Godrej Properties' Q1 net tanks 65 per cent on higher expenditure

Real estate firm Godrej Properties' consolidated net profit declined by 65.41 per cent to Rs 34.3 crore in the June quarter, mainly due to higher expenditure.

Its net profit stood at Rs 99.17 crore in the same period last year.

The company's total income, however, rose 18.96 per cent to Rs 1,066.73 crore in the reporting quarter, from Rs 896.71 crore in the year-ago period.

Its total expenses increased to Rs 992.14 crore, from Rs 732.98 crore.

"We have just completed an eventful start to the year. The new accounting standards fundamentally change the way we recognise revenues and will lead to more volatility in reported earnings," Godrej Properties' executive chairman Pirojsha Godrej in a statement.

Total bookings for the company witnessed a decline in the June quarter, both in volume and value terms, at 1.17 million sq ft and Rs 820 crore, respectively.

It had registered 1.8 million sq ft bookings, valued at Rs 1,474 crore, in the year-ago period.

The company also raised Rs 1,000 crore during the quarter through preferential issue allotted 1.28 million equity shares of Rs 5 each to Gamnat Pte, a GIC-managed investment firm for Rs 783.50 per share during the quarter.

Godrej said this will help the company to accelerate the scale of expansion in its top four focus markets and capitalise on the opportunities in the business development space.

"Given the exciting launch pipeline, we remain confident of a pickup in sales performance in the year ahead," he added.

The company's stock ended 1.51 per cent lower at Rs 731.85 apiece on the BSE today, against 0.95 per cent decline in the benchmark.