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Godrej Properties, a leading real estate developer, has reported robust financial performance for the third quarter of the fiscal year 2023-24. The company's consolidated net profit for the December quarter increased by 6% year-on-year, reaching INR 62.3 crore. Similarly, revenue from operations surged to INR 330.4 crore, rising by an impressive 68.4% compared to the previous year.
Despite the year-on-year growth, both profit and revenue experienced a sequential decline. During the quarter, the company sold 4.3 million square feet of area, marking a 2% decrease from the previous year and a significant 17% decrease sequentially. However, the booking value witnessed a substantial 76% year-on-year increase, reaching INR 5720 crore, indicating higher selling prices. Notably, collections also saw a notable uptick, rising by 43% year-on-year to INR 2411 crore.
Godrej Properties has achieved 93% of its total sales guidance of INR 14,000 crore for the fiscal year 2023-24. However, it faces challenges in other areas, such as collections, deliveries, and business development targets. The company has only collected 67% of its annual target of INR 10,000 crore, with slightly over half of the targeted house deliveries and only 56% of the target business development of INR 15,000 crore achieved. Nonetheless, the company remains optimistic about meeting or even exceeding its stated guidance.
During the year, Godrej Properties launched eight new projects and phases across five cities, showcasing its commitment to expansion and growth. Notably, brisk sales were observed in projects launched in NCR and Mumbai. In NCR, projects like Godrej Aristocrat and Godrej 101 generated sales worth INR 2942 crore, while in Mumbai, projects like Godrej Sky Terraces, Godrej Ascend, and Godrej Avenue collectively recorded sales of INR 248 crore and INR 687 crore within four months of launch, respectively.
Geographically, NCR accounted for the highest sales in the quarter, amounting to INR 3301 crore, followed by Mumbai with sales of INR 1065 crore, and Bengaluru with sales of INR 728 crore. Despite these achievements, the company faced delays in four out of the twenty planned projects for FY24, with a total area of 16.25 million square feet.
The company's expenses for the quarter rose to INR 429 crore from INR 265 crore the previous year, primarily due to a significant increase in employee benefit and other expenses. Consequently, the EBITDA margin, based on total income, decreased to 29% compared to 41.9% the previous year, although it remained consistent sequentially. Additionally, the company's net debt increased to INR 6903 crore by the end of the quarter, compared to INR 3649 crore at the end of the previous fiscal year.
In another development, Godrej Properties reported an 11.21% increase in its net consolidated profit for Q3 FY24, reaching INR 62.72 crore, with a total income of INR 548.31 crore, reflecting a growth of 35.53% compared to the similar quarter of the previous year. The company expressed confidence in significantly exceeding its bookings guidance of INR 14,000 crore for FY24, aiming for its best-ever year in terms of cash collections and project deliveries.
Furthermore, the company disclosed its financial metrics as of December 30, 2023, including a net worth of INR 9,522 crore, gross debt-equity ratio of 1.14, net debt-equity ratio of 0.72, current liability ratio of 0.88, total debts to total assets ratio of 0.35, operating margin of (7.88%), and net profit margin of 11.97%.
Godrej Properties' strong performance aligns with the rising residential real estate sector in India, with significant growth opportunities anticipated in the coming years. The company remains focused on surpassing its sales guidance, exploring new markets like Hyderabad and strategically expanding its project portfolio across key cities, while intensifying its presence in NCR and Mumbai.
Overall, Godrej Properties' strategic initiatives and strong financial performance position it favorably for sustained growth and market leadership in the real estate sector.
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