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Parsvnath to invest Rs 5,000 cr on ongoing realty projects
Source: Feb 14, 2011

Realty firm Parsvnath Developers today said it will invest nearly Rs 5,000 crore over the next three years to complete its existing projects and expects a sales realization of over Rs 14,000 crore.

The company, which today reported a 26 per cent rise in consolidated net profit at Rs 31.37 crore for third quarter of this fiscal, plans to cut its debt to Rs 500-700 crore in 2011 calendar year from Rs 1,141 crore as on December 31, 2010.

"We are currently focussing on execution and delivery of 54 projects with a total salable area of 80 million sq ft," Parsvnath Developers Chairman Pradesh Jain told reporters.

Out of 80 million sq ft area, the company has sold 42.5 million sq ft and targets to sell the remaining area in the next 24-36 months.

"We expect a sales realization of Rs 14,280 crore in the next 36 months, out of which Rs 4,000 crore is outstanding amount from Pre-sold area," Jain said.

When asked about the investment, he said the company would require another Rs 4,700 crore on completion of 80 million sq ft.

Parsvnath today reported 26 per cent rise in consolidated net profit for the third quarter at Rs 31.37 crore against Rs 24.91 crore in the year-ago period. This was mainly due to fall in tax expenses to Rs 17.85 crore from Rs 29.37 crore in the review period.

The total income during the December quarter, however, fell by 26.51 per cent to Rs 224.36 crore from Rs 305.29 crore in the year-ago period.

Jain attributed the decline in revenue to the company's strategy of focusing on existing projects and not launching new projects.

On debt, he said the company would reduce the debt to Rs 500-700 crore by the end of 2011.

Parsvnath has a land bank of 193 million sq ft, which is spread over 44 cities in 15 states. Jain said the company might consider selling its projects in South India if there was a good opportunity.

Tag: Real estate in India, Indian properties, Property in India, Apartments in India
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