Godrej Properties (GODREJPROP) Q4 07/08 earnings summary

Executive summary

• FY08 total income was ₹22,749.99 lacs; profit before tax reached ₹11,531.84 lacs and profit after tax ₹7,588.80 lacs.

• Growth reflected an ₹8,155 lacs built-to-suit sale at Godrej Woodsman Estate, Bangalore; ₹6,442.45 lacs was recognized as the share of revenue from the transaction.

• Expansion added Chandigarh, Mangalore, Kochi and Chennai, alongside large township development agreements in Ahmedabad.

Financial highlights

• Total income rose from ₹13,726.17 lacs in FY07 to ₹22,749.99 lacs in FY08; sales were ₹19,648.44 lacs and operating income ₹3,095.28 lacs.

• Profit before tax increased from ₹4,609.77 lacs to ₹11,531.84 lacs; profit after tax rose from ₹4,145.23 lacs to ₹7,588.80 lacs.

• Prior-year tax adjustments reduced FY08 earnings by ₹1,344.17 lacs; FY08 current tax provision was ₹3,928 lacs.

• Cash and bank balances closed at ₹639.54 lacs, down from ₹1,336.79 lacs at FY07 year-end.

Outlook and guidance

• Growth expected from infrastructure improvements, urbanization, organized retail, affordable and quality housing shortages, and demand from IT/ITES, banking and insurance.

• Large townships, mixed commercial and residential projects, and joint development with landowners were identified as sources of a diversified, de-risked development pipeline.