With several launches expected in the current quarter, real estate developer Godrej Properties is confident of crossing its sales target of ₹10,000 crore this fiscal.
Speaking to analysts post Q3 results, Executive Chairman Pirojsha Godrej said the company was on track to complete 10 million sq ft of development by the end of March this year, while it had a hefty launch pipeline of 12-13 million sq ft.
Godrej said for January to June, there would be healthy business development by the company in terms of adding new projects.
Net up 50%
The company reported a consolidated net profit of 58.7 crore in the December quarter, up 50.5 per cent y-o-y though revenue from operations fell 29.6 per cent to ₹196 crore on lower revenue recognition. The boost in profit was helped by a fall in total expenditure by a fifth from a year ago and a lower share of loss from joint ventures and associates.
In Q3, the company sold housing units worth ₹3,252 crore, more than doubling y-o-y while collections at ₹1,684 crore were up 18 per cent on the year. For the nine months to December, the company has booked sales of ₹8,181 crore, up 77 per cent y-o-y.
Bookings were helped by new launches in Ahmedabad and Bengaluru in the quarter. The National Capital Region and Bengaluru topped the sales charts, followed by Pune and Bengaluru. Godrej said the company was looking to strengthen its presence in Hyderabad and Kolkata too, though the main focus would be on the cities where it has major presence.
In the quarter, the company launched nine new residential projects with an estimated booking value of ₹23,050 crore. In the current month, it added two new projects with a potential sales value of ₹1,000 crore.
So far this year, the company has added projects with a potential sales value of ₹27,500 crore, outstripping its target of ₹15,000 crore. He added that some of the launches that were targeted for FY23 may slip into FY24 due to delay in regulatory approvals.
With respect to residential prices, Godrej said there was an uptick in pricing seen across all markets and this momentum is expected to continue. Prices in the Mumbai market were rising 1-2 per cent every quarter and in tandem, there would be price increases every quarter, he said.
He explained that developers were constrained to raise prices due to macroeconomic factors and not due to individual whims.
To questions about the recent focus by the company on plotted developments, Godrej said plotted developments were mostly in tier-2 cities. It was also in discussions for a large number of joint development projects.
On Thursday, shares of Godrej Properties ended flat at ₹1,156 on the NSE.