On December 6, world’s leading provider of global business information, knowledge and insight, Dun & Bradstreet released its publication on ‘India’s Leading Real Estate Companies 2010’. The publication highlights the performance of the Indian real estate sector over the past few years, the current trends and challenges in the industry, and the road ahead. It also included detailed analysis about the financial performance of 30 listed Indian real estate companies.
The publication profiles 68 real estate companies in India and provides information on their areas of operations, geographical reach, key projects and contact information amongst others. Companies with total income of more than or equal to 750 millions in Fiscal Year 2010 were selected. The financial analysis in the publication consists of 30 real estate companies for which financial information for the past five years is available, which were further categorized into large, medium and small-size based on total income.
According to, Kaushal Sampat, President & CEO – India, Dun & Bradstreet, the real estate industry has shown positive signs of recovery in FY10-11 in property demand. The studies revealed that many real estate companies undertook several debt and capital restructuring measures owing to an increased debt burden in FY09. As a result of these capital restructuring measures, the overall interest expenses of the real estate companies declined by 10% in FY10 as compared to FY09.
The publication reports that, in FY09, real estate companies faced 38% decline in sales, however, in FY10 sales grew by 4%. Whereas, the mid-size real estate companies reported better recovery in sales with growth of 16% in FY10 as compared to the large companies where recorded sales growth was only 2 % during this period.
As expected, a sharp decline of 26% in net profit was recorded in FY10. Here too, the mid-size players performed better, recording net profit growth of 7.3%.
Certainly, managing interest expenses has become a trend within last couple of years in the reality sector.
