Square Yards Q1 revenue rises 53 pc to Rs 60 crore

Property brokerage firm Square Yards, which is backed by Anil Ambani led-Reliance Group, has clocked 53 per cent growth in its revenue at Rs 59.5 crore for the first quarter of this fiscal, a top company official said on Tuesday.

It had posted a revenue of Rs 38.9 crore in the year-ago period.

During the April-June quarter, Square Yard said that Indian real estate operations contributed 64 per cent to the group's overall revenue, followed by international real estate with 25 per cent contribution, while the remaining 11 per cent came from the mortgage business.

Q1FY is seasonally weakest quarter for India real estate which follows the best quarter for the calendar year (January-March), Square Yards CEO Tanuj Shori said, adding that "launches and sales are at annual lows, and this year was no different. Infact volumes were at all time low in top 9 cities, coupled with regulatory tightening on lending norms for mortgage products".

On the company's performance, he said it has delivered strong results in the weak industry backdrop, with revenues growing by 53 per cent.

Elaborating further, Shori said the distribution expansion (increase in sales employees) continued with about 80 per cent jump year-on-year, continuing from similar expansion in the last quarter.

Square Yards launched its developer enterprise platform Square Edge last quarter and re-launched its broker aggregation platform - Square Connect. It has also started a brand campaigns, with a view to position the company as first port of call for real estate buying experience.

"We continue to ramp up distribution capacity, and are creating both tech and physical infrastructure to prepare for a 100 per cent growth target in FY20. Annualised revenue run rate (last 6 months) now stands at USD 42 million (around Rs 295 crore) and we maintain our forecast of USD 55-60 million (Rs 385-420 crore) FY20 revenues," Shori said.

Square Yards had clocked revenue of Rs 220 crore in the 2018-19 fiscal year as against Rs 160 crore in the previous year.

Founded in 2013, Square Yards mainly facilitates sale of primary residential real estate in India, and focuses on the non-resident Indian (NRI) clients. It also helps prospective home buyers in securing home loans from banks.