Godrej Properties

“This will allow us to both invest for continued growth while also being free cash flow positive for this period.”

“Our launch pipeline has never been stronger and with launches picking up substantially from this month onwards, we remain confident of surpassing our full year guidance across all key operating metrics.”

“And we therefore, expect the second half of this financial year to be our best ever period for both launches and sales.”

“But yes, I mean, even in very aggressive scenarios that we have simulated internally, we have a very high likely probability of being FCF positive in Q4.”

“Next year is almost like a sure shot because you would have noticed, we've also given very specific guidance in a way for next year's operating cash flow.”

“If we are able to get to the top end of the guidance, we indicated for the second half, that would imply a 40% 5-year compounded growth in bookings.”

“We're hoping to see something similar now as we enter the Bandra micro market.”

“Projects like Bandra, Sector 63A in Gurugram, Thane Uniabex, our projects in Vikhroli, hopefully our project in Ashok Vihar, Noida DMIC, Neopolis, Kharadi 2, Mahalunge 2, and Vastrapur as well as new phases of several projects are in the pipeline.”

“NCR this quarter did just under INR2,000 crores. Mumbai did about INR1,900 crores. Bangalore, we did just under INR1,600 crores, about INR1,000 crores in Pune, INR700-odd crores in Hyderabad and another INR800 crores in other cities during the quarter.”

“I think it is a very exciting opportunity for both the quarters because on one hand, we have Bandra Bay, which is a very critical and important launch for Mumbai.”

“I think we have a large number of approvals already in place and do expect Q3 to be a very big sales quarter.”

“While the headline bookings numbers for the quarter look muted, Q2 was a very strong operating quarter with sustenance sales growth of 83% year-on-year to INR5,054 crores.”

“We only launched 1/3 of our expected annual launch pipeline in the first half of the financial year, and we're still able to deliver 43% of our annual bookings guidance, highlighting the continued strength of underlying demand in the sector.”

“So I would say if the H2 continues the way we're looking at, I would say the launch will outperform sustenance, unlike H1 where sustenance outperform, but sustenance numbers will continue to be very, very exciting.”

“But yes, it would be more or less in the 40% to 60% range whether it's a launch or sustenance.”

“So it's like less than 1% price increase in some projects across NCR.”

“South and Mumbai have seen most projects seeing 2% sort of a jump in price and again, 0.5% or so in rest of the portfolio.”

“And in that specific launch, whatever profit we had internally casted for that cluster 2 years back has almost tripled because of the price jump and it is like 88% sold out.”

“Generally, we've not pushed pricing high in North markets, and we focused more on end user sales so that the quality of sale is higher.”

“Godrej Properties also reached its highest ever second quarter and first half collection with collections growing by 31% in the quarter to INR5,318 crores and by 25% in the first half to INR9,666 crores.”

“Benefiting from the strong collections, operating cash flow in the second quarter grew by nearly 300% quarter-on-quarter and by 33% year-on-year to INR1,584 crores.”

“With that, we get to a half yearly cash flow of INR1,983 crores.”

“Construction and related outflow increased by 31% year-on-year in the second quarter and by 42% for the first half of the year.”

“So we're only going to do BD our threshold return metrics, which are sort of a 20% IRR, a 15% bookings to net profit margin are met.”

“so there will be -- there are some more few JVs, 5, 6 JVs still left.”

“So I think Bangalore and Mumbai have been performing consistently well across quarters. So Bangalore will be a very high preference to add projects.”

“In Bombay, we are going to add a few specific micro markets ranging from South Bombay, Western suburb and even Thane, we are looking something exciting.”

“I think Pritesh, it most likely will be the next market we enter from a group housing perspective, but I don't think we're in a buzzing rush to do that.”

“So that's how the line-by-line consolidation happened, whereby bulk of the profits were already accounted for in the past.”

“So on consolidation, whatever the losses were there, that got picked up into Q2 numbers.”

“And we have Godrej Verano, which is a Golf Course Extension Road, which was planned initially for quarter 2 have slipped into quarter 3.”

“The only caveat here is that, of course, in NCR during the NGT ban is the only part of the portfolio, which would not see it to its full potential.”

“So if it is within the ranges of what we've seen historically, I think it's something we've already planned for. So there's no additive challenge beyond what we already factored in.”

“Certainly, we do not believe in creating any gap between occupation certificate and actual delivery.”

“I think from a launch perspective, there's never been any restrictions in even the worst of times in NCR. So that's sort of always been mitigated.”

“But we still, as we've indicated, believe our market share is only about 5% of the industry.”

“But I would say for quarter 3, 80% of whatever we needed was secured before even the quarter started because these were deferred launches.”

“In H1, we could pull off 42% Y-on-Y growth on construction and construction-related cash flows, which is almost like INR1,292 crores.”

“Godrej Properties achieved a booking value of INR8,008 crores in the second quarter from the sale of 3,658 units with a total area of 6.2 million square feet.”

“EBITDA declined by 72% to INR171 crores and net profit declined by 62% to INR154 crores.”