 "Godrej Properties buys plots with Rs 20K cr revenue potential this fiscal")
To expand business amid strong housing demand, realty firm Godrej Properties Ltd has acquired multiple land parcels so far this fiscal that have the potential to generate revenue of around Rs 20,000 crore.
Godrej Properties has surpassed the guidance for the 2023-24 fiscal to achieve Rs 15,000 crore worth new business development, which means adding land parcels through outright purchases and partnerships with landowners.
With the acquisition of two land parcels earlier this week, Godrej Properties Managing Director and CEO Gaurav Pandey said the company has already achieved the annual guidance of new business development of Rs 15,000 crore.
"We added new projects worth Rs 8,425 crore in the first nine months of this fiscal," Pandey said.
In the current quarter, the company has done two outright land purchases in Hyderabad and Noida, while entering into a joint venture in Bengaluru.
These three new acquisitions will help generate cumulative revenue of around Rs 11,500 crore, taking the total number to around Rs 20,000 crore so far this fiscal.
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Bullish on the growth potential of the housing segment, Pandey expects to add a few more land parcels this month for future development. The company is evaluating several proposals from landlords.
In the entire 2022-23 fiscal, Godrej Properties had acquired land parcels having a revenue potential of over Rs 32,000 crore post development.
Earlier this week, Godrej Properties bought 6.46-acre land in Noida for Rs 506 crore to develop a housing project with an estimated revenue of Rs 3,000 crore.
In a regulatory filing on Tuesday, the company informed that it has been "declared the highest bidder and has secured the allotment letter to develop a prime land parcel in Noida through an e-auction conducted by the NOIDA Authority."
The land parcel, located at Sector 44, Noida, will offer around 1.4 million (14 lakh) square feet of development potential and an estimated revenue potential.
This will be the sixth project of Godrej Properties in Noida.
On March 4, Godrej Properties said it has entered into a joint venture on a profit-sharing basis to develop a 62-acre township in Bengaluru with an estimated revenue potential of Rs 5,000 crore. Spread across 62 acres, the township project will offer around 5.6 million (56 lakh) square feet of the saleable area comprising primarily premium residential apartments.
Last month, Godrej Properties made a foray into the Hyderabad market with the outright purchase of 12.5-acre land for Rs 350 crore to build a housing project with an estimated revenue potential of Rs 3,500 crore.
Godrej Properties, which is part of the business conglomerate Godrej Group, has a major presence in Delhi-NCR, Mumbai Metropolitan Region (MMR), Bengaluru and Pune.
On an operational front, Godrej Properties' sale bookings are likely to rise 50 per cent annually to over Rs 18,000 crore this fiscal year, beating the annual guidance of Rs 14,000 crore on strong demand for its residential projects.
The real estate arm of Godrej Group sold properties worth Rs 12,232 crore in 2022-23.
In an interview with PTI last month, Godrej Properties Executive Chairperson Pirojsha Godrej said the company was hopeful of selling properties of more than Rs 5,000 crore during the January-March period of this fiscal year, repeating the performance of the previous two quarters.
Driven by robust housing demand, Godrej Properties' sale bookings rose 59 per cent during the April-December period of this fiscal to Rs 13,008 crore as against Rs 8,181 crore in the year-ago period.
On financial front, Godrej Properties reported an 11 per cent increase in consolidated net profit at Rs 62.72 crore for the December quarter. Total income rose to Rs 548.31 crore in the quarter from Rs 404.58 crore in the year-ago period.