Godrej Properties Q3 profit soars 24% on high sales
Mumbai: Godrej Properties on Wednesday posted a 23.97 percent rise in net profit for the quarter ended December 31, 2012 at Rs 35.48 crore, mainly on improved sales resulting from new projects despite a flat sentiment in overall real estate market.
The company had posted a net profit of Rs 28.62 crore in the corresponding period previous fiscal.
Its total income for the quarter under review jumped 77.86 percent to Rs 266.41 crore as against Rs 149.79 crore in the year-ago period.
"The sales numbers have improved mainly on the back of new projects which we launched during the quarter. Despite flat sentiment in the overall real estate market, we received good response for our launches," company's managing director and chief executive Pirojsha Godrej told reporters here.
During the quarter, the company launched four projects across key markets of Mumbai, NCR and Bangalore, he said.
"We expect to launch few more projects in Mumbai, Kolkata and Pune in this quarter. But these launches are subject to certain approvals we are awaiting," Godrej said.
The company is planning to launch a commercial project this quarter in the Bandra-Kurla Complex (BKC) here, which is a joint venture with Jet Airways, he said.
The company recorded total bookings of Rs 672 crore at 11.04 million sqft in volume terms for the review period.
Meanwhile, the company's foray into redevelopment segment as a development manager, wherein GPL (Godrej Properties Limited) receives certain percentage of revenue of the project as fees, is significantly contributing to its income, Godrej said.
"This is a highly value attractive business for GPL as it will add significant and risk free cash flow through development management fee that will create tremendous long term growth for us.
Besides, the low capital requirement will allow us to remain focused on external growth opportunities," he added.
During the quarter, GPL entered into a development management agreement with partnership firm Ratnaraj Blessing Milestone to act as development manager for the redevelopment project, wherein the former will receive 10 percent of revenue as fees.
This is the fourth consecutive quarter in which the company added a new redevelopment project.
"We are strategically developing our presence in crucial markets and adding value attractive transactions to our portfolio, which clubbed with our unmatched brand equity, differentiated business model and strong execution capabilities, will drive our future growth," Godrej said.