Square Yards, which majorly operates in the real estate and home loan brokerage sector, officially confirmed a jump in gross profits by more than two-fold for the June quarter (Q1). Gross profits leaped to Rs. 27.7 crore on the back of higher sales transactions/bookings. In comparison, gross profits stood at approximately Rs. 11.11 crore in the same period last year.
Revenues increased by around 13% to stand at Rs. 67.1 crore in Q1 FY2020-21 in comparison to Rs. 59.5 crore in the year-ago period as per the company’s quarterly operational and financial update. Out of total revenues, a whopping 94% were accrued from the Real Estate business while the remainder was generated by the mortgage division.
Sale of properties situated outside the country, particularly in the Gulf, contributed a handsome 29% to overall revenues. Almost 40% of income was garnered from sale of properties situated in India to NRIs (non-resident Indians). Gross transaction value (GTV) also increased by 13% to stand at Rs. 1,354.4 crore between April and June this year as compared to Rs. 1,203.5 crore in the same period last year. The brokerage rate stood at 4.9% for the June quarter as well.
The Founder and CEO at Square Yards, Tanuj Shori, stated that consolidation throughout the nationwide lockdown offers a glimpse into the structuring of the industry in future years. He added that Square Yards will continue striving to control market share along with scaling up overall profitability and efficiency.
The company stated that the highest sales figures were achieved for Residential Projects launched by Godrej Properties. Sales figures were the highest in Bengaluru, Pune and Mumbai in this period.
Square Yards has raised $50 million by way of equity till date and more than $25 million as debt financing ever since its establishment. Total revenues increased to Rs. 298 crore for FY2019-20 in comparison to Rs. 220 crore in the earlier fiscal. As part of its growth blueprint, Square Yards has started new divisions like the property management platform Azuro and its SaaS based Real Estate CRM Soution offering called Edge.
Published Date: 7 August 2020
