Realty majors’ Q3 net profit takes a nosedive
The Financial Express, February 1, 2008, page 1
feBureau
Hit hard by a major slump in commercial and housing property demand, country’s three real estate majors on Saturday reported a substantial decline in their third quarter performances.
The country’s largest real estate developer DLF Ltd has said its third quarter net profit dipped to Rs 670.79 crore, less than one-third of the same in the year-ago period.
It had a net profit of Rs 2,138.87 crore in the quarter ended December 31, 2007, DLF said in a filing to the National Stock Exchange.
The company’s consolidated net sales also plunged by more than half to Rs 1,366.67 crore in the quarter ended December 31, 2008, from Rs 3,598.42 crore in the year-ago period.
On a stand-alone basis, the net profit fell to Rs 178.06 crore in the latest quarter, from Rs 605.84 crore in the year-ago quarter.
The stand-alone net sales fell to Rs 424.41 crore in the quarter ended December 31, 2008, from Rs 1,676.51 crore in the three-month period ended December 31, 2007.
India’s second largest realty company, the cash-strapped Unitech Ltd, has registered a decline of 75% in its net profit at Rs 136.05 crore during the quarter ended December 31, 2008. The company had posted profit of Rs 525.78 crore during the corresponding quarter in 2007.
On a consolidated basis the total income of the company during the quarter was Rs 507 crore, down 56.48% against Rs 1165.11 crore in the corresponding period of last financial year.
The downturn in the realty sector, which is the worst hit-due to the global economic meltdown was apparent when the country’s twelfth largest real estate firm, Parsvnath Developers Ltd, also reported a decline of 95.18% in its consolidated net profit at Rs 5.42 crore as against last year’s Rs 112.57 crore during the same quarter.
Parsvnath’s total income during the period declined to Rs 98.01 crore, down 80.28% from last year’s Rs 497.10 crore.
Both firms attributed the decline in profits to the downturn in the financial environment.
Unitech attributed the lower sales to the change in the macroeconomic environment. “Last quarter witnessed a dramatic change in the macroeconomic environment. It was characterised by tight liquidity conditions and significant demand slowdown across segments. Consumer sentiment continues to be weak”, Unitech MD Sanjay Chandra said.
The company’s main thrust during the quarter was on reviewing projects with a view to according higher priority to pre-committed projects and on generating additional cash flows through asset sales and infusion of private equity at project level, he added.
On its part, Pradeep Jain, chairman, Parsvnath Developers said, “Industries across sectors have witnessed a slowdown in the current macro-economic environment. The real estate sector is no exception and there has been a cascading negative impact on customers’ sentiment.
This negative sentiment amongst customers has forced them to either defer their investment or reduce the investment bracket given the current liquidity positions”.
For the nine month period of the current financial year, Unitech recorded a 29.45 % dip in its net profit at Rs 918.28 crore as against Rs 1,301.58 crore in the year-ago period. The total income stood at Rs 2,562.82 crore, down 18.10%, against Rs 3,129.04 crore in the corresponding period in the last financial year.
Realty bites
• DLF’s third quarter net profit dips to Rs 670.79 crore, less than one-third of the same in the year-ago period.
• Unitech Ltd has registered a decline of 75% in its net profit at Rs 136.05 crore during the quarter ended December 31, 2008.
• Parsvnath Developers Ltd has reported a decline of 95.18% in its consolidated net profit at Rs 5.42 crore.
The Financial Express, February 1, 2008, page 1
feBureau
Hit hard by a major slump in commercial and housing property demand, country’s three real estate majors on Saturday reported a substantial decline in their third quarter performances.
The country’s largest real estate developer DLF Ltd has said its third quarter net profit dipped to Rs 670.79 crore, less than one-third of the same in the year-ago period.
It had a net profit of Rs 2,138.87 crore in the quarter ended December 31, 2007, DLF said in a filing to the National Stock Exchange.
The company’s consolidated net sales also plunged by more than half to Rs 1,366.67 crore in the quarter ended December 31, 2008, from Rs 3,598.42 crore in the year-ago period.
On a stand-alone basis, the net profit fell to Rs 178.06 crore in the latest quarter, from Rs 605.84 crore in the year-ago quarter.
The stand-alone net sales fell to Rs 424.41 crore in the quarter ended December 31, 2008, from Rs 1,676.51 crore in the three-month period ended December 31, 2007.
India’s second largest realty company, the cash-strapped Unitech Ltd, has registered a decline of 75% in its net profit at Rs 136.05 crore during the quarter ended December 31, 2008. The company had posted profit of Rs 525.78 crore during the corresponding quarter in 2007.
On a consolidated basis the total income of the company during the quarter was Rs 507 crore, down 56.48% against Rs 1165.11 crore in the corresponding period of last financial year.
The downturn in the realty sector, which is the worst hit-due to the global economic meltdown was apparent when the country’s twelfth largest real estate firm, Parsvnath Developers Ltd, also reported a decline of 95.18% in its consolidated net profit at Rs 5.42 crore as against last year’s Rs 112.57 crore during the same quarter.
Parsvnath’s total income during the period declined to Rs 98.01 crore, down 80.28% from last year’s Rs 497.10 crore.
Both firms attributed the decline in profits to the downturn in the financial environment.
Unitech attributed the lower sales to the change in the macroeconomic environment. “Last quarter witnessed a dramatic change in the macroeconomic environment. It was characterised by tight liquidity conditions and significant demand slowdown across segments. Consumer sentiment continues to be weak”, Unitech MD Sanjay Chandra said.
The company’s main thrust during the quarter was on reviewing projects with a view to according higher priority to pre-committed projects and on generating additional cash flows through asset sales and infusion of private equity at project level, he added.
On its part, Pradeep Jain, chairman, Parsvnath Developers said, “Industries across sectors have witnessed a slowdown in the current macro-economic environment. The real estate sector is no exception and there has been a cascading negative impact on customers’ sentiment.
This negative sentiment amongst customers has forced them to either defer their investment or reduce the investment bracket given the current liquidity positions”.
For the nine month period of the current financial year, Unitech recorded a 29.45 % dip in its net profit at Rs 918.28 crore as against Rs 1,301.58 crore in the year-ago period. The total income stood at Rs 2,562.82 crore, down 18.10%, against Rs 3,129.04 crore in the corresponding period in the last financial year.
Realty bites
• DLF’s third quarter net profit dips to Rs 670.79 crore, less than one-third of the same in the year-ago period.
• Unitech Ltd has registered a decline of 75% in its net profit at Rs 136.05 crore during the quarter ended December 31, 2008.
• Parsvnath Developers Ltd has reported a decline of 95.18% in its consolidated net profit at Rs 5.42 crore.
Posts
No comments:
Post a Comment