New Delhi: Realty firm Parsvnath Developers on Monday said it has approached banks for 9-12 months’ breather on paying instalments of its existing debt, and plans to utilise the additional liquidity on timely completion of current projects.
“We are asking for rescheduling the ongoing installments for our debts and are requesting for a moratorium of 9-12 months,” Parsvnath Developers chairman Pradeep Jain said.
The company would utilise the additional liquidity that can be generated out of the adjustments to quickly complete the current projects, he added.
The company’s net debt as on 31 December 2008, stood at Rs1,825 crore with an average interest cost of 13.59%.
“Our focus is on existing projects. We are not buying any new projects except the land adjacent to our projects,” Jain said.
Jain also said the company may raise funds from private equity players project by project.
Asked about its retail plans, Jain said, “In today’s economic scenario, we have put on hold our retail expansion.”
During the third quarter ended December 2008, the realty firm reported a sharp fall of 95.18% in its consolidated net profit at Rs5.42 crore, on account of declining sales and high interest cost.
The company had posted a net profit of Rs112.57 crore in the third quarter of the previous financial year, Parsvnath Developers said in a statement.
Total income also declined to Rs98.01 crore from Rs497.10 crore during the period under review, a dip of 80.28%, it added.