Godrej Properties - BACKED BY STRONG LEADERSHIP

Given the split in the Godrej Group business entities, should one buy Godrej Properties Ltd.? Vishwesh Sanas explores the new scenario

- Vishwesh Sanas

Godrej Properties Limited (GPL) is a leading player in India’s residential real estate market. In 1987, it became a part of the Godrej Group and in 1989 it became a subsidiary of Godrej Industries Limited, which holds 47.34 per cent of the company’s equity share capital as of March 31, 2024. The company operates in 11 cities and the majority of its revenue comes from four regions, namely, Delhi NCR, Mumbai Metropolitan Region (MMR), Bengaluru and Pune. GPL recorded the highest booking sales by a listed entity in FY24 of ₹22,527 crore. GPL operates with an asset-light business model, entering into agreements with landowners, developing projects, and earning a certain percentage of revenue generated from these projects, rather than directly acquiring land. In the latest FY24, GPL launched 26 new projects or phases across seven cities.

Financials

Godrej Properties Ltd. reported the highest-ever yearly sales of ₹4,362 crore for FY24, displaying a staggering growth of 45 per cent from the previous year. Whereas, the net profit generated by the company stood at ₹725 crore, demonstrating a 27 per cent YoY increase. The company also registered the highest-ever annual collection and net operating cash flow of ₹11,436 crore and ₹4,334 crore in FY24, respectively.

Q4FY24 Result

In Q4FY24, the company recorded the highest quarterly sales for three consecutive quarters. The quarterly sales stood at ₹1,930 crore. The quarterly net profit on a YOY basis increased 14 per cent to ₹471 crore. Looking at the region-wise breakdown of the quarterly revenue, NCR accounted for 44.46 per cent of the sales, followed by MMR at 29.05 per cent, Pune at 11.92 per cent, Bengaluru at 10.92 per cent, and other regions at 3.64 per cent.