Godrej Properties Limited (NSE: GODREJPROP) Q2 2025 Earnings Call dated Oct. 23, 2024
Corporate Participants:
Kshitij Jain — Investor Relations
Pirojsha Godrej — Executive Chairperson
Gaurav Pandey — Managing Director and Chief Executive Officer
Rajendra Khetawat — Chief Financial Officer
Analysts:
Puneet Gulati — Analyst
Mohit Agrawal — Analyst
Praveen Choudhary — Analyst
Pritesh Sheth — Analyst
Abhinav Sinha — Analyst
Parikshit Kandpal — Analyst
Kunal Lakhan — Analyst
Sukant Garg — Analyst
Presentation:
Operator
Ladies and gentlemen, good day and welcome to the Godrej Properties Limited Q2 FY ’25 Earnings Conference Call. [Operator Instructions] 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.
Kshitij Jain — Investor Relations
Thank you. Good afternoon, everyone, and thank you for joining us on Godrej Properties Q2 FY ’25 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.
Pirojsha Godrej — Executive Chairperson
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 collection, 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 ’25 grew 3% year-on-year to INR5,198 crore from the sale of 5.15 million square feet of area. And booking value for the first half grew 90% to INR13,835 crore from the sale of 14.14 million square feet of area, which was a growth of 89% in volume terms. This strong growth can be attributed to an extremely strong customer response to some of our new launches during the quarter. Godrej Vrikshya in NCR delivered a booking value of just under INR1,500 crore and Godrej Woodside Estate in MMR, a plotted development project, delivered a booking value of just over INR600 crore.
For the first half of financial year ’25, bookings in our key markets of NCR, Bengaluru and MMR have shown tremendous growth. In NCR, we grew 70% to INR5,424 crore. In Bengaluru, we grew 212% to INR3,889 crore. And in MMR, we grew 114% to INR3,113 crore. With bookings growth of 56% in financial year ’23, 84% in financial year ’24 and 90% in first half of financial year ’25, 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 collection stood at INR4,005 crore for the second quarter of financial year ’25, a year-on-year growth of 68% and INR7,017 crore for the first half, a year-on-year growth of 62%. Operating cash flow stood at INR1,834 crore for the second quarter, growing at 126% and INR2,822 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 10 projects in year-to-date financial year ’25 with a total estimated saleable area of nearly 14 million square feet and total estimated booking value potential of about INR17,500 crore. This includes — this included six new projects with an expected booking value of INR9,650 crore in the second quarter and two new projects with an expected booking value of INR4,800 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 square feet across three cities in the second quarter, taking the year-to-date total for deliveries to 9.3 million square feet. This is the highest second quarter and first half deliveries for GPL.
For the second quarter, our total income increased by 135% to INR1,343 crore, EBITDA increased by 69% to INR282 crore and net profit increased by 402% to INR335 crore. For the first half, our total income increased by 58% to INR2,981 crore, EBITDA increased by 167% to INR1,056 crore and net profit increased by 345% to INR855 crore, surpassing earnings for full year financial ’24.
We started financial year ’25 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 traction in 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’d now be happy to discuss any questions, comments, or suggestions you may have.
Questions and Answers:
Operator
Thank you. [Operator Instructions] The first question is from the line of Puneet Gulati from HSBC. Please go ahead.
Puneet Gulati
Yes. 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 ’26?
Pirojsha Godrej
Thanks, Puneet. Yes, I think we’re on track to do well on the bookings front. We’ve already surpassed 50% of our full year guidance and typically, the second half is significantly stronger than the first half, both for seasonality reasons and otherwise. I think the goal will be to do as well as we can this year and then continue to deliver strong growth on that in the year ahead.
So without getting into specific numbers, which we’ll comment on towards the end of the year, I think given the portfolio we built, given current visibility and 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.
Puneet Gulati
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?
Gaurav Pandey
Thanks for the question. This is Gaurav here. See essentially, what we’ve noticed right now that there is strong price growth in especially markets like NCR and Bangalore. In fact, if I were to just sort of give you a price stack up order, Gurgaon is seeing very robust price growth over the last few 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 related 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 part of the stronger market, more from a forward-looking sort of approach, difficult to find with crystal gate, but if you generally look at the demand and supply hold, you can kind of derive certain estimates.
So Noida, as you would appreciate, land supply is heavily restricted and there is complete lack of say, for example, three BHK inventory. I would say that Noida in the near-term should logically keep 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 keep price action because there is virtually no land supplied 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 the title issues of Bangalore. So whichever projects will hit the market would be reasonable growth may not be as massive what we were seeing 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 six months to 12 months.
Bombay, I’m quite bullish personally on because this market is seeing good offtake and also pricing grew very recently. And Pune, I would say, may not be immediate as much, but say two quarters to three quarters because Pune tends to be a lag to Bombay. And if you see Pune from a demographic point of very similar to what Bangalore is. So it’s not taken up on pricing. So it’s been a sort of a laggard. But give or take two quarters, three quarters, we should see price growth there as well.
Puneet Gulati
And in terms of compared to the prices at which you’ve underwritten, how high are the realizations here?
Gaurav Pandey
I think one of the interesting thing we managed to do is to do consistent business development in last two years, and probably because of the cycle benefit, we’ve been able to enjoy significant price expansion. To give you some sort of broad understanding — to give an example, Sector 146, Noida, the two options that we had bought say about 20 months, 24 months back. We first launched the first phase last September, practically managed to sell it out in three to four months, the launch project was INR2,200 crores. And we saw close to about 10% to 12% or thereabouts above our underwriting level, but the reserve inventory also saw price growth.
But the second one that we launched, which was previous quarters for again, price bump. So essentially in most projects, what we are noticing the market is giving you option. 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% to 15% from an underwriting in most of the parts of the portfolio we’ve seen, of course, there are some projects you’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 10% to 15% over underwriting is what we’ve kind of consistently been able to achieve.
Puneet Gulati
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?
Gaurav Pandey
I think as you would appreciate that typically construction is more — the cost of construction happens mostly on the mid-stage and advanced, because initially, your maximum cost is about excavation, then some of these, especially the north sides, you have these filing that has to be done, which is quite time-consuming but not as capital-intensive.
And your construction speed which significant accelerates will start hitting slab beyond atypical 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 sort of an explanation in Q3, especially the later part of the year.
But 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 peak would be noticeable towards mid part of next year. So starting from later part of the year, continue to the mid part of next year, you should see growth in CoC curve.
But there are items like finishing when the cost tends to be higher than core and shell with the cost with MEP [Phonetic] which is also relatively higher than core and shell, and core and shell usually is higher than excavation. There is always a sort of a CoC lag, in terms of cash flow — net cash flow line.
Puneet Gulati
Right. Understood. That’s helpful. And lastly, if you can share the — your share of sales booking value in the overall pre-sales?
Gaurav Pandey
I think it’s probably shared…
Pirojsha Godrej
First half of this financial year is around 93%.
Gaurav Pandey
93%.
Puneet Gulati
93%. Okay, that’s helpful. Thank you so much, and all the best.
Operator
Thank you. The next question is from the line of Mohit Agrawal from IIFL Securities. Please go ahead.
Mohit Agrawal
Yes. Thanks for the opportunity, and congratulations on great set of numbers. So firstly, if you could touch base on the launch side, you’ve already done nearly 50% of your guidance, so — and typically, second half is stronger, just like presales. So if you could kind of tell us how do you see the second half and would you beat your guidance there as well? And what would be the big projects that you are looking at in the second half?
Pirojsha Godrej
Yes. I think our guidance both on launches and sales always has some amount of buffers for projects shipping out for regulatory approval reasons, etc. 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, the project 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 see a very strong second half of the year from sales perspective.
Mohit Agrawal
So, Pirojsha, Worli would be 3Q or 4Q, if you could specify?
Pirojsha Godrej
I think likely quarter four.
Mohit Agrawal
Quarter four. My second question is on, 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 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 stands for kind of declines, what kind of margin of safety do we have when we are underwriting the project?
Pirojsha Godrej
It’s a great question and clearly, we’re not at the exact same stage of the cycle now than we were three or four years ago. But at the same time, I think if you look at a typical cycle in India, which has been seven to nine years, we’re probably in year four of that. So we actually do think the cycle like we have three or four more years left in it. But I think the land values have gone up and to some extent, kept pace with end property prices.
So we do have to be 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 markets continue to do well, because if we were selling the project rate and using that price, can we achieve an IRR of at least 20% to 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 assuming big price increases or anything when we’re underwriting the project.
I think the good news is we are seeing a lot of opportunities that are meeting this threshold. Across regions if you look at the kind of number of deals we’ve done last year and of course if we raise 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. But I think the IRR threshold is 20% to 25% is what we look at. And from a margin perspective, we’ve got 25%, 30% kind of EBITDA margin.
Mohit Agrawal
Perfect. That’s clear. Just one last question. You’ve done INR17,000 crore kind of a BD that include the post second quarter acquisitions as well. What would be the total land spent on that and how much of that land payment would be pending which would come in future quarters?
Pirojsha Godrej
So that land payment has been done in the month of October. So both — inclusive of both would be around INR1,000 crores.
Mohit Agrawal
This is the pending land payment, sir?
Pirojsha Godrej
No. So this is for the two deals which we have announced post quarter-end. That is INR1,000 crores. And the pending land payment for the earlier deals would be around INR1,500 crores, for the deals which we are signed in financial year ’25.
Mohit Agrawal
And sir, what would be the total land spend that would be in the range of 15% to 20%?
Pirojsha Godrej
Yes.
Mohit Agrawal
Okay. Thank you sir. That’s all from my side.
Pirojsha Godrej
Thank you.
Operator
Thank you. The next question is from the line of Praveen Choudhary from Morgan Stanley. Please go ahead.
Praveen Choudhary
Thank you so much, and congratulations. Very, very exceptional numbers, again. I just wanted to get a sense of any overheating you have seen in the market. And Gaurav, you went through the entire spectrum of pricing trend. 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 will be helpful. Thank you.
Gaurav Pandey
Thanks, Praveen. Largely, if you would ask me, I see a very strong demand uptick. In fact, yes, you’re right, there is some chatter here and there we do tend to read. But if you ask me purely from a ground position, we are seeing quite stellar 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 far higher performance than our underwriting.
Now there is, of course, a degree of market overperformance will differ between what we saw 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 taste, I think I did mention some time back territory micro markets of Gurgaon is seeing good land supply. So we may see a volume action, but I think they will be part of a price saturation sooner than later. But central Gurgaon doesn’t really have any land supply barring a very handful of land pass, even with the government or maybe one of our peers. So that should see pricing action.
Noida is practically, I already mentioned, you’re seeing a clear supply-side issue from a launch perspective by anyone. So anything that is hitting the market is selling out 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 in, in fact, while the festive season has just started and they’re somewhere between Navaratri and Diwali.
And November usually is a higher momentum in my sort of history of launch that I’ve seen. But October is showing very encouraging signs both by the kind of walk-ins we are seeing in our site as well the product we hear from the market. So quite excited and quite strong market.
Praveen Choudhary
Very, very clear. Thank you so much. And then one last question for me would be 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’re 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.
Pirojsha Godrej
Yes, I think in the short-term, first of all, I think growth rates have been over the last couple of years much faster than that 20% while through cycle, we do think 20% is a number we’d like to dive through. I think there is an opportunity clearly in terms to do better than that. We’ve seen both last year and this half very rapid growth rate. So we think it probably ends up quite a bit less than five year sales, and therefore kind of replenishment is perhaps more important than it looks if you look at the 20% growth rate.
Praveen Choudhary
Understood. Thank you, Pirojsha. And again, congratulations. Very, very strong results.
Pirojsha Godrej
Thank you so much, Praveen.
Gaurav Pandey
Thank you.
Operator
Thank you. The next question is from the line of Pritesh Sheth from Axis Capital. Please go ahead.
Pritesh Sheth
Yes. Thanks for the opportunity, and congrats on a great set of numbers. Firstly, again, on the market environment, on the absorption side, since you have had like couple of successful launches this quarter, how you read that, what says what it was probably six months or a year back when projects were literally getting sold out during launch, we still have a healthy absorption rate of 60%, 80% inventory getting sold out. But how you read that? Is it general supply side which is creating, that kind of absorption run rate or you think that certain ticket sizes are going a bit higher and hence we are seeing some bit of cooling off in terms of response there? So just a comment on that.
Pirojsha Godrej
We are expecting any cooling off in our view. And of course, even six months, eight months ago, it’s not 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 be close to sell out kind of responses. So actually, we’re not in a while. There is a little bit of catch-up in somewhere like Gurgaon about market cooling off. I don’t think what we’re seeing on the sales side is really indicating that it’s 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.
Pritesh Sheth
Sure. And secondly, on the approval side of the business, have things started to recover in terms of timelines that used to take, in terms of getting approvals? Because in between post-elections, we saw some bit of slowdown, but have things picked up from there on or it’s still as normal as it was before the elections?
Pirojsha Godrej
Right. I don’t think we 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 right in the middle of the election. We had our best-ever start to the year. And 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 approval and portfolio available for launch perspective, I think we’re going to be confident that the second half will be a very strong period.
Gaurav Pandey
And just to build upon that, Pritesh, if you see our pipeline, within — just to give you this quarter example, places like Haryana, they’ve got the approval, right? Then we have projects in Mumbai and Pune. We’ve got the approval. So I think what probably a learning curve at least for us over the last few years is that these are predictable events in your sort of a year.
And you almost go during the target, which quarter would be a likely time where approvals could be a struggle is how do you become more internally efficient, so that you ensure that you can apply for approvals as early as possible. So I think this is sort of a process change we’ve done internally, which is kind of ensuring that to the large extent, we’re able to mitigate this risk.
Pritesh Sheth
Sure. Got it. And just lastly, on the capital raise in terms of deployment, how much time you will take to deploy that? And second, while we probably reach INR30,000 crore plus presales, what kind of market-wise target do we internally sense that we can generate for all our individual markets like NCR, we were at INR10,000 crore last year. Do we have — are we working on some market-wise targets for other key markets of us?
Pirojsha Godrej
I think we, of course, do have city by city and targets for each area, but it’s not something that we necessarily want to guide towards at this stage. I think NCR Gets crossing INR10,000 crore. Last year was fantastic on that high base in the first half, they’ve been able to grow 70%, 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 INR10,000 crore mark fairly soon. And 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 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.
Pritesh Sheth
Sure. That’s helpful. That’s it from my side, 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. Sir, congratulations to the team on strong numbers. First question is on with the future pipeline of new projects that we are looking at, are we targeting the same sort of micro markets and the overall market, or you are looking to expand into newer cities?
Pirojsha Godrej
So I think the goal is very much to expand within the cities that we are 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, as we’d expect, look to scale in the Hyderabad market as well.
So these five cities of Mumbai, NCR, Bangalore, Pune and Hyderabad are where we 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 project, where we are open to a wider range of cities.
Abhinav Sinha
Right. Secondly on — I also see that some of your commercial investment has sort of reached the maturity level. Any thoughts on how we monetize that, or you’re looking to sort of hold on to those assets?
Pirojsha Godrej
Yes. I think the idea is to gradually build a lead 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 price is greater, our right to win is probably higher, and in 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 think these projects help do that. So there’s no plan to sell them or exit them. That’s the question.
Abhinav Sinha
Right. And one last question on cash flow. So we are seeing higher margins in the project and also higher take rate, which are now north of 90%. So our sort of op-CFS percentage cash flow, which is now around — I think around 35%-odd, where does it settle in, say, couple of years?
Gaurav Pandey
Yes, most probably, yes.
Pirojsha Godrej
From a margin perspective, I think what we’ve guided, Abhinav, is on the net profit margin, we’d like to deliver something above 15% through cycle. Of course, it might probably be higher than that when some of these projects have seen a lot of margin expansion, hit revenue recognition. But I think that’s kind of roughly what we’re targeting.
I think this OCF margin is a good shorthand thing to look at. It’s not something that we are targeting in specific market. It can vary quite a bit depending on construction milestones, in particular projects and things. So I think the kind of reported earnings margins we’re looking at is what I indicated. And we’re seeing, I think, very, very healthy growth in collection and operating cash flow, we expect to grow ahead of that.
Abhinav Sinha
Okay. Thanks and all the best.
Pirojsha Godrej
Thank you.
Operator
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 questions.
Parikshit Kandpal
Yes. Hi, team. Congratulations on a great quarter. So my question is on the launches. So 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, whether new launches will happen there and what are the timelines of launches for Vikhroli land parcel?
Pirojsha Godrej
Yes, on Vikhroli, we have a project that we launched a few months ago. So the focus for the next few months will be on selling that project. I would be hopeful next financial year, we can have a new launch in Vikhroli. And Ashok Vihar is also now looking like a next financial year launch.
Parikshit Kandpal
Okay. And second question is on the fundraise, which you have taken the resolution. So if I see the MMR portfolio, so last year sales, which we had done, average realization of about 16,000, maybe on carpet, 24,000, 25,000. So we are really not there on the premium end of the MMR, which is really large and whereas a brand retail can have a larger market share. 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 parcel format, maybe 50 acres, 60 acres kind of land parcels where we can have maybe 10, 11 years kind of a development, which can be premiumized? So if you can give some color on that, that would be helpful.
Pirojsha Godrej
Sure. First of all, I think in MMR, there’s already been quite a bit of premiumization of the portfolio. We have existing projects currently in the market in somewhere like Maharashtra. Later this year, we’re launching our Worli project. We have a project in Carmichael Road. So there are several kind of premium projects that hopefully will come to market soon, including a Bandra project that we hope to bring to market next year.
But I think the opportunity is across price points. I think something like our launch Godrej Reserve that Gaurav was talking about earlier where we launched in Q4 of last year, sold buildings well and is a very attractive project both from a total scale perspective as well as margins.
So I think we have I think an interesting price points in Bombay. And our goal isn’t to do on the luxury developments which have their own drawbacks. So while the margin might be attractive in some cases, I think that is not necessarily the end of price segments that were most attractive to. But I think the visibility for Bombay business development looks very strong, and we certainly hope to deploy a considerable part of any money we raise into Mumbai portfolio.
Gaurav Pandey
And if you see relative to our average price per square foot, I’m seeing more at a portfolio level, portfolio is an average of markets like Pune, Bangalore, NCR and of course Bombay. I would say the portfolio average price would be much higher for Mumbai portfolio per se because the typical presence that we have, especially in the last 18 months, we’ve had a lot of projects apart from what Pirojsha has added, say projects like Vadala, we have something, in Bandur, we have Vistas and Vikhroli, and all of these are significantly premium projects from a pricing point of view.
Parikshit Kandpal
Gaurav, my view — my point was more from like larger land parcels which may come up for option of bidding. That’s why some of the peers are raising large capital. So are we open to underwriting large like INR1,000 crores or INR1,500 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’re raising capital from — so my question was more front.
Gaurav Pandey
I could say that there is no reason we won’t really participate in — from the [Indecipherable] from the perspective, we are saying definitely we will 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 size within INR500 crore to INR1,000 crore or even beyond if we see the opportunity is right.
So, of course, we do that. The only thing I’ll say, Parikshit, is our length of doing this may not necessarily be what sometimes from a check price for competition could be land banking. Unless they’re very, very certain about the strategy, we prefer to be more about capital churn play. Having said, we would of course evaluate any and every opportunity. But yes, we can sign big checks. Yes, we would love to scale up the Bombay portfolio significantly beyond what it is delivering. But the approach would be more about how quickly can we turn on these projects and make as much efficient use of capital.
Parikshit Kandpal
Okay.
Gaurav Pandey
Does it answer your question?
Parikshit Kandpal
Yes. So one question to Rajendra. So Rajendra, I mean, you touched upon that INR1,000 crore spending from the BD done in Q3 and INR1,500 crore for the rest of the — so entire land payments financial year-to-date for all the land parcel, the pending land bank payment should be about INR2,500 crores?
Rajendra Khetawat
Yes, INR2,500 crores to INR3,000 crores, including Ashok Vihar and other stuff.
Parikshit Kandpal
Okay. And just last, if I may. 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, you can touch upon that whether the approvals are coming in or things have normalized now.
Gaurav Pandey
No. I think for us, it’s been coming quite consistently. I mean, approval in India has been a bit of a struggle typically from last five years. So I won’t say any market in India is difficult relative to the trend. But if you see our projects, like in Q1, we were able to bring wood estates into the market which turns out to be INR3,150 crores of sale, highest for us.
And similarly, we’ve been able to see for this quarter approvals are on track. But Parikshit, it’s not very frankly geography-specific the challenge. For us, it’s more like 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 process is very efficient. But nothing peculiar to Bangalore for us at least.
Parikshit Kandpal
Okay. Thank you, team. Thanks for the answers, and wish you the best.
Operator
Thank you. The next question is from the line of Kunal Lakhan from CLSA. Please go ahead.
Kunal Lakhan
Yes, hi. Good evening. Thanks for taking my question. Just on the fundraise, currently, your promoter stake is about 50%-odd. And post this fundraise, it could go below 50% — or 47%. So what’s the long-term view on maintaining the promoter stake at?
Pirojsha Godrej
Yes. Thanks, Kunal. I think we, of course, not like to dilute much below the levels that we’d 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’d also be locking into this new round of deployment will be frankly quite massive and will allow us to do a lot through our operating cash, but we don’t see any further reason for capital raising.
Even this one, to be honest, if we were growing at 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 year. We do have — see an opportunity to deliver another couple of years a very fast growth, and that’s kind of the logic. But certainly, we wouldn’t see any likely fundraising after this round. There’s certainly no plans when you saw the dilution.
Kunal Lakhan
Sure. And on the fundraise per se, 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?
Pirojsha Godrej
No, I don’t think so. Kunal, one of the big benefits we think we have of having a truly national platform is that we can choose, 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 thing that 20% will be in Noida and x percent in Pune or anything like that. We have a large set of opportunities available that we’re seeing in various markets. I think which of those close 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 doing the NCR market as more positively than the others. If anything, I think some of the markets that haven’t quite seen that full run-up in pricing yet, we 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.
Kunal Lakhan
Very well understood. Thanks so much. One last question is, in terms of buyer profiles, especially for Gurgaon and Noida projects, if you can give some color on what are the profile of the buyers and how many of them typically take mortgages?
Gaurav Pandey
Thanks for the question. As a typical rule of thumb in most projects, what we get to see from mortgage is about 50% to 70% customers tend to take mortgage in the project. And 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 just right now, I’m talking more from the market condition, which we’ve seen evolution for the last 20 years. So you have end users who are very product-driven. Then you have investors which are very long-term rental income-related. Then you have investors which have 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 different strategies on which part of the market share they want to sort of get. If you generally see in Gurgaon portfolio, we’ve done some crazy blockbuster sales, but we’ve intentionally never pushed for a complete sold-out 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. They’re clearly the lowest in the market. And the idea that there is no misspelling in no — almost like not the preferred factor for some of them from a brokerage point of view, but more from a product point of view, people who want to sell our products to customers who want to stay and enjoy the property. So that’s one example, the payment plan that we tend to design.
If somebody wants to buy more than one unit, there’s a sort of process defined which actually lines up to my table and you can really imagine the probability of that reaching to me after so many process. I was just to ensure that you attract the lion’s share of it. And yes, sometimes what may happen is that on the D day, you may not pay a sold out, but look at Zenith as an example for us. We sold INR3,000 crores in Q3 and by now, we sold another INR1,000 crores at incremental pricing and better buyer profile.
So I think these are things that you put in place. But yes, the market will have different types of people who would have different types of needs for buying out a 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. Like I was mentioning sometime by Golf Course was for an example the pure end user market, 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 square feet of commercial office space of North India, so has a very different TG. But yes, if you go to 20, 30 kilometers down the city, you will have different type of developers with different type of customers, investors and the like.
Kunal Lakhan
Great. Thanks so much, and all the best and a very happy Diwali to you all in advance. Thank you.
Gaurav Pandey
Thank you.
Pirojsha Godrej
Thank you. You too.
Operator
Thank you. [Operator Instructions] Our next question is from the line of Puneet Gulati from HSBC Bank. Please go ahead.
Puneet Gulati
Yes. 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.
Pirojsha Godrej
Yes.
Puneet Gulati
So essentially with fundraise, we are targeting much higher. Okay. Secondly, can you also give a sense of what kind of gross — you’ve also added a significant amount of gross cash, now close to INR6,000 crores. And there will be — what part would be stuck under RERA? And when do you expect some of that to also unwind?
Pirojsha Godrej
Sorry, [Speech Overlap].
Puneet Gulati
So you have large — it’s almost INR6,000 crore of cash in your books now. This has grown up significantly on Q-on-Q. How much of it is stuck under RERA? When do you expect it to get unwound?
Rajendra Khetawat
So this is a continuous RERA cash getting accumulated and released as and when the progress. As of now, we have around INR3,000 crores of cash flying into RERA account, which will get utilized for the construction and it will get released as and when the OCs will be received — for the completion percent, yes.
Puneet Gulati
Yes. And is there something in JVs as well, which is still yet to come back to the books?
Rajendra Khetawat
There may be some amount, but not a very significant because now most of our JVs are at the back-end or almost completed.
Puneet Gulati
Okay. Great. That’s all from my side. Thank you so much.
Pirojsha Godrej
Thank you.
Operator
Thank you. The next question is from the line of Sukant Garg from Equible Research Private Limited. Please go ahead.
Sukant Garg
Hi. Hello, everyone. First of all, congrats on the numbers. I would like to ask that in how many projects that we missed basically, how many projects out of the total, we miss the original schedule deadline?
Gaurav Pandey
Sorry, the voice is not clear. Can you please repeat?
Sukant Garg
Yes. Sorry. So am I clear now? Am I audible? Hello?
Gaurav Pandey
Slightly better. Yes, but it’s a little muffled, but please continue.
Sukant Garg
Okay. Hello. Am I clear now?
Gaurav Pandey
Yes.
Sukant Garg
Okay. So I just want to ask that in how many projects, we missed the original schedule deadline and what is the average time of that miss — average time of that — how much the delay of the deadline is?
Gaurav Pandey
You are basically saying what’s the typical schedule timeline, how it happens in operations. Is that the question?
Sukant Garg
Yes.
Gaurav Pandey
Got it. See actually, it depends upon 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 what’s the typical height of the building, right? So a rule of thumb is that for a typical building, it can take as less than three years, it can take as max as five years. Usually, I’m saying 80% of the project will be typically in this.
Again, like the variables I mentioned to you, suppose if it’s more of a high rise is capable like a 60, 70 storeys would, of course, be higher. And if you go to like a 10, 15 storey, 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 three to five years.
Sukant Garg
So my question is about how many days of delay that we usually have in completing a project — average?
Gaurav Pandey
I would say, generally, our estimation-wise, we are fairly bulk of the portfolio do not really see frankly sort of typical delays, but it’s also a bit of a learning for us that in some markets, like specifically talking about, NCR, where National Green Tribunal, has certain guidelines which have started coming in the last three-odd years. And we did, of course, launch projects in the next seven, eight years. That time, we did not envisage that there’ll be [Indecipherable] based rule.
And I’m assuming you’re familiar with the regulation. So when the pollution tends to pick up, there are regulations defined when you need to kind of prescribe and halt construction. And what it does is you not only lose those many days, it takes time for you to re-mobilize and again, speed up, right? So I’ll say — but in the new projects, we tend to now budget for the time in terms of our time and planning and committing externally according with that. So barring aside the typical delays, I would say very handful situations, we will have seen projects getting delayed, but more or less every project gets delivered on time.
Sukant Garg
Okay. Thank you, and happy Diwali to all of you. Thank you. Thank you very much.
Operator
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.
Pirojsha Godrej
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.
Operator
[Operator Closing Remarks]