Parsvanath Developers Q2 net down 41%

Hit by higher cost of construction and development, realty major Parsvanath Developers Ltd today posted 41.55% decline in net profit for the second quarter ended September 30, 2011 at Rs 29.09 crore as compared to the same period last fiscal.

During the same period last fiscal, the company's net profit was at Rs 49.77 crore.

The total revenue of the firm increased to Rs 254.92 crore during the second quarter this fiscal as against Rs 197.96 crore in the year-ago period, up 28.77%%, the company said.

"Though the demand is very strong, input cost is increasing and in the last few quarters we are concentrating more on execution of existing projects rather than launching new ones," Parsvanath Developers Ltd Chairman Pradeep Jain told reporters here.

During the second quarter this fiscal, the company said cost of construction and development rose to Rs 151.77 crore from Rs 71.44 crore in the same period last fiscal.

Jain said the developer had increased prices of flats by 5-20% in the last six months.

He also said the company has tied up with Choice Hotels International to develop 20-25 hotels across India.