Delhi-based real estate developer Parsvnath on Wednesday reported a close to 180 per cent increase in its net profit from the year ago period, confirming a recovery in the real estate sector.
The sector has been reeling under a credit crunch and slow sales since the economy hit a downturn last year.
Profit went up even as total income from sales declined on an annual basis. Parsvnath’s net profit stood at Rs 62 crore for the July to September quarter, the company informed the stock exchanges, up from Rs 21.9 crore it had registered during the year ago period.
Total revenue at Rs 200.7 crore declined 10 per cent from the Rs 225 crore it had registered during the corresponding period last year.
“With economy changing rapidly there was an immediate need to rework strategies to adapt to the changing economic scenario.
Designing projects as per customers’ demands and promoting the concept of affordable housing coupled with shifting focus from starting new projects to completing ongoing projects has helped Parsvnath Developers Limited perform well during the quarter,” Pradeep Jain, chairman, Parsvnath Ltd said in a statement.
Parsvnath said it sold 400-500 units, mostly residential, during the quarter and that its debt had come down to around Rs 1,500 crore, from Rs 1,600 crore.