The first quarter results of real estate major Housing Development and Infrastructure Ltd indicate a recovery in the domestic realty sector. Not only volumes, but also prices are now rising.
Though both sales as well as profit margins fell during the June quarter, the decline was less than expected and pace is also slackening. Revenues fell by 47% year-on-year to Rs 318.61 crore from Rs 601 crore in the same quarter previous year.
With more than three-fourth of its revenue coming from low yielding land development and SRS (slum rehabilitation scheme) projects, the margins have taken a major hit. Operating margin also fell from 58% to about 43%. Net profit stood at Rs 107.47 crore as against Rs 317.9 crore reported in the corresponding quarter of previous year.
Times of India