Godrej Properties net dips 33% on higher input costs

Godrej Group’s real estate arm Godrej Properties (GPL) on Saturday posted a 33.65 per cent decline in net profit for the quarter ended March 31 at Rs 39.8 crore. 

The company had registered a net profit of Rs 59.99 crore in the corresponding period of the previous financial year. 

Total income rose 11.28 per cent to Rs 373.18 crore, against Rs 333.53 crore in the year-ago period, the company said. 

“The margins have been under pressure mainly because of the increase in input as well as labour costs. However, we have been able to achieve healthy sales growth despite challenging economic conditions. We expect to deliver strong growth in FY13,” said chairman Adi Godrej. 

For the entire financial year, the company posted a 25.16 per cent decline in net at Rs 97.93 crore, compared with Rs 130.86 crore in the previous financial year. Its total income for the year stood at Rs 819.81 crore, up 46.68 per cent over Rs 558.91 crore in FY11.

During the quarter, it finalised joint development agreement to redevelop 18 residential buildings at Sahakar Nagar near Chembur in Mumbai, across 14,600 sq metres, with a saleable area of 600,000 sq ft. It also signed tripartite agreement for the project in which it would be entitled to 87.5 per cent revenue. 

GPL also entered into a private equity agreement with ASK Group by diluting 49 per cent stake in the subsidiary developing this redevelopment project. The Mumbai-based company witnessed highest deal flow on an annual basis with 10 joint development agreements of 10.5 million sq ft saleable area across six cities, including seven in Mumbai, Bangalore and the National Capital Region and three executed with Godrej & Boyce for land parcels at Vikhroli and Thane and in Hyderabad. 

“These new business development transactions have significantly expanded our portfolio and will enable us to deliver higher profitability over the years,” Godrej said. Total booking value for the year stood at Rs 1,563 crore, compared with Rs 1,072 crore in FY11.