Parsvnath Developers FY11 net up marginally at Rs 141 cr

Financial Highlights:

For FY11 (all comparisons with FY10)

• EBIDTA at Rs 324 crore, up by 9% from Rs 298 crore
• Consolidated PAT at Rs. 141 crore, an increase of 4% from Rs. 135 crore
• EPS at Rs 3.40, compared to Rs 3.52
• Consolidated Revenue at Rs 942 crore as against Rs 988 crore

Q4FY11

• Consolidated Revenue at Rs 255 crore
• EBIDTA at Rs 69 crore
• Consolidated PAT at Rs 28 crore
• EPS at Rs 0.65

Parsvnath Developers Limited (PDL), one of India’s largest real estate company, recorded consolidated revenues of Rs 942 crore for the year ended 31st March 2011. EBIDTA was at Rs 324 crore; this reflects an increase of 9% from Rs 298 crore. Net profit was at Rs 141 crore versus Rs 135 crore in FY10, registering a growth of 4%. The EPS for the year stood at Rs 3.40. The PAT margin increased from 14.77% to 18.20% during the year.

For fourth quarter of FY11, PDL registered consolidated revenue of Rs 255 crore, EBIDTA stood at Rs 69 crore, while net profit for the quarter stood at Rs 28 crore. The EPS was at Rs 0.65. The PAT margin for the quarter also increased from 10.33% to 12.55% as compared to corresponding quarter of last year.

Commenting on the earnings, Mr. Pradeep Jain, Chairman, Parsvnath Developers Limited, said,

“While we have come out of the days of economic slowdown and have seen positive sentiments amongst buyers still the kind of demand that we have anticipated at the start of the year is still to come because of 7 times rate hikes by central bank in the last fiscal and the environment is very volatile and inflationary and the consistent high rate of inflation has impacted our bottom-line. I am very pleased to share with you that we have progressed well on all our key business parameters that we have set and will continue to put thrust on faster execution, timely deliveries and maximising cash flows. We have strategically gone for bidding for new land and are committed to develop the same within stipulated time.

During the coming quarters I feel that prices will move northward with upward bias of 10 to 15 %. The rationale of price increase is because of increase in input costs have increased by as much as 10% in cement and 23% in steel, sanction costs have gone up as well as cost of funds have also increased, while I am confident that there is no concern on demand side, while the mortgage rates are also increasing on quarter-on-quarter basis under the central bank policy but impact of interest and price rise of property is much higher than price to individual buyer as such the buyer will not defer his buying decision. Towards the commercial sector, after the global slowdown is over, all corporate and retailers are expanding and the supply of commercial space in centrally located place is not there as such we are seeing a trend of increase in rentals and sell prices in commercial segments as well. We have remained bullish even in a challenging business environment and our focus will continue to remain on the execution of our projects. To sum up, I am confident that the coming quarters will be more robust and we will have improved margins”.

More information about the company is available on www.parsvnath.com