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Godrej Properties has reported a 42 per cent increase in net debt in the June quarter, reaching INR 4,637 crore, as the company continues to expand its housing portfolio through aggressive land acquisitions. Despite the rise, its debt-to-equity ratio remains at a comfortable 0.26. The company acquired five land parcels in Mumbai, Pune, Bengaluru and Panipat during the first quarter, with projects valued at INR 11,400 crore. It aims to surpass its sales booking guidance of INR 32,500 crore for this fiscal.
Godrej Properties has witnessed its net debt rise to INR 4,637 crore in the June quarter, marking a 42 per cent increase from INR 3,269 crore at the end of the previous financial year. The company's latest investor presentation showed its debt-to-equity ratio had increased to 0.26 from 0.19, though management maintained it remained at a comfortable level. Advertisement
In an analysts' call, Managing Director and Chief Executive Officer Gaurav Pandey said the firm had capped net debt at INR 10,000 crore, highlighting that even at this level the ratio would remain around 0.5. He explained that the company had adequate operating cash flow and additional borrowing capacity to manage short-term requirements. Pandey further remarked that the final debt position for the year would depend on how much business development exceeded the INR 20,000 crore guidance.
Over the past few years, the developer has been aggressive in acquiring land parcels for group housing and plotted residential projects. For the current financial year, the company has planned acquisitions to develop projects worth INR 20,000 crore. In the first quarter, it secured five land parcels in Mumbai, Pune, Bengaluru and Panipat, expected to generate INR 11,400 crore in revenue. These acquisitions were executed through outright purchases and joint development agreements.
Godrej Properties reiterated that it was on course to achieve, or even surpass, its sales bookings target of INR 32,500 crore for this fiscal. The company had reported a 31 per cent jump in sales bookings to INR 29,444 crore in the preceding year, compared with INR 22,527 crore in the year before. However, in the first quarter of the current fiscal, pre-sales fell 18 per cent to INR 7,082 crore.
Despite this decline, the company remained India's largest real estate player in terms of sales bookings for the past two years and is likely to retain its top position for a third consecutive year if it achieves its current target. On the financial front, the company recently posted a consolidated net profit of INR 598.40 crore in the first quarter, up 15 per cent from INR 518.8 crore a year earlier, while total income declined to INR 1,620.34 crore from INR 1,699.48 crore in the corresponding period. For the full previous financial year, Godrej Properties reported a net profit of INR 1,389.23 crore on total income of INR 6,967.05 crore.
With a comfortable debt-to-equity ratio, adequate cash flow, and continued focus on acquisitions, the company is positioned to sustain growth while pursuing its sales booking target of INR 32,500 crore. Its strong financial performance and market leadership in sales bookings underline its ability to balance growth ambitions with prudent financial management.
Source - PTI
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