Godrej Properties, a real estate company, said that its net debt decreased by 10% in the most recent quarter to around Rs 6,200 crore due to robust customer collections and sales, according to executive chairman Pirojsha Godrej.
Pirojsha stated in an interview with PTI, "We have reduced our net debt by Rs 700 crore during Q4 (January-March quarter of 2023-24) because of strong operating cash flow." As of March 31, 2024, the company's net debt was Rs 6,198 crore, down from Rs 6,903 crore at the end of the previous quarter.
Pirojsha credited robust client cash collections for the decrease in net debt. "We have reduced net debt even as we continue to acquire land parcels for future development," he said.
When asked about the projected net debt for the current fiscal year 2024–25, Pirojsha responded, "At the conclusion of the March quarter, our debt equity ratio was 0.62. Our preferred range for our gearing ratio is between 0.5 and 1:1." He said that depending on the amount invested in land acquisitions, the net debt level may rise or fall in any given quarter.
One of the top real estate developers in the nation, Godrej Properties, recorded its highest-ever yearly collection of Rs 11,436 crore in FY24, marking a 27% YoY increase. Additionally, with a YoY rise of 23%, it reported the highest-ever total net operational cashflow of Rs 4,334 crore.
The company's sales bookings increased by 84% to Rs 22,527 crore in the past fiscal year from Rs 12,232 crore the year before. For the fiscal year 2023–2024, this is the largest sales that any listed firm has yet to record.
"We have given a sales bookings guidance of Rs 27,000 crore for the current fiscal, a 20 per cent growth from a high base in 2023-24," Pirojsha stated.
Godrej Properties intends to start residential projects of Rs 30,000 crore in key cities this fiscal year in order to satisfy this recommendation. According to Pirojsha, there is still a high demand for homes, particularly for reputable brands. Godrej Properties intends to open a 21.9 million (219 lakh) square foot space this fiscal year with an expected sales booking value of Rs 30,000 crore, citing an investor's presentation.
In addition to launches and sales, Pirojsha stated that the business will accelerate project deliveries and keep buying property for future growth. Godrej Properties said last week that its March quarter earnings, which increased by 14% year over year to Rs 471.26 crore, were its highest-ever quarterly profit.
Its net profit for the previous year was Rs 412.14 crore. From Rs 1,838.82 crore in the same time last year to Rs 1,914.82 crore in the fourth quarter of FY24, total income increased. The company's net profit for the 2023–24 fiscal year climbed to Rs 725.27 crore from Rs 571.39 crore the year before.
From Rs 3,039 crore in 2022–2023 to Rs 4,334.22 crore in FY24, total income increased. The business aimed to grow up to 15 million square feet in 2024–25, having produced 12.5 million square feet in the previous fiscal year.
