GODREJ PROPERTIES: Analysts worry about Godrej Properties’ mar | STOCKMARKET INFOMANIA

GODREJ PROPERTIES: Analysts worry about Godrej Properties’ margins, after strong bookings

CLSA point out that despite revenue recognition from newer projects such as The Trees in Vikhroli, profitability continues to disappoint. “Excluding one-offs, Ebitda margin was around 10%, much lower than the desired 20-25%. While the management did not guide for FY22, they expect Rs10,000 crore pre-sales in FY23. We remain cautious on the margin outlook and thus believe that pre-sales growth may not translate into commensurate profit growth," CLSA said in a report on 4 May

Though the company has a robust pipeline, there could be further delay in launches due to covid-led restrictions. We expect sales recovery to be more prolonged than the management expects," said an analyst with a domestic brokerage house requesting anonymity. (Negative)