Net debt of Godrej Properties down 51% in 1 year to Rs 15.39 billion thanks to better sales
Real estate company Godrej Properties has reduced its net debt by 51% over the past year to Rs 15.39 billion, mainly due to better sales bookings.
The net debt of Gordej Properties – the real estate arm of the Godrej Group – stood at Rs 15.39 billion as of September 30, 2018 against Rs 31.37 billion a year ago, according to an investors’ presentation for the second quarter of this year. year. tax.
The average cost of borrowing stood at 7.88% as of September 30, 2018 compared to 8.1% a year ago. The net debt to equity ratio also decreased from 2.08 to 0.6 during the period under review.
The sales performance of Mumbai-based Godrej Properties was good despite the general slowdown in the real estate market.
In the financial year 2017-2018, Godrej Properties’ sales bookings stood at a record 50.83 billion rupees. However, sales bookings fell by 42% to Rs 16.27 billion in the first half of this fiscal year.
“We have just completed the best year in the history of GPL (Godrej Properties Ltd) in terms of value and volume of real estate that we were able to sell,” the company’s executive chairman, Pirojsha Godrej, said in May. of this year.
Godrej Properties decided to focus on four key markets: Delhi-NCR, Mumbai, Bengaluru and Pune.
The company recently announced a sharp increase in its consolidated net profit to Rs 205.7 million for the second quarter of this fiscal year. Its net profit stood at Rs 0.21 crore in the prior year period.
Total revenue increased to Rs 4.8707 billion during the July-September period this financial year, compared to Rs 3.49 billion during the corresponding period of the previous year.
Godrej Properties has restated its figures for the previous year based on a new accounting standard.
Founded in 1990, the real estate company has successfully delivered 18 million square feet of real estate over the past five years. There were approximately 145 million square feet of developable area across India as of September 30, 2018.
Following an “asset-light business model,” the company typically partners with landowners to develop projects. He also has access to the group’s lands across India.