Mumbai: Realty player Mahindra Lifespaces today reported a 12.4 per cent increase in consolidated net profit at Rs 32.8 crore for the quarter ended December 31 mainly on improvement in sales.
The Mahindra Group's real estate arm had logged a net profit of Rs 29.18 crore in the same period last fiscal.
Total income for the quarter shot up 60 per cent to Rs 249.71 crore from Rs 156.06 crore a year ago.
However, total expenses increased 70.73 per cent to Rs 175.33 crore in the October-December period from Rs 102.69 crore a year earlier, largely due to a rise in cost of projects and operating expenses.
"We achieved a good growth in our residential business in the quarter through brand building initiatives, focus on timely execution of our projects and improving sales velocity.
"The increase in expenditure, especially the cost of projects and operating expense components, is a reflection of the level of activities being undertaken by the company for adding new projects and in execution," Mahindra Lifespaces Managing Director and CEO Anita Arjundas told PTI here.
The company had made a provision of Rs 3 crore towards corporate social responsibility for the year, she said, adding "without this, our profit before tax would have been Rs 3 crore more."
During the quarter, the company sold 627 units worth Rs 310 crore as compared to 279 units (Rs 131 crore) a year ago, amounting to 125 per cent growth in volume and 137 per cent expansion in value.
"The quarter saw all-round operational performance with revenue recognition across multiple project phases, achieving completion milestones and good sales. Price realisation in both residential and Mahindra World City businesses has also seen year-on-year increase," Chief Financial Officer Jayantt Manmadkar said.
The company acquired development potential of 3.2 lakh sqft at Sakinaka in Mumbai and launched Phase I of 'The Serenes', a residential project in the weekend home segment at Alibaug in adjoining Raigad district. It launched the second affordable housing project - "Happinest" at Boisar near Mumbai and phase V at 'Ashvita' in Hyderabad.
"We have launched four new projects in this fiscal so far - two under the 'Happinest' brand in affordable segment (Chennai & Boisar), a luxury project in Gurgaon and weekend home in Alibaug. We will be launching two more this year - one each in Bangalore and Andheri (Mumbai), both in the premium segment," Arjundas said.