|
| Dilution rescues Parsvnath profits in Q2 |
| BS Reporter / New Delhi Oct 15, 2009, 00:43 IST |
|
Delhi-based real estate company Parsvnath Developers Ltd (PDL) reported a consolidated net profit of Rs 61 crore for the July-September quarter, almost three times the Rs 22 crore net profit in the same quarter last year, on the back of “other income” resulting from a stake dilution.
PDL offloaded 4 per cent equity in one of its subsidiaries, Parsvnath Landmark Developers Pvt Ltd (PLDPL), to private equity firm Red Ford Capital for Rs 25 crore. However, income from operations during the quarter, at Rs 173 crore, was 22 per cent lower than the Rs 221 crore recorded in the same period last year.
“If we compare with a year back, the market is still not that stable. However, the market has improved a lot and consumer sentiment has improved,” said the company’s chairman, Pradeep Jain.
 Projecting strong performance in the coming quarters, he said topline and bottomline in the current year will certainly be better than last year. The company is also confident of closing two more private equity deals in its subsidiaries, as it did with PLDPL, during the current quarter.
Red Ford Capital had purchased 18 per cent stake in PLDPL in June 2009 for Rs 90 crore. With the additional four per cent stake sale by PDL, Red Ford Capital now owns 22 per cent in the SPV.
“There are no downsides to stake sales in SPVs. In fact, our valuations improve,” said Jain.
Parsvnath has “developable” area of 193 million sq ft and has started development and construction of 57 projects spread over 80 million sq ft. It will now be concentrating on completing some 30-odd projects spread across 42 million sq ft.
|
|
|
|
|
|
|
|
|
|
 Read Business news in |  |
|
|
|
|
|
|
Advertisements |
|
|
|
|
|
|
|
|
|
|
Content Guide
