Godrej Properties declined 2.43% to Rs 962 after consolidated net profit surged 66.21% to Rs 34.19 crore on 33.96% fall in net sales to Rs 259.67 crore in Q2 September 2019 over Q2 September 2018.
The result was announced during trading hours today, 5 November 2019.
From 1 April 2019, the group adopted Ind AS 116 leases, applied to all lease contracts existing on 1 April 2019 using the modified retrospective method and has taken the cumulative adjustment to retained earnings, on the date of initial application. Accordingly, comparatives for the quarter/year ended 31 March 2015 and quarter/period ended 30 September 2018 have not been retrospectively restated.
The cumulative effect of applying the standard resulted in Rs 1.37 crore being debited to retained earnings, net of taxes, increase in property, plant and equipment by Rs 12.76 crore and borrowings by Rs 14.83 crore. The effect of this adoption is not material on the profit for the quarter and half year ended 30 September 2019 and earnings per share (EPS).
The consolidated adjusted EBITDA jumped 80% to Rs 191 crore in Q2 September 2019 as against Rs 106 crore in Q2 September 2018.
The company said that the Q2 FY2020 witnessed a total booking value of Rs 1,446 crore and total booking volume of 2.26 million sq. ft. as compared to total booking value of Rs 807 crore and total booking volume of 1.07 million sq. ft. in Q2 FY2019.
Commenting on the Q2 result, Pirojsha Godrej, the executive chairman of Godrej Properties, has said that, "The overall environment in the real estate sector remains challenging. This provides Godrej Properties with tremendous opportunity to drive market share growth in residential real estate. We expect strong momentum in both portfolio project additions and new project launches in H2 FY20."
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Godrej Properties is engaged in construction and real estate development. The firm focuses on developing residential, commercial and township projects.
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