Godrej Properties Q1 Review - A Mixed Bag: Dolat Capital

BQ Prime’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BQ Prime’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Dolat Capital Report.Godrej Properties Ltd. reported Q1 FY23 presales of Rs 25 billion; up four times YoY and down 22% QoQ while missing our estimate of Rs 29 billion. Notably Mumbai Metropolitan Region registered the highest quarterly sales of Rs 10 billion aided by two new launches – Wadala and Thane.Business development activity was relatively muted (Rs 18 billion gorss development value signed including Carmichael road) given the scale and strength of Godrej Properties’ balance sheet. However, the developer remains confident of achieving Rs 100 billion presales guidance for FY23 with ~20 million square feet of new projects / phases planned for launch.Cashflow profile remained weak with net operating cash flow standing at Rs 0.2 billion and net debt rising to ~Rs 10 billion (up 106% QoQ). Overall, a mixed bag with weak cash generation offsetting healthy presales print. We view growth with high profitability will be a challenge for Godrej Properties given rising pan India competition..Click on the attachment to read the full report:.DISCLAIMERThis report is authored by an external party. BQ Prime does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BQ Prime..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Godrej Properties Q1 Review - A Mixed Bag: Dolat Capital