Godrej Properties Shares Surge on Strong Quarterly Earnings
Shares of real estate firm Godrej Properties witnessed a significant surge on Monday, reaching Rs 2,777 per share on the BSE during intraday deals. This positive movement followed the company's impressive quarterly earnings report for the quarter ending March 2023-24 (Q4FY24).
Godrej Properties reported a 14% year-on-year (YoY) increase in its consolidated net profit, reaching Rs 471 crore for the quarter ending March 2024. This marked a notable improvement compared to the Rs 412 crore profit recorded in the corresponding period last year.
However, the company's revenue from operations experienced a 13% YoY decline during the reporting period, dropping to Rs 1,426 crore from Rs 1,646 crore in the same period of the previous year. Additionally, the Adjusted EBITDA declined by 2% year-on-year to Rs 717 crore, compared to Rs 729 crore in the previous year's quarter.
Despite these declines, Godrej Properties achieved its highest-ever quarterly sales for the third quarter in a row, with a booking value of Rs 9,519 crore. This figure represents a significant 135% year-on-year growth, driven by the sale of 8.17 million square feet of area.
Analysts at Kotak Institutional Equities attributed the company's strong performance to healthy cash collections, which led to a net debt reduction in 4QFY24 despite continuing land costs. They also highlighted the management's strong guidance for FY2025, which includes Rs 20,000 crore of business development, Rs 27,000 crore (over 20% year on year) of pre-sales, aided by Rs 30,000 crore of launches and Rs 15,000 crore of collections.
Despite the positive outlook, analysts at Kotak Institutional Equities maintained a "SELL" rating for Godrej Properties shares, with a revised fair value of Rs 1,780 per share. They believe that the current market price already reflects the company's positive performance.
At the time of reporting, Godrej Properties shares were trading 7.85% higher at Rs 2,770 per share on the BSE, outperforming the broader market which rose by 0.32%.