Godrej Properties Net Debt Rises In June Quarter Due To Higher Capex

Godrej Properties Ltd.'s net debt rose 20% during the quarter-ended June due to higher capital expenditure on land purchases and construction activities.

The real estate firm's net debt stood at Rs 7,432 crore at the end of the quarter, compared to Rs 6,198 crore as of March 31, 2024, according to the company's investor presentation. The debt-equity ratio for the quarter increased to 0.71:1 from the earlier 0.62:1.

The average borrowing cost for the June quarter was 7.90%, whereas it was 7.82% in the previous quarter and 7.75% in the same quarter in fiscal-ended March 2024.

Godrej Properties' Executive Chairperson, Pirojsha Godrej, said the net debt level is comfortable and the debt-equity ratio is also as per the guidance given by the company.

Last week, Godrej Properties reported a more than fourfold jump in consolidated net profit to Rs 518.8 crore in the first quarter of this fiscal, from Rs 124.94 crore in the year-ago period.

The total income grew to Rs 1,699.48 crore during the April-June period of fiscal 2025 from Rs 1,265.98 crore in the corresponding period last year, according to a regulatory filing.

The total expenses fell to Rs 921.45 crore from Rs 1,121.89 crore during the period under review.

On operational performance, Godrej Properties clocked a nearly four-fold increase in sales bookings to Rs 8,637 crore during the June quarter, as against Rs 2,254 crore in the year-ago period, amid strong housing demand. This is the company's highest-ever quarterly sales for the June quarter and its second-highest quarterly sales ever.

"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," Pirojsha Godrej said.

He exuded confidence that the company would achieve its sales booking target of Rs 27,000 crore for the current fiscal.

"The significant levels of business development we have executed in previous years at favourable terms continue to allow us to scale our bookings and, in turn, our earnings. With a robust launch pipeline, a strong balance sheet, and resilient demand, we are on track to achieve our booking target of Rs 27,000 crore in 2024–25 while also achieving our highest-ever deliveries and collections performance," he said.

(With Inputs From PTI)