Omaxe Q3 net profit down 14%

Realty firm Omaxe today reported 14% decline in consolidated net profit at Rs 19.31 crore for the third quarter ended December 31, against Rs 22.57 crore in the year-ago period because of lower margins.

Its consolidated income grew 30% at Rs 451.81 crore, as against Rs 347.97 crore during Q3, 2010-11.

"The figures are reflective of some pressure on margins on account of high interest rates. However, operational performance has been good and we have recorded 30% increase in sales over previous quarter," Omaxe Ltd Chairman and Managing Director Rohtas Goel said in a statement.

The demand continues to remain high, especially in cities such as Lucknow, Mullanpur (New Chandigarh) and Indore, which remains our strategic market, he added.

"With the cut in CRR, RBI has signalled a shift in its policy stand. The interest rates are expected to taper off as inflation loses steam in the coming months.

"This will give the much needed boost to the real estate sector and the outlook for coming quarters points towards an encouraging trend," Goel said.

Omaxe is currently working on 42 real estate projects - 18 integrated townships including two hi-tech townships, 14 group housing projects, 8 shopping malls and commercial complexes, and two hotel projects.