HDFC NET RISES 22 PERCENT ON ROBUST HOUSING LOAN GROWTH, COST CUTS
Ravi Krishnan, Mumbai
The Economic Times
India’s oldest mortgage lender Housing Development Finance Corp. Ltd (HDFC) reported a 22 percent rise in net profit for the quarter ended September 2010 after demand for housing loans grew and the company cut costs. While demand for loans is expected to be robust for the rest of the fiscal despite rising prices, analysts said the company will not be able to sustain its spread—the difference between cost of lending and borrowing—at 2.34 percentage points. HDFC’s net profit at Rs 807.5 crore for the September quarter beat street estimates by a wide margin.
L&T: TOP SHOW, BUT SLOW GROWTH IN ORDERS A WORRY
The Economic Times
L&T surprised the street with a better-than-expected set of numbers for the September 2010 quarter. Sales and profit growth for the last quarter was in sharp contrast to its performance during the last few quarters, which was a source of worry for analysts. A slowdown in the growth of the order book, should it persist, could be a worry going forward. Yet the company appears well placed to achieve its growth targets for the year.
The strong revenue growth coupled with margins improvement was the main highlight of the company’s September 2010 quarter results. L&T’s topline for the quarter grew 17.8 percent to Rs 9,331 crore — almost twice the growth rate achieved in the 12-month period till June 2010 quarter.
DELHI METRO TO OPEN NEW LINE BY MONTH-END
The Delhi Metro railway will open its new Sarita Vihar-Badarpur line on the Central Secretariat-Badarpur section by the end of this month. The work on the section that should have been opened by now was delayed by the Commonwealth Games, said an official of the Delhi Metro Rail Corporation. The DMRC has also decided to construct foot over-bridges at Mohan Cooperative and Sarita Vihar stations for the convenience of the public. The over-bridges will take another six months to construct. The DMRC will soon invite tenders for construction work.
Real Estate Sector
BUYING A HOME? RS 1 CRORE MAY NOT BE ENOUGH
Naresh Kamath, Mumbai
If you’re looking for a house in a new project and you have less than Rs 1 crore in the bank, you might as well give up. From Worli to Jogeshwari, there has been a glut of project launches but the rates and sizes on offer ensure that all new apartments come with at least an eight-figure price tag. In Borivli, for instance, developers are quoting Rs 10,000 a sq ft and Rs 7,500 to Rs 8,000 a sq ft in Mulund. Most flats measure 1,000 sq ft or more. So, a 2BHK flat can easily set you back by Rs 1.5 crore, no matter where it is located.
OFFERS RAIN AS BUILDERS TRY TO MOP UP DEMAND
Nauzer K Bharucha, Mumbai
The Times of India
The property market, which is once again on fire, is being driven mainly by investors, raising fears within the industry that a meltdown may be just round the corner. The market is booming, but many are now asking how long will it be able to sustain the rates which have shot up by 60 percent to 100 percent since 2009.
As builders launch a slew of high-end residential projects with some offering enticing payment schemes to buyers, experts warned that it is more a sign of weakness to mop up demand, tie down purchasers and make it difficult for them to exit in case prices fall.
MASSIVE INVESTMENT REQUIRED IN INFRASTRUCTURE PROJECTS
The Hindu Business Line
Though India has successfully weathered the global economic crisis with a stimulus package and register a growth rate of 8.7 percent in the quarter for 2010-11, to sustain and match the growth of China, the country needs to massively invest in infrastructure development that requires an investment in the order of Rs 41 lakh crore, during the 12th plan period, said S.S. Palanimanickam, Union Minister of State for Finance, here recently.
Delivering the keynote address at the 86th anniversary celebrations of Tamil Nadu Chamber of Commerce and Industry, he said, “We are confident of raising the resources.” The revenue from both the direct and indirect taxes are rising compared to the year before and the foreign exchange reserve position is at $283 billion.