GODREJ PROPERTIES 2023-24 Annual Report Analysis

Mon, 8 Jul

GODREJ PROPERTIES has announced its results for the year ended March 2024. Let us have a look at the detailed performance review of the company during FY23-24.

GODREJ PROPERTIES Income Statement Analysis

• Operating income during the year rose 34.8% on a year-on-year (YoY) basis.
• The company's operating profit was by NA YoY during the fiscal. Operating profit margins witnessed a growth and stood at 3.4% in FY24 as against 9.2% in FY23.
• Depreciation charges increased by 84.6% and finance costs decreased by 12.7% YoY, respectively.
• Other income grew by 65.1% YoY.
• Net profit for the year grew by 20.4% YoY.
• Net profit margins during the year declined from 27.6% in FY23 to 24.6% in FY24.

GODREJ PROPERTIES Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	22,523	30,356	34.8%
Other income	Rs m	7,867	12,986	65.1%
Total Revenues	Rs m	30,390	43,342	42.6%
Gross profit	Rs m	2,069	-1,019	NA
Depreciation	Rs m	241	446	84.6%
Interest	Rs m	1,742	1,521	-12.7%
Profit before tax	Rs m	7,953	10,000	25.7%
Tax	Rs m	1,747	2,529	44.8%
Profit after tax	Rs m	6,206	7,471	20.4%
Gross profit margin	%	9.2	-3.4
Effective tax rate	%	22.0	25.3
Net profit margin	%	27.6	24.6

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GODREJ PROPERTIES Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 227 billion as compared to Rs 138 billion in FY23, thereby witnessing an increase of 64.9%.
• Long-term debt stood at Rs 27 billion as compared to Rs 0 million during FY23, a fall of 0.0%.
• Current assets rose 61% and stood at Rs 325 billion, while fixed assets rose 15% and stood at Rs 30 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 354 billion as against Rs 228 billion during FY23, thereby witnessing a growth of 56%.

GODREJ PROPERTIES Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	92,569	99,845	7.9
Current Liabilities	Rs m	137,862	227,319	64.9
Long-term Debt	Rs m	0	26,600	0.0
Total Liabilities	Rs m	227,738	354,292	55.6
Current assets	Rs m	201,725	324,502	60.9
Fixed Assets	Rs m	26,013	29,790	14.5
Total Assets	Rs m	227,738	354,292	55.6

GODREJ PROPERTIES Cash Flow Statement Analysis

• GODREJ PROPERTIES's cash flow from operating activities (CFO) during FY24 stood at Rs -7 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -21 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs 33 billion, an improvement of 291% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 6 billion from the Rs 5 billion net cash flows seen during FY23.

GODREJ PROPERTIES Cash Flow Statement 2023-24

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-23	Mar-24
Cash Flow from Operating Activities	Rs m	-28,606	-6,926	-
Cash Flow from Investing Activities	Rs m	24,881	-20,798	-
Cash Flow from Financing Activities	Rs m	8,322	32,580	291.5%
Net Cash Flow	Rs m	5,357	5,912	10.4%

Current Valuations for GODREJ PROPERTIES

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 26.9, an improvement from the EPS of Rs 22.3 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 3,290.3, stands at 127.2 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 9.2 times, while the price to sales ratio stands at 30.1 times.
• The company's price to cash flow (P/CF) ratio stood at 62.7 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*
Sales per share (Unadj.)	Rs	81.0	109.2
TTM Earnings per share	Rs	22.3	26.9
Diluted earnings per share	Rs	22.3	26.9
Price to Cash Flow	x	44.4	62.7
TTM P/E ratio	x	43.3	127.2
Price / Book Value ratio	x	4.1	5.0
Market Cap	Rs m	378,262	496,374
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for GODREJ PROPERTIES

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.4x during FY24, from 1.5x during FY23. The current ratio measures the company's ability to pay short-term and long-term obligations.

Interest Coverage Ratio: The company's interest coverage ratio improved and stood at 7.6x during FY24, from 5.6x during FY23. The interest coverage ratio of a company states how easily a company can pay its interest expense on outstanding debt. A higher ratio is preferable.

• Profitability Ratios

Return on Equity (ROE): The ROE for the company improved and stood at 7.5% during FY24, from 6.7% during FY24. The ROE measures the ability of a firm to generate profits from its shareholders capital in the company.

Return on Capital Employed (ROCE): The ROCE for the company declined and down at 9.1% during FY24, from 10.5% during FY23. The ROCE measures the ability of a firm to generate profits from its total capital (shareholder capital plus debt capital) employed in the company.

Return on Assets (ROA): The ROA of the company declined and down at 2.5% during FY24, from 3.5% during FY23. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*
Current ratio	x	1.5	1.4
Debtors’ Days	Days	6	4
Interest coverage	x	5.6	7.6
Debt to equity ratio	x	0.0	0.3
Return on assets	%	3.5	2.5
Return on equity	%	6.7	7.5
Return on capital employed	%	10.5	9.1

To see how GODREJ PROPERTIES has performed over the last 5 years, please visit here.

GODREJ PROPERTIES Share Price Performance

Over the last one year, GODREJ PROPERTIES share price has moved up from Rs 1,579.7 to Rs 3,290.3, registering a gain of Rs 1,710.6 or around 108.3%.

Meanwhile, the S&P BSE REALTY Index is trading at Rs 8,737.5 (down 0.0%). Over the last one year it has moved up from 4,251.3 to 8,737.5, a gain of 4,486 points (up 105.5%).

Overall, the S&P BSE SENSEX is up 22.0% over the year.

(To know more, check out historical annual results for GODREJ PROPERTIES and quarterly results for GODREJ PROPERTIES)