GPL Q4 net dips 34% at Rs 40 cr

Godrej Group's real estate arm Godrej Properties (GPL) today posted a 33.65% 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 last fiscal.

Total income grew 11.28% at Rs 373.18 crore as 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," Godrej Group chairman Adi Godrej said.

For the full fiscal, the company posted a 25.16% decline in net at Rs 97.93 crore compared to Rs 130.86 crore last fiscal. Its total income for the year stood at Rs 819.81 crore, up 46.68% as against 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, spread across 14,600 sq metres, with a saleable area of 6 lakh sq ft. It also signed tripartite agreement for the project where it will be entitled to 87.5% revenues.

GPL also entered into private equity agreement with ASK Group by diluting 49% 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, which includes seen in Mumbai, Bangalore and Delhi NCR, and three executed with Godrej & Boyce for land parcels at Vikhroli and Thane here, 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 as compared to Rs 1,072 crore in FY11.

"GPL delivered impressive financial and operational progress in FY12 with a 47% growth in total income and 46% in booking value even in the face of economic uncertainties and a sluggish sectoral environment," Godrej added.