Parsvnath Developers reports net profit of Rs 21.9 crore in Q2

Parsvnath Developers Limited (PDL), India’s leading real estate and infrastructure player, today reported consolidated net sales of Rs. 221.46 crores for the quarter ended September 30, 2008.

Consolidated Net profit for the second quarter stood at Rs. 21.90 crores and EBIDTA for Q2 FY09 stood at Rs.46.79 crores. The reason for decline is on account of pressure on sales, reduced turnover coupled with the burden of fixed overheads like increased interest cost by 6.02%, cost of construction by 14.99% and personnel cost by 2.91% has resulted in reduced margins.

Consolidated Net sales for the half year ended September 30, 2008 stood at Rs. 597.89 crores and Consolidated PAT is Rs. 95.87 Cr and EBIDTA for H1FY09 stood at 174.73.

 

Mr. Pradeep Jain, Chairman Parsvnath Developers Ltd. said “In the last one year, the inflationary trend has increased the input costs, thereby putting pressure on margins. Global slowdown and financial crisis in US and European countries has put pressure on liquidity in India as well. This has resulted in increase in interest cost further affecting all the industries including real estate sector.

“Recent measures by Reserve Bank of India like reduction in CRR by 350 basis points and Repo Rate cut by 150 basis points, SLR by 100 basis points to 24% and farm loan subsidy, have resulted in liquidity of more than Rs. 2,25,000 crores in the system. Going forward, the interest rates are likely to soften and liquidity is going to increase. I don’t foresee any slowdown of demand from the end users and confident of the strength of our operations and are poised towards expanding our presence in all the real estate verticals across India.” said Mr. Jain

Operational/ Business Highlights

 

Awarded Project from Delhi Metro Rail Corporation (DMRC) to construct Station Complex at Dhaula Kuan Metro Station, New Delhi. The contract value is approximately Rs. 29.50 crores and scheduled to be completed within a period of 15 months. This Metro Station will be an important station at “Airport Metro Express Line” from Connaught Place to Indira Gandhi International Airport.

Parsvnath Hotels Ltd. (PHL), a subsidiary of Parsvnath Developers Ltd. received 5 star category rating in Ahmedabad & Goa, 4 star rating in Lucknow and 3 star rating in Shirdi from Ministry of Tourism, Government of India for our Hotel projects.

Launched and performed Bhoomi Pujans on 5 Residential and 1 Commercial Project, comprising an area of 2.23 mn. sq. ft.

Memorandum of Agreement has been executed between Maharashtra Industrial Development Corporation (MIDC) and Parsvnath SEZ Ltd in relation to the Pharma SEZ at Nanded (Maharashtra) after receiving the possession of land admeasuring 370.50 acres for Nanded SEZ Project.

Ministry of Commerce has sanctioned the authorized operations in the Non-Processing Area at Gurgaon, Indore and Dehradun SEZs.

About Parsvnath Developers Limited:
Parsvnath Developers Limited (PDL) is one of India’s leading real estate developers with Pan-India presence across 51 cities and 18 states with presence across key verticals of real estate industry. The company has developable area of 211 million sq. ft. Presently having 81 mn. sq. ft. of area under construction out of which 42.54 mn. sq. ft. is already sold.

With a healthy track record of timely delivery of projects, the company carries on construction of the projects in-house, which adds to its capability of timely delivery and quality. The company is an organized and professionally managed company with over 1250 employees including a strong technical team.

PDL has a diversified portfolio of real estate development projects including Integrated Townships, Residential Projects and Commercial Complexes such as shopping malls, multiplexes, hotels, IT parks, B.O.T. Projects and SEZs. It has successfully completed 14 Residential, 12 Commercial and 7 DMRC Projects and is having a customer base of 24,949.