Parsvnath Q1 net dips 19%, to raise Rs 2,000 cr

Real estate developer Parsvnath today reported 19.04% fall in its consolidated net profit for the quarter ended June 30 at Rs 25.76 crore as it did not launch any new project.

The company's board has approved to raise Rs 2,000 crore through issue of securities in the next 12 months.

Parsvnath had posted a net profit of Rs 31.82 crore in the corresponding period last year.

The consolidated total revenue during the first quarter also declined by 15.75% to Rs 216.57 crore from Rs 257.07 crore in the year-ago period.

"We are focusing on existing 53 projects comprising 79 million sq ft. We have not launched any new project during the last quarter. Therefore our consolidated sales and net profit have gone down," Parsvnath Chairman Pradeep Jain said.

He said to reduce the debt, the company will raise Rs 2,000 crore over the next one year through preferential issue to qualified institutional buyers.

The current debt of the company stands at about Rs 1,200 crore, he added.

The shares of the company today closed 0.56% down at Rs 44.70 apiece on the Bombay Stock Exchange.