Indian Real estate companies post profits in Q1
The real estate sector has recorded commendable profit margins, evident from the profits posted by major real estate developing giants in the first quarter.
The first quarter was beneficial for almost all real estate developers. Parsvnath Developers posted a record net profit of 179.56 per cent at Rs 102 crore against its previous Rs 36.55 crore.
The growth in the first quarter of current fiscal was 66.44 per cent over
the first quarter of last fiscal as the capital rose from Rs 249.01 crore
to Rs 414.56 crore.
Parsvnath Developers lapped up some major projects and have plans to launch
a few more. By the middle of this month, they are set to launch their integrated
township project in Chandigarh.
Riding high on its profit margin, they now
plan to diversify their interests by investing in real estate development
in countries like UK, Singapore, Bahrain, Mauritius, Muscat and the United
Arab Emirates. Furthering their plans, they have already tied up with
Al Hassan Group of Companies, Oman, Muscat.
Unitech on the other hand has been registering a consistent growth of
8.6 per cent for the last four years. Its net profit for the first quarter
was Rs 365.57 crore and net sales of Rs 865.59 crore.
Unitech has lined up for a joint venture with Salim Group, Indonesia,
for developing an expressway and a bridge over the Hooghly in West Bengal.
Its individual projects include airport development in India.
In talks
with airline operators, it plans to grab the airport overhauling projects
in the current fiscal.
Ansal Properties and Infrastructure Ltd. (Ansal API) reported a net profit
of 16 per cent. Its consolidated capital was Rs 184.05 crore.
The net
profit of Rs. 32.59 crore was higher than the Rs.28.22 crore in the first
quarter of the last fiscal year.
The good performance of developers reflected in the EBITDA (earning before
interest, tax, depreciation, and amortization) scale also.
Used to assess
a company’s operational profitability before non-operating expenses and non-cash charges, it is a good measure to compare profitability between the companies and industries. EBITDA Profit for Parsvnath Developers was 162.31 per cent while for Ansal API, it was 15 per cent.
