Godrej Properties Reports Surge in Debt Amid Strong Quarterly Performance

Godrej Properties' net debt rose 20% to Rs 7,432 crore in the June quarter due to higher capital expenditure. Despite this, the company saw a four-fold increase in net profit, driven by strong housing demand. Executive Chairperson Pirojsha Godrej remains confident in achieving the fiscal year's sales bookings target.

Godrej Properties has reported a 20% rise in net debt to Rs 7,432 crore during the June quarter, attributed mainly to higher capital expenditure on land purchases and construction activities. The debt-equity ratio has increased to 0.71:1 from 0.62:1 as of March 31, 2024, according to an investor presentation.

Despite the rise in debt, Executive Chairperson Pirojsha Godrej stated that the levels remain comfortable and within the company’s guidance. Last week, the realty firm disclosed over a four-fold increase in consolidated net profit, which soared to Rs 520.05 crore for the first quarter of this fiscal year from Rs 124.94 crore in the year-ago period.

The company's total income rose to Rs 1,699.48 crore during the April-June quarter of the 2024-25 fiscal year, up from Rs 1,265.98 crore in the corresponding period last year. Operational performance saw nearly four times increase in sales bookings, amounting to Rs 8,637 crore, driven by strong housing demand. Godrej is optimistic about achieving their sales bookings target of Rs 27,000 crore for the current fiscal year.