Parsvnath to infuse Rs 7-k cr in ongoing projects in 5 years

Parsvnath to infuse Rs 7-k cr in ongoing projects in 5 years
Financial Express, February 2, 2010, Page 4

fe Bureaus, New Delhi

Delhi-based realty firm Parsvnath Developers will invest Rs 7,000 crore over the next five years towards construction of its ongoing projects. The company also plans to raise up to Rs 300 crore through private equity by March-end. It would be done by diluting stakes to private equity firms at the project level. The company has begun talks with the private funds to this effect.

“We are currently developing 57 projects, with over 80 million sq ft of area, across the country. Of this, we have put 40 million sq ft on fast track to deliver within the next two years,” Parsvnath chairman Pradeep Jain said. Of the total area under construction, about 80% is housing and the rest commercial, he added. Parsvnath is expecting revenue to the tune of Rs 17,000 crore from these 57 projects.

Asked how the company plans to fund its projects, Jain said, “Mostly internal accruals and money coming from sales. We are not willing to increase our debt. In the next 2-3 fiscal, we foresee a debt free company.”

Meanwhile on Sunday, Parsvnath reported a robust jump of over four-fold in consolidated net profit at Rs 24.90 crore for third quarter ended December 31 against Rs 5.42 crore during the same period of the previous fiscal. Consolidated total revenue of the firm rose to Rs 305.28 crore during the third quarter of current financial year from Rs 92.77 crore of the corresponding period last fiscal.

The company’s gross debt as on December 31, 2009, stands at Rs 1,585 crore and it plans to bring it down by about Rs 100 crore in this quarter.