Godrej Properties posts 71% rise in Q1 net profit

MUMBAI: Godrej Properties, the real estate development arm of Godrej Properties, has reported 71% year-on-year rise in net profit at Rs 17.16 crore for the quarter ended June. Total income for the first quarter grew 73% to 226.11 crore, the company said in a release.

The company attributed improved performance to higher sales and bookings during the quarter. Total bookings rose 118% from a year ago to 830,000 million sq ft. The company's finance cost including interest charges fell 83% from a year ago to Rs 57 lakh. Godrej Properties raised Rs 470 crore through equity share sale in March and this will be used to maintain debt-equity ratio and investing in new opportunities, said managing director, Pirojsha Godrej. As on June end, Godrej Properties' debt stood around Rs 1,700 crore, up nearly Rs 150 crore raised during the quarter for construction finance and new projects. The company will be contributing 29% of the recently announced Rs 770-crore fund, while rest will be infused by APG and other partners, Godrej said.

Godrej and its investor partners are aiming to deploy the entire fund for land buys and joint development agreements in the next 24 months, he said. On Friday, shares of Godrej Properties closed at Rs 507.40 on the Bombay Stock Exchange, up 1.3% from Thursday.