Godrej Properties Ltd Q3 2019 Earnings Call Transcript

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

Question: Abhishek Bhandari - Macquarie Research - Analyst : I have actually 3 questions. I'll take them one by one. First, if I look at your other income, which has been a meaningful contributor to both EBITDA and PAT, if you could help us break down that line a little more, what constitute this other income in your P&L? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. JANUARY 28, 2019 / 11:00AM, GODR.NS - Q3 2019 Godrej Properties Ltd Earnings Call

Question: Abhishek Bhandari - Macquarie Research - Analyst : So basically, it's all interest income which comes into other income?

Question: Abhishek Bhandari - Macquarie Research - Analyst : Okay. My second question, Pirojsha, is you guys have had probably one of the best presales we have seen in the sector in last 6 to 9 months. I understand brand plays a very important role. Do you think there are any other things which might have helped you, especially around marketing your projects well, learning from some of the experience of not-so-great launches, especially in first half of this year? Or is it just that you guys probably had a better location to launch with? And if you could probably give some more details, it will be helpful.

Question: Abhishek Bhandari - Macquarie Research - Analyst : But are there any specific marketing campaigns run around these projects, especially the ones which were launched now. Or were they were just like normal launch, what you would have otherwise. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. JANUARY 28, 2019 / 11:00AM, GODR.NS - Q3 2019 Godrej Properties Ltd Earnings Call

Question: Abhishek Bhandari - Macquarie Research - Analyst : That's helpful, Mohit. And my last question is around your progress on your CapEx projects. I'm not asking about the Hero commercial project, which was signed very recently. But some of your other Godrej 2 and the hotel, has there been any progress in finalizing the total outlay? And how are you going to finance it?

Question: Abhishek Bhandari - Macquarie Research - Analyst : Okay. Pirojsha, if I can ask one last question. Are you guys really happy with your EBITDA margin, excluding your other income? The reason I'm asking is some of our projects have reached a mature phase and are probably selling at higher than the launch prices. So ideally speaking, your EBITDA margin should be trending upwards over last few quarters, but there has been a lot of volatility on this line item.

Question: Puneet J. Gulati - HSBC, Research Division - Analyst : Congratulations for good presales. Just trying to understand what is really the bottleneck in closing the deals which you've been talking about on the business development side?

Question: Puneet J. Gulati - HSBC, Research Division - Analyst : Okay. So can you give some more color on the conditional precedence that you mentioned?

Question: Puneet J. Gulati - HSBC, Research Division - Analyst : Okay. So will it be fair to assume that when you announce the deal, the time to announce and the time to launch will be much shorter than what we saw previously?

Question: Puneet J. Gulati - HSBC, Research Division - Analyst : Okay. There is also talk of lot of stressed assets coming into the market. Would you be open to looking at that from portfolio perspective? Or not really?

Question: Puneet J. Gulati - HSBC, Research Division - Analyst : Stressed developers, maybe something like an Amrapali hypothetically.

Question: Puneet J. Gulati - HSBC, Research Division - Analyst : Okay, okay. Lastly, while there was an exceedingly good sales, it didn't quite show up on the cash flow front. If you can comment a bit there.

Question: Puneet J. Gulati - HSBC, Research Division - Analyst : Okay. So basically, you announced this, then the customer books by paying a booking number or full 10% or 30% or whatever?

Question: Puneet J. Gulati - HSBC, Research Division - Analyst : Okay, okay. So the balance 30% for example, in case of the Mumbai, which you will need for registration. Could come in...

Question: Puneet J. Gulati - HSBC, Research Division - Analyst : 10%.

Question: Puneet J. Gulati - HSBC, Research Division - Analyst : Yes, yes 10%, correct. Okay. So that's right, lastly, Rajendra I couldn't quite understand on that other income part. You said there is an interest income that you earn from the JV projects. So the other income is a net number or a gross number?

Question: Puneet J. Gulati - HSBC, Research Division - Analyst : Which is expensed-out in various projects?

Question: Puneet J. Gulati - HSBC, Research Division - Analyst : Okay. And for Ahmedabad?