Mahindra Lifespaces clocks 39% rise in Q1 net

Mahindra and Mahindra's real estate development arm, Mahindra Lifespaces, clocked a 39 per cent rise in net profit to Rs 14.48 crore in Q1 of FY11, driven largely by good performance in the residential segment.

The company's net profit in the corresponding period of the previous year was Rs 10.42 crore. The operating income of the company also registered a 44 per cent increase, rising to Rs 67.93 crore as compared to Rs 47.26 crore in the year-ago period.

"Growth in the commercial real estate has been subdued over the last year, but we have concentrated on residential real estate to compensate for it, which has led us to good numbers," company Chairman Arun Nanda said while addressing shareholders at the firm's annual general meeting here.

The consolidated sales of residential units stood at Rs 92 crore in the April-June quarter, against Rs 21 crore in the year-ago period.

To further consolidate its hold on the residential market, the company had recently bought a 10-acre land parcel in Hyderabad, Nanda said.

On the integrated townships front -- under which the company develops a mix of commercial and residential property -- the company has begun the acquisition process for a 3,000-acre world city near Pune, and a 1,000-acre world city near the Chennai port to focus on manufacturing units, Nanda said.