Godrej Properties (GODREJPROP) Q4 12/13 earnings summary

Executive summary

• FY13 delivered record operational performance despite subdued real estate conditions; total income rose 28%, bookings value 71%, and net profit 41% YoY.

• Added 8 projects with 6.6 million sq. ft. saleable area and launched 13 projects or phases across 6 cities.

• Project Pyramid improved approvals, cash-flow management and value engineering; year-end cash flows were positive and net debt declined.

Financial highlights

• Consolidated total income increased 28% to ₹1,047.6 crore from ₹819.8 crore; revenue from operations was ₹1,037.1 crore.

• Consolidated EBITDA rose 43% to ₹296.2 crore; net profit after minority interest grew 41% to ₹138.4 crore from ₹97.9 crore.

• Profit before tax increased 45% to ₹288.9 crore from ₹198.6 crore; profit after tax before minority interest was ₹197.3 crore.

• Booking value increased 71% to ₹2,762 crore and booking volume rose 58% to 4.08 million sq. ft.

Outlook and guidance

• FY14 business development focus: Mumbai, NCR, Bengaluru, Pune and Chennai; prioritizing residential projects and capital-efficient models over Tier II commercial developments.

• Most of the ₹1,073 crore residential co-investment platform was expected to be deployed in FY14; the platform targets projects with higher upfront capital needs.

• Improving inflation, forecast GDP growth and potential monetary easing were expected to support consumer sentiment and real estate demand.

• Unlocking capital from commercial projects and improving returns from newer projects remained priorities.