Godrej Properties Q2 PAT seen up 26.5% to Rs 24.6 cr

Godrej Properties' consolidated profit after tax is likely to grow by 26.5 percent year-on-year to Rs 24.6 crore in the second quarter of current financial year, driven by large number of projects under execution.

Revenues are seen going up by 69 percent YoY to Rs 230 crore during the quarter.

Earnings beforet interest, tax, depreciation and amortisation (EBITDA) is expected to rise by 31.25 percent to Rs 42 crore from Rs 32 crore in a year ago period.

But operating profit margin is seen falling by 480 basis points YoY to 18.1 percent in the July-September quarter of FY13.

The company launched one project this quarter i.e Godrej Summit, Gurgaon in September, which received a very good response leading to strong sales momentum.

The launch at the end of the previous quarter was Godrej Serenity in Chembur, Mumbai in June.

Even during a weak home buying season, Godrej had sold the entire Phase-1 (about 1 million sq ft) of Godrej Summit within the first few days of its launch. Average selling price was Rs 5.5 K/sq ft.

Revenue contribution will also come from commercial sale of its Vikhroli project.

Investors should watch out for sales progress in the Kolkata and Chandigarh commercial properties, where the company has 1.5 million sq ft of unsold inventory.

Analysts feel margins will continue to be under pressure due to low margins in non-vikhroli projects. Management had attributed it to escalating input costs and low profitability of Kolkata commercial projects.