‘With revival, strong sales to bounce back’

The Covid-19 lockdown is expected to eliminate smaller brands and hasten consolidation in the real estate sector. Godrej Properties will benefit out of the consolidation due to its strong balance sheet and sales capabilities, Managing Director MOHIT MALHO

You did good sales in Q4 despite lockdown. How did you manage it?

We did good numbers before the lockdown. We would have done better numbers if the lockdown was not here. We did bookings of around ~800 crore during lockdown. During lockdown, we used videoconferencing and Zoom call effectively. We actually reworked sales by leveraging technology. Actually, we digitised the sales process one and half years ago.

How does FY21 look like and what are you doing to bring back customers?

It is too early to comment. We have to wait for the lockdown to end. We are not doing anything special. We are in touch with customers through technology. We are using new ways of selling. A lot of innovations are going on.

Will you defer launches scheduled for this quarter?

There are a lot of projects in the final stages of approval. Depending on the stage of approval and lockdown, we will take a call.

How will Godrej Properties benefit out of the consolidation?

People with balance sheet strength and sales capabilities will partner other developers in the coming quarters. We are already sitting on a cash pile of ~2,500 crore and have a strong brand name. So, we will benefit from the consolidation.

Are you seeing a surge in joint venture/joint development proposals?

We are getting proposals. But there is no dramatic increase. Once things open up, we will get to assess the situation.

Do you have any plans of slashing apartment prices to boost sales?

We do not have any plans of slashing prices. The industry has been reeling from a slowdown for the last eight years. There is a limited scope to cut prices. Barring South Mumbai, a very few places have significant completed stock.

Do you think the entire Covid19 issue will delay the recovery in residential real estate?

It depends on how long the lockdown continues and what will be the impact of the lockdown on the economy. If the lockdown has low impact on the economy, recovery will be faster. Otherwise, it will push recovery by one more year. Whenever revival happens, there will be strong recovery in sales.