Booming Sector: A Cover Story

Booming Real Estate:

With property boom spreading in all directions, real estate in India is touching new heights.

Flying high on the wings of booming real estate, property in India has become a dream for every potential investor looking forward to dig profits. Definitely, the first step on the way to investment is to study the current trends.

With the unaudited consolidated financial results for the Q2 FY11 (Second Quarter – Financial Year 2010-11) released for the real estate players such as DLF, Jaypee Infratech, Unitech, Ansal API, Raheja Developers, it seems real estate major DLF Group with a 62 year track record seems to have taken clear lead among all other players in this segment.

This quarter, revenues and profits of DLF group soared high in the real estate market with consolidated revenues increased to Rs 2,520 crores in Q2 from Rs 2,161 crores in the previous quarter. While, the consolidated revenues for H1 for this fiscal year was up by 32% to 4681 crores compared to the H1 in the previous year. The Earnings Per Share this quarter was Rs 2.46 and Rs 4.88 for the first half of this fiscal year. The Earnings Before Interest, Taxes, Depreciation & Amortization (EBITDA) was Rs 1,080 crores for Q2 and Rs 2,192 crores for H1. Rs 418 crore was grossed as Net Profit for last quarter and Rs 829 crores for the first half of this fiscal year.

Unitech recorded Year-Over-Year growth of 41.27% in the revenues for the first half of this fiscal year amounting to Rs 1518.9 crores and Net Profit being Rs 353.80 Crores up by 5.41% compared to previous fiscal. Earning per Share (EPS) for the half year stood at Rs 1.52.

The revenues for the quarter ending on 30th September 2010 were Rs. 674.92 crores and net profit for the same period was Rs. 173.76 crores. And, the Earning per Share (EPS) was Rs 2 along with Earnings Before Interest, Taxes, Depreciation & Amortization (EBITDA) being Rs 166.9 Crores.

aypee Infratech recorded growth of 2794.5 % in total revenue being Rs 711.48 crores and Net profit equal to Rs 411.67 crores with growth of 1971.8% in the second quarter of 2010-11. The Earnings Per Share this quarter was Rs 2.96 and Earnings Before Interest, Taxes, Depreciation & Amortization (EBITDA) was Rs 516.33 crores.

Realty firm ANSAL Properties and Infrastructure Ltd reported decline of 23% in its Net Profit to Rs 22.76 crores while, the revenues rose by 71% to Rs 330.05 crores compared to that of Q2 FY10. The Earnings Per Share this quarter was Rs 1.78 and Earnings Before Interest, Taxes, Depreciation & Amortization (EBITDA) was Rs 67.03 crores. The revenues also rose by 79% to 604.5 crore during the first half of this fiscal year and the net profit was Rs 61.55 crores up by 54%.

The above results surely do reflect stable macroeconomic environment and growing real estate sector. With the companies developing strategies and offerings of residential products and product mix the demand for this segment of products is increasing and shall yield good returns in the future.