company will get into hitch of not being able to finance its projects. The biggest thing that happened is people start getting concerned with half-built projects. So if you are generating cash flows, you are selling and you are building, you are delivering a margin, gives you a whole sense that the company is doing well. Arpit Ranka If I have understood what you have sort of explained the transaction like disposing 10 acres in Jodhpur which you concluded in this quarter, the cash flow arriving out of the transaction would also be pooled into this figure, right? Varun Gupta Arpit Ranka Yes, it would be pooled into this and that discounts the figure a little bit correct. What will be the quantum of money that we got from this divestment, if you don't mind sharing that? Varun Gupta The full divestment is for 7.5 crores, out of which 5.5 crores we received in the prior quarter, 2 crores we received in this quarter. Arpit Ranka Moderator Baidik Sarkar Okay thanks a lot sir. The next question is from the line of Baidik Sarkar from Unifi Capital, please go ahead. Firstly, if you could just point out the exact difference in revenue recognition norms between the previous accounting standard that was regulated by ICAI and now, so it would be much appreciated because that is the exact point in which the difference arises right now?

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Varun Gupta The change in accounting policy for us is not the change in the norm that ICAI has done. ICAI has now put in a fresh guidance on how to do the percentage of completion accounting. We have just moved away from the percentage of completion accounting totally to contract completion of possession accounting whichever word you want to use where you would recognize the revenues at the time of delivery of the flat to the customer. So what happens is if you have a two-year cycle of operations instead of revenues getting recognized every quarter over eight quarters, it gets locked into the last quarter. So it delays the revenue. But what it benefits as it gives a better sense of the liabilities of the company that the money has been received from customer against which deliveries have not been made. It also puts incentives to deliver faster to have revenue recognition coming in which is a very important aspect of the business. And third, we are in the business of selling homes and building homes and delivering homes to our customers. A basic situation over there is the customers have a binary situation, a customer thinks either he gets a flat or he doesn't get a flat. My customer is not there to take up half built project and say 50% construction is done, they will take it. The liability only gets set up at the end of delivery, so that is the basic reason for it and the difference is that the revenues get recognized at the end of the year. Baidik Sarkar The intent anyway is extremely noble, there are no two ways about it. But I am just curious on the bookkeeping front as to what profit you do. There are no questions on your governance front and there is no doubt in credence whatsoever. But then on a steady-state basis, given that you yourself have mentioned that this has tendency to get lumpy revenues and so thats the way you are, in fact you doesn't really know as to when the next cycle of cash conversion is coming. So I'm trying to understand management intent behind it. Of course the fact that it will give you incentive to sell faster. I am assuming you have that incentive even earlier given your track record. So it's sort of a qualitative question if I may ask. Varun Gupta On the cash front, cash conversion cannot be hampered because of lenient accounting. They can be marginally impacted. So the accounting policy is actually better than the cash flows basis because it delays tax. If you recognize profits later you pay taxes later. So on the cash conversion cycle, you can say it may be delayed taxation though for our books we kept separate books for taxation from a perspective that we were paying on possession because that is what our understanding of income tax act was. But that said, what prompted us to change it may be a very arrogant way of looking at it , I said the way maybe investors should look at the balance sheet is the way I want to look at it. And when I wanted to look at the balance sheet from a management perspective was I did not like all this percentage of completion basis because it used to distort the figure which was critical. I could not get a good sense of collections, I could not get a good sense of work done, could not get better sense of liabilities, could not map our liabilities to construction, are we taking money from customers and deploying it into construction or not. It was creating all sorts of distortion when you looked at the balance sheet internally. So we were looking at it without it, so maybe an arrogant perspective but we believe that is the right way to look at it, so that is one. Second is just the risk really gets transferred at the time of possession according to us in certain, like Lavasa was a case which happened. One should ask in Lavasa, had we not received the order to restart

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construction, what would have been my liabilities then? The amount received from the customers less the amount of recognizing revenues or the entire amount received from the customer. It was the entire amount received from the customers to be given back to the customers then that's the figure that should be reflected in current liabilities and not the lower amount then stated, as simple as that. Baidik Sarkar Fine, point noted. Lastly, if I may get a sense of what your unsold inventories either geography wise or project wise might become a bit too laborious? Probably I could take it offline, but geography wise your sense on unsold inventories? Varun Gupta Baidik Sarkar Built unsold inventory or unsold inventory like launched, but not sold? Launched but not sold. I'm not talking, keeping a perspective your revenue recognition norm, not keeping that in perspective. Varun Gupta Unsold inventory, to us the sale means when an agreement to sale is that is sold from that perspective, from market risk perspective, right. In that situation, there is a table that is provided in the quarterly report where you give project by project detail where this is the total saleable area, this is the area launched and this is the area booked till date. Baidik Sarkar So basically the unsold inventory in that reflect all places even the first agreement the intent to sell has not been assigned? Varun Gupta Area booked is a figure where we capture, we have gotten the cheque of the customers and bank and then we say area is being booked, the moment we have allotted them unit and said area has been booked. Baidik Sarkar Moderator Priyank Sanghvi Thank you gentlemen. Thank you very much. All the best. The next question is from the line of Priyank Sanghvi from Practica Capital, please go ahead. I just have one question. Can you help us reconcile the fact that there was a general slowdown in bookings this quarter and the increase in realizations this quarter? Varun Gupta If I can rephrase the question, are you thinking that because the increase in sales prices happened that's why the decrease in bookings, is that a concern? Or is that a genuine thought that there is a market slowdown in prices? Priyank Sanghvi No, it is just like how are these two things slowing like if there is a general decrease in area booked then the realization should Varun Gupta Shouldn't be raising prices, right, as the market is slowing down and we shouldnt increase prices. One is the slowdown was mostly felt in June, April-May we did not see slowdown, so we up the prices. And now July figures are again good. So the question that we are asking

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right now, is the market slowing down, because of un-affordability, market slowing down because June is just a bad month because of the weather and because of people being on vacations and doing all that. Is the market slowing down because people are jittery about their jobs? What is the concern if market is actually slowing down? So we don't know if there is an actual slowdown. We felt some things coming in June, but then July has again become better. So it's continuously tracking whether we have issues of market slowing down. On the first front, prices have being raised because we don't think affordability is our question where we raise prices. So our basic idea is we believe our product is of great value and if affordabilitys are there then the prices should get absorbed. The fact got vetted in July when the pricing did get absorb, there was some situation also for 15 days, prices of certain projects are little bit more strong than they actually do otherwise. Amarbagh being the case in point in Jodhpur where we raised prices by Rs. 300 per square foot in one go, which is like 15%-16%, and so June we did not have bookings, but then everything got absorbed in July. Priyank Sanghvi Varun Gupta That was at what place? In Jodhpur. So that is the new. Slowdowns really, we don't see any information right now, affordabilitys are good. The concern is, will people get jittery about their jobs. If people start getting jittery about their jobs then slowdown will start happening a little bit more. Priyank Sanghvi Moderator Sachin Kasera Thank you so much and good luck. The next question is from the line of Sachin Kasera from Lucky Securities, please go ahead. On the cash flow thing, this figure that you have reported you mentioned that there is some amount of cash flow from sale of land approximately you mentioned 2 crores, similarly is there any cash outflow towards any payment or purchase of land? Varun Gupta Sachin Kasera Varun Gupta First of all, the figure that is from sale of land is about 5.5 crores. So you said 2 crores were last quarter, this quarter is 5 crores? This quarter is 5.5 crores. Secondly, on purchase of land is broken down into two parts here. There is one purchase of land which gets recognized as an expense in our books is purchase of land, but we don't treat it as, a cash outflow for that figure is taken care of here, are those purchases of land where we have an ongoing project. In Ashiana Brahmananda, we did purchase some land because in the financials when you see purchases there is the figure that is of that. That is being taken care of here because the project has been launched and the payment of land is through a revenue share mechanism. But there was other cash outflow for purchases of lands specifically for Treehouse residences in Bhiwadi, the 1 acre project that we have taken up and that is not accounted for here that is separate. Sachin Kasera What is the logic behind bifurcating these two?

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Varun Gupta The logic behind bifurcating these two is the first figure is to give a gauge of how are my projects performing, the ones which are running. One of the key important things is that we have this bouquet of projects running and they are providing cash flows. So if I put the land purchase figure there it will get distorted again. Second thing with land purchase figure is our land purchase figures are generally very lumpy. And they are lumpy, so if you get further lumpiness in the figure then you will not be able to make sense. The land purchase figures are reported annually in the detailed statement. The annual statement you will be able to get this figure separately, but that is the logic basically behind. Sachin Kasera Basically any cash outflow towards land for the policies that are existing would be part of this and any land for the project which is not being launched as yet would not be part of it? Varun Gupta Yes correct. Annual report is the detailed statement, actually lists out whatever things that we have done and you can read through that will give you a very good sense. Sachin Kasera Secondly, you mentioned that this is not a statutory statement and it is just initial information provided from the company. So for us to get a better understanding I would think it would be really helpful if you could provide us the comparative figure at least for the preceding quarter and for the corresponding quarter. Varun Gupta Our idea was we have reported this quarter, next quarter, you will have a comparative with the first quarter and third quarter, you will have a comparative with the second quarter and the fourth quarter again, comparatives we will start bringing up. We will see if we can provide previous year comparatives for the quarter. I cannot promise that if we can provide that. Unless and until we are certain the information that we provide to you is correct we will not provide. Sachin Kasera But I see no reason what would probably be issue in terms of not providing it because as you mentioned this is the way you internally mentioned, so I believe the data and all would definitely be there with the company. Varun Gupta Sachin Kasera We will see if we can provide. Secondly, on the slowdown, did we experience this across properties or was it more visible in the larger properties like Rangoli Jaipur? Varun Gupta I don't have exact figures. There were actually mixed views month on month. One month was different; another month was different, if that is to say project wise. Comprehensively, the difficulty came mostly in June. Rangoli Gardens is on its target for that quarter. We had about 120 bookings in Rangoli Gardens next quarter, somewhere around plus or minus five. Sachin Kasera How does that compare vis--vis March because Rangoli is one of the few sites where you have good amount of saleable inventories, right?

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Varun Gupta Yes Rangoli Gardens is doing on track as per terms of the targeted footage and July has done tremendously well specifically there. That project for now seems to have very good absorption. Sachin Kasera Varun Gupta Sachin Kasera And you mentioned that realization was higher by Rs. 300 per sq ft? In Jodhpur, in Amarbagh. But when you say this is higher, you are referring to the realization for the area booked, and not the area recognized in the P&L? Varun Gupta No, the Rs. 300 per sq ft was a onetime raise that happened in June so that probably Rs. 300 a sq ft in Jodhpur is probably not even translated into area book because April-May booking happened and then June booking it did not happen, so some of that will translate going forward. We don't raise prices in April for the quarter and that is not the situation where everything that is happening, in some places prices were raised in April, some places prices were raised in May, some in June and it is a continuous process. Sachin Kasera For our understanding, could you just help us what was the average realization on the area booked for the June quarter vis--vis the March quarter? Varun Gupta 2474 on an average basis as compared to 2302 in March quarter. These things are again disclosed in the presentation. But we will see if we can dissect the information a little bit more for. Sachin Kasera Varun Gupta Moderator Yeah that will be really helpful. Yeah we will see what we can do. The next question is from the line of Deepak Agarwal from Impetus Advisors, please go ahead. Deepak Agarwal You have mentioned in the release that the land conversion cycle had come to a standstill in Rajasthan, but there are others who are getting the approval, for example, recently also there was a news that Avalon Group has got an approval for a large project in Bhiwadi itself, so how are others getting the standstill? Varun Gupta Deepak Agarwal Varun Gupta The project that Avalon has got an approval for in Bhiwadi was partly already approved. But what are the hurdles and how long do you think it will take time? I would say the new process in Rajasthan should take 3 to 6 months to get approvals in place, to a stage where we can start submitting building plans. The NA approvals should come in 3 to 6 months time.

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Deepak Agarwal Varun Gupta But what are the hurdles? The conversion process was at a standstill for agricultural land to any land. So they put the process out. In beginning of July, we could apply, submit our applications, we have submitted applications and they are now processing the application. The thing is it's a completely new law with completely new rules. So people don't know what to do internally as well and they are learning the process. Deepak Agarwal Varun Gupta Is there a change in the rule in Rajasthan for land conversion? Yes. It was on a standstill for 12 months by a court order. The earlier section was 90B of the Land Revenue Act and the new section is the Section 90A of the Land Revenue Act. Deepak Agarwal Moderator Saurabh Shah Okay fine, thats it from my side. The next question is from the line of Saurabh Shah from HU Consultancy, please go ahead. The first question was about the pre-operating cash flows. I just joined the call where I just need the initial part. Do we have the comparable numbers for Q1FY12 and Q4FY12? Varun Gupta Saurabh, we don't have that figure right now. I will see if we can put a disclosure to that extent soon, but I can't promise. So the idea was basically we provided two years of comparatives earlier and now quarter-on-quarter as we provide figures, you start getting comparables. Saurabh Shah Thats okay, but in the annual statement you have shown 33 crores inflow from partnership, some investment in operating partnership firms, so what is that? Varun Gupta That is the cash coming back from the partnership firm. The partnership firms are all project level SPVs, so we are getting cash back out of those partnerships. Saurabh Shah So if you invest in land in a partnership, so you will show outflow before calculating this figure? Varun Gupta Saurabh Shah Varun Gupta Yes. And other land which you acquire in the company you will show it below.. In annual statement the calculation details are given also what are the changes that are made. I would request you to please read that that is very specific on these discussions of how lands payments are being calculated. Saurabh Shah One more thing was what you said both the things, the area constructed and area booked has gone down quarter-on-quarter at least. So I just wanted to understand that, and the reason you mentioned in the presentation is because of non-available saleable inventory and non-

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availability of buildable inventory, so is it something the company is not doing, we are not proactive? Varun Gupta One, we can say that. Second, we haven't had any buildable inventory in Bhiwadi. The land is under approval stages. So hopefully, we will install Bhiwadi for this time being. Pipeline is something that is an integral part of this company and we need to keep building on it. You will get a better sense of whether we are not doing enough about it in the next couple of years overall, I think this was more of a one-off case in the Bhiwadi because of certain changes in regulations that we didnt anticipate. Saurabh Shah But that can affect bookings, but construction I thought, because of delayed monsoons the construction would have improved actually? Varun Gupta No, April to June quarter is one of the worst quarters in terms of construction otherwise also, but if you don't have approvals you cannot build, right. You cannot start building that is one case. And other thing, the April to June is a bad quarter anyways because of extreme heat where efficiency goes down significantly because of heat. And also things that used to make it go down earlier which was not happened as much because of monsoons otherwise people used to go back to the villages to do farming and not doing the construction, so the labor used to be a challenge, that wasn't there but the heat is still definitely a challenge. Moderator Ladies and gentlemen, due to time constraint that was the last question. I will now hand over the conference over to Mr. Varun Gupta-Director of Ashiana Housing. Thank you and over to you sir. Varun Gupta I would like to thank all of you for being on this call and being so patient with all the questions. I hope we have been able to answer your questions satisfactorily. If you have any further questions or would like to know more about the company we would be happy to assist. Results, quarterly update and a lot of material we have talked about is posted on our website and you can also mail your queries for any further clarifications. Thank you once again for taking your time to join us on this call. Moderator Thank you Mr. Gupta. On behalf of Kanav Capital that concludes conference. Thank you for joining us.

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