Godrej Properties Q1 net profit up 9% at Rs 43.5 crore
Mumbai: Real estate firm Godrej Properties Ltd on Tuesday posted a 9.19% increase in its net profit to Rs.43.5 crore in the June quarter as compared to the same period last fiscal, on account of improved sales.
In a filing to the Bombay Stock Exchange (BSE), the company said its total income has jumped by around 52.5% to Rs.303.83 crore during the reporting quarter as against the same period last financial year, mainly due to sales coming from its commercial project at Bandra Kurla Complex (BKC).
“Our project Godrej BKC received its occupancy certificate. Additionally, we commenced construction on both phases of our flagship project, The Trees. We have made a steady beginning in the first quarter. We expect to significantly ramp up sales in the months ahead,” said Pirojsha Godrej, managing director and chief executive officer of Godrej Properties.
Last year, pharmaceutical firm Abbott India Ltd bought 435,000 sq. ft area at Godrej BKC for Rs.1,479 crore, in one the largest deals in the commercial segment.
“A large portion of their revenue came from the BKC project which got completed this year. When a project gets completed there is always a slight jump in the revenue recognition,” said an analyst with a Mumbai-based brokerage firm.
During the quarter, the company’s total booking value was down to Rs.387 crore as compared to a total booking value of Rs.1,251 crore posted in the year-ago period. Residential projects recorded booking value of Rs.312 crore, while the booking value of commercial projects was Rs.75 crore.
“Pre-sales have done well. But if compared with the first quarter last year, it would look lower as there were many more launches in that particular quarter. In the first quarter this year, there were not many launches. But generally, the first and second quarters are weak due to seasonality,” the analyst said.
During the period, the company only launched three towers at its 43-acre township project Godrej Infinity at Pune. The project is jointly developed by Godrej Properties and local builders Oxford Group and Ekta World.
Shares of Godrej Properties were trading at Rs.381.55 on the BSE, up 2.49% from the previous close.