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The April-June quarter is unlikely to spell any cheer for real estate companies, whose stocks have been underperforming the market for a while now. Soaring interest rates have hit real estate companies on two fronts: it has pushed up their borrowing costs and at the same time, prompted many potential buyers to defer their purchases.
Diversified conglomerate Godrej Industries reported 42.34% increase in consolidated net profit for the quarter ended March 31, 2011. The chairman Adi Godrej expects strong growth in FY12.
Speaking to CNBC-TV18, chairman Adi Godrej said the company has formed a special purpose vehicle to look into redevelopment projects in Mumbai. "Ahmedabad contributed roughly 40% of fourth quarter revenues," he said.
In an interview with CNBC-TV18, Adi Godrej, CMD, Godrej Industries, speaks about the results and gives his outlook going forward.
Commenting on the progress of the Vikhroli project, Adi Godrej, chairman of Godrej Properties says work has already started the site. "The construction part should commence soon," he adds.
Godrej Properties is to announce its third quarter results. According to CNBC-TV18's estimates, the company's Q3FY11 revenues are seen up at Rs 57.4 crore versus Rs 34.61 crore, quarter-on-quarter, QoQ.