DBT Bureau
Bengaluru, 8 January 2025
India’s leading real estate player, Godrej Properties Ltd (GPL) is confident of surpassing its sales guidance of Rs 27,000 crore in FY25 on the back of robust launch of new projects.
According to brokerage firm- Axis Capital, Godrej Properties Ltd achieved a sales booking of Rs 13,800 crore in the first half of ongoing financial year, a rise of 90% over the same period last fiscal. This was 51% of company’s pre-sales guidance for FY25.
“The growth was driven by Rs 13,600 crore of launches in H1FY25, which contributed 77% to pre-sales. We expect GPL to launch Rs 24,400 crore worth of projects in H2FY25. Assuming absorption rate sustains at 70-75% as reported in H1, a success rate of 50-60% (i.e. Rs 12,000 crore-Rs 15,000 crore of launches) will be sufficient to meet the guidance,” Axis Capital said in a report.
During October-December (Q3 of FY25), GPL has already launched Rs 8,000 crore- Rs 9,000 crore worth of projects and remains on track to comfortably exceed the ask rate for launches. Thus, we expect GPL to clock pre-sales of Rs 30,000 crore in FY25, 11% above the guidance,” the report noted.
According to the brokerage firm, the company is likely to sustain the growth momentum on the back of its recent fund raise.
In December 2024, Godrej Properties raised Rs 6,000 crore through QIP mainly for acquiring land bank for future growth.
“Since the beginning of FY22, GPL has added Rs 86,000 crore worth of projects, delivering 50% CAGR in pre-sales over FY21-24. To capitalize on sustained high growth opportunity and accelerate project additions, it raised Rs 6,000 crore in December 2024. Assuming an average land cost of 15%, it can incrementally add Rs 40,000 crore worth of projects. It has zoned out its growth strategy and aims to clock Rs 10,000 bn of pre-sales in each of the four zones. While it has enough projects in NCR, the management aims to focus on Bengaluru, Pune and MMR to scale up the pipeline,” the report noted.
