Godrej Properties Ltd (BOM:533150) Q2 2025 Earnings Call Highlights: Record Growth and ...

GuruFocus News
4 min read

In This Article:

  • Booking Value Q2 FY25: INR5,198 crore, a 3% year-on-year growth.

  • Booking Value H1 FY25: INR13,835 crore, a 90% year-on-year growth.

  • Collection Q2 FY25: INR4,005 crore, a 68% year-on-year growth.

  • Collection H1 FY25: INR7,017 crore, a 62% year-on-year growth.

  • Operating Cash Flow Q2 FY25: INR1,834 crore, a 126% year-on-year growth.

  • Operating Cash Flow H1 FY25: INR2,822 crore, a 204% year-on-year growth.

  • Total Income Q2 FY25: INR1,343 crore, a 135% year-on-year growth.

  • Total Income H1 FY25: INR2,981 crore, a 58% year-on-year growth.

  • EBITDA Q2 FY25: INR282 crore, a 69% year-on-year growth.

  • EBITDA H1 FY25: INR1,056 crore, a 167% year-on-year growth.

  • Net Profit Q2 FY25: INR335 crore, a 402% year-on-year growth.

  • Net Profit H1 FY25: INR855 crore, a 345% year-on-year growth.

  • Project Deliveries Q2 FY25: 6.6 million square feet across three cities.

  • Project Deliveries H1 FY25: 9.3 million square feet.

  • New Projects Added YTD FY25: 10 projects with 14 million square feet saleable area.

Release Date: October 23, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

  • Godrej Properties Ltd (BOM:533150) achieved the highest Q2 and H1 collections, operating cash flows, and deliveries in its history.

  • The company has already achieved 51% of its annual bookings guidance, with a 90% growth in booking value for the first half of FY25.

  • Significant growth in key markets: NCR bookings grew 70%, Bengaluru 212%, and MMR 114% in the first half of FY25.

  • Operating cash flow for Q2 grew by 126% year-on-year, and for the first half, it grew by 204%.

  • Godrej Properties added 10 projects in FY25 with an estimated saleable area of nearly 14 million square feet and a booking value potential of about INR17,500 crore.

Negative Points

  • Concerns about potential overheating in the real estate market, particularly in land prices and final sale conditions.

  • The company faces challenges in maintaining a balance between rapid growth and sustainable land acquisition strategies.

  • There is a significant amount of cash, around INR3,000 crore, tied up under RERA regulations, affecting liquidity.

  • Potential delays in project approvals, particularly in markets like Bangalore, could impact future launches.

  • The promoter stake may fall below 50% post-fundraise, which could affect shareholder confidence.

Q & A Highlights

Q: It seems likely you will exceed your booking value guidance. What should we expect for FY26? A: Pirojsha Godrej, Executive Chairman, stated that they are on track to surpass 50% of their full-year guidance, with the second half typically being stronger. They aim to continue strong growth this year and into the next, though specific numbers will be shared later.

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