The Hindu Business Line : Parsvnath Q4 net down 18% on higher tax outgo

New Delhi, June 20 Real estate company Parsvnath Developers Ltd today posted almost 18 per cent drop in its net profit at Rs 108.8 crore for fourth quarter ended March 31, 2008, on account of a higher tax outgo. The company’s net profit stood at Rs 132.4 crore in the same quarter previous year.

Parsvnath’s revenue jumped 31 per cent to Rs 540.22 crore (Rs 412.23 crore) during fourth quarter of 2007-08 fiscal.

“Net profit has declined on account of the higher tax outgo, which has gone up to 28.23 per cent during Q4 of 2007-08 fiscal compared to 6.07 per cent in the corresponding period of previous fiscal,” Parsvnath Developers Chairman, Mr Pradeep Jain, said.

The withdrawal of tax sops under Sec 80IB – introduced to promote low-cost housing – for the developers has led to a decline in the company’s tax free income during the fourth quarter, he added.

On consolidated basis, the company’s net profit rose 45 per cent at Rs 424.39 crore in 2007-08 from Rs 292.21 crore in the previous fiscal; while revenue surged almost 20 per cent to Rs 1,837.12 crore (Rs 1,534.50 crore).

In a bid to expand business overseas, Parsvnath plans to develop realty and hospitality projects in Singapore and is currently in talks with a local partner for joint venture.

“We plan to have our operations in Singapore for which we have incorporated a subsidiary. The office would be operational next month,” he pointed out. The company is in talks with big local developers and funds, he said expressing hope that the company would be able to close some of the transactions within a few months.

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Parsvnath Q4 net down 18% on higher tax outgo