Godrej Properties, a large beneficiary of the ongoing uptick in real estate sales has had a stellar performance in financial year 2022-23. Pirojsha Godrej is optimistic to report bumper sales in financial year 2023-24 as well.

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In an interaction with CNBC-TV18, Pirojsha Godrej, MD at Godrej Properties says sales volumes in previous fiscal grew by 40 percent and expects the momentum to continue in current fiscal as well. He foresees a good visibility in FY24 and is looking at a booking value of Rs 14,000 crore against Rs 12,000 crore clocked in FY23 and Rs 20,000 crore in FY26.

The company is well positioned to ride on the real estate upcycle given all the new projects in hand. Godrej Properties' market share has improved to high single digits by adding new projects in existing as well as micro cities. it also expects to expand its addressable market in future.

Mumbai is an important focus area for the company and multiple redevelopment projects are ongoing. "Godrej horizon in Wadala, Mumbai was our redevelopment project in this city recently, where we sold Rs 1,000 cr of inventory".

Also read: Redevelopment projects are a huge opportunity in Mumbai real estate market: Hiranandani Group

Along with interest rates, real estate prices are dependent on consumers’ expectations for future price movements of realty. Pirojsha Godrej says "interest rates are close to their peak now, can expect maximum of two more rate hikes this year".

In some parts of India like NCR realty price appreciation in past one has been steep of 20 to 30 percent. Godrej properties expects project price expansion in FY24, owing to the locations in which it launches these new projects.

The company's launch pipeline is expected at 20 mn sq ft in FY24, which is the highest ever. This includes new projects as well as phases of existing projects. This in turn is expected to lead to robust sales and cash flow generation. Alongside, the operating cash flow is high , which will be the main source of cash for our investments, while growth in debt levels will be dependent on the pace of business development.

Godrej Properties stock is trading 1.6 percent lower at 1 pm on Thursday and rose near 6 percent in calendar year 2023 till date.

First Published:May 4, 2023 1:04 PM IST