Parsvnath Developers Ltd, India’s fourth-biggest listed developer by market capitalization, has seen a 40% fall in its advances from customers to Rs336 crore for the year ended 31 March 2007, from Rs471 crore stated in its initial public offering prospectus in June 2006.
On a year-on-year basis, the advances fell by 5.35% to Rs336 crore for the fiscal 2007 compared with Rs354 crore in the previous fiscal.
“A fall in customer advances only shows that the company is in a better position,” M.C. Jain, vice-president (corporate), Parsvnath Developers, said.
Customer advances are translated into revenues when 30% of a project is completed. “The fact that our advances have fallen shows that we are completing our projects,” he said.
Meanwhile, the company’s net profit for the quarter ended 31 March 2007 rose 254% from a year ago as its customer base grew and its presence spread across the country. The stand-alone net profit for the three-month period was Rs132.43 crore compared with Rs37.46 crore a year ago.
Revenues for the period jumped 70% to Rs412.23 crore from Rs242.91 crore. Profits for the full year rose 156% to Rs271.77 crore from Rs106.24 crore. Annual revenues rose 93% to Rs1,260.98 crore from Rs653.76 crore.
Parsvnath’s shares on Monday closed at Rs339.75, down 1.29%, on the Bombay Stock Exchange.