With buyers and investors maintaining some distance from
the real-estate sector, large developers having operations in the state have suffered a huge cut in their earnings.
Developers listed on the Bombay Stock Exchange (BSE) like Godrej Properties, Radhe Developers and Ganesh Housing have seen their net profit decline by as much as 300% in the three months since January.
One of the promising developers in Ahmedabad, Ganesh Housing Corporation Ltd, saw its net profit (standalone) for the fourth quarter of 2011-12 plummet to Rs 7.2 crore, which is three times less than the Rs 24.9-crore profit it posted during the corresponding period of the last fiscal.
Developers like Ganesh Housing, which are involved in constructing luxurious residential projects, have been hit the hardest in the last six months.
The percentage of “pledged” shares of the promoter and promoter group of the company, having operations in Gujarat and Rajasthan, rose to 88% in the fourth quarter of the recently ended fiscal. This percentage was at 64 during the same period in 2010-11.
“The financial position of the company has turned so weak that it can be easily taken over,” said a real-estate expert after looking at the financial results of the company that was posted on the BSE a couple of days ago.
Similarly, one of the largest operators in the Ahmedabad real-estate market — Godrej Properties — saw its net profit decline by 34% for the fourth quarter of 2011-12. Between January and March, the company’s profit declined to Rs 39.8 crore from Rs 60 crore clocked during the corresponding period in 2010-11.
… contd.
<!–
gapi.plusone.go(“plusone2”);
–>
Previous Story
Clash over land dispute leaves three dead
Reader’s Comments | Post a comment
Be the first to comment.