Kolte Patil

This Pune based realtor posted a really disappointing set of numbers for Q2FY15. With a 16% decline in net sales at Rs.157 crore and a whopping 107% jump in employee cost, net profit for the period slumped by a big 61% at Rs.13 crore. Its other income too dropped sharply from Rs.5 crore to Rs.2 crore. This poor performance, marred mainly by poor sales was on account of lack of any major projects, plus costs together pulled down profits. The rise in employee costs was on account of preponing Diwali bonus to Q2.

The company expects profit to pick up in second half of current fiscal. Its order backlog, based on new sales were flat at 0.6 million sq.feet. Average price was at around Rs.5800/sq.feet, up from Rs.5600 in Q1. In Q3, the company has lined up four new projects launches. One project has commenced construction in Q1 and is expected to hit the marquee in H2FY15. The good news here in this company is that the company has low debt; its finance cost at end of H1FY15 was at Rs.14 lakh.