Godrej Properties has announced its second quarter results. The company's Q2 net profit was down at Rs 19.4 crore versus Rs 32.9 crore, year-on-year, YoY.
Its net sales were up at Rs 130 crore versus Rs 34.3 crore, YoY. In an interview to CNBC-TV18, Adi Godrej, chairman of Godrej Properties says, the profits were lower than of the same quarter of the previous year because in the previous year the company had considerable private equity based profits and this year it was all operational profit. He further says, despite the fact that in the base the company had a lot of private-equity profits, he expects the year to end up good. The tie-up with Godrej & Boyce, he says, will be a strong growth driver for Godrej Properties into the future. Also read: Godrej Properties Q2 net profit down at Rs 19.4 cr Below is the edited transcript of his interview. Also watch the accompanying video. Q: Can you take us through the results? What is the reason for the decline in the profit after tax (PAT)? A: Our total income for the quarter was up 70%. Our new bookings were three-fold of what it was in the same quarter of the previous year. The profits were lower than those of the same quarter of the previous year because in the previous year we had considerable private equity based profits and this year it was all operational profit. So, overall, we are very pleased with the momentum of the results. Despite the fact that in the base we had a lot of private-equity profits, we expect the year to end up good. Besides that, we announced major new developments. Firstly, we have signed up eight new projects this first half, five of them in the second quarter. We have announced a very major new tie-up where Godrej Properties will have a development manager role for all the development of Godrej & Boyce property at Vikhroli. This, to our mind, will be a huge addition to the present value in Godrej Properties. As you know we have large tracts of land in Vikhroli. These will be developed, 10% fee will be paid by Godrej & Boyce to Godrej Properties. We expect Godrej PropertiesDiscover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
