Mumbai: Muted growth continues for listed real estate players pan-India, with most companies reporting a marginal rise in net profit for the second quarter ended September, 2014. After almost four consecutive quarters of slow launches, activities such as reconfiguration of units and the reduction of total ticket price has resulted in improved sales for listed realty entities.
Companies aver that since consumer sentiments are rising, they are looking at launching new projects as also tapping opportunities in REIT (Real Estate Investment Trust). Despite a significant rise in operational income, Parsvnath Developers’ net profit was almost flat, as expenditure rose sharply during the second quarter of this fiscal to ?190.92 crore from ?90.76 crore in the year ago period.
“Input costs have also increased, therefore our bottom-line has not grown like the top-line,” Pradeep Jain, Parsvnath Developers Chairman said, adding that the company would start construction work at the KG Marg project in Delhi, and also undertake leasing of completed projects. DLF, which reported nine per cent rise in consolidated net profit at ?109.06 crore for the quarter ended September, on account of higher sales and lower expenses, said during an analyst presentation that it plans to launch REITs next year to monetise its commercial properties. The company is also looking for strategic and financial partnerships with global players.
Oberoi Realty Ltd said it was gearing to launch two large-scale projects. Godrej Properties also reported a 36 per cent increase in consolidated net profit at ?46.6 crore for the quarter ended September 30, mainly on the back of lower tax outgo and minority interest payment.
Godrej Properties’ MD and CEO, Pirojsha Godrej, said commercial projects witnessed booking value of ?51 crore and booking volume of 0.11million sq ft. Bangalore-based Sobha Developers reported a 5 per cent increase in its consolidated net profit at ?59.5 crore. Sobha Vice Chairman and Managing Director J C Sharma said there was a recovery in the real estate sector. He added that the government’s step to introduce REITs, and easing of FDI (foreign direct investment) rules would augur well for the realty sector.