Godrej Properties, one of the few big real estate giants that weathered the slow down in the market over the last three years well, has reported strong numbers for its second quarter.
Revenue from operations jumped 49% to 492 cr, while net profit rose by 91% to 44 cr.
Both revenue and profit more or less doubled from the preceding June quarter, when the company had sales of 249 cr and PAT of 23 cr.
The increase in profit was largely due to the higher leverage provided by the improved sales performance.
The sales performance was also aided by a cut in ‘other expenses’ from 77 cr in the June quarter to 63 cr in the September quarter.
Profit before tax more than doubled year on year to 71 cr rupees from 31 cr. In the June quarter, PBT was Rs 43 cr.
There was a 122% growth in the value of bookings during the quarter to Rs 1,335 Cr.
The value of sales in in the first half of the year was 2,809 Cr, up 40% than the corresponding figure for the whole of FY17, which was Rs 2,020 Cr.
Residential sales in the six month period was higher than in any other previous half year period, it said.
It added 8 new projects added so far this year, out of which four new projects with around 2.6 million sq. ft. – were added in the quarter.
The company is one of the few that continues to grow fast. It has launched a slew of projects in recent months, usually in tie-up with other cash-strapped real estate players who are eagerly looking for someone to help them monetize their land holdings.
The real estate market in India has seen a sharp slowdown in recent years after home prices rose by about 20 times in the preceding 30 years, making them unaffordable to most people in the country.