Godrej Properties Q3 Results Review - On Track For Another Topnotch Performance: Motilal Oswal

Motilal Oswal Report

Godrej Properties Ltd. reported the highest ever bookings of Rs 57 billion, up 76%/14% YoY/QoQ and 14% above our estimate. For 9M FY24, pre-sales stood at Rs 130 billion, up 59% YoY.

Sales volume was flat YoY but declined 17% sequentially to 4.3 msf. Blended realisation too was at an all-time high, as it increased 79%/14% YoY/QoQ to ~Rs 13,200/sft, due to higher contributions from the premium projects.

Godrej Properties’ performance was led by new phases/project launches that generated ~73% of total sales. It launched eight new project/phases with a combined saleable area of ~6.75 msf. Total launches stood at 13 msf in 9M FY24.

Godrej Properties has indicated that a few of its key projects, such as Worli (MMR), Ashok Vihar (NCR), and Sarjapur (Bengaluru) are likely to be delayed. However, excluding these projects, the launch pipeline for Q4 FY24 remains strong at ~9 msf. While management has reiterated its guidance to achieve Rs 140 billion of pre-sales in FY24, we expect the company to clock bookings of Rs 195 billion.

Revenue jumped 68% YoY to Rs 3.3 billion versus our estimate of Rs 1.1 billion, due to higher-than-expected sales from the completed projects. It reported an operating loss of Rs 416 million, and its profit after tax grew 11% YoY to Rs 627 million aided by other income of Rs 2.2 billion.

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