Q1 2027 Godrej Properties Ltd Earnings Call Transcript
Key Points
- Godrej Properties Ltd (BOM:533150) achieved a booking value of INR8,651 crore in Q1 FY27, a 22% year-on-year growth, marking the sixth consecutive quarter above INR7,000 crore.
- The company reported strong demand from new project launches, including Godrej Varantra (INR3,237 crore sales) and Godrej Samaris (INR1,248 crore sales), with Bengaluru leading contributions at 44%.
- Business development was robust, adding three new projects with an estimated saleable area of 8 million square feet and expected booking value of INR9,500 crore, achieving 48% of the annual guidance in Q1.
- Management remains confident in delivering 13.5 million square feet of deliveries for the full year and achieving a 20% ROE in FY28, supported by a strong launch pipeline and balance sheet.
- The company maintains a disciplined approach to sales quality, with cost of sales at approximately 4% in Q1, and is seeing encouraging signs of cost stabilization, including a 12% reduction in steel prices.
- Operating cash flow in Q1 declined by 58% to INR399 crore, impacted by a 41% year-on-year increase in direct construction spend, though management expects a significant improvement to INR9,000 crore for the full year.
- Total income declined by 16% to INR1,337 crore, EBITDA fell by 40% to INR545 crore, and net profit dropped by 42% to INR350 crore due to only one project completion in the quarter.
- The company faces potential risks from project delays and cost overruns, particularly in NCR where NGT bans and other regulatory issues could impact delivery timelines for FY28.
- There is ongoing cost inflation in certain materials like aluminum, and tile availability issues were a challenge between April and May, though supply-side constraints are gradually resolving.
- Management acknowledged that the Middle East crisis has caused a structural shift in NRI buyer behavior, particularly from the Middle East, which remains an early-stage trend and could introduce demand uncertainty.
Ladies and gentlemen, good day and welcome to Godrej Properties Q1 FY 2027 earnings conference call. (Operator Instructions) Please note that this conference is being recorded.
I now hand the conference over to Mr. Kshitij Jain from Investor Relations. Thank you, and over to you, sir.
Thank you, Sagar. Good afternoon, everyone, and thank you for joining us on Godrej Properties Q1 FY 2027 Results Conference Call. We have with us Mr. Pirojsha Godrej, Executive Chairperson; Gaurav Pandey, Managing Director and CEO; and Mr. Rajendra Khetawat, CFO of the company.
Before we begin this call, I would like to point out that some statements made in today's call may be forward-looking in nature. The forward-looking statements are based on expectations and may involve this. The outcome may differ materially from those suggested by such statements and a disclaimer to this effect has been included in the results presentation.
I would now like to invite Mr. Pirojsha Godrej to make his
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