Godrej Properties net dips in Q1

Mumbai, Jul 23: Real estate developer, Godrej Properties (GPL), on Friday posted a 55.16 per cent dip in its consolidated net profit at Rs. 10.06 crore for June quarter despite a 83 per cent rise in revenues.

Its net profit for the corresponding period last year stood at Rs. 22.44 crore, the company said in a statement issued in Mumbai.

Attributing the massive dip in net income to absence of any private equity fund inflow during the quarter, GPL Chairman Adi Godrej said, "Though the profits have declined, we achieved a robust growth in our revenues as against Q1 FY 11. Our margins depend on how much private equity we bring in during the quarter. There was a considerable amount of PE in the first quarter of FY 11. Therefore, we see a huge difference in the profit margins."

The total income of the company for the period stood at Rs. 134.74 crore, reporting a 83 per cent rise as compared to Rs. 73.46 crore in Q1 FY 11.

The company had diluted 49 per cent stake in its Godrej Palm Grove project in Chennai during the first quarter of FY 11 for a realisation of Rs. 55 crore.

Similarly, it had diluted 49 per cent stake for Rs. 50 crore in its Godrej Woodsman Estate II project in Bangalore during Q4 last year.

In the quarter, the total booking value grew by 70 per cent to Rs. 232.47 crore from Rs. 136.98 crore in Q1 FY 11.

"During the quarter, we signed 3 new joint venture projects--two in Mumbai and one in Hyderabad. We are in advanced discussions for several new joint venture projects and are planning new launches in Mumbai, Bangalore, Hyderabad, Chennai, and Kochi. We expect FY 2012 to be a very strong year," he said.

PTI