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New Delhi, Nov. 1 Real estate player Parsvnath Developers Ltd has posted a stand alone net profit of Rs 22.8 crore for the second quarter ended September 30, 2008 compared with Rs 100.7 crore during the corresponding quarter last year.

According to the information given by the company to the BSE, total income decreased from Rs 407.7 crore for the quarter ended September 30, 2007 to Rs 221.8 crore for the second quarter this year.

On a consolidated basis the group posted a net profit of Rs 21.9 crore against Rs 102.7 crore in the same period last year. Total income decreased from Rs 412.7 crore to Rs 226.3 crore.

“The reason for decline is on account of pressure on sales, reduced turnover coupled with the burden of fixed overheads like increased interest cost by 6.02 per cent, cost of construction by 14.99 per cent and personnel cost by 2.91 per cent has resulted in reduced margins,” said a press release.

Mr Pradeep Jain, Chairman, Parsvnath Developers Ltd, said “In the last one year, inflationary trend has increased input costs, thereby putting pressure on margins. Global slowdown and financial crisis in US and European countries has put pressure on liquidity in India as well. This has resulted in increase in interest cost further affecting all the industries including real estate sector.”

He said the measures by RBI would infuse more liquidity into the system and going forward interest rates were likely to soften.

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