Square Yards Q1 gross profit jumps over two-fold to Rs 28 cr

Square Yards, which is mainly into property and home loan brokerage business, on Friday reported over two-fold jump in gross profit to Rs 27.7 crore for June quarter on better sales bookings.

Square Yards, which is mainly into property and home loan brokerage business, on Friday reported over two-fold jump in gross profit to Rs 27.7 crore for June quarter on better sales bookings. Its gross profit stood at Rs 11.1 crore in the year-ago period. The revenue grew 13 per cent at Rs 67.1 crore in the first quarter of 2020-21 as against Rs 59.5 crore in the same period a year ago, Square Yards said in its quarterly financial and operational update.

Out of total revenue, 94 per cent came from real estate business while the remaining from mortgage business. The sale of properties located outside India, mainly Gulf region, contributed 29 per cent to the total revenue. Nearly 40 per cent income was from sale of Indian properties to non-resident Indians (NRIs). The gross transaction value too rose by 13 per cent to Rs 1,354.4 crore during April-June 2020 from Rs 1,203.5 crore in the year-ago period. The rate of brokerage stood at 4.9 per cent in June quarter.

Square Yards Founder and CEO Tanuj Shori said, "The consolidation during the lockdown offers a peek into how industry will get structured in years to come. We continue to make a play for controlling market share to scale efficiencies and profitability." Square Yards said the maximum sales it achieved were in the residential projects of Godrej Properties. Pune, Bengaluru and Mumbai were three major cities that contributed the most to sales. Square Yards has so far raised USD 50 million in equity and over USD 25 million in debt financing since its inception in 2014.

Its total revenue grew to Rs 298 crore in 2019-20 from Rs 220 crore in the preceding fiscal. Square Yards has started new verticals -- SaaS offering Edge and property management platform Azuro -- as part of its growth plan.