Godrej Properties Posts Mixed Q1 Results Amid Expense Gains and Weak Revenue

Godrej Properties Ltd. reported a mixed performance for the June quarter, with profit rising on the back of lower expenses, even as revenue declined sharply, marking its weakest showing in 17 quarters on a year-on-year basis.

The Mumbai-based real estate developer posted a consolidated net profit of ₹6 billion, up 15% year-on-year and 57% sequentially. In contrast, revenue from operations fell 41% year-on-year and nearly 80% sequentially to ₹4.35 billion.

The profit growth was supported by a 21% decline in total expenses, which stood at ₹7.33 billion. A significant contributor was an inventory-related gain of ₹33.68 billion, compared to ₹20.79 billion in the same quarter last year. This helped offset rising costs in other areas:

Material costs: up 37% to ₹35.44 billion
Employee benefits: up 51% to ₹1.49 billion
Other expenses: up 30% to ₹3.52 billion
Finance costs: down 20% to ₹327 million

The company’s EBITDA rose 18% year-on-year to ₹9.15 billion, while other income increased 23% to ₹11.86 billion, more than doubling sequentially.

Operational Highlights
During the quarter, Godrej Properties sold 4,231 housing units, generating a booking value of ₹70.82 billion, down 18% year-on-year. The total area sold was 6.17 million square feet, a 31% decline. Despite the slowdown, the company launched six new projects/phases across four cities, with a combined sales potential of ₹85 billion.

Collections rose 22% year-on-year to ₹36.70 billion. The company added five new projects during the quarter, with an estimated booking value potential of ₹114 billion—achieving 57% of its annual business development guidance.

Outlook
Executive Chairperson Pirojsha Godrej expressed confidence in the company’s trajectory, citing a strong launch pipeline, resilient demand, and a healthy balance sheet.
“We are on track to achieve our guidance across all operating parameters,” he said.