Godrej Properties Q4 Results: Net Profit Rises 58% To Rs 412 Crore On Strong Housing Demand

Godrej Properties' net profit increased to Rs 571.39 crore in FY 2023 from Rs 352.37 crore in 2021-22.

Godrej Properties, a subsidiary of Godrej Industries Ltd, on Wednesday, reported a 58 per cent increase in consolidated net profit at Rs 412.14 crore for the quarter ending March 2023 on the back of higher revenue driven by strong housing demand. According to a regulatory filing, the company also announced plans to raise debt up to Rs 2,000 crore.

Godrej Properties' consolidated net profit for the fourth quarter rose to Rs 412 crore from Rs 260 crore a year earlier. The company's total income rose to Rs 1,838.82 crore in the Q4 of 2022-23 from Rs 1,522.57 crore a year ago. 

For the entire FY23, Godrej Properties' net profit increased to Rs 571.39 crore from Rs 352.37 crore in 2021-22. Total income also grew to Rs 3,039 crore from Rs 2,585.69 crore.

The regulatory filing also said that the company will raise funds through the issuance of Non-Convertible Debentures (NCDs), bonds, or other debt securities on a private placement basis, in one or multiple tranches, with an aggregate value not exceeding Rs 2,000 crore.

Pirojsha Godrej, Executive Chairperson of Godrej Properties Ltd, said, “Residential real estate demand in India has been strong throughout FY 23 and leading developers have benefited from both sectoral growth as well as market share gains. Godrej Properties delivered a well-rounded performance in FY 23 registering its best-ever business development, bookings, cash collections, earnings, and deliveries. With a robust launch pipeline, strong balance sheet, and sectoral tailwinds, we are confident of building on this momentum in FY24.”

Godrej Properties also announced that it achieved an all-time high in sales booking, reporting a 56 per cent increase to Rs 12,232 crore for the last fiscal year, driven by robust demand for residential properties. The company's sales bookings in the fiscal year 2021-2022 stood at Rs 7,861 crore. Additionally, cash collections for the fiscal year 2022-2023 grew by 41 per cent to Rs 8,991 crore.

"Delivered projects aggregating over 10 million square feet across 5 cities in FY23, including 7.6 million square feet in Q4," it had said.

The real estate arm of business conglomerate Godrej Industries, Godrej Properties, is one of the leading real estate developers in the country. It focuses on Delhi-NCR, Mumbai Metropolitan Region, Bengaluru, and Pune for the development of residential projects. 

According to a Reuters report, despite a 250-basis points hike in lending rates by RBI, Godrej Properties, along with other realty firms such as Sobha Ltd and Macrotech Developers Ltd, recorded record sales and strong growth in project launches for both the quarter and the fiscal year.

Demand for housing remained resilient, and according to real estate consulting firm Anarock, sales in the top seven cities of the country grew by 14 per cent year-on-year during the three months ended March 31, driven by a rising desire for home ownership, the report noted.