News Godrej Properties posts record numbers in 2024 Sale
In the calendar year 2024, Godrej Properties Plots Mumbai achieved unprecedented success in its operations, marking a significant milestone in its history. The company reported a record booking value of INR 28,800 crore, which represents a remarkable 69% growth compared to the previous year. This achievement was driven by strong demand for housing projects across various cities in India, Godrej Plots Mumbai with the total area sold reaching 26.38 million square feet, reflecting a volume growth of 54%.
Godrej Properties
The performance was particularly notable in key markets such as Delhi-NCR, which contributed the highest pre-sales at INR 9,936 crore, followed closely by the Mumbai Metropolitan Region (MMR) with INR 9,177 crore, and Bengaluru at INR 5,303 crore. This geographical distribution highlights Godrej Properties’ strategic positioning and ability to cater to diverse market demands.
Godrej Properties Plots Mumbai
Additionally, the company launched 30 new projects during the year, including new phases of existing developments, Godrej Plots Indore which had a sales potential of approximately INR 34,300 crore. The successful execution of these projects culminated in delivering an impressive 18 million square feet of area to customers.
Financially, Godrej Properties reported substantial growth in net profit and total income. Godrej Plots Nagpur For instance, in the December quarter alone, net profit surged more than two and a half times to reach INR 162.64 crore, up from INR 62.27 crore during the same period last year. Total income also more than doubled to INR 1,239.97 crore, compared to INR 548.31 crore from the previous year.
Godrej Properties not only set records for bookings and collections but also demonstrated robust operational performance amid strong housing demand across India.
Godrej Properties announced its 3QFY25 results on February 4, 2025, wherein it has reported strong progress in business activities. The calendar year 2024 proved to be a record-breaking period for the company, achieving the highest ever booking value by any listed developer in India, amounting to INR288bn from the sale of 26.4mn sq. ft. of area. This reflects a robust increase of 69% and 54% in booking value and volume, respectively.
Additionally, collections rose 40% to INR147.8bn, whereas operating cash flow during the calendar year surged by 52% to INR60.4bn. The company delivered projects aggregating ~18 million sq. ft. across 7 cities; added 16 new projects with an estimated saleable area of 29.1mn sq. ft and anticipated booking value of INR362.5bn.
Godrej Properties Limited, established in 1990 and part of the Godrej Group, is a real estate company that is currently developing landmark projects in 12 cities across India, covering over 18.6mn sqm. The company is the largest real estate developer by booking value in India in FY24.
Segment-wise, Real Estate contributed to the bulk of the operating revenue in 3QFY25 at 97%, and Hospitality contributed 3%. The company has a workforce of 2,391 employees.
Well-positioned to reach guidance levels
The real estate sector in India witnessed strong growth in FY24, fueled by strong housing demand, stable interest rates, and a robust economy. As per Godrej Properties, the sector was able to attract investments of USD5.1bn, with land acquisitions accounting for 40% of total investments. Godrej Properties grew in sync with the sector, achieving 7th consecutive year of record annual sales in FY24.
Continuing with the positive business momentum, Godrej Properties has an aggressive launch pipeline in FY25 with an expected launch area of 21.9mn sq. ft. worth INR300bn. The company anticipates registering a total booking value of INR270bn in FY25, customer collections of INR150bn, and deliveries of 15 mn sq. ft.
The company is on track to achieve the above guidance levels in FY25, with 71% already achieved in booking value in 9MFY25, 67% in customer collections, and 79% in deliveries.
Positive long-term bottom-line performance
Godrej Properties witnessed a flat topline trajectory in the past five years, with revenues rising at a CAGR of 1.5% to INR30.4bn. However, the gross profit grew at a CAGR of 14.5% during the same period to reach INR12.3bn in FY24, aided by sustained improvements in margin performance, reflecting a total increase of 18.3% to 40.4%. Consequently, the net income surged at a CAGR of 23.4% to reach INR7.3bn in FY24.
The company strengthened its cash reserves during the same period, reaching over 8.5x to INR13.2bn as of FY24 end from INR1.5bn as of FY19 end. The rise in cash reserves has been aided by the sale of investments, and an increase in debt funding. Consequently, there has been a considerable increase in leverage for Godrej Properties, with debt to total capital standing at 50.9% as of FY24 end.
On the other hand, the company’s peer – DLF Limited, witnessed its revenue decline at a CAGR of 5.1% over the period FY19-24 to INR64.3bn. Gross profit demonstrated a flat CAGR of 1.3% to reach INR36.3bn. However, the bottom-line performance fared better, with net income growing at a CAGR of 15.6% to INR27.3bn in FY24, aided by the sale of assets and investments.
Sustained performance in booking value
Godrej Properties witnessed solid traction in booking value in 3QFY25, registering INR54.5bn from sale of 4.07mn sq. ft. This reflects a 5% QoQ growth and marks it as the 6th consecutive quarter in which the company has clocked more than INR50bn of booking value. Consequently, the company has already achieved 71% of its annual guidance for booking value for FY25.
Enhancing its pipeline, the company has added 4 new projects during the quarter with an estimated saleable area of 5.9mn sq. ft. and an expected booking value of INR108bn. Collections were robust during the quarter, reflecting a 27% YoY increase to INR30.7bn. In order to fund its projects and cater to the surging demand, Godrej Properties raised INR60bn of equity for growth capital through the largest ever QIP witnessed by a real estate company in India. The issue was fully subscribed at 4x with long-only demand.
On the back of increased project launches and collections, the company reported a robust 133% YoY growth in total income to INR12.2bn in 3QFY25, led by Godrej Parkland Estate in Haryana, with income of INR4.7bn. Net profit surged ahead by 161%, reaching INR1.6bn.
Price correction in the recent past
Godrej Properties is currently trading at a P/E of 48x, based on the estimated FY25 EPS of INR44, which is significantly higher compared to the global peer average of 16.2x. However, the company is trading lower compared to its 9-year historical P/E average of 62x. Godrej Properties is also trading slightly lower compared to its peer, DLF Limited, which is currently trading at a P/E multiple of 50x. Valuation through the EV/EBITDA approach projects the multiple of Godrej Properties and DLF at around 79x.
The stock price has delivered muted performance over the past year, declining over 10%. However, the majority of the 18 analysts covering the company are optimistic about its outlook, with 10 of them having a ‘Buy’ recommendation, 5 giving an ‘Outperform’ rating, and 1 giving a ‘Hold’ rating for an average target price of INR3,144. This suggests an impressive upside potential of approximately 48% from the current market price.
Godrej Properties
the company appears poised to continue with its sales momentum and ride on the real estate wave in the country. The stock is further supported by robust financials, record booking value and attractive pipeline projects. However, the company is also fraught with risks, including strict regulatory purview on the sector, funding challenges, and periods of subdued demand. Additionally, the share price has corrected in the recent past owing to valuation concerns and high leverage levels. Nonetheless, Godrej Properties Plots continues to remain one of the leading players in the real estate landscape in India.
