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Godrej Properties Limited — Q2 FY25
Godrej Properties delivered a robust Q2 FY2025, with booking value growing 3% YoY to INR 5,198 crore and collections up 68% YoY to INR 4,005 crore.
bullish
high
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Godrej Properties delivered a robust Q2 FY2025, with booking value growing 3% YoY to INR 5,198 crore and collections up 68% YoY to INR 4,005 crore. Operating cash flow surged 126% YoY to INR 1,834 crore, driven by strong customer response to new launches like Godrej Vriksha (INR 1,500 crore) and Godrej Woodside Estate (INR 600 crore). The company achieved 51% of its annual bookings guidance in H1, with NCR, Bengaluru, and MMR markets showing strong growth. Management remains bullish on demand, citing robust pricing trends and a healthy launch pipeline for H2, including projects in Worli, Golf Course Road, and Noida. Key risks include potential overheating in land prices and regulatory approval delays, though management expressed confidence in navigating these. The company targets 20-25% IRR on new projects and expects to surpass its annual guidance.
गोदरेज प्रॉपर्टीज ने दूसरी तिमाही में शानदार प्रदर्शन किया। बुकिंग वैल्यू (ग्राहकों से मिले ऑर्डर) 3% बढ़कर ₹5,198 करोड़ हो गई, और कलेक्शन (ग्राहकों से वसूली) 68% बढ़कर ₹4,005 करोड़ पहुंच गई। ऑपरेटिंग कैश फ्लो (कंपनी के पास आई नकदी) 126% बढ़कर ₹1,834 करोड़ हो गया, जिसकी वजह गोदरेज वृक्ष (₹1,500 करोड़) और गोदरेज वुडसाइड एस्टेट (₹600 करोड़) जैसे नए प्रोजेक्ट्स की जबरदस्त मांग रही। कंपनी ने छह महीने में ही सालाना बुकिंग लक्ष्य का 51% हासिल कर लिया। दिल्ली-एनसीआर, बेंगलुरु और मुंबई में अच्छी बिक्री हुई। प्रबंधन को आगे भी मांग बनी रहने की उम्मीद है, खासकर वर्ली, गोल्फ कोर्स रोड और नोएडा में नए प्रोजेक्ट्स से। जोखिम में जमीन के दाम बढ़ना और मंजूरी में देरी शामिल है, लेकिन कंपनी इसे संभालने में सक्षम है। नए प्रोजेक्ट्स पर 20-25% रिटर्न का लक्ष्य है।
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Potential overheating in land prices
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Read Transcript →Quarter Snapshot
Booking Value (Q2 FY25)
INR 5,198 crore
+3% YoY
Q2 booking value grew 3% YoY to INR 5,198 crore, driven by strong new launches.
Collections (Q2 FY25)
INR 4,005 crore
+68% YoY
Collections grew 68% YoY to INR 4,005 crore, the highest ever Q2 collections.
Operating Cash Flow (Q2 FY25)
INR 1,834 crore
+126% YoY
Operating cash flow surged 126% YoY to INR 1,834 crore, reflecting strong cash generation.
Business Development (YTD FY25)
INR 17,500 crore
87% of annual guidance achieved
Added 10 projects with estimated booking value potential of INR 17,500 crore, achieving 87% of annual guidance.
What Changed vs Last Quarter
NEW
Annual bookings guidance likely to be surpassed
Management indicated they are on track to exceed the annual bookings guidance, given strong H1 performance and a robust H2 launch pipeline.
NEW
Target EBITDA margin of 25-30%
Management reiterated their target of achieving 25-30% EBITDA margins on new projects, with underwriting based on current prices without assuming price inflation.
NEW
Target net profit margin of ~15% through cycle
Management guided for a net profit margin of around 15% through the cycle, though it may be higher in the near term due to margin expansion.
NEW
Planned launches for H2 FY25 include Worli, Golf Course Road, Noida Sector 44
Management outlined a strong launch pipeline for the second half, including projects in Worli (Q4), Golf Course Road in Gurgaon, and Sector 44 in Noida.
DROPPED
FY25 booking value guidance of INR 27,000 crore
Management is confident of meeting or exceeding the annual booking guidance of INR 27,000 crore, supported by a strong Q1 start and robust launch pipeline.
DROPPED
FY25 collections guidance of INR 15,000 crore
Collections are expected to ramp up in H2, with average quarterly collections of INR 3,750 crore needed to meet the target. Q1 collections were INR 3,012 crore.
DROPPED
Q2 FY25 business development to be strong
Management expects Q2 to be another good quarter for business development additions, with a strong pipeline across top four markets.
DROPPED
Ashok Vihar launch expected by Q4 FY25
The Ashok Vihar project in NCR is delayed due to tree removal approvals, but management hopes to launch by Q4 FY25 if possible.
NEW RISK
Potential overheating in land prices
Land prices have risen sharply, and if property prices do not keep pace, project margins could compress. Management mitigates this by underwriting at current prices and targeting 20-25% IRR.
NEW RISK
Regulatory approval delays
Delays in obtaining approvals could push back launches and impact sales guidance. Management noted that approvals are generally on track but remain a constraint.
NEW RISK
Construction cost escalation
Construction outflows are expected to increase in H2 as projects progress, which could pressure cash flows if not managed efficiently.
NEW RISK
Dependence on NCR and Bengaluru markets
A significant portion of bookings comes from NCR and Bengaluru; any slowdown in these markets could impact overall performance.
RISK GONE
Approval delays in Mumbai and Pune due to elections
Upcoming elections in Maharashtra could delay project approvals in Mumbai and Pune, impacting launch timelines.
RISK GONE
Ashok Vihar launch delay
The Ashok Vihar project in NCR is delayed due to tree removal court cases, with no clear timeline. Management now expects launch by Q4 FY25 at best.
RISK GONE
Execution risk from rapid scale-up
The sharp increase in booking volume (8.99 msf in Q1) raises questions about delivery pace. Management has invested in execution capabilities but risks remain.
RISK GONE
Regulatory issues on Godrej Reserve and Chandigarh project
Godrej Reserve faces potential approval issues (though management says no notice received), and a 10-year-old Chandigarh project received a notice regarding OC revocation.
🤫 Topics management stopped discussing
Mentioned in Q2 FY24, Q3 FY24
Company remains on track to achieve ₹10,000 crore in cash collections for FY24, with strong collections in Q3.
Mentioned in Q1 FY24, Q2 FY24
Year-to-date business development stands at INR 7,175 crore, in line with the full-year guidance of INR 15,000 crore.
Mentioned in Q1 FY24, Q3 FY24
Rapid scaling of operations (50%+ sales growth) may strain project execution capabilities, though management cites decentralized model as mitigation.
Fast read
Guidance and risk preview
Management indicated they are on track to exceed the annual bookings guidance, given strong H1 performance and a robust H2 launch pipeline.
Land prices have risen sharply, and if property prices do not keep pace, project margins could compress.
View Risks →