Godrej Properties Limited (NSE: GODREJPROP) Q4 2025 Earnings Call dated May. 02, 2025
Corporate Participants:
Kshitij Jain — Investor Relations
Pirojsha Godrej — Executive Chairperson
Gaurav Pandey — Managing Director & Chief Executive Officer
Rajendra Khetawat — Chief Financial Officer
Analysts:
Parikshit Kandpal — Analyst
Puneet Gulati — Analyst
Rahul Jain — Analyst
Pritesh Sheth — Analyst
Parvez Akhtar Qazi — Analyst
Kunal — Analyst
Akash Gupta — Analyst
Kunal Lakhan — Analyst
Manoj — Analyst
Presentation:
Operator
Ladies and gentlemen, good day and welcome to the Godresh Properties Q4 FY ’25 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 Sithij Jain from Properties. Thank you, and over to you, sir.
Kshitij Jain — Investor Relations
Good afternoon, everyone, and thank you for joining us on Godrich Properties Q4 FY ’25 results conference call. We have with us Mr Godrij, Executive Chairperson; Mr Gaurav Pande, Managing Director and CEO; and Mr Rajendhar, 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 like — now like to invite Mr to make his opening remarks.
Pirojsha Godrej — Executive Chairperson
Thank you. Good afternoon, everyone. First, let me please apologize for the delayed start. We’re facing some tech issues at our end. So extremely sorry to keep you all waiting. Thank you for joining us for Godridge Properties 4th-quarter financial year 2025 conference call. I’ll begin by discussing the highlights of the quarter and the year-end, and we then look-forward to taking your questions and suggestions.
I’m happy to share that financial year 2025 was another record-breaking year for Goodridge Properties in which we achieved our highest-ever bookings, collections, operating cash flows, earnings and deliveries. Our booking value in the 4th-quarter grew 87% quarter-on-quarter and 7% year-on-year to INR10,163 crore.
This was achieved through the sale of 3,703 homes with a total area of 7.52 million square feet. This is the highest-ever quarterly booking value achieved by GPL and is the first time that we crossed INR10,000 crore of booking value in a quarter. This is also the seventh consecutive quarter in which GPL has delivered more than INR5,000 crore of booking value.
Sales in the 4th-quarter were driven by demand in several key new project launches, including Godridge Riverine and Noida, which achieved a booking value of INR2,206 crore, Astra and Gurugram, which achieved a booking value of INR1,323 crore and Gordridge Madison Avenue in Hyderabad, which is our first project in that market and achieved a booking value of INR1,081 crore. All-in all, 12 new project and phased launches happened during the quarter across five cities.
For the full-year, GPL’s booking value stood at INR29,44 crore, a year-on-year growth of 31% and guidance achievement of 109%. This was achieved through the sale of 25.73 million square feet of area, a volume growth of 29%. This is the highest-ever booking value and volume achieved by any listed developer in India in a financial year. GPL is the only leading real-estate developer that has delivered eight consecutive financial years of booking value growth.
Our sales are the most widely distributed in the industry with only 27% of our booking value coming from our home market of Mumbai and only 13% of our booking value coming from the largest single project. NCR, Mumbai and Bangalore contributed INR10,523 crore, INR8,034 crore and INR5,089 crores, respectively to the booking value for the financial year.
We sold homes with a value in excess of INR1,000 crore across 12 projects in six cities during FY ’25. Customer collections in the 4th-quarter stood at INR6,961 crore, representing a year-on-year growth of 48% and quarter-on-quarter growth of 127%. For the full-year of financial year ’25, collections stood at INR17,047 crore, representing a year-on-year growth of 49%.
This is the highest quarterly and full-year residential sale collections announced by any real-estate developer in India to date. GPL has achieved 114% of its annual guidance for collections for FY ’25 . The record collections also translated into record operating cash-flow. Operating cash-flow in the 4th-quarter stood at INR4,047 crore, representing a quarter-on-quarter growth of 559% and a year-on-year growth of 55%. FY ’25 operating cash-flow stood at INR7,484 crore, representing a year-on-year growth of 73%. This is the highest-ever quarterly and full-year operating cash-flow announced by any real-estate developer in India to date. It was also a strong year for business development. We added 14 new projects with an estimated saleable area of approximately 19 million square feet and expected booking value of INR26,450 crore. This includes two new projects with an expected booking value of INR3,000 crore added in the 4th-quarter. GPL has achieved 132% of its annual guidance for business development in financial year ’25. We delivered projects aggregating to 18.4 million square feet across five cities in the year, representing a year-on-year growth of 47%. This also translated into record earnings for the full financial year. For the 4th-quarter, our total income increased by 36% to INR2,646 crore, EBITDA declined by 2% to INR634 crore and net profit declined by 19% to INR382 crore. For the full-year, our total income increased by 57% to INR6,848 crore. EBITDA increased by 65% to INR1,970 crore and net profit increased by 93% to INR1,400 crore. The record operating cash-flow of nearly INR7,500 crore we generated in financial year ’25, combined with the equity capital of INR6,000 crore we raised through a QIP in December 2024, which will enable us to continue to invest for growth. In FY ’26, we plan to grow residential bookings to over INR32,500 crore, a 20% growth over our FY ’24 guidance — excuse me to our FY ’25 guidance through the launch of over INR40,000 crore of inventory combined with strong sustenance sales. This combined with strong project deliveries should allow us to maintain rapid growth in operating cash flows as well. With a robust launch pipeline, strong balance sheet and sectoral tailwinds, we are confident of continuing the momentum in FY ’26. On that note, I conclude my remarks. Thank. Thank you all for joining us on this call. We’d now be happy to discuss any questions, comments or suggestions you may have.
Questions and Answers:
Operator
Thank you thank you, sir. We will now begin with the question-and-answer session. Anyone who wishes to ask a question may press star and one on your touchstone telephone. If you wish to remove yourself from the question queue, you may press star and 2. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles.
The first question comes from the line of Parikshit Gandpal from HDFC Securities. Please go-ahead.
Parikshit Kandpal
Hi, and Gaurav. Congratulations on a great year. So my first question is on the guidance, which looks to be a little bit guided. I mean, you did mention on FY ’24 guidance, there’s 20% growth, but on actual numbers, the growth looks a little guided. So is it more like you are guiding conservatively and look to outperform to the 20% number? Or is it like because of the current market condition you think that 10%, 11% growth is what we can achieve?
Pirojsha Godrej
Yeah. Thanks for the question. I think we always want to be very confident of the guidance we give. This is an industry with uncertainties, whether on the macro or with launch timelines and so forth. So we do tend to keep a reasonable amount of buffer in our internal plans over guidance. I think 20% over last year’s guidance is actually a pretty strong guidance.
We also have included in our investor presentation our performance on guidance over the last three years, and I’m happy to share that we’ve been able to meet each individual metric of guidance that we have provided. Again, this year, the goal will be to outperform guidance. And on your question alluding to, I think we’re seeing continued strength in-demand for all of our launches.
We just came off our best-ever quarter from both the sales and cash collections perspective in Q4. This quarter is off to a good start with a strong launch underway already for us in Bangalore. So we’re not seeing any signs of concern at the moment and we’ll certainly be looking to another strong year ahead.
But yes, I think after three years of 55% compounded growth in sales, a 20% growth on last year’s guidance and 10% on actuals, we think is pretty strong guidance and certainly, we’d look to outperform it as we have in the past.
Parikshit Kandpal
Okay. My second question is on the skills we achieved in NCR crossing 10,000 and almost 8,000 in MMR. So do you think that even in this year when we have guided for sales, so these two markets can grow or do you think now they are maybe at the optimal levels and there’s no further room to grow from here on?
And also in-line with that, what kind of business development have you planned out for these two markets because these two are the major contributors this year-on the pre-sales. So what can — and what are the buffer plans from other markets which can help us navigate and grow at 10% for this year?
Pirojsha Godrej
Yeah, again, I think the aspiration would be to grow much faster than 10%. But certainly, we think in all markets that we operate in, there is a huge growth opportunity. We’ve looked at the data that suggests that based on prop equity data for the top seven markets, our current market-share would be about 4.3%.
I think over the medium-term, we’d like to take that to double-digits. There is a strong opportunity for growth in each of the markets that we’re in. Our market-share currently in all of these markets would be in the single-digits. Somewhere like NCR, we already saw two consecutive years with over INR10,000 crore sales and a small growth last year despite a kind of 200% growth the previous year.
So I think NCR has demonstrated that ability to retain this kind of sales level and hopefully grow it quite a bit further this year. Mumbai has also been growing very fast at a compounded growth over the last five years of over 40% a year. We have a good portfolio lined-up in Mumbai. So I don’t see too much challenge in continuing our growth trajectory in Mumbai.
And Bangalore and Pune actually benefit from a relatively low-base. Still, Bangalore already saw very good growth last year, but frankly, it could have been even better. We got our approval for one of our major projects in Bangalore that we’d hope to launch last year-on the 1st of April. So that launch is underway and should get Bangalore off to a good start.
So both Bangalore and Pune, we see — we see good opportunities. So certainly, I think the plan will be to maintain the kind of growth trajectory we’ve seen, both at a national level as well as in each geography. And we have separate P&L teams with empowered management in each of the regions we operate in, they obviously each have their own growth aspirations and targets. So we hope to deliver another year of kind of well-rounded growth across all the markets we operate in.
Parikshit Kandpal
Okay. And just the last question on next year’s profitability on the reported basis. So given the delivery guidance we have given, do you think that the mix is now moving towards more profitable projects and more recent projects? And next year, we’ll see a significant turnaround in our resi margins reported in the P&L? And any thoughts on moving to the OCM-based accounting?
Pirojsha Godrej
Yeah, I think we’re following the project completion accounting system and I think that we will continue with that. That’s of course, different than some of our peers in the industry are following and does create a lag in reported earnings. I think we will continue to see improved margins in reported earnings as more of the projects that are owned outright that have been purposely launched at a more premium end-of-the market, start hitting the P&L.
So I think you’ll continue to see that. We expect a very large uptick in reported revenues and earnings around FY ’28 when these last couple of years numbers start fully reflecting in the P&L. So that’s when we expect a sort of step jump-in the reported numbers.
Parikshit Kandpal
Okay. Okay. Thank you very much. And those are my questions. Thank you.
Pirojsha Godrej
Thank you. Thank you.
Operator
Sure. Thank you. The next question comes from the line of Puneet from HSBC Bank. Please go-ahead.
Puneet Gulati
Yeah, thank you so much and congratulations on great performance. Very happy to see cash flows coming in nicely. My first question, but is to start with the pre-sales guidance, which is 10% growth. Do you think this would this time be driven more by volume or there is still room for value to grow on these levels or realization if you grow?
Gaurav Pandey
Thanks for the question. If you actually see FY ’25 as a base, we grew 31% from a booking value perspective. And from a volume perspective, we grew to 29 — sorry 25.7 million square feet at 29%. So largely we feel that the trend will more or less continue. It actually finally Depends on the underlying projects, what APR are we launching? So it’s not necessarily always premiumization or APR hike. It’s also about, let’s say, we launched more of golf course, watch projects. Suddenly you’ll see a very big jump-in the blended APR, right? And why see versa when you see more of plotting developments, you tend to see. But ballpark, if you ask me, we should be able to see a similar trend of both volume and price growth.
Puneet Gulati
Okay. Understood. So in your plan of launches, it would be reflected as a somewhat equal mix?
Gaurav Pandey
Yeah. I mean, but very honestly, it’s very difficult to sort of predict which all launches will perform, how much. So that’s where the mathematical anomaly lies. But yes, I mean, let me answer it this way, do we see good volume growth and good price growth? I would say yes, largely for most of our projects.
Puneet Gulati
Understood. That’s very helpful. And secondly, if you can also comment on how your construction cost is going to trend from current levels. Collections, you’ve given a guidance should one think of construction cost rising at similar level or does it need to increase substantially given that a lot more work needs to be done now?
Gaurav Pandey
See, I would say, if I were to give you a sense of what we are seeing construction — cost inflation in the last, say, two to three years, I think this has been a very stable period of time where most of the cost inflation increases have been controlled. Yes, in some markets, aluminum costs have increased, but steel prices have also dropped, some markets have been flattish to drop, I think. Most likely the cost indices will be — sorry, hello. Yeah, I’m audible?
Puneet Gulati
Yes, sir. I can hear you. Yes.
Gaurav Pandey
So for most markets, cost inflation, I would say is going to be within that range. But yeah, I mean, there is of course, finally, how would oil prices behave? I mean that would be sort of a thing to watch out from a risk point-of-view. And I think interest-rate getting into a sort of a lower cycle, this could really benefit if it continues because the capex cycle will see a boost. So this could have sort of a net positive effect in the long-term. But very frankly, cost indices sort of depend a lot about government policies and how the allied sectors tend to behave.
Puneet Gulati
But from your
Pirojsha Godrej
Add to that, I think some of the global macroeconomic uncertainty due to tariffs, et-cetera, depending how that plays out, it could lead to a further benign cycle on the cost side. We’re already seeing economies from China, US, all underperforming. So of course, the situation is not stable and could change, but oil prices are at a low. These are all indicative of relatively low-commodity inflation period, which would of course benefit us as we enter this heavy execution of several years ahead, but of course, we’ll keep our eye on that changing. But as of now, the cost pressure environment looks relatively benign.
Puneet Gulati
So from your spend perspective, is it likely to increase materially or similar levels as last year?
Pirojsha Godrej
Yeah. I think the overall construction activity will of course be increasing in-line with the sales uptake we’ve seen. So absolute spends will certainly increase. But of course, there will absolute collection.
Puneet Gulati
Okay. Understood. That’s helpful. And lastly, on the business development side, I know it’s quite difficult to give guidance and you’ve given a INR20,000 crore guidance, which looks pretty low compared to what your aspiration of sales would be. Any thoughts on how one should think about it?
Pirojsha Godrej
Yeah. Yeah. I think honestly, we wonder whether having something like business development guidance really makes much sense, but since a few of you have asked us to provide it, we’ve tried to do so. I think what we think is that there’s certainly — we should never come under pressure to meet business development guidance.
We should only do deals if on a standalone basis, they make sense. So frankly, I would say this, in our view is a bit of a low-ball guidance. We’d be very surprised if we don’t significantly surpass this. I think we’ve on average over the last three years, surpassed this BD guidance by about 60% on average.
And we’re continuing to see good opportunities and continue to see good results from the launches of those opportunities. So I think both the intent is still there. The availability seems to still be there. So I think we’re quite optimistic that we can do better than this. But again, we don’t want to provide a number and then feel that we have to do deals to get there. This is a kind of generally a quite uncertain environment for the sector. So we’d rather kind of hopefully under-promise and over-deliver here.
Gaurav Pandey
And just to double-click on it, if from a leading question could also be from a growth risk point-of-view. And the good thing is the fantastic one of last three years, we have a series of projects and phases that we will launch of a cumulative booking value of about INR55,000 crores because a lot of assumptions have — from what we were launching, those projects have seen price hike. So there’s a lot of unlaunched phases and lot of new deals we’ve acquired in the last 1.5 years, two years.
So close to INR50 cro INR55,000 crores worth of inventory we have. And then overall, we anyways have INR1 lakh. So the need for business development is to then we see opportunity for even stronger to drive. So like rightly mentioned, it’s not something out of desperation we want to do, but yes, this is something more like a hygiene minimum BD would like to have.
Puneet Gulati
Okay. Understood. That’s very helpful. Thank you so much and all the best.
Pirojsha Godrej
Thank you. Thank you.
Operator
Thank you. The next question comes from the line of Rahul Jain from Elara Capital. Please go-ahead.
Rahul Jain
Hi, sir. Opportunity. Sir, couple of questions. First one is on the INR40,000 crore of launches.
Operator
I’m sorry to interrupt Rahul, could you please be a little louder? Thank you.
Rahul Jain
Is it better now? Hello.
Operator
Hello. Yes, please go-ahead.
Rahul Jain
Yeah. So my first one is on the INR40,000 crore of launches. Does this include Ashok and the Bandra project? If you can update on both the projects, please?
Rajendra Khetawat
So both of those would be in our launch plan, but not — as I said last year as well, I think in this industry, giving guidance, you should expect some things are not going to go exactly according to plan. So we do have buffers in the guidance we gave on all parameters. So for example, last year, we gave a guidance of INR30,000 crore of launches and actuals were 36,000.
Even with 36,000, several projects that we would have liked to launch didn’t get launched like, like our Bangalore project in Devan, like Ashok Bihar itself. So there is considerably more than INR40,000 crore that could get launched if everything goes perfectly. But I think the number we are confident of sharing with all of you that we will meet even if a few things don’t go right is this INR40,000 crore. So Ashok VR is something we plan to launch this year.
But if it doesn’t happen for any reason, that doesn’t mean that we will not be able to do the INR40,000 crore of guidance. Got it, sir. And on the Bandra project,. That I think will — we were — we’d be happy if that launches, but if at all, it would be towards the end-of-the year. So I’d say that we should probably assume we need one more year four, but the teams are trying to do it by the end-of-the financial year.
Rahul Jain
Got it, sir. Sir, second one is on how are you seeing the conversion rates in FY ’25 relative to FY ’24? If you can give us the year-on-year comparison versus you know, specific to the markets as well.
Gaurav Pandey
You’re talking about conversion rates as in walk into conversion, you’re saying, I mean how many customers is okay. I mean this is very — yeah, it’s very, very divergent to be very frank, I mean it can go as low as say 7%, 8% and can go high as 22% to 23% and sometime even 25%. It depends upon very frankly, the value proposition that the person coming into the site sees from price, product and payment plan, right?
So generally as a rule of thumb, when you see anything which is slightly lower in API, generally as a rule of thumb like plotted and all the conversion rates can even be higher. But yes, when you look at a ticket size of INR10 crores, INR5 crores, INR15 crores, it’s an informed call. So it can be between 10% to 15%, yeah. But like I mentioned, the range is quite diverse, but rule of thumb, you can say 10% to 15%.
Rahul Jain
Got it, sir. And one last one. I think lately in the markets, we are seeing a lot of builders of coming into play in terms of new launches. If you can just share what is your share of in the percentage of total sales?
Gaurav Pandey
Yeah. See, we don’t tend to push much of subvention other than say in negative units as in the units that don’t have great views and the likes of it and they hover in typically low-single digits at any point of time. And usually, we tend to push wherever the last stage of completion of project is coming. So it looks more like optical subvention, but say year, year and a half or two years, you are going to see OC and you just want to sell the units which have negative view say facing a railway track or the Category inventory as you Call-IT?
Rahul Jain
Okay, sir. Thanks.
Gaurav Pandey
Thanks.
Operator
And the next question comes from the line of Pritesh Seth from Axis Capital. Please go-ahead.
Pritesh Sheth
Yeah, thanks for the opportunity. First, you know, a very strong performance in Q4 and overall for the year. So see, I think while industry has been flattish to marginal decline in terms of volumes, we have clocked 29% volume growth. What do you think is driving customers out of their existing homes to buy these new homes from you so anything specific you want to highlight? Because I mean, do you think market has got tough and it needs some additional sales push to drive these kind of sales? So your thoughts on that.
Gaurav Pandey
Thanks, Pritesh. Actually, if I be very candid and honest, I — we’ve been reading for the last at least one plus year negative — lot of negative chatter on newspapers and market is slowing down. But to be very frank and honest, when we see our launches, our numbers move-up and down mostly our ability to get launch approvals on-time and break it to the market.
So if you see quarter one last year, we had very good launches, so the number was very big. Unfortunately, quarter two and quarter three, some launches were spilling over we had a reasonably decent quarter. But quarter-four we could get most of our launches and still some actually frankly, still we got a sort of a fantastic INR10,000 crore number and ended the year at a very good number.
So for us, I think because we are very diversely spread and our products are also not in one city or in one micro-market of a city, we are seeing very strong demand. That being said, your macro question on what is driving demand. I think it’s simple wealth creation and aspiration in India, right? If you just look at some data points depending on which report you refer, give or take, India’s GDP is going to get doubled into next five to seven years.
We would get into a sort of a — again, IMF World Bank, which report you referred to, we could grow about $30, $35 trillion in the next ’25 by 2047 and the discretionary income is creating a lot of aspiration, right? I think some of the macro factors of course, impacts your concurrent demand in a particular quarter in the year, but I think the macro-environment looks a little bit more positive in the last three, four months than say what it was say 12 months back because one, the government is pushing a lot of things for the improvement of the disposable income, like the INR12 lakhs kind of a thing will increase demand for the consumption-led sectors, which will create a dominant effect by those people feeling secure about their jobs and therefore buying homes as well as things like monetary policy, reduction of interest rates.
So I think a combination of wealth creation, economic looking good, government bringing some real strong action in the short-term, I think is amplifying. But I do feel that for customers, one trend I have noticed in the last, say, two to three years gradually changing is consolidation is again becoming more dormant, right?
So I think with time and maturity and products becoming more selective, customers would want more predictability of their occupancy coming on-time and what reputation the builder brings. So I think there is going to be sort of a gradual shift in the next four to six quarters where each quarter see a better sort of consolidation story for corporate developers or large developers yeah.
Pritesh Sheth
Sure. So I understand the macro part. And just specific for you, it’s the consolidation which is driving the demand for a brand like us or anything specific you are able to
Gaurav Pandey
I think diversity, Pritesh, I think diversity of being very strong operative teams on grounds in all the markets, right? So if you see some of our peers have struggled entering a new market by their understanding of local laws or consumer demand, right? I think for us, we’ve had a share of learnings 15, 20 years back. Back. So having operative teams on-ground makes the predictability of your product price proposition very accurate, right? And just being very focused on our launch calendar, seeing that every market has backup plans because there is strong demand, right? The only challenge could be our ability to bring a launch into the market or not?
Pritesh Sheth
Yeah. Got it. That’s helpful. Second is on the micro-market or market-wise contribution, which is baked into your guidance, do you think large part of the growth that’s going to come next year is going to be Bangalore and Pune driven because they are still at low-base I mean Bangalore, Pune, Hyderabad, all these other markets while NCR and MMR remaining kind of flattish?
And beyond next year, I think initially you mentioned about having a double-digit kind of market-share. Right now, as your presentation points out, we are a INR7 lakh crore market, then our presence should be around INR70,000 crore in future, let’s say, if market doesn’t grow. Do you think the current scheme of markets are enough to contribute that INR70,000 crores? I mean, can you pull off like INR, IN 10,000 crore, INR10,000 cro I 15,000 crore each from in these large markets? So your thoughts around that?
Rajendra Khetawat
Okay. Yeah, thanks. Thanks for the question. No, I don’t think that we will depend only on the smaller markets for growth this year, I think there is a good opportunity to grow strongly in both NCR and Mumbai. It will depend a little bit on the launches there coming through. But certainly, we have a very healthy pipeline in both of those markets. As I mentioned, NCR has seen two consecutive years of INR10,000 crore sales.
Mumbai is has grown fast now for three, four years in a row and we hope to do that again this year. And certainly Pune and Bangalore also represent opportunities. I think the double-digit market-share is, of course not a very short-term aspiration. It will take us a while to get there. But our view is that we can consistently outgrow the market given the strength of the brand, given the strength of being perhaps at least for now the most national real-estate developer in the country and with a very moderate market-share in all the markets we operate in.
So I think what’s very exciting for us is that if you look at all of our top four markets this year for the first time, we would be either number-one, which we were in Pune or number two, which we were in Mumbai, NCR and Bangalore by sales value. And in all of those, despite being one of the leaders, we would have a single-digit market-share, implying to us that there is opportunity for significant growth in each of those markets.
And of course, there is over-time also an opportunity to enter new markets as we have with plotted development and even as we entered Hyderabad with group housing. So I think the opportunity landscape to us looks very exciting and it’s not just a two, three year sort of timeframe we have in mind. There’s a couple of decades of very strong growth opportunity ahead of us.
And I think that’s the exciting part of being in residential real-estate today. It is a fast-growing sector. But quite aside from the sector’s growth, there is this huge market-share gain opportunity, which we have been consistently able to tap into over the last several years. And I think one of the things we’ve been happy about and we also included a slide in our investor presentation is that we have seen the ability to grow the business across various cycles.
So last year was our eighth consecutive year of booking value growth that includes years such as when COVID started, when some of the major reforms like Rayra we introduced the NBFC crisis. So I think the advantage of having a strong presence, a strong brand, but a relatively small market-share is that irrespective of how the market performs, there is a market-share gain opportunity that remains. And if we’re able to execute well against our plans, we do see that ability to year-on-year grow market-share.
Pritesh Sheth
Yeah. Got it. That’s very helpful. And just one last on the cash flows, so we had a surplus cash-flow for this quarter despite spending around INR2,700 crores on BD. How do you think the next year would be in terms of the surplus cash flows as well as the net-debt? I mean, are we now going to continue this trajectory and be cash-flow positive at the FCF level? So, yeah.
Rajendra Khetawat
I think it will entirely depend on the quantum of business development we do, which as I was saying earlier, we want to measure business development more project-by-project rather than looking at abstract numbers at the company-level. Each deal needs to make sense on its own merits. We need to be confident that the risk-reward for each deal makes sense.
If that — if we are confident, you know, we would be happy to do double our business development target for the year, which of course would require a different amount of cash investment than if we do INR20,000 crore. But certainly, if we were to only meet our business development guidance, I think we would be operating cash-flow post BD positive this year as well.
But I suspect we’ll do a little bit better than guidance and therefore, we are happy to invest capital into growth as we have over the last few years. And of course, having raised the QIP, the goal is to deploy that capital. The constraint we’ve set ourselves now is that we’d like to keep net-debt below INR10,000 crore instead of looking at a net gearing target, we’re looking at an absolute net-debt cap. So I think we can use that for the maximum that we will go to.
But within that, it will be more a question of the scale and quality of deals we see. We’ve guided to INR21,000 crore collections, which is 40% higher than our last year’s guidance and 20% higher than actuals. And so hopefully, we can do that or better on collections. Operating cash flows should therefore be extremely healthy.
The question of whether they are post-BD positive or not is a question of the amount of BD we do. Honestly, we’d — my hope for this year would be that we’d continue to find good deals, continue to find opportunities to maintain this more rapid growth trajectory we’ve seen. I think a lot of value unlocking can happen for the business by sustaining the kind of rapid growth we’ve seen . If you look at our imputed numbers, these are very, very-high returns on equity, returns on capital. So we’re quite happy to deploy further capital if we see good opportunities on an ongoing basis.
Pritesh Sheth
Perfect. Thanks for answering my questions. All the best.
Rajendra Khetawat
Thank you. Thanks very much.
Operator
Thank you. Thank you. The next question comes from the line of Parvesh Kazi from Nuvama Group. Please go-ahead.
Parvez Akhtar Qazi
Hi, good afternoon. Thanks for taking my question and congratulations for a great set of feedback. So two questions from my side. For FY ’25 as a whole, what percentage of our sales would have come from, let’s say, available inventory or sales and what would have been the contribution from new launches. Okay.
Gaurav Pandey
Okay. Very frankly, I wouldn’t have the number off-hand, but yeah, I mean if you largely look at a calendar, you know we would have — every quarter, give or take about 65% to 70% numbers would be coming out of launches and residual could be a phase launch or sustenance, give or take.
Parvez Akhtar Qazi
Sure. And did I get the number correctly? You said we have about INR55-odd thousand crore of available inventory across phases available-for-sale going ahead. Did I get the number correct?
Gaurav Pandey
So let me maybe reclarify. So for the acquisitions we’ve done, say, from FY ’23 onwards till now, we’ve launched some projects have yet to launch and the price growth has also happened. So between INR50,000 crores INR55,000 crores worth of inventory we have from this fresh inventory of acquisitions, which are largely outright in nature.
And then a total inventory of — even we have some township project like and all total inventory would be in excess of INR1 lakh crore, about INR1 lakh INR10,000 crores.
Parvez Akhtar Qazi
Sure. Secondly, I mean there has been a very strong growth in collections and OCF. That also has been accompanied by an equally strong growth in our land and approval related outflows from about INR5,300 crore in FY ’24 to about INR9,000 odd crores. Now that we are sitting on a very strong inventory, where do we see this trajectory going ahead in terms of land-related outflows.
Gaurav Pandey
So I think if you see most of the launches, so we have — in our entire portfolio, we have different sorts of projects, right? So we have some projects which are township projects. So in places like Pune and places like part of Mumbai portfolio, we have huge inventory. But again, the idea is to create value in the long-run.
We have some inventory even in Ahmedabad for that matter, right? So these are large-scale projects where the endeavor is to create value in the long-term. So more like a land banking strategy we had with frankly, very, very low invested capital. And then the second strategy, which is largely about buying land and doing churn very fast and unlocking and creating high PAT margins where the market opportunities continue to exist.
So some of it is through the acquisition right now and we would continue to buy a land where we feel that our ability to turn them around within six to 12 months is very-high and our ability to improve our overall margin profile exists. So if you look at some examples like in Bombay, we bought something in the by the name of Godrid Reserve.
And if you see it is a very, very sizable land parcel, very sizable investment we did. But in the last two-odd years, first year we sold INR2,700 crores and last year we sold INR1,600 plus sort of crores. Similarly, in another market of Bombay, we bought a project and launched in Mahalakshmi, we did about INR1,100 crores just last year.
So again, these are coming out of an investment thesis that, yes, these projects can be churned very faster and these are places where the demand — organic demand is very-high. These are city-centric projects unlike the township project which are slightly off city center. There I think the idea is to add more projects.
Parvez Akhtar Qazi
Sure. Thanks for your answers and all the best.
Gaurav Pandey
Thank you so much.
Operator
Thank you. The next question comes from the line of Kunal from Bank of America. Please go-ahead.
Kunal
Great. Thank you. A couple of questions on your imputed margins. The first one is, given that you have 50,000 55,000 of inventory available from some of the recent projects, is it fair to assume that the visibility on achieving imputed EBIT margins of give or take, 26% 27% still exist for the next two-odd years. And then just as an extension to that, as you would undertake the next phase of business development, INR20,000 crores plus, the margin profile that would come alongside that new business development, would it be very different from what you are achieving currently?
Gaurav Pandey
Thanks. I mean, the first question is a very quick one. I mean, yes, the endeavor will be to continue maintaining and improving our margin profile. And I think like was mentioning the reason for having a, frankly a very conservative business development target is to actually look at these which at least meet these margin profile, if not more and that too in a way that we feel capital churn can be very fast. So yeah, I mean, we expect that these should be a long-term trend that we would like to maintain.
Kunal
Got that. And just a quick clarification. Again, is it fair to assume that the number reported is all sort of all operating margin profile and devoid of any onetime benefits for the year?
Gaurav Pandey
Yes, yes, you’re right. All operating margin.
Kunal
Okay. Thank you so much.
Gaurav Pandey
Thank you.
Operator
The next question comes from the line of Akash Gupta from Nomura Research. Please go-ahead.
Akash Gupta
Hi, hi, sir. Thank you for taking my question. My question is on the imputed EBIT margin for FY ’25, so despite having higher economic interest on our pre-sales, our imputed EBIT margins have declined from 26.8% to 26.2%. Just wanted to understand why. My second question is that why is there a delay for the Ashok Wihar project and the Bandra project? Thank you.
Pirojsha Godrej
Yeah, thanks for that. I think the imputed EBITDA margins are essentially flat, 26.8% and 26.2%. This is largely led by individual project, the lead mix, for example, in the base year, which is FY ’24, we had gotten a couple of Noida launches where the land cost to booking value was 8% because of the tremendous movement in the market that year and the very timely acquisition. So I think we think it’s broadly in-line. And actually at the PAT level, we had guided 10% to 15% margin.
We’re actually slightly above that this year. So I think reasonably happy with the margins achieved during the year and again, don’t really see them as very different than the previous year. And the reasons for the delay in Bandra are the site clearance, et-cetera, is a slum redevelopment project has taken more time than anticipated. It’s not a process that we are directly involved with. It’s a partner working on that, but there has actually been tremendous progress during last financial year.
So I think there’s much better visibility now than ever before and we’re hopeful that we can do it by the end of this year, but I think one should assume next year is probably the safer bet for that. Ashok, we have — there has been an issue that affects the whole market where there are a lot of trees on the site and the relocation of that trees requires significant approvals.
And given the environmental issues in NCR, this has become an issue taken-up by the court. So we’re again hopeful that we’ll see good progress this year. The only silver lining in Ashok is, of course our underwriting terms have now drastically changed as the market has improved. So if we are able to now launch it this year, actually, this delay may have ended-up being a benefit. But of course, we don’t want to stretch that logic too far and of course, are looking to launch the project as soon as we possibly can.
Akash Gupta
Understood. And sir. And just a follow-up question on the imputed margin. So if I understand, the prices at which we are launching our projects versus the prices at which we have underwritten our projects, there is a difference. I mean, we are getting benefit of price appreciation. So why isn’t that flowing into our EBIT margins.
Pirojsha Godrej
No, I think it partially is. These are also estimates of cost to completion, there would be reasonable buffers in those estimates.
Gaurav Pandey
Yeah. We’ve also been maintaining — because as you would appreciate that these are forward-looking number and we just want to be a little bit more cautious on the contingency and escalations that may or may not happen from a cycle point-of-view. So just built some buffers before releasing out these numbers. So as to sort of not give a sort of over-optimistic figure. But yes, if things remain what they are in terms of cost indices, this has an upside risk to it.
Akash Gupta
Understood. Thank you so much. Best of luck.
Gaurav Pandey
Thank you. Thanks.
Operator
Thank you. The next question comes from the line of Kunal Lakhand from CSLA. Please go-ahead.
Kunal Lakhan
Yeah, hi. Thanks for taking my question. Just on the — just one bookkeeping question first. Like what’s the value of the unsold inventory that we have for the books?
Rajendra Khetawat
Around INR53 crores — INR53,000 crores.
Kunal Lakhan
Okay. Just I’m going to the guidance of INR40,000 crores. Like if you just go by what we did in say FY ’25, like almost out-of-the INR29,000 crores of Sales, two-third came from new launches. And if we plan to launch about INR40,000 crores of inventory next year, assuming we have a very similar run-rate, but then we are just being a little too conservative either on the unsold inventory monetization or how should we read this?
Rajendra Khetawat
Yeah. Guys, I think again, our philosophy on guidance to be conservative, you can read that how you’d like to. We’ve provided kind of our track-record on guidance. This is an industry that’s inherently uncertain. I think some of our peers have on occasion badly missed guidance by kind of probably disclosing what their internal plans are as guidance. We don’t want to do that.
You’re right that if — if we are able to launch almost everything that we can launch even close to on-time and we see the same sell-through rates that we’ve seen over the last two years, there will be significant overperformance of the guidance we’ve given as there has been in some recent years. So we’re quite hopeful and that will be the endeavor.
But we don’t want to be talking to you guys in six months and feeling very sheepish that we’re at-risk of missing the guidance. So we are confident of meeting this. Of course, in some very bad scenarios, even this — it’s not like this is lower guidance, it’s 20% over last year’s guidance in — after a period of 50% plus CAGR for several years.
So I think this is at the end-of-the day also a number that has never been delivered in terms of sales by any developer in the country. So it’s not that we’re giving very, very low-ball guidance by any by any stretch. But certainly, you’re right to assume that if we are able to deliver the same performance on launch timelines and the same performance on-sales through — sales throughput, we will exceed this number?
Kunal Lakhan
Sure. That’s helpful. Secondly, on the cash-flow side, if you look at our spend on construction even for the full-year, it’s about INR5,500 crores for FY ’25. I mean, considering like we are selling 25 million square feet this year, we sold 20 million square feet last year, this spend on construction seems a little lower. This should materially ramp-up, I presume. I would have that context, how should — how should we look at cash flows, operating cash flows also?
Gaurav Pandey
You’re absolutely right. I think, so as you would see that many of these launches were fairly high-rised building. So a lot of time goes in your piling work, excavation works. In places like Hyderabad, you also have to do something like control blast because the terrain is very rocky and most of our first 30% 40% so that the quality of sale is very-high, especially 20% to 30% is more time linked so that the quality of sale is very-high. But fortunately, with most of the things on the excavation, piling and foundations, I think the COC figures will jump and the exciting part is that we typically have 20% to 30% length level and about — from regulation, you can normally collect 70% up to structure and then the rest well post structure, which is finishing and all.
So the exciting part is we now have a lot of good opportunity to accelerate construction, which will benefit both COC jump, but also will improve our collections trajectory significantly, which is why if you notice on the back of close to 49% growth in collections from INR11,400, thereabout crores to INR70,000 plus crores, we are now guiding INR21,000 crores kind of collection figure.
Now operating cash-flow, very difficult to really put up a number, but I think the long-term average, you can always assume that we are consistently increasing year-on-year on operating cash-flow and becoming a more self-efficient way. So I see that trend will continue now, frankly, it depend upon our ability to execute all the projects well. So if we do everything well, this could be even higher than this year and with some degree of this could be slightly lower also. But yeah, I mean, it’s all going to be in the most likely rising trajectory as we move from the one year to next year.
Kunal Lakhan
Sure. Thank you. Thank you. That’s very helpful. Thanks so much. Thank you.
Gaurav Pandey
Thank you.
Operator
Thank you. The next question comes from the line of Manoj from Geometric Capital. Please go-ahead.
Manoj
Good afternoon, sir, and, and congratulation on good results. As you said, you have an aspiration of double-digit margin on the MM macro markets and you have already told that India are bullish on real-estate in a longer way also. So it is a good dominance to be double-digit money in any macro market. So what more new you would have to do for that and what better you have to do what you’re already doing.
Gaurav Pandey
I think we like to take one-step at a time. I think was rightly mentioning that this is a massive opportunity for us to target towards from a long-term. But if you just try and see from what happened in three years from INR7,850 crores to now, our market-share has more or less moved from 2.5 or thereabouts to about 4.3. So just moving one or two percentage in a fast-growing market has a huge massive impact from a booking value.
So I think we’re actually doing sort of a reverse engineered question for ourselves, which is that what do we do to execute these projects extremely well so that the profit that we’ve already locked-in to begin with that gets into accounting, point number-one. And point number two, we have four massive big markets where some markets have started performing to a sort of a good potential to like INR8,000 crores INR10,000 crores like Mumbai and North, how do we grow this internally the aspiration is to continue growing at 20%, but at the same time, how can we especially grow markets like South, which has a huge potential and Pune, which has started firing for us.
So yeah, I mean which is why how we’ve given you guidance. So I think the guidance that we’ve given from a sales perspective is something we would like to achieve as a hygiene. And with that hygiene, I think the real challenge and focus will be to speed-up execution and layering that with good BD, good launch pipeline or can we beat these in the medium-term to long-term each year-on year is going to be the aspiration.
So I think we are on the right track. We’re not really targeting immediately to get into double-digit. We already clearly, number-one give or take at least 30% to 40% than our nearest competitor. So it’s not a booking value give at least for us, it is a more of a margin expansion and execution game from here on.
Manoj
Okay.
Gaurav Pandey
The growth is sort of hygiene now for us, yeah.
Manoj
Pardon?
Gaurav Pandey
Yeah. I’m saying growth is more or less hygiene for us now, it’s to look at other buckets of performance. Yeah.
Manoj
Okay, great. So as you were talking about the margin, so I understand margin is 360 degree from many things, sales volume at what price the land was bought and you talk about how fast the project has been turned around. That is also one factor while doing a BDA. But how to — how much there is a minimum balance, okay, there is a project which you can faster turnaround, you may have a lower-margin, but what should be the minimum base margin you target while doing a BDA, is that much margin we should have even if the project is a early turn because of the every risk the project carries. Is there any something on that?
Gaurav Pandey
Yeah, but I think, sometime back mentioned that generally we’ve historically been saying 10% to 15% margin. But I think of late, we have been targeting up to 15% PAT margin. And I think the kind of deals we’ve been able to secure, there have been many projects where in fact, we’re delivering slightly better than even 15%.
So I think give or take 14% to 15% PAT margin is what we’re looking at. Of course, there are plotted development where this goes up to between 20% and 25%, even 30% of PAT margin. But at a portfolio level, I think 15% is what we want to consistently do.
Manoj
Our past BDAs and unsold inventory carries that kind of margin, which we will sell-in future in next two, three years.
Gaurav Pandey
So depends. See, the project that I talked about from FY ’23, the inventory that should be making this, then the land parcels that we bought are like in Panvin or could be — could be in similar range, but in Ahmedabad, it could be slightly lower and places like Ashok Via, this could be significantly higher.
Operator
Yeah. Thank you so much, sir. Ladies and gentlemen, that was the last question for today. I would now like to hand the conference over to the management for the closing comments.
Pirojsha Godrej
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 of assistance. On behalf of the management. Thank you again for joining us today and apologies again for having started late. Thank you. Have a good weekend.
Gaurav Pandey
Thank you and thank you.
Operator
Thank you, gentlemen. Ladies and gentlemen, on behalf of Godrej Properties Limited, that concludes this conference. You may now disconnect your lines. Thank you