 "Pirojsha Godrej")
Godrej Properties, the real estate arm of the Godrej Group, hopes to become the number one property developer in the country, in terms of total booking value, said a top executive of the company.
Normally, real estate companies record the bookings done by customers as sales in their books after 25 per cent of the construction cost of the project is incurred. Godrej Properties, set up in 1990, has already overtaken DLF, the largest developer by sales, in terms of amount booked in the first half of the current financial year. Godrej has seen a booking value of Rs 3,208 crore in H1 of FY 2016, against Rs 1,610 crore booked by DLF.
In H1 FY 2016, Godrej Properties, led by the 34-year-old Godrej family scion Pirojsha Godrej, has already crossed the amount booked by it in the whole of FY15. It booked value of Rs 2,681 crore in FY 2015. DLF's total booking value was Rs 3,850 core in the last financial year. The company's booking value has grown by 28 per cent compound annual growth rate (CAGR) in the last decade, the company said in its last investor presentation.
"We have been able to get great bookings due to excellent brand, good products offered at right value and strong delivery record across markets. We have already seen the highest bookings in the first half of the current financial year," said Mohit Malhotra, executive director at Godrej Properties.
Though area sold by it, in terms of square feet, has gone down by 10 per cent year-on-year in Q2 of FY16, the booking value went up 122 per cent, according to the latest presentation of the company. When asked about the company becoming number one in terms of sales, Malhotra said, "Bookings to reflect in revenues may take some time because there is a lag effect of two to three years between bookings and revenue being reflected."
Malhotra said the company was also getting enquiries from overseas. It has offices in West Asia and Singapore. "We are also getting enquiries through overseas offices of Godrej Consumer Products," he said. The company is hopeful of maintaining the booking momentum in the second half of the current financial year. Recently, it sold over 300 apartments worth about Rs 800 crore in its flagship project 'The Trees' in Vikhroli area of Mumbai.
Analysts also endorse the business strategy of Godrej Properties. "They are making the best use of Godrej brand. After 2013, the way they are doing business has improved a lot," said Samar Sarda, an analyst with Kotak Securities.
| TAKING A LEAF OUT OF GODREJ'S BOOK |
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