Godrej Properties' shares surged over 2% on October 7. This increase follows the company's impressive report of ₹5,200 crore in bookings for Q2 FY25, attributed to the sale of 5.1 million square feet of residential properties. The strong performance highlights the growing interest in share market investment within the real estate sector.
Strong sales driven by demand
The substantial sales figures can be linked to the strong demand resulting from new project launches in both the NCR or National Capital Region and the MMR or Mumbai Metropolitan Region. Godrej Properties also reported a remarkable operating cash flow of ₹1,800 crore for the quarter, which represents a staggering 120% year-on-year increase.
Impressive first-half performance
In the first half of the current fiscal year, Godrej Properties recorded a significant 89% year-on-year rise in bookings, amounting to ₹13,800 crore. This figure constitutes nearly half of the company's total booking guidance for the entire fiscal year and surpasses the bookings recorded in FY23. The company successfully sold 8,600 homes, covering a total area of 14 million square feet.
Notable project highlights
Among its notable projects, Godrej Vrikshya in NCR achieved bookings worth ₹1,500 crore during the quarter. Additionally, the plotted development project, Godrej Woodside Estate in MMR, garnered over ₹600 crore in bookings. Overall collections for the July to September quarter were 68% higher, reaching ₹4,000 crore. Over the half-year period, collections increased by 62%, totalling ₹7,000 crore, marking 47% of the company's annual collection guidance for FY25.
Expansion plans and prospects
Godrej Properties has added eight new projects this fiscal year, providing a total saleable area of 11 million square feet with a booking potential of ₹12,650 crore. Six of these projects were added in the second quarter alone, generating a booking value of ₹9,650 crore. This achievement positions the company at 63% of its annual booking guidance.
Managing Director and CEO Gaurav Pandey expressed confidence in the company's future, noting that the recent project additions ensure a robust pipeline of launches for both the current year and beyond. He also announced the company's recent entry into the Indore market, anticipating its first launch in the city.
Market performance
As of 9:18 am, shares of Godrej Properties were trading 2% higher at ₹2,959.80 on the National Stock Exchange (NSE). The stock has increased by approximately 47% this year, significantly outperforming the benchmark Nifty's returns of 15%. Over the past 12 months, Godrej Properties shares have soared more than 81%, in contrast to Nifty’s gain of around 28%.
Key takeaways
Overall, the results reflect a positive trend for those considering share market investment in the real estate sector.
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