Square Yards' revenue dips 8% y-o-y in Q2 FY21

The company’s transaction value in real estate business rose to Rs 1,537.9 crore. The property transactions grew 5% on-year during the quarter as against industry drop of 50%.

File photo
File photo

MUMBAI: Proptech platform Square Yards has reported 3% sequential rise and 8% on-year decline in consolidated revenue at Rs 75.5 crore for the quarter ended September. Overall transactions and gross transaction value both increased 14% helped by market recovery in volumes despite the ongoing Covid19 pandemic.

The company’s transaction value in real estate business rose to Rs 1,537.9 crore. The property transactions grew 5% on-year during the quarter as against industry drop of 50%. For the first half of 2020-21, real estate transaction growth stood at 30% as against 65% decline in industry transactions, the company said.

“The second quarter was the first real test of our resilience as our biggest segment, NRI had an unfortunate meltdown because of Covid issues. However, our diversified strength helped tide over the crisis as revenues grew sequentially and on-year in the first half FY21 led by spectacular show in global real estate. Profitability metrics remain high as we prepare for a very strong second half helped by bounce back in all segments,” said Tanuj Shori, founder & CEO, Square Yards.

According to him, the strongest indicator for the company has been traction in the rental business in just three months of inception. “This continues to reinforce our belief in integrated eco system synergies across the value chain,” he said.

The quarter ended up as the second most profitable quarter for the company with around 40% gross margins and 11% operating margins. This is also the fourth consecutive profitable quarter for the company with both Indian domestic real estate and global real estate segments touching 50% gross margins.

Among key markets, Dubai, Melbourne and Toronto were in the top 5 city contributors, with Mumbai and Gurgaon rounding up the rest two.

According to the company, the first half of the current financial year matched up to the year ago performance despite significant drop in non-residential Indian (NRI) segment volumes, led by a surge in global real estate volumes and revenues. Transactions, GTV and revenues all more than doubled Y-Y for the Global Real Estate segment.