Godrej Properties cuts net debt by half in one year

NEW DELHI: Realty firm Godrej Properties has reduced its net debt by 51 per cent in last one year to Rs 1,539 crore mainly with the help of better sales bookings.

The net debt of Gordej Properties — the real estate arm of Godrej group — stood at Rs 1,539 crore as on September 30, 2018 as against Rs 3,137 crore a year-ago, according to an investors’ presentation for the second quarter of this fiscal.

The average borrowing cost stood at 7.88 per cent as on September 30, 2018 as against 8.1 per cent a year-ago. Net debt-equity ratio has also reduced to 0.6 from 2.08 during the period under review.

Mumbai-based Godrej Properties sales performance have been good despite overall slowdown in the property market.

During 2017-18 fiscal, Godrej Properties’ sales bookings stood at record Rs 5,083 crore. However, the sales bookings have dropped by 42 per cent to Rs 1,627 crore in the first half of this fiscal.

“We have just completed the best ever year in GPL’s (Godrej Properties Ltd) history in terms of the value and volume of real estate we have been able to sell,” Company’s Executive Chairman Pirojsha Godrej had said in May this year.

Godrej Properties has decided to focus on four key markets — Delhi-NCR, Mumbai, Bengaluru and Pune.

The company recently reported a sharp jump in consolidated net profit at Rs 20.57 crore for the second quarter of this fiscal. Its net profit stood at Rs 0.21 crore in the year-ago period.

Total income increased to Rs 487.07 crore during July-September period of this fiscal as against Rs 349 crore in the corresponding period of the previous year.

Godrej Properties has restated its previous year’s figures based on new accounting standard.

Established in 1990, the realty firm has successfully delivered 18 million sq ft of real estate in the past five years. It had about 145 million sq ft of developable area across India as on September 30, 2018.

Following a ‘asset light business model’, the company generally ties up with land owners to develop projects. It also has access to group’s land back across India.

Source: Press Trust of India

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