Real estate firm Godrej Properties is set to acquire multiple land parcels in the current fiscal year with sales revenue potential of around Rs 15,000 crore after development. Last fiscal year, the company added 18 new land parcels with a sales potential of Rs 32,000 crore post-development.
In an interview with PTI, Godrej Executive Chairman Pirojsha Godrej said the company will continue to add new land parcels for future developments but will scale down the pace compared to last year, which was an exceptional year. The company aims to achieve a new business development guidance of Rs 15,000 crore for the current fiscal year, which includes outright land purchase and joint development agreements (JDAs) with landowners.
Godrej Properties is currently in discussions with landowners across major cities for both outright purchases and JDAs. The company is confident of achieving higher numbers than its current guidance, but it does not want to add Rs 30,000 crore worth of new projects every year. Pirojsha Godrej said the company aims to achieve sales bookings of Rs 14,000 crore in a year without adding new projects worth Rs 30,000 crore.
The company’s performance during the last fiscal year was strong on all important metrics, including sale bookings, cash collections from customers, completion of projects, and new business development. Sale bookings rose 56% to an all-time high of Rs 12,232 crore, while cash collections grew 41% to Rs 8,991 crore. The company delivered a record 10 million square feet of project space and added 18 new projects with a total estimated saleable area of nearly 29 million square feet and total estimated booking value of around Rs 32,000 crore.
Among the company’s big-ticket deals in the last fiscal year was the acquisition of an 18-acre land parcel in Kandivali, Mumbai for Rs 750 crore to develop a luxury housing project with an estimated revenue potential of about Rs 7,000 crore. For the current fiscal year, the company has set a target of Rs 14,000 crore worth of sale bookings, Rs 10,000 crore worth of cash collections, and project deliveries of 12.5 million square feet.
Despite an increase in interest rates on home loans, Pirojsha Godrej expects the recovery in the real estate sector to sustain in the coming years. He noted that the Delhi-NCR market has been performing very well in terms of both sales volumes and pricing, and the company plans to launch many projects in Delhi, Noida, and Gurugram.
Godrej Properties, an arm of business conglomerate Godrej Group, mainly focuses on Delhi-NCR, Mumbai Metropolitan Region, Bengaluru, and Pune for the development of residential projects. In the full 2022-23 fiscal year, the company’s net profit increased to Rs 571.39 crore from Rs 352.37 crore in the previous year, while total income also grew to Rs 3,039 crore from Rs 2,585.69 crore.
The Significance of Godrej Properties’ Land Acquisitions
Godrej Properties is set to acquire multiple land parcels this fiscal year with a sales revenue potential of around Rs 15,000 crore after development. This move is an attempt to encash the strong housing demand in the country. Last fiscal year, the company was aggressive on land acquisition and added 18 new land parcels with a sales potential of Rs 32,000 crore post-development.
The company is currently in discussion with landowners across major cities for both outright purchases and JDAs.
Source of this News: Money Control
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