Real Estate Sector Q1FY24 Preview: Developers focus on churning inventories; likely to see net profit growth of 27% YoY

livemint.com:

₹14,600 crore  in Q1FY24, up 9% year-on-year (YoY), with the Bengaluru-focused companies anticipated to outperform others.  Overall, the realty firms under the brokerage’s coverage are expected to see net profit growth of 26.8% YoY. However, sequentially, this is expected to see a drop of nearly 40%. The total sales of these companies during the quarter under review is expected to increase by 10.3% on-year.

But, the sales are likely to be lower by more than 20%, QoQ. Also Read: FMCG Sector Q1FY24 Preview: Demand to gain traction; softer commodity costs to boost margins Let us individually take a look at the likely performance of real estate companies during Q1FY24: Brigade Enterprises: The brokerage house expects the company’s revenue in to remain flat YoY at ₹950 crore but rise 13% on QoQ basis. New bookings for the quarter are likely to increase 8% YoY to ₹880 crore, while EBITDA is likely to reach ₹270 crore with a margin of 27%.

DLF: The real estate major is expected to see an increase of 11% YoY in its revenue for the April-June 2023 quarter. New bookings are likely to normalize to ₹2,000 crore and the company is expected to report EBITDA of ₹460 crore with steady margin during the quarter. Godrej Properties: The company is likely to post revenue growth of 40% YoY to ₹340 crore, while due to limited launches, the brokerage expects a steady quarter for the company in terms of bookings.

However, aided by higher contributions from JV projects, Godrej Properties’s net profit is likely to jump 50% YoY to ₹60 crore. Macrotech Developers: Motilal Oswal expects the company’s revenue to decline 6% YoY to ₹2,500 crore. The company is likely to achieve pre-sales of ₹3,200 crore in Q1FY24, while its EBITDA may grow 38% YoY to