Godrej Properties and Oberoi Realty wish to achieve market share and purchase distressed tasks, however the droop in actual property, due to surplus money and low debt on their books.
Godrej is ready to resist the downturn and seize alternatives arising out of the disaster, Govt Chairman Pirojsha Godrej stated within the newest annual report. “An important alternative shall be market share. Sturdy enterprise growth over the previous few years has ensured that our launch pipeline has been the perfect. We shall be able to launch these tasks and achieve market share, whereas most of our friends are targeted on liquidating their stock,” stated Godrej.
Although the agency didn’t disclose the agency’s market share in key areas, it has performed bookings of greater than Rs 1,000 crore in Mumbai, NCR, Pune, Bengaluru, and different cities in FY20. Adhidev Chattopadhyay of ICICI Securities, nonetheless, stated the agency had 6 per cent market share, primarily based on launches in focus cities, and a share of three.6 per cent by way of gross sales.
Chattopadhyay stated Godrej Properties could command a 5 per cent share by FY22. “With Godrej Properties having a robust pipeline for the following twoto three years, we anticipate robust pick-up in volumes for the developer over FY20-22, and anticipate it to achieve over 9 million sq. ft in common annual gross sales quantity over this era,” he stated.
Godrej Properties added 19.1 million sq. ft in FY20, and has plans to launch 15 million sq. ft in FY21. “This, in flip, will drive money flows and earnings progress over the medium time period. We’re open to strengthening our portfolio if tasks turn into out there at distressed valuations,” he stated.
Godrej stated the corporate had sufficient money to maneuver on. “Our steadiness sheet is powerful with web debt/fairness on the finish of Q4FY20 at 0.24 to 1. Our fairness elevate of Rs 2,100 crore in Q1FY20 has ensured we’ve got surplus liquidity to resist any momentary shock,” the agency stated.
Oberoi Realty additionally seeks to purchase land and improve market share in Mumbai. It is usually trying to enterprise into Delhi-NCR and Bengaluru as soon as the pandemic subsides.
“Market share will improve for just a few of us despite the fact that the general market could shrink,” stated Chairman and MD Vikas Oberoi in the course of the This fall earnings name.
Oberoi Realty has a 90 per cent market share within the Goregaon and Borivali areas of Mumbai, and 30 per cent share in Mulund. Oberoi has among the many lowest debt in comparison with friends. It goals to be a severe workplace developer after its workplace lease cope with international investor Morgan Stanley.
Nevertheless, Chattopadhyay of ICICI Securities expects FY21 to be powerful, contemplating its publicity to the Mumbai luxurious residential market and continued weak point in malls/resorts. “H2FY21 might see some inexperienced shoots with the anticipated launch of its Thane residential venture, which can drive bookings,” he stated.
Oberoi Realty’s consolidated pre-tax revenue fell 2.6x to Rs 39.78 crore in Q1FY21, in comparison with Rs 104.24 crore in Q1FY20. Revenues fell 37 per cent to Rs 126.86 crore from Rs 200 crore final 12 months.