Godrej Properties Limited (NSE: GODREJPROP) Q1 2026 Earnings Call dated Aug. 01, 2025
Corporate Participants:
Unidentified Speaker
Kshitij Jain — Investor Relations
Pirojsha Godrej — Executive Chairperson
Gaurav Pandey — Managing Director and Chief Executive Officer
Analysts:
Unidentified Participant
Abhinav Sinha — Analyst
Parvez Akhtar Qazi — Analyst
Ashish Mendhekar — Analyst
Ashish Shah — Analyst
Presentation:
operator
SA.
operator
Ladies and gentlemen, good day and welcome to Godrej Properties Q1FY26 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 touchstone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Shitit Jain. Thank you. And over to you, sir.
Kshitij Jain — Investor Relations
Thank you. Good afternoon everyone and thank you for joining us on Godrej Properties Q1 FR26 results conference call. We have with us Mr. Pirochsha Godrej, Executive Chairperson, Mr. Gaurav Pandey, Managing Director and CEO and Mr. Rajendra Ketawat, 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 risk. The outcomes 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. Godrej to make his opening remarks. Over to you, sir.
Pirojsha Godrej — Executive Chairperson
Good afternoon everyone. Thank you for joining us for Godrej Properties first quarter financial year 2026 conference call. I’ll begin by discussing the highlights of the quarter and we then look forward to taking your questions and suggestions. Godrich Properties delivered another solid quarter registering continued momentum in bookings, cash flows and earnings. We’ve delivered our highest ever quarterly net profit of rupees 600 crore in the first quarter. A growth of 15% year on the residential real estate sector in India has been strong over the past four years and we believe that demand conditions remain favorable.
Our business development additions with a future booking value of over 90,000 crores in financial year 23 at favorable terms continue to allow us to scale our bookings and in turn over time our earnings. On the bookings front, GPL achieved a booking value of rupees 7,082 crore from the sale of 4,231 homes with a total area of 6.17 million square feet. The booking value showed a decline of 18% year on year but actually represented a two year compounded annual growth rate of 77%. This is the eighth consecutive quarter in which Godredge Properties has exceeded rupees 5,000 crore of booking value.
The sales in the first quarter were driven by strong demand in several new project launches including Godrej MSR City in Bengaluru which achieved a booking value of Rupees 2,426 crore. Godrij Machiste in Greater Noida which achieved a booking value of just under 1000 crore and Godrij Tiara in Bangalore which achieved a booking value of rupees 470 crore. Bangalore contributed more than rupees 3,000 crore followed by Mumbai and NCR, both of which contributed over 1,600 crore to our sales. There were six new project and phase launches during the quarter across four cities with a total sales potential of rupees 8,500 crore.
Collections in the first quarter grew by 22% to rupees 3,670 crore. And operating cash flow slightly declined by 4% to rupees 947 crore. Largely on account of the relatively low deliveries we had during the quarter. Under 1 million square feet against a full year target of at least 10 million square feet. In terms of business development, we started the year on a strong Note by adding five new projects, an estimated scalable area of approximately 9.24 million square feet and an expected booking value of Rupees 11,400 crore. With this, Godreach Properties has achieved 57% of its annual guidance for business development for the full year.
In the first quarter itself. In the first quarter our total income decreased by 3% to rupees 1593 crore. EBITDA grew by 18% to rupees 915 crore and net profit grew by 15% to 600 crore. With a robust launch pipeline, strong balance sheet and resilient demand, we are on track to achieve our bookings target of Rupees 32,500 crore in FY26 and are also on track to meet our guidance across all other operating parameters. On that note, I conclude my remarks. Thank you again for joining us on the call. We’re now happy to discuss any questions.
Pirojsha Godrej — Executive Chairperson
Comments and suggestions you may have.
Questions and Answers:
operator
Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press char n1 on the Touchstone telephone. If you wish to remove yourself from the question queue, you may press char and two participants are requested to use handsets while asking a question. Ladies and gentlemen, we’ll wait for a moment while the question queue assembles. The first question is from the line of Puneet from hsbc. Please go ahead.
Unidentified Participant
Yeah, thank you so much and congratulations on a good start to the first quarter. My first question is if you can talk a bit about, you know, of the new launches, what Percentage have you been able to sell? And in your total sales, what would be the share attributable to you?
Pirojsha Godrej
Thanks. Thanks Puneet for the question. Essentially if you see most of our big launches have been in Bangalore. We launched this project by the name of Godrej MSR city in North Bangalore and we were able to sell close to about 2,400 plus crore, I think 24, 26 crore in the previous quarter. And if my memory serves me right, in the first phase that we had opened up with some inventory we had blocked, the total available was about 26, 2700 crore of which maybe about 100, 150 crores we had sort of blocked do it at a slightly higher pricing.
The next one was, you know, another project in Greater Noida by the name of Godrej Majesty. In this one in the previous quarter we’ve sold about 925 watt crore and I think even in this quarter we already sold another 75 watt crore. And this is part of some towers that we have launched and it’s going very well on the track. The third big launch that we had is in Yashwantpur. Yashwantpur approval actually came little later. I mean we got this approval close to three weeks before the quarter got ended and we sold more than 400 odd crores, if I’m not wrong, probably 470 odd crore in the previous quarter and it is continuing to sell as aggressive as that.
I mean if my memory served me right, we would have crossed almost a similar number, you know, already in this particular last month itself. So again, going well on track and then remaining are we more or less like phase activations and all? So yeah, so whatever we opening stock between the towers that we open or the floors we open, give or take between 70 to 90% is what we are selling consciously. We’re holding some very, very prime inventory so that we can write through some amount of pricing uptake. But we are seeing very strong demand.
Unidentified Participant
Yeah, okay.
Unidentified Participant
And the share of sales question was the GPL share this quarter was a little bit lower than last year because of the large sales in Bangalore in a JV project. So that was 78% for the quarter.
Unidentified Participant
And secondly, if you can talk a bit about the environment in terms of deliveries, the delivery was 0.8 million square feet. Are you seeing any challenges in terms of availability of labor, contractors, etc. And is there a risk on any account on the slight pushback in terms of project completions and collections?
Pirojsha Godrej
That’s a great question. If I were to give you a sense of the execution piece, I’m delighted to share with you. In the quarter one we were able to increase our POC run rate just to give you a sense. CoC in Q1 of the previous financial year was about 750 odd crores and the quarter one CoC was about 1170 plus crore. So we are seeing a very strong execution uptake. And yes, you’re right there have been historical challenges on the labor side, but for the last nine months we’ve been working on a complete execution turn on strategy and we worked on kind of bringing our laborers into a digital infrastructure system, creating a sort of a roadmap to engage them better and also relook at some of our contractor base.
And through these initiatives today, our sites are able to consistently month on month exceed the target that we are setting for them from a labor point of view. So yes, there might be some pockets of opportunities of major improvements still, but I think give or take in this quarter we should be able to ensure that any gap on some projects from a labor strength also gets fixed up. So I think we might be an outlier in if we continue on the drive that we are doing in the next one and a half to two years, we will almost automate the engine.
And we are also integrating a lot of tech initiatives to strengthen this overall.
Pirojsha Godrej
Execution piece
Unidentified Participant
should it not show up in your construction related outflows which was 1800 crore in 4Q and 1460 crores this quarter.
Pirojsha Godrej
Fair enough. See, I think typically, I’ll explain to you. See, typically our business has, if you see our historical numbers as well, typically quarter four has a lot of OTs that technically kind of come in quarter one we just had 0.8 million square feet of OCS and we did a lot of launches in quarter four, if you recollect which in the initial days of construction, mostly about excavation and piling works which are not from a CoC spend a very huge item, but from a labor intensity and activity so the materials don’t get pumped in like steel cement doesn’t get too much into excavation, but labor movement, truck movement is fairly high.
So I think you would see that uptake in the coming quarters.
Unidentified Participant
Okay, understood.
Pirojsha Godrej
We remain very confident of the guidance both on collections and deliveries quarter to quarter. Of course there can be some fluctuation.
Unidentified Participant
Fair enough. And secondly, on your BD front you’ve been doing quite aggressively if you can quantify balance to spend on what you’ve already acquired in terms of land payment dues. And how are you thinking about future, you know, run rates.
Pirojsha Godrej
Okay, I’ll take the first part. Pune for the deals which we have signed in this year balance to spend is around 900 crores and around thousand or twelve hundred crores for the earlier deals which we have signed in 25 and 24 which are milestone link payments.
Unidentified Participant
Okay. And this includes the 1200 includes the Ashokvya as well.
Unidentified Participant
Right.
Pirojsha Godrej
That includes one installment of Ashok Vya which will get due for this financial year.
Gaurav Pandey
And I think your second question was on the future bd. Is that the question?
Unidentified Participant
Yes, yes.
Gaurav Pandey
I think we remain very optimistic on the deal pipeline. So we would we endeavor to add projects especially in cities like Bangalore and Mumbai and also to some extent even in Pune and NCR acquiring few projects mostly on the plotted side like Panlipathi what has recently seen an acquisition and we’ve been very selective on currently on the NCR acquisition unless we find the valuation very attractive. So you would see definitely very strong business development growth but more calibrated more about where the take up rate can be very fast from buyout opportunity to launch and churn.
Unidentified Participant
Understood. That’s very helpful. Thank you so much and all the best.
Pirojsha Godrej
Thank you.
operator
Thank you. The next question is from the line of Abhinav Sinha from Jefferies India. Please go ahead.
Abhinav Sinha
Hi Pirosha, my first question is to you.
Abhinav Sinha
So in the opening comment you mentioned that demand conditions are pretty strong and I guess even your sales should be higher this year. Plus we have seen some other developers also report very strong numbers in first quarter. But however the industry data seems to be flattish to down. So how do we square these two things?
Pirojsha Godrej
Yeah Abhinav, I think the demand conditions do remain quite strong in our view. I think compared comparing it to a time where perhaps the demand conditions are quite euphoric may not actually give the best picture. I think we’re following so far pretty much exactly what one would expect to see in a typical real estate cycle assuming this is kind of year four or year five of that cycle which is you do have the couple of years of kind of extraordinarily fast pricing growth. We’ve seen some of our launches. People have been lining up at one o’ clock in the morning as though it’s music concert or something like that.
So I think those are not conditions that are going to sustain indefinitely nor probably should they sustain indefinitely. So I think we’ve now entered a period where prices have reset to a higher and quite attractive level. We’re continuing to see strong demand at these levels. But I Don’t think at this stage of the cycle we’re going to see very sharp pricing increases or volume jumps from here. So I think it’s more about steady growth from here that seems to be playing out in most of the numbers we’re looking at. So I think as of now certainly we’re quite happy with the response we’re continuing to see across the country in all our new project launches.
Unidentified Participant
Okay. Secondly on the BD side. So I noticed that this quarter you’ve done couple of area share agreements and this sort of comes after a while. Right. So where you were earlier doing almost all projects as buyout. So is this like a conscious shift in strategy?
Pirojsha Godrej
I think yes and no. You know, I think as we get closer towards the, you know, the mid end stages of the UP cycle, I think rebalancing a little bit towards JVs will make sense. But I think these frankly were more driven by kind of deal specific requirements of the landowners, which are always a factor in deal structures. And we’re seeing continued opportunities for outright purchases. I think this year again, most of our acquisitions are likely to be outright.
Abhinav Sinha
In fact, if you see the transaction like the Panipat is a completely 100% bio transaction and the pipeline that we currently have is a mix of both area share revolutionary structures, but a lot of outright transactions, I think it will be very opportunistic basis. But the interesting part is whatever we acquire agnostic structure, our return metrics are intact, which means that the pat margins that you always target as the main metric and of course IRR is exactly the same threshold that we maintain for any real construct.
Pirojsha Godrej
Gaurav, can you help us with some of the large launches to expect in the next couple of quarters?
Gaurav Pandey
Thanks. Actually we have a crazy launch pipeline. Depends on how much we actually can squeeze in. But just to give you a flavor of a launch pipeline, we will be very soon having a launch In Gurgaon, the 3.6 acre of land in Sector 53 and a very exciting project developed on a sort of a Japanese theme. Then we will be launching a first time a retail product, a new asset class and a very sizable one in Greater Noida. This part of a very successful project of ours called Godre Golf Link. We endeavor to launch maybe within the next three months.
It could be within this quarter or early. Next quarter is the worldly launch. Things are going very strong on that. Approvals are more or less on track and hope to secure that one very soon on the Versova. This is an acquisition we did last quarter. Delighted to share this will hit this quarter as a launch. One of the first fastest turnaround for us in Mumbai Zone. We are also looking at finally launching one of our acquisitions of Indore. There is a lot of excitement in Indore market for goodrich properties entering and this should be a blockbuster within this quarter.
Then we have some launches being planned in Panvel City. We are also opportunistically looking during the year something in San Pada we will hit a very big launch in like Pirosha was mentioning in Hyderabad. This was an acquisition we did in a very interesting market like Rajendra Nagar and this has a very large booking value potential. We’ll be launching one large phase within this quarter and will be a very sizable number. Then in Pune we will look at launching Keshavnagar after long time we’re going to re enter that micro market. We have some launches here and there in Pune like Mahaninjay in Bangalore we have a launch in likely if not this quarter, the next quarter in Thani Sandra and further from there on likely we will be able to launch either the next quarter or the quarter after the Panipat recent acquisition of previous quarter.
The approvals are going very fast. So it is planned for Q4 but I won’t be surprised if it hits even Q3. Then we have a 7 1/2 acres land parcel in Gurgaon which should also hit within this year. We have a greater Noida parcel that we had done acquisition that is going very well on design and approval stage now. So that should also happen within this year. We have a Cargill acquisition if you remember bought from in auctions that will hit this year. Then we might be able to pull off. I mean very early to say but there are two Upper Karadi transactions we did which had accumulated booking value logged in of 7,300 crores.
We would endeavor to at least try and launch one of the phases of one of the land parcels. Then we have a launch coming up in Evergreen Square during the year something in Raipur. The plotted development. We are trying internally to push it for a Q4 launch and hopefully also within the year you’ll see the Ahmedabad launch. Then we have some residential opportunities in GGL next to the retail plot. And then opportunistically we might even launch more phases of Banagatta. Basically we’ll enter Banagatta but the MSR city might open Facebook. As you can see it’s a humongous pipeline that we built for ourselves and which gives me a sense that we should if we hit Most of them, well, we should comfortably exceed our guidance.
But if we do, if you’re able to get more of this like the pipeline mentioned, then we might mean for a good surprise.
Abhinav Sinha
Great God of thanks and all the best.
Gaurav Pandey
Thanks.
operator
Thank you. Ladies and gentlemen, to ask a question you may press charan 1 at this time. The next question is from the line of Girish Chaudhary from Aventus Park. Please go ahead.
Unidentified Participant
Yeah, hi, good evening. My first question is on the business development. Now that you’re running ahead of your guidance for the quarter, I was more interested to know on the land spend this quarter you did around 2000 crores of land spend. So how should we look at this number for the year as a whole? I mean last year we spent close to 9,000 crores. And also how should we look at the debt numbers for the year?
Pirojsha Godrej
Thanks. Actually, to be very frank, it is very, you know, the strategy on the business development side is as we mentioned, even when we are releasing a guideline, guidance is not really driven by a targeted must have guidance. Right. It just happens that the deals meet a metric and we are very confident of them being available for immediate launch. And I say immediate meaning next 60 to 12 months is when we typically go about it. As a rule of thumb, if I were to say that for every thousand crore worth of inventory you can assume between 15 to 25% is your land acquisition cost in an outright and it can be far lower if you do an area share revenue share.
So it depends on the deal construct, it depends upon the type of opportunities we get to see during the year. And this could be a number which for a quarter you may not see certainly a lot of transactions. Like in Q1 you saw a lot of transactions. So really difficult to predict an absolute number because for us having them is not necessarily critical to maintain booking value growth. As you know we’ve acquired a series of projects. I’m delighted to share with you that in the last three years or so of BV that we’ve logged in, we still have close to 60,000 odd crore worth of inventory to sell.
And from a historical inventory we have close to one 14,000 crores of inventory. So BD, logically what we’re looking at is more about opportunistic fast turnaround and in micro market where we see a huge potential and depth. So this will essentially drive and most of us, because we have a very strong operating cash flow pool even in this quarter, you see we had like 947 odd crores of operating cash flows in spite of almost 400 crores of extra CoC spend. When I compare Y1Y this is going to fuel our future growth in the coming quarters.
So difficult to put a number if I want to be very specific but yes, we will acquire a lot of opportunity but based on very strong deal metrics.
Unidentified Participant
On the debt any how are you looking at the debt from here on?
Pirojsha Godrej
Yeah, I think again it will depend a little bit on the quantum of business development we’ve done. But I think if you look at it, you know last year we did about 700, excuse me, 7,500 crore of operating cash flow on collections of about 17,000 crores. We’ve guided this year for 21,000 crore of collections. So of course hope to see operating cash flows also at a very healthy level this year. So I think a lot of the business development should be funded by that. From a debt perspective we’ve laid out an absolute gap that we’d like to look at for net debt of 10,000 crore.
So we do have a fair amount of room and even that would only take us to about a 0.5 a little bit above that year end. So I think that there is more than enough sources of cash both between operating cash flow and room to borrow a little bit if we see the need to in the short term. But I think the decide of exactly where debt ends this year will be how much beyond this 20,000 crore guidance we are able to do on business development and that is honestly something that we don’t have. It’s not that internally we have we must do at least 30,000.
I think broadly we’d like to see a kind of replacement value business development so roughly in line with our sales. And I think operating cash flows should be able to fund most of that.
Unidentified Participant
Sure, sure. The second question is on the construction outflow run rate like you earlier mentioned that you’re running ahead of the COC run rate. So but I mean basis your expected cost to complete what can we assume the run rate for let’s say the, I mean for fiscal 26 and 27 last year we had spent close to 5,500 crores.
Pirojsha Godrej
Yeah, I mean I, I would say that probably last year a CoC spend were about 3, 500 crore, 3700 something like if my memory serves me right, I think we should hit between again depends on how efficient we are able to capitalize on some of the start of construction because you know when we do an estimation for the year it also kind of picks up our approvals coming for H2 launches. Right. So depending on how quickly we can get those approvals on track, we will take 5500 to 6500 crores.
Unidentified Participant
Last year was around.
Unidentified Participant
No, I’m talking this year I’m talking.
Pirojsha Godrej
No, last year was higher around around 5,500.
Unidentified Participant
Last. This includes what all. Just for one second, this includes the. All the development cost or just the CoC spend?
Pirojsha Godrej
All the CoC spend.
Pirojsha Godrej
So give or take 30 to 40% growth on the base value we should have.
Unidentified Participant
Sure. Thank you so much.
operator
Thank you. Ladies and gentlemen, before we take the next question we would like to remind participants that you may press char n1 to ask a question. The next question is from the line of Parvez Qazi from Navama Group. Please go ahead.
Parvez Akhtar Qazi
Hi, good afternoon and thanks for taking my question. So my first question is on the pricing front.
Parvez Akhtar Qazi
Now you did mention that demand remains strong.
Parvez Akhtar Qazi
We are able to sell 70, 80% of our launch inventory pretty soon. So what would have been let’s say the like to like price increase that you would have taken in Q1.
Pirojsha Godrej
So in most markets and of course there are some exceptions of some project where we may not have increased prices but most projects in north we’ve been able to increase price between 2 to 3%. We’ve been able to increase between 1 to 2% in Bombay marginally basically less than 1% in Pune market and about 2 to 3% in south market. This is what I’m saying.
Like to like project. Project which had already been launched and we were doing sustenance sales and our sustenance sales as you would know is about close to 2,750 odd plus crore in the last quarter.
Parvez Akhtar Qazi
Sure. The second question is, I mean over the last few years obviously demand has been pretty good. We have seen an increase both in.
Parvez Akhtar Qazi
Land prices as well as the price.
Parvez Akhtar Qazi
Realization on your various projects. So in your estimation, I mean an IRR for a project acquired recently, how will it compare with let’s say MIDI deal that you would have done three.
Parvez Akhtar Qazi
Or four years earlier.
Parvez Akhtar Qazi
Will the IRR be same higher, lower? Just one don’t get your views.
Pirojsha Godrej
I think the project that we had acquired in the initial stage of the cycle. So let me clarify. The underwriting standards when the cycle was starting up to its peak as well were exactly the same that we had even in pre Covid. We were always underwriting in conservative sort of basis that feels more like a governance principle that we set when we buy land. So those have of course seen a very dramatic uptick both from an IRR perspective, overall pad profile and even PAD margins.
Right. And the deals that we acquired even in the six months at the moment, more or less most of the deals we are seeing an uptick in IRR now the deal that we will continue to acquire, the endeavor is going to be that whatever we’ve been underwriting agnostic to market cycle, we should maintain and improve upon that. So to put it very simply, we’re not really. When we look at a deal we don’t really go aggressive and underwrite basis aspirational life cycle numbers. We do what is like a launch scenario as we call it, which is basically today rate.
If this rate does not increase for next year, what is the margin profile IRR looking like? And that’s how we underwrite. And if the market supports you, improve upon it. Market doesn’t support you. You at least for the very minimum try and maintain those margins to whatever extent possible.
Parvez Akhtar Qazi
Sure.
Parvez Akhtar Qazi
Thanks. And all the best. Thank you.
operator
Thank you. Participant who wish to ask a question may press char and one on the touchstone phone. The next question is from the line of Ashish Mendikar from JP Morgan. Please go ahead.
Ashish Mendhekar
Yeah.
Parvez Akhtar Qazi
Hi.
Ashish Mendhekar
Thank you for the opportunity. Sorry to interrupt.
operator
Mr. Ashish, may I request you to use a headset to ask a question?
Ashish Mendhekar
Okay. Is this any better?
operator
Yes, please go ahead.
Ashish Mendhekar
Yeah. Understanding the completion trajectory FY26. So shall I ask all the questions in one go or like.
operator
Go ahead. Please go ahead.
operator
But just you know, your line is not clear. Maybe.
Ashish Mendhekar
Did you ask for completion for this year? Is that your question?
operator
Sorry, not able to.
Pirojsha Godrej
The line is not clear at all.
Ashish Mendhekar
Hello. Is this any better?
Pirojsha Godrej
Yes.
Pirojsha Godrej
Yes.
Ashish Mendhekar
Okay. So was looking exactly just a number. But what would be the tragedy going ahead starting with FY26. My second question is.
Pirojsha Godrej
Sorry, we’re not able to hear you.
Pirojsha Godrej
Take it offline.
Ashish Mendhekar
I’ll take it off.
Ashish Mendhekar
Yeah, sure.
Pirojsha Godrej
Okay.
Pirojsha Godrej
Thank you.
Ashish Mendhekar
Thank you.
operator
Thank you. The next question is from the line of Parikshit Kanpal from HDSE Securities. Please go ahead.
Unidentified Participant
Yeah. Team. My question is on the NCR market. So last year clocked 10,000 crores of sales in this quarter 1650. So. And Gaurav, I think you sounded a little cautious on the NCR market on new business development. I could sense that you’re saying there are not many attractive deals available. So in terms of growth this year from presales in NCR and on bd. So how are we thinking?
Pirojsha Godrej
I think Parishit. Fortunately we do have a very strong pipeline in NCR market. And A fairly diverse pipeline. We have a very strong presence especially in Gulf Coast Road Micro Market, the main EBITDA market for Gurgaon. And then we have a very spread out project. I’m talking bigger numbers and we have a lot of projects in Noida, greater Noida market. So I think we have enough and more to kind of sustain the growth for next 18 to 24 months. And of course not that I am in any way discounting the opportunity that NCR Market will present us.
In fact there is one deal which is in a fairly advanced stage but we are negotiating. But you know you don’t, when you run sort of a principle of risk adjusted return you don’t really get very emotional about the investment. Right. I mean you just see that if you have great pipeline and a headway to deliver great growth for next one and a half to two years you kind of sit back and wait for the valuations to come at a level and sometimes it takes two, three months. Sometime it can take six to nine months.
But when it does we do go very aggressive. You see about two years back it was exactly similar. But then we started acquiring. In a matter of months we did four or five acquisitions. So I think right now there is a sort of opportunity where we want to negotiate a little and get those deal to our terms. But you know, thanks to good work of the teams in previous four to six quarters we have enough and more to sustain the growth
Unidentified Participant
again in terms.
Unidentified Participant
Of like what will this bring down the negotiation? The price.
Pirojsha Godrej
Sorry,
Unidentified Participant
so you said that you will look for more attractive deals. So what will bring, bring the deals more.
Pirojsha Godrej
I’m going to hear the last part of the question.
Pirojsha Godrej
I think what we’re saying is that we have a strong pipeline in NCR. So even on the 10,000 crore base we’ve had for the last two years, we expect to show growth on that this year. And I think Gaurav’s point is we don’t feel the need to be chasing deals if we’re finding the valuations unrealistic. There’s no challenge to just not doing deals for a few months until the right opportunity opportunities come. But certainly NCR is among the markets that we will look at new BD this year and we do have a plan to ensure strong growth in NCR this year.
Unidentified Speaker
The last question on Delhi. So any update on how big how’s the Delhi market now looking at? I know there are new development plans and are being discussed and drawn out. So by far medium to long term, do you think that Delhi can Become equally lucrative market for gpl.
Pirojsha Godrej
Yes, of course. I mean we’re quite excited about the Delhi opportunity and there is definitely a strong supply constraint in the entire Delhi because of the complexity of the regulation, the land market, how that operates. And I feel that, you know, bring Ashok PR to the market which has been going little slow historically from an approved point of view. But yes there is, there is a very strong opportunity for us to unlock massive amount of upside in that particular project. We should be able to re rate the entire Delhi. But Delhi, if you frankly ask me from a Ashok agnostic to if I remove this transaction per se, Delhi always has a huge land constraint which is why Gurgaon property market kind of had the uptake otherwise the Gurgaon market would have not existed.
It was essentially people migrating from Delhi in search for better high quality development. But as and when we’re able to bring Ashok VR I feel we’ll be able to get a very significant price premium once we launch that project.
Unidentified Participant
Okay, I just missed if there is any update on ASHOK VR. So what is the launch timelines now? I mean you’ve been making the payments but in terms of launches, what is the stage of approval and clearances?
Pirojsha Godrej
You know, as you know, frustrating as the honest and candid answer is that, you know, it’s been a frustration for us that we’ve not been able to launch this project for a while. And I think we mentioned very candidly in the previous earnings call as well that there has been set of approval authority issues in the government set up on which department grants approval, where and how. There has been some views from the court also on the overall tree cutting policy of Delhi. So it is difficult to predict how exactly the court will decide and how exactly the authorities will sort of move forward.
But if I were to give you a sense of what the feeling on the ground, what was happening about six months back when the governments were not really aligned. I think there is a good positive movement. We see a good amount of clarity coming at least from the departments to begin with. There has to be some movement of the court side which is frankly not really in anyone’s control. But fingers crossed if things continue the way they are, we remain very, very positive for a launch. But I don’t think so at the current state of data that I get to see.
I’ll be able to give you a very, very accurate timeline for launch. But if I were to give a sense of relative. About a year back things were looking much more difficult and things are looking much more positive now.
Unidentified Participant
Okay, this is one last question on the launches this year. So any. So if you can help us quantify what quantum of your launches are impacted by the NGT issue which is currently under courts hearing and final judgment awaited. So, so how much of your. The Sanjay Gandhi national park issue and currently that issue has impacted Mumbai and basically approvals on the economic, this environmental clearance at the state will do a center in that issue I’m talking about. So any Update on that.
Gaurav Pandey
40,000 crore launch guidance we’ve given for the year is meant to be a number that we should be able to deliver, you know, even if there are a few setbacks on the approval side. So we remain confident of that 40,000 crore number in the first quarter we did about eight and a half thousand crore.
Unidentified Participant
Okay.
Unidentified Participant
And even on Bangalore there’s a ground rent issue which is going on on the charges what has to be paid on even on OC and on new launches. So any update on that, whether that will impact any of our Bangalore launches?
Gaurav Pandey
No, I think, look, you know there’s endless number of these kinds of issues in the sector. So I think these have to be taken in stride and project teams have to find solutions. But the number we try to provide from a guidance perspective is one which we think has adequate buffers that we can absorb some of these delays and hits and still achieve the number we provided.
Unidentified Participant
Sure. Dean, thank you. Thank you. Gaurav. Thank you. Tarocha.
Gaurav Pandey
Thank you.
operator
Thank you. The next question is from the line of Ashish Shah from HDFC Mutual Fund. Please go ahead.
Ashish Shah
Yeah, thank you. So just wanted to get a sense on any recent trends that you can highlight on footfalls, conversion rates or how long it is now taking to convert inquiries to sales, let’s say vis a vis where we were a quarter or so back in at least our key markets like Mumbai, Pune, Bangalore, maybe ncr. Anything we can share on that front.
Pirojsha Godrej
So I would say that with the exception of NCR about nine months back, the conversions and the excitement euphoria was more or less almost similar in all markets that we were operating. I mean there was never a crazy uptake, neither a sort of a compression of any sort of either a walk ins or conversion. I think there was a sense of media narrative if I were to put it about nine months back on npr and we just became a little bit cautious from our own end to just revalidate. But we never saw any sort of a dip in any sort of either the walk ins or conversion ratios.
So if you look at the most recent example is the launch that we’ve done in Britain, Oida, if you see and understand that location, it used to be historically we priced at around 7 ish 8,000 or 9,000 at max sort of a location. And there has been a huge supply constraint in the greater Noida market because it’s heavily controlled by the government, the supply comes from auctions only. And we were able to secure a project and launch and sell 925 watt crore at a 14,000 plus rate if I’m not wrong. Probably 14,540 as the realized price.
And we had fantastic walk ins, fantastic conversions and we still seeing walk ins happening in that side. So I think the real challenge for any market is not very the sentiment right now. I think it’s very positive. There was some amount of narrative I would say was holding till January, but especially after the government doing certain changes in the fiscal policy, the environment started looking more positive. The interest rate reduction again frankly doesn’t really impact our segment per se, but just kind of removed any negativity that you know, certain corners were making. So I would say similar conversion ratios, similar walk ins.
In fact in some projects we are breaking records of walk ins. So like if you go to Bangalore, the organic walk ins that we’ve seen in that side is one of the best ever numbers we’ve seen in any project across India. So yeah, I mean there are some new benchmarks we’re trying to create within the company as well. So I don’t see any change.
Ashish Shah
And especially let’s say in case of Bangalore, this hasn’t changed much in the last month or so because there has been some concern of IT services related slowdown, etc. So have you seen anything particularly in markets like Bangalore which probably get more affected by IT services, any sort of slowdown in that sector?
Pirojsha Godrej
I think on the contrary, I mean we, you know when you launch a project there is a typical dip in sales after the first few weeks of login. Right. But the Yashwantpur launch, Buddhist Tiara, which is continued its sales after 450 odd crores in Q1 is kind of hitting a similar number already as we speak. Right. So I don’t see that. And I just want to caution one thing, that the news that we hear about one or two companies doing it, which can’t be a trend, is mostly on a very different job segment versus the Bangalore story.
There’s a lot of growth if you see on the office leasing side of the last 12 months and in fact if I’m not wrong, the Last year was the best ever leasing record for Bangalore and overall for India. So yes, there are pockets of companies and segments which would get affected but they’re equally being offset by higher paying jobs from global capability centers and the likes of. So nothing really felt on the ground. And in fact we are seeing very strong demand for our product.
Gaurav Pandey
And I think our Bangalore says last quarter of course was the highest of anywhere in the country and also I think may have been the highest for any developer in Bangalore.
Ashish Shah
Right. Sir, just one last thing. We did talk about strengthening our execution capabilities. So just if you can share a little bit more into how, how we are either externally or internally in terms of our own execution teams. Any concrete measures that you could highlight. Because I think we are now embarking on a level of scale which may need much better execution abilities than in the past.
Pirojsha Godrej
Absolutely. Nine months back we had created an internal program which focused upon complete ramp up of execution capabilities and deliveries. And through that, so we worked, there was a specialized team working on it for about six to nine months on that particular project and we identified 15 modules, as we call it, which were like areas of opportunities to strengthen for us to even sort of accelerate some of the good work we’ve been doing. So just to give you some idea into the depth of it, we’ve worked on the labor strategy very exhaustively. We realized that in India labor is a very, very seasonal thing.
There is a very huge attrition issue. And we identified after meeting about 800 plus laborers, our teams went on ground, met 800 labourers for sites to kind of decode the problem statements of their life. Why don’t they like to work for a longer time? And some of the very superficial understanding that industry has, which is money, were not really the root causes of why attrition is very high in the labor market. So we could curate certain programs and, and I’m delighted to share, but these are very early days for me to be to say that this exactly works like that.
But in for example Holi we made some very specific interventions on a site and normally in Holi we get to see a dip in labor percentage from say X to say about 70% and sometimes 65% of that. Because the first time, in spite of Holi we saw pre and post holi number and 98.7% which was very extremely heartening. And we’re seeing month on month growth in our labor volume. We in fact worked on creating a digital infrastructure to bring our labor on board and we have created a series of schemes to help them get feel more engaged and at place.
Then we’ve expanded a contractor landscape in a big way. We bought onboarded a lot of tier one contractors. So whether it is Leighton working in the CO2 Reserve project, KEC working in the Aristocrat project, Alu Ali working on another project, a series of large contractors who are not operating in our ecosystem have been added and contractors who were working very well in our system have been strengthened by giving them cash flow support, giving them very timely payments by tracking it centrally from here so that there are no sometimes bureaucratic hurdles that comes in the road of execution and then empowering teams, spending, audit control, but at the same time creating autonomy and empowerment to take certain decisions on the ground and centralizing and procuring items at bulk.
Now we have lifts that we buy at bulk, we buy tiles at bulk, we buy paints at bulk. We in fact have a segment by segment analysis how much we want to buy for the next six to 12 months. So I think these are just three, four things I’ve talked about. I mean it’s a chapter itself. But yes, we worked a lot on tending our execution capabilities. In fact restructuring some of our teams. We have increased pay grades of certain specialized project with the pat lock in is very high. And I think combination of these have been giving us some very early wins.
But yes, this is one part of the value chain. You can’t be complicit and you need to be always on top of it, always innovate and always push the edge. But if we continue on the road that we are now sort of got into with some reasonable confidence, I can say we might create some benchmarks in the industry.
Ashish Shah
Thank you. Thank you very much, sir.
Pirojsha Godrej
Thank you.
operator
Thank you. The next question is from the line of Puneet from hsbc. Please go ahead.
Unidentified Participant
Yeah, thank you so much. And I don’t really want to put you on a spot, but if you were to look at your share price versus the opportunity in the market, where would you want to deploy money promoter shares? Anywhere less than 50%. Would you like to comment on how would you be thinking?
Gaurav Pandey
Yeah, thanks, Maneet. I think we think, but maybe it’s because of where we sit, but we clearly think the share price is at a kind of absurd levels given the kind of growth and overall operational momentum we’ve delivered. The promoters have actually bought back some shares on the market over the last six months and if this weakness continues, may use it as an opportunity to continue to do that. I think certainly I’ve never felt better about the current position of the company and the overall direction both in terms of an absolute basis and how we’re performing vis a vis.
So yeah, I think it looks to us like a good buying opportunity. We have acted on it over the last few months and may do some more of that if this weakness persists.
Unidentified Participant
And buyback versus business development opportunity, which one do you think is more remunerative?
Gaurav Pandey
I think, you know, we have so much opportunity as a company that I think, you know, buybacks from my view, more something to consider if you’re throwing up huge amounts of cash, don’t see great deployment opportunities for it. If we can continue to deploy 20% plus IRRs as we seem to be continuing to have opportunities to do, I think it would be more sensible to deploy that I think the share price movements can correct quite quickly. It was not that long ago that we were at, you know, very significant premium to where we are now.
Sure, we’ll get back there. So we certainly, if it gets much weaker than this, it might be something that we would have to consider seriously. But for now I think we’d like to deploy all the capital for operational growth and performance.
Unidentified Participant
That’s helpful. Thank you so much. Ananda host.
operator
Thank you. The next question is from the line of Arunjalas Jala Saria from BNK Securities. Please go ahead.
Unidentified Participant
Yes sir. Thank you for the opportunity. I just wanted to check what is the kind of unsold inventory that we have in the books currently split between ready to move and ongoing.
Pirojsha Godrej
Total inventory or you want to be, you want to say that launch but unsold
Unidentified Participant
launch and unsold
Pirojsha Godrej
so say about 27,000 crores.
Unidentified Participant
Okay. So I just wanted to get your thoughts on the sustenance sale. Like this quarter, I think 65% of the sale came from new launch and we just did around 3, 500 from. So like what is the expectation going forward?
Pirojsha Godrej
I think we are 39 if I’m not wrong. We were 39% at 27 plus crores of sustenance sales. And I think, you know, generally what’s happened is it’s very project specific. Right. So in some of our launches we’ve done a complete sold out, right. I mean if you look at Tropical Isle Gardenia, these are sort of sold out projects so they don’t really happen at all on sustenance. There are some projects we’ve held some inventory to kind of max out the pricing opportunity so those keep on being available in the market. And then there are some projects which had a potential to do only 70, 80% they will continue to do so.
I think we have a very healthy sustenance ratio. It sometimes may look percentage wise little weaker because if we get launch approvals on time then the launch volume is so massive that they don’t look very big from a percentage down. But from an absolute perspective we’ve been consistently doing very well on these sustenance in projects wherever the inventory is actually available.
Gaurav Pandey
I think we keep a regular track of things like unsold inventory as a percentage of total inventory, unsold invent inventory as a percentage of expected sales, months, etc. So I think we see all of those data looking very healthy at the moment.
Pirojsha Godrej
So just to give you one live example, in golf course project we did a launch in Godrej Miraya, the first of the series where we did about 497 crore at the launch. And since in the last six months that 497 number has become now 778 crore. So this was a very conscious strategy to sort of hold some inventory. And then there was another example by the name of Lakeside orchard which did 268 crore the launch. Then again we continuously did about another 100 odd crore each quarter and today the cumulative BV stands at 1370 crore.
So I think it’s a very project specific intervention that we tend to take a call on basis, risk and reward and then whichever inventory is available, they do very well in the substance where we decide to hold.
Unidentified Participant
Okay sir, thank you. Just one last question. What is the amount of collection yet to be, you know, which is pending to be collected based on the deals which we have done in the past couple of.
Gaurav Pandey
So pending to be collected, you know the revenue but you know pending to be collected is around 51,000 crores of collection is pending to be collected.
Unidentified Participant
And how much and how much would be the cost to be incurred on construction for those projects like which are.
Gaurav Pandey
So that, that you know we’ll have to do a project by project math, you know. So you know the indicator would be to look into our pro forma, you know, I think there you will get some indication on the cost, you know, if you do some indication because you know every project will have a different cost structure.
Unidentified Participant
Okay, that’s it from my.
Gaurav Pandey
Thank you.
operator
Thank you ladies and gentlemen. We’ll take that as the last question of the day. I now hand the conference over to the management for closing comments.
Kshitij Jain
I hope we’ve been able to answer all your questions. If you have any further questions or would like any additional information, be happy to be of assistance on behalf of the management, thanks once again for taking the time to join us today.
operator
Thank you. On behalf of Godrej Properties Ltd. That concludes this conference. Thank you for joining us. And you may now disconnect your lines.