Godrej Properties Q1 PAT seen down 57% to Rs 26 cr (QoQ)

Godrej Properties is expected to report a 57% fall in its first quarter FY12 profit after tax to Rs 26 crore against Rs 60 crore in previous quarter. However, the company is likely to show 17% rise on quarter-on-quarter from Rs 22 crore in the year ago period.

Net sales too are seen going down 62% to Rs 123 crore from Rs 328 crore quarter-on-quarter while sales are likely to jump 199% year-on-year from Rs 41 crore in Q4FY11.

EBITDA is expected to go down 60% to Rs 39 crore from Rs 96 crore QoQ and EBITDA margin is seen improving at 32% versus 29%.

((Yearly numbers are not comparable given that the company reached revenue recognition threshold in major projects in Q4FY11. Prior numbers were largely PE related transactions))

Factors:

*Lack of new launches to cause negative sales sequentially

*Lowered absorption in key Ahmedabad project owing to steep price hike

*Current price of more than Rs2,800/sqft - to cause lukewarm absorption

*Lumpy recognition in sales to lower sales on QoQ basis

Key monitorables and concerns

Ahemdabad absorption a monitorable

*Initial phases of GPL