Godrej Properties Ltd Q2 2021 Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Abhishek Bhandari - Macquarie Research - Analyst : Pirojsha, my first question is on Slide #22, which is the cash flow statement. So if I look at this quarter also, we had almost INR 700 crore of cash outflow for land and approval charges. Can you just clarify, is this inclusive payment for both the lands what we have purchased this quarter, which is be Kalyan and the Bangalore land?

Question: Puneet J. Gulati - HSBC, Research Division - Analyst : Hello?

Question: Puneet J. Gulati - HSBC, Research Division - Analyst : My first question is, if you can give some more color on the sales in terms of how much was investor-driven, essentially NRIs? And any other comment that you want to make, given the fact that both 1Q had pretty much one launch and 2Q had none. And despite that, 1Q in a tougher environment was better in terms of sales versus 2Q. If you can give some more color there, it will be helpful.

Question: Puneet J. Gulati - HSBC, Research Division - Analyst : Would it be possible to quantify what would be your unsold inventory either in terms of area or value?

Question: Puneet J. Gulati - HSBC, Research Division - Analyst : Yes. What will be the unsold inventory that you have either in terms of area or in value?

Question: Puneet J. Gulati - HSBC, Research Division - Analyst : Okay.

Question: Puneet J. Gulati - HSBC, Research Division - Analyst : Yes, which is why I was wondering as there's still a lot to sell. So lack of choice shouldn't really have been an issue here for customers. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. NOVEMBER 03, 2020 / 10:30AM, GODR.NS - Q2 2021 Godrej Properties Ltd Earnings Call

Question: Puneet J. Gulati - HSBC, Research Division - Analyst : Right. And what is the launch pipeline? Like how confident are you for the second half?

Question: Puneet J. Gulati - HSBC, Research Division - Analyst : My last question is on the inventory side. On the balance sheet, the inventory seems to have gone up. What is that related to? Which project is that?

Question: Puneet J. Gulati - HSBC, Research Division - Analyst : Okay. Okay. Okay. Good. And the investments have gone down, investments in JVs.

Question: Puneet J. Gulati - HSBC, Research Division - Analyst : But that money basically should have come back to -- has come back to you or?

Question: Puneet J. Gulati - HSBC, Research Division - Analyst : No, no, no. The investments in joint ventures, for example, which was -- which is INR 884.5 crores was INR 963 crores the previous quarter. It seems like some money has come back from some project.

Question: Puneet J. Gulati - HSBC, Research Division - Analyst : The Q1 number was INR 963 crores. But okay, we can have a chat offline.

Question: Abhishek Bhandari - Macquarie Research - Analyst : Sorry, I got disconnected at the start. So again, taking back to the land payments, I don't want the break down of the INR 700 crores. What I'm more interested, Pirojsha, is that do you expect this INR 700 crores, INR 800 crores run rate on a quarterly basis to sustain over next few quarters given your BD pipeline and some of the payments which are due for likes of Ashok Vihar and the Bangalore we've got concluded in the post Q2?

Question: Abhishek Bhandari - Macquarie Research - Analyst : Sure. So on related question, Pirojsha, even if you assume 7.5%, 8% debt cost on, let's say, INR 4,500 crores of debt, which is your eventual goal of 1:1, we are looking at almost an annual interest cost of INR 350 crores to INR 400 crores. Now do you think we have enough visibility on the momentum on the operating cash flow that we'll be sufficiently able to cover the interest payments and other charges, what will be due to us?

Question: Abhishek Bhandari - Macquarie Research - Analyst : Sure. Pirojsha, second question is basically the mix of promotion-led sales versus the normal payment cycle sales this quarter. If I remember correctly, last quarter, almost 70% odd was driven by subvention kind of scheme, which, of course, was probably keeping in mind the market conditions then. What was the breakup for this quarter in terms of this promotion-related schemes? And do you think time has now come for you to end those given, as you mentioned, some visible signs of green shoots, et cetera, are there for -- on the demand side?

Question: Abhishek Bhandari - Macquarie Research - Analyst : Sure. And my last question is on more like a strategy question on the office side. Many of your peers in Bombay have now started talking about becoming bigger in office possibly driven by investor interest to fund those constructions. Would you want to revisit your standing of not clearly doing CapEx heavy projects and just focusing on residential? Or do you think you might be opportunistic to... REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. NOVEMBER 03, 2020 / 10:30AM, GODR.NS - Q2 2021 Godrej Properties Ltd Earnings Call