DLF, the country’s largest real estate developer, recorded a 23 per cent increase in consolidated net profit for the first quarter of 2008-09. Net profit rose to Rs 1,864 crore from Rs 1,515 crore in the same period last year.
Total income, too, rose by 23 per cent to Rs 3,846 crore as compared with Rs 3,121 crore, higher than analyst expectations.
The company attributed the improved performance to higher realisations from residential projects sales. Rajiv Singh, vice-chairman, said, “We continue to maintain momentum in sales and execution. Sales of premium homes have been achieved at higher realisations and projects under execution have increased.”
“While we expect a cautious outlook for the year ahead, our new launches, strong backlog and proven execution allow us to remain optimistic on delivering double-digit growth in all facets of our business,” Singh added.
However, other real estate developers like Parsvnath and Ansal API have seen their profitability hit due to higher interest costs.
Parsvnath Developers said its standalone (the company did not provide comparable period consolidated figures) net profit fell by 16 per cent to Rs 71 crore in the first quarter, over Rs 84 crore same period last year. Total income rose over 4 per cent rise at Rs 372 crore from Rs 357 crore in the corresponding quarter last year.
The company attributed the decline in profitability to a more than four-fold rise in interest costs on borrowings, wages and overheads.
“Demand for property projects is strong and our accruals are improving constantly. We see a strong growth in coming quarters,” said Pradeep Jain, chairman, Parsvnath Developers.
Ansal API saw its net dip 40 per cent at Rs 19.40 crore in the first quarter owing to higher interest costs, as compared to Rs 32.59 crore in the same period last year. Revenues rose 12 per cent at Rs 175.22 crore, over Rs 156.60 crore in the year ago period.
However, construction companies posted much better numbers on the back of a strong order book. Mumbai-based Unity Infra projects registered a 44 per cent jump in net profit at Rs 15.6 crore in the first quarter as against Rs 10.9 crore last year. As on 30 July 2008, the company had an order book of Rs 2,963 crore, an increase of 23 per cent over the March quarter.
