The Mumbai-based real estate company Godrej Properties reported a consolidated net profit of Rs 46 crore during April-June as compared to Rs 17 crore posted in the corresponding period last year.

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Its revenue from operations stood at Rs 244.67 crore during the reporting quarter. In April-June last year, the company posted a revenue of Rs 86.16 crore.

#1QWithCNBCTV18 | Godrej Properties reports Q1 earnings.

▶️Cons net profit at ₹45.5 cr vs ₹17 cr (YoY)▶️Cons revenue at ₹244.7 cr vs ₹86.2 cr (YoY)▶️Cons EBITDA loss at ₹14.2 cr vs loss of ₹63.4 cr (YoY) pic.twitter.com/8HEtnAtMJI— CNBC-TV18 (@CNBCTV18Live) August 2, 2022

Even as the real estate company witnessed a steep rise in raw material cost to Rs 971.22 crore in the quarter under review from Rs 159.51 crore a year ago, it achieved its highest first-quarter sales during the June quarter.

Its total booking value grew 407 percent on year to Rs 2,520 crore.

Godrej Properties’ total income grew 61 percent year-on-year to Rs 375 crore in the first quarter of FY23, while EBITDA (earnings before interest tax depreciation and amortisation) grew by 41 percent year-on-year to Rs 116 crore.

On Tuesday, Godrej Properties' stock closed at Rs 1,468.1, down 2.9 percent on the BSE. Intraday, the stock declined about 6 percent today.

Management commentary

Pirojsha Godrej, Executive Chairman, Godrej Properties, said, “Having delivered our highest ever first quarter bookings of Rs 2,520 crore, we are on track to meet our FY23 objective of achieving Rs 10,000 crore booking value”.

Talking about an exciting launch pipeline, Godrej said in an interview with CNBC-TV18 that the company had a mixed bag of plotted developments, group housing projects and some exciting new projects in the pipeline that it hopes to launch later this financial year or in the upcoming financial year.

For existing projects, he said that the real estate player has already seen price increases of 5-10 percent over the last year. “I would estimate that something similar is likely if not even more in the year ahead,” he added.

He believes that the real estate sector has been exceptionally resilient even as the industry faced challenges such as elevated inflation and recent interest rate hikes.

“The sector will likely continue to strengthen in the quarters ahead, and we will focus on significant market share gains through new project acquisitions and launches. We have a robust launch pipeline for the rest of the year which will help us build on the current momentum,” he added.

Also Read: Godrej Properties' Mohit Malhotra resigns as MD & CEO, Gaurav Pandey to take over

Succession plan

Mohit Malhotra has resigned as the Managing Director and Chief Executive Officer. Gaurav Pandey, currently serving as CEO of North Zone, has been assigned to take the company's reigns with effect from January 1, 2023.

Pirojsha Godrej, Executive Chairman, Godrej Properties, told CNBC-TV18 that Mohit Malhotra has plans to start an entrepreneurial venture. "So, we did have a strong succession plan in place.”

Also check out stock market highlights of August 2 session here.

First Published:Aug 2, 2022 4:32 PM IST