TDR prices almost halved in Mumbai: HDIL

Housing Development and Infrastructure (HDIL) has announced its first quarter numbers. It has posted net profit of Rs 317.9 crore for quarter ended June 2008 as against Rs 202.7 crore in same period of last year.

Net sales increased at Rs 570 crore from Rs 443 crore YoY.

Sarang Wadhawan, MD, HDIL said the land prices are still holding on in suburban Mumbai. He expects transfer of development rights, or TDR, prices to hold at current levels. 

HDIL has acquired 2,300 acres of land for their Vasai project.

Excerpts from CNBC-TV18’s exclusive interview with Sarang Wadhawan:

Q: It is actually a good set of numbers. Sales are up 28% and expenditure is down 50%. There is a sharp improvement in margins from 53 to 81%. How much of this can we assume for the next 9 months? 

A: Real estate is quite a lumpy business. From the way things are progressing in the market, we expect to hold onto these kind of results. But you can never say what kind of turn the economy may take. So, let us hope for the best.

Q: What are you expecting by way of sales growth and margins and price realisations?

A: We have already done Rs 588 crore for Q1  2008- 09. Going by that standard, we hope to hold on to these kinds of earnings. But even last year, we had a surprise in the last quarter. So, let’s see how we will go ahead.