Indian Real Estate Forum - www.indianrealestateforum.com - View Single Post - Parsvnath sees strong profit growth on cheap landbank

srikant · 22-05-07

Real-estate developer Parsvnath Developers Ltd. expects strong profit growth to continue in the next few quarters, as it sees value gains from projects built on land acquired cheap years ago.

The company posted a sharp jump in January-March net profit to 1.32 billion rupees, from 375 million a year earlier. Revenue rose 70 percent to 4.12 billion rupees.

The company's average land cost across segments is about 1,400 rupees per square foot, while sales were being done at around 2,500 rupees a square foot. Parsvnath continues to acquire land, despite high prices, but is now buying this directly from farmers, as this worked out 30-40 percent cheaper than buying from investors.

Parsvnath now plans to expand focus on domestic infrastructure projects to avail of government incentives, and is also looking at tie-ups to develop overseas projects.

Last month, the company won a 1.6-billion-rupee project to build a shopping mall and metro station near New Delhi.

The company is also considering development of residential, commercial and integrated township projects outside India, and is looking at overseas partners.

22-05-07	#1
srikant New Member Join Date: Oct 2006 Posts: 18 Thanks: 0 Thanked 0 Times in 0 Posts	Parsvnath sees strong profit growth on cheap landbank Real-estate developer Parsvnath Developers Ltd. expects strong profit growth to continue in the next few quarters, as it sees value gains from projects built on land acquired cheap years ago. The company posted a sharp jump in January-March net profit to 1.32 billion rupees, from 375 million a year earlier. Revenue rose 70 percent to 4.12 billion rupees. The company's average land cost across segments is about 1,400 rupees per square foot, while sales were being done at around 2,500 rupees a square foot. Parsvnath continues to acquire land, despite high prices, but is now buying this directly from farmers, as this worked out 30-40 percent cheaper than buying from investors. Parsvnath now plans to expand focus on domestic infrastructure projects to avail of government incentives, and is also looking at tie-ups to develop overseas projects. Last month, the company won a 1.6-billion-rupee project to build a shopping mall and metro station near New Delhi. The company is also considering development of residential, commercial and integrated township projects outside India, and is looking at overseas partners.