Parsvnath Developers jumps after strong Q3 numbers

Parsvnath Developers surged 7.05% to Rs 20.50 at 15:07 IST on BSE after consolidated net profit rose 16.66% to Rs 14 crore on 42.06% decline in operating revenue to Rs 146 crore in Q3 December 2014 over Q2 September 2014.

The Q3 result was announced on Saturday, 14 February 2015.

Meanwhile, the BSE Sensex was up 81.14 points or 0.28% at 29,176.07.

On BSE, so far 2.11 lakh shares were traded in the counter as against average daily volume of 3.02 lakh shares in the past one quarter.

The stock hit a high of Rs 20.80 and a low of Rs 19.75 so far during the day. The stock had hit a 52-week high of Rs 37.90 on 10 June 2014. The stock had hit a record low of Rs 14.30 on 7 January 2015.

The stock had underperformed the market over the past one month till 13 February 2015, advancing 4.36% compared with Sensex's 6.09% rise. The scrip had also underperformed the market in past one quarter, rising 1.06% as against Sensex's 4.13% rise.

The small-cap company has equity capital of Rs 217.59 crore. Face value per share is Rs 5.

Parsvnath Developers' consolidated EBITDA (earnings before interest, taxation, depreciation, and amortization) rose 16.39% to Rs 71 crore in Q3 December 2014 over Q2 September 2014. EBITDA margin jumped to 49% in Q3 December 2014, from 24% in Q2 September 2014.

Commenting on the company's Q3 performance and future outlook Mr. Pradeep Jain, Chairman, Parsvnath Group said that in the given circumstances when the entire industry is suffering sales slump, the company has fared comparatively well. Jain further said that Parsvnath Developers and Chandigarh Housing Board have mutually agreed to accept arbitration award in a dispute over development of the Prideasia project. Accordingly, Parsvnath Developers received a sum of about Rs 572 crore towards the award from Chandigarh Housing Board, upon surrendering of the project land by the company to them. Jain said that due to a computational error in the award, the awarded amount is deficient by approximately Rs 146 crore. Consequently, the company already made an application to the Sole Arbitrator for correction of computational error and immediately on revision of award from the Sole Arbitrator, the company will be entitled to receive a further amount of approximately Rs 146 crore only from Chandigarh Housing Board, Jain said in a statement.

Parsvnath Group is into real estate industry. It is present in all verticals and has completed 55 projects.

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