Godrej Properties edges lower after Defence Ministry red flag's ongoing Kandivali project

Godrej Properties slipped 2.24% to Rs 2750 after media reports suggested that the Ministry of Defence raised objection against the real estate company's ongoing residential project in Kandivali, Mumbai.

As per reports, the Central Ordinance Depot has asked the Godrej company to suspend the project as it is 500 meters away from its office in Mumbai. The estimated income for the company from this project reportedly is Rs 7,000 crore.

The Godrej Reserve project is reportedly being built on an 18.6-acre land parcel. According the media reports, the developer has already launched about 1.91 million square feet and had got bookings for 1.51 million square feet worth Rs 2,693 crore.

A Godrej Properties spokesperson was quoted by the media saying: "As a responsible developer, all our projects commence post grant of appropriate and necessary approvals from concerned authorities.

In this case too, all requisite approvals from concerned authorities and RERA (Real Estate Regulatory Authority) are intact. We have not received communication from any concerned authority citing any non-compliance on our part."

Godrej Properties is the real estate arm of the Godrej Group. It is subsidiary of Godrej Industries, which holds 58.48% of the company's equity shares as on 31 March 2024. The company currently operates in various cities and focuses on residential, commercial, and township development.

The company's consolidated net profit jumped 14.34% to Rs 471.26 crore in Q4 FY24 as compared with Rs 412.14 crore in Q4 FY23. Revenue from operations declined 13.37% YoY to Rs 1,426.09 crore in Q4 FY24.

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