Conference Call with Godrej Properties Management and Analysts on Q1FY21 Performance and Outlook. Listen to the full earnings transcript.
Conference Call between Godrej Properties Management and Analysts on Q4FY20 and Full Year performance and outlook. Listen in to the full transcript.
Key Highlights from Executive Chairman, Godrej Properties, Pirojshah Godrej
- We are looking after the approximately 10,000 construction workers currently remaining at our sites. There will be a near term impact on construction progress. Even post lockdown construction will not come back to 100% speed overnight.
- We are well placed to weather this situation, thanks to the nearly Rs. 2500 crore cash on our balance sheet. We will focus on cost containment and cash generation. We will also benefit in the medium term in our shift away from labor intensive to precast construction.
- We expect a reduction in sales in the short-term. However we believe over time there will be an increased desire to pursue home ownership and the security it offers. In China April residential sales showed strong YoY growth after the worst of the pandemic had passed, and we expect the same to happen here in India.
- We expect COVID19 to speed up the process of industry consolidation, as buyers become more inclined to purchase from established developers rather than smaller ones. We believe smaller developers will partner with larger developers with strong balance sheets and execution capabilities.
- This quarter was a strong one - we had our highest ever residential cash collection of Rs. 1,401 crore which led to positive net operational cash flow of Rs. 484 crore. This was made possible by the Godrej Properties team. The total sales of the quarter stood at Rs. 2,383 crore, a QoQ growth of 100% and YoY growth of 10% despite Q4FY19 being our previous best ever.
- The volumes sold over the quarter was 3.61 mn sq feet, including over 500 apartments sold in the second half of March. One of the key sales highlights: we were able to launch 3 new projects in the same city in one quarter, selling nearly 700 crore worth of homes (Pune).
- Buyer sentiment has been hit particularly at the higher end of the market with COVID19.
- Total value of bookings in FY20 stood at Rs. 5915 crore, highest ever from GPL, and 8.8 mn square feet also the highest ever. We also sold 1.1 mn square feet of bookings over Rs. 1000 crore in major cities. We also saw rapid construction completion in multiple projects, and we are reducing the construction timeline for projects.
- In Q4FY20 our revenues increased by 5% to Rs. 1,261 crore, and net profits at Rs. 101 crore. Full year revenues stood at Rs. 2,829 crore and net profit increased 6% to Rs. 267 crore. GPL added ten new projects during the year with a saleable area of 19 million square feet.
