Consolidated net sales (including other operating income) of Godrej Properties for the quarter ended Mar 2023 has increased 23.72% to Rs 1646.27 crore.  Operating profit margin has jumped from 19.39% to 21.02%, leading to 34.12% rise in operating profit to Rs 346.01 crore.  Raw material cost as a % of total sales (net of stock adjustments) increased from 73.77% to 75.87%.   Employee cost increased from 1.83% to 4.06%. Other expenses fell from 8.08% to 7.34%.   Other income rose 0.32% to Rs 192.55 crore.  PBIDT rose 19.70% to Rs 538.56 crore.  Provision for interest rose 24.46% to Rs 53.53 crore.   PBDT rose 19.20% to Rs 485.03 crore.  Provision for depreciation rose 16.46% to Rs 6.58 crore.  Profit before tax grew 19.24% to Rs 478.45 crore.  Provision for tax was expense of Rs 115.86 crore, compared to Rs 95.75 crore.  Effective tax rate was 20.34% compared to 27.02%. Net profit attributable to owners of the company increased 58.23% to Rs 412.14 crore.  

 
Full year results analysis

Net sales (including other operating income) of Godrej Properties has increased 23.42% to Rs 2252.26 crore.  Operating profit margin has jumped from 7.30% to 10.99%, leading to 85.96% rise in operating profit to Rs 247.63 crore.  Raw material cost as a % of total sales (net of stock adjustments) increased from 76.74% to 86.46%.   Employee cost decreased from 4.06% to 2.93%.   Other expenses fell from 14.29% to 7.29%.   

Other income rose 3.41% to Rs 786.74 crore.  PBIDT rose 15.71% to Rs 1034.37 crore.  Provision for interest rose 4.03% to Rs 174.23 crore.   PBDT rose 18.40% to Rs 860.14 crore.  Provision for depreciation rose 12.65% to Rs 24.14 crore.  

Profit before tax grew 18.57% to Rs 836.00 crore.  Share of profit/loss was 78.42% higher at Rs -40.73 crore.  Provision for tax was expense of Rs 174.67 crore, compared to Rs 165.78 crore.  Effective tax rate was 21.96% compared to 32.11%.

Net profit attributable to owners of the company increased 62.16% to Rs 571.39 crore.  

Key business developments

Added 5 new projects with a total estimated saleable area of nearly 9 million sq. ft. and total estimated booking value of ~INR 5,750 Crore in Q4 FY23. For FY23, added 18 new projects with an estimated revenue potential of ~INR 32,000 crore, more than double the BD guidance of INR 15,000 Crore of estimated booking value for FY23.

Q4 FY23 witnessed total booking value growth of 25% YoY and QoQ to INR 4,051 crore with 5.25 million sq. ft. of area sold during the quarter  

FY22 booking value grew by 56% to INR 12,232 crore on back of both an improving project mix as well as strong volume growth of 40% to 15.21 million sq. ft.

Highest ever quarterly and annual project deliveries with projects aggregating ~8 million sq. ft. and ~10.5 million sq. ft. delivered in Q4 FY23 and FY23 respectively.

Management comment

Commenting on the performance of Q4 FY2023, Mr. Pirojsha Godrej, Executive Chairperson, Godrej Properties Limited, 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.”

Other developments

Equity capital increased from Rs 138.99 crore as of 31 March 2022 to Rs 139.01 crore as of 31 March 2023.  Per share face Value remained same at Rs 5.00.  

Promoters’ stake was 58.48% as of 31 March 2023 ,compared to 58.43% as of 31 March 2022 .  

Loan funds rose to Rs 6,430.76 crore as of 31 March 2023 from Rs 5,196.23 crore as of 31 March 2022.  Inventories rose to Rs 12,073.40 crore as of 31 March 2023 from Rs 5,668.31 crore as of 31 March 2022.  Sundry debtors were higher at Rs 359.38 crore as of 31 March 2023 compared to Rs 191.69 crore as of 31 March 2022.  Cash and bank balance rose to Rs 2,015.94 crore as of 31 March 2023 from Rs 1,338.51 crore as of 31 March 2022.  Investments declined from Rs 4,882.96 crore as of 31 March 2022 to Rs 2,534.46 crore as of 31 March 2023.  Fixed assets increased to Rs 870.90 crore as of 31 March 2023 from Rs 523.20 crore as of 31 March 2022.  Intangible assets increased from Rs 0.04 crore to Rs 0.07 crore.  

Cash flow from operating activities decreased to negative Rs -2,860.64 crore for year ended March 2023 from negative Rs -451.68 crore for year ended March 2022.  Cash flow used in acquiring fixed assets during the year ended March 2023 stood at Rs 305.85 crore, compared to Rs 146.41 crore during the year ended March 2022.