Godrej Properties' net profit dropped 41 per cent to Rs 19.5 crore for the second quarter ended September 30, as compared to Rs 33 crore logged in the same period last year.
Total income rose to Rs 142 crore (Rs 84 crore).
The drop in profit was due to a considerable amount of private equity investment in the company in Q2 FY11, whereas it was more of operational profits this quarter.
Mr Adi Godrej, Chairman, Godrej Properties, said: “Q2 FY12 has been an eventful quarter for Godrej Properties. We finalised five joint development deals including projects in Mumbai, Gurgaon, Hyderabad and Nagpur for about eight million sq ft. I am delighted with the conclusion of a landmark agreement with Godrej & Boyce in Q3 FY12 for all future development on the Vikhroli land parcel. This is a highly value accretive deal which will provide significant risk free cash flow for Godrej Properties.”
“Additionally, the repositioning of Godrej Garden City, Ahmedabad and Godrej Oasis, Hyderabad will substantially improve the company outlook by allowing the company to focus on residential developments and thereby ensuring faster turnaround of capital. We plan to sustain the current joint venture deal momentum and launch several new projects in the upcoming quarters, which will lead to a very strong second half of the year for Godrej Properties,” he said.