• last month
Transcript
00:00Godrej Properties is the next one. Remember, the company's net profit and revenue surge
00:05multifold to drive the earnings higher. Additionally, the company achieved about 51%
00:10of the annual guidance for booking value, has acquired land for residential project in Ahmedabad
00:15as well. And in part while Q2 numbers were not necessarily the strongest,
00:25let's hear from the management about what they feel about the quarters ahead.
00:30You know, as you would be, you know, if you track real estate for a while, usually
00:34real estate is a very lumpy business. Quarter 4 historically for us always has been extremely
00:39brilliant. But over the years, the endeavor is to try and spread out the launch calendar as much
00:44evenly as we can. And I think this year, what we managed to do is try and get as many launches in
00:48Q1. Q2, frankly, if you see from an industry perspective, whatever numbers I think have
00:54come till now, we're clearly leading the market. And in fact, if you see our H1 performance is
01:0013,800 plus crores, which is used to be a full year sales just two years back. So I'm quite
01:07delighted on the overall performance from a sales perspective. In fact, we've gone like 90%
01:12on booking value growth and about 89% of the volume growth in H1. So yeah, in fact, our last
01:19year's quarter 2 performance also was marginally lower than this year's quarter 2 performance. So
01:24yeah, I mean, from a sales perspective, very, very happy. On the other parts of the metrics,
01:28I think, as you rightly mentioned, collections have been a huge area of focus for us and very
01:33delighted because we got a lot of OCs this quarter, which is delivery of projects. That is the time
01:39when your collections tend to, you know, jump up quite a bit. So we saw some kind of 7,000
01:45crores of H1 performance, which is something like a 62% year on year performance. But on the
01:52net operating cash flow level, it's even much more stronger. It's about 2,800 plus crores,
01:56which is, you know, our best ever H1 performance. So very delighted with the very strong results.
02:03And you reckon that, I mean, I'm guessing at least automakers have been saying that the start
02:09of the end of Pitru Paksh resulted in a lot of bookings, etc. and stuff like that. You reckon
02:14Q3 and Q4 could actually be stronger than anticipated? In fact, would you be tempted to
02:21raise the annual numbers because you already achieved half of what you had guided for?
02:28I think, you know, let me go one by one. I think, as you rightly mentioned, Pitru Paksh has a,
02:32you know, start period, as we call it, has an impact on a typical cycle. In fact, last year,
02:36what happened was, it was just around early part of October, which means that doesn't really impact
02:42Q3 results. But this year, it was in the last few, say, two weeks of September. But, you know,
02:48for us, if you really ask me, I mean, industry wise, it has been an impact, but ours has been
02:52quite strong from whatever launches we were planning to get into the market this quarter.
02:58The second part of the question is how Q3 and Q4 looks like. I think very, very exciting,
03:02because we have a series of big bang launches planned in most markets, which we operate,
03:06including both Q3 and Q4. And yes, you're right, we've kind of met, you know, historically, our
03:13H1, as a, you know, we're doing some sort of analytics internally, we realized that about
03:1837% is what our H1 is usually to H2. And a best ever H1 has been typically 40%. This time, it's
03:26been like 50%. But to guidance. So yeah, I mean, we have a very high upside risk, but we want to
03:33maintain the same guidance. Hi, Gaurav, you've mentioned that in Q3 and Q4, you're expecting a
03:38lot of big launches. Now, considering that, is this the reason that the 6000 crore fund raises
03:44on cars? Explain to us, how do you plan to utilize these funds for? Sure, Rishi, I think
03:50the capital raise that we're looking at has got nothing to do with our performance on the sales
03:55side. In fact, we have enough and more to sustain a reasonable growth. But I think what we're going
04:01through is explosive growth. If you see, Gurdjieff's properties grew about 56% between FY23 and 24,
04:09and 22 and 23, and FY23 and 24 grew by 84%. In H1, we've grown by like 90%. This is,
04:16by any standards, one of the most explosive growths we've seen. And to fuel and maintain
04:22the pipeline, because we are seeing launches and performance far higher than what we had
04:27both underwritten and expected. So to maintain and the market opportunity is, we want to look
04:32at this purely as a growth capital and take the trajectory to its continued great orbit
04:40that we managed to do that. But frankly, if you ask me, for the next 12 to 18 months,
04:45we have enough and more to deliver on great growth. And considering that you've mentioned
04:53that this is for the growth opportunities that you're seeing these fundraisers, what is the kind
04:57of, I want to understand on the pricing trend. Now, with the new launches, there has been a
05:02high velocity of new launches that we've seen across real estate sector. But given that the
05:07high pricing demand that we are overall growth that we are looking at, do you expect the pricing
05:12levels to stabilize from year onwards? And how would that lead to an impact on the launches if
05:18you see? I think if you see generally, you know, pricing has been a sort of a secular trend across
05:26the last, say, 24 odd months across India. But the degree of price appreciation has been varied,
05:32right? I mean, North markets like NCR and Gurgaon in particular has seen a sharper price increase
05:38by Bangalore than by Noida. And Mumbai very recently has started seeing a reasonable jump
05:43in pricing. And relative to that, Pune is yet to even take off from relative pricing part of it.
05:48So I think different markets are a different cycle. So I would say, you know, that next
05:5412 months to 24 months, there should be good opportunities of pricing growth in specific
05:59markets. And I also feel the markets will change. Gurgaon will move from periphery markets to
06:04Gulf Coast Road, which is where our dominant new exciting set of projects will come.
06:10So from what we've underwritten to launch, I'm reasonably confident we'll deliver better pricing
06:14growth. But, you know, how much it is to what many quarters, it will continue very difficult to
06:20frankly crystal gaze. But in the very near term, I think there is some reasonable probability
06:25that in many markets we could see a reasonable price growth. But yes, different micro markets
06:30are different. So like I was mentioning, Gurgaon, I think Gulf Coast Road is going to see the
06:35massive action from all of these KPIs. But, you know,
06:38a different market is going to see different pricing trends.
06:42All right. That's Godrej Properties, of course, and the stock solid 3 percent higher
06:48on what I thought was a decent quarter, of course.

Recommended