Parsvnath Q3 net plunges 95%

Written by Agencies | New Delhi | Updated: Feb 1 2009, 00:32am hrs
Realty firm Parsvnath Developers Ltd reported a sharp fall of 95.18 per cent in its consolidated net profit at Rs 5.42 crore in the quarter ended December 31, 2008, on account of declining sales and high interest cost.

The company had posted a net profit of Rs 112.57 crore in the third quarter of the previous fiscal, Parsvnath Developers said in a statement.

The total income also declined to Rs 98.01 crore from Rs 497.10 crore during the period under review, a dip of 80.28 per cent, it added.

"The reason for decline is on account of pressure on sales, reduced turnover, coupled with the burden of fixed overheads like increased interest cost and personnel cost," the statement said.

The total expenditure as a percentage of sales has gone up by 17 per cent, resulting in reduced margins, it said.

"Industries across sectors have witnessed a slowdown in the current macro-economic environment. The real estate sector is no exception and there has been a cascading negative impact on customers' sentiment," Parsvnath Developers Chairman Pradeep Jain said.

The negative sentiment amongst customers has forced the firms to either defer their investments or reduce the spending bracket given the current liquidity positions, he said.

During the nine months ended December last year, Parsvnath recorded a 68.10 per cent dip in its consolidated net profit at Rs 101.29 crore as against Rs 317.52 crore in the year-ago period.

The total income in the nine-month period last year stood at Rs 705.12 crore, while the same was at Rs 1,324.27 crore in the corresponding period in FY'08, down 46.75 per cent, the company said.