Godrej Properties - Deciphering The Joint Venture Project Profitability: Motilal Oswal

The company is reporting improved Ebitda margins for JV projects added post FY18.

<div class="paragraphs"><p>Godrej The Trees Residence. (Photo: Godrej Properties)</p></div>
Godrej The Trees Residence. (Photo: Godrej Properties)

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Motilal Oswal Report

During FY18-21, Godrej properties Ltd. launched (38) and delivered (20) 58 projects of which 30 projects were joint venture’s.

Of these 30 projects, we analysed the financials of 22 JV projects to understand the project-level economics and assess the trajectory of contributions from JV projects to financials of Godrej Properties. Below are the key takeaways-

  1. recognition of overheads in ongoing projects without the corresponding revenue is dragging its profitability at the consolidated level,

  2. a large part of Godrej Properties’ profit is realized through interest arbitrage for a tax-efficient structure,

  3. The company is reporting improved Ebitda margins for JV projects added post FY18.

Click on the attachment to read the full report:

Motilal Oswal Godrej Properties Company Update.pdf


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