Ackruti City's Q4 results worst amongst listed realty companies:
No Sales!Mumbai-based real estate developer Ackruti City’s fourth quarter results were the worst amongst the pack of listed realty companies.
Due to negative sales, its net profit for the quarter ended March ‘09 took a big hit. Despite a slight improvement in the sentiment for the sector, Ackruti could not register any sales.
In fact, it had to write off close to Rs 105 crore worth of FSI sold in the previous year.
The company reported a 300% drop in net sales in its fourth quarter and its net profit turned red.
It fell to a negative Rs 123 crore from Rs 22 crore earned in the December ‘08 quarter.
10.5% decline in profit after tax:Despite a dismal quarterly performance, the annual numbers do not look as bad.
For the full year ended March ‘09, the company reported a 1% decrease in its topline to close the year at Rs 437.2 crore as against Rs 440 crore in the year ending March ‘08. This led to a 10.5% decline in its profit after tax (PAT).
Employee cost almost doubled..!?:On a year-on-year (y-o-y ) basis its employee cost almost doubled from Rs 7 crore to Rs 15 crore.
Due to a high leverage position, Ackruti’s interest cost also jumped multi-fold. It rose from Rs 61 crore in the year ended March ‘08 to Rs 140 crore in the current year.
Ackruti Countrywoods - last hope?This gloomy financial performance forced the company to tweak its sales strategy.
Realising the growth potential in the affordable housing segment, the company has launched new projects in Mumbai and Pune.
Though margins will be lower in this segment, large volumes would help the company.
A lower interest rate and affordable prices would thus help Ackruti revive its sales numbers.
The Economic Times
1) Akruti Countrywoods, on Katraj Kondhwa link road, offers property rate of Rs. 2,250 per sq.ft. for the first 50 bookings of 1 and 2 bhk terrace flats:
1 bhk terrace flat - Rs. 12.60 lakhs
2 bhk terrace flat - Rs. 16.65 lakhs
2) Ackruti Countrywoods on Katraj Kondhwa link road increases the property rates by 50 rupees!
Now, Rs. 2,300 per sq.ft.!
1 bhk terrace flat - Rs. 12.88 lakhs
2 bhk terrace flat - Rs. 17.02 lakhs
3) Developers are now reworking their strategy to target middle-class clients looking for smaller houses outside BMC limits
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