Ladies and gentlemen, good day, and welcome to the Godrej Properties Limited Q2 FY 2025 earnings conference call. As a reminder, all participant lines will be in the listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star then zero on your touchtone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Kshitij Jain. Thank you, and over to you, Mr. Jain.
Thank you. Good afternoon, everyone, and thank you for joining us on Godrej Properties Q2 FY 2025 results conference call. We have with us Mr. Pirojsha Godrej, Executive Chairperson, Mr. 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, and a disclaimer to this effect has been included in the results presentation. I would now like to invite Mr. Godrej to make his opening remarks. Over to you, sir.
Good afternoon, everyone. Thank you for joining us for Godrej Properties' first quarter financial year 2025 conference call. I'll begin by discussing the highlights of the quarter, and we then look forward to taking your questions and suggestions. The residential real estate sector in India has been strong over the past few years, and we believe the sectoral tailwinds will continue over the next few years. The significant levels of business development we've executed in previous years at favorable terms continue to allow us to scale our bookings and margins, which in turn will lead to strong earnings growth in the years ahead. I'm happy to share that Godrej Properties delivered another robust quarter, registering our highest Q2 and H1 collections, operating cash flows, and deliveries. We've already achieved 51% of our annual bookings guidance.
In the past five financial years, GPL has averaged 37% of its full year bookings in the first half of the financial year, and in the best out of the last five years, we achieved 40% of our full year bookings in the first half. Booking value in second quarter FY 2025 grew 3% year-on-year to INR 5,198 crore from sales of 5.15 million sq ft of area, and booking values for the first half grew 90% to INR 13,835 crore from the sale of 14.14 million sq ft of area, which is a growth of 89% in volume terms. This strong growth can be attributed to an extremely strong customer response from our new launches during the quarter.
Godrej Vriksha in NCR delivered a booking value of just under INR 1,500 crore, and Godrej Woodside Estate in MMR, a plotted development project, delivered a booking value of just over INR 600 crore. For the first half of financial year 2025, our bookings in our key markets of NCR, Bengaluru, and MMR have shown tremendous growth. In NCR, we grew 70% to INR 5,424 crore. In Bengaluru, we grew 212% to INR 3,889 crore, and in MMR, we grew 114% to INR 3,113 crore. With bookings growth of 66% in financial year 2023, 84% in financial year 2024, and 90% in first half of financial year 2025, GPL has reset its scale.
The benefit of this is clearly visible in our cash flows, with collections growth of 68% and operating cash flow growth of 125% in the second quarter. GPL's collections stood at INR 4,005 crore for the second quarter of financial year 2025, a year-on-year growth of 68%, and INR 7,017 crore for the first half, a year-on-year growth of 62%. Operating cash flows for this, INR 1,834 crore for the second quarter, growing at 126%, and INR 2,822 crore for the first half, growing at 204%. This is the highest ever second quarter and first half collections and operating cash flow achieved by Godrej Properties.
From a business development perspective, I'm happy to announce that Godrej Properties has added ten projects in year-to-date financial year 2025, with a total estimated saleable area of nearly 14 million sq ft and total estimated booking value potential of about INR 17,500 crore. This includes six new projects with an expected booking value of INR 9,660 crore in the second quarter, and two new projects with an expected booking value of INR 4,800 crore added in October. GPL has achieved 87% of its annual guidance for business development year to date. We have also entered the new micro market of Indore through a plotted development project. We delivered projects aggregating to 6.6 million sq ft across three cities in the second quarter, taking year-to-date total for deliveries to 9.3 million sq ft.
This is the highest second quarter and first half deliveries for GPL. For the second quarter, our total income increased by 135% to INR 1,343 crore. EBITDA increased by 69% to INR 282 crore, and net profit increased by 402% to INR 335 crore. For the first half, our total income increased by 58% to INR 2,981 crore. EBITDA increased by 167% to INR 1,056 crore, and net profit increased by 345% to INR 855 crore, surpassing earnings for full year financial 2024.
We've started financial year 2025 on a strong note and hope to build on this momentum through the launch of a large number of exciting new projects, combined with strong customer sales. We also expect to deliver a record year from the point of view of cash flow and earnings. On that point, on that note, I conclude my remarks. Thank you all for joining us on the call. We'll now be happy to discuss any questions, comments, or suggestions you may have.
Thank you. We will now begin the question- and- answer session. Anyone who wishes to ask a question may press star and one on their touch-tone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Puneet Gulati from HSBC. Please go ahead.
Yeah, thank you so much, and congratulations on great numbers here. My first question is: It looks very, very likely that you will exceed your booking value guidance. What should we assume that you'll be aiming for in FY 2026?
Thanks, Puneet. Yes, I think we're on track to do well on the bookings front. We've already surpassed 50% of full year guidance, and typically, the second half is significantly stronger than the first half, both for seasonality reasons and otherwise. You know, I think the goal will be to do as well as we can this year, and then continue to deliver strong growth from that in the year ahead. So, you know, without getting into specific numbers, which we'll comment on towards the end of the year, I think given the portfolio we've built, given current visibility on how the market is doing, I think we're all set for another exceptionally strong year of sales growth this year, and we'll look to build on that with strong growth next year as well.
Okay. And secondly, in terms of pricing, what are the trends that you're seeing in terms of pricing growth in your market? And given the realization that you've discovered, how high are they on an average compared to the pricing that you would have underwritten it?
Thanks for the question, Gaurav, yeah. Okay, essentially what we've noticed right now that there is strong price growth in, especially markets like NCR and Bangalore. In fact, if I would just sort of give you a price stack of order, Gurgaon is seeing, very robust price growth, over the last two years, but it continued even this year. Next would be Bangalore, then would be Noida. And I would say, finally, after we noticed Godrej Reserve launch in Mumbai, which is the largest, residential sales by any developer, it's kind of also reignited Bombay in terms of its momentum. So we are also seeing early days of good price growth in Bombay, in our portfolio and also overall in the market.
Pune is yet to see, pricing, relative kick-off when I compare with other markets, but these are sort of the stronger markets. More from a, you know, forward-looking, sort of, growth. Difficult to finally crystal gaze, but if you generally look at, the demand and supply hold, you know, you can kind of derive certain estimates. So Noida, you know, as you would appreciate, land supply is heavily restricted, and there is complete lack of, say, for example, CBHT inventory. I would say that Noida, in the near term, should logically see price growth action. In Gurgaon, if I were to say, I think periphery markets may not see as much of a price action, but Golf Course Road specifically should see price action because there is virtually no land supply, and finally some launches will be visible in the, coming quarters.
Bangalore I think is one of the strongest markets because the quality of land supply is limited because there are title issues with Bangalore. So whichever projects will hit the market would be reasonable growth may not be as massive what we were seeing say in the preceding two years. But to some extent I would say maybe high single digit kind of numbers should be visible in the next 6 months- 12 months. Bombay I'm quite bullish personally on because this market is seeing good offtake and also pricing growth very recently. And Pune I would say may not be immediate as much but say two to three quarters because Pune tends to be a lag to Bombay.
And if you see, Pune, from a demographic point, is very similar to what Bangalore is, so it's not taken off from pricing, so, it's been a sort of a laggard, but give or take two to three quarters, we should see price growth there as well.
In terms of compared to the prices at which you have underwritten, how high are the realizations here?
I think, you know, I think one of the interesting things we managed to do is to do consistent, you know, business development in the last two years. And, purely because of the cycle benefit, we've been able to enjoy significant price expansion. To give you some sort of, you know, broad understanding, you know, to give an example, Sector 146 Noida, the two options that we had bought about 20 months-24 months back, you know, we first launched the first phase last September. Practically managed to sell it out in three months- four months. In fact, the launch quarter itself was 2,200 crores, and we saw close to about, you know, 10%-12% or thereabout above our underwriting level, but the residual inventory also saw price growth.
But the second one that we launched, which was previous quarter, saw again, price bump. So, so essentially, most projects, what we are noticing, the market is giving you options. As a rule of thumb, we tend to either ensure at least that price expansion we do, or it can be higher, which means that ballpark, 10%-15% from an underwriting. In most of the parts of the portfolio, we've seen, of course, there are some projects we've seen even much higher price growth... and there have been some projects which could be something slightly lower than this, but ballpark, if you ask me, 20%-15% over underwriting is what we've kind of consistently been able to achieve.
Understood, and secondly, on the construction cash flow side, while your collections have gone up, construction outflow hasn't really gone up as much. Should we assume a significant bump up coming in the second half of this fiscal?
I think, you know, as you would appreciate that, you know, typically construction is more, you know, the key cost of construction happens to be mostly on the mid stage and advance. Because initially, your maximum cost is about, you know, excavation, then, some of these, especially the NCR sites, you have these piling that has to be done, which is quite time consuming, but no, as far as capital intensive. And your construction speed will significantly accelerate when you start hitting slabs beyond a typical cycle, basically second, third, fourth slab onwards. That's when your construction tends to pick up. So yes, you're right, we will see some kind of an escalation in COC, especially in the later part of the year.
But, you know, as you would see that most of our projects are. We had a very strong H1, and some of these COC expenses in terms of fees should be noticeable towards mid part of next year, so starting from later part of the year, continue through the mid part of next year, you should see growth in COC curve. But, you know, there is like finishing where the cost tends to be higher than core and shell. There are costs like MEP, which is also relatively higher than core and shell, and core and shell usually is higher than excavation. There's always a sort of a COC lag, you know, in terms of cash flow, net cash flow line.
Right. Understood. That's helpful. And lastly, if you can share your share of sales, booking value in the overall pre-sales?
I think it's probably shared about 90%.
First half of this financial year is around 93%.
93%.
93%. Okay, that's helpful. Thank you so much, and all the best.
Thank you.
Thank you. The next question is from the line of Mohit Agarwal from IIFL Securities. Please go ahead.
Yeah, thanks for the opportunity, and, congratulations on great set of numbers. So firstly, if you could, you know, touch base on the launch side, you've already done nearly 50% of your guidance, so, and typically, second half is stronger, just like pre-sales. So if you could kind of tell us how do you see the second half, and will you beat your guidance there as well? And what would be the big projects that you are looking at in the second half?
Yeah, I think, you know, our guidance, both on launches and sales, always has some amount of buffers for projects skipping out for regulatory approval reasons, et cetera. So I think we are quite hopeful of surpassing our guidance on both counts. And the launch portfolio, I think both for Q3 and Q4, looks very full and exciting. Some of the big projects we hope to launch before the end of the year are the projects in Worli. We have a couple of projects coming on Golf Course Road in Gurgaon. We have a large project in Sector 44 in Noida. Two or three launches planned in Bangalore. Quite a few launches in Pune, and also some in places like Kolkata and Hyderabad.
So overall, I think a pretty robust launch calendar that I think gives us good confidence that we will see a very strong second half of the year from a sales perspective.
Pirojsha, [Worli] would be 3 Q or 4 Q, if you could specify?
I think, like, quarter four.
Quarter four. My second question is, on, you know, you've been acquiring land, and that strategy has been working well. And it is imperative for us to replenish the sales and to grow. But assuming that, you know, land prices have gone sharply up, and probably we are somewhere near the peak, let's say, what kind of margin of safety do you want to build in your future land acquisitions in terms of margins? If you could kind of elaborate that strategy, because if, let's say, the pricing growth stunts or kind of declines, what kind of margin of safety do we have when we are underwriting the project?
Yeah, look, it's a great question, and clearly, we're not at the exact same phase of the cycle now than we were three or four years ago. But at the same time, I think, you know, if you look at a typical cycle length in India, it has been seven to nine years. We're probably in year four of that, so we actually do think the cycle likely has three or four more years left in it. But I think the land values have gone up in Mumbai, and to some extent kept pace with end property prices. So we do have to be very, you know, very disciplined in terms of our land acquisition strategy.
I think what we look at is that at today's price, not at any kind of price inflation or, you know, if market continues to do well, because if we were selling the project today, and using that price, can we achieve an IRR of at least 20%-25% in the project? And we think if that is achievable, then that's a project that makes sense to do. We don't look at, you know, assuming big price increases or anything when we're underwriting projects. I think the good news is, you know, we are seeing a lot of opportunities that are meeting this threshold.
There, you know, across regions, if you look at the kind of number of deals we've done last year, and of course, if we raised any capital, the idea would be to deploy that into other new deals. We are seeing a lot of opportunities that do meet this threshold still, but I think the IRR threshold of 20%-25% is what we look at. Because from a margin perspective, you know, we've guided that we'd like a 25%-30% kind of EBITDA margin.
Perfect, that's clear. Just one last question. You've done 17,000 crores kind of a BD, so include the post second quarter acquisitions as well. What would be the total land spend on that, and how much of that land payment would be pending, which would come in future quarters?
That land payment has been done in the month of October, so both inclusive of both would be around INR 1,000 crores.
This is the pending land payment, sir?
No. So this is for the two deals which we have announced post quarter end, that is INR 1,000 crores. And the pending land payment for the earlier deals would be around INR 1,500 crores for the deals which we have signed in financial year 2025.
Sir, what would be the total land spend that would be in the range of 15%-20%?
Yes.
GDM? Okay, thank you, sir. That's all from my side.
Thank you.
Thank you.
The next question is from the line of Praveen Choudhary from Morgan Stanley. Please go ahead.
Thank you so much, and congratulations, very, very exceptional numbers out there. I just wanted to get a sense of any overheating you are seeing in the market, and Gaurav, you went through the entire spectrum of pricing trends. It seems like everything is comfortable, but to the extent that, what are you looking for in terms of any overheating or concerns in the market, either in the land price or in the final sale conditions, that would be helpful. Thank you.
Thanks, Praveen. Largely, if you were to ask me, I see a very strong demand uptake. In fact, yes, you're right, there is some chatter in there that we do tend to read. But if you ask me, purely from a ground position, we are seeing quite standard numbers for ourselves. And early days, but even October, you would have seen some media articles of some competition also showing equally strong numbers. We, in fact, had a very good H1, not just from a growth point of view, but, you know, far higher performance than our underwriting. Now, there is, of course, a degree of market, you know, overperformance will differ between what we thought two years back now from pricing and volume action. And within cities, I feel there will be sort of an evolution.
So if I were to just give you some sort of a broad case, I think, I think mentioned sometime back, you know, periphery micro markets of Gurgaon is seeing good land supply. So you, we may see a volume action, but I think there will be sort of a price saturation sooner than later. But, you know, central Gurgaon doesn't really have any land supply, barring, very handful of, you know, land parcels, even with the government or maybe one of peer. So that should see, you know, pricing action. Noida is practically, I already mentioned, you know, it's been a clear supply-side issue from a launch perspective by anyone. So anything that is hitting the market is sold, selling or very fast. I've already mentioned Bombay and the market.
So I think, chatter aside, if you just see what's happening on the ground and walk-ins, in fact, while the festive season has just started and, you know, we are somewhere between Dussehra and Diwali, and November usually is a higher momentum in my sort of history of launches that I've seen. But October is showing very encouraging signs, both by, you know, the kind of walk-ins we are seeing in our sites, as well as sort of we hear from the market. So, quite excited and quite strong market.
Very, very clear. Thank you so much. And then one last question from me would be, you know, when I look at the annual sale in terms of GFA, versus the land bank that you have, and I assume, let's say, 20% growth per annum, you may have five years' worth of land bank. Is that the right way to think about it when you are going to use your cash to replenish the land bank, or do you want to have a longer land bank or a shorter land bank? Just wanted to get that sense. Thank you.
Yeah, I think in the short term, first of all, you know, I think growth rates have been over the last couple of years, much faster than that 20%. Through cycle, we do think 20% is the number we'd like to guide to. I think there is an opportunity clearly in near term to do better than that. We've seen both last year and this year, very rapid growth rate. So we think it's probably going to be quite a bit less than five years' sales, and therefore, kind of replenishment is perhaps more important than it looks if you look at the 20% growth rate.
Understood. Thank you, Purush, and again, congratulations. Very, very strong result.
Thanks so much, Praveen.
Thank you. The next question is from the line of Pritesh Seth from Axis Capital. Please go ahead.
Yeah, thanks for the opportunity, and congrats on, you know, great set of numbers. Firstly, again, on, you know, the market environment, on the absorption side, we know since you have had, like, couple of successful launches this quarter, you know, how you read that, versus, what it was probably six months or a year back, you know, when, where projects were literally getting sold out during launch. We still have a healthy, absorption rate of 60%-80% inventory getting sold out, but, you know, how you read that? It is... Is it, you know, general, supply side, which is creating, you know, that kind of absorption run rate? Or you think that certain ticket sizes are, you know, going a bit higher, and hence we are seeing some bit of cooling off in terms of the front sale? So just a comment on that.
I don't think we are seeing any cooling off in our view, and, you know, there's, of course, it was even six, eight months ago, it's not that 100% of projects were launching to sell out. So our view is the market remains very strong. We're quite confident several of our launches during the rest of the year will see close to sell out kind of responses. So I actually, going on to what there is a little bit of chatter, actually, somewhere like just now about market cooling off. I don't think what we're seeing on the sales side is really indicating that at all to us yet, at least. And we remain quite bullish both in the very near term and medium term on the opportunity to continue this kind of trajectory.
Sure. And, secondly, on, you know, the approval side of, the business, you know, have things started to recover, in terms of timelines that, you know, used to take in terms of getting approvals? Because in between, like, post-elections, we saw some bit of slowdown, but have things picked up from there on, or it's still, you know, as normal as it was, you know, before the elections?
I don't think we've really had much of a struggle. Of course, sometimes projects are projects that can be an issue, but I don't think elections had any huge impact on us. If you look at the first quarter, which was actually in the middle of the elections, we had our best ever start to the year. And, you know, sales have grown 90% largely on the back of a lot of launches coming in after getting the regulatory approval. So I think from an approvals and portfolio available for launch perspective, I think we're reasonably confident that the second half will be a very strong period.
And just to build upon that, you know, Pritesh, you see our pipeline within, and this quarter example, you know, places like, you know, Haryana, we've got the approval, right? Then we have projects in Mumbai and Pune, we've got the approval. So, you know, I think what probably a learning separately for us over the, over the last three years is that these are predictable events in, in your sort of an year, and you almost know during the survey which quarter would be a likely time where approvals could get struggled, is how do you become more internally efficient so that you ensure that you can apply for approvals at the earliest possible? I think this is sort of a process change we've done internally, which is kind of ensuring that to the large extent, we are able to mitigate this risk.
Sure. Got it. And just lastly, you know, on the capital raise, you know, in terms of deployment, how much time you will take to deploy that? And second, you know, while we probably reach INR 30,000 crores+ pre-sales, you know, what kind of market-wide target do we internally think, you know, that we can generate for all our individual markets? Like NCR, we were at INR 10,000 crores last year. You know, do we have... Are we working on some market-wide targets, you know, for other key markets of ours?
I think, you know, we of course do have city by city and targets for each area. But it's not something which we necessarily want to guide towards at this stage. I think NCR hitting INR 10,000 crores last year was fantastic. You know, on that high base, in the first half, they've been able to grow 30% and have a bunch of launches planned in the second half. So hopefully, we'll do even better than that this year. And of course, I think there's a healthy degree of competition internally between each of the zones, which are relatively separately managed. So we hope to see all our zones crossing this INR 10,000 crores mark fairly soon.
And, you know, I think we have a portfolio that can get us there in places like Mumbai and the South zone, which is Bangalore, but also now Hyderabad, where we're hoping to launch a couple of projects this year. So, you know, I think good opportunities for growth and scale in each of these markets, and I think the sort of medium-term goal would be to establish ourselves as a leader in each of the individual markets, in addition to kind of nationally.
Sure. Sure, that's, that's helpful. That's it from my side, and all the best.
Thank you.
Thank you. The next question is from the line of Abhinav Sinha from Jefferies India. Please go ahead.
Hi, so congratulations to the team on strong numbers. First question is on with the, you know, future pipeline of new projects that we are looking at, are we targeting the same, you know, sort of micro markets and the overall market, or you are looking to expand into newer cities?
So I think the goal is very much to expand within the cities that we're already in. So from a group housing perspective, that would be largely Mumbai, NCR, Bangalore, Pune. We're open to opportunistically adding projects in Ahmedabad and Kolkata. Just earlier this week, we added a project for the first time in many years in Ahmedabad. In Q4, we entered the Hyderabad market, where we bought two pieces of land. We hope to launch both of those this financial year. We'd first like to just get those launched, make sure everything we underwrote is kind of playing out as expected, and then I'd indeed expect to look to scale in the Hyderabad market as well. But these five cities of Mumbai, NCR, Bangalore, Pune, and Hyderabad are where we'd like to make a lot of our investments on the group housing side.
Of course, within these markets, I think one of the opportunities is to make sure we are present in as many different micro markets as possible, so that we're capturing as much of the city level demand as we can, and the only exception to this is plotted development projects, where we are open to a wider range of cities.
Right. Secondly, on, you know, I also see that some of your commercial investments have sort of reached, you know, the maturity level. Any thoughts on how we monetize that or, you know, you're looking to sort of hold on to those assets?
Yeah, I think the idea is to gradually build a deal-generating portfolio for the business. I think while the lion's share of our focus for the next few years remains very much on the residential sector, where we think both the overall size of prize is greatest, our right to win is probably highest, and the returns that can be generated, we think, are the best because of the ability to have customers financing most of the development. But at the same time, for kind of the longer term, we do want to gradually build an income-generating portfolio for the company, and I, I think these projects help do that. So there's no, no plans to sell them or exit them, if that's the question.
Right. And, one last question on cash flow. So, you know, we are seeing higher margins in the project and also higher take rates, which are now, you know, north of 90%. So, our sort of OCF percentage cash flow, which is now around, you know, I think around 35% odd. Where does it settle in, say, a couple of years?
Yes. Most probably, yes.
So I think like the [audio distortion].
From a margin perspective, I think what we've guided to Ravina is on the net profit margin. We'd like to deliver something about 15% through cycle. Of course, it might go a bit higher than that when some of these projects have seen a lot of margin expansion in revenue recognition. But I think that's kind of roughly what we're targeting. I think the OCF margin is, you know, a good shorthand thing to look at, but it's not something that we're targeting a specific margin. It actually can vary quite a bit depending on construction milestones in particular projects. And so I think the kind of reported earnings margins we're looking at is what I indicated.
We're seeing, I think, you know, very, very healthy growth in collections and operating cash flow. We expect to grow another well.
Okay, thanks and all the best.
Thank you.
Thank you. Next question is from the line of Parikshit Kandpal from HDFC Securities. Please go ahead. Mr. Parikshit, your line has been unmuted. Please go ahead with your question.
Yeah, hi, team. Congratulations on a great quarter. My question is on the launches. If you can help us understand, when is the Ashok Vihar launch now? And also, if you can give some more color on the Vikhroli land parcel after the family settlement, how do we see it? The new launches will happen there, and what are the timelines of launches for the Vikhroli land parcel?
Yes, so in Vikhroli, we have a project that we launched a few months ago, so I think focus for the next few months will be on selling that project. I would be hopeful that next financial year we can have a new launch in Vikhroli. And Ashok Vihar is also now looking like a next financial year launch.
Okay. The second question is on the fundraise, which you have taken, the resolution. So as I see the MMR portfolio, so last year's sales, which we had done, average realization of about 16,000 , maybe on carpet, 24,000-25,000 . So, so we are really not there on the premium end of the MMR, which is really large, and where the brand you can have a larger market share. So, so how do we intend to plug that gap and the premiumization of the MMR portfolio? Because that is what will give us bigger margins.
So if you can give some more color on this fundraise and how do you intend to deploy it, are you looking to underwrite large land parcels, some like 50 acres- 60 acres kind of land parcels, where we can have a maybe 10-year- 11-year kind of a development which can be premiumized? So if you can give some color on that, that would be helpful.
So, first of all, I think in MMR, there's already been quite a bit of premiumization of the, the portfolio. We have existing projects currently in the market. You know, in somewhere like Mahalaxmi, we will later this year be launching our new projects. We have a project on Carmichael Road. So there are several kind of premium projects that hopefully come to market soon, including a Bandra project that we should hope to bring to market next year. But I think the, the opportunity is, you know, across price points. I think something like our launch was in Reserve, that Gaurav was talking about earlier, when we launched in quarter of last year, you know, sold really well and is a, you know, very attractive project, both from a total care perspective as well as margins.
So I think we have, I think, struck an interesting price point in Bombay. Our goal isn't to do only luxury developments, which have their own drawbacks. So, you know, while the margin might be attractive in some cases, I think that is not necessarily the end of price segments that we're most attracted to. But I think the visibility for Bombay residential development looks very strong, and we certainly hope to deploy a considerable part of the money we raise into our Mumbai portfolio.
You know, if you see relative to our average price per square feet, I'm seeing more at a portfolio level. Because portfolio is an average of, you know, markets like Pune, Bangalore, NCR, and of course, Bombay. I would say portfolio average price would be much higher for Mumbai portfolio per se, because, you know, the typical presence that we have, if you see, especially in the last eighteen months, we've had a lot of projects, apart from acquisition added. You know, say, projects like Wadala, we have something. In Bhandup, we have, you know, Vistas in Pune. All of these are significantly premium projects from a pricing point of view.
It's not only my, my point was more from, like, larger land parcels which may come up for auction or bidding, that's why some of the peers are raising large capital. So are we open to underwrite large, like, thousand crores or fifteen or hundred crores kind of single land parcels? So which can give, like, a higher economic interest as well as long-term development potential. Because it's hard to get land parcels, larger land parcels in Mumbai, there is limited window and since we are raising capital from more. So my question is more from.
I could say that there is no reason we won't really participate in, you know, from the angle, not actually point it from the perspective, I think definitely we'll participate. And I think one of the unique strengths we are having over competition, especially in markets we are present, is our ability to sign check sizes INR 500 crores-INR 1,000 crores or even beyond if we see the opportunity is right. So of course we'll do that. The only thing I'll say, Prashant, is our length of doing this may not necessarily be what sometimes, you know, from a check size for competition, because you say land banking, unless we are very, very certain about the strategy, we prefer to be more about capital churn, play. Having said that, we would of course evaluate any and every opportunity.
But yes, we can sign big checks. Yes, we would love to, you know, scale up the Bombay portfolio significantly beyond what it is delivering. But the approach would be more about, you know, how quickly can we turn on these projects and make as much of efficient use of capital.
Okay.
Does that answer your question?
Yeah, yeah. So one question to Rajendra. So Rajendra, you touched upon that INR 1,000 crores spending from the BB done in Q3 and INR 1,500 crores for the rest of the [audio distortion] s o entire land payments, financial year to date for all the land parcel, the pending land, land payments will be about INR 2,500 crores?
Yes, INR 2,500 crores-INR 3,000 crores, including Ashok Vihar and other stuff.
Okay. And just last and finally, so how has been the approvals in Bangalore? We have been hearing there has been significant delay in approvals in Bangalore. So if you can, Gaurav, if you can touch upon that, whether the approvals are coming in or things have normalized now.
I think for us, it's been coming quite consistently. You know, I mean, approvals in India has been a bit of a struggle, typically from last five years. So I won't say any market is easy or difficult relative to the trend. But, you know, we see our projects, like in Pune, we were able to bring, you know, good estates into the market, which turns out to be INR 8,150 crores, was still the highest for us. And similarly, you know, we've been able to see for this quarter, approvals are on track. But, you know, Prashant, it's not, very frankly, geography specific, the challenge.
For us, it's more like a sort of a constraint which we see, and the best one can do is to ensure that, like I was mentioning, ensure that your design processes are very efficient. But that seems peculiar to Bangalore for us, at least.
Okay. Thank you, team. Thanks for the answers, and appreciate it.
Thanks.
Thank you. The next question is from the line of Kunal Lakhan from CLSA. Please go ahead.
Yeah, hi. Good evening. Thanks for taking my question. Just on the fundraise, you know, currently, your promoter stake is about, about fifty odd %. And, post this fundraise, it could go below 50% or 47 %. So what's the long-term view on, you know, maintaining the promoter stake at?
Yeah, thanks, Kunal. I think, you know, we would of course not like to dilute much below the levels that we'll be at post the fundraise, if we did go ahead with that. So I think the idea would be, again, to give a huge boost to growth. We think the kind of collections that will be generated, both from the sales that have already happened, but the sales that we'll also be locking in through this new round of deployment, will be frankly quite massive and will allow us to do a lot through our operating cash flow. We don't see any further reason for capital raising. Even this one, to be honest, if we were growing at, you know, 20%-30% kind of growth rate, I don't think there would be a reason for the fundraise.
The growth has been much faster the last three years, and we do have, see an opportunity to deliver another couple of years of very fast growth. And that's kind of the logic. But certainly, you know, we wouldn't see any likely fundraising after this round. There's certainly no plans for any further dilution.
Sure, sure. And on the fundraise per se, right, you did answer on the utilization of these funds. But just wanted to understand in terms of the four markets that you spoke about, right? Just from your opening commentary, you sounded more positive in terms of pricing, I'm saying relatively, towards like, say, Noida and Gurgaon versus, say, Bangalore, Mumbai, or Hyderabad. So should we assume that the incremental deployment of capital would be skewed towards markets like Noida and Gurgaon?
No, I don't, I don't think so. I think, Kunal, one of the big benefits we think we have of having a truly national platform is that we can choose, you know, not... We don't have to choose to be just in one city or the other. We can choose project by project where we think the best returns, on a risk-adjusted basis are possible. And so I think we like to have that flexibility. So actually, we're not raising the capital saying that 20% will be in Noida and x% in Pune or anything like that. We have a large set of opportunities available that we're seeing, you know, in various markets. I think each of those flows will depend on kind of where we're able to structure the most attractive outcomes for ourselves.
But no, I don't think we're viewing the NCR market as more positive than the others. If anything, I think some of the markets that haven't quite seen that full run-up in pricing yet may offer a lot of attractive opportunities. So certainly, Mumbai and Pune will be very much part of the plan for this capital raise, as would Bangalore and NCR.
Very well understood. Thanks so much. One last question, is, you know, in terms of buyer profiles, especially for, you know, Gurgaon and, Noida projects, if you can give some color on, you know, what are the profile of the buyers and, you know, and how many of them, typically take mortgages?
Thanks for the question. You know, as a typical rule of thumb, in most projects that what we get to see from mortgage is about typically 50%-70% customers tend to take mortgage in the project, and you know, again, Noida market, it's always historically been more end-user driven because if you see the supply itself is constrained. Gurgaon has a sort of interesting history where different participants operate, right? And I'm not talking about this right, I'm talking more from the market condition which we've seen the evolution from last 20 years, so you have end users who are very product driven, then you have investors which are very long-term rental income oriented.
Then you have investors which have very, you know, sort of a thought of getting capital gain in four to five years, and then you of course have speculators who operate. I think, and different developers also tend to have a strategy on which part of the market share they want to sort of get. If you generally see in Gurgaon portfolio, you know, we've done some crazy blockbuster sales, but we intentionally never pushed for a completely sold out, you know, strategy. And the reason was very simple, that we wanted to ensure that the sales funnel can try and absorb as much of end users by making certain practices which are sort of prohibitive and less attractive for investors. And simple examples are like the way we do channel incentives. We are clearly the lowest in the market.
And the idea that there is no misselling and no, you know, though, almost like not the preferred partner for some of them from a brokerage point of view, but more from a product point of view, people who want to sell a product to customers who want to stay and enjoy the property. So just, that's one example. The payment plans that we tend to design. If somebody wants to buy more than one unit, there's a lot of process defined which actually lands up to my table. And you can well imagine the probability of that reaching to me after so many approval. So idea is just to ensure that you attract the lion's share of it. And, yes, sometimes, you know, what may happen is that on the D-Day, you may not have sold out, but look at Zenith as an example for us.
We sold INR 3,000 crores in 2023 , and by now we've sold over INR 1,000 crores at incremental pricing and better buyer profile. So I think these are things that you put in place, but yet the market will have different types of, you know, needs for buying our product. Some are end users, some are investors, some are speculators. We just feel that right now the bulk of the market is there, especially different micro markets. Just like I was mentioning sometime back, Golf Course Road, for example, is a pure end-user market, you know? Because that's the city, that's the part of the city which has complete infrastructure in place, that has probably one of the highest rental per sq ft of commercial office space of North India.
So I have a very different TG. But yes, if you go to 20 km-30 km down the city, you will have different type of developers with different type of customers, investors and the like.
Great. Thanks so much and all the best, and a very happy Diwali to you all in advance. Thank you.
Thank you.
Thank you.
Thank you. A reminder to all the participants that you may press star and one to ask a question. The next question is from the line of Puneet Gulati from HSBC. Please go ahead.
Yeah, thanks so much for the follow-up. So, Pirojsha, this one is for you. Did I hear it right? You said that if you were only anticipating 20% growth from current levels, there wouldn't be a need for a fundraise?
Yes.
So essentially, with fundraise, we are targeting much higher. Okay. Secondly, can you also give a sense of what kind of gross, you know, you've also added a significant amount of gross cash, now close to INR 6,000 crores, and there will be, w hat part would be stuck under RERA, and when do you expect some of that to also unwind?
Sorry, sorry, what?
Sorry, could you repeat that?
So you have large, it's almost INR 600 crores of cash in your books now. This has grown up significantly on Qo Q. How much of it is stuck under RERA, and when do you expect it to get unwound?
So, you know, so this, this is a continuous, you know, RERA cash getting accumulated and released as and when the progress. As of now, we have around INR 3,000 crores of cash lying into RERA account, which will get utilized for the construction, and it will get released as and when the OCs will be received.
Is there?
For the completion percentage.
Yeah. And is there something in JVs as well, which is still yet to come back to the books?
There may be some amount, but not a very significant, because now most of our JVs are at the back end or almost completed.
Okay, great. That's all from my side. Thank you so much.
Thank you.
Thank you. The next question is from the line of Sukant Garg from Equirus Securities Private Limited. Please go ahead.
Hi, hello, everyone. First of all, congrats on the numbers. I would like to ask that, in how many projects that we missed basically, in how many projects out of the total we made the original scheduled deadline?
Sorry, the voice is not clear. Can you please repeat?
Yeah, sorry. So am I clear now? Am I, h ello?
Slightly better. Yeah, but it's a little muffled, but please continue.
Okay. Hello, am I clear now?
Yes. Yes.
Okay. So I just want to ask that in how many projects we missed the original scheduled deadline, and what is the average time of that missed? You know, how much delay of the deadline is?
You're, you're basically saying what's the typical scheduled timeline, and how it happens in operations, that's the question?
Yes.
Got it. See, I think depends upon, you know, the, quite a few factors like, one is, how big is your land parcel, because that determines the site logistics. How many basements/podiums you may want to have, and, you know, what's the typical height of the building, right?
Mm-hmm.
So a rule of thumb is that for a typical building, you know, it can take as less as two years, can take as max as five years. Usually, I'm saying 80% of the projects will be typically in this. Again, like, the variables I mentioned to you, of course, is more higher, if more like 60 stories, 70 stories could of course be higher, and if you go to, like, a 10 story- 15 story, it could of course be far lower. But rule of thumb, you can assume that with different degrees of basement configurations and need for piling and height of the building, thumb rule will be two to five years.
So my question is around how many, how many days of delay that we, you know, usually have in completing a project?
I would say.
On average.
Generally, our estimation-wise, we are fairly bulk of the portfolio do not really see, frankly, sort of a typical delays. But, you know, it's also a bit of a learning for us that in some markets like, let's say, we are talking about, you know, NCR, where National Green Tribunal, you know, has certain guidelines which have started coming in the last three odd years. And we did, of course, launch projects in like seven, eight years. That time we did not envisage that, you know, there will be gap between, and you are familiar with the regulations. So when the pollution tends to pick up, there are regulations defined when you need to, you know, kind of prescribe and halt construction.
And you know what it does is, you not only lose those many days, it takes time for you to remobilize and again speed up, right?
Yes.
So, but in the new projects, we tend to now budget for the time in terms of our, timeline, planning and submitting, executing according like that. So barring aside the typical delays, I would say a very handful situations we have seen projects getting delayed, but more or less, every project gets delivered on time.
Okay. Thank you, and happy Diwali to all of you. Thank you. Thank you very much.
Thank you.
Thank you. Ladies and gentlemen, due to time constraint, we have reached the end of our Q&A session. I would now like to hand the conference over to the management for closing comments.
I hope we've been able to answer all your questions. If you have any further questions or would like any additional information, we'd be happy to be of assistance. On behalf of the management, thank you once again for taking the time to join us today.
Thank you. Ladies and gentlemen, that concludes this conference. Thank you for joining us. You may now disconnect your lines.
Thank you.
Thank you.