Godrej Properties (GODREJPROP) Q4 11/12 earnings summary

Executive summary

• FY12 consolidated total income rose 47% to ₹819.8 crore; bookings value increased 46% to ₹1,562.5 crore. Adjusted for private equity and other income, operating profit grew 52%.

• Consolidated net profit fell to ₹97.9 crore from ₹130.9 crore, reflecting higher minority interest, lower operating margins and higher prior-year private equity income.

• Ten new deals added ~10.4 million sq. ft. of saleable area; the portfolio spanned 12 cities, with plans for more launches and strong FY13 operating growth.

Financial highlights

• Consolidated revenue from operations was ₹770.1 crore versus ₹451.5 crore; total revenue was ₹819.8 crore versus ₹558.9 crore in FY11.

• Consolidated EBITDA was ₹207.7 crore versus ₹212.5 crore; profit after minority interest was ₹97.9 crore versus ₹130.9 crore.

• Consolidated profit before tax was ₹198.6 crore versus ₹204.1 crore; EPS was ₹14.00 basic and ₹13.99 diluted versus ₹18.73 for both in FY11.

• Standalone total income increased to ₹463.9 crore from ₹443.8 crore; standalone PAT declined to ₹81.4 crore from ₹106.2 crore.

• Area sold was 2.42 million sq. ft. versus 3.2 million sq. ft. in FY11, while bookings value rose 46% to ₹1,562.5 crore.

Outlook and guidance

• FY13 plans called for a large number of launches, increased deliveries and new business development, with management expecting strong annual operating growth despite macro headwinds.

• New business focus: Mumbai, NCR, Bengaluru, Pune and Chennai; FY13 deal sourcing to emphasize residential projects with attractive margins and capital-efficient structures.

• Strategic emphasis to shift toward residential developments, with less focus on commercial projects to support lower investment and better return on capital.

• Commercial portfolio monetization remained a priority, alongside improved operating efficiency and cost reduction to address margin pressure.