Godrej Properties Makes Strategic Land Acquisitions of Rs 21,000 CRORE to Fuel Growth

Tue, 05/21/2024 - 08:30

Author: JLL



Godrej properties, a well know name in real estate of India, has made to the headlines for a significant move in expanding its portfolio. In this year, the company has strategically acquired 10 land parcels across India and this is expected to contribute to the development of projects totalling to a mind-blowing amount of Rs 21,000 CRORE.

For the last 2023-24 fiscal, Godrej Properties had given a guidance of Rs 15,000 crore for new business development, which means acquiring land parcels through an outright basis and joint development with land owners.

Executive Chairperson Pirojsha Godrej of Godrej Properties told investors that the company will buy more land if the right possibilities presented itself and that there is no upper limit to corporate development.

"...If we see great opportunities, Rs 20,000 crore is not going to form any kind of upper cap certainly. And we have seen in past years, for example, in FY23, where I think we guided around Rs 15,000 crore and ended up doing 35,000 crore or so.

"So, certainly I would not look at this Rs 20,000 crore as an upper cap and we would hope to if we see the right opportunities, go well past this," he said.

The presentation said that of the ten land parcels bought in the fiscal year 2023–24, four are located in Delhi–NCR, two in Bengaluru and Hyderabad, and one each in Kolkata and Nagpur. These ten upcoming real estate developments are expected to equal 18.93 million square feet of saleable area.

In order to achieve a 20% increase in sales reservations, Godrej Properties intends to launch residential projects worth Rs 30,000 crore throughout major cities this fiscal year, based on the updated supply projection.

Sales bookings for the company increased by 84% to a record Rs 22,527 crore in the past fiscal year from Rs 12,232 crore the year before. As of now, no listed entity has recorded sales for FY24 that are higher than this one.

Godrej Properties intends to launch 21.9 million (219 lakh) square feet this fiscal year with an expected sales booking value of Rs 30,000 crore, according to the investor presentation.

In the fourth quarter of FY24, total income increased to Rs 1,914.82 crore from Rs 1,838.82 crore during the same period the previous year. ~

The company's net profit for the 2023–24 fiscal year climbed to Rs 725.27 crore from Rs 571.39 crore the year before.

The total income increased from Rs 3,039 crore in 2022–2023 to Rs 4,334.22 crore in FY24.

In the most recent fiscal year, the company delivered 12.5 million square feet, and by 2024–2025, it hopes to reach 15 million square feet.

In conclusion, Godrej Properties' land acquisitions in FY24 and its overall growth strategy position the company well for continued success in the Indian real estate sector. The company's focus on strong consumer demand, quality projects, and diverse geographical presence positions it as a key player to watch in the years to come.