Godrej Properties (GODREJPROP) Q4 17/18 earnings summary

Executive summary

• FY18 set records in sales, operating cash flow and business development; booking value rose 152% YoY to ₹5,083 crore, the highest reported by an Indian listed developer.

• Total income reached ₹2,397 crore, up 38%; EBITDA rose 25% to ₹503 crore and net profit increased 14% to ₹235 crore.

• More than ₹1,000 crore of sales was achieved in each quarter; the four focus markets each exceeded ₹800 crore of bookings.

Financial highlights

• Consolidated revenue from operations was ₹1,889.20 crore versus ₹1,582.93 crore in FY17; total income was ₹2,390.67 crore versus ₹1,701.38 crore.

• Consolidated profit after tax was ₹234.96 crore versus ₹206.80 crore; total comprehensive income was ₹232.15 crore versus ₹206.12 crore.

• EBITDA was ₹503 crore, up 25%, and net profit was ₹235 crore, up 14%, on the annual report highlights basis.

• Collections approached ₹4,000 crore, up 54% YoY; net operating cash flow was ₹1,868 crore, supporting a ₹653 crore debt reduction.

• Consolidated other income included ₹209.44 crore profit on investment sales and ₹147.71 crore income from investments measured at FVTPL.

Outlook and guidance

• Target to double return on equity to 20% within five years; FY18 progress included top-three sales rankings across Mumbai, NCR, Bangalore and Pune.

• FY18 pipeline growth and improved cash generation are positioned to support further growth; focus remains on four core markets and selective evaluation of other markets.

• Plans include adding projects through fee-based development management and joint development, with investment-platform structures for projects requiring significant upfront capital.

• Management expected 2018 to bring sector consolidation and recovery as reforms improve transparency and affordability supports sentiment.