Developers witness rising profits with increasing sales
New Delhi- Many real estate developers across India have witnessed upward slope of their profit line in the quarter of October-December 2012.
There is a significant rise in property sales and customer enquiries for real estate projects in India which has resulted in increasing profits of developers. Real estate analysts observe that the sluggishness of the real estate in India is gaining momentum and this gives positive hope to the industry.
Top realtors, Unitech and DLF, after over two years, have reported growth in profits. The realty biggies said that they were increasing construction activity in the coming quarters. By selling its non-core assets, DLF had reduced its debt by Rs 1,870 crore.
The net debt of Unitech as on December 31, 2012 was Rs 5,421 crore, with the net debt to equity ratio at 0.45, which was one of the lowest in the industry.
Unitech said that the finance costs too had come down in the Oct-Dec 2012 quarter to Rs 8.4 crore from Rs 27 crore in the corresponding quarter of 2011.
Another real estate major Godrej Properties has also observed improvement in profits with an increase in sales from new projects. The sales numbers have improved mainly on the back of new projects which were launched during the quarter. In spite of flat sentiment in the overall real estate market, the projects launched by the Group received good response from buyers. The group had launched four projects across key markets of Mumbai, NCR and Bangalore.
Unitech has witnessed 52.4 percent hike in its net profit. It has earned a profit of Rs 84.17 crore in third quarter of 2012-2013 fiscal while it earned Rs 55.22 crore in the same quarter of 2011-2012 fiscal. Similarly Godrej Properties witnessed 23.9 percent, DLF witnessed 10.2 percent and Sobha Developers witnessed 7 percent profit.
The construction activity has been very active in the past few months. Even the worker strength at construction sites has grown high. Developers seem to be in a hurry to complete the pending projects and give possession to the buyers.
Mumbai alone has around 83,000 unsold residential units lying in the inventory by Dec 2012, says an estimate by Knight Frank. Owing to stagnating absorption levels, piling up inventories, rise in interest costs and decline in net profits during 2012, developers are keen to clear up their project inventories and clearing debts too.
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Construction activity, DLF, Godrej Properties, Property sales, Real estate analysts, Real Estate Developers, Real estate in India, Real estate projects in India, Realty Biggies, Sobha Developers, Top realtors, Unitech
[...] Developers witness rising profits with increasing sales [...]
[...] Developers witness rising profits with increasing sales [...]
[...] Developers witness rising profits with increasing sales [...]