Realty firm Parsvnath Developers today reported a net loss of Rs 23 crore for the quarter ended March 31, 2012 as against a net profit of Rs 32 crore in the year-ago period on higher tax outgo.
The company's operating revenue declined marginally to Rs 219 crore in the fourth quarter of 2011-12 fiscal from Rs 238 crore in the corresponding period of previous year. Tax expense increased to Rs 78 crore in the fourth quarter of 2011-12 fiscal from Rs 13 crore in the year-ago period.
"Tax expenses of the current quarter and for the current year increased due to tax liability on account of reversal of deduction under section 80 IB of the Income Tax Act, 1961," the company said in a statement.
Parsvnath's net profit declined by% to Rs 69 crore in the 2011-12 fiscal as against Rs 169 crore in the previous year. The operating revenue fell slightly to Rs 905 crore in the last fiscal from Rs 909 crore in the previous year.
"Financial year 2011-12 has been very challenging for us, primarily due to the increasing cost of material, funding and then the unavailability of funds for real estate sector. This has affected our business adversely both in terms of top-line and the bottom-line of our results," Parsvnath Chairman Pradeep Jain said.
"We have also been affected adversely by the rollback of income tax exemption by the Central Government on affordable housing projects," he added. Parsvnath is currently working on 51 projects with a total area of 76 million square feet.