Godrej Properties expects "significant impact" on sales due to corona

New Delhi: Mumbai-based Godrej Properties Ltd (GPL) expects significant impact on sales in the current quarter due to the second wave of corona but hopes there will be recovery in the second half of the current calendar year. 

“We do expect a significant impact in the first quarter, but recovery beyond that,” said GPL Executive Chairman Pirojsha Godrej in reply to an investor query recently. The transcript of the conference call with investors has been filed with the stock exchanges.  

“I think while certainly we would expect to see this quarter be impacted, obviously, there is a very large-scale crisis unfolding hitting people's ability to visit projects, to even take decisions in this environment will be somewhat impacted. I don't think overall from an industry perspective it will be quite slow down we saw last year first quarter, but it will certainly be, I think, a slowdown of strong momentum that was visible in Q3 and Q4 of the last financial year,” Godrej added.

But the company thinks that all the factors led to the recovery in the real estate market in the second half of last financial year will be intact this year and lead to a resurgence in the industry after the corona second wave. The factors that led to the market coming back on track included low interest rates and the growing realization coming people for the need of own home in the wake of the pandemic. 

Godrej also said that although the first half of the last fiscal was negatively impacted, the company could make up for the last time because it had a good launch pipeline in the second half that allowed the company to achieve strong growth in booking value in the last fiscal. 

The company expects to have good booking vale even in the current financial year, even though the first quarter will be a constraint as the company does have a strong launch pipeline and new business development. 

Godrej said that the corona’s second wave “will again strengthen the level of business development opportunities available”. Hence he expects the company to use this opportunity on the business development side.

GPL saw its best ever quarter for sales in Q4 of last fiscal when it achieved booking value of Rs 2,632 crore. This was 10 percent more than the same quarter of the previous fiscal 2019-2020. The company launched seven new project or phases in exiting project in Q4 of last fiscal. It also achieved its highest ever quarterly collection of Rs 2,041crore in last quarter of last financial year. 

The company is planning to launch new projects having a total of 12.26 million square feet space in the ongoing fiscal.