Consumer sentiment improves as realty players’ profits rise
The Indian real estate surging with hopes and rise in net profit during the second quarter of the FY 2014-15. This was stated by most leading players in the industry.
As most companies experiencing a rise in net profit during the second quarter of this FY, a muted growth continues for the listed real estate players pan-India. Reduction of property prices and reconfiguration of units has resulted in gathering sales momentum, even after four consecutive slow launches.
Many companies are now looking to launch new projects, filling up unsold properties and tapping new avenues like the REIT. As per reports, Parsvnath Developers’ net profit was almost steady even though operational income rose significantly. This is because the expenditure rose sharply to Rs. 190.92 crore from Rs. 90.76 crore in the year ago period.
Pradeep Jain, Parsvnath Developers’ Chairman said that the company is planning to start construction activities at their KG Marg project located in Delhi. Along with that they would also take up leasing of finished projects. Another real estate giant-DLF has declared around nine per cent hike in their net profit at Rs. 109.06 crore for the second quarter of the current FY. They also said that they are looking forward for foraying into REITs next FY in order to monetise their commercial projects. The company has stated their upcoming plans for strategic partnerships with global institutions.
On the other hand, Oberoi Realty Ltd declared the launch of their two new big projects. Godrej Properties has also joined the bandwagon and reported a 36% hike in consolidated net profit at Rs. 46.6 crore. This is mainly on the back of lesser tax outflow and minority interest payment.
The MD and CEO of Godrej Properties, Pirojsha Godrej, said that their ongoing commercial projects having a booking value of Rs. 51 crore currently and a volume of 0.11million sq ft.
The Bangalore-based Sobha Developers has reported a steady 5% hike in its net profit at Rs. 59.5 crore. The company official positively announced that the government’s steps like initiation of REITs and FDI will boost the realyy sector, and most players are experiencing recovery.
Source: Businessline
