Godrej Properties Limited ($GODREJPROP)

Ladies and gentlemen, good day, and welcome to the Godrej Properties Q4 FY '26 Earnings Conference Call. [Operator Instructions] Please note that this conference is being recorded. I now hand the conference over to Mr. Kshitij Jain from Godrej Properties. Thank you, and over to you, sir.

Thank you Hello, everyone, and thank you for joining us on Godrej Properties Q4 FY '26 Results Conference Call. We have with us Mr. Pirojsha Godrej, Executive Chairperson; Mr. Gaurav Pandey, Managing Director and CEO; and Mr. Rajendra Khetawat, CFO of the company. Before we begin this call, I would like to point out that some statements made in today's call may be forward-looking in nature. The forward-looking statements are based on expectations and may involve risks. The outcome 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 Pirojsha to make his opening remarks. Over to you, sir.

Good afternoon, everyone. Thank you for joining us for Godrej Properties Fourth Quarter Financial Year 2026 Conference Call. I'll begin by discussing the highlights of the quarter, and we then look forward to taking your questions and suggestions. GPL delivered its best ever year for business development, booking, collections, operating cash flow and earnings in financial year '26. In terms of bookings, Godrej Properties delivered its highest ever quarterly bookings in Q4, equaling the previous best ever quarter in Q4 FY '25 and growing 21% quarter-on-quarter to INR 10,163 crores. This is achieved through the sale of 4,789 units with a total area of 7.3 million square feet. Sales in the fourth quarter were driven by strong demand in some key new project launches, including Godrej Aveline in Bengaluru and Godrej Arden in Greater Noida, which each saw sales in excess of INR 1,500 crore. And also by strong customer sales in several projects, including Godrej Trilogy, which saw sales of over INR 1,000 crore. All financial year 2016, booking value grew 16% year-on-year to INR 34,171 crore and thereby achieving 105% of our guidance. This was achieved through the sale of 17,513 units with a total area of 27 million square feet, a year-on-year volume growth of 5%. This is the highest ever full year booking value and volume announced by any distributor estate developer in India today, allowing GPL to remain the largest residential developer in the country in terms of booking for the third consecutive year. Booking value has grown at a compounded annual rate of 41% over the past 3 years. Notably, this was the ninth consecutive year in which GPL has delivered growth in bookings, indicating our ability to grow through the cycle. Moreover, we crossed bookings of INR 7,000 crore and areas hold of more than 6 million square feet in each quarter of the last financial year, demonstrating the consistency made possible by our national presence and strong product portfolio. The company still well diversified geographically with the Mumbai region contributing over INR 10,000 crore, Bengaluru contributing INR 8,801 crore, NCR contributing INR 7,412 crore, Pune contributing INR 3,659 crores and Hyderabad, a new market for us, contributing INR 2,360 crore. Eleven individual projects across 6 cities generated booking value of more than INR 1,000 crore during the year. In terms of collection, the fourth quarter collection stood at INR 7,947 crores, representing a year-on-year growth of 14% over our previous best ever quarter and a quarter-on-quarter growth of 86%. For financial year '26, collections grew by 17% year-on-year and has a 3-year comparable annual rate of 30% to INR 19,965 crore. This is the highest collections ever reported by an individual real estate developer in the quarter and in the financial year. Strong collections also translated into strong operating cash flow of INR 4,631 crore in the fourth quarter, representing a year-on-year growth of 14% over the previous best ever quarter and a quarter-on-quarter growth of 336%. Financial year 2016 OCF stood at INR 7,830 crores, representing a year-on-year growth of 5%. GPL Was able to drive a 62% increase in direct construction spend in financial year '26, which will help enable the company to maintain strong collections in the current financial year. GPL also delivered positive net cash flow post business development expenses of INR 628 crore in the fourth quarter, a 6% increase year earlier. Financially '26 was also our best ever year for business development. Godrej Properties added INR 42,100 crore of future sales potential through portfolio exposition, achieving over 200% of guidance and delivering year-on-year growth of 59%. 18 deals were closed with an aggregate area of approximately 33 million square feet. This includes 6 new projects with a total activated salable area of approximately 11 million square feet and an expected booking value of about INR 17,500 crore that were added in the fourth quarter. GPL also ended the year on a strong note with respect to delivery, achieving 12.1 million square feet of projects delivered across 9 cities, which was 121% of our annual guidance. This includes [ 1.4 million ] square feet of deliveries across 8 cities in the fourth quarter. Strong deliveries also translated into strong earnings. For the quarter, our total income grew by 47% to INR 3,895 crore, EBITDA grew by 51% to INR 959 crore and net profit grew by 70% to INR 650 crore. For the full year, our total income grew by 22% to INR 8,374 crore, EBITDA grew by 43% to INR 2,826 crore and net profit grew by 32% to INR 1,850 crore. The past financial year was also filled with many important milestones on our sustainability journey. I'm happy to share that Godrej Properties has been included in the Leadership Index of PDP with an A rating in 2025 and has also been recognized as a supply chain leader in CDP supplier engagement assessment. We also ranked #1 globally amongst real estate developers in post Dow Jones Sustainability Index and the global real estate sustainability benchmark. Our record business development additions, combined with the strong operating cash flow of over INR 15,000 crores that has been generated over the last years will enable us to continue building on strong growth momentum the company has established. In financial year '27, we hope to grow residential bookings to over INR 39,000 crore through the launch of a large number of exciting new projects combined with strong sales. This is a 20% increase overall guidance for financial year '26. We expect to grow collections by 20% to over INR 24,000 crore. We remain extremely focused on delivering our return on equity target of 20% by financial year '28 by stepping up our speed on execution and project delivery, which will create rapid growth in operating cash flows as well. With a robust launch pipeline and strong balance sheet, we are confident of continuing the momentum in financial year '27 across all key operating metrics. On that note, I conclude my remarks. Thank you all for joining us on the call. We're now happy to discuss any questions, comments or suggestions you may have.

[Operator Instructions] Our first question comes from the line of Parikshit Kandpal from HDFC Securities.

Congratulations to the management team for a great quarter and financial year. Sir, my first question is on the guidance. I mean, in the current environment, we have given a very strong guidance. I just wanted some more color geographically how we see the growth, some more color on the demand of the end markets because if I see your numbers in FY '26, NCR has seen a degrown -- degrowth or even just one project in this year. Secondly, Bangalore and Pune -- Bangalore has grown well, but again, there are concerns on AI-related disruption and demand early, which may touch even Pune sentimentally, so how does one look model, the growth given the guidance that you have given, it looks to be quite strong. So any color on the end market demand? And how do you think F '27 will play out for these regions?

Yes, I think the idea will be to ensure strong diversification in our growth as we've been able to do over the last few years. You rightly pointed out NCR, so dipping sales we don't think that is actually driven by what was happening in the market. We had a couple of the launches we hope to do in NCR, strip out of the year, so a large acquisition in Gurgaon that we've done. Unfortunately, we are not able to get the approvals within the year. That is now placed to be Q1 of this financial year launch. We also quite hopeful that are showed 3 are our projects in Delhi that has been delayed for some years now will also get launched this year. So those will be 2 important launches. We also mentioned the BD deal we did in another prime area in Gurgaon. So we do feel we have a strong portfolio in NCR and hope to get back to above INR 10,000 crore in sales in NCR as we were the 2 preceding financial years. I think we've seen outstanding growth the last year and the last few years in both Mumbai and Bangalore, and we look to continue to build on that momentum. I think we had a lot of good business development in Bangalore last year. Our view is that the worry that AI is somehow we do for rental demand is probably a little bit overdone. And we've seen both not only in terms of residential demand, office demand itself has been very strong in any slight softness in the IT sector has actually been more than made up so far in global capability, sensor demand. Of course, I think with the level of uncertainty on issues like AI, the geopolitical situation, currently I think we will, of course, have to be watchful and land basis what we see. But as we look at the year right now, this seems to us a reasonable estimate. We're also very confident of demand in Mumbai, Pune, Hyderabad, which is a new market for us, has done exceptionally well. Our other markets, which is largely due to our plotted development has been growing well. We also expect to have launches in group housing in both Ahmedabad and Calcuta. So I think a lot of opportunities and what gave us confidence to maintain the guidance. And we have been indicating that the company will seek to grow at 20% year and we'll seek to have guidance growing by that amount each year. We're happy to be able to do that this year. I think what gives us some confidence that we can get there, as I said in my remarks, business development last year actually grew by [ 59%. ] A lot of those projects will be available for launch this year. So hopefully, our launch calendar will be even stronger in the current financial year than it was last year. Also in terms of the estimate opportunity, we believe the available inventory for sale has also grown by 35% year-on-year because of all of the launches we were able to do last year. So overall, there is a good opportunity to meet these numbers and hopefully even exceed them. But as you rightly pointed out, there are, of course, also uncertainties, we mentioned AI, I think I would add to that the global geopolitical situation. So if there are any major shift in demand over the year, will, of course, come back to you guys with what we're seeing. But right now, I think we feel this is quite reasonable and there could even be opportunities to do better if markets hold up well.

My second question was on the -- so you compare Q4 versus Q1, the initial part of Q1, so given these uncertainties globally. So are we -- any color on the footfalls and the conversions? And if you can help us also understand the premium segment or luxury housing, is there any delay in decision making the closures? Are you seeing incremental the trend that people are elongating the decision-making cycle which may impact H1, but maybe if things improve H2 will come back solidly, strong for our store. So how does one look at 3 sales H1 will be a bit muted and then H2 we see a strong recovery, some color.

So Parikshit, right now, H1 looks frankly quite bright for us because we have pretty strong launch calendar skewed, especially towards H1. It's been sort of an effort of last year, the ideas to bring launches fast. But I get your point, fair for you to say that given the geopolitical risk, what do we see? Now the thing is in April, we've not seen something really out of the world because whatever substance projects are in place, we are seeing reasonable footfall. Of course, there is a sense of cautiousness in consumers, but we are seeing conversions. Our launches will start hitting more towards May end and June is when we would be able to fully appreciate to what extent this geopolitical risk exists right of the sales demand funnel. But just to give you some very early indications, they were a launch -- I just give you an example. There was a launch done in Bangalore, where we -- which is called Godrej Aveline. If memory serves me right, we did about INR 1,500 crores over there, give or take, they're already INR 250 crores in the month of April, which is by rate of run rate much better than we've seen in Bangalore. So again, there will be projects that may be slightly more impacted. There maybe project that might surprise but very difficult to frankly give you a sense of what exactly number would look like. But having said that, even if there is, let's presume some impact, we have enough and more time to cover it up within H1. So quite cautiously optimistic for Q1 and a bit more surer on H1. And of course, H2 will continue to be good.

Okay. And just the last question, if you can give us some numbers. So out of the total launches for FY '26. So how much is on the presales that was the contribution of sustaining sales and the new launches for FY '26?

I think quarter 4 was largely a very interesting sustains driven quarter. We almost had delivery like close to 50-odd percent in quarter 4, and that was driven by some of the big projects like Worli did about [ INR 1,000 plus INR 11-odd crores ]. We had Panipat INR 200-plus crores and we had reserved then INR 500 crores. At the moment, very difficult to say, but what we have done to start up a good momentum, we've created a pan-India sustenance campaign and we're just hitting the ground as we speak so that all these projects have extreme high focus to move inventory. So very early days of the campaign. Just a couple of days back, we've started and we got some good encouraging results. And the ideas to have a consistent run rate on sustenance, while launches will be launching, but sustenance is a more predictable inventory is what we continue to focus upon.

And FY '26, I think the campaign you're talking about is 1% for the...

Yes, yes, it is designed like that's like a 20% upfront, then there are bullet payments every year. And it is a 1% anchoring -- sourcing tool is 1%, again, in project to project, if you will defer it's closer to CFE and TLC somewhere in between. And yes, you're right, the fact is you heard about this campaign, which means the impact is starting in the market. So give us a few more weeks and we'll have a better picture.

And last this FY '26 how much you saw savings for contribution to sales?

Booking contribution to...

FY '26, yes.

Sustenance contribution to total sales is your question or booking value...

I mean, yes, so total contribution to the sales?

60 would be launches.

60, 40.

Yes, 40% would be sustenance.

Our next question is from the line of Puneet Gulati from HSBC.

Congrats on your performance. My question is if you can also, in your presales, give some color on how should I think about the mix of projects, whether you're inclined more towards mid-premium or more mid-income and also volume and value growth that you see in the market and for your presales guidance?

Yes, Puneet, I think fairly desirable from the -- I think every BD deal we do, we announced now an expected booking value from it and an area. So you get a pretty in fact, picture of what we're underwriting in terms of pricing. I think over -- I wouldn't say there's any major shift from last year to this year. But over the last 2 years, we certainly tried to go into a slightly more premium category of projects focused very much on kind of making sure we're in the best location within each of the micro market we're looking at. So I think some of the important projects we added last quarter included one in Gulf Coast Extension Road in Gurgaon, a very prime located project or good scale in Thane, those would be some examples. But in terms of the -- we're putting out, as I said, the exact price points, we expect to be at through the combination of booking value plus area guidance.

And volume growth, should one assume a strong volume growth into this year? Or is it more value growth driven in some...

Yes. I think if you look at the last few years, the volume growth over the last 5 years has compounded at 20% year, excuse me, against the total sales growth of nearly 40% a year. So volumes have been a meaningful contributor. So I would expect roughly equal split path between volume and value for the overall growth.

Okay. And on your income, you are not talking about potential of INR 1,000 crore with your share being almost INR 30 crores to INR 50 crores. Any plans of monetizing? And when do you think you'll hit INR 1,000 crore of return sales.

So I don't think we have any immediate plans of monetizing this. But I think I don't have a clear sense of exactly when we get to that 1,000 crores milestone you mentioned. But certainly, I do see this continuing to go up, and there could also be opportunities to consolidate share rather than that if we'd like to. So I do see this increasing steadily over the next few years.

That's helpful. And lastly, on your net debt, while it still remains in a comfortable range, should one think about FCF positive for FY '27?

I think it's a little uncertain to be honest, for FY '27. I think it is quite possible to depend a little bit on the quantum of business development we do. At the guided business development all will be FCF positive. And whether we go market or not will depend on kind of the quality of opportunities and our confidence in them. But I think broadly speaking, Puneet, a little bit slightly longer term just this year, very clearly, directionally, we think business development investments won't need to scale up very dramatically. From here, we had taken a step jump increase in BD. We did see the opportunity over the last few years in the early stage of the cycle and when we were on an oil base to grow very disproportionately. I think and the team have done a fantastic job in making that happen. And as a result, compounded growth of bookings for the last 3 years has been over 40%. But I think what we're looking at from here is on this much higher base, getting to a kind of consistent 20% growth. That the level of business development as a percentage of existing projects as a percentage of kind of operating cash flow will keep coming down. So I expect certainly FY '28 to be strongly free cash flow positive. I think FY '27 will depend on kind of ultimately on how much business development. We do it could be, but it may not be also.

Our next question comes from the line of Kunal Lakhan from CLSA.

Firstly, on the impact of Iraq war. Firstly, on the demand side, are you seeing any impact on the demand side, especially from on the NRI customer inquiries, especially in markets like MMTR? And also like ultimately, is there any silver lining to this war in terms of the Indian buyers are investing in markets like Dubai and Abu Dhabi now ultimately looking at -- looking back at Indian markets -- that's first. And sir, also on the overall cost impact of before, right? Are you seeing any impact on the procurement of materials in terms of delay or on the cost side also?

Thanks, Kunal. Kunal, on the impact on the demand, I would say, around March, last 2 weeks, we did see some amount of impact but that was the peak of the chaos. And give or take, you would have probably done INR 1,000-odd crores more and would have love to actually deliver 20% growth last year. That was a sort of an internal target. And right now, if you ask me, the situation is, of course, a little uncertain from a buyer standpoint, but it is not as worth of, I would say, March because people over a period of time, tend to normalize situation. So I would say one has to be cautiously optimistic. But relative to the peak stress of March end, it's slightly better. And again, like I mentioned, we have just cautious optimistic and be very steady on the understanding consumer sentiment. The silver lining that you talked about second part of the first question. I would say in the short term, it does create some amount of dividend, but in the long term, actually impact the market in a positive way because I think there were a lot of who are looking Dubai primarily as a huge investment hub. And also, there were a lot of people who have taken sort of a property selection purely from an investment point of view to move there. I think that all is going to get revisited significantly. I don't see a big impact of that in the next 3 to 6 months for sure. But I do feel that this is a good opportunity that a lot of demand could go back to many markets within India and across developers. On the cost impact, I would say we've done some cost estimation because of the portfolio size and projects at different levels. I would say, give or take, cost impact would be 5% to 6% at ax, again, in some projects could be even lower. From a margin point of view, again, project-to-project could differ, but give or take every quarter, this is going to be something like to 0.1% to 0.2% of margin impact. So quite reasonable to control with just a small price hike in the next 2, 3 years of that project, we can manage that. But yes, I think more fundamentally is the supply side shock. If we see constraints in supply getting created. We did see some of that happening in tires and all, some amount of marble but things are getting slightly better than what we saw in March. And fortunately, we have good strong forward contracts that in most of these input materials. So again, we'll partner with our vendors. But at the moment, it seems fairly manageable. And we hope that the situation that we talked about Middle East in the next 2 to 3 months, if not earlier, should get fully resolved. And if that happens, I think we pretty much back to normal is amount of catch-up to be done. But yes, if it continues for 6, 12 months, then I think that is something which has different economic risks than sector-specific.

Sure. Sure, Gaurav, very helpful. My next one is to Pirojsha, Pirojsha, you mentioned earlier that your busy spend in FY '27, you're not sure that it would be higher, lower or similar, right? But if you look at your guidance of INR 20,000 crores of GB acquisition, and there we're considering like your FY '26 guidance and the number that you actually achieved was more than 2x. How should we look at the BD guidance that you have given? Like would you still aim at beating that guidance or you are happy with like a say, INR 20,000 crores may be just opportunistic like you were there in FY '26?

I think it's really a question of the opportunities we see out there. As for we don't focus too much on business development gates and have kind of kept it steady the last few years. Look, we quite keen and we're quite aware of stakeholders wanting us to start demonstrating kind of free cash positive on a more consistent basis. We're happy to see that last quarter. Very confident again of seeing that in FY '28 as that's the year where we think both collections and earnings, which we have stepped up with a lot of these newer projects reached revenue recognition. I think this is kind of a transition year. And when I say it may happen, it would be easy to say it will happen in town and perhaps I should say that. But I think I want to be realistic that if we see very good opportunities, we do think we still have the balance sheet that can support them, and we will look to add projects. So I think certainly, if we only add projects of INR 20,000 crores, we will certainly be free cash positive. If we add something closer to what we did last year, I think will be about breakeven on free cash would be my guess. And as I said, FY '28 is the year where I expect to generate a lot of cash for business development.

Sure. Sure. Helpful. My last question is on the imputed margin that we have started to put out in the last couple of years. For FY '26, the imputed EBIT margin is about around 24.5%, which is lower than what we have seen in the last couple of years. Is the assumption of the product mix? Or is there any impact of increased costs or overheads that we are at factoring in here?

I mean in a pretty tight band there will always be a little bit of fluctuation of this. One of the factors at least versus FY '25, keep in mind is that we had a big contribution from one of our JV projects in Bangalore in FY '26, where we saw almost INR 4,000 crores of sales in that one project 50-50 JV. So the total economic interest for the full year was 88% versus 93% the previous year. So a little bit can be because of that. But still I think these minor fluctuations can happen. I think if you recall, we had guided for a 10% to 15% PAT margin overall, and we're happy that now for consecutive year or at the very top end of that range.

Our next question comes from the line of Gaurav Khandelwal from JPMorgan.

I've got a few I'll take those one by one. Firstly, on this the 1% payment program. Can I understand, is it merely a marketing tool to get more sales? Have you tried this in the past? Or is this something that you've come up with recently? And especially in this, how does the payment from a developer or from a buyer standpoint of view, how is the payment different vis-a-vis, let's say, a regular construction linked payment? Is there more downside risk here? Or is it rather an optionality?

Great question. One of the things I'm learning is generalist also picks up a lot of things from 1 call and right stories. I mean just to qualify, this is not Dubai 1% payment plan. If you would recollect, even last year, we did a one more like a soft tool, where essentially, again, project to project, it could differ. So let's say, you're buying a project which is very close to possession. So essentially, you're paying upfront money, say, 10%, 20%, 30%, rest maybe 2, 3 months and then for the 2, 3 months or 6 months, could be one person when you pay on possession. Vice versa that you buy something which is an early stage of a project, you would typically pay between 20% to 30% also in the initial period of time, then you have 1% per month and ideas to converge it closer to CLP. Yes, it is slightly better than a construction-linked payment plan, but we sort of benchmark construction-linked payment plan, which is to say that 70% of collections usually come take a typical CLP. Here, it could be between 60% and 70% depending on project to project. But for consumers, it becomes slightly an easier entry point to evaluate. And our experience historically has been that it attracts a lot of consumers to walk into a site, and then they decide to choose some time to move to a normal construction link payment plan sometimes to this or something to down payment plan because then they get to see pricing difference between all the payment plans. So it is not really in the classic sense that you only pay 1% in the life cycle. But yes, I mean, you don't have the headache to pay bulky payments every other second to third month, you pay typically upfront in 1 to 2 or 3 months and then 1% a year and some bullet payments. Just like a BMW scheme that you get to see or a Mercedes lease scheme that you get. It's something similar. And it's a win-win for consumers as well for the sales perspective.

Got it. And if I can just follow up on this. That is also then -- did this have a consideration when you build in a forecast of 20% cash collection guidance this year or even without this, you would have still being comfortable with 20% growth guidance on collections?

I think our collections is very was going to come agnostic to a particular scheme. These are like like what say, fill us to our overall portfolio plan. Every quarter, we do something order to attract consumers to have better working. They feel the need to evaluate the product proposition. You've got to excite the market. And sometimes you release a scheme which is more financial, sometimes you release the speed, which is more product like you get certain free bets and you, of course, building a price to adequately do it. From a cash flow planning point of view, almost all the projects I can say, they are always benchmarked to a base payment plan, which is a typical construction link payment plan. As a rule of thumb, we don't do any sort of a classic PLP, as it's called position link plan, more than 5% to 7% in the quarter. So let's say if we're doing INR 10 crores plus sales in the previous quarter, now more than 5%, 6% would be a true PLC scheme. Everything else is either a scheme, which is a classic construction link payment plan or maybe a 10% or 15% of that a few slabs earlier, fuel slabs later. And that is just enough to keep the site momentum going, keeping the sustain in generalized because every consumer wants to feel that what's the best deal for me in this quarter. So there has to be a reason to believe to always evaluate the product. I hope this answers it.

Got it. That's very helpful. My second question is, of the INR 42,000 crores of GDV that you announced in FY '26, how much do you estimate would be the total land and the weighted CapEx payments, how much of that is done and how much is still pending. Could you share some color on that, please?

So we have paid the major payments. Only some milestone-linked payments are pending. So around INR 1,500 crores is what is pending for the deals which we have signed in '26.

No, sorry, out of INR 42,000 crores, the total would be how much sorry, I did not get it.

So for the entire quarter...

You get INR 1,500 crores...

Yes.

Got it. Okay. Okay. And my final question to Pirojsha. So we recently saw I'm sure everyone must have seen your interview. In that INR 5 trillion market cap, where does Godrej Properties sit in the broader picture of things?

Well, it's quite high. I think we've refrained from giving company level guidance on this. But I think perhaps we can get an idea of where we think it sits by the fact that we bought back 5% of the company last year, including most of that in Q4.

Our next question comes from the line of Pritesh Sheth from Axis Capital.

Congrats on great results for this year. First one is just on the free cash flow discussion that we are having earlier. We have also given a dividend payout -- I mean, we have given a dividend payout for next year. What does it indicate? I mean does it indicate that this will be a regular phenomenon now. And fundamentally, we are much in a better position to generate free cash flow, considering that we would be paying a regular dividend? Yes. So just trying to understand the underlying message here when we announced this dividend.

Thanks, Pritesh. Yes, I think that is the underlying message. As I mentioned earlier, I think over the last few years, we felt the real opportunity was disproportionate growth. Frankly, we think 20% growth over the last few years where the market itself has been growing at that kind of rate would have been kind of underplaying the opportunity. So we were very clear we wanted to grow well ahead of market, grow market share. I think we made some very timely investments before the cycle and during the early part of the cycle that have helped kind of completely reset the sale of the company to kind of 5x where it was not that long ago. With that behind us, I think now we think on this higher base, the 20% actually is the appropriate growth rate to look at in also a more steady part of the cycle. So I think that's what we're after. The level of investment needed to achieve 20% growth is obviously lower than is needed to achieve 40% to 50% growth. We will, therefore, see I think a more consistent level of BD investment, while our sales collections and operating cash flows will all grow quite sharply, we think, over the next few years. Therefore, I think the surplus cash available to the company for dividend will increase. We've started with a relatively modest dividend for this financial year, but we'll, of course, now look to both make these dividends consistent and consistently growing.

Sure, that's helpful. And on the guidance part, this is obviously better than what we had last year in terms of the percentage growth, 12.5% last year to now almost 15%. What are we expecting to be better this year? Is it the demand scenario? Or do you have a better hold on the pipeline that is about to get launched this year and hence slightly better guidance than last year despite a higher base?

I would actually argue if you guys have a slightly funny way of looking at results sometimes. I think what is actually uses that a couple of years ago, we said we would like to grow guidance 20% a year year-on-year. We've done that now both of the last 2 years. So this year's guidance only looks better because actually, as Gaurav saying, we think we probably missed about INR 1,000 crores sales at the end of March. If we had that as, I think last year's growth would impact has been 20%, and then you can perhaps will be complaining our guidance was only 10% higher. So maybe it's an advantage for us that didn't happen in some ways. But look, I think what we're saying is that we obviously don't want to constrain ourselves on the upside. So if we see the opportunity to grow 55% as we did in FY '23 or 84% in FY '24, we'd like to obviously seize on those opportunities, even if that means that the next year growth may look a little bit more moderate. But I think this idea of 20% growth in guidance is something we are keen to deliver. And obviously, each year, we hope to do a bit better than guidance. So last year, we did 6% better than our guidance. And therefore, this year's growth over 12% to 14%, but have we been able to do 20%, as I said, in this year's guidance would have been 10%. So I think that's the way we think about it. In terms of what gives us confidence of overall having a much stronger number this year. As I mentioned earlier, our business development last year grew by 59%, which implies a stronger launch opportunity this year than we had the previous year. And our existing inventory available for sale is also on an opening basis 35% higher this year than it was last year. Now of course, there are also additional risks and concerns this year that didn't exist last year, not least of which is this global situation. So we will have to keep watchful eyes on that and come back to you guys if we're seeing any shifts in the market in either direction. But as of now I think basis what we're seeing, basis the launch opportunity, basis the presence there's obviously built project by project, region by region and with some buffer for food slippages in launch time lines and things, so far, in the last point, we have been able to meet the sales cadence each year. We're obviously very hopeful of doing it again this year.

Sure. That's helpful. And one just one last on the pricing side since you are doing a lot of sustaining sales as well. How is the expectations, price acceptance by the consumer when we are taking those increases? And what would be the outlook on that as we move ahead in FY '27?

I think pricing has been -- I mean, especially in South and Mumbai, reasonably decent. And I would say West been marginally better than think great. And on the Gurgaon side, I don't see there is a good price uptick. And frankly, we're not really looking at that. We focus more on quality of sales. Noida has been a bit of a consistent surprise in the sense that there's a very strong lack of supply in that market. So it gives sort of a clear demand-supply issue, which is why price uptake is still good, so yes.

The next question is from the line of Abhinav Sinha from Jefferies.

A couple of questions. So firstly, on the launch guidance that you've given a 480 billion, you already detailed some big launches in NCR, but can you talk about maybe a few more projects in other areas and what to watch out for in terms of timing?

Thanks, Abhinav. Actually, pretty action-packed here. We -- apart from the launches Pirojsha talked about, I'll just quickly cover NCR more. We will have a very exciting launch coming up in Greater Noida Godrej last residential cluster. This is sort of a sold out project previously. Retail was the last product we had launched almost probably 90% plus also sold out. So very looking much forward to this one. We will also have a tower activation phase activation basically in Godrej launch, which happened last quarter has done more than [ INR 58 crores. ] So like at least towards quarter 3 will launch and we will also launch a phase likely of Miraya during the later part of the year. In Bombay, again, quite action pack, we will have Bandra in the most awaited launch from Bombay in the last many years, that should come. We will have phase activations in Kharghar and Panvel. We will also launch the tower of Worli. As you would have seen, we've been high sales pretty strongly. So I think somewhere around Diwali this year, we might open a new phase of Worli. We will also see after a very long time, a very exciting land faster coming in and teams are quite excited about that. This is a huge project. And towards maybe quarter 2 or quarter 3, we would see a launch of this one. Then we will have a tower activation of Godrej and the recent acquisition, the INR 7,500 crore top line that we have acquired in Thane, that should also see a launch in -- towards mostly like towards Q3, late Q3 or Q4. On South, we've added a lot of projects across the board. So most of will see action in the coming months, starting with Kukatapally and Agra. These will be 2 exciting launches. Bannerghatta in Bangalore will be coming up. We will be launching a second phase of regional civilian. We launched a product development of Coimbatore and there are 2 more launches. Like in Hyderabad, we have a launch of new land in auction we bought. Moving on to -- and again, there will be some phase activation we look forward in NCR and white field. In Pune, we have again, a series of launches starting from Nagpur. We will open another phase of parcel in Upper Kharadi. We will have something -- maybe 2, 3 launches in Mahalunge, depending on how many launches we can secure in terms of approvals. And we'll have a very exciting launch in Calcutta as well as Raipur. After a long time, we'll have a launch coming in which is Ahmedabad. So I mean as you can clearly see, we have enough and more to be very, very confident, like Pirojsha mentioning that there is a guidance of launch guidance, we tend to keep buffer to some of these bases. But in spite of the slipping, we are very confident to bring the inventory given as guidance and through driver launches.

Sir, second question on construction costs. So now we have seen a big reset already with a 62% jump. From here, should we be thinking about maintaining the current INR 2,000 crore for quarter level? Or there is another large jump ahead?

I mean I would say we would see a consistent growth like the one that you talked about. And I see the percentage will be in double digit, may not be as massive as the one we saw in the last year, but the endeavor will be to push as much as we can so that we can start securing the OC plan for FY '28 and some of these launches will also determine some of the construction spend. So if we're able to ensure that we have a good Q1 and Q2 launches, that will also, of course, have a good positive upside on the construction. But again, from an operating cash flow, most of these will get covered up from the launch collection itself. So yes, endeavor is to push as much speed of COC spend. But yes, I mean, the range that you talked about seems very logically achievable, but yes, Internet targets are slightly more stretched.

So logically, okay to believe that OCF should now rise faster than customer collections? Or do you think it's still more in line?

I mean, it's actually frankly depends upon the stage of the project and the COC spend of that, right? If we see -- finally, we are portfolio, say, maybe 100-odd companies, 100-odd projects, right? So if we are able to see great construction progress in projects, which are in later stage of construction, then the OCF conversion is very, very high. And if we are able to, for some reason, just giving you a sense of sensitivity or how difficult it is to project these numbers. If we're able to not do that very well, but it should do very well on the mid-stage, then it actually happens quite the opposite. So frankly, I don't want to put my neck out and convert it. But yes, directionally, I can say OCF will continue to grow very strongly because we've been able to ensure that many of the projects in last year have reached a flat cycle level. So typically, construction is relatively slower in a typical 2, 3 basis points until you hit plinth and above. Now we have hit second and third, many of it, which is the typical cash for accretive sort of stage of a project. But I mean, very frankly, all projects for us are equally important to speed construction. But directionally, OCF will continue to be strong. But I can't give you a number right now, but trajected stronger than last year.

The next question is from the line of Rahul Jain from Elara Capital.

Sir, on the launching of 480 billion that you are planning, what is the approval cost that you're budgeting for the full year in FY '27?

Very difficult, Rahul. It will be like several of the projects. And each project will have a different approval. For some, we will require some premium to be paid, some FSI to be bought. So very difficult. But why don't we get connect offline and maybe we'll help you with some of the numbers.

Sure, sure. And on the collection front, you were essentially guiding for 210 billion for FY '26, you've landed at 200 billion for the full year. So there were obviously 10 billion of slippages, does that 240 billion that you're guiding in FY '27, the slippage is baked in or there is upside risk to that number?

Yes. I think a lot of the deliveries ended up being skewed to us sort of even later in Q4 than we were originally planning. So I think there is a little bit of slippage because of that. We, of course, are disappointed of missed this INR 21,000 crore guidance. I think INR 24,000 crores, we always put up some buffers in the guidance. I think that something will change in an industry like I said, is pretty much a given. So we do have some buffers. I wouldn't say INR 24,000 crores is everything going going right. We could have perhaps gone a little bit higher, but it's learning from this year, we ended up missing it by 5%. We wanted to stick with INR 24,000 crores, but we'll hope to do a bit better than that.

The next question comes from the line of Akash Gupta from Nomura.

Am I audible?

You are audible, sir.

Congratulations on great performance. Actually, my question is twofold. The first is your launch performance for projects in Kharghar and Karari that was launched in 4Q FY '26, there was slightly on the softer side. So I just wanted to know your thoughts on that. And second, for projects in Gurgaon, projects like Sora and Miraya, I think we already did a 30%, 35% at launch, but I don't see that offtake continuing. So what's your thought on that? So these are my 2 questions.

I think the project Kharghar and are exactly part of the bucket project, which saw impact of lower conversion in the last 2 weekends of March due to Middle East, something that -- so this is more of a short-term issue then the idea is -- we had great check pickups, conversions did take a hold because consumers were expecting that because the geopolitical situation, there are some extraordinary deals to claim, which we don't offer very frankly. So I think that's better to that. On Some of the 2 projects talked about, there is also a stage of construction. So in some -- one of the projects we removed the marketing office so that the construction can be complete of that area because there's a basement and logistics part. But I think typically 3 to 4 months once that stage is over, we will put back sort of temporary marketing office. And again, the sales figure will start moving up.

Our next question is from the line of Kunal Lakhan from CLSA.

Am I audible?

Yes, you're audible.

Yes, yes. So on the cash side...

Not able to hear you, Kunal. Could you try again.

Is it better? It's still the same?

I think this is a bit better. Go ahead.

Okay. So just wanted to understand on the cash side, we have a cash of about INR 8,000 crores in our books. How much of this would be in the RERA account and...

Around [ INR 6,700 crores ].

Around INR 6,700 crore in the RERA accounts. Okay. Okay. Okay. Understood. Secondly, on the revenue side, right? I mean, in terms of the revenue booking that we are -- rev recognition side rather, right, just recognizing revenues in line with our sales of say FY '21, '22. And you have seen some sales from FY '23 onwards. On the revenue side, going into FY '27 and '28, particularly FY '27, could we see a bump in the revenue resignation, because when I look at the deliveries, it's showing versus...

I think we would see that tater bump up in FY '28.

Okay. Okay. Major pumping in...

This will come in, Kunal, so you will see a significant P&L revenue recognized into a P&L.

Well, I mean, even now it's quite healthy. I think [ INR 2,900 crores ] is revenue linked to all the OCs, but -- and even this year, it should be decent. But I think the real bump is FY '28, when we -- when our target is to hit 20% going.

And grow that obviously implies that why the [ 28 ] was year just from when we will be hitting 20% ROE because that's where we see the significant bump up. But obviously, with delivering guidance for the current year higher than last year, we should see positive momentum this year as well, but I think the best step jump in [ FY '27 ].

And another thing is like all those revenues which are going to get recognized will be off our own projects. So that's why you will also see that coming in '28.

Yes, we think perhaps the market hasn't fully appreciated that because bookings themselves have grown very sharply, economic interest which we show separately has grown even faster. So over the 5 years, it's been compounding a year. And all of that till now we think start becoming more and more visible in the P&L. And of course, some of it already has been.

And one last question, if I may. Pirojsha, you did highlight about Ashok Vihar, we are likely to get launched in FY '27. Are all the issues specific to that date all for that market, right? Are they already behind us? Or is it at the current right now?

No, I would say they're all behind us. And I wouldn't say there's a certainty of it getting launched this year. But I think very strong progress being made and the team on the ground feels that this year, we will be able to launch it. I don't think that was the message from them this time last year. But I would not say that this is something that we should take for a certain but reasonably optimistic of this happening. And I think it will be quite positive within a 12-month period. The significant projects that have been delayed for some time, Worli, Bandra and Ashok Vihar, all get one, and that's the endeavor. In some ways, of course, these delays have helped in terms of how the market has proved but we wouldn't like to see obviously any further delays down.

Ladies and gentlemen, we will take that as the last question for today. I would now like to hand the conference over to the management for closing comments.

I hope we've been able to answer all your questions. If you have any further questions or would like any additional information, we'd be happy to be of assistance. On behalf of the management, thank you once again for taking the time to join us today.

Thank you. On behalf of Godrej Properties that concludes this conference. Thank you all for joining us. You may now disconnect your lines.