Godrej Properties net debt up 17 pc to Rs 6,174 cr in Jul-Sep mainly to fund land acquisitions
Godrej Properties net debt rose 17 per cent in the July-September quarter to Rs 6,174 crore mainly due to fund acquisition of land parcels. According to its investors presentation, the net debt of Mumbai-based Godrej Properties stood at Rs 6,174 crore as on September 30, 2023. Its net debt was Rs 5,298 crore as on June 30, 2023 and Rs 3,649 crore at the end of the last fiscal.
Last month, Godrej Properties Executive Chairperson Pirojsha Godrej had said that the net debt has risen because of aggressive land acquisitions done by the company since last April.
Most of the land acquisition has been done outright which requires upfront payment, he had said.
However, Pirojsha Godrej maintained that the debt position is comfortable as the net debt-equity ratio is 0.65.
During the last financial year, Godrej Properties acquired multiple land parcels across various cities to develop housing projects that can generate a revenue of Rs 32,325 crore.
In the current fiscal, the company targets to acquire land parcels that can help generate revenue of Rs 15,000 crore. In the first six months, it has already added projects worth Rs 7,175 crore.
Pirojsha said the net debt might further rise in the next few quarters before stabilising.
On the operational front, Godrej Properties is confident to meet its target to sell properties worth Rs 14,000 crore this fiscal as it expects strong demand for its ongoing and upcoming housing projects.
Godrej Properties, the real estate arm of Godrej Group, had sold properties worth Rs 12,232 crore in the previous fiscal.
«We are confident of meeting the annual guidance of Rs 14,000 crore of sales bookings. Hopefully we can do better,» he had said.
The company has achieved 48 per cent growth in
