Godrej Properties, Oberoi Realty may see lumpy revenues starting Q1FY19

For investors, the revenue statement, both for the quarter and annually, will not give an accurate picture. So, investors will have to look at cash flows

With the transition from Ind AS11 reporting for revenue recognition based on percentage completion method to Ind AS 115 of project completion (100 per cent) from April 1, 2018, real estate developers will witness a fluctuating trend of revenues. So far, developers could start recognising revenues if at least 25 per cent of the project was completed.

Among the listed developers, Godrej Properties, Sobha and Oberoi Realty will be among the major players impacted. Analysts say three of Oberoi Realty projects in Borivali, Mulund and Worli were supposed to hit revenue recognition in FY19. Given project timelines, revenues can be accounted