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Godrej Properties skids on posting Q1 net loss of Rs 20 cr

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Capital Market
Last Updated : Aug 05 2020 | 2:04 PM IST

Godrej Properties shed 2.06% to Rs 912 after the company reported consolidated net loss of Rs 20.23 crore in Q1 June 2020 compared with net profit of Rs 90 crore in Q1 June 2019.

Consolidated net sales slumped 88.63% to Rs 72.29 crore in Q1 June 2020 over Rs 635.88 crore in Q1 June 2019. Pre-tax loss stood at Rs 14.69 crore in Q1 June 2020 as compared to a pre-tax profit of Rs 140.13 crore in Q1 June 2019. Current tax expense for the quarter tumbled 95.92% at Rs 0.52 crore as against Rs 12.75 crore in Q1 June 2019. EBITDA stood at Rs 40 crore as compared to Rs 195 crore, registering a 79.48% Y-o-Y (year-on-year) drop. The result was announced during market hours today, 5 August 2020.

The quarter witnessed total booking value of Rs 1,531 crore and total booking volume of 2.51 million sq. ft. compared with total booking value of Rs 897 crore and total booking volume of 1.35 million sq. ft. in Q1 June 2019. The company leased 2 lakh sq. ft. of office space to A.P. Moller - Maersk's business units at Godrej Two.

The realty major raised Rs 1,000 crore in July 2020 through the allotment of unsecured, redeemable, non- convertible debentures (NCDs) on a private placement basis for a term of 3 years at 7.5%, the lowest NCD rate achieved in the real estate industry.

The firm said that construction activity has resumed on almost all the sites post the lockdown and the labor strength at the end of July 2020 was at approximately 60% of pre-COVID levels.

Speaking on the Q1 FY2021 performance, Pirojsha Godrej, the executive chairman of Godrej Properties, has said that: With the lockdown in place for most of the quarter, construction activities during the period were extremely limited leading to almost no revenue recognition and to poor operating cash flows. At the same time, our teams demonstrated agility by relying on digital sales tools to achieve strong sales thereby delivering our highest ever market share in a quarter."

"While we expect poor reported earnings and cash flows this financial year due to the lockdown and the major impact this has had on our annual construction plan, we expect strong momentum in both portfolio project additions and new project launches during the rest of the financial year. The current crisis will add further momentum to the process of consolidation that is underway in the sector and we will continue to focus on rapidly growing our market share."

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Godrej Properties is engaged in construction and real estate development.

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First Published: Aug 05 2020 | 1:03 PM IST

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