Godrej Properties July-September Profit up 21% on Inventory Gains

Godrej PropertiesLtd. reported a 21% on-year rise in consolidated net profit for the September quarter to ₹4.05 billion, driven by a large gain in inventories. Revenue for the quarter fell over 32% on year to ₹7.40 billion.

Sequentially, the company’s revenue rose more than 70%, while profit declined over 32%. The Mumbai-based real estate developer booked inventory gains of ₹32.08 billion during the quarter.

Total expenditure for the quarter rose nearly 16% on year to ₹13.01 billion, led by a sharp rise in raw material costs which more than doubled to ₹38.53 billion. Employee expenses were up 55% on year at ₹1.68 billion, while other expenses climbed 29% to ₹4.40 billion. Finance costs fell 52% on year to ₹215 million.

Earnings before interest, tax, depreciation and amortisation rose 118% on year to ₹6.14 billion. Collections stood at ₹40.66 billion, up 2% on year.

The company’s consolidated booking value rose 64% on year to ₹85.05 billion on sales of 7.14 million square feet in July–September. For the half-year ended September, booking value was ₹155.87 billion, up 13% on year, achieving 48% of its annual guidance.

Revenue from the real estate segment fell over 33% on year to ₹7.14 billion, while hospitality revenue increased nearly 19% to ₹260.6 million.

The company launched 12 new projects and phases across eight cities during the quarter with a total sales potential of ₹101 billion. It also added four new projects with an estimated booking value of ₹48.50 billion.

The board has approved the merger of its wholly owned subsidiary Embellish Houses Pvt. Ltd. with the parent company, it said in a stock exchange filing.