Godrej Properties Ltd reported financial results for Q3 FY2015 with net sales up 114.63% to Rs. 5193.04 million and net profit up 26.44% to Rs. 472.42 million. Earnings per share stood at Rs. 2.37, up 26.37% from the prior year. During the quarter, the company added a new project in Mumbai with 1.2 million square feet of saleable area and total bookings increased in value to Rs. 5480 million and volume to 701,729 square feet. Estimates show net sales and profit expected to grow at a CAGR of 23% and 9% from FY2013-FY2016 respectively on the back

1. CMP 277.65
Target Price 320.00
ISIN: INE484J01027
FEBRUARY 2nd
2015
GODREJ PROPERTIES LTD
Result Update (CONSOLIDATED): Q3 FY15
BUYBUYBUYBUY
Index Details
Stock Data
Sector Realty
BSE Code 533150
Face Value 5.00
52wk. High / Low (Rs.) 288.00/153.90
Volume (2wk. Avg. Q.) 53000
Market Cap (Rs. in mn.) 55348.97
Annual Estimated Results (A*: Actual / E*: Estimated)
YEARS FY14A FY15E FY16E
Net Sales 11792.14 16779.09 19128.16
EBITDA 3576.31 3099.53 3441.62
Net Profit 1594.39 1939.12 2172.80
EPS 8.00 9.73 10.90
P/E 34.69 28.54 25.47
Shareholding Pattern (%)
1 Year Comparative Graph
GODREJ PROPERTIES LTD BSE SENSEX
SYNOPSIS
Godrej Properties Limited (GPL) Established in 1990,
the company is currently developing residential,
commercial and township projects spread across 104
million sq. ft. in 12 cities across India.
Revenue for the quarter rose by 114.63% to Rs.
5193.04 mn from Rs. 2419.54 mn, when compared
with the prior year period.
Net Profit for the quarter was up by 26.44% at Rs.
472.42 mn against Rs. 373.62 mn, corresponding
quarter of previous year.
Operating profit is Rs. 833.44 mn as against Rs. 973.89
mn in the corresponding period of the previous year.
Other Income jumps to 61.52% of Rs. 193.40 mn for
the quarter ended 31st Dec 2014, from Rs. 119.74
million for the quarter ended 31st Dec, 2013.
Earning per Share of Rs. 2.37 for the 3rd quarter of
FY15 as against an Earning per Share of Rs. 1.88 in the
corresponding quarter of the previous year.
In Q3 FY15, Godrej Properties Limited added 1 new
project with Rs.1.2 mn sq.ft. of saleable area at
vikhroli, Mumbai.
During Q3 FY15, total booking value increased to Rs
5480.00 million and total booking volume increased
701,729 sq. ft.
Godrej Properties Ltd has received 13 awards in Q3
FY2015.
Net Sales and PAT of the company are expected to
grow at a CAGR of 23% and 9% over 2013 to 2016E
respectively.
PEER GROUPS CMP MARKET CAP EPS P/E (X) P/BV(X) DIVIDEND
Company Name (Rs.) Rs. in mn. (Rs.) Ratio Ratio (%)
Godrej Properties Ltd 277.65 55348.97 8.00 34.69 3.08 40.00
Oberoi Realty Ltd 283.10 92922.80 8.64 32.77 3.40 20.00
Brigade Enterprises Ltd 169.50 19095.00 8.26 20.52 1.50 20.00
Hubtown Ltd 108.15 7866.40 6.62 16.34 0.46 10.00

2. QUARTERLY HIGHLIGHTS (CONSOLIDATED)
Results updates- Q3 FY15,
Godrej Properties Ltd is currently developing
residential, commercial and township projects
spread across 9.3 million square meters in 12 cities
across India has reported its financial results for the
quarter ended 31st Dec, 2014.
Months Dec-14 Dec-13 % Change
Net Sales 5193.04 2419.54 114.63
PAT 472.42 373.62 26.44
EPS 2.37 1.88 26.37
EBITDA 833.44 973.89 (14.42)
The company achieved a turnover of Rs. 5193.04 million for the 3rd quarter of the financial year 2015 as against
Rs. 2419.54 million in the corresponding quarter of the previous year, an increase of 114.63% y-o-y. In Q3 FY15,
Net profit jumps to Rs. 472.42 million against Rs. 373.62 million in the corresponding quarter ending of previous
year. Reported earnings per share of the company stood at Rs. 2.37 a share during the quarter, registering
26.37% increase over previous year period. Profit before interest, depreciation and tax is Rs. 833.44 million as
against Rs. 973.89 million in the corresponding period of the previous year.
Break up of Expenditure
Particulars
Rs. Millions
Q3 FY15 Q3 FY14
Cost of Sales 532.69 391.23
Employee Benefit Expenses 97.64 54.91
Depreciation 20.38 13.04
Other Expenses 142.59 94.89
Latest Updates
During the quarter,the company completed Godrej One, which will be the new corporate headquarters for
many companies in the Godrej Group and the first phase of Godrej Frontier, its first project in Gurgaon.
Godrej Properties Ltd reported that the Godrej Projects Development Private Limited (GPDPL), a wholly
owned subsidiary of the Company has acquired 49% of the paid-up share capital and entire Debentures of
Godrej Premium Builders Private Limited (GPBPL).

3. Godrej Properties Ltd has received 13 awards in Q3 FY2015.
Godrej Projects Development Private Limited (GPDPL), a wholly owned subsidiary of the Company has
acquired 49.90% of the paid-up share capital of Godrej Buildwell Private Limited (GBPL), a subsidiary of the
Company.
Business Development Highlights:
In Q3 FY15, Godrej Properties Limited added 1 new project with Rs.1.2 mn sq.ft. of saleable area at
vikhroli, Mumbai.
vikhroli, Mumbai
Added GPL`s eighteenth project in Mumbai with 1.2 million sq.ft. saleable area
DM project GPL`s economic interest is 10% of revenues.
Sales Highlights
In Q3 FY15, total booking value increased to Rs 5480.00 million and total booking volume increased
701,729 sq. ft. as compared to total booking value of Rs. 4280.00 million and total booking volume of
513,641 sq. ft. in Q3 FY2014.
Residential projects recorded booking value of Rs. 3700.00 million and booking volume of 644,718 sq. ft.
Commercial projects witnessed booking value of Rs. 1780.00 million and booking volume of 57,011 sq. ft.
Standalone Results
Total Income has increased from Rs. 1089.01 million for the quarter ended Dec 31, 2013 to Rs. 1591.83
million for the quarter ended Dec 31, 2014.
The Company has posted a net profit of Rs. 312.07 million for the quarter ended Dec 31, 2014 as compared
to Rs. 183.56 million for the quarter ended Dec 31, 2013.

4. COMPANY PROFILE
Godrej Properties Limited Established in 1990 and is headquartered in Mumbai, India, is the first real estate
company to have ISO certification. Godrej Group ranked as 2nd most trusted Indian brand in the 2013 Brand
Trust Report. The company was formerly known as Godrej Properties and Investments Limited and changed its
name to Godrej Properties Limited in November 2004. Godrej Properties brings the Godrej Group philosophy of
innovation and excellence to the real estate industry. Each Godrej Properties development combines a 117-year
legacy of excellence and trust with a commitment to cutting-edge design and technology. Godrej Properties is
currently developing residential, commercial and township projects spread across 104 million square feet in 12
cities across India. To create landmark structures, Godrej Properties collaborates with outstanding associates
and reputed names. The company aims to deliver superior value to all stakeholders through extraordinary and
imaginative spaces created out of deep customer focus and insight. Godrej Properties Limited is a subsidiary of
Godrej Industries Limited.
Over the last 3 years, Godrej Properties has received over 90 awards and recognitions, including “Most Reliable
Builder for 2014" at the CNBC AWAAZ Real Estate Awards 2014 and “Popular Choice - Developer of the Year”
award by ET NOW in 2013.

5. FINANCIAL HIGHLIGHT (CONSOLIDATED) (A*- Actual, E* -Estimations & Rs. In Millions)
Balance Sheet as at March31, 2013 -2016E at March31, 2012 - at March31-2015E
GODREJ PROPERTIES LTD FY13A FY14A FY15E FY16E
I EQUITY & LIABILITIES
A) Shareholder's Funds
a) Share Capital 780.46 991.23 996.74 996.74
b) Reserves and Surplus 13509.04 16942.81 20670.23 24804.27
Sub-Total Net worth 14289.50 17934.04 21666.97 25801.01
B) Minority Interest 1059.19 2030.57 2436.68 2802.19
C) Non Current Liabilities
a) Long term borrowing 3756.65 2860.86 2002.60 1441.87
b) Other Long term liabilities 2.85 11.19 18.80 23.69
c) Long term Provisions 27.95 28.79 31.09 32.96
Sub-Total Non Current Liabilities 3787.45 2900.84 2052.49 1498.52
D) Current Liabilities
a) Short term borrowings 12876.25 21429.40 27429.63 32092.67
b) Trade payables 8200.07 7042.97 7324.69 7764.17
c) Other Current liabilities 6091.13 9568.61 12247.82 13472.60
d) Short term Provisions 484.86 560.77 588.81 635.91
Sub-Total Current Liabilities 27652.31 38601.75 47590.95 53965.36
TOTAL EQUITY & LIABILITIES (A+B+C+D) 46788.45 61467.20 73747.10 84067.08
II ASSETS
E) Non-Current Assets
Fixed Assets
i. Tangible assets 106.96 126.10 145.02 159.52
ii. Intangible assets 398.56 511.34 593.15 682.13
iii. Capital Work in Progress 336.37 598.52 718.22 833.14
iv. Intangible assets under development 19.40 19.40 19.79 20.01
a) Sub-Total Fixed Assets 861.29 1255.36 1476.18 1694.80
b) Non-current investments 0.03 0.03 0.03 0.03
c) Deferred Tax Asset 42.79 21.46 18.24 16.05
d) Long Term loans and advances 1556.50 1272.61 1476.23 1653.37
e) Other non-current assets 108.12 33.81 29.75 26.78
Sub- Total Non-Current Assets 2568.73 2583.27 3000.43 3391.03
F) Current Assets
a) Inventories 32351.93 37267.88 48075.57 55767.66
b) Trade receivables 1049.72 1599.55 1647.54 1729.91
c) Cash and Bank Balances 1707.15 8710.07 7577.76 7956.65
d) Short-terms loans & advances 6704.33 8364.17 9033.30 9936.63
e) Other current assets 2406.59 2942.26 4412.50 5285.20
Sub-Total Current Assets 44219.72 58883.93 70746.67 80676.05
Total Assets (E+F) 46788.45 61467.20 73747.10 84067.08

6. Annual Profit & Loss Statement for the period of 2013 to 2016E
Value(Rs.in.mn) FY13A FY14A FY15E FY16E
Description 12m 12m 12m 12m
Net Sales 10371.23 11792.14 16779.09 19128.16
Other Income 104.47 750.07 767.25 859.32
Total Income 10475.70 12542.21 17546.34 19987.48
Expenditure -7513.24 -8965.90 -14446.81 -16545.86
Operating Profit 2962.46 3576.31 3099.53 3441.62
Interest -30.01 -44.83 -39.46 -42.62
Gross profit 2932.45 3531.48 3060.07 3399.00
Depreciation -43.88 -57.70 -94.05 -110.98
Profit Before Tax 2888.57 3473.78 2966.02 3288.02
Tax -915.68 -1110.92 -700.63 -766.11
Profit After Tax 1972.89 2362.86 2265.39 2521.91
Minority Interest -588.54 -768.47 -326.27 -349.11
Net Profit 1384.35 1594.39 1939.12 2172.80
Equity capital 780.46 996.17 996.74 996.74
Reserves 13509.04 16942.81 20670.23 24804.27
Face value 10.00 5.00 5.00 5.00
EPS 17.74 8.00 9.73 10.90
Quarterly Profit & Loss Statement for the period of 30th June, 2014 to 31st Mar, 2015E
Value(Rs.in.mn) 30-Jun-14 30-Sep-14 31-Dec-14 31-Mar-15E
Description 3m 3m 3m 3m
Net sales 3318.25 2939.74 5193.04 5328.06
Other income 311.15 129.25 193.40 133.45
Total Income 3629.40 3068.99 5386.44 5461.51
Expenditure -2875.39 -2372.35 -4553.00 -4646.07
Operating profit 754.01 696.64 833.44 815.44
Interest -9.85 -7.66 -8.19 -13.76
Gross profit 744.16 688.98 825.25 801.68
Depreciation -22.74 -22.72 -23.82 -24.77
Profit Before Tax 721.42 666.26 801.43 776.91
Tax -194.08 -114.34 -236.05 -156.16
Profit After Tax 527.34 551.92 565.38 620.75
Minority Interest -71.18 -85.90 -92.96 -76.23
Net Profit 456.16 466.02 472.42 544.52
Equity capital 996.25 996.74 996.74 996.74
Face value 5.00 5.00 5.00 5.00
EPS 2.29 2.34 2.37 2.73

7. Ratio Analysis
Particulars FY13A FY14A FY15E FY16E
EPS (Rs.) 17.74 8.00 9.73 10.90
EBITDA Margin (%) 28.56 30.33 18.47 17.99
PBT Margin (%) 27.85 29.46 17.68 17.19
PAT Margin (%) 19.02 20.04 13.50 13.18
P/E Ratio (x) 15.65 34.69 28.54 25.47
ROE (%) 13.81 13.17 10.46 9.77
ROCE (%) 9.72 8.61 6.25 5.99
Debt Equity Ratio 1.16 1.35 1.36 1.30
EV/EBITDA (x) 12.35 19.82 24.91 23.51
Book Value (Rs.) 183.09 90.04 108.69 129.43
P/BV 1.52 3.08 2.55 2.15
Charts

8. OUTLOOK AND CONCLUSION
At the current market price of Rs. 277.65, the stock P/E ratio is at 28.54 x FY15E and 25.47 x FY16E
respectively.
Earning per share (EPS) of the company for the earnings for FY15E and FY16E is seen at Rs. 9.73 and Rs.
10.90 respectively.
Net Sales and PAT of the company are expected to grow at a CAGR of 23% and 9% over 2013 to 2016E
respectively.
On the basis of EV/EBITDA, the stock trades at 24.91 x for FY15E and 23.51 x for FY16E
Price to Book Value of the stock is expected to be at 2.55 x and 2.15 x respectively for FY15E and FY16E.
We recommend ‘BUY’ in this particular scrip with a target price of Rs. 320.00 for Medium to Long term
investment.
INDUSTRY OVERVIEW
The Real Estate Sector continues to be at the core of the Indian economy and a meaningful contributor to its GDP
growth, employment, foreign direct investment and to the banking & finance industry (BFSI). Although FY2013-
14 was a difficult year for the real estate sector the long-term potential for the sector remains intact and it
continues to be an important catalyst to the nation’s overall economic growth.
The Indian economy weathered the global financial crisis well. It quickly recovered from the decline in FY2008-
09 to a healthy growth rate of around 9% annually during FY2009-10 and FY2010-11. However, the recovery
was short-lived as economic growth decelerated to 6.2% in FY2011-12 and further to 5.0% in FY2012-13. The
Indian economy grew by 4.7% in FY14. This marks a second straight year of below 5% growth. A series of
reform measures have been taken including clearing several large- scale projects by the Cabinet Committee on
Investment. These are collectively projected to help revive the Indian economy and investor sentiment. In
addition, the resurgence of exports, prospects of a revival in the global economy and moderation in inflation
point towards a better out look for the domestic economy during FY2014-15.
REAL ESTATE SECTOR
The real estate sector continues to be at the core of the Indian Economy and a meaningful contributor to i t s
GDP growth, employment , foreign direct investment and to the banking and finance industry (BFSI ) . Al
though FY2013-14 was a difficult year for the real estate sector the long- term potential for the sector remains
intact and it continues to be an important catalyst to the nation’ s overall economic growth.

9. During FY2013-14, subdued sales, increased unsold inventory levels and high leverage undermined the sector ’ s
performance. Political uncertainty, slow economic growth, sustained weakening of the Indian Rupee, rising
inflation and hardening interest rates continued to be the key barriers to improving demand. Further, adverse
regulatory developments and increased borrowing rates pushed up project costs and delayed execution
timelines. The real estate market also witnessed a general s lowdown in absorption rates in the residential
and commercial as set classes . Delays in obtaining approval s, demand- supply gaps and rising input cost s
continued to be a cause for concern.
RESIDENTIAL REAL ESTATE
India’s residential housing segment underperformed due to weak demand trends which slowed down sales,
reduced absorption and increased inventory levels. According to the property research firm Liases Foras, the
pan- India residential inventory as on December 31, 2013 stood at approximately 779 million square feet (ms f),
as against quarterly sales of approximately 60-65 msf, indicating three years of available inventory.
High cost of finance, escalating cost pressures and an opaque regulatory scenario have been the key impediments
which led developers to curtail prices. For home buyers, the sentiment has been considerably soft with
persistently high interest rates and real estate prices. Housing demand in India is seen exceeding supply over the
next decade. Never the less, the opportunity needs to be well supported by development policies and regulations
aimed at creating additional infrastructure and stimulating housing demand.
Going forward, policy-based effort s is expected from the Government to make real estate more transparent and
investment friendly.
COMMERCIAL REAL ESTATE
The commercial real estate sector stayed relatively weak. Reduction in new office developments, decline in
leasing activity, lack of appreciation in capital values, compression in yields and lease rentals across major
Indian cities were a few factors that impacted overall performance. Al so developers were more inclined towards
residential projects over commercial development. A decelerating GDP growth and political uncertainty
impacted the overall investment climate. An emerging trend in CY2013 was that of a substantial portion of
office space absorption being on account of companies relocating or consolidating operations to a single, larger
and economic location. A similar trend continued during the first quarter of 2014. The occupier focus continued
to remain on improving existing space utilization and/or relocation to peripheral and secondary micro markets
with majority of deal closures resulting for small - to-medium- sized office spaces. IT/ ITeS, financial and services
segments continued to drive demand for office space in India’s leading cities. In the long term, commercial real
estate is expected to witness robust demand with an increasing number of companies looking to expand
operations and setting up offices in suburban locations .

10. Disclaimer:
This document is prepared by our research analysts and it does not constitute an offer or solicitation for the
purchase or sale of any financial instrument or as an official confirmation of any transaction. The information
contained herein is from publicly available data or other sources believed to be reliable but we do not represent that
it is accurate or complete and it should not be relied on as such. Firstcall Research or any of its affiliates shall not be
in any way responsible for any loss or damage that may arise to any person from any inadvertent error in the
information contained in this report. Firstcall Research and/ or its affiliates and/or employees will not be liable for
the recipients’ investment decision based on this document.

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