Performance for the quarter ended June 2010

The consolidated net sales growth of the company during the quarter ended June 2010 was flat at Rs 103.42 crore as compared to the corresponding quarter of the previous year. This was primarily due to the disappointing numbers by the real estate business of the company, while the ceramic business also was disappointing. Significantly higher cost of sales resulted in the OPM significantly falling to 55% during the quarter ended June 2010 as compared to 72.4% during Q1 FY 2010. During the quarter, majority of company's revenue came in from a new residential project Kapashera, which negatively impacted operating profit margins. Historically, the company's revenue has been driven by land/floor space index (FSI) sale and rental income, where operating margins are huge in the 85-95% range.

Significantly dented OPM resulted in the absolute operating profit falling by 25% to Rs 56.90 crore while the other income also fell 39% to Rs 9.39 crore. The PBT before EO fell 30% to Rs 61.23 crore after effecting Rs 1.48 crore interest cost and a positive provisioning of depreciation allowance. The company earned an EO income of Rs 1 lakh crore during the quarter ended March 2010 as compared to EO expense of Rs 1.11 crore during the previous fiscal. Thus the PBT after EO fell 30% to Rs 61.24 crore. After providing for tax expenses which was higher at 25%, the consolidated net profit of the company fell to Rs 45.85 crore during Q1 FY 2011 as compared to Rs 68.93 crore during Q1 FY 2010.

Performance for the year ended March 2010-

The performance during the fiscal ended March 2010 however was impressive. Consolidated top-line rose 24% to Rs 311.05 crore during FY 2010 as compared to FY 2009. The OPM deteriorated 500 bps to 83.1% due to higher cost of sales as a result the absolute operating profit rose 17% to Rs 258.49 crore. The other income fell 24% to Rs 53.46 crore. The PBT before EO rose just 5% to Rs 296.38 crore as the interest expenses and the depreciation allowance rose 941% and 24% during the fiscal under review. The company incurred an EO expense of Rs 8 lakh during the year as compared to EO expense of Rs 1.29 crore during the previous fiscal. Thus the PBT after EO rose 6% to Rs 296.30 crore. After providing for tax expenses which was significantly lower at 20% during the year ended March 2010 as compared to 26% during FY 2009, the net profit of the company rose 15% to Rs 238.19 crore.

The funds that the company raised through issue of Global Depository Receipts (GDR), have been and are being deployed, in company's ongoing projects relating to the construction of IT Parks, and projects relating to hospitality sector and surplus funds pending utilization have been placed as FDR's with banks.

The promoters currently hold around 61.35% of the total issued capital of the company.

The stock is currently trading at Rs 115.70 on the BSE.