Property developers such as Unitech, Puravankara Projects and IVRCL Infrastructure, which announced results today, registered an average net profit growth of 23 per cent, mostly in line with analyst expectations.
Unitech, the country's largest listed developer, posted a 15.7 per cent growth in net profit in the first quater of current financial year, beating analyst expectations. It was mainly due to higher realisations company made in mid-income segment housing, in the range of Rs 40-45 lakh apartments. The company posted a net profit of Rs 423.31 crore in the first quarter of financial year 2009 as compared to Rs 365.67 crore in the corresponding quarter last year.
The company's total income went up 17.19 per cent to Rs 1054.37 in the first quarter of FY 2009 as compared to Rs 899.67 crore it posted in the corresponding quarter last year. The sales growth was lower than analyst expectations, which was around 37 per cent.
Bangalore-based Puravankara Projects, posted a 40.62 per cent growth in the net for the first quarter of FY09 as compared to corresponding quarter last year, due to higher realisations from sale of apartments and income tax exemptions on its residential projects under section 80 IB, which talks about exemptions in certain real estate projects. The company has sold 1000 apartments in the first quarter of FY09.
The company posted a net profit of Rs 61.89 crore for the first quarter of financial year 2009 as compared to Rs 44.01 crore recorded in the corresponding quarter last year. The company's revenues went up by 30.88 per cent at Rs 157.58 crore in the Q1 of FY 2009 as compared to Rs 120.40 crore it posted in the Q1 of previous financial year.
Ravi Purvankara, chairman and managing director, said "We have maintained our profit margins this quarter at 39 per cent in the face of cost and price pressures. Our financial position and strong liquidity, together with our ability to control costs, have placed us in a firm position."
Hyderabad-based IVRCL Infrastructure posted a 15 per cent rise in the net for the first quarter of FY09 as compared to first quarter of FY08, due to higher realisation from infrastructure projects. The company's net increased to Rs 43.50 crore in the Q1 of FY09 from Rs 37.87 crore the company posted in first quarter of previous year. The company's total sales increased 38 per cent at Rs 948.34 crore for the first quarter of current financial year as compared to Rs 688 crore it posted in the corresponding quarter of last financial year.
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The group's real estate firm, IVR Prime Urban Developers, posted a 263 per cent increase in net profit at Rs 5.44 crore in the first quarter of current financial year, as against Rs 1.5 crore it posted in the first quarter of last financial year, while the turnover went up 55 per cent at Rs 32.25 crore in the first quarter of FY09 from Rs 20.84 crore it posted in the first quarter of last financial year.
"The group has been growing between 40 per cent and 45 per cent since the last nine years and the performance during the quarter was in line with that,'' Balaram Reddy, chief financial officer of the group, said.
BSE Realty Index went up 5.09 per cent today. Unitech went up 3.41 per cent, IVRCL went up 2.13 per cent and Puravankara went up by 11.20 per cent.