Godrej Properties Q2 profit jumps fivefold as sales, bookings revive

Godrej Properties Ltd Tuesday reported a fivefold increase in consolidated net profit for the second quarter, helped by higher sales and better inventory management.

Net profit for the quarter through September rose to Rs 35.7 crore from Rs 7.10 crore a year earlier, the Godrej Group company said.

Revenue from operations climbed 44% to Rs 129.32 crore from Rs 89.5 crore in the same period last year.

While revenue jumped 44%, its total expenses rose barely 7.8% to Rs 231.8 crore. This was thanks to a sharp drop in cost of materials consumed to around Rs 236 crore in the second quarter from Rs 1,773 crore a year earlier.

In addition, inventory stood at a negative Rs 177 crore compared with a negative Rs 1,772 crore last year.

The developer’s operational performance also showed significant improvement, with total booking value in the second quarter more than doubling to Rs 2,574 crore from Rs 1,074 crore a year earlier. Total booking volume stood at 3.61 million sq ft, compared with 1.73 million sq ft in July-September last year.

Godrej Properties Q2: Other highlights

1) Total income rose 22% from a year earlier to Rs 290 crore for July-September 2021.

2) EBITDA increased 36% to Rs 105 crore from Rs 77 crore registered a year earlier.

3) Profit before tax jumped 158% to Rs 58 crore; PBT margin grew to 20.1% from 9.5%.

4) Net profit margin expanded to 12.3% from 3% in Q2 last year.

5) Net debt dropped to just Rs 16 crore as of September 30, 2021, from Rs 2,733 crore a year earlier.

6) Average borrowing cost fell to 6.5% from 7.55% a year earlier and 6.65% in June.

Godrej Properties management commentary

Pirojsha Godrej, executive chairman at Godrej Properties, said that the real estate sector rebounded strongly in the second quarter after a weak first quarter.

He also said that Godrej Properties recorded one of its best ever quarters for bookings with a strong response to new launches across India.

“We have a robust launch pipeline in the second half of the financial year and expect to build on the current momentum,” he added.