Earnings Outlook
Godrej Properties Jan-Mar sales, PAT seen down on year
This story was originally published at 22:06 IST on 30 April 2025
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MUMBAI – It may be a poor year-on-year show by Godrej Properties Ltd. this earnings season, analysts said. They, however, expect the realty firm to post growth in its top line and bottom line for the March quarter on a sequential basis.
Godrej Properties is expected to report a consolidated net profit of INR 2.43 billion for the quarter ended March, according to the average of estimates from five brokerages. This will be a 48% fall year-on-year but a 49% sequential growth. The highest estimate of net profit was INR 4.15 billion from Motilal Oswal Financial Services Ltd. while the lowest was INR 1.18 billion, by Nuvama Institutional Equities.
In the December quarter, the realty firm's bottom line had more than doubled on year to INR 1.63 billion even though it was down nearly 52% sequentially.
The company's consolidated revenue likely fell over 3% in the latest quarter to INR 13.83 billion from INR 14.26 billion a year ago. However, the revenue would be up 43% over the previous quarter. The estimates for revenue range between INR 6.7 billion by Motilal Oswal and INR 20.4 billion by Nuvama. Several realty projects saw delays in regulatory approvals in the March quarter, HDFC Securities said.
Analysts tied the sequential growth in the company's revenue to the 87% sequential jump seen in its presales during the quarter gone by. According to Godrej Properties, the company clocked its highest-ever quarterly bookings of INR 101.63 billion in Jan-Mar. The fourth quarter bookings grew 87% on quarter and 7% on year, achieved through sales of 3,703 homes spanning 7.52 million square feet.
In FY25, the company sold 15,302 homes, with a total area of 25.73 million square feet. This reflects a 29% on-year volume growth. According to Godrej Properties, it achieved 109% of its annual guidance for bookings in FY25.
Godrej Properties is expected to post earnings before interest, tax, depreciation and amortisation of INR 3.73 billion for the latest quarter. The EBITDA estimates range between INR 1.20 billion by HDFC Securities and INR 6.49 billion by Nuvama.
"Future business development will be supported by robust operational cash flows in FY25 and qualified institutional placement of INR 60 billion," Choice Institutional Equities said in a note.
HDFC Securities said though domestic demand drivers remain stable, rising input costs due to potential global tariff wars could pressure margins of realty companies. The broking firm sees growth slowing down in the National Capital Region as prices, ticket sizes, and investors to end-user ratio are at peak. The Mumbai Metropolitan Region and key southern markets are expected to grow 15-20% in the new financial year due to a higher share of end-user demand in the mid-to-upper luxury segment. Stable pricing and the recent 50-basis-point cut in interest rates are expected to help these sales, the brokerage said.
All nine research reports on the company available with Informist have a 'buy' or equivalent rating on Godrej Properties shares, with an average target price of INR 2,985. The company will report its earnings for the latest quarter Friday. On Wednesday, shares of the company closed at INR 2,161.50 on the National Stock Exchange, up 3% from the previous day.
Following are the Jan-Mar earnings estimates for Godrej Properties based on reports from five brokerage firms in descending order by the estimate of net profit (in INR million):
Brokerage firm | Net Sales | Net Profit | EBITDA |
Nuvama Wealth Management Ltd | 20,373.00 | 1,183.00 | 6,485.00 |
Elara Securities (India) Pvt Ltd | 14,872.00 | 1,381.00 | 4,434.00 |
HDFC Securities Ltd | 12,835.00 | 2,322.00 | 1,195.00 |
Kotak Institutional Equities | 14,334.00 | 3,103.00 | |
Motilal Oswal Financial Services Ltd | 6,730.00 | 4,151.00 | 2,808.00 |
Average | 13,828.80 | 2,428.00 | 3,730.50 |
End
Reported by Shakshi Jain
Edited by Ashish Shirke
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