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Parsvnath Developers net profit up 45.23%

This article was posted on Jun 22, 2008 and is filed under Press Releases

Parsvnath Developers Limited (PDL), India’s leading real estate company with pan India presence having diversified portfolio has announced annual results for FY08. It recorded consolidated revenues of Rs 1837.12 crore for the year ended March 31, 2008, an increase of 19.72% from Rs 1534.50 crore in FY07. EBIDTA stood at Rs 680.25 crore, an increase of 54.04% as compared to Rs 441.60 crore in the corresponding period last fiscal. Net profit was at Rs 424.39 crore, up by 45.23% from Rs 292.21 crore. The EPS for FY08 stood at Rs 22.98 as against R 18.16.

For Q4 FY08, Parsvnath Developers recorded revenues of Rs 540.22 crore, an increase of 31.05% from Rs 412.23 crore in Q4 FY07. EBIDTA stood at Rs 177.79 crore, an increase of 17.44% from Rs 151.39 crore in the fourth quarter of FY07. The net profit for the period was Rs 108.88 crore.

Commenting on company’s performance, Mr. Pradeep Jain, Chairman, Parsvnath Developers Limited, said, “In a tough year for the global property market, Parsvnath Developers has recorded impressive financials – testament to the strong fundamentals that drive the company and PDL is poised for sustained growth in years ahead. Parsvnath’s long-term approach of developing lifestyle communities and forming strategic partnerships in key markets, positions the company in a strong position to achieve its vision of becoming one of the most valuable companies in the world.”

Parsvnath Developers revenues have improved indicating efficient execution of operations. Parsvnath has maintained a track record of delivering homes and lifestyle services in time with quality to its thousands of customers. The company has over the years built core competencies that will help translate its success story in a number of markets across the globe.

“Our strategy of spreading our operations in multiple geographies across India has resulted in increase of our land bank to 211.32 million sq. feet. with 77 million sq. ft under construction exclusive of SEZs. Parsvnath’s growth in diversified sectors reflects our commitment to become an integrated infrastructure developer and enhance value for our stakeholders – including consumers, shareholders and development partners”, added Mr. Jain.

Growth Momentum

* Acquired a plot situated at 27, Kasturba Gandhi Marg, Connaught Place for developing a luxury mall and state of the art offices.
* Saffron Group managed funds, Yatra Capital Limited & Saffron India Real Estate Fund I, invested Rs.186 crore for the development of BEST bus depot near the Bandra Kurla Complex, Mumbai.
* Announced JV with Royal Orchid Hotels Ltd. to develop 10 hotels planned over 3-5 years with an investment of INR 500 crore.
* Announced JV with Fortune Park Hotels Ltd. a wholly owned subsidiary of ITC Ltd, to manage 50 Hotels across the country over 3-5 years with an investment of INR 2500 crore

· Announced strategic tie up with Al-Hassan Group of Industries, Oman, Muscat to explore development opportunities in real estate projects in Muscat.

· Received LoI for IT Park at Gurgaon and acquired 370 acre notified Pharma SEZ project in Nanded, Maharashtra.

* Won the contract to construct Sai Ashram at Shirdi, Maharashtra and Footwear Design and Development Institute at Uttar Pradesh.
* Inked LoI’s with Government of Rajasthan & Madhya Pradesh for development of Jaipur, Ajmer & Indore SEZ.
* Notifications received for Dehradun and Gurgaon SEZ
* Incorporated subsidiary companies viz. “Parsvnath Retail Limited”, “PDL Assets Ltd.”, “Parsvnath Developers Pte. Ltd., Singapore” and “Parsvnath Hotels Ltd.”.
* Applied for Telecom License for 22 circles.
* Launched PRIDEASIA at Chandigarh – the first of its kind 123-acre luxurious township having a saleable area of 4.4 million sq.ft with a realizable value of Rs 4000 Crore
* Launched Parsvnath Exotica: Air-conditioned super luxury condominium in Ghaziabad
* Bagged DMRC Projects (Games Village complex for Shopping Mall & Metro Station and Netaji Subhash Place for Shopping Mall)
* Won the project from BEST to develop a plot of land at Mahim Bus Station, Mumbai.

Future Growth Drivers

For the economy growing at the rate of 8 to 8.5 percent per annum, the demand for real estate continues to be buoyant. Simultaneously, the rapid growth of the Indian economy has had a cascading effect on demand for commercial property to help meet the needs of business, such as modern offices, warehouses, hotels and retail shopping centres. Growth in commercial office space requirement is led by the burgeoning outsourcing and information technology (IT) industry and organized retail. For example, IT and ITES alone is estimated to require 150 million sq ft across urban India by 2010. Similarly, the organized retail industry is likely to require an additional 220 million sq ft by 2010. Parsvnath Developers is also scouting for retail partner, the sector which will grow at a pace of 45 to 50 percent per annum. As per the government sponsored report by ICRIER, with increasing standard of living and continuous economic growth, the organized retail, which is a mere 4 per cent of total retail sector, is poised to grow at a much faster pace at 45-50 per cent per annum. This is expected to quadruple its share in total retail trade to 16 per cent by 2011-12.

With on going promotion for 17 SEZs across 8 different domains that include IT, Bio-technology, automotive, food processing etc. the company is poised to increase the top line. Parsvnath has presence in all major verticals of real estate and have plans to have its foothold in telecom and retail sector. The company intends to substantially increase its land bank from existing 211 million square feet by the end of this fiscal. The group is also in discussion to explore possibilities of a foreign collaboration to set up various retail formats in India.

Parsvnath Developers Limited was the first real estate company to apply for telecom license for 22 circles. The application was rejected by MoT on certain technical grounds, however the company has filed a writ petition before the Honorable Delhi High Court and it is hopeful of succession in its petition. Parsvnath intends to offer convergence to its customers in the business portfolio. Having a pan-India presence it is rational for Parsvnath to enter the field of telecom (and eventually convergence) to serve the captive clients in Parsvnath projects and others around these.

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