Mumbai-based real estate firm Godrej Properties on Oct 23 reported a 62% decline in its consolidated net profit to ₹154.15 crore for the quarter ended September, driven by higher expenses, while its sales bookings fell 6% to 8,008 crore.
Its net profit stood at ₹405.08 crore in the year-ago period.
Total income rose to ₹2,571.73 crore in the second quarter of the current fiscal from ₹1,950.05 crore in the corresponding period of the preceding financial year, according to a regulatory filing.
The real estate firm’s total expenses surged to ₹2,476.74 crore during the period under review compared to ₹1,300.98 crore a year ago.
On the operational performance front, the company reported a 6% decline in its sales bookings or pre-sales to ₹8,008 crore in July-September of FY27 from ₹8,505 crore in the year-ago period. It sold 3,658 units during the September quarter with a total area of 6.2 million sq ft, PTI reported.
“While some of the headline earnings and bookings numbers for the quarter look muted, Q2 was a very strong operating quarter with sustenance sales growth of 83 per cent YoY (year-on-year) to ₹5,054 crore and cash collections growth of 31 per cent YoY to ₹5,318 crore,” said Pirojsha Godrej, Chairperson, Godrej Properties.
He said the company has only launched one-third of the expected annual launch pipeline in the first half of the financial year and was still able to deliver 43 per cent of its annual bookings guidance, highlighting the continued strength of underlying demand in the sector.
Launch pipeline
“Our launch pipeline has never been stronger and with launches picking up substantially from this month onwards, we remain confident of surpassing our full year guidance across all key operating metrics,” said Pirojsha.
He said the company is focused on generating strong cash flows and expects ₹15,000 crore in collections from customers and ₹7,000 crore of operating cash flow in the second half of this fiscal.
“This will allow us to both invest for continued growth while being free cash flow positive for the period,” the chairperson said.
During the first half of this fiscal, the company’s net profit declined 50% to ₹504 crore compared to ₹1,005 crore in the year-ago period. Total income grew to ₹3,916.77 crore from ₹3,570.39 crore in the corresponding quarter a year ago, PTI reported.
Godrej Properties has completed projects spanning more than 80 million sq ft since 2018.
