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Seeking to expand business amid strong housing demand, realty firm, Godrej Properties, has acquired 15 land parcels so far this fiscal with sales potential of ₹27,500 crore and looks to add more land by March to construct new projects.
Godrej Properties Executive Chairman Pirojsha Godrej said the company's new business development -- which means the acquisition of land parcels through outright purchases and joint ventures with landowners to build new projects -- will cross at least ₹30,000 crore in FY23, double than the annual guidance of ₹15,000 crore.
"We are very happy with the quarter gone by. Operationally, it has been a very strong quarter. It ended up being an extraordinary quarter for business development. As opposed to the full-year annual guidance of ₹15,000 crore, just within the quarter we did ₹23,000 crore. We are very happy about the outcome," he highlighted.
The company has added 15 new projects so far this fiscal with a total estimated saleable area of 23.42 million square feet and total estimated booking value of ₹27,500 crore.
Also read:Godrej Properties buys 60-acre land parcel in Chennai for plotted developments
In Q3 alone, Godrej Properties added 9 new projects in Delhi-NCR, Mumbai Metropolitan Region (MMR), and Pune with an expected sales booking of ₹23,050 crore.
Asked whether the company would revise the business development guidance for FY23, Godrej said, "It's hard to project. Visibility is good for the current quarter. We are very certain that we will cross two times of our guidance. How much more, that we will have to see." Sitting on a huge cash flow, the company has acquired more land parcels through outright purchases in this fiscal.
However, Godrej said the company is in talks with many landowners for join developments as well.
He noted that housing demand continues to be strong even during this quarter despite a rise in interest rates on home loans and appreciation in property prices.
Also read:Godrej Properties confident of exceeding ₹10,000-cr sales in FY23
On the operational front, he said the company's sales bookings rose 77 per cent year-on-year to ₹8,181 crore in the April-December period as against ₹4,613 crore in the year-ago period.
Sales booking during Q3 jumped over two-fold to ₹3,252 crore from ₹1,541 crore in the year-ago period.
The sales bookings in Q3 were the highest for the company for any quarter ever, Godrej highlighted.
"We have already done nearly ₹8,200 crore of sales bookings in the first three quarters of FY23 and hopefully we will definitely cross ₹10,000 crore annual guidance," Godrej said.
Nevertheless, he said, Godrej Properties will not revise upwards its annual guidance for sales bookings.
Also read:No impact yet of increasing mortgage rates: Vivek Anand, DLF CFO
According to an investors' presentation, out of the total sales bookings in April-December of this fiscal, the residential segment contributed ₹8,124 crore, while commercial properties were just ₹57 crore.
Geographically, Godrej Properties sold properties worth ₹2,675 crore in Delhi-NCR, ₹2,053 crore in the Mumbai Metropolitan Region (MMR), ₹1,452 crore in Bengaluru, and ₹1,376 crore in Pune. These are the four major markets for the company.
Godrej Properties, which is the real estate arm of the business conglomerate Godrej Group, is one of the leading real estate developers in the country.
On financial metrics, it reported a 51 per cent increase in consolidated net profit at ₹58.74 crore for Q3. The net profit stood at ₹39.02 crore in the year-ago period.
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The total income declined to ₹404.58 crore in the third quarter of this fiscal from ₹466.91 crore in the corresponding period of the previous year.
The company posted a net profit of ₹159.25 crore during the April-December period of this fiscal as against ₹91.90 crore in the year-ago period.
Its total income rose to ₹1,200.18 crore in the first nine months of this fiscal from ₹1,063.12 crore a year ago.
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