The Indian real estate marketplace and brokerage Square Yards has reported its results for the fourth quarter of the Indian financial year, highlights of which include:
- Sixth profitable quarter in a row
- Yearly EBITDA margin at 14%, up from -10% in FY20
- Revenues up 47% year-on-year
Square Yards operates a number of diverse revenue drivers both at home in India and abroad. Apart from operating a domestic end-to-end real estate solution which includes portal, mortgage and property management businesses, the company also operates in markets with a strong Indian diaspora such as Canada, Australia and The UAE.
Company revenue saw a standout quarter with year-on-year growth of 47% with the global real estate segment leading the charge as the domestic business contends with the continuing chaos associated with India’s latest devastating wave of covid-19 infections.
Aside from record revenue, the latest set of results represent the 6th quarter in a row in which the company is EBITDA positive and come in a financial year in which Square Yards’ EBITDA margin turned positive for the first time, having gone from -10% to 14% over the course of the lastest financial year.
The Gurugram-based firm has been following the path of many online marketplace companies around the world by turning to acquisitions to diversify its revenue streams, broaden its data pool and improve its listings. The company acquired virtual reality specialist PropVR in March and before that splashed out on property management and data intelligence firm PropsAMC.
Square Yards is now one of a handful of Indian real estate marketing businesses with over 500k listings and can perhaps now count itself among the big boys in the country’s increasingly important real estate marketing industry in some respects. While Info Edge-owned domestic rival 99acres may lead the way (along with MagicBricks) when it comes to brand recognition and traffic, 99acres’ reported revenues of around $31 million for FY20, was below the $40 million Square Yards reported over the same period.
With both companies having turned their first profits within the last 18 months, the stage is set for some big growth in the sector when the country emerges from its current covid nightmare.