Since the sales of residential realty are diminishing gradually these days, it is expected that the real estate companies will experience decline in the first quarter of financial year 2010-11. However, it cannot be ignored that the office market is picking up with the economy.
As per the data collected by leading stock brokerages show, it is expected that in the June quarter, the realty companies will undergo around a 20% growth in the net profit and a growth of 38-40% in net sales. As per the data of last year, there had been a net profit of over 80% which certainly brings the conclusion that market has experienced a decline in sales and profit.
A stock analyst with a Mumbai-based brokerage said that as compared to the June quarter of financial year 2010, the numbers look somewhat flat in this financial year.
For instance, the gross margins of DLF were 49% and had a growth of only 4%. Similarly, Unitech’s net profits had a growth of just 1%.