The stock of Godrej Properties, a Mumbai-based realty player, gained 1 per cent last week on the back of healthy new sales bookings in Q4FY20. The company has an asset-light model of development (it enters into joint ventures with land owners), which has helped it maintain sales momentum, despite the slowdown. But its profit declined 35 per cent to ₹101 crore due to higher raw material cost and other expenses.

The company’s new sales bookings in Q4FY20 registered a 10 per cent growth y-o-y to ₹2,383 crore, though the area sold was down 3 per cent y-o-y to 3,610,789 sq ft. This is an indication that the company, having a strong brand and land banks in prime locations, has better pricing power despite a turbulent market.

Further, it launched five new projects with saleable area of about 6.1 million sq ft in the March quarter. The firm was able to sell nearly 500 units through online channels post the nationwide lockdown.

However, the sales bookings may remain subdued in the next few quarters as individuals may postpone discretionary spending.

comment COMMENT NOW