Real estate developer Karda Constructions Limited has reported a 78 per cent growth in its net profit for the third quarter of the current financial year (FY20-21).
The company’s net profit increased to Rs 3.74 crore in Q3 from Rs. 2.1 crore in Q2. Total revenues also improved by 94 pc in Q3 over Q2 revenues, according to a press release.
The Board of Directors has also recommended Interim Dividend of Rs 0.05 per share (2.5 pc of face value of equity share) for the financial year 2020-21.
The company’s business activity falls within two business segments, viz. development of real estate property and civil contracting business. Karda has witnessed growth in both the segments in Q3 after a flat growth in Q2 when construction activities across the nation had completely come to a standstill due to the lockdown, said the release.
While its revenues from the real estate segment grew by 25.6 pc to Rs 21.83 crore in Q3 from Rs 17.38 Q2, its civil contracting business witnessed a phenomenal growth of 516 pc to touch Rs 17.57 crore in the third quarter from Rs 2.85 crore in the second quarter.
Naresh Karda, Promoter, Chairman & Managing Director of Karda Constructions, said, “The entire real estate sector had been impacted by the nationwide lockdown imposed on March 23, 2020 to contain the spread of COVID-19. Karda had resumed its operations in a phased manner in line with Government directives with requisite precautions. While the Government’s measures from time to time to inject liquidity in the sector, keep the interest rates in check and provide rebates and sops have contributed to the recovery of the real estate sector, the timely interventions by Karda ensured a steady pick up in enquiry and sales, which had a direct and positive impact on both the topline and bottomline of the company in Q3.”