Godrej Properties Limited (NSE: GODREJPROP) Q3 2025 Earnings Call dated Feb. 04, 2025
Corporate Participants:
Kshitij Jain — Investor Relations
Pirojsha Godrej — Executive Chairman
Gaurav Pandey — Managing Director and Chief Executive Officer
Rajendra Khetawat — Chief Financial Officer
Analysts:
Puneet Gulati — Analyst
Pritesh Sheth — Analyst
Praveen Choudhary — Analyst
Abhinav Sinha — Analyst
Parikshit Kandpal — Analyst
Kunal Lakhan — Analyst
Rahul Jain — Analyst
Presentation:
Operator
Ladies and gentlemen, good day and welcome to the Godrej Properties Q3 FY ’25 Results 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 call, please signal an operator by pressing star then zero on your touchstone phone. I now hand the conference over to Mr Shitit Jain from Properties. Thank you, and over to you, sir.
Kshitij Jain — Investor Relations
Thank you. Good afternoon, everyone, and thank you for joining us on Godrij Properties Q3 FY ’25 results conference call. We have with us Mr Godrij, Executive Chairperson; Mr Gaurav Pande, Managing Director and CEO; and Mr, 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 future expectations and may involve risks. 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 to make his opening remarks. Over to you, sir.
Pirojsha Godrej — Executive Chairman
Good afternoon, everyone. Thank you for joining us for Property’s 3rd-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. Calendar year 2024 was a record-breaking year for Godridge Properties. Our booking value reached INR28,800 crore, a year-on-year growth of 69%, and this was achieved through the sale of 26.38 million square feet of area, a volume growth of 54%. This is the highest-ever booking value and volume achieved by any listed real-estate developer in India in a calendar year. Collections and operating cash-flow were INR14,779 crore, a year-on-year growth of 40% and INR6,043 crore, a year-on-year growth of 52% respectively. We delivered project aggregating 18 million square feet across seven cities during the calendar year. Furthermore, we replenished even more than what we sold by adding 16 new projects with an estimated sustainable area of 29.1 million square feet and expected booking value of INR36,250 crores. Our earnings were also the highest-ever with net profits of INR1,489 crore, a year-on-year growth of 124%. Towards the end-of-the year, we raised INR6,000 crore of equity for growth capital through the largest by a real-estate company in India. As a result, our net-debt to equity ratio has improved to 0.23 from — from 0.72 at the start of the calendar year. Booking value in the nine months of the current financial year grew 48% to INR19,281 crore from the sale of 18.2 million square feet of area, a volume growth of 54%. This is the highest-ever Nine-Month booking value and area sold achieved by Properties or any Indian real-estate developers. GCR has now achieved 71% of its annual guidance for booking value for FY ’25, and we remain confident of meeting and exceeding our guidance for the year. The Mumbai region has seen very sharp growth this year with total sales of INR5,155 crores, a year-on-year growth of 104%. For the 3rd-quarter, our booking value was INR5,446 crore from the sale of a little over 4 million square feet of area, a decline of 5% year-on-year in booking value and a growth of 5% quarter-on-quarter. GPL achieved a booking value of more than INR5,000 crores, even though a couple of new project launches, including Godrid Madison Avenue in our new launch in Hyderabad, which is currently underway and in Sector 44 in Noida, which is also currently underway, but both of these have been planned for quarter three and ended-up being launched in the early part of quarter-four instead. This is the sixth consecutive quarter in which Properties has delivered more than INR5,000 crore of booking value because for the first time in Indian real-estate, we were able to deliver INR500 crore-plus launches in five separate cities in all parts of the country with launches of over INR500 crore in value in the West in Mumbai and Pune, in the north in, in the South in Bangalore and in the East in Kolkata. GPL also achieved its highest-ever nine-month collections and operating cash-flow of INR10,086 crore, a year-on-year growth of 50% and INR3,436 crore, a year-on-year growth of 99% respectively. Collections and operating cash-flow in the 3rd-quarter were INR3,069 crore and INR615 crore, respectively. From a business development perspective, I’m happy to announce that Godridge Properties has added 12 new projects in the year-to-date with a total estimated salable area of approximately 16.9 million square feet and total estimated booking value potential of INR23,450 crore as against our annual guidance of INR20,000 crores. This included four new projects with an estimated saleable area of 5.9 million square feet and expected booking value of INR10,800 crore added in the 3rd-quarter. GPL delivered projects aggregating 2.6 million square feet-in two cities in the 3rd-quarter, taking the year-to-date total to 11.9 million square feet of delivery. The slightly lower deliveries in the 3rd-quarter were part of the reason that cash flows in the quarter saw a quarter-on-quarter decline, but we have a lot of deliveries and other construction milestones planned in the 4th-quarter and expect to see a sharp growth in both collections and operating cash-flow in the current quarter. For the 3rd-quarter, our total income increased by 133% to INR1,22 crores. EBITDA increased by 85% to INR280 crores and net profit increased by 161% to INR163 crores. For the nine months, our portfolio increased by 74% to INR4,203 crore. EBITDA increased by 144% to INR1,336 crores and net profit increased by 301% to INR1,018 crores. We hope to build-on this momentum through the launch of a large number of exciting new projects combined with strong sales, we also expect to deliver a record year from the point-of-view of cash flows and earnings. On that note, I conclude my remarks. Thank you again for joining us on this call. We’d now be happy to discuss your questions, comments or for session.
Questions and Answers:
Operator
Thank you very much. We will now begin the question-and-answer session. Anyone who wishes to ask questions may press star and one on the Dutchstone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking questions. Ladies and gentlemen, we will wait for a moment while the question queue assembles. To ask questions, please press star and 1 one. The first question is from Puneet from HSBC. Please go-ahead.
Puneet Gulati
Yeah, hi. Thank you so much for the opportunity. My first question is, if you can share your thoughts about the sustaining sales momentum, a lot on of your sales are also driven by launches. How should one think about the fair number of sustaining sales on a quarterly basis?
Pirojsha Godrej
Thanks,. I think we think we’ve seen pretty strong track-record of consistent sales. As I mentioned in my remarks, last quarter was the sixth consecutive quarter we’ve been able to sell over INR5,000 crore worth of inventory at — I think that’s an industry record. Similarly, we sold-on a sales of over INR500 crore across five cities in all parts of the country. So we do see this sales growth as being quite sustainable. We’ve done ahead of our business development targets for the year already, timing up a good launch portfolio for the next couple of years. So I don’t see currently any challenge in maintaining the kind of strong sales we’ve seen over the last couple of years.
Puneet Gulati
Sorry, sorry. My question is in context of your guidance where to meet your full-year guidance, you need to do about INR700 crores of pre-sales and the balanced unlaunched value of your inventory is also somewhere slightly shy of INR7,000 crores. So what — how confident are you of meeting your guidance here and you’d need a decent amount of sales to run you through, isn’t it or am I missing something?
Pirojsha Godrej
Are you confident today that you look at kind of the track-record of the company over the last year, Q4 does tend to be a pretty strong quarter with a larger percentage of whole annual sales than is required this year to meet our guidance. We will, of course need good sustenance sales and we’re seeing some sustenance sales, but we actually have a very strong launch portfolio as well for the 4th-quarter. So we’re already in-process of launching our projects — our first project in Hyderabad, which is going very well so-far. We’re launching a new project in Noida, which again early signs are very positive. We have additional launches planned in Bangalore, Pune, Mumbai, another launch in Gurgaon. So I think the launch calendar itself is very robust, but we do have also given the last number of launches last quarter, a healthy amount of inventory. So we’re extremely confident of meeting our full-year guidance.
Gaurav Pandey
And just to add-on to that, we’ve already crossed last full-year sustenance figures as already. In fact, the year-on-year growth is about 40%. So the launch numbers are the ones that will drive. Anyways is going on the right trajectory. With the two launches that slip from quarter three to quarter-four will give us the fill-up to strengthen the quarter-four numbers. But that’s still actually quite going Call-IT.
Puneet Gulati
Yeah. Okay. So should we also think that your launch number for full-year will be higher than what you guided maybe start of ’25?
Pirojsha Godrej
Yeah.
Puneet Gulati
Okay. That’s helpful. Thank you so much. And secondly, if you can also talk about what you’re seeing in terms of progress on your Bangalore side. So Bangalore market has picked-up this time. How are you seeing your market-share growing there?
Pirojsha Godrej
You. I think we’ve been very happy with the growth in Bangalore. If you look at it, I think last year as we look-back, while we were extremely happy with the overall sales performance growth of 84% and hitting a total of INR22,500 crore of bookly value. I think where we said we could have done even better is that perhaps last year sales were a little overreliant on NCR with almost a 45% contribution from that market last year. One of the goals for this year in addition to strong overall growth was to see a better balance amongst the different regions we’re in. So if you look at our sales both in Bangalore, which have grown — our Nine-Month numbers in fact are double our full-year numbers of last year and Mumbai has also for the first 3/4 grown at 100%. So I think both of those markets are seeing very strong growth and we’ve had a much more balanced sales performance this year across our top three markets and we’re hoping to also see the Pune market contribute more over these next few quarters. And I think with Hyderabad being our new market entry, we are quite hopeful this quarter, we will see very strong kind of initial outcomes there. One project, as I said, is already in the market. We’re hoping to get the final approvals for the second one and launch that one next month as well. Please to your excellent entry into the hydrabad market also.
Puneet Gulati
Thank you. Understood. Thank you so much and all the best.
Pirojsha Godrej
Thank you.
Operator
Thank you. The next question is from Pritesh Sheth from Axis Capital. Please go-ahead.
Pritesh Sheth
Yeah, good afternoon and thanks for taking my question. First is, Bino, on the launches for Q4, you briefly highlighted some of them. Any broad number of in terms of the total revenue potential that you are expecting to launch this quarter, including the couple of launches which are already in-process.
Gaurav Pandey
Thanks, Pritesh. Pritesh. Just to give you a sort of insight into our Q4 launch calendar and subject to of course, some of these are in approval stages, but some head-start like sector 44 Noida, which is the central city market of Noida, we will have hopefully a big blockbuster launch over there. This is going to be a very meaningful launch for North portfolio. Then we have another launch coming in the central CBD micro-market of 4, which is going to hit the market against the sector 54. Coming down to South aspart from what you just talked about, Hyderabad launches, we have something in fairly advanced-stage of approval in sector — this is like the northern part of Bangalore. We have like 66 acres of land. A large portion of that we intend to launch within the quarter and that is again going to be very significant number. For the Pune market per se, we have a launch planned in. As you would know, we launched a project just last quarter, which incidentally is now Pune’s highest launch ever. So this is going to be very near to that micro-market only in Ninjabad itself. Quite excited about that launch. We hope to launch something in Indore as development, something near Calgata, the recent plotted acquisition we have done. And in Bombay, we have a series of activations and launches ranging from reserve projects that we have to car to to Bhandu, a retail phase of that. So yeah, I think pretty large sort of launch calendar. Difficult to really say how much of a total inventory we would want to launch. It depends in case we realize that some approvals are getting, we might open more inventory and versa. But fair to say that the guidance that we’ve given to you, we should be more or less able to beat that from the launch end itself.
Pritesh Sheth
Got it. Got it. That’s helpful. Just on Mumbai, you know, launch will happen this year or next year?
Pirojsha Godrej
So we’re still hoping to get it done this year, but I think the reason we haven’t mentioned that one of the launches is there is some uncertainty on final approval time, very advanced-stage of approval. So we we’re still hopeful we will get the approval, but then you get the approval also if it starts getting to March, when you get the approval, we may choose to launch it next year so that we have a few weeks to get the launch fully planned and prepared. So I’d say it’s a bit of a 50-50 right now whether that gets launched this year or next. But I it’s either end of this quarter or first-quarter next year.
Pritesh Sheth
Sure. Got it. And just on the launch strategy of late, I’m seeing we are giving little more time to the launches, you know any specific strategy in-place or probably we are just taking considering where we are in the market right now, we are taking a little bit more time to generate as much of EOIs for the project and hence little bit more time for launches or I’m — you can guide me on where I am, what my thought process is. Yeah.
Gaurav Pandey
What happened in-quarter three, we had two launches planned, which is a quarter effect, we did get the approval, but it was almost towards the quarter-end and there is this period where buyers don’t feel like buying in these two geographies. So we took an informed call that after is when the good days for buying properties would start. So we could actually frankly push that at least one of those launches within the quarter, but these are very tangible numbers, whether it’s the Noida launch or the Hyderabad launch and eventually not really playing a quarter game, we’re playing more of a long-term game. But yes, that’s the main reason behind the — the recent movement between the quarters. Otherwise, it is pretty much straightforward that wherever we feel there is demand. That the only thing I’ll say is that there is some amount of price calibration we started wanting for ourselves. So now the fact that we have sold a lot of inventory in some micro markets, our inventory or the launch also is not like very, very massive to our total inventory size. So sometimes there is a temptation to improve profit margin and calibrate the opportunity. So yes, we do once in a while would see that, but that very tactical discipline, nothing really strategic in that sense.
Pritesh Sheth
Got it. And one last, and then I’ll go on to the follow-up. But for NCR, I mean, we have a flattish nine months. Obviously, last year was pretty strong. And considering that now we are more into luxury side of — or premium side of launches in that market, do you think that market from contribution perspective has peaked out for us and might even be lower next year considering we don’t have any volume projects there like we used to have in general? So your thoughts on NCR markets?
Gaurav Pandey
I think it’s a good question. But if I would put it this way, the reason why you saw nine months reasonably flattish for NCR is also some of the launch rates, like sector 44 had that happened in-quarter three itself, the numbers would have looked from a nine-month performance perspective fairly different. And if you go down to the cities like, there are demand and pricing opportunities available on both sides of the spect of the market. Yes, premium also is doing very well and luxury is also doing very well. That being said, do I see that we will have multiple INR3,000 crores kind of launches depend upon the BD portfolio. So if you see what we’ve done in Gurgon specifically, we’ve built a very strong portfolio on the golf course. And on the Noida side, we’ve got something sector 44 phase of which we’ll launch now and maybe the next year and then we have greater Noida parcel. So I think the volume game most likely will be Noida portfolio and the value accerative game would — volume growth will be in world. So yes, I think fair to say that we’ll maintain and grow over and above whatever we’ll deliver this year. But yes, the exponential growth of 50%, 100% that we noticing is also in other markets also a bit of a catch-up game to NCR, right, because that is already doing INR10,000 crores last year. Bangalore, for example, is doing INR2,500 crores. So this course there will be percentage-wise very significant jump we would want other markets to do. But that being said, it doesn’t mean that we would not like to grow our NCR portfolio. But as a percentage of growth will be different.
Pritesh Sheth
Okay. Got it. That’s very helpful. That’s it from my side for now and all the rest. Thank you.
Gaurav Pandey
Thank you so much
Operator
Thank you. Next question is from Praveen Choudhary from Morgan Stanley. Please go-ahead.
Praveen Choudhary
Thanks so much. Good evening,. Good evening, and Rajendra. Congratulations on very strong pre-sales this quarter. I have just one question. Are you seeing any areas, geographies or segments where the demand is looking weaker than, let’s say, six months ago and how are you countering that? And the related question is also a the land banking that you have done in the last six months and the assumption that you may have for the margin, do you think that margin will come under pressure if demand is weaker? Thank you.
Pirojsha Godrej
Thanks, Rudeep. I think we’re continuing to see very strong market, frankly. As I mentioned earlier, we’ve seen INR500 crore-plus launches across five cities in all parts of the country. We’ve seen six consecutive quarter of INR5,000 crore-plus sales. I think these are all indications to us that markets remain strong. We’ve also been looking at pricing. So these are not — these are strong sales at attractive price points above what we underwrote. So in that sense, margins should expand as a result of these. That said, I think there was perhaps some level of euphoria in some markets six, 12 months ago, but perhaps calmed down a little bit. I think the market continue to do very well but perhaps not to the same degree of croppiness that perhaps some of the markets we’re seeing. But — but as of now, nothing we’re seeing concerns us that the fundamentally demand is weakening and there’s anything to be overly concerned about. We like that we’re also very well distributed nationally and also across various micro markets within the cities we operate in. So we’re not overly concentrated on any one geography or any one micro-market, which will allow us, I think, to continue to show growth even if some individual markets slow-down a little. So as of now, I think we think things remain healthy. We’ve, of course taken note of kind of the overall economic slowdown in India over the last few months and some of the global uncertainty that’s still unfolding. But we think the government is taking the right steps. We think the budget was a positive move. We’re quite hopeful that there will be an interest-rate cut later this week. All of this, we think will aid sentiment and this is ultimately a sector that’s quite driven by sentiment. So we’ll keep an eye on all of this. But as of now, we think we remain in a very positive overall market condition.
Praveen Choudhary
That’s very reassuring. Thank you very much. If I have just one follow-up on collections. Your year-to-date or calendar year collection and operating cash-flow has been strong, but just looking at the December quarter, we saw some softness. It could be just temporary. Just wanted to understand if there was any factors affecting that and the fact that next year it will come back strongly. Can you talk about that?
Pirojsha Godrej
Nothing too important here, Praveen, I think we expect a very, very strong Q4. I think it was a little bit low number of deliveries. We only had a couple of million square feet of deliveries off that one of the commercial projects with no collection on. So there needs to be a little bit empty linked to deliveries, which, which we will see quite a few of in the 4th-quarter. And the quarterly number was a little low, but you will see very strong full-year growth and I think very strong growth in the 4th-quarter as well.
Gaurav Pandey
And, because of NGD banks, as you would be aware at NCR, some of the billing milestones has moved from quarter three to quarter-four. So as we speak from a period of time right now, some of these are hitting. So yeah. So some of this is more of a catch-up because of the NGT band that typically NCR sees in Q3.
Praveen Choudhary
Very clear, Gaurav. Thank you and thanks, Pirosha. All the best.
Pirojsha Godrej
Thank you.
Operator
Thank you. Thank you. Next question is from Abinav Sinha from Jefferies India. Please go-ahead.
Abhinav Sinha
Hi. So, couple of questions. So firstly, given where we are on the BD side for the year, so how do you expect this unfolding in the next, say, one or two quarters? And where do we expect the net gearing to be?
Gaurav Pandey
You’re referring to have been a BD. Is that a question?
Abhinav Sinha
That’s right. BD and the corresponding net-debt in the next few quarters.
Gaurav Pandey
I think you know, the acute guiding principles that we have kind of set for ourselves, right? One is that we want to have very robust risk management, which is why we did QIP to manage growth and risk very well. So we would like to have a upper cap of about INR10,000 crores of net and currently our gearing is about 0.23. So we have a significant headroom to play the capital in terms of right opportunities. But also at the same time, you have to balance opportunities from potential of future. One is delivery of current, but we’re also kind of predicting the market for the next one to two years. So there are certain cities and certain micro markets within those cities we are more bullish upon and we will be more analytical driven our decision-making than deployment pressure driven. And to be very fair, if you see generally property strategy has been very irrespective of capital availability, we’ve gone very aggressive in the quarter and taken pause for one or two quarters if we don’t find the deal. So fair to say that you will see a lot of — a lot of growth and lot of acquisitions in the next few quarters, but they can be lumpy in terms of when we feel the micro-market is present in the right operation at the right valuation. So yeah, you’ll see a lot of action on VD, but again, very calibrated, very specific to need base. And within a particular guidance and framework that we set for ourselves in terms of risk management
Abhinav Sinha
Right. And, from a portfolio basis, we are now fairly premium as compared to, say, two years back. But do you see this ratio sustaining here or we, let’s say, head furthermore on the premium ladder?
Gaurav Pandey
See, you’re looking from a growth potential of the top-line. Is that your question?
Abhinav Sinha
So let’s say from a — more from a — how do you plan your ticket sizes or do you want to do more of large three, four bedrooms?
Gaurav Pandey
Got it. I think there is a combination. So let me take a step-back. What is the market — which part of the market will always see a very strong demand agnostic to a cycle would always be a ticket size, which is between INR1 crore to INR5 crores depending on which city we pick-up. That’s always a market that operates agnostic to a cycle. The thing is that when the cycles are in mid-stage to slightly early part of late-stage, consumers always have any aspirational demand. So it’s not really just a ticket size gain, it is a product aspiration that most buyers have. Today, if you see because of the economic growth and what we are seeing in terms of our own sales ratio, we are seeing very strong demand in the premium segment and to some extent even in the luxury segment. But yes, two to three years from today, there will be, of course, an opportunity to reconfigure your products. So in certain cities, you may want to reduce the sizes and in certain cities, you may want to or certain micro markets, you may want to maintain your sizes. Like if I give an example today, the most talked about market from risk management point-of-view is Gurugon, right? But if you see Gurgon’s sales performance, any project which has the right developer at the right-size unit meaning minimum bedroom sizes are right, minimum size is right, minimum kitchen size is right are doing very well even if the ticket size is higher. And then there are projects which are playing a sort of a relatively smaller product game are not necessarily as successful as that. So there is no generic principle. I mean, I know your question is coming mostly from the previous cycle when ticket sizes rise demand. I do think that will happen. But currently, if you ask me, it’s very micro-market specific. People are more conscious about product for the moment than ticket size alone. I think there will be ticket size sensitivity sooner than later, but I don’t see that immediate concern. But yes, there are cities like Pune, for example, is extremely ticket size sensitive. Pune operates till the pre-COVID model that your price accuracy and ticket price accuracy is far more higher, important. Bankers used to be like that, but has moved to more of aspirational today.
Abhinav Sinha
Right. And Gaurav, one final question. So I think you partly answered this, but broadly on Golf Coast road, we have I think, think north of INR10,000 crores worth of inventory with us. So how does this — you see this annually being sold down? Are you going to have like, let’s say, all four projects launched by, say, middle of next year or something?
Gaurav Pandey
I think the good thing about the inventory that we’ve added is like the cream, the cream inventory because from a portfolio point-of-view, this is not even 10% of, say, our portfolio at a company-level. So there is no pressure to sell them fast, right? These are opportunities, which will create the maximum profit margin for us. So we would like to take every one-time, but not have that pressure to sell fast. We would rather focus on margin expansion and quality of sales. Just looking at, as an example, there were a series of, say, booking which we didn’t want to log-in because we had very-high control threshold from quality of sale point-of-view. So I think golf course load still the time we are very much focused on ensuring that customers that are coming are largely end-users and we are able to build extremely good product. I think these will consistently sell well. That being said, there is no reason if we see great demand and everybody being end-users, we cannot sell more, but it’s not driven with the pressure to exit faster. From a portfolio level point-of-view, this is not a very significant inventory, but very profitable inventory.
Abhinav Sinha
Right. Thanks and all the best to the team.
Gaurav Pandey
Thank you, sir.
Operator
Thank you. Before we take the next question, a reminder to participant that you may press star and one to join the question queue. The next question is from Parikshit Kandpal from HDFC Securities. Please go-ahead.
Parikshit Kandpal
Yeah, hi, Sha and Gaurav, congratulations on a great quarter. My first question is that for the year nine months and for this 3rd-quarter, what has been the contribution from the new launches to the pre-sales?
Pirojsha Godrej
New launches to pre-sales. Let us come back here.
Parikshit Kandpal
Okay. And so the other question is that now, I mean in terms of your sales, are you seeing any elongation on the sales closure — closer cycles for the new logic, I mean customer taking
Pirojsha Godrej
Not able to make out what you’re saying. Could you just repeat that?
Parikshit Kandpal
So just wanted some data point. At your sites when you are launching new projects, do you see — are you seeing any trend where the closure cycle is elongating or taking more time for deals to get close? I mean over the last few quarters
Pirojsha Godrej
Good responses almost across-the-board. I do think in more premium malls, the higher up you go the value chain in terms of price points, of course, the slightly longer decision-making take. So I think in some of the larger projects, we would expect that closer time-frames would move-up a little bit. But other than that, I think we’re seeing very strong continued response to launches.
Rajendra Khetawat
And my picture, to your question, new launches to presale is like 70% for nine months and 68% for the quarter.
Parikshit Kandpal
So that was — the question was that now we have only INR7,000 crores to be launched versus the guidance of INR30,000 crores for the year as a whole and we have a large number.
Pirojsha Godrej
Keep in mind, we keep — we do keep buffers in our guidance given the uncertainties of new approval. So we — I think I highlighted earlier that the number of launches we have. So if the question is that we have the launches to meet the guidance
Rajendra Khetawat
Sizing. I wanted to know-how much on a conservative basis, can we upsize this, I mean, for this quarter? I mean you would have already got some sense given that we have only two months left. So some reasonable visibility on getting approval. So what could be the upsizing here? I mean, given that large quantum of the pre-sales coming from the launches.
Pirojsha Godrej
I don’t think we want to quantify that right now. We stick with the INR30,000 crores of launch guidance. It will depend a little bit as we said on some of these can be quite large movements like are we able to launch the project in Master, does it slip to the April quarter. So I think we’ll stick with the guidance for now, but we’re certainly looking to do a large number of launches this quarter. The two that are already definitely happening, Hyderabad, Noida and as we mentioned in five or six other cities, we had opportunities that were working at the final stages of approval.
Parikshit Kandpal
Okay. And just on the embedded margin, if you can highlight what has been the numbers for the nine months and for the 3rd-quarter?
Pirojsha Godrej
Yes. So we’ve indicated that we plan to do this on an annual basis rather than a quarterly basis. But as of now, it’s tracking similar to exactly about last year’s number.
Parikshit Kandpal
Okay. And just the last question on the approvals. I mean, we have seen a couple of projects getting approvals later in the quarter versus ex expectation. So in general, across your key markets, what has been now the trend on getting approvals, we have seen delays, especially in South in last quarter, but I do think that things are now improving and are on-track for getting approvals on-time.
Pirojsha Godrej
Yeah, I think we’re quite happy if you look at the kind of average time to launch for the company, it’s come down quite considerably over the last few years. And while we said, of course, Hyderabad, we wanted to launch last quarter and slips into this quarter, I think it’s important to remember that we only added the land parcel in Q4 of last year. So actually still a very well launch and no real delays and in fact, launched faster than we’d originally underwritten. So similarly, I think the teams have built very strong capabilities in terms of designing quickly, understanding the market, working with the government departments to get approvals on a timely basis. So I’d say that wasn’t a particular skill of the companies a few years ago. I think we’ve gotten better, better at that and now I think quite satisfied with the kind of time we’re taking to launch projects. Of course, we always see in this industry, there is a series of projects and maybe 10% or 20% of projects that get inordinately delayed for one or the other reasons we’ve seen that which we hope to launch in the next couple of months had been delayed for many years. Ashok Bihar is another example. So particularly bigger projects, we’ve not just tend to take a little bit longer in the approval is done well. But overall, I think in all parts of the country, including some of these new markets like Hyderabad, quite satisfied with the progress.
Parikshit Kandpal
Okay. Sure. Thank you,. That answers my question.
Pirojsha Godrej
Thank you.
Operator
Thank you. Thank you. Next question is from Kunal Lakhar from CLSA. Please go-ahead.
Kunal Lakhan
Hi, hi. Good evening. Thank you for taking my question. My questions are actually pertaining to NCR market. And considering your launch, right, we’ve sold about 25% odd in this quarter. This is — do you see any slowdown there because until last year we were seeing projects getting sold-out at launch. And again, the related question is, since we are doubling down on that on the Gulf Force Road in terms of project acquisition also. Do you see that a concern — that is a concern considering the prices there have like gone up like 100% or 150% in the last four, five years and we essentially we are buying land there now at current prices. So do you see that as a concern considering like the sales velocity in the micro-market kind of slowing down versus are we doubling down on the market in terms of acquisitions?
Gaurav Pandey
Yeah. So this is a wonderful question. Actually, every market you tend to have a different long-term strategy. Like I was mentioning some time back, for us, golf course wood is a pure margin expansion play. So we have a lot of inventory in Gurugaon, which is more about asset turnover play this is more of a pure margin play. And idea was from the first launch itself is to establish profit expansion higher than the underwriting margins we have done for the last acquisition also. So just to give you some interesting data point, from this first launch, like you rightly said, say about 25-odd percent that we sold, the profit that we had underwritten in the project, we have more or less — more than half of that underwriting. Now try and imagine that with a 75% inventory and to a good product because the very End-User product if you’ve kind of seen as a product, large room size and all, we feel there’s a lot of opportunity to create value. And theoretically, if you sell, okay, this is more a category for that matter of 50% of inventory, whatever you underwritten as property, you’ve already logged-in. So there is no-risk per se after that. But we’re also trying to establish a margin profile and the pricing for a future inventory that we will sell, which idea is again to do profit expansion. So this is a different product marketplay that we are trying to do in our portfolio. There are some players in the competition in India, not talking about — not NCR who do necessarily only this margin expansion play. We had kind of defined that in our large team of things, which are one or two markets, we can do this kind of a strategy. It’s been working very well for us. So I’m not really worried about it. I don’t — I’m not really targeting a booking value play from Coast core projects. I’m looking more from a value-accretive and strong margin profile kind of a player.
Kunal Lakhan
Sure, sure. Thank you for that response. Just a follow-up on that in terms of like see, if you look at the overall — the total golf course road as well as golf course extension, I know they don’t compete with each other, but still in terms of like the overall micro-market, right, the kind of supply that is expected from, say, the top eight to 10 developers, right, almost each of them planning to launch like 400, 500 unit projects in the next six to nine months, so close to like 4,000, 5,000 units costing, say, INR7, INR8 crore-plus that’s a huge supply in that kind of ticket size, right? Would you be worried in terms of like no oversupply situation in that particular ticket size over the next one year, two years?
Gaurav Pandey
Sure. I think the customer segments are totally different. If I had to give you some amount of thesis to that and so extension road is a great micro-market, we have a project practically more or less sold-out by the neighbor as to crack, but extension micro-market is mostly either for people who are new buyers or who are upgrading for micro markets with sonar road or an SPR or a new Gurga market with wealth creation, they are looking at buying. And while there is supply coming up and we don’t really have frankly, any large project available in that micro-market, it is not at all concerning for the mold for that micro-market. But golf course road is frankly quite the opposite. If you see old projects of Golf Coast road, which have been completed and delivered three, four, five years back, they are currently commanding even higher premium to what we are selling to be very frank. I mean,, we’ve upped the game from a pricing point of margin point-of-view, but there are many end delivered products which are like, 15%, 20% higher to that without going to specifics of it. So this is more of a customer who has, you know, got into a wealth income of, say, INR1 crores to INR2 crores per annum of salary, I’m talking minimum and has a very — either a very stable job or like a CXO or has a very tangible business. And there are sort of ticket size orbits that they have. So you have a INR10 crore to INR20 crore kind of a game, then you have a INR20 crore to INR50 crore kind of a game and then the latest launch of DLF is ultra luxury, which is like 70, 80 and above. So there are certain customers who are upgrading their lifestyle from workforces who look to buy these products and they are — they are very refined customers, they don’t necessarily look at property cycle, they are more product-focused. So I think different segments, different cycles and to just make it academically even more difficult just to play-out a scenario that what-if — and these are the scenario planning, you have a excess supply issue and extension road and you have price correction and just extra, would you see an impact in golf course work? Probably not at all. Because if you see even in the previous cycles across most markets, markets which are aspirational and have extreme lack of land availability, they have a very different consumer base. Like in Bombay’s case, you would — if there is a customer for will always be a customer for, he or she will not definitely buy the property market is low or high, right? He or she may honestly buy a product in say a or lower parade. He or she would definitely want to buy a product car micro. It’s something similar that Wood is the most aspirational market for anyone staying in NCR, let alone just. So the migration for people looking from Delhi to Gurgaon or from golf course to golf course. And what we’ve tried is for ourselves is is being on the sweet-spot that our lower-ticket size product is the say slightly higher-ticket size of an extension road and our max ticket size is lower than, say, a very luxurious completed product of that micro-market. So it’s a very sweet-spot we’re trying to play to hedge any risk.
Kunal Lakhan
Interesting. Thanks. Thanks so much,, and all the best.
Gaurav Pandey
Thank you so much.
Operator
Thank you. Next question is from Rahul Jain from Elara Capital. Please go-ahead. Please go-ahead.
Rahul Jain
Hi, sir. Thanks for the opportunity. Sir, just wanted to check on your strategy in terms of outside the Tier-1 markets. I mean, you have already acquired two land parcels in Indore. I just want to understand what really — what are the factors that you considered before entering a Tier-2 market essentially. And are there any Tier-2, other Tier-2 markets that you’re considering to enter? Yeah.
Pirojsha Godrej
Thanks all. We’ve distributed our acquisition strategy across development projects and group housing projects and we’re keeping it quite. So for group housing, which is the vast majority of our business, we are focused only on the larger cities. Our four core markets are Mumbai, MCR, Bangalore and Pune. We’ve recently decided to enter the Hyderabad market and that will be an important focus going-forward. And opportunistically, we said we will look at markets where we’ve historically had projects places like and the bar, perhaps Chennai. But that would be all from a group housing perspective in the near-future. And one of the ways that we will look to see which new cities make sense to look at for a group housing perspective is by extering the market through plotted development project. And here we are open to doing projects in the top, 20 90 cities in the country. We think development standalone is a great opportunity with relatively low management bandwidth and quick turnaround time. But equally, it gives us an entry point into these markets. Let’s us start understanding how the markets are functioning and will help we believe in crafting our group housing expansion strategy. But for now, from a group housing perspective, we remain focused on only the top few markets I mentioned.
Rahul Jain
Understood, sir. Very clear. And one more on the Worli launch. I mean, what is the ticket size that you’re targeting?
Pirojsha Godrej
We are having final discussional pricing, etc., we have a partner that all of that is still underway. So let us come back to you with that once we’re ready with the launch and all the approval.
Rahul Jain
Thank you. Okay. Thank you.
Gaurav Pandey
Thank you.
Operator
Thank you very much. That was the last question in queue. I would now like to hand the conference back to the management team for closing comments.
Pirojsha Godrej
Thank you. Thank you. 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. On behalf of all of us, thank you once again for taking the time to join us today.
Operator
Thank you very much. On behalf of Godridge Properties Limited, that concludes the conference. Thank you for joining us. Ladies and gentlemen, you may now disconnect your lines.