Realty firm Godrej Properties on Wednesday announced that the board of directors of the company has approved Rs 155 crore for repair work in its completed housing project Godrej Summit at Gurugram in Haryana after chloride was found in concrete used in the buildings, the firm said in a regulatory filing on August 2.
The Godrej Properties Limited said that Godrej Projects Development Limited, a wholly-owned subsidiary of the company, for its Godrej Summit project in Gurgaon, which was completed in phases in 2017 & 2018, recently appointed an external expert to undertake a detailed independent assessment of a quality issue discovered in the project.
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The assessment identified the presence of chloride in the concrete used in the project, which, when in contact with water, leads to corrosion of steel reinforcement, said the company in the stock exchange filing.
The external experts further advised that with the required repair and maintenance framework, the building is expected to perform as per its intended design life, it read.
“Accordingly, an estimated amount of Rs.155 crs towards repair, maintenance, customer claims, or any ancillary costs has been provided in the unaudited financial results of the Company for the quarter ended June 30, 2023, and approved by the Board earlier today,” the company said in the August 2 regulatory filing.
GPDL believes that it can claim against the contractors who constructed Godrej Summit, the company said.
GPDL has also made an offer to buy back units or provide rentals to all the unit holders of the project and will account for the buyback if and when the intending customers execute the relevant documentation with GPDL, it added.
According to sources, as cited by moneycontrol.com, a few flat owners have availed of the buyback offer.
Godrej Properties, however, claimed that there would be no impact on the profit and loss statement as those flats will be sold again after the repair work.
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Godrej Properties Q1 FY24 Results
Godrej Properties has reported a growth of 208.68 per cent in its net consolidated profit during the quarter ended June 30, 2023. Its profit after tax (PAT) stood at Rs 133.69 crore in Q1 FY24 as against Rs 43.31 crore in the corresponding quarter of the previous fiscal, the company said in the regulatory filing.
The company’s net consolidated total revenue stood at Rs 1,265.98 crore, a growth of 196.90 per cent from Rs 426.40 crore recorded in the similar quarter last year.
The company’s net worth, as of June 30, 2023, stood at Rs 9,389.40 crore, debt-equity ratio was 0.81, total debts to total assets was 0.31, current liability ratio was 1, operating margin was (6.64 per cent) and net profit margin was 10.17 per cent.
