New Delhi: Parsvnath Developers Ltd, India’s fourth largest listed real estate developer, posted a net profit of Rs102.77 crore for the quarter ended 30 September, more than doubling its profit of Rs48.93 crore from the year-ago period, as it sold more ongoing projects.
The company’s sales rose 40.67% to Rs412.70 crore for the quarter, compared with Rs293.34 crore during the same period last year. Parsvnath’s operating margins increased to 39.06% from 25.67% on the same basis. The real estate company’s total debt at the end of the quarter was Rs1,463 crore.
The real estate market in India slowed this year with homes being sold at a slower pace after the Reserve Bank of India upped interest rates several times to keep them at a five-year high. Banks, too, have reined in lending to the sector, forcing companies to look for funding from overseas investors. As a result of the funding crunch, some real estate firms, including Parsvnath, have become more cautious about expansion. Parsvnath’s net profit for the half-year ended September was Rs204.95 crore—an increase of 139.79% from Rs85.47 crore during the year-ago period. The firm’s revenue stood at Rs827.17 crore—an increase of 52.51%, from Rs542.35 crore in the year-ago period. Parsvnath has applied for a telecom licence from the department of telecommunications as it hopes to provide Unified Access Services in 22 telecom circles. “We have already tied up with a telecom player,” said Pradeep Jain, chairman, Parsvnath. “We can’t disclose the name because of confidentiality clauses.”