NEW DELHI: Real estate sector shrugged off weak corporate earnings concerns in the July-September quarter (Q2FY25) as top players reported mani-fold increase in profit and their shares received a strong ‘buy’ call from brokerages.
The strong show put up by realty companies comes as most sectors battled a slowdown in the quarter with earnings missing street estimates. As per ratings agency Crisil, the revenue growth of Indian companies for the July-September quarter is projected to be between 5-7 per cent year-on-year (Y-o-Y), marking the slowest growth in 16 quarters.
The country’s largest real estate company by market capitalisation DLF saw its profit jump two-fold year-on-year in Q2FY25 to Rs 1,381 crore on higher income amid robust demand for its luxury properties. Total income for the National Capital Region-based firm rose 48 per cent to Rs 2,181 crore.
Similarly, Godrej Properties and Macrotech Developers also reported strong set of numbers. Godrej Properties’ profit surged more than 4.5 times in the quarter ended September to Rs 333.8 crore and its revenue from operations rose to Rs 1,093 crore while Macrotech Developers (Lodha) reported a 113 per cent year-on-year surge in its profit to Rs 423 crore and 50 per cent surge in revenue to Rs 2,626 crore.
Oberoi Realty also reported a 28 per cent YoY jump in net profit at Rs 589 crore for the second quarter ending September 30, 2024. The company’s revenue from operations increased 8.4 per cent to Rs 1,320 crore.
Strong Outlook
Amid growing consolidation in the sector and higher demand for luxury properties, most players expect strong growth in the quarters to follow. DFL said that the outlook for the residential business continues to be strong and their development business continues to exhibit steady performance.
The outlook guidance comes even as DLF reported its weakest bookings in 17 quarters, citing a slowdown in sales due to delays in obtaining necessary approvals for new product launches. The company’s new sales bookings fell by 69 per cent year-on-year, totaling Rs 692 crore. However, during the first half of FY25, DLF saw a 66 per cent rise in sales bookings to Rs 7,094 crore.
In its investor presentation, DLF stated that the company has obtained authorisation for its high-end housing project -- The Dahlias -- in DLF 5, Gurugram during this quarter. DLF said that they are still on course to achieve their projections for the entire fiscal year. The company plans to do Rs 17,000 crore in sales booking for the entire fiscal year.
During H1FY25, Godrej Properties sold properties worth over Rs 13,800 crore, and Macrotech Developers’ sales bookings stood at Rs 8,320 crore. Godrej Properties’ sales booking value grew 89% year-on-year while that of Macrotech grew by 21%. Godrej Properties achieved the highest-ever H1 sales booking value.
The two Mumbai-based realtors have expressed confidence in achieving their sales bookings targets for 2024-25. While Godrej Properties has set a target of Rs 27,500 crore worth of sales bookings for the full fiscal, Macrotech Developers has given a sales guidance of Rs 17,500 crore.
“With a robust launch pipeline, strong balance sheet, and resilient demand, we are on track to significantly surpass our bookings target of Rs 27,000 core in FY25 while also achieving our highest-ever deliveries and collections,” said Pirojsha Godrej, executive chairperson of Godrej Properties Limited.
Abhishek Lodha, MD & CEO, Macrotech Developers, said: “We achieved our best-ever quarterly pre-sales performance of Rs 4,290 crore in Q2FY25 which is a seasonally weak quarter due to monsoons.
Additionally, the quarter was impacted by the inauspicious ‘Shraddh’ period in September this year (vs October in FY24) as well as excessive rains. Despite this disruption, we achieved our third consecutive quarter of Rs 4,000+ pre-sales.”
DLF profit jumps 2-fold in Q2FY25 to G1,381 crore
Country’s largest real estate company by market cap DLF saw its profit jumping two-fold YoY in Q2FY25 to J1,381 crore on higher income amid robust demand for its luxury properties. Total income for the National Capital Region-based firm rose 48% to J2,181 crore
Realtors see strong growth in coming quarters
Amid growing consolidation and higher demand for luxury properties, realtors expect strong growth in the following quarters. DFL said outlook for residential business continues to be strong and their development business to exhibit steady performance