Omaxe posts 100 percent increase in net profit

Omaxe posts 100 percent increase in net profit

Tuesday, 27 May 2008, 13:24 Hrs
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New Delhi: Realty firm Omaxe has reported a consolidated net profit of 4.94 billion for the year ended March 31, 2008, an increase of 102.85 percent from the last financial year, the company announced Monday.

The company had recorded a net profit 2.43 billion in the previous fiscal, Omaxe said in a statement.

The consolidated revenue rose by 60.26 percent at 23.07 billion in 2007-08 following steady demand in the property market, the company said.

The company also announced a dividend of 25 percent on equity shares for the financial year.

Rohtash Goel, chairman of Omaxe, said: "About 85 percent of the total profit has been from the residential projects with luxury houses giving the maximum profit margins, followed by the commercial segment".

"However the segment that has suffered most has been middle housing segment, which has seen a considerable dip in the number of buyers," Goel added.

"The increase in steel and cement prices has considerably affected the projects raising the construction cost by 200 per square feet. But controlling it (price rise) is beyond our limits so we are using designs that save input cost."

The company plans to consolidate profits by 40 percent in the next financial year.
Source: IANS
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