It seems that Indian real estate sector is
going through a tough phase. The government has been very strict in granting
clearances and imposing regulations. Sales have declines in metro cities like Mumbai;
with all these restrictions it has become difficult to make investments.
India’s biggest real estate developers, DLF has seen a decline of 38.6 per cent
in their profits in the march 2012 end. Last year DLF ltd reported a profit of
Rs 344.54 crore and this year it has dropped down to Rs 211.7 crore. The main
reason for loss is margin compression and high interest costs.
The interest
cost has increased by 32.5 per cent to Rs 604 crore , on the other hand income
has dropped by 30 per cent to 131 crore according to a brokering report. After losing
only Rs 33 crore in the fourth quarter, an astounding debt of Rs 22,725 crore
has been registered in DLF ltd’s accounting book. The firm is now looking to
sell off some special economic zone property and non-crore assets, but it shows
it that they have not got any success in this attempt. Along with DLF,
Parsavnath developers have registered a loss of Rs crore in fourth quarter.
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