Omaxe Posts 37 Per Cent Decline in Q1 Profit

New Delhi: Realty firm Omaxe on Friday reported a 37 per cent fall in consolidated net profit at Rs 12.03 crore for the quarter ended June 30 due to lower sales.

Net profit stood at Rs 19.03 crore in the year-ago period, Omaxe said in a statement.

Consolidated income from operations declined 18 per cent to Rs 330.80 crore during the first quarter of this fiscal year compared to Rs 401.66 crore in the corresponding period of last fiscal year.

"The general elections euphoria and change in guard at the Centre saw postponement of investment and purchase cycle during the quarter," Omaxe CMD Rohtas Goel said.

The company sold 0.62 million square feet of space during the quarter amounting to Rs 200 crores. Major contributors were residential spaces in Faridabad, Vrindavan, Bahadurgarh, Ludhiana and commercial spaces in Greater Noida and New Chandigarh.

Omaxe during the quarter delivered about 1 million sq ft of space at various projects including Bahadurgarh, Jaipur, New Chandigarh and Faridabad.

The government's thrust on creating smart cities augurs well for the company, Mr Goel said, adding that Omaxe expects to derive robust sales from tier II and III cities, where it hasa vast presence in the years to come.

"Our focus on expanding existing projects and bringing in more options of residential and commercial continues unabated," he said.

Omaxe has presence in 30 cities across 9 states. It has 42 ongoing real estate projects - 14 group housing, 18 townships and 10 commercial.