Posted on February 4, 2025 by Niftynews
Godrej Properties, one of India’s leading real estate developers, has announced its financial results for the third quarter of FY25 (Q3FY25). The company reported a net profit of ₹34.85 crore, marking a sharp decline of 66% year-on-year (YoY) compared to ₹103.36 crore in the same period last year. On a sequential basis, the profit also plunged by 83%, down from ₹206.30 crore in the previous quarter.
Despite the sharp drop in profits, the company’s total income showed a positive performance, increasing by 29% year-on-year to ₹585.41 crore, compared to ₹452.61 crore in Q3FY24. However, this income figure saw a substantial 43% decline from ₹1,038.63 crore in Q2FY25, highlighting a dip in performance on a quarterly basis.
Consolidated Performance Shows Strong Growth
On a consolidated basis, Godrej Properties reported a significant boost in its financial performance. The company’s total income surged by an impressive 133%, reaching ₹1,222 crore compared to ₹524 crore in Q3FY24. Additionally, EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) rose by 85% to ₹280 crore, up from ₹152 crore in the same quarter last year.
The net profit on a consolidated basis showed remarkable growth, soaring by 161% to ₹163 crore compared to ₹62 crore in Q3FY24. Similarly, the earnings per share (EPS) also rose significantly to ₹5.70, up from ₹2.24 during the same period last year.
Record-Breaking Performance for the Year
For the nine months of FY25, Godrej Properties delivered robust growth compared to FY24. The company’s total income surged by 74%, reaching ₹4,203 crore, up from ₹2,410 crore. EBITDA witnessed a massive increase of 144%, reaching ₹1,336 crore compared to ₹548 crore. In terms of net profit, the company reported a 301% increase, jumping to ₹1,018 crore from ₹254 crore in FY24.
Additionally, EPS rose to ₹36.29 from ₹9.14 in FY24, indicating strong growth in profitability.
Key Highlights and Achievements
Godrej Properties had a record-breaking year in 2024. The company achieved a booking value of ₹28,800 crore, reflecting a 69% increase from the previous year. This was driven by the sale of 26.38 million square feet of area, showing a 54% growth in volume. These figures represent the highest-ever booking value recorded by any listed real estate developer in India in a calendar year.
Collections for the year reached ₹14,779 crore, a 40% increase YoY, while operating cash flow rose by 52% to ₹6,043 crore. The company successfully delivered approximately 18 million square feet of projects across seven cities. Moreover, 16 new projects were added, with a total saleable area of 29.1 million square feet, expected to generate a booking value of ₹36,250 crore.
Management’s Commentary
Pirojsha Godrej, Executive Chairperson of Godrej Properties, expressed confidence in the company’s future outlook, commenting: “Godrej Properties delivered a record-breaking calendar year 2024 with its highest-ever bookings, collections, operating cashflows, earnings, and deliveries. The third quarter of financial year 2025 marked the 6th consecutive quarter of over ₹5,000 crore in bookings, underscoring strong demand in the residential real estate sector.”
He continued, “With a robust launch pipeline, strong balance sheet, and resilient demand, we are on track to surpass our bookings guidance of ₹27,000 crore in FY25, while also achieving our highest-ever cash collections, deliveries, earnings, and operating cash flow. We remain focused on building scale through continued market share gains and margin expansion.”
Stock Price Movement
Following the announcement of these results, Godrej Properties stock saw a notable jump, rising by 4.3%, reaching its day’s high of ₹2,420. This surge indicates positive investor sentiment, reflecting confidence in the company’s long-term prospects, despite the short-term decline in profits.
However, it is worth noting that the stock has lost over 2% in the past year and over 16% in January 2025, reflecting some market volatility.
Conclusion: Strong Growth Despite Short-Term Challenges
Despite the drop in net profit in Q3FY25, Godrej Properties has demonstrated strong performance in several key areas. With record-high bookings, increased cash collections, and a solid growth trajectory, the company is well-positioned for continued success. Investors appear confident in the company’s future, as evidenced by the recent rise in stock price post-results. With a robust pipeline of new projects and a focus on market share gains, Godrej Properties remains one of the leading players in the Indian real estate sector.