Godrej Properties Ltd Q3 2025 Earnings Call Transcript

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

Question: Puneet Gulati - HSBC - Analyst : My first question is, if you can share your thoughts about the sustaining sales momentum, a lot of your sales are also driven by launches. How should one think about the fair number of sustaining sales on a quarterly basis?

Question: Puneet Gulati - HSBC - Analyst : Sorry, sorry. My question is in context of your guidance where you have to meet your full year guidance, you need to do about INR7,700 crores of presales and balance and launched value of our inventory is also somewhere slightly shy of INR7,000 crores. So how confident are you of meeting your guidance here? And you've made a decent amount of sustenance sales to the Isn't it or...

Question: Puneet Gulati - HSBC - Analyst : Yes. Okay. So should I also think that your launch number for full year will be higher than what you've guided maybe start of '25?

Question: Puneet Gulati - HSBC - Analyst : That's helpful. And secondly, if you can also talk about what you're seeing in terms of progress on your Bangalore site. So Bangalore market has picked up this time. How are you seeing your market share growing there?

Question: Pritesh Sheth - Axis Capital Limited - Analyst : First is on the launches for Q4, you briefly highlighted some of them. Any broad number in terms of the total revenue potential that you are expecting to launch this quarter, including the couple of launches, which are already in process?

Question: Pritesh Sheth - Axis Capital Limited - Analyst : Got it. it. That's helpful. Just on Mumbai, Worli launch will happen this year or next year?

Question: Pritesh Sheth - Axis Capital Limited - Analyst : Sure. Got it. And just on the launch strategy of late, I'm seeing we are giving a little more time to the launches. Any specific strategy in place? Or probably we have just taken where we are in the market right now. We are taking a little bit more time to generate as much for the EOI for the project and, hence, a little bit more time for launches? Or you can guide me on where I am, what my thoughts process is?

Question: Pritesh Sheth - Axis Capital Limited - Analyst : Got it. And one last -- and then I'll go on to the follow-up. But for NCR, I mean we have a flattish 9 months. Obviously, last year was pretty strong. And considering that now we are more into luxury side of or premium side of launches in that market, do you think that market from a contribution perspective has peaked out for us and might even be lower next year, considering we don't have any volume projects there, like we used to have in general. So your thoughts on NCR market.

Question: Praveen Choudhary - Morgan Stanley - Analyst : Congratulations on very strong presales this quarter. I just have one question. Are you seeing any areas, geographies or segments where the demand is looking weaker than, let's say, 6 months ago? And how are you countering that? And the related question is also the land banking that you have done in the last 6 months and the assumption that you may have for the margin. Do you think that margin will come under pressure if demand is weaker?

Question: Praveen Choudhary - Morgan Stanley - Analyst : That's very reassuring. If I have just one follow-up on collections. Your year-to-date or calendar year collection and operating cash flow has been strong. But just looking at the December quarter, we saw some softness. It could just be temporary. I just wanted to understand if there were any factors affecting that and the fact that next year, it will come back strongly. Can you talk about that?

Question: Abhinav Sinha - Jefferies - Analyst : A couple of questions. So firstly, given where we are on the BD side for the year. So how do you expect this unfolding in the next, say, 1 or 2 quarters? And where do we expect the net gearing to be?

Question: Abhinav Sinha - Jefferies - Analyst : That's right. BD and the corresponding net debt in the next few quarters? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. FEBRUARY 04, 2025 / 11:00AM, GODR.NS - Q3 2025 Godrej Properties Ltd Earnings Call

Question: Abhinav Sinha - Jefferies - Analyst : Right. Gaurav, from a portfolio basis, we are now fairly premium as compared to, say, 2 years back. But do you see this ratio sustaining here or be, let's say, head further more on the premium leather?

Question: Abhinav Sinha - Jefferies - Analyst : Let's say, from a -- more from a -- how do you plan your ticket sizes? Do you want to do more of large 3, 4 bedrooms?

Question: Abhinav Sinha - Jefferies - Analyst : Right. And Gaurav, one final question. So I think you partly answered this, but broadly, on Golf Course Road, we have, I think, north of INR10,000 crores worth of inventory with us. So how does this -- you see this annually being sold down? Are you going to have like, let's say, all 4 projects launched by, say, middle of next year or something?

Question: Parikshit Kandpal - HDFC Securities - Analyst : Gaurav congratulations on a great quarter. My first question is that for the year 9 months and for this third quarter, what has been the contribution from the new launches to the presales?

Question: Parikshit Kandpal - HDFC Securities - Analyst : Okay. So the other question is that now -- I mean, in terms of your sales, so are you seeing any elongation in the sales closer cycles for new -- I mean customer taking... REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. FEBRUARY 04, 2025 / 11:00AM, GODR.NS - Q3 2025 Godrej Properties Ltd Earnings Call

Question: Parikshit Kandpal - HDFC Securities - Analyst : So just wanted some data point at your sites when you are launching new projects, do you see -- are you seeing any trend where the closer cycle is elongating or taking more time for deals to get closed over the last few quarters?

Question: Parikshit Kandpal - HDFC Securities - Analyst : So that was -- the question was that now we have only INR7,000 crores to be launched versus the guidance of INR30,000 crores for the year as a whole, and we have a large number...

Question: Parikshit Kandpal - HDFC Securities - Analyst : Upsizing. I wanted to know how much on a conservative basis can we upsize this, I mean, for this quarter? I mean you would have already got some sense on given that we have only 2 months left. So some reasonable visibility on getting approval. So what could be the upsizing here? I mean, given that large quantum of the presales is coming from new launches?

Question: Parikshit Kandpal - HDFC Securities - Analyst : Okay. And just on the embedded margin, if you can highlight what has been the number for the 9 months and for the third quarter? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. FEBRUARY 04, 2025 / 11:00AM, GODR.NS - Q3 2025 Godrej Properties Ltd Earnings Call

Question: Parikshit Kandpal - HDFC Securities - Analyst : Okay. And just the last question on the approvals. I mean we have seen a couple of projects getting approvals later in the quarter versus expectation. So in general, across your key markets, what has been now the trend on getting approvals? We have seen delays, especially in South in last quarter. But do you think that things are now improving and are on track for getting approvals on time?

Question: Kunal Lakhan - CLSA Limited - Analyst : My questions are actually pertaining to NCR market. Considering your launch Graya, right, we've sold about 25% odd in this quarter. This is -- do you see any slowdown there? Because until last year, we were seeing projects getting sold out at launch. And again, the related question is since we are doubling down on that -- on the Golf Course Road in terms of project acquisition also. Do you see that as a concern considering the prices there have gone up like 100% or 150% in the last four, five years. And we -- essentially, we are buying land there now at current prices. So do you see that as a concern considering like the sales velocity in the micro market kind of slowing down versus are we doubling down on the market in terms of acquisitions?

Question: Kunal Lakhan - CLSA Limited - Analyst : Sure, sure. Just a follow-up on that in terms of, like, if you look at the overall -- the whole Golf Course Road as well as Golf Course Extension, I know they don't compete with each other, but still like in terms of like the overall micro market, right, the kind of supply that is expected from, say, the top 8 to 10 developers, right, almost each of them planning to launch like 400, 500 unit projects in the next 6 to 9 months, close to like 4,000, 5,000 units costing, say, INR7 crores, INR8 crores plus. That's a huge supply in that kind of ticket size, right? Would you be worried in terms of like oversupply situation in that particular ticket size over the next 1 year, 2 years or so?

Question: Rahul Jain - Elara Capital - Analyst : Sir, just wanted to check on your strategy in terms of outside the Tier 1 markets. I mean you have already acquired two land parcels in Indore. Just want to understand what really -- what are the factors that you consider before entering a Tier 2 market essentially? And are there any Tier 2 -- other Tier 2 markets that you're considering to enter?

Question: Rahul Jain - Elara Capital - Analyst : Understood, sir. Very clear. And one more on the Worli launch. I mean, what is the ticket size that you are targeting?