Godrej Properties reports 40.72 percent dip net profit, despite strong sales

Realtor Godrej Properties Ltd (GPL) reported a 40.72 percent dip in the net profit to Rs 19.5 crore for the second quarter, despite posting a healthy 70 per cent growth in sales.

On a comparative basis, the real estate arm of business conglomerate, posted a net profit of Rs 32.9 crore for the same period of last financial year.

GPL reported sales of Rs141.9 crore in September quarter, up 69.53 per cent from Rs83.7 crore posted during the same period a year ago.

''Q2 FY 12 has been an eventful quarter for Godrej Properties, We finalised five joint development deals including projects in Mumbai, Gurgaon, Hyderabad and Nagpur for about 8 million sq ft,'' said Adi Godrej, chairman, Godrej Properties.

''We plan to sustain the current JV deal momentum and launch several new projects in the upcoming quarters, which will lead to a very strong second half of the year for Godrej Properties,'' Godrej said.

During the quarter, GPL signed an agreement Godrej & Boyce to act as development manager for future development on its entire Vikhroli land parcel.

GPL also signed a joint venture agreement with Universal Builders on Friday, wherein the realtor will act as the development manager to develop 0.4 million sq ft premium residential villas at Electronic City, Bangalore.

"Though profit has declined, we achieved a robust revenue growth over Q2 of FY11. Our margins depend on how much private equity we bring in during a quarter. There was a considerable amount of PE money in Q2 of last fiscal compared to this year. Therefore, we see a huge difference in the profit margin," GPL Executive Director Pirojsha Godrej said.