Godrej Properties and Oberoi Realty have been attempting to achieve market share and purchase out distressed initiatives, regardless of a slowdown in actual property, owing to surplus money and low debt on their books.

Godrej is able to face the slowdown and seize the alternatives posed by the disaster, Government Chairman Pirojsha Godrej stated within the newest annual report. “An important alternative might be market share. Sturdy enterprise development through the years has ensured that our launch pipeline stays the very best. We might be able to launch these initiatives and achieve market share whereas most of our companions are specializing in clearing their stock,” Godrej stated.

Though the agency didn’t disclose the agency’s market share in key areas, it has booked over Rs 1,000 crore in Mumbai, NCR, Pune, Bengaluru and different cities in FY20. Nevertheless, Adhidev Chattopadhyay of ICICI Securities stated the agency had a 6 per cent market share primarily based on launch in focus cities, and three.6 per cent by way of gross sales.

Chattopadhyay stated Godrej Properties might get 5 per cent stake by FY22. “With Godrej Properties having a robust pipeline for the following two to 3 years, we count on a robust pick-up in volumes for the developer in FY 2012-22, and the common annual gross sales quantity through the interval We count on to accumulate over 9 million sq. toes. ,” They stated.

Godrej Properties added 19.1 million sq ft in FY15, and plans to launch 15 million sq ft in FY15. “This, in flip, will enhance money movement and earnings development within the medium time period. We’re able to strengthen our portfolio if the initiatives turn out to be obtainable at misery appraisal,” he stated.

Godrej stated the corporate has sufficient money to maneuver ahead. “Our steadiness sheet is powerful with internet debt/fairness at 0.24 to 1 on the finish of Q4FY20. Our fairness of Rs 2,100 crore in Q1FY20 has ensured that we have now surplus liquidity to resist any momentary setbacks,” The agency stated.

Oberoi Realty additionally endeavors to purchase land and improve market share in Mumbai. It additionally desires to enterprise into Delhi-NCR and Bengaluru as soon as the pandemic subsides.

“For a few of us the market share will develop even when the general market shrinks,” stated Vikas Oberoi, chairman and MD, through the This fall earnings name.

Oberoi Realty has 90 per cent market share in Mumbai’s Goregaon and Borivali areas and 30 per cent in Mulund. In comparison with friends, Oberoi has the least debt. It goals to turn out to be a critical workplace developer following its workplace lease cope with world investor Morgan Stanley.

Nevertheless, Chattopadhyay of ICICI Securities expects FY2011 to be a troublesome one, given its publicity to the Mumbai luxurious residential market and continued weak point in malls/resorts. “H2FY21 might witness some inexperienced shoots with the anticipated launch of the Thane residential mission, which can result in elevated bookings,” he added.

Oberoi Realty’s consolidated revenue earlier than tax fell 2.6x to Rs 39.78 crore in Q1FY21 as in opposition to Rs 104.24 crore in Q1FY20. Income fell 37 per cent to Rs 126.86 crore from Rs 200 crore final 12 months.

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