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Informist, Thursday, Jul. 31, 2025

 

By Shakshi Jain

 

NEW DELHI – Godrej Properties Ltd. is likely to post a strong year-on-year top line growth for the June quarter but its bottom line is expected to fall due to a high base effect, according to analysts tracking the company. In the year-ago quarter, the realty company's consolidated net profit had risen over four times on year.

 

Godrej Properties is expected to report a consolidated net profit of INR 3.38 billion for the June quarter, down 35% on year, according to the average of estimates from five brokerages. Sequentially, this would mean a decline of around 12%. The highest estimate for net profit is INR 4.69 billion by Motilal Oswal Financial Services Ltd. while the lowest is INR 1.13 billion by HDFC Securities Ltd. The realty major will report its June quarter earnings Friday.

 

The company's consolidated revenue likely rose 59% on year but fell almost 45% sequentially to INR 11.77 billion in the reporting quarter. The highest estimate for revenue is INR 16.18 billion from Nuvama Wealth Management Ltd. while the lowest is INR 9.05 billion from Kotak Institutional Equities.

 

In the March quarter, Godrej Properties' bottom line had fallen 19% on year to INR 3.82 billion even though its top line had risen 49% to INR 21.22 billion. Sequentially, the company's net profit and revenue had more than doubled during the quarter.

 

Brokerages estimate the company clocked pre-sales of INR 70 billion to INR 80 billion during the reporting quarter, aided by new launches and sustenance sales. In the June quarter, Godrej Properties launched around five new projects and purchased multiple land parcels across at least four cities, including 16 acres in Pune, 43 acres in Panipat, 48 acres in Bengaluru, and 50 acres in Raipur.

 

Godrej Properties is expected to report a decline in earnings on a year-on-year basis primarily due a high base effect, said Anil R., research analyst at Geojit Investments Ltd. "Margins are also expected to remain soft, impacted by higher operating costs," he added. An analyst at another brokerage firm said the company's bottom line also likely took a beating due to competitive pricing and high finance costs.

 

The company is expected to post earnings before interest, taxes, depreciation, and amortisation of INR 808 million for the reporting quarter, according to the average of estimates from four brokerages. The EBITDA estimates range between a low of INR 324 million by Kotak Institutional Equities and a high of INR 1.28 billion by Motilal Oswal Financial Services.

 

Brokerages are largely bullish on earnings of realty companies in the light of perceived support factors. "We believe industry consolidation has intensified, and expect housing sales to rise going forward due to improved affordability in the wake of the rate cuts by the RBI (Reserve Bank of India)," Nuvama said in a report.

 

On Thursday, shares of the company ended at INR 2,102.90 on the National Stock Exchange, down 1.2%. The stock is down almost 7% since the company reported its earnings for the March quarter. The stock is also down over 38% from its 52-week high of INR 3,399, reached on Sep. 26.

 

Of the 11 research reports on the company available with Informist, 10 have a 'buy' rating on the stock while one has a 'sell' recommendation. The average target price of the buy recommendations is INR 2,943.

 

Following are the Apr-Jun 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
Motilal Oswal Financial Services Ltd	10,158.00	4,685.00	1,276.00
Nuvama Wealth Management Ltd	16,184.00	4,483.00	376
Kotak Institutional Equities	9,051.00	3,482.00	324
JM Financial Institutional Securities Pvt Ltd	12,845.00	3,122.00	1,254.00
HDFC Securities Ltd	10,609.00	1,129.00
Average	11,769.40	3,380.20	807.5

 

End

 

Edited by Ashish Shirke

 

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