Godrej Properties: A Decent Performance In Q4FY13
Suparna / 10 May 2013
Despite a gloomy scenario in the realty sector, Godrej Properties has posted fair numbers for FY13.
Godrej Properties announced its March 2013 quarter results, where it posted a topline of Rs 311.86 crore and a bottomline of Rs 53.21 crore on a consolidated basis. While the topline witnessed a decline from Rs 350.17 crore posted in March 2012, the bottomline was ahead of the corresponding figure of Rs 39.80 crore.
The major differentiating factor was the increased EBITDA margin on account of a marginal increase in the realisations and a good amount of cost saving. To quantify this, the EBITDA for the quarter stood at 32% as against 28.59% in December 2012 and 27.33% in March 2012.
It is important to understand here that the quarterly performance of realty companies is not as significant as the annual results. On a whole year basis, the company has posted a consolidated topline of Rs 1037.12 crore and bottomline of Rs 138.43 crore for FY13 as against Rs 770.05 crore and Rs 97.92 crore respectively posted in FY12. It has announced a dividend of Rs 4 per share.
Apart from the yearly financial performance, realty companies are analysed based on their net present value (NPV). Various other factors like new project launches, improvement in realisations and the net debt levels also impact these players.
On a whole year basis, Godrej Properties has managed to put in a better performance on the realisations front. In FY13, the per sq. ft. realisations went up to Rs 6756 from Rs 6272 in FY12. However, if we take a look at the QoQ performance, which actually depicts the true picture the realisations has witnessed a marginal decline.
As regards its new projects, the company added 6.6 million sq. ft. of saleable area in FY13. This is a good addition in the backdrop of the overall gloomy scenario in the realty sector. The company has a total saleable area of 84 million sq. ft. in 12 cities, with 38 ongoing projects.
On the debt front too, Godrej Properties seems to be placed well with a net debt of Rs 1497 crore. Its debt-equity ratio stands at 1.05x and the net borrowing cost is just 11.70 per cent. This is pretty comfortable and way lower than that of other realty companies. The results are in line with the street estimates.
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