Godrej Properties shares spike 7% on highest-ever quarterly profit in Q4

The company achieved its highest-ever quarterly sales for the third consecutive quarter in Q4FY24, with a booking value of ₹9,519 crore, reflecting a remarkable year-on-year growth of 135%. 

This exceptional performance was driven by the sale of 8.17 million sq. ft of area. Notably, this marks the highest-ever quarterly sales reported by a listed developer in India to date. Its booking value in Q4 FY24 has crossed the booking value for the entire FY22, as per the company's investor presentation. 

Also Read: Titan share price falls 5% after Q4 results; should you buy, sell, or hold?

In Q4 FY24, the company's collections stood at ₹4,693 crore, marking a substantial year-on-year growth of 23%. City-wise sales data showed a booking value of ₹4,022 crore from the sale of 1,393 units in the MMR, with a total sales area of 2.53 million sq. ft.

Buoyed by robust sales figures, the company reported its highest-ever quarterly profit of ₹471.26 crore in the March quarter. Additionally, revenue rose to ₹1,914.82 crore in Q4 FY24, compared to ₹1,838.82 crore in the corresponding period of the previous year.

For the full fiscal year, the company posted its highest-ever annual sales, with a booking value of ₹22,527 crore, representing a year-on-year growth of 84%. This performance was driven by the sale of 20 million sq. ft of area (equivalent to 14,310 homes), with residential bookings accounting for 99.9% of the total booking value.

Also Read: Indegene IPO opens today. GMP, review, price, date, lot size, and other details. Apply or not?

Furthermore, the company exceeded its annual booking guidance by 61%, marking the 7th consecutive year of record sales. It achieved 161% of the booking value guidance for FY24, propelled by an improving project mix and robust volume growth of 31%.

Geographically, NCR emerged as the largest contributor with ₹10,016 crore, followed by MMR contributing ₹6,545 crore in booking value for the financial year. Notably, the company launched 26 new projects/phases across 7 cities during FY24.

Launch Pipeline

The company plans to launch residential projects worth ₹30,000 crore this fiscal year across major cities. It plans to introduce projects spanning 5.5 million square feet (msf) with an anticipated launch value of ₹9,500 crore. Additionally, it intends to launch projects in key cities like NCR, Bengaluru, Pune, and others, covering a collective area of 16.4 msf. 

Also Read: Kotak Mahindra Bank shares gain 4% on upbeat Q4 results. Should you buy?

This concerted effort will elevate the total project area to 21.9 msf, reinforcing the company's commitment to meeting growing demand in the real estate market, as per the company's investor presentation.

The surge in demand for residential properties in India is attributed to the country's expanding economy, prompting individuals to actively seek home purchases, especially in the luxury segment. This demand is further fueled by significant investments from high-net-worth individuals (HNIs) and ultra-high-net-worth individuals (UHNIs) in the Indian residential market.

According to RBI's data on 'Sectoral Deployment of Bank Credit,' credit outstanding to the housing sector has surged by nearly ₹10 lakh crore over the past two fiscal years, reaching a record high of ₹27.23 lakh crore in March this year.

Also Read: Nifty 50 surges 1.2% in April led by banks and auto stocks, IT sector lags

According to the data of the Reserve Bank of India (RBI) on sectoral deployment of bank credit for March 2024, the credit outstanding to the housing (including priority sector housing') stood at ₹27,22,720 crore in March 2024, up from ₹19,88,532 crore in March 2023, and ₹17,26,697 crore in March 2022, reported by PTI. 

Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before making any investment decisions.

You are on Mint! India's #1 news destination (Source: Press Gazette). To learn more about our business coverage and market insights Click Here!

Catch all the Business News, Market News, Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates.

More Less

Published: 06 May 2024, 10:44 AM IST