Godrej properties Q4 volumes up 153%, realizations down

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Godrej Properties, the Mumbai-based real estate arm of the eponymous diversified group, reported its highest ever quarterly sales, but the numbers also indicated that the company was realizing less upfront revenue per square feet booked.

The company sold 3.72 million square feet of developments during the three months from January to March 2019, a jump of 153% from the 1.47 million sq ft sold a year earlier, and 33% higher than the 2.80 million sq ft sold in the preceding three months.

Indicating some pressure in terms of pricing or product mix, booking revenue rose only by 105% to Rs 2,161 cr.

However, the growth in booking revenue (sales) outperformed the growth in area sold when compared on a quarter on quarter basis.

The company generated 41% more booking revenue on a sequential basis, compared to the Rs 1,528 cr it generated in Oct-Dec of 2018, indicating a positive change in price or product mix.

The difference in realization was more stark for the full-year numbers.

For the full year, the company’s total area sold (booked) was up 40% at 8.76 million, but the total revenue generated from the same was up only 5% at Rs 5,316 cr.

In fact, this is the second consecutive record-setting quarter. Q3 of FY19 had set a record in terms of the revenue generated from sales of residential property.

FINANCIALS

Thanks to the strong operating performance of the exit quarter, the company was able to reverse much of the slowdown seen in its numbers for the full year.

It should be noted that real estate companies do not show the entire booking value of properties sold during a quarter as their revenue.

Against booking value of Rs 2,161 cr during the quarter, the company booked revenue of Rs 1,200 cr, including income from non-operating sources as well as profit contributed by joint ventures.

This was up 133% from 516 cr in the same quarter last year, and 137% from the preceding quarter.

EBITDA was at 314 cr rupees vs 74 cr in the preceding year and 94 cr in the preceding quarter.

Profit before tax rose to Rs 245 cr, while net profit rose to Rs 157 cr.


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