Indian proptech company Square Yards has released figures for Q2 of FY21 showing resilience in the face of tough market conditions. Highlights from today’s report include:
Corporate EBITDA margin of 11%. Down from 22% in the previous quarter but still the second-best on record for the company
Q2 real estate transactions grew 5% year-on-year despite the pandemic. Half-year growth at 30% despite -65% slowdown in the industry as a whole.
Transactions, Gross Transaction Value and Revenues all doubled year-on-year for the Global Real Estate segment
Market share reportedly increased from around 3-4% pre-covid to “high single digits”
The new rentals platform saw 100+ transactions and a new property management platform launched.
Although not on a level to compete with 99acres or MagicBricks in terms of listings volumes or traffic metrics, Square Yards is a significant player in the Indian real estate market and differentiates itself from others by offering more of an end-to-end model for the primary market.
As well as serving the domestic Indian demand, the company has a presence in The Emirates, Canada and Australia and this 'Global Real Estate' segment saw good growth through the quarter hitting a 50% gross profitability margin along with the Indian domestic segment.
The one business segment which struggled was that of Indian real estate for non-residents which saw its bottom line impacted in the quarter both due to travel restrictions and the loss of man-hours, with 50% of staff catching Covid at one point or another throughout Q2.
A close look at Square Yards’ overall numbers reveals a significant improvement in profitability despite plateauing corporate revenues.
The firm's Q2 report points to a “strong improvement in productivity metrics” which might be a tacit nod to the significant reduction in headcount for a company that employs its own brokers with Q2FY21 seeing a -29% drop in average team size year-on-year (2,152 to 1,538). The other figure seemingly contributing to this increase in profitability seemingly being the average transaction value, with gross transactions for the quarter up 5% despite a 30% drop in their numbers.
Away from the financials, Square Yards is taking the path towards becoming a fully integrated property transaction platform for both sales and rentals with the company's recently launched 'Azuro' rentals platform seeing its first transactions in Q2 and a new property management platform being launched to complement the company’s offering.
Watch Square Yards CEO Tanuj Shori's interview with Simon Baker from the 2020 Property Portal Watch APAC Virtual Event on our YouTube channel.