GODREJ PROPERTIES LIMITED

HISTORY

Godrej Properties Limited is a real estate company with its head office in Mumbai, India. A
subsidiary of Godrej Industries Ltd, the company was established in the year 1990 under the
leadership of Adi Godrej. The company is currently developing projects that are estimated to
cover more than 89.7 million square feet. It is operational in 12 major cities across India
including Chandigarh, Gurgaon, Ahmadabad, Kolkata, Nagpur, Mumbai, Pune, Hyderabad,
Mangalore, Bangalore, Chennai and Kochi. The company witnessed 130% growth in net profit,
77% in Earnings before Interest, Tax, Depreciation and Amortization (EBITDA) and
approximately 5% growth in total income in the first quarter of 2014 as compared to first quarter
for 2013.

Godrej Properties Limited was founded as Sea Breeze Constructions and Investments Private
Limited on 8 February 1985. It was registered under the Companies Act, 1986 with the Registrar
of Companies in Mumbai. In accordance with a special resolution of the shareholders in the year
1990, the companys name was changed to Godrej Properties and Investments Private Limited.
Subsequently, the name of the company was changed to Godrej Properties and Investments
Limited and finally, to Godrej Properties Limited at a general meeting on 23 November 2004.
Currently, Godrej Properties Limited (GPL) is listed on the Bombay Stock Exchange (BSE) and
the National Stock Exchange (NSE).

The company undertakes their projects through the in-house team and by partnering with
companies operational in the domestic and international market.

Established in 1990, they are one of the real estate development companies in India and are
based in Mumbai, Maharashtra. They have real estate development projects in 12 cities across
India. Currently, the business focuses on residential, commercial and township developments.
They undertake the projects through in-house teams and by partnering with companies with
domestic and international operations.
VISION
We aspire to be the nations leading and most trusted real estate company. We shall deliver
Superior value to all stakeholders through extraordinary and imaginative spaces and
Service created out of deep customer focus and insight.

VALUE PROPOSITION

Established Brand Name and Group Association

As an established brand, Godrej Properties is trusted by customers, business partners and
financial communities. The company effectively leverages combined Godrej Group
resources and has structured systems for HR, T&D, Finance, Planning and Marketing
Corporate Governance
Godrej Properties ensures transparency in all internal and external processes along with
strong conformity to norms.
Professional Management
Godrej Properties is led by experienced leadership and highly qualified cross-functional
teams. Strong processes e.g. Concerto (execution), SAP, Performance Review etc are
followed. There is a strong focus and high emphasis on employee training & development
at all levels.
Quality
Highest quality standards are followed for project execution, materials and services. Godrej
Properties collaborates only with the best-in-class associates.
Design
while focusing on customer requirements and incorporating them in design, Godrej
Properties ensures unique and innovative designs for all projects.
Project Management
Godrej Properties' constant focus is on core competencies in project management. The
company creates scalability and an ideal combination of expertise by associating with the
best in respective fields.
BALANCE SHEET OF GODREJ PROPERTIES
ANALYSIS:

Analysis positive on Oberoi Realty, see strong earnings in FY18

Oberoi Realty shares climbed 5 percent intraday Monday. Analysts retained

positive stance on the stock after strong earnings in July-September quarter
led by Worli project despite weak market conditions.

Money control Bureau

Oberoi Realty shares climbed 5 percent intraday Monday. Analysts retained positive stance on
the stock after strong earnings in July-September quarter led by Worli project despite weak
market conditions.

With Rs 4,800 crore in pre-sales yet to enter its profit & loss (P&L), visibility on future revenue
recognition and cash flow remains high, says CLSA, which continued to rate Oberoi buy with
increased target price at Rs 398 (from Rs 360 earlier).

Mumbai-based Oberoi Realty's Q2 presales increased 24 percent sequentially to Rs 500 crore, a

positive surprise given subdued market conditions. The presale increase was seen both at its
luxury Worli project (up 27 percent) and at other locations (up 21 percent). The 1 lakh square
feet of new office leasing space was also encouraging, the brokerage house says.

Its Q2FY17 P&L was subdued, partly on higher rainfall activity.

Profit during the quarter increased 12.9 percent to Rs 84 crore and revenue grew by 32 percent to
Rs 252 crore on yearly basis. Operating profit showed a 14.4 percent growth at Rs 125.8 crore
but margin contracted 810 basis points at 49.9 percent YoY on revenue mix differences.

Bookings remained very strong in Q2 as area booked increased nearly 3-fold YoY to 1.77 lakh
square feet and order book stood at Rs 4,043 crore at the end of September 2016 against Rs
2,723 crore in September 2015.
CLSA says Oberoi's low leverage and management's intention to accelerate development via
entering a co-development platform for its retail business implies NAV accretive opportunities in
the near term.

With maintaining overweight rating and target price of Rs 370 on the stock, JP Morgan says
Worli sale progression and Goregaon Phase 3 response are key monitorables on the business near
term.

It expects strong traction in company's earnings in FY18 as new launches done by the company
in Mulund / Borivali and Worli reach earnings threshold. Technically the company has almost no
land bank with all the projects under construction and pricing / offtake having being established
on most.

JP Morgan thinks the business will likely enter into a materially high cash surplus zone by end
FY18 (once Worli investment is over) with limited debt leaving it with significant flex on new
business development strategy.

Till date in 1HFY17 post launch, Worli project (Ritz Carlton Residences) seems to be building
on positive momentum with take up both in Q1 and Q2 being better than expectations. However,
it is still early days as 30 units booked out of around 200 units, JP Morgan says.
It further says bookings will need to rise to 50 units to reach revenue recognition and
approximately 75-80 units to start causing a major swing in earnings.

That will take 3-5 quarters based on current run rate, JP Morgan believes. According to its
research note, total estimated EBITDA for Worli project is close to Rs 1,800 crore (to Oberoi)
and but free cash flow to Oberoi is around Rs 3,500 crore.

In Goregaon project, the company just has around 460 units left between Exquisite / Esquire
(both at high pricing) and hence a new launch could help correct that anomaly and also help
provide offset on sales as Exquisite project starts to roll off by next year, it feels.