Godrej Propert.

Godrej Properties achieved its highest ever booking value of INR28,800 crores in Calendar Year 2024, representing a 69% year-on-year growth. This was driven by the sale of 26.38 million square feet, a 54% volume growth. The company also reported its highest ever net profit of INR1,489 crores, marking a 124% year-on-year increase. Additionally, 18 million square feet of projects were delivered across 7 cities during this period.

For the first nine months of FY25, Godrej Properties recorded a booking value of INR19,281 crores, a 48% growth year-on-year, achieving 71% of its annual guidance. Collections for 9M FY25 grew 50% to INR10,086 crores, and operating cash flow increased 99% to INR3,436 crores. In Q3 FY25, total income rose 133% to INR1,222 crores, EBITDA increased 85% to INR280 crores, and net profit grew 161% to INR163 crores.

Despite a 5% year-on-year decline in Q3 FY25 booking value to INR5,446 crores, the company maintains confidence in exceeding its annual guidance due to a strong Q4 launch pipeline. Upcoming launches include projects in Noida (Sector 44), Gurgaon (Golf Course Road, Sector 54), Bangalore, Pune (Hinjewadi), Indore, and a retail phase in Mumbai. Management noted that tactical delays for launches, such as waiting for post-Makar Sankranti period, are sometimes employed for optimal market timing and profit margins.

The company successfully raised INR6,000 crores of equity through a QIP, leading to a significant improvement in its net debt-to-equity ratio from 0.72 at the start of CY24 to 0.23. Management aims to maintain an upper cap of net debt at INR10,000 crores, providing substantial headroom for future growth and acquisitions. Business development is described as analytical and calibrated, focusing on value-accretive opportunities rather than being deployment-pressure driven.

Godrej Properties observed strong market growth in Bangalore and Mumbai, with 9-month numbers doubling and growing 100% respectively. The company is increasingly focusing on premium and luxury segments, particularly in markets like Gurgaon's Golf Course Road, which is seen as a 'margin expansion play' rather than a volume-driven one. Management expressed confidence that these aspirational markets are less susceptible to oversupply risks due to distinct customer segments.

While regulatory approvals can sometimes lead to launch delays, such as the Worli project potentially slipping from Q4 FY25 to Q1 FY26, management highlighted significant improvements in the company's capabilities for design, approvals, and timely project launches. They expressed satisfaction with the current timeframes for bringing projects to market, despite the inherent uncertainties in the approval process.

Q3 FY25 saw a quarter-on-quarter decline in collections (INR3,069 crores) and operating cash flow (INR615 crores), which was attributed to a lower number of project deliveries during the quarter. However, with a substantial pipeline of deliveries and construction milestones planned for Q4 FY25, the company anticipates a sharp growth in both collections and operating cash flow in the upcoming quarter.