Business

StatsGuru: Taking stock of the real estate sector

As the Centre moves to create a regulator for the real estate market, how is the sector doing?

As Table 1 shows, it has solidly underperformed the Sensex in the past 2 years.

Some individual companies, such as NCC, have done well, as Table 2 shows; but others, like Unitech, continue to lose value. This is not surprising.

As Table 3 shows, profit growth among the majors has been variable, but often negative.

Nor has sales growth been robust, especially for DLF, as Table 4 shows. This is in spite of the fact that house costs have not notably increased of late, according to Table 5.

Meanwhile, as Table 6 reveals, debt growth continues to be a problem for many companies

Table 7 shows how indebted companies like DLF are. Still, interest cost growth seems under control now, according to Table 8.