Net profit of the company for the quarter jumped by 163% to Rs 11.08 crore on a sales of Rs 14.84 crore, a rise of 96%. Operating profit of the company stood higher by 140% at Rs 10.76 crore.

On consolidated basis the sales for the quarter and half year ended Sep ’06 stood at Rs 34.43 crore and Rs 64.73 crore respectively and the netprofit for the same period was at Rs 15.63 crore and Rs 29.40 crore respectively.

1. The company targets to close the current fiscal with a consolidated sales of 150-160 crore and a bottomline of around Rs 60 crore.
2. Higher operating margin is on account of low land acquisition cost and going forward the company expects the current margin is sustainable. This being the low cost of land for Nagpur projects and Gujarat Project.
3. The company is not doing any civil construction for its projects, but only subcontracting/outsourcing it. It’s expertise lies in financing and marketing the project. The current total staff strength is about 25-30 people and going forward it will rise to 40 to the maximum.
4. The six-mall project bagged from Nagpur Municipal Corp in JV with Unity projects is for 30-year period. The company has made an upfront payment of Rs 12 crore (it’s share) to NMC. Next due is only on 2010 and the company have to pay just Rs 13.5 crore (with JV partner the payment is Rs 27 crore) per year for 20 years starting from 2010.
5. Saleable area under development stood at 21 lakh square feet including the company’s share of 13 lakh square feet in the recently bagged 6 BOOT malls project in Nagpur. Out of these 21 lakh square feet under development barring 6 lakh square feet of BSEL Narmada Nihar in Khedia-Gujarat, are of commercial space. Currently all saleable area under development are in Nagpur and Gujarat, However this will change with the company proposing to acquire another 21 lakh saleable area largely in Thane & Navimumbai SEZ vicinity.
6. Nagpur Buty palace mall that is developed in JV with Geogia Construction is under implementation and the ground and first floor has been completed. Out of the 6 mall project bagged from NMC the work on 3 sites in the heart of the city will start by January ’07 end and development work on the rest 3 that is little away from heart of city but with in city will commence in June-July ’07.
7. The company looks around Rs 2500/sqfeet as price for the residential project Narmada Nihar that is targeted on HNIs. Similarly it looks for Rs 8-10000/ Sq feet for space in Ground & first floor in its Buty palace mall property. For floors above it, the rate expected is around Rs 6000 and given the prime locality it is achievable.
8. Nagpur commercial space rates are expected to be strong and absorb the lot of commercial space under development. The city is emerging as cargo hub of the country with the project of Mihans and that is set to trigger reality growth in the city.
9. Company’s share of investment in 6 Nagpur mall project will be around Rs 350 crore. The investment in Narmada Nihar will be Rs 60 crore, it is Rs 40 crore in Beauty Palace and Rs 100 crore in Dubai project. Current debt is around Rs 26 crore. For the new 6 Nagpur Mall project it has not finalized the funding pattern i.e. debt component.