Parsvnath sells land to retire debt

Parsvnath sells land to retire debt

New Delhi: Cash starved realty firm Parsvnath Developers Ltd, which reported its fourth quarter results on Thursday, confirmed that it sold land parcels across three cities to retire part of its debt.

“We have sold six properties across three cities: Mumbai, Pune and Ahmedabad," said chairman Pradeep Jain. “The total realization from the sale has been around Rs350 crore. Half of this amount has come to us, while rest will come on a monthly basis over the next five to six months."

Jain added that since 90% of the company’s projects were in north India, Parsvnath would focus on project execution and delivery in that region.

“However, this does not mean that we are moving away from our plan of becoming a pan-India player in the realty domain," he said.

According to its fourth quarter results statement, the company’s debt has declined to Rs1,417 crore from Rs1,660 crore a year earlier.

Net profit in the quarter ended March surged to Rs34.72 crore from Rs11.61 crore in the same period last fiscal. The company reported consolidated revenue of Rs360.95 crore, compared with Rs24.09 crore a year earlier.

Jain said Parsvnath plans to raise up to Rs400 crore from private equity firms this quarter to strengthen some existing projects.