Godrej Properties Ltd - Q4FY21 Result Concall Highlights - YES Securities

- Loss reported in Q4FY21 was due to three one-time charges to the P&L related to provisions. a) provision under Employee Benefit Expenses for its 5 year Long Term Incentive scheme (Rs1.2bn) which is payable to certain employees in FY23 and FY24, b) GPL adopted new tax regime and recognized the provision for income tax of Rs810mn for FY21, c) Co. has taken inventory write down of ~Rs760mn for some of its legacy projects.

- Excluding these one-off items, Adjusted EBITDA would be Rs1.25bn, EBITDA would be Rs1.18bn, PBT would be Rs720bn and PAT would be Rs370mn for Q4FY21.

- GPL facing 25% reduction of construction labours from the recent peak due to the second wave of covid-19, while is trying to incentivize the contractors to retain the labours.

- GPL expects soft first quarter for FY22 while believe that sector to recover faster post that. Also expects the delays in regulatory approvals due to which company delayed (precisely Mumbai) few of their projects lined up of FY22 launch pipeline.

- GPL expects to deploy the money raised via QIP and NCD in FY22 and FY23 for new business development and fund ongoing projects.

- From FY23 there should be positive inflection in earnings as many of the projects starts hitting for completion and hence expects to achieve 20% ROE.

- Management guided for 20%YoY new sales booking growth while it will be revisited in subsequent quarters but confident to surpass Rs100bn sales in value terms by FY23.

Shares of Godrej Properties Ltd was last trading in BSE at Rs.1284.65 as compared to the previous close of Rs. 1308.6. The total number of shares traded during the day was 31075 in over 1706 trades.

The stock hit an intraday high of Rs. 1344.25 and intraday low of 1279. The net turnover during the day was Rs. 40352340.

Source : Equity Bulls

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