Godrej Properties sees 24% profit in Q3 FY2013
Godrej Properties Ltd the real estate arm of Godrej group posted a 24% rise in net profit to Rs. 35.4 crore in the December quarter from a year ago.the real estate firm is riding on the success of new project launches. In 2012 the profit increased by 78 percent in revenue to Rs.266.4 crore.
Godrej properties is going to see a strong momentum in new business, launches and bookings. they have successfully launched projects across the key markets of Bangalore, NCR (National Capital Region) and Mumbai during the third quarter of 2012.
Mumbai redevelopment space strengthened the firm’s presence with the additional of the Curry Road project during the quarter. In the December quarter the firm received bookings worth a total od Rs 672 crores for 1.04 million sq. ft of space, compared with Rs.364 crore for 0.57 million sq. ft previous year.
With five new project and 4.3 million sq. ft saleable area, the deal flow momentum remains healthy. Despite of a price hike by 25-40 percent, Godrej Properties benefited from strong demand.
Reserve Bank of India (RBI) has announced reduction in short-term lending rate by 0.25 percent to 7.75 per cent. This move is expected to lead to reduction in interest rates for buyers and builders. RBI has also cut Cash Reserve Ratio (CRR) to 4 percent, releasing Rs 18,000 crore primary liquidity into the system.
2012 was a good year for the company and they are expecting that 2013 will be a more supportive year for them. The entire focus of the company in 2013 will be to get much stronger return of volumes and maintain the pace of new launches.
Analysts said, this quater the company had got great booking and the last quarter of this year seems to be good as most of the projects will get 75-100 completed.
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