Garnet Construction Q1 FY08 Net jumps 98%

MUMBAI, July 24, 2007: Garnet Construction Ltd. (BSE 526727), a decade-old professionally managed real estate property developer, registered a 98% increase in its Net Profit amounting to Rs. 30.65 million for the quarter ended June 30, 2007 as compared to Rs. 15.42 million posted during the corresponding quarter in fiscal 2007. During Q1 FY08, the Net Sales shot up by 198% to Rs. 180.56 million from Rs. 6.06 million in Q1 FY07. The Earning per Share (EPS) for Q1 FY08 shot up 36% to Rs. 3.88 from Rs. 2.85. The Reserves (excluding Revaluation Reserves) rose upto Rs. 108.08 million as compared to Rs. 28.20 million during the corresponding quarter in the previous fiscal.

Mr. Arun Kumar Kedia, Director, Garnet Construction Ltd., said, "Through our global marketing network and the exclusive alliance with the Dubai-based Sternon Group, we have managed to increase sales and boost our growth prospects in this quarter. The Lonavla project comprising 125 bungalows is completely sold off. The 400-acre Khopoli mega-residential township project: 'Magic Hills' is on-stream and we have already sold 50 bungalows belonging to the first Phase."

The Company bought over 400 acres of land at Khopoli, near Panvel to develop an entire township comprising project-apartments, row houses, independent bungalows, malls, Information Technology Park and educational facilities. The Magic Hills project is valued at Rs. 12 billion with the residential portion (250 acres) accounting for Rs. 9 billion.

Talking about the future strategy, Mr. Kedia added, "The sales of the commercial project at Goregaon and the logistics unit at Khopoli encompassing 1 million sq. ft. will reflect in the Q3 FY08 figures. We are also in the process of acquiring new properties in and around the Mumbai-Pune Expressway."

Garnet Construction has entered into a 50:50 joint venture (JV) with the Dubai-based Sternon Group to develop properties in Europe. Under the JV, it will develop properties and Sternon Group, which has offices in Dubai, the U.K., the U.S. and India, will market the projects globally. Initially, both the companies are planning to invest $ 5 million each and scale up investment according to project requirements.

About Garnet Construction Limited: Garnet Construction Limited is a decade-old professionally managed real estate property developer having a proven track record of property development and client satisfaction. With its extensive knowledge of land development and allied activities, it has emerged as a turnkey solutions provider in construction. It has already developed over 400 acres of land for diverse projects including industrial, commercial and residential. The Company has got a total land bank of more than 450 acres. It has the extensive experience and expertise to execute high value and time-sensitive projects.