This is the company’s first loss in 10 quarters. It had reported a loss of Rs 54.75 crore during the October-December 2017 quarter.
Godrej Properties (GPL) on Wednesday reported a net loss of over Rs 20 crore for the quarter ended June 30, as the Covid-19 pandemic hit construction activity, which impacted earnings of the real estate developer hard.
This is the company’s first loss in 10 quarters. It had reported a loss of Rs 54.75 crore during the October-December 2017 quarter. GPL had recorded a profit of Rs 90 crore in the June quarter ended 2019.
With construction activity largely muted, GPL reported a steep 89% year-on-year decline in the revenue from operations, which came in at Rs 72.29 crore. The company’s Ebitda (earnings before interest, tax, depreciation and amortisation) declined 79% y-o-y to Rs 40 crore.
However, despite the challenges posed by Covid-19 the company managed to garner decent bookings, with its emphasis on digital. During April-June 2020, GPL witnessed total booking value of Rs 1,531 crore and total booking volume of 2.51 million sq ft compared with total booking value of Rs 897 crore and total booking volume of 1.35 million sq ft in April-June 2019.
Commenting on the company’s performance, Godrej Properties chairman Pirojsha Godrej said, “With the lockdown in place for most of the quarter, construction activities during the period were extremely limited, leading to almost no revenue recognition and poor operating cash flows.”
Suggesting that it will be a difficult year going forward, Godrej said he expects poor reported earnings and cash flows this financial year due to the lockdown and it will have a major impact on the company’s annual construction plan. However, the company will continue its momentum on new project additions and launches during the rest of the financial year, he said.
Meanwhile, construction activity has resumed on almost all the sites after the lockdown and the labour strength at the end of July was at approximately 60% of pre-Covid levels, which is a significant improvement compared with April and May, when the labour availability was down to 30%.