Godrej Properties Q2 net plunges 41%

The net profits for the September period last fiscal stood at Rs 32.9 crore.

Godrej Properties (GPL),the real estate arm of the Godrej Group,today reported a 40.72 per cent dip in the net profit to Rs 19.5 crore for the second quarter,despite a healthy 70 per cent growth in sales.

The net profits for the September period last fiscal stood at Rs 32.9 crore.

GPL reported a healthy 69.53 per cent rise in the sales at Rs 141.9 crore during the reporting period compared to Rs 83.7 crore in the corresponding period of last fiscal.

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“Though profit has declined,we achieved a robust revenue growth over Q2 of FY’11. Our margins depend on how much private equity we bring in during a quarter.

“There was a considerable amount of PE money in Q2 of last fiscal compared to this year. Therefore,we see a huge difference in the profit margin,” GPL Executive Director Pirojsha Godrej said.

He said the sales were quite encouraging and the trend will continue over the next two quarters.

“We expect the profits to increase substantially,mainly on the back of increase in sales and bookings. Second half is generally stronger,therefore,we expect to see a much more increase in sales in the coming quarters,” he said.

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During the quarter,GPL signed an agreement Godrej & Boyce to act as development manager for future development on its entire Vikhroli land parcel.

Meanwhile,GPL today signed a similar agreement with Universal Builders wherein GPL will act as the development manager to develop 0.4 million sq ft premium residential villas at Electronic City,Bangalore.