The Mumbai-based real estate arm of Godrej Group Godrej Properties on Friday posted a 13.7% year-on-year decline in net profit at R15.5 crore for the quarter ended December 31, 2010, as against R17.6 crore last year.
New taxation method and addition of minority interest led to a drop in profit margins, a company spokesperson said.
Total income rose to R68.2 crore in the October-December quarter, compared to R47.4 crore in the year-ago period.
The company’s EBITDA stood at R26.6 crore in the third quarter compared to R23.6 crore in the same period last year, an increase of 11%.
For the first nine months the company’s net profit jumped by around 9% to R70.9 crore in the third quarter, as against R65.3 crore in the same period last year.
Godrej Properties managed to keep the topline healthy with launches in residential and commercial properties. The company sold over 6.5 lakh sq ft of residential property and over 27,000 sq ft of commercial property. Total bookings in the first nine months of the fiscal year stood at 15,88,556 sq ft.
The company’s topline also benefited from the healthy real estate market in 2010. Prices, especially in the residential segment, in some parts of Mumbai and the National Capital Region, had jumped by 30 to 50%.
The real estate arm had earned R14.97 crore during the quarter by off-loading some stakes in two of its projects to India Realty Excellence Fund and HDFC Portfolio Management Services.