India's Godrej Properties reports Q4 revenue drop as muted pricing weighs

Godrej Properties

03/05/2024 09:44

BENGALURU, May 3 (Reuters) - Indian real estate
developer Godrej Properties  GODR.NS  reported a fall in
fourth-quarter revenue on Friday, weighed by muted pricing in
the key market of Mumbai. 
    Shares of the company dipped after results, but recouped
losses to trade up 0.3% as of 1:56 p.m. IST. 
    
    WHY IT'S IMPORTANT 
  
    Indian real estate developers have been racing to keep up
with a buoyant post-pandemic housing demand by beefing up their
land banks as homebuyers lap up pricier apartments, unfazed by
high borrowing rates. 
    At least 97 land deals were closed in 2023, up from 82 deals
in 2022, data from real estate consultancy firm Anarock showed. 
    The growth has pushed the realty index  .NIFTYREAL  up about
23% year-to-date, outpacing a 3% climb in the benchmark Nifty 50
index  .NSEI . In 2023, the realty index surged 81% compared
with a 20% rise in the benchmark. 
    Analysts have seen muted price trends in Mumbai, Pune and
Bengaluru. Mumbai was Godrej Properties' biggest sales
contributor by market in the fourth quarter. 
    Its second largest sales contributor by market was the
national capital region, where growth of new housing launches
stagnated in the fourth quarter, Morgan Stanley data showed. 
   
    BY THE NUMBERS
    Godrej Properties' consolidated revenue fell 13.4% to 14.26
billion rupees ($171 million) in the fourth quarter, while net
profit rose over 14% to 4.71 billion rupees, helped by stable
expenses and higher other income. 
    The company expects residential bookings to grow to more
than 270 billion rupees in the fiscal year 2025, aided by strong
launches and deliveries. 
  
    GRAPHIC 
    
    
        KEY QUOTES 
  
    "The residential real estate sector in India has been strong
over the past three years and we believe the sectoral tailwinds
will continue over the next few years," Executive Chairperson
Pirojsha Godrej said. 

($1 = 83.3780 Indian rupees)

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January-March stock performance of Godrej Properties, peers    https://tmsnrt.rs/4dlgDjF
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 (Reporting by Hritam Mukherjee and Anisha Ajith in Bengaluru;
Editing by Mrigank Dhaniwala)
 ((Hritam.Mukherjee@thomsonreuters.com; X: @MukherjeeHritam;))