Godrej Properties acquires 10 land parcels in FY24 to build projects worth Rs 21k Cr
Godrej Properties reported its highest-ever quarterly profit as earnings jumped 14 per cent annually to Rs 471.26 crore in the March quarter
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In a bid to expand the business, Godrej Properties acquired 10 land parcels, of which eight were outright, last financial year to build housing projects worth over Rs 21,000 crore and has set a target for this fiscal to buy more parcels that can generate sales bookings of Rs 20,000 crore.
In its investors’ presentation, Godrej Properties informed that it "added 10 new projects with an expected future booking value of Rs 21,225 crore". For the last 2023-24 fiscal, Godrej Properties had given a guidance of Rs 15,000 crore for new business development, which means acquiring land parcels through an outright basis and joint development with land owners. Godrej Properties has given an annual guidance of Rs 20,000 crore for this fiscal year under the new business development.
In investors call Godrej Properties Executive Chairperson Pirojsha Godrej said there is no upper cap for business development and the company would acquire more land if there are right opportunities. "If we see great opportunities, Rs 20,000 crore is not going to form any kind of upper cap certainly. And we have seen in past years, for example, in FY23, where I think we guided around Rs 15,000 crore and ended up doing 35,000 crore or so. "So, certainly I would not look at this Rs 20,000 crore as an upper cap and we would hope to if we see the right opportunities, go well past this," he said.
The company, which is part of Godrej Industries group, is one of the leading real estate developers in the country. It has a major presence in four markets -- Mumbai Metropolitan Region (MMR), Delhi-NCR (National Capital Region), Pune and Bengaluru. It recently entered the Hyderabad property market. Out of the 10 land parcels acquired in the 2023-24 fiscal, the presentation showed that four land parcels are in Delhi-NCR, two each in Bengaluru and Hyderabad, and one each in Kolkata and Nagpur.
The total saleable area in these 10 future real estate projects is estimated at 18.93 million square feet. On the new supply guidance, Godrej Properties plans to launch residential projects worth Rs 30,000 crore this fiscal across major cities to achieve 20 per cent growth in sales bookings. In the last fiscal, the company's sales bookings jumped 84 per cent to a record Rs 22,527 crore, from Rs 12,232 crore in the preceding year.
This is the highest sales reported so far by any listed entity for FY24. According to investors presentation, Godrej Properties plans to launch 21.9 million (219 lakh) square feet area this fiscal with an estimated sales booking value of Rs 30,000 crore. Earlier this month, Godrej Properties reported its highest-ever quarterly profit as earnings jumped 14 per cent annually to Rs 471.26 crore in the March quarter. Its net profit stood at Rs 412.14 crore in the year-ago period.
