Omaxe Q2 net up 63% at Rs 37 cr

NEW DELHI: Realty firm Omaxe Ltd on Wednesday reported a 63 per cent jump in net profit to Rs 37 crore for the second quarter and said it may raise up to 400 crore through private placement of shares with institutional investors.

The company had posted a net profit of Rs 23 crore for the July-September quarter of the previous fiscal.

Net sales of the company rose by 58 per cent to Rs 354 crore during the second quarter of FY'11 from Rs 224 crore in the corresponding quarter last fiscal.

"We may go for Qualified Institutional Placement (QIP) in January. We have the enabling resolution to raise up to 1,000 crore, but we are planning to raise only up to Rs 400 crore," Omaxe Ltd Chairman and Managing Director Rohtas Goel told reporters here.

The funds raised through the QIP will be used to partly retire the company's debt, which currently stands at Rs 1,640 crore. Goel noted, however, that the company is not desperate to raise funds, as its internal accruals are healthy.

Omaxe has to repay Rs 370 crore to banks by the end of this fiscal towards repayment of outstanding loans. The company currently has 163 million sq ft of area under development, out of which 112 million sq ft will be developed on a fast track basis, he said.

Omaxe will launch a 2,500-acre hi-tech township in Lucknow early next year, Goel added.