New Delhi: The real estate sector appears to be on its way to recovery, with developers reporting an improvement in apartment sales in the three months ended June compared with previous quarters, although there’s no boom yet.
Parsvnath Developers Ltd, a New Delhi-based developer, which reported its first-quarter results on Thursday, sold 400 apartments (600,000-700,000 sq. ft) across segments compared with sales of just 70-80 apartments during the preceding quarter.
DLF Ltd, India’s laregst developer by market value, which was also to announce its first-quarter results on Thursday, had not done so by the time this edition went to press.
Parsvnath reported an 81.32% drop in its profit for the fiscal first quarter ended June at Rs13.81 crore, compared with Rs73.96 crore in the year-ago period. Revenue was also lower by 69.37% at Rs115.29 crore for the quarter, compared with Rs376.42 crore in the same period last year.
But when compared with the fourth quarter of the previous fiscal, Parsvnath’s net profit increased by 19.05%, while the company’s revenue saw a huge 378.58% jump on account of better sales.
“The last two quarters were disastrous but this quarter was better in terms of sales,” said Pradeep Jain, chairman of Parsvnath Developer. “We sold apartments across segments in luxury projects such as Exotica in Gurgaon and in our affordable housing projects in Delhi’s suburbs.”
Shares of the firm, which declared results after market hours, rose 1.78% to close at Rs117.35 on the Bombay stock Exchange (BSE).
The Indian real estate market went into a slump in the face of an economic downturn and credit crunch last year.
Sales momentum in the residential market has picked up in Mumbai and the National Capital Region centred on New Delhi in recent months, with demand increasing for affordable housing.
According to a 13 July report by Motilal Oswal Securities Ltd, developers such as DLF, Unitech Ltd, Indiabulls Real Estate Ltd, Housing Development and Infrastructure Ltd and Puravankara Projects Ltd launched a total of 35 million sq. ft during the first quarter out of which they sold 15.8 million sq. ft, almost half of what was launched.
Indiabulls posted a 12.5% decline in net profit to Rs5.95 crore during the first quarter compared with Rs6.80 crore during the year-ago period. Revenue increased by 4.13% to Rs34.78 crore during the quarter from Rs33.4 crore.
While company officials could not be reached for comment, according to the Motilal Oswal report, Indiabulls launched 11 million sq. ft and sold 3.5 million sq. ft during the first quarter.
Shares of Indiabulls, which also declared its results after market hours, gained 0.93% to close at Rs248.95 on BSE.
Construction firm Ansal Properties and Infrastructure Ltd today announced a consolidated net profit of Rs10.21 crore in the first quarter ended 30 June down 52.70% over the same period a year ago.
PTI contributed to this story.