Seeking to encash robust housing demand, realty agency Godrej Properties will purchase a number of land parcels this fiscal having a gross sales income potential of round Rs 15,000 crore post-development. Last fiscal, Godrej Properties was very aggressive on land acquisition and added 18 new land parcels with gross sales potential of Rs 32,000 crore post-development.
In an interview with PTI, Godrej Executive Chairman Pirojsha Godrej mentioned the corporate will proceed to add new land parcels for future developments, however it should scale down the tempo.
Asked in regards to the FY24 steerage for new enterprise growth, which implies the outright land buy and joint growth agreements (JDAs) with landowners, he mentioned, for now it has been set at Rs 15,000 crore in this fiscal.
However, Pirojsha mentioned the corporate would simply obtain larger numbers.
On causes behind setting a decrease goal for new enterprise growth, Pirojsha mentioned, “Last yr was an distinctive yr. Not essentially we can have such numbers yearly.” Further, he added: “We don’t even want to add Rs 30,000 crore worth new projects every year. To achieve sales bookings of Rs 14,000 crore in a year, we dont need to actually add new projects worth Rs 30,000 crore.” Pirojsha Godrej mentioned the corporate is in dialogue with many landowners throughout main cities for each outright purchases in addition to getting into into JDAs.
On the efficiency over the past fiscal, he highlighted that it was very robust on all vital metrics like sale bookings, money collections from prospects, completion of tasks and new enterprise growth.
Sale bookings rose 56 per cent final fiscal to an all-time excessive of Rs 12,232 crore and nearly all had been housing properties, he mentioned. Cash collections grew 41 per cent to Rs 8,991 crore final fiscal yr, whereas venture deliveries touched a report 10 million sq. toes.
Godrej Properties added “18 new tasks in FY23 with a complete estimated saleable space of almost 29 million sq. toes and whole estimated reserving worth of round Rs 32,000 crore.” Among big-ticket deals in FY23, the company acquired 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.
Regarding the current fiscal, Pirojsha said the company has set a target of Rs 14,000 crore worth of sale bookings for now. The cash collection target has been set at Rs 10,000 crore for the current fiscal, while the deliveries of projects would rise to 12.5 million square feet, he said.
Asked about the market, Pirojsha said the recovery in the real estate sector has been very good post second wave of the COVID pandemic despite the increase in interest rates on home loans.
He expected demand to sustain in the coming years.
Pirojsha noted that the Delhi-NCR market has been performing very well in terms of both sales volumes and pricing. To encash this, he said the company plans to launch many projects in Delhi, Noida and Gurugram.
Godrej Properties, an arm of business conglomerate Godrej Group, is one of the leading real estate developers in the country. It mainly focuses on Delhi-NCR, Mumbai Metropolitan Region, Bengaluru and Pune for the development of residential projects.
During the full 2022-23 fiscal, the company’s net profit increased to Rs 571.39 crore from Rs 352.37 crore in the previous year. Total income also grew to Rs 3,039 crore last fiscal from Rs 2,585.69 crore in 2021-22.
(This story has not been edited by News18 employees and is revealed from a syndicated information company feed)
