Godrej Properties Executive Chairman Pirojsha Godrej
Godrej Properties Executive Chairman Pirojsha Godrej

Realty firm Godrej Properties on Wednesday reported a consolidated net loss of Rs 20.23 crore in the April-June quarter due to COVID-19 pandemic and announced raising Rs 1,000 crore through an issue of debentures to improve liquidity.

Despite the nationwide lockdown during most part of the April-June quarter of 2020-21, Godrej Properties' sales bookings grew by 71 per cent to Rs 1,531 crore in the quarter.

The company posted a loss during the June quarter as it was not able to recognise the revenue as construction activities were stalled due to lockdown, Godrej Properties Executive Chairman Pirojsha Godrej told reporters through a virtual press conference.

Godrej Properties net profit stood at nearly Rs 90 crore in the year-ago period.

Total income declined to Rs 195.66 crore in the first quarter of the current fiscal from Rs 713.84 crore in the corresponding period of the previous year, according to a regulatory filing.

During the last fiscal year, net profit stood at Rs 267.21 crore on a total income of Rs 2,914.59 crore.

Godrej Properties is the real estate arm of the Godrej group.

On operational front, sales bookings increased to 2.51 million sq ft worth Rs 1,531 crore in the April-June quarter as against 1.35 million sq ft valuing Rs 897 crore in the year ago period.

The adoption of digital tool and attractive 10:90 payment plan offered to prospective customers helped the company achieve strong sales, Pirojsha said.

"Raised Rs 1,000 crore in July through the allotment of unsecured, redeemable, non-convertible debentures on a private placement basis for a term of three years at 7.5%, the lowest NCD rate achieved in the real estate industry," the company said in a statement.

Pirojsha said the amount will be utilised in ongoing projects and future growth opportunities.

On market guidance for this fiscal year, he said it would be difficult to give any sales and collection guidance because on the pandemic.

He said the company sees lot of opportunities in terms of acquisition of new projects as market will consolidate due to liquidity crunch.

Pirojsha said there will be pain in the sector in the short term but the company remains bullish in the medium to long term growth.

He said the company would focus on gaining market share in Delhi-NCR, Mumbai, Bengaluru and Pune markets and had no plans to venture into tier-II and -III cities at least for the next few years.

"With the lockdown in place for most of the quarter, construction activities during the period were extremely limited leading to almost no revenue recognition and to poor operating cash flows," Pirojsha said.

He said the company's sales team demonstrated agility by relying on digital tools to achieve strong sales thereby delivering its highest ever market share in a quarter.

"While we expect poor reported earnings and cash flows this financial year due to the lockdown and the major impact this has had on our annual construction plan, we expect strong momentum in both portfolio project additions and new project launches during the rest of the financial year," Pirojsha said

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