Godrej Properties Ltd (GODREJPROP) Q2FY27 Concall Transcript - Sep-2026 Qtr
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Moderator: Ladies and gentlemen, good day, and welcome to the Godrej Properties Q2 FY27 earnings conference call. As a reminder, all participant lines will be in the listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference call, please signal an operator by pressing star then zero on your touch-tone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Kshitij Jain from Godrej Properties. Thank you, and over to you, sir.
Kshitij Jain (Godrej Properties Ltd): Thank you, Swapnali. Good afternoon, everyone, and thank you for joining us on Godrej Properties' Q2 FY27 results conference call. We have with us Mr. Pirojsha Godrej, Chairperson; Mr. Gaurav Pandey, Managing Director and CEO; and Mr. Rajendra Khetawat, CFO of the company. Before we begin this call, I would like to point out that some statements made in today's call may be forward-looking in nature. The forward-looking statements are based on expectations and may involve risk. The outcomes may differ materially from those suggested by such statements, and a disclaimer to th- to this effect has been included in the results presentation. I would na- now like to invite Pirojsha to make his opening remarks. Over to you.
Pirojsha Godrej (Godrej Properties Ltd): Good afternoon, everyone. Thanks for joining us for Godrej Properties second quarter financial year '27 conference call. I'll begin by discussing the highlights of the quarter and we then look forward to taking your questions and suggestions. Godrej Properties achieved a booking value of Rs. 8,008 crore in the second quarter from the sale of 3,658 units with a total area of 6.2 million sq ft and a booking value of Rs. 16,659 crore in the first half from the sale of 7,396 units with a total area of 12.3 million sq ft. The bookings for the quarter were 6% and 7% lower year-on-year and quarter-on-quarter, respectively, while for the first half bookings grew by 7%. While the headline bookings number for the quarter looked muted, Q2 was a very strong operating quarter with sustenance sales growth of 83% year-on-year to Rs. 5,054 crore. Three three projects, namely Godrej Trilogy in Mumbai, Godrej Anantara in Bengaluru, and Godrej Samarath in Gurugram contributed more than 500 crore each to sustenance sales. Godrej Brookline Avenue, our project in Hyderabad, launched towards the end of the first quarter, also contributed more than Rs. 500 crore to bookings. We only launched 1/3 of our expected annual launch pipeline in the first half of the financial year and were still able to deliver 43% of our annual bookings guidance, highlighting the continued strength of underlying demand in the sector. Our launch pipeline has never been stronger, and with launches picking up substantially from this month onward, we remain confident of surpassing our full-year guidance across all key operating metrics. Projects like Bandra, Sector 63A in Gurugram, Thane Union Park, projects in Vikhroli, hopefully, our project in Ashok Vihar, Noida, DMIC, Neopolis, Kharadi 2, Mahalunge 2, Vastrapur, as well as new phases of several projects are in the pipeline, and we therefore expect the second half of this financial year to be our best ever period for both launches and sales. The company's sales were well-diversified geographically with key contributions from major residential markets. NCR this quarter did just under 2,000 crore, Mumbai did about 1,900 crore, Bangalore we did just under 1,600 crore, about 1,000 crore in Pune, 700 odd crore in Hyderabad, and another 800 crore in other cities during the quarter. This is the seventh consecutive quarter in which Godrej Properties has delivered more than Rs. 7,000 crore of booking value, and the 13th consecutive quarter in which the company has delivered more than 5,000 crore of booking value. Godrej Properties also reached its highest ever second-quarter and first-half collections, with collections growing by 31% in the quarter to Rs. 5,318 crore and by 25% in the first half to Rs. 9,666 crore. Benefiting from the strong collections, operating cash flow in the second quarter grew by nearly 300%, quarter-on-quarter, and by 33% year-on-year
Pirojsha Godrej (Godrej Properties Ltd): to INR 1,584 crore. Which with that, we get to a half-yearly cash flow of INR 1,983 crore. Construction-related outflow increased by 31% year-on-year in the second quarter and by 42% for the first half of the year. We are especially focused on generating strong cash flows and expect INR 15,000 crore of cash collection and INR 7,000 crore of operating cash flow in the second half of the financial year. This will allow us to both invest for continued growth while also being free cash flow positive for this period. FY '26, as we've been indicating, is an important year for the company, where the exceptional growth of the past few years becomes apparent in the reported financials under project completion accounting. We expect to deliver both positive free cash flow and a 20% reported ROE in financial year '26. During the last quarter, we added one new project with an estimated saleable area of approximately 1.1 million square feet and expected booking value of about INR 6,000 crore. With this, GPL has added 4 projects with an estimated saleable area of about 9 million square feet and an expected booking value of about INR 15,500 crore in the first half of the financial year, which has gotten us to about 78% of our full year guidance. GPL delivered projects aggregating 2.5 million square feet in the quarter, and we remain on track for 13.5 million square feet of deliveries in the full year. For the quarter, our total income grew by 38% to INR 2,575 crore. EBITDA declined by 72% to INR 171 crore and net profit declined by 62% to INR 154 crore. For the first half, total income grew by 13% to INR 3,912 crore, EBITDA declined by 53% to INR 717 crore, and net profit declined by 50% to INR 504 crore. This was largely due again to the back-ended nature of deliveries this year, and we expect to see positive momentum particularly in Q4, and then we've already indicated the expectations on the P&L for FY '26. We remain extremely excited about the opportunity ahead and will seek to continue to gain market share through outstanding design, timely delivery, and high quality development. On that note, I conclude my remarks. Thank you all for joining us on the call. We'd now be happy to take any questions, comments, or suggestions you may have.
Moderator: Thank you, sir. We will now begin with the question and answer session. Anyone who wishes to ask a question may press star and then 1 on the touchtone telephone. If you wish to remove yourself from the question queue, you may press star and then 2. Participants are requested to use headsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. A reminder to all the participants, you may press star and 1 to ask a question. We have the first question from the line of Puneet from HSBC. Please go ahead.
Puneet (HSBC): Yeah, thank you so much and and congratulations for a well-rounded performance there on on sales and cash flows. My first question is if you can also give some sense on what is the attributable share of sales for you running now into Q2 and also for first half?
Rajendra Khetawat (Godrej Properties Ltd): 85. 85% 85% in Q2. 94 And 94% in 90 90. 90 for H1. 9-0 9-0 for H1.
Puneet (HSBC): 9-0 for H1. Okay. And how should one think about your launches for second half, more Q3 or more Q4 oriented?
Gaurav Pandey (Godrej Properties Ltd): Thanks for the question. I think this is, you know, a very exciting opportunity for both the quarters because, you know, on one hand, we have Bandra Bay, which is a very critical and important launch for Mumbai. And we have Godrej Verando, which is Golf Course Extension Road, which were planned initially for quarter 2, has slipped into quarter 3. So these will contribute very significantly to quarter 3. But then again, you know, we've got a cumulative launch pipeline of 32,000 crores for H2. So reasonably very confident that both Q3 and Q4 is going to be very exciting. Let's see how many of these launches we can pull in within the quarter 3 so that, you know, we can break the pattern and also have a very exceptional quarter 3, which currently looks is very possible. But yeah, I mean, we continue to look forward even quarter 4. So both the quarters will be hopefully
Gaurav Pandey (Godrej Properties Ltd): positive surprises.
Puneet (HSBC): And and how do you feel about approvals and and construction progress given that NCR might also get into NGT for some time and and recently we're also hearing you know issues on air quality in Mumbai as well. Can can they put a spanner in what you can launch and construct during Q3?
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