Latest News | Godrej Properties Q3 Profit Fall 69pc at Rs 14.35cr; Plans to Raise Up to Rs 3,750cr

New Delhi, Feb 4 (PTI) Realty firm Godrej Properties on Thursday reported a 69 per cent decline in its consolidated net profit at Rs 14.35 crore for the quarter ended December on lower income and announced that the board has approved a proposal to raise up to Rs 3,750 crore through issue of securities.

The Mumbai-based developer also reported a 25 per cent rise in its sales bookings to Rs 1,488 crore in the October-December period of this fiscal.

Its net profit stood at Rs 46.6 crore in the year-ago period.

Total income of the company fell to Rs 311.12 crore in the third quarter of this fiscal year, from Rs 517.47 crore in the corresponding period of the previous year, according to a regulatory filing.

The company's sales bookings rose 25 per cent to Rs 1,488 crore in the third quarter of this fiscal from Rs 1,189 crore in the year-ago period. It has delivered around 1.3 million square feet in Q3 of FY21.

"We have got a board approval to raise up to Rs 3,750 crore," Godrej Properties Executive Chairman Pirojsha Godrej told PTI.

This is an enabling resolution and there is no immediate plan to raise funds, he said, adding that the company will raise funds if it is required for business growth.

Godrej said the third quarter was good on operational front but financial performance remained affected as construction activities were affected by around five months due to the COVID-19 pandemic.

"The real estate sector has recovered from the initial impact of the pandemic. Government action to reduce stamp duties and premiums in Maharashtra combined with a higher intent towards home ownership as a result of the pandemic have helped drive a turnaround in sentiment towards residential real estate," he said.

The construction levels and cash flows have normalised in the third quarter, he said.

"With a large number of new project launches planned for the fourth quarter, we expect to end the year on a strong note and enter the new financial year with strong momentum," Godrej said.

During April-December period of the ongoing fiscal, Godrej Properties clocked a net profit of Rs 2.19 crore, registering a sharp drop from Rs 168.13 crore in the year-ago period.

Total income, too, fell to Rs 757.01 crore during the first nine months of this fiscal, from Rs 1,626.42 crore in the corresponding period of the previous year.

The board has approved raising of up to Rs 3,750 crore through issue of securities, including equity shares, debentures, preference shares convertible into equity shares, and/or any other security convertible into equity shares in one or more tranches through public and/or private offerings including preferential issue, qualified institutions placement, further public offer.

This fund raising is subject to the approval of shareholders through postal ballot.

Godrej Properties is the real estate arm of the Godrej group. It has projects in major cities such as Mumbai, Bengaluru, Delhi-NCR and Pune.

(The above story is verified and authored by Press Trust of India (PTI) staff. PTI, India’s premier news agency, employs more than 400 journalists and 500 stringers to cover almost every district and small town in India.. The views appearing in the above post do not reflect the opinions of LatestLY)