Sales weak in Q1; will meet Rs 14k cr target in FY24: Godrej Prop chairman

Realty firm Godrej Properties' sales performance remained muted in April-June, but the company will meet the annual target to sell properties worth Rs 14,000 crore this fiscal as housing demand continues to be strong, its Executive Chairman Pirojsha Godrej said.

Its sales bookings fell 11 per cent year-on-year during the first quarter of the 2023-24 fiscal to Rs 2,254 crore.

In an interview with PTI, Pirojsha Godrej said: "In terms of sales bookings, April-June was a weak quarter for us. But in deliveries, it was strong as we did nearly 5 million square feet area. Our annual guidance for deliveries is 12.5 million square feet".

He exuded confidence in achieving "healthy growth" in sales bookings during the remaining three quarters.

Pirojsha said the company would achieve or even better the annual sales guidance of Rs 14,000 crore in 2023-24 against Rs 12,232 crore in the previous fiscal.

The company launched very few residential projects during the first quarter of 2023-24 and the bulk of bookings came from the ongoing projects.

The pipeline of new launches is "very strong", he said, adding that the company would soon launch a housing project in Noida.

Asked about the upcoming big-ticket project in Ashok Vihar, Delhi, Pirojsha said, "We are hopeful of launching this project in the third quarter of this fiscal".

Earlier, the company had said it targets to generate sales revenue of more than Rs 8,000 crore from the Ashok Vihar residential project.

Of the total sale bookings of Rs 2,254 crore in April-June, the company registered a booking value of Rs 656 crore in the Mumbai Metropolitan Region (MMR), Rs 548 crore in Delhi-NCR, Rs 509 crore in Bengaluru and Rs 446 crore in Pune.

On the financial performance front, the company recently reported a nearly three-fold jump in consolidated net profit to Rs 124.94 crore for the first quarter of this fiscal as against Rs 45.55 crore in the year-ago period.

Its total income rose to Rs 1,265.98 crore in April-June 2023-24 from Rs 426.40 crore in the corresponding period of the previous year.

Godrej Properties, a part of the business conglomerate Godrej Group, is one of the leading real estate developers in the country.