Bengaluru/Mumbai: Godrej Properties Ltd (GPL) on Thursday promoted executive director Mohit Malhotra as new managing director and CEO, while elevating current MD and CEO Pirojsha Godrej as executive chairman.
Adi Godrej will take up the position of chairman emeritus at Godrej Properties. Karan Bolaria, currently head, Godrej Fund Management, a subsidiary of Godrej Properties, will be its new CEO.
The Mumbai-based realty firm on Thursday posted a nearly fourfold jump in its net profit for the third quarter ended December to Rs77.25 crore from the corresponding period a year ago, backed by strong sales during the period.
Its total income doubled to Rs518.25 crore in the quarter from Rs247.24 crore in the year-ago quarter.
“While I will still be hands-on, I want to focus on the long-term plan for the company. Mohit has been with the company since 2010 and is ready for this role,” said Pirojsha Godrej.
Godrej Properties has in many ways bucked the slowdown in the real estate sector over the past few years and emerged as one of the best performing developers. It has entered new property markets, actively launched projects and booked good sales when most developers have struggled to sell and curtailed projects launches.
Godrej Properties said it registered a total booking value of Rs693 crore in the December quarter. The first phase of The Trees project in Mumbai suburb Vikhroli, which started revenue recognition, contributed almost 60% to the quarterly revenue.
It sold over 6 lakh sq. ft worth over Rs300 crore on the first day of launch of Godrej Golf Links in Greater Noida and over 300 apartments within two months of launch at Godrej Greens in Pune.
Both projects were launched in November 2016.
“The response to our new project launches in Noida and Pune has been excellent despite challenging market conditions. As we commence the final quarter of the financial year, we look forward to building on this momentum,” said Godrej.
In 2017, the third and last phase of The Trees will be launched, around 3.5 lakh sq ft of residential space. The company, which has a pipeline of new projects which will be launched subject to approvals, is looking to deepen its presence in each region by entering different micro-markets.
“We are optimistic and believe that the impact of demonetisation along with RERA (new real estate law) and lower interest rates will boost customer confidence. Affordability is better than what it was five years ago. The new regime will also make it tough for disorganized developers to survive,” Godrej said.
“The strength of the brand has worked for them. People believe in the brand. Besides, unlike some of the other bigger companies, Godrej has got a varied number of projects at different price points across cities and geographies. This has worked in their favour even during times like demonetisation,” Adhidev Chattopadhyay, research analyst, (infrastructure and real estate), Emkay Global Financial Services Ltd.
Godrej Properties gained 7% to close at Rs372.80 per share on Thursday on the BSE, while the benchmark index, Sensex gained 0.30% to close at 28226.61 points and the BSE Realty Index gained 0.20% to close at 1438.78 points.