Godrej Properties, the real estate arm of Godrej Group, today reported a 26.44 per cent increase in consolidated net profit at Rs 47.24 crore for the quarter ended December 31, 2014 mainly on the back of higher sales.
Its net profit stood at Rs 37.36 crore in the corresponding quarter last fiscal.
The total income increased nearly two-fold to Rs 538.64 crore for the quarter from Rs 253.92 crore in the year-ago period.
"We have seen a significant surge in our revenues for a single quarter as most of our projects are reaching the revenue recognition threshold. Nearly 50 per cent of the revenues were contributed by the sales from commercial project, especially the project in BKC," company's Managing Director and Chief Executive Pirojsha Godrej told reporters here.
The total expenditure for the quarter increased over two-fold to Rs 457.68 crore from Rs 158.08 crore in the corresponding period last year.
"The cost of sales increased significantly during the quarter mainly due to monetisation of commercial properties, which are not high margin projects. Going forward we expect similar volatility in operating margins as three of our commercial projects are likely to be fully monetised by FY16," he said.
During October-December quarter, Godrej Properties achieved 37 per cent growth in volume and 28 per cent growth in value of sales bookings.
Q3 FY15 witnessed total booking value of Rs 548 crore and total booking volume of 7,01,729 sq ft as compared to total booking value of Rs 428 crore and total booking volume of 5.13,641 sqft in October-December quarter of last fiscal.
The company plans to launch three new residential projects this quarter with two in Mumbai and one in Pune.
The projects coming up in Chembur and Byculla in Mumbai, will be under redevelopment scheme with a total developable area of 7.5 lakh sqft and 3.5 lakh sqft, respectively. The Pune project will be around 3 million sqft.
"We have planned to launch a slew of residential projects in the next one year which would have a mix of new lauches as well as the next phases of existing project. We will be able to maintain the sales and execution momentum," Godrej added.
Godrej Properties is currently developing residential, commercial and township projects spread across 104 million sqft in 12 cities.
