Godrej Properties, one of the real estate major in the country has registered 27% growth in its consolidated sales for the quarter ended Dec 2018 to Rs 340.06 crore. However with operating profit margin stay negative at 11.4% compared to negative 22.6% in corresponding previous period, the operating loss was lower at Rs 38.73 crore compared to a loss of Rs 60.49 crore in the corresponding previous period. However spurred by 122% jump in other income to Rs 90.64 crore, the PBIDT was a profit of Rs 51.91 crore compared to a loss of Rs 19.63 crore in the corresponding previous period. After accounting for higher interest cost (up 44% to Rs 54.22 crore) and lower depreciation (down 10% to Rs 3.79 crore) the PBT was a loss of Rs 6.10 crore compared to a loss of Rs 61.60 crore in the corresponding previous period. With share of profit from JV/associates stand higher at Rs 42.11 crore, a swing of Rs 51.14 crore, the PBT after associate share of profit was Rs 36.01 crore compared to a loss of Rs 70.63 crore. The taxation was a write back of Rs 5.62 crore compared to a write back of Rs 15.88 crore in the corresponding previous period. Thus the PAT was a profit of Rs 41.63 crore compared to a loss of Rs 54.75 crore in the corresponding previous period. Other comprehensive expense (net of tax) was higher by 13% to Rs 0.09 crore. Thus the net profit was up at Rs 41.54 crore compared to a loss of Rs 54.83 crore in the corresponding previous period.

IND AS 115 - Revenue from Contract with Customers has been notified by Ministry of Corporate Affairs (MCA) on March 28, 2018 and is effective from accounting period beginning on or after April 01, 2018. The Company has applied full retrospective approach in adopting the new standard (for all the contracts other than completed contracts) and accordingly restated the previous period numbers as per point in time (Project Completion Method) of revenue recognition. Thus the change on adoption of IND AS 115 (net of taxes) at total comprehensive income level in quarter ended Dec 2017 was a loss of Rs 80.69 crore as against reported RS 25.86 earlier. Thus the restated total comprehensive income on adoption of Ind AS 115 was a loss of Rs 54.83 crore.

Nine-month performance

Sale for the period was up by 25% to Rs 1724.64 crore. But with OPM stand contracted by 340 bps to 0.6%, the operating profit was down by 80% to Rs 11.15 crore. However the PAT more than doubled (up 116%) to Rs 96.48 crore gained largely by higher other income, higher share of profit from associates and lower taxation. After accounting for other comprehensive expense (down 22% to Rs 0.28 crore) the net profit was up by 117% to Rs 96.20 crore.

Godrej Properties : Consolidated Financial Results