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Informist, Wednesday, Jul 31, 2024

 

MUMBAI – Real estate developer Godrej Properties Ltd reported growth in its consolidated net profit both on an annual and sequential basis for the June quarter. The company reported its "highest ever" net profit of 5.20 bln rupees in Apr-Jun, up over fourfold or 316% on year and 10.4% on quarter. The bottomline growth in the quarter was aided by a decline in total expenses and a gain in its other income resulting from a stake sale of its joint venture.

 

"Godrej Properties delivered another robust quarter registering a multifold growth in bookings, operating cashflows, and earnings", Pirojsha Godrej, executive chairperson of the company said in a press release. With a robust launch pipeline, strong balance sheet, and resilient demand, the company is on track to achieve its bookings target of 270 bln rupees in 2024-25 (Apr-Mar) while also achieving its highest-ever deliveries and collections performance, he said.

 

In an updated assessment of its guidance for 2024-25, the company said it was on track to meet or exceed its guidance for booking value, cash collections, and deliveries. So far this financial year, the company has achieved 32% of its 270-bln-rupee bookings target. It has achieved 20% of its cash collection target of 150 bln rupees and 18% of its deliveries target of 15 mln sq ft.

 

Despite strong bookings and collections in the quarter, the Mumbai-based developer's consolidated revenue for the June quarter fell to 7.39 bln rupees, down 21.1% from the same period last year and 48.2% from Jan-Mar.

 

Even as its income from operations fell, the company's net profit surged because of an 18% on-year decline in total expenses and a gain in its other income. During the quarter under review, the company sold a 5% stake held in its joint venture entity, Godrej Green Homes Pvt Ltd, resulting in a gain of 466.6 mln rupees. As per conditions in the share purchase agreement, the company lost joint control in the joint venture. The sale resulted in its other income rising over 191% on year to 9.60 bln rupees. This added up to the total income rising over 34% on year to 17 bln rupees.

 

The company's total expenses in the June quarter, including finance costs, were 9.21 bln rupees compared with 11.22 bln rupees a year ago. The company's tax expenses for the quarter rose 233% on year to 1.97 bln rupees. The company's earnings before interest, taxes, depreciation, and amortisation grew 237% on year to 7.74 bln rupees.

 

The company's sales volume in Apr-Jun grew 299% on year to 8.99 mln sq ft, and was touted as the "highest-ever quarterly volume sold by any listed developer in India". Booking value in the quarter grew 283% on year to 86.37 bln rupees. This marks the company's highest-ever quarterly sales for Apr-Jun and its second-highest quarterly sales ever, it said in the release.

 

Collections rose 54% on year to 30.12 bln rupees in Apr-Jun, leading to net operating cash flow growth of 737% on year to 9.88 bln rupees. In the June quarter, the company also delivered properties around 2.7 mln sq ft across three cities. The company had eight new project and phase launches in the quarter across five cities, it said in the release. In Apr-Jun, the company added two group housing projects in Pune and Bengaluru, with an estimated booking value of 30 bln rupees.

 

The company's Godrej Woodscapes project in Bengaluru was the most successful launch, which achieved a booking value of 31.56 bln rupees from 3.40 mln sq ft of area sold. Within this quarter, the company achieved over 500% sequential growth in sales in Bengaluru and surpassed its full year 2023-24 sales in South India, the company said.

 

Meanwhile, its Godrej Jardinia project was the most successful launch in Noida, achieving a booking value of 23.77 bln rupees from 1.60 mln sq ft of area sold, it said. The company achieved booking value of over 44 bln rupees in Sector 146, Noida, in less than a year.

 

Shares of Godrej Properties closed 1.2% higher at 3,219.55 rupees on the National Stock Exchange. The company declared its Apr-Jun earnings during market hours today.  End

 

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

 

Reported by Alina Geogy

Edited by Vidhi Verma

 

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